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Case Study on Zappos.

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Course Name: Management and Organizational behavior (MOB)
Course Code: F506

Prepared For:
Khaleda Khatun
Professor
Department of Finance
Faculty of Business Studies
University of Dhaka

Prepared By:
Ahmed Yousuf [Id # 33035]

Date of Submission: 22 September 2016


Question #1: Find a list of all ten of Zappos corporate values. Pick two of the values and
explain how you think those values would influence the way employees do their work.

Answer:

Zappos corporate values are as follows:-

1. Deliver WOW Through Service


2. Embrace and Drive Change
3. Create Fun and A Little Weirdness
4. Be Adventurous, Creative, and Open-Minded
5. Pursue Growth and Learning
6. Build Open and Honest Relationships With Communication
7. Build a Positive Team and Family Spirit
8. Do More With Less
9. Be Passionate and Determined
10. Be Humble

Our chosen corporate values of Zappos: We have chosen two (2) corporate values of
Zappos among the ten (10) which are as follows:-

1. Deliver WOW Through Service


2. Build Open and Honest Relationships With Communication

From the zappos.com site “To Wow, you must differentiate yourself, which means doing
something a little unconventional and innovative. You must do something that’s above and
beyond what’s expected. And whatever you do must have an emotional impact on the
receiver. ”

Zappos is always tried to deliver unique and unconventional services to its customers
through their employees. Deliver WOW through service would positively affect the
employees to serve more better way and plan more innovative ways to gain customer
satisfaction. So, this would lead higher customer satisfaction, increased organizational
performance and greater business success for the Zappos. In this way, employees get
motivated and influenced for doing better work and want to be more success for the
organization like Zappos.

Organizational culture is more than a list of written values. In 2000 when Tony Hsieh joins as
a CEO of Zappos, after that he invited 300 employees of Zappos to list the core values of the
company. So, this is a great example that the company sets their own value by
communicating & based on the answer of their all employees. Zappos also performs
employee happiness surveys regularly to find out the company’s pulse or health. Employee
of Zappos answers different kind of questions like whether they believe company has a
higher purpose than profits, meaning of their own role, control of their carrier path,
consider the relationship with the co-worker and last but not least are they really happy
with their jobs. Zappos took necessary action depends on the survey result. So, this kind of
activity & communication definitely influences the employee of the company because they
assume that they are in the controlling power of the company.

Question # 2: Using the list of corporate values and Exihibit 3-5, describe Zappos
organization culture. In which areas would you say that Zappos culture is very high (or
typical)? Explain.

Answer:

Zappos organizational culture is mixed up of team orientation & people oriented. Team
orientation is the degree to which work is organized around teams rather than individuals.
On the other hand people oriented is the degree to which management decisions taking to
account the effects on people in the organization. These are obvious by looking at the CEO’s
family values and the humor he brings to the company.

In case of Zappos culture is higher on people and team orientation. As Zappos is an internet
based fashion related retailer based product selling company that process millions of
customers orders from different parts of the world, Zappos needs to be more customer
oriented & focusing on their demand and choice, then provide the latest & most up to date
products and technical capabilities to their customers.
Question # 3: How did Zappo’s corporate culture begin? How is Zappo’s corporate culture
maintained?

Answer:

In corporate world of business, most corporate cultures in the beginning are strongly
influenced by the founder. In the case of Zappo, Tony Hseih, the CEO of the company was a
strong influence factor. Hired one year after the company began online operations. Hsieh
had a strong opinion of what he wanted the company to be and instituted policies and
procedures early on to facilitate his vision.

Hsieh established the core value of the company through the 300 employees of the Zappos
and maintains its culture lies in the development and use of its core values. These values are
clearly listed on the website and integrated throughout the organization. According to the
case, “The culture has to be lived”. And Zappos does this by maintaining a "complex web of
human interactions.” This is done by the interaction of the employees & customer social
through media and a monthly happiness survey to understand internal situation of the
employee & overall the pulse of the company. The company also maintains & continue to
developed its culture by creating and maintaining rituals, ceremonies and stories that
exemplify the company’s values.

Question # 4: The right culture with the right values will always produce the best
organizational performance. Do you agree or disagree with this statement? Why?

Answer:

We disagree with this statement. Because, performance of an individual employee largely


affects on overall organizational performance regardless of the environment and corporate
culture of the organization.

Organization may choose and define its corporate values and culture. However, it should
keep in mind that appropriateness or suitability of a corporate culture largely depends on its
strengths and ability to fit in the organization and its environment as well.
Some business enterprises may try to copy the corporate culture of Zappos and may fail
because they did not recognize that the corporate culture of Zappos is unique to the setting
and history of the place where it was formed.

Therefore, we can say that the right culture with the right values, right people and right
environment will always produce the best organizational performance.