Calm Seas: Examining the Organizational Culture at Trader Joe s 1

Calm Seas: Examining the Organizational Culture at Trader Joes

October 11, 2011

Communication 660

Kenyon Stanley

Calm Seas: Examining the Organizational Culture at Trader Joe s 2 Let me just come right out and say it. I do not like to go grocery shopping. If one were ever to see me in a grocery store, I am only in the store to buy a few items (usually beer, snacks and whatever else my wife asks me to pick up). I get frustrated with long lines, crowded aisles and ever present humming noises from the fluorescent lights. I am loyal to Harris Teeter. However, the only reason why I shop there is that the store is less than a mile from my home. Convenience is the only reason why I even have a VIC card. Until recently, I thought that all grocery stores were the same. Therefore, when I found out that our communication culture class was going to evaluate the organizational culture at Trader Joes grocery store, I was not excited at all. I had never been to a Trader Joes and my preconceived notion was that I would be walking into just another grocery store. Boy was I wrong. Immediately upon entering Trader Joes, I realized that this establishment was different than any other grocery store that I had been in. There were no announcements over the intercom and employees were dressed in Hawaiian shirts. Guided by Mark, the store manager (known as Captain in Trader Joes jargon), our class was given the (corporate) scoop behind Trader Joes design and business philosophy. It was obvious by the employees dress, titles, signage and overall environment that the company operates using a nautical theme. The nautical theme is reified in other ways as well. Employees who are in training train in areas of the store and are given passports. Once an employee completes her/his training in an area, him/her receives a stamp on the passport. Trader Joes themed indoctrination system encourages employees to buy in to the organizational metaphor and increases the product knowledge of the overall staff in ways that traditional grocery stores do not. Furthermore, obtaining buy in

Calm Seas: Examining the Organizational Culture at Trader Joe s 3 strengthens the overall culture of the company and creates a platform where informal subcultures can form between employees that organically reinforce the dominant culture in ways that structural systems cannot. For example, Captain Mark mentioned all of the different ways that Trader Joes involves employees in creating the displays and placing artifacts around the store. Although the artifacts do have to support the nautical theme, employees are given the choice of where the artifacts go and what the artifacts are. One example is the artwork. Captain Mark explained that one of his part time employees designs art on her spare time and is very talented. Therefore on her spare time, she is creating items that reinforce Trader Joes organizational identity. Furthermore, by empowering the employees with decision making that wouldnt occur in a traditional grocery store, employees feel more involved and connected with the organization and each other. Considering that employees are empowered and made to feel valued, the culture between employee and the organization definitely appears to be strong. According to Driskill, G.W. & A.L. Brenton (2011), organizations with strong cultures contain surface cultural elements that are tied into employee beliefs and assumptions (p. 43). Trader Joes employees truly believe that they are involved. Another example of employee involvement at Trader Joes is evident in one of the ways they feature products for sale. Trader Joes have various displays strategically located throughout the store that feature crew picks. Crew picks are items that any employee thinks others will enjoy (usually because she/he enjoys the item him/herself). When Trader Joes features a crew pick item, the product is displayed separately from other items with a picture of the employee and a brief story about the employee and why she/he

Calm Seas: Examining the Organizational Culture at Trader Joe s 4 enjoys the product. The crew pick promotion reifies the strong culture by strengthening the common bonds between organization and personal identity. According to Driskill et. Al (2011), most employees can tell stories about history and heroes (p.43). Although we only talked to Captain Mark, he knew the history and stories of Trader Joes (as any manager should). Ironically, the original owner (Joe Colombe) sold the company several years ago to a German company. However, the new leadership appears to operate with a hands off philosophy. Therefore if there was/is any backlash from the employees following the transfer of power, it was not communicated to us. On the surface, it appears that Trader Joes managed to keep their organizational identity and suffered little, if any, organizational cultural change after the sale. However, additional interviews with long term current and prior employees that experienced organizational life under Colombes reign and under the current leadership may yield different results. Trader Joes relationship with its customers reveals other elements that reveal unique cultural features. First of all, while other grocery stores appear to be the same, Trader Joes prides itself on being different. Trader Joes clientele get an opportunity to engage in a shopping experience. I will not go so far to say that I would look forward to shopping at Trader Joes. However, after shopping there on Sunday, I was intrigued at the experience. The lighting was soft and pleasant Island Music took the edge off as I was waiting in line. Instead of using an intercom, Trader Joes uses a bell to communicate operational needs to their employees. One ring of the bell lets other employees know that more cashiers are needed up front. Two bells indicate that something is broken and someone is needed to clean up a mess and three bells let

