Description Patagonia, Inc. is an American clothing company that markets and sells outdoor clothing ...
Description Patagonia, Inc. is an American clothing company that markets and sells outdoor clothing. The company was founded by Yvon Chouinard in 1973 and is based in Ventura, California. If you are not familiar with this retail store, visit their website https://www.patagonia.com/home/Links to an external site. After reading case 4 on page 394, answer the following questions: 1. How do you think Patagonia executives decide on what products to offer so that the outcomes will be both business practical (think profits) and environmentally friendly (think sustainability)? Take the case of a proposed hiking boot. What criteria would you use to evaluate it as a new Patagonia product? 2. Even though he is no longer the CEO, Yvon Chouinard still exerts major influence over Patagonia’s business approach. What should he and other Patagonia executives be doing today to make sure that his ideals remain a permanent part of the company’s culture after he’s no longer active at the company? 3. Problem Solving. Picture yourself working for Patagonia. The CEO comes to you and asks for a proposal for a new-“forward looking”-sustainability agenda for the firm. The goal is to drive Patagonia’s future, not just celebrate its past. What would you include in this proposed agenda in order to really stretch the firm beyond what it is already doing, and why? 4. Further Research. Evaluate the risk that ethics might someday lose out to greed even in a company with the idealism of Patagonia. Look carefully into Patagonia’s products and practices and see if you can find any missteps where decisions put profits ahead of the company’s publicly stated environmental goals. Can you find evidence for strong governance and leadership that will protect Chouinard’s values and legacy far into the future? How about the competition? Just how does Patagonia operate today to ensure that ethics and social responsibility are not displaced as core company values? And finally, how about the competition? Is Patagonia still the best role model, or can you identify other firms that deserve to be studied as well as role models in business and society relationships? 2 attachments Slide 1 of 2 attachment_1 attachment_1 attachment_2 attachment_2 UNFORMATTED ATTACHMENT PREVIEW Case Analysis: Trader Joe’s Student Name David Nazarian College of Business and Economics, CSUN MGT 360: Management and Organizational Behavior Dr. Claudia Velasco 1 Discussion. 1. In what ways does Trader Joe’s demonstrate the importance of each responsibility in the management process—planning, organizing, leading, and controlling? Trader Joe’s is a highly desirable market that has gathered quite some aCenDon over the years. Trader Joe’s is known for their quality, not only in the products they provide but also in the way they treat their clientele (traderjodes.com, 2011). Important responsibiliDes in the management process include planning, organizing, leading, and controlling. Trader Joe’s manages to ensure these aspects are always improving, because then business will prosper subsequently. Planning is an important process to be done in management because it can allow for the best possible decision to be made. Other than the cost-saving measures they use to aCract customers Trader Joe’s also likes to plan ways to get new delicious tasDng foods on their shelves. This is a good tacDc as it will allow their customers to have di?erent opDons, though sDll limit their stock to not cause decision exhausDon. Trader Joe’s also shows great use of organizing for their business. This is seen in the way they structure inside their store, to the way they structure their management and leadership skills. One example of how Trader Joe’s is organized is how they decide what will go on their shelves. They have a process where they will ?rst search out for delicious foods around the enDre world, contact manufacturers directly, assign the products a catchy name, and maintain a small stock (traderjoes.com, 2011). This organized form of product research they use is what keeps their customers in their stores trying new delicious tasDng foods with a smile on their face. Trader Joe’s shows excepDonal skills in leadership due to the success in their business over the years and the happiness of their employees. Providing good leadership to employees will keep them happy, which in return will re?ect on their aQtude towards customers. Happy employees mean happy customers. How does Trader Joe’s managed to keep their customers happy? 