Case Study: Zappos
Case Study 1 Zappos
Luigi Vittatoe
Florida Institute of Technology
Part One
Does the Zappos organizational culture have a positive impact on employees while focusing on increasing profitability? I would have to begin with the article we read in the text. In this article the HR director discusses how happy the employees are. Zappos pays 100 percent of their employee’s benefits. This makes the employee feel like they are being well taken care of, and part of an organization that has potential. The company even goes as far as offering people they already trained $3,000 to walk away if they aren’t happy. It seems like a better incentive to just stay with the company, and advance to a management position. Call centers are always
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Tony worked with a software company called Oracle. Tony was more than pleased with the training program, the salary, but not the actual job. The abstract also explains how modest Tony was by not wanting more than he needed in life. This goes with being humble within Zappos core values. As Tony’s company, LinkExchange, grew larger he felt more disconnected from the employees and how they perceived the company’s goals. He didn’t feel as if everyone was one the same page. Tony wanted Zappos corporate ethos based on brand, culture, and pipeline. A brand is what customers pay attention to. Having a great brand with a great reputation was important for Tony. The ethos of culture was also very important to Tony, and this is where he created the company’s core values. Pipeline simply means that employees can advance their career while with the company and eventually be promoted to a management position. By Tony having these key ethos for his company he was sure people would stay with them for the long run, and accept the company’s values and goals. There is no denying that the customer satisfaction is responsible for the success of Zappos today. Many of their sales are made up of repeat buyers. However, the lengths that they go to in providing that excellent customer service means that they are not nearly as profitable as they could be. The core values of Zappos tend to indicate that keeping customers happy takes priority over turning a huge profit, but eventually Zappos is going to have to find a way to increase profits in other
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