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Category: Business and Industry

Date Submitted: 09/28/2012 08:14 PM

Report This Essay (Analysis)

When reviewing the reading for this week, one thing stood out the most for me, Zappos had developed an organizational culture that was innovative and was based on building great customer service. The article pointed out the 3 Cs in regards to how Zappos is defined:

1. Company Culture

2. Customer Service

3. Clothing

The leadership at Zappos seemed to understand that customer service was everything. If the customer is happy, then the chances of having a repeat customer would greatly increase. Zappos had accomplished something that even brick and mortar businesses have not; Zappos instituted the aspect of fun in to its corporate culture. Zappos’ leadership believed that if they were to get the culture right, then everything else like great customer service or building a lasting brand – will happen naturally. This belief afforded the company a competitive advantage over their competition. Hsieh knew that everything they have done at Zappos, their brand relationships, website, and policies could be copied, but not their special culture.

One day while CEO Tony Hsieh was attending a conference, with Starbucks chairman / CEO Howard Shultz as the speaker. He noticed that someone in the audience has asked him a question as to why everyone at Starbucks smiled? Mr. Shultz replied “We only hire people who smile”. But, he continued to speak about their corporate philosophy, “you cannot have happy customers without having happy employees, and you cannot have happy employees without having a company where people are inspired by the culture”. I believe that Mr. Shultz realized that not only did his employees want a job they would enjoy, but more importantly, they wanted a workplace where they would enjoy going to work on a daily basis. Mr. Shultz was at the forefront of an idea that would catch on and inspire other companies to follow and Zappos did exactly that.

The company’s Organizational design, was set up as a formal and...