2 They provide starDng bene?ts such as medical, dental, and vision insurance, company-paid reDrement, employee 10% discount, and even paid vacaDon. One other good reason Trader Joe’s has many good leaders as their company’s foundaDon is because they partake in training programs such as Trader Joe’s University. This program teachers its students how to develop brand loyalty necessary to cater to the needs of the company and customers. Lastly, Trader Joe’s shows outstanding ethic in the way they control the business. Managers also are taught at the programs how to get their part-Dme employees to deliver excellent customer-focused aQtudes that shoppers come expecDng to see. Trader Joe’s understands that it is important for employees not only to be generous and helpful, but to also have recommendaDons of their own to customers. Everyone is encouraged to try and taste di?erent products the store provides so that they can engage with shoppers more based on personal experiences. The company is also very strict when it comes to the reviews provided by their customers about their products. They will get rid of products that have risen in price or have just had bad sales to ensure that their customers can have what they love on the shelves. Discussion. 2. What lessons does the Trader Joe’s story offer to aspiring entrepreneurs who want to get off to a good start in any industry? Trader Joe’s o?ers many valuable lessons that can be extracted from their journey. Trader Joe’s has proven themselves to be successful in the ?eld of business due to their history of successful leadership allowing them to reach such a point in the industry. One lesson that can be taken away from Trader Joe’s is their determinaDon to never sacri?ce quality to their customers for their saDsfacDon. Although, other supermarkets will cut down quality to su?ce quanDty, Traders Joe’s has business values to sell items they deem worthy. 3 Another lesson that can be taken away from Trader Joe’s and their story is the importance of making the business model desirable for anyone. This can be for prospected employees that want to help join building the company, or even investors that want to help fund certain projects the company may have. Trader Joe Coulombe, founder of Trader Joe’s, sold the company to German billionaires and owners of Aldi markets (traderjoes.com, 2011). German billionaires and owners of Aldi markets saw the direcDon Trader Joe’s was heading in the industry and decided to build on its enDrety even more. Lastly, another great lesson to extract for aspiring entrepreneurs is the ability to build a team that can provide excepDonal service to customers. This involves much consideraDon during the stages of hiring and when leading the team. Trader Joe’s has some qualiDes that other big markets lack. For example, the human quality of the employees. Employees are enthusiasDc with customers and make them feel less of a burden when they are shopping for groceries. Being able to create a good environment for the place people despise to go is a trick not all can do. These lessons alone will help build an e?ecDve business in the industry as they account for the most important people in the business, the customers. Problem Solving. 3. At the age of 22 and newly graduated from college, Hazel has just accepted a job with Trader Joe’s as a shift leader. She’ll be supervising four team members who fill part-time jobs in the produce section. Given Trader Joe’s casual and nontraditional work environment, what skills will she need, what should she do, and what should she avoid doing in the first few days of work to establish herself as a successful team leader? 4 Just coming out of college, Hazel must have a good understanding of. managing and leadership. Her posiDon includes a $70,000+ yearly (including both salary and cash bonus). Some interpersonal skills Hazel should have while supervising the four team members are authority, friendliness, and leadership. Authority in the sense of her team members knowing that when she makes a decision, to trust her because it’s in her best interest to make one that will best bene?t the company. Hazel should also have a friendly aQtude towards the employees to build a connecDon with them. Employees will feel more inclined to comply and cooperate with Hazel if they see she is leading the team with con?dence and joy. Leadership is an important skill that Hazel must solidify while working with her team. She must be able to guide her team and make sure her team is able to work together as well. Leadership is also acquired through a good understanding of conceptual skills. This is the ability to think analyDcally and solve or diagnose complex problems that occur in the workplace. One thing Hazel should do in her ?rst few days of work are to implement organizaDon tacDcs that will further escalate her team to prosper. She can do this by simply implemenDng the management process. Here she can plan, organize, lead, and control the use of resources necessarily needed for their performance goals. Hazel should also make sure she is seQng a good role model by always staying on task and assigning each team member a task to be done. E?ciency is very important in the workplace and the team leaders are held accountable for the performance of their teams. With proper communicaDon and organizaDon, very good work can be put out. On the contrary, Hazel should avoid allowing her team members to believe that she doesn’t take her posiDon seriously. This will majorly a?ect her authority due to their being no credibility behind her posiDon. Lastly Hazel should avoid being late and always be on Dme. One important 5 aspect of proper leadership is always being on Dme ready for your team. Taking all this into account Hazel should be an e?ecDve team leader. Further Research. 