Nordstrom's Creativity

How does the firm use creativity?
Like many large retailers, Nordstrom has to keep relevant and continue to reinvent itself to keep the company relevant in these ever changing times. Nordstrom uses creativity and marketing as a strategy to combat the evolving marketplace and to encourage customer loyalty. With the overnight emergence of online shopping, retailers took a huge hit in profits. With facing such adversity, a company’s creativity must be sparked in order to ensure the survival of the company. Nordstrom’s reinvented themselves after the corporation purchased Hautelook in 2011. This was the perfect move from a creative marketing standpoint because a majority of companies are being forced to make themselves known in the digital world
and Hautelook is exclusively online for the customers that enjoy online shopping. Hautelook has become the testing ground for Nordstrom to roll out new merchandise. Instead of ordering a large amount of inventory to be placed in stores worldwide, they can purchase a smaller amount to sell on Hautelook and monitor how much is being sold. The firm's creativity in deciding to purchase Hautelook resulted in large profit increases and the average Nordstrom client being expanded to anyone who enjoys online shopping which is a huge increase in customers for Nordstrom’s. The largest growing sector of customers is actually men, which Nordstrom itself probably would not attract if it weren’t for Hautelook. The innovation that the company has demonstrated proved to be very beneficial, increasing the company’s sales over 47%. Nordstrom also offers a service called Trunk Club for Women which offers women a personalized shopping and styling experience. Nordstrom added a website and a styling service to their portfolio instead of just remaining the classic department store like others have, but the creativity and innovation of the firm have redefined the brand and solidified its place in retail for the future.

What is the structure of the firm? Nordstrom takes great pride in the decentralized structure of their family-run retail organization. Their organizational structure is described by their chairman as an inverted pyramid. With customers being at the top of the pyramid as the most important part, then following comes the salespeople and support staff. In the same middle section, the department managers, store managers, buyers, merchandise managers, regional managers, and general managers are incorporated, after them at the bottom come the members of the board of directors. They promote the leaders of the company from within in order to maintain their people-oriented and customer based environment. Their organization has a chairman and six members of the Seattle-based retailer's fourth generation who share co-leadership positions. Nordstrom is a specialty department store chain with nearly 70 stores and more than 20 outlet stores in 22 states, with approximately 20 more stores that were scheduled to open through the 2000’s. Based on the decentralization structure of the organization, every Nordstrom retail store is different based on their location to make them more appealing to the customer. This also allows department managers and buyers to make particular decisions for their own stores based on their location and customer base.
How do they motivate people at work (rewards system)? Motivation is one of the greatest things a large retail corporation like Nordstrom has to focus on because they have such a big workforce with many employees working daily with customers.
If your employees are not motivated to perform their work to the best of their ability they can transfer this type of energy and attitude to other employees. One great example of the motivation that Nordstrom employees carry throughout their job role and shows how above and beyond they go to perform ‘heroics’ is one of a sales person. " There is the story of a customer who fell in love with a pair of burgundy, pleated Donna Karan slacks that had just gone on sale at the Nordstrom store in downtown Seattle. But the store was out of her size, and the sales associate was unable to track down a pair at the five other Nordstrom stores in the Seattle area...the associate secured some petty cash from her department manager, marched across the street to the Frederick & Nelson department store, where she bought the slacks (at full price) and then sold them to the customer for the marked-down Nordstrom price. Obviously, Nordstrom didn't make money on that sale, but it was an investment in promoting the loyalty of an appreciative customer." This shows the customer service that is embedded in the Nordstrom mystique. Nordstrom motivates their employees with the perks and programs they provide to them. The Nordstrom employees who are eligible have an opportunity to purchase Nordstrom stock at a 10% discount off the closing market price on the date of purchase, subject to Plan limits. They receive a twenty percent discount starting since their first day employed by Nordstrom, but this discount is also or their dependents. Employees are also eligible to receive matching contributions to their 401k after being employed for a year. They also have a employee charitable match for employees who have been employed for a year. This program matches up to $5,000 donations to nonprofits per employee, per
year. Other little perks employees get are free snacks and beverages during the day, fitness classes, massage therapy, discount ticket sales, dry cleaning, banking and even car washes. They also get free weight watchers which shows how the company cares for their employee’s health. This is besides their health insurance of course and their onsite health services like flu shots, cholesterol tests, blood pressure and breast cancer screenings.
How do people work in teams?
Teamwork is a very intricate science that Nordstrom has mastered in order to work effectively. Teamwork is not only reserved for the lower caliber members of the enterprise but also for the upper managers and even the board of directors. The upper managers and board members of Nordstrom are all held to a high standard of teamwork just as sales associates. Managers have honest and open communication, common access to information, trust, support of others decisions and a commitment to goals. With these shared values, a climate of collaboration is created and carried throughout the company. Sales associates are very collaborative while on the sales floor to ensure the customer has the best experience possible while shopping at Nordstrom. Associates are placed in different rooms and departments of the store to make sure that every section of the store is covered and monitored. Sales associates also work together to determine the way that the merchandise is rolled out and the way that it is displayed in the store. A few members get together before the store is opened and decide what goes on the mannequins which is a very important process because the items that are displayed in mannequins sell the fastest and the most. Building teams amongst coworkers is also very important to teamwork. When new employees are hired, they are welcomed with a small get together made up of previously hired employees so that new hires feel welcomed and are encouraged to form bonds with the team members. The group norms that Nordstrom has are openness and communication, support and trust. Nordstrom expects for all employees to live up to this standard, regardless of position, in order to create a cooperative and efficient work environment.