Trader Joes

Trader Joe’s Keeps Things Fresh

Module 1.5 Case Study

Brad Smialek

Embry-Riddle Aeronautical University

Trader Joe’s

Trader Joe’s management practices seem to satisfy most of the concerns that contribute to behavior within an organization. Employees want good pay, good benefits, and a comfortable work environment with room to advance. The case study makes a point that Trader Joe’s employees earn 20 percent more compared to other retailers, and start with great benefit packages. Employees can take advantage of valuable in-house training programs that aims towards educating its employees from within and nurturing loyalty. With an emphasis on friendliness, and an environment that foster’s a team mentality, I would conclude from this case study that Trader Joe’s understands what its employees desire to create the most productive outcome for its employees and customers’ experience over the long term. I can see this approach conflicting with larger economic issues, as far as being able to sustain the benefits that employees are currently receiving and remaining profitable.

Trader Joe’s had a plan and vision in mind that was necessary to compete in the retail market. One of the goals was to differentiate itself from the rest of the competition by creating a unique environment for the customer and offering specialty foods and natural foods from all over the world at below average prices. Trader Joe’s set out doing this by restricting its stock and limiting the floor space in order to cut costs and expenses; enabling lower prices and excellent employee benefits. Strategic placing of Trader Joe’s stores has allowed savings in real estate costs, and competitive product cycling keeps fresh products on the shelf. Trader Joe’s prides itself on its customer relationship, and keeps an open line of communication to respond to its customer’s concerns. In return customers continue to talk about Traders Joe’s which results in lower advertising costs and product...