4. Study news reports to find more information on Trader Joe’s management and organization practices. Look for comparisons with its competitors and try to identify whether or not Trader Joe’s still has the right management approach and business model for continued success. Are there any internal weaknesses in the Trader Joe’s management approach or new practices by external competitors, or changing industry forces that might cause future problems? One arDcle about Trader Joe’s suggests, “Trader Joe’s has mastered their business model, but they are never saDs?ed. In fact, they are always looking for new ways to push new ideas as they feel a deep sense of responsibility to saDsfy their consumers.” (Glenn, 2011). This shows the will that Trader Joe’s carries to provide for their customers saDsfacDon. They always are looking for ways to improve. SupporDng this the arDcle also claims, “In fact, they encourage consumer feedback and ask that consumers complete a simple response card that is available at the front of every store.” (Glenn, 2011). Trader Joe’s values their customer feedback most and wants to build new ideas from those. This is a very strategic tacDc that supermarkets like Ralphs, Vons and Albertson’s don’t do. Lastly, showing Trader Joe’s e?orts in quality is this point from the arDcle, “And it is apparent that Trader Joe’s carefully addresses their diverse consumer needs in their research & development e?orts: from product quality, product origin, packaging to the subtle aCenDon to detail that cater to the cultural nuances of this consumer.” (Glenn, 2011). Trader Joe’s wants to be able to provide anyone and everyone willing to shop at their business 6 with something they will like. Contrary to popular belief, the world is now emerging into a world of technology. People like to use their phone to complete daily tasks as it is more e?cient. Therefore, when comparing Albertson’s market to Trader Joe’s regarding loyalty programs it is quite drasDc. An arDcle states that " Albertsons’ Just for U loyalty program, with 24.3 million registered users, is playing a key role in driving customer transacDons and retenDon. Just for U has seen a 23.5% year-over-year increase in users, who are spending an average of 2.5 Dmes more than shoppers not in the program.” (Russell, 2021). Many users are suggesDng and liking this implementaDon and emphasis on their loyalty program. As more users join, the company is receiving more purchases. SupporDng claims of the industry shining to a more tech-based side, the arDcle shares “Digital sales jumped 225% year over year, Albertsons’ third straight quarter of more than 200% e-commerce growth.” (Russell, 2021). Digital sales and local pick-ups are part of the new era. Many people have di?erent schedules, and this accommodates perfectly. Trader Joe’s needs to implement a service like this. They are not as technically advanced as Albertson’s in the sense of autonomy. Trader Joe’s contains one internal weakness of not having a strong e-commerce foundaDon. AdaptaDon is very important in business and Albertson’s is taking advantage. Another part of the arDcle states, “Albertsons has improved online grocery pro?tability via reduced operaDonal expenses, including lower picking costs achieved through labor planning, process improvements and new sonware that has simpli?ed work?ows, according to Sankaran.” (Russell, 2021). This proves that autonomy can be achieved while also being e?cient at the same Dme. Trader Joe’s must expand into this part of the industry to conDnue further and reach new peaks. 7 References Home. (n.d.). http://www.traderjoes.com/ Jr., J.R. S., & Bachrach, D. G. (2020). Management (14th Edition). Wiley Global Education US. https://bookshelf.vitalsource.com/books/9781119497721 Llopis, Glenn. “Why Trader Joe's Stands out from All the Rest in the Grocery Business.” Forbes, Forbes Magazine, 3 Oct. 2011, https://www.forbes.com/sites/glennllopis/2011/09/05/whytrader-joes-stands-out-from-all-the-rest-in-the-grocery-business/?sh=33bf9eb24dec Russell Redman 1 | Jan 12. “Albertsons Keeps up Sales Momentum in Third Quarter.” Supermarket News, 13 Jan. 2021, www.supermarketnews.com/retailfinancial/albertsons-keeps-sales-momentum-third-quarter 8 Purchase answer to see full attachment Explanation & Answer: 5 pages User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.