Calm Seas: Examining the Organizational Culture at Trader Joe s 5 employees know that a manager is needed. The bell system effectively communicates the operational needs of the store and reifies the nautical theme of the restaurant. Although I didnt feel like I was sailing along peaceful seas, when I was shopping, I did notice that the pain of waiting in line was diminished by the unique methods Trader Joes uses to operate while customers are satisfying their shopping needs. Furthermore, as opposed to other stores, employees were everywhere. Apparently I must have looked confused. Six different employees asked me if I needed help finding something. Furthermore, when I explained to the employee what item I was searching for, the employee walked me to the product and gave me the background of the product and her/his personal opinion of the product. In fact, on one occasion, an employee asked me my preferences on spiciness and texture. Once I communicated my preference, the employee recommended a product that was actually cheaper than the original item I had in my hand. As a customer, I felt listened to and valued. Thus reinforcing Captain Marks assertion that Trader Joes values their customers. From my limited, one time shopping experience, I believe that Trader Joes does value their customers. However, if I were to do an in-depth cultural analysis, I would investigate negative opinions of Trader Joes and incorporate those experiences with my interview questions to staff and management. Another cultural difference between Trader Joes and other grocery stores is Trader Joes relationship with its vendors. As I proceeded through the tour and when I shopped, I noticed that there were very few name brands on the shelves. Apparently, Trader Joes has an arrangement with their vendors that dictates that items sold on Trader Joes shelves are branded with Trader Joes logos. For example the breakfast cereal Cheerios are indeed on the shelves. However, the cereal is called Trader Os and sold at

Calm Seas: Examining the Organizational Culture at Trader Joe s 6 a discounted rate. Trader Joes handles all of their own packaging and shipping so the discounted price actually fits within the profit margin guidelines of both distributor and vendor. Furthermore, customers ultimately receive the benefit of purchasing a product that is lower in price than other grocery stores. Furthermore, Trader Joes requires their vendors to meet specific ingredient and health standards if a vendor plans to stock their item in Trader Joes. Although at first, Trader Joes policies with their vendors didnt appear to be a cultural element to me. After reflecting on the images that I had of a healthy grocery store, I soon realized that Trader Joes is changing the way I view healthy shopping. For example, when I am at Harris Teeter, I notice that the organic fruits and vegetables are usually 20-30% higher than non-organic items. When I compared Trader Joes organic vegetables to Harris Teeters non-organic vegetables, I was astonished to find that Trader Joes products were cheaper. As a non-educated shopper, I always thought that healthy and organic products identified a more expensive product. Therefore Trader Joes has redefined my view of healthy shopping. Healthy, organic and local food doesnt necessarily mean that the product is more expensive. In conclusion, its apparent that Trader Joes is different than other grocery stores. I enjoyed visiting the store and speaking to Mark. However, Mark was very well schooled in communicating the Trader Joes message. While on the surface, Marks communication indicates that Trader Joes does indeed have a strong organizational culture, Mark is a manager and further interviews would be required in order to conduct a complete comprehensive cultural analysis. Interviewing additional current and former employees could possibly reveal reoccurring themes and metaphors that would either reinforce or contradict the message that Mark communicated to us during the visit.

Calm Seas: Examining the Organizational Culture at Trader Joe s 7 Furthermore, I only shopped at Trader Joes once. While the nostalgia of the different shopping experience intrigued me, I cant honestly say that after a few visits, whether or not I would be equally annoyed with the shopping experience at Trader Joes as I am at traditional grocery stores. When would the nostalgia wear off? Lastly, we heard the relational aspects between Trader Joes and their vendors through the lens of a Trader Joes spokesperson. I would be interested in hearing the opinions of current and former vendors. Maybe further analysis would reinforce what Mark communicated to us, maybe not. In any case, Trader Joes is different and they are an organization that is worth analyzing further.

Calm Seas: Examining the Organizational Culture at Trader Joe s 8 References Driskill, G.W. & Brenton, A.L. (2011). Organizational Culture in Action: A Cultural Analysis Workbook (2nd edition). Thousand Oaks: Sage Publications.