Reference no: EM132208648
Organizational Behavior
Case : Trader Joe's Keep Things Fresh
Trader Joe's Trader Joe’s is a prime example of effective management. In an industry dominated by big players They have carved out a niche for themselves Quick Facts 5500 Employees Privately owned Founded in 1958 353 Locations in 28 States What Trader Joe's Is Doing Right Planning Nothing at Trader Joe’s happens by chance. Everything from the foods they stock to the way their employees dress was meticulously planned by the organizations founders. They created a new style of grocery store that could offer lower prices of new and exotic food items. They do this by not overstocking their inventory; they keep only what sells on the shelves or they will only carry one brand of a certain item. By organzing their business this way they have gained much customer loyalty. Their name spread through word of mouth which lessesned the need for advertising, they passed those savings along to their customers, lowering prices again. Strong Employees Strong Managers Trader Joe’s keeps it’s organization’s good will with the public by hiring workers who are willing to go above and beyond what is required to help shoppers. They hire these outgoing workers by offering insurance and retirement plans. They keep strong leaders within the company by only hiring managers that have worked for the organization. The Customer is Always Right Trader Joe’s thinks of themselves as a “food democracy” where the customers decide International Pressures Being an internationally owned company comes with risks. The growing demand for local foods to support American farmers could be viewed as a threat to Trader Joe’s. During the recession there has been a backlash against companies that are owned abroad. More and more customers are trying to “buy American” in an effort to revitalize the economy. Successful Managers in a Casual Environment Symbolic by their Hawaiian shirts, Trader Joes’ employees work in a very non-traditional and casual working environment. In an environment such as this is would seem very difficult to be a successful and practical manager. The company enrolls their future leaders in Trader Joe University’s training programs. They teach employees the loyalty necessary to run the stores according to company and customer expectations and teach managers to instill in their workers to be focused on the customer. Competition Trader Joes’ biggest competition is the mega grocery store, Whole Foods. Whole Foods keeps their shelves stocked with between 25,000 to 45,000 products while Trader Joes only keeps about 2,000 products. However, Trader Joes’ still made about $1,750 per square foot in 2009, more than double of what Whole Foods made. By presenting customers with fewer options, they don’t feel overwhelmed and are more likely to buy something than if they had too many options. Where Improvement is Needed The only thing that might hurt Trader Joe’s in the future is their lack of advertising. They don’t talk to reporters, widely advertise new openings, have commercials or anything similar.
Questions:
1. Describe methods used by Trader Joe's that shows they know the importance of human capital.
2. How does Trader Joe's design jobs for increased job satisfaction and higher performance?
3. In what ways does Trader Joe's demonstrate the importance of each of the four major responsibilities in the management process: Planning, organizing, leading, and controlling?