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Zappo's Holocracy

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Zappo's Holocracy
Zappos to ZAPP Away the Fat to Become Leaner and Meaner
Introduction
Zappos.com, Inc. (Zappos) is generally known for selling shoes and accessories; however it has now grown into much more than that. Established in 1999 and acquired by Amazon in 2009, Zappos has grown to become the world’s largest online shoe store. This company is not only known for its wide variety of shoes and accessories, but also for its unparalleled return policy. Zappos actually encourages its customers to buy shoes in multiple sizes and just send back the ones that don’t fit. This company prides itself on being a service industry, first and foremost, rather than just a mere retailer. Furthermore, this particular business can be described as timeless, because ‘shoe purchasing’ will essentially always be in demand. Zappos focuses on the customer experience, not just creating a better product. Zappos also has a unique culture, where staff members can be seen in comfortable clothes and tennis shoes, possibly mid-parade around the office premises, but rarely will there be someone in formal wear. Even so, Zappos aspires to always deliver superior customer service, which begins with employees, and the company’s CEO, Tony Hsieh, has always been extremely enthusiastic and passionate about this concept, and has worked tirelessly to bring this dream to fruition (Zappos Insights, 2014).
In addition, Zappos has been rated one of the top companies to work for in America, because of its exemplary customer service policies and the company’s dedication to its employees (McDonald, 2011). Zappos has a unique selling platform that has taken online retail by storm, and has gone above and beyond the call of duty with respect to its management approaches. Toward the end of 2013, the company announced an effort to rise to the next level, with its intentions to overhaul its previous management structure. Zappos will now practice something called Holacracy in an effort to make employees more



References: Anaza, N.A. (2014). Personality antecedents of customer citizenship behaviors in online shopping situations. Psychology & Marketing 31(4): 251-263. Chafkin, M. (2014, February 7). The Zappos way of managing. Retrieved from http://www.inc.com/magazine/20090501/the-zappos-way-of-managing.html. Davis, A., Kopelman, R., & Prottas, D Fortune Magazine (2012, February 12). 100 best companies to work for. Retrieved from http://money.cnn.com/magazines/fortune/best-companies/2012/full_list/ Gardiner G.S., & Pohlman, R.A Groth, A. (2013, December 30). Zappos is going holacratic: No job titles, no managers, no hierarchy. Quartz. Retrieved January 30, 2014, from http://qz.com/161210/zappos-is-going-holacratic-no-job-titles-no-managers-no-hierarchy/ Hoovers Hsieh, T. (2009, July 22). CEO letter. Retrieved from Zappos: http://blogs.zappos.com/ceoletter Jones, G Kopelman, R. E., et al. (2012). "Interpreting the success of Zappos.com, Four Seasons, and Nordstrom: Customer centricity is but one-third of the job." Global Business and Organizational Excellence 31(6): 63-78. Kreamer, Z. (2013, February 23). The future of retail. PSFK. Retrieved from http://www.psfk.com/2013/02/zappos-social-shopping-site.html#!uEL3G Likert, R Likert, R. (1967). The Human Organization. New York: McGraw-Hill. McDonald, S McNeaI, M. (2013). A case for culture. Marketing Insights, 25(3), 44-45. Mindtools (2014). Theory x and theory y understanding team member motivation. Retrieved from http://www.mindtools.com/pages/article/newLDR_74.htm O 'Leary, L Pei, Z., et al. (2014). E-tailer׳s return policy, consumer׳s perception of return policy fairness and purchase intention. Journal of Retailing and Consumer Services 21(3), 249-257. Preziosi, R.C. (1997). The impact of value-based leadership on organizational productivity, Productivity and Quality Management Frontiers, Ed. C. G. Thor, J. A. Edosomwan, R. Poupart, and D. J. Sumanth, Vol 6, 12-18. Pohlman, R.A. (1997). Value Driven Management, Faculty Working Paper 97-01, School of Business and Entrepreneurship, Nova Southeastern University. Richards, D. (2010, February 7). At Zappos, culture pays. Retrieved from http://www.strategy-business.com/article/10311?pg=0. Richards, D. (2010, August 24). Organizations and people. Strategy and Business. Retrieved from http://www.strategy-business.com/article/10311?pg=all Robertson, B Rose, S. (2008, February, 14). If the shoe fits; A look at Zappos and the technology they use. Retrieved from http://www.fastcompany.com/957965/if-shoe-fits-look-zapposcom-and-technology-they-use Schoultz, M Wasserman, T. (2013). Zappos Facebook activity over 2 months drives 85,000 website visits. Retrieved March 9, 2014, from http://mashable.com/2013/02/06/zappos-facebook-results/ Weinstein, A Zappos Insights (2014, March 11). Zappos Insights. Retrieved from http://www.zapposinsights.com/

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