Trader Joe's Case

Case Study 1: Examining Emotions, Attitudes, and Job Satisfaction
Kirsten Farnham
Dr. McGrath
BUS-520: Leadership and Organizational Behavior
October 27, 2014

Trader Joe’s was a small convenience store chain in the 1950’s turned into the intimate grocery store chain it is known as today. Trader Joe’s founder, Joe Coulombe, after a visit to the Caribbean, decided to change his corner stores to a grocery store where customers can go to try new, hard to find products while still getting a great value and receiving amazing customer service (Trader Joe’s, 2014). The Trader Joe’s culture is lighthearted and customer oriented with a focus on employee nurturing creating a positive work environment, increased job satisfaction, employee development,
He believed in an environment where customers enjoyed shopping and employees enjoyed working as if both the customer and the employee were on a vacation (Palmeri, 2008). Trader Joe’s increases job satisfaction and performance through a competitive compensation package, meaningful work, and an enjoyable work environment. Trader Joe’s places their focus on the employee because they believe “a happy employee makes for a happy customer and a happy customer will spend more and visit the store more often” (Lewis, 2005). The company offers more than fair compensation with benefits. Even part-time employees are able to earn health-care benefits. Additionally, the company almost exclusively promotes within. At Trader Joe’s “the crew”, or the employees, are encouraged to multitask without regard to their job description. They are also empowered to make their own decisions about store operations such as in store displays (Lewis, 2005). Trader Joe’s also provides excellent training programs through Trader Joe’s University to help employees cultivate their leadership skills. Finally, Trader Joe’s boasts an informal work environment such wearing Hawaiian shirts and calling co-workers “mates” and supervisors “captains”. This creates a collaborative work environment in which the staff feels part of a team, but also free to be themselves (Lewis,
There are some leadership practices that Trader Joe’s could implement to increase their competitive edge. First, an increased focus on their environmental sustainability would be beneficial. Trader Joe’s has been found in the past to have not been selling sustainable seafood and fared as one of the worst in its market (Schermerhorn, 2012). By becoming environmentally sustainable and staying that way, Trader Joe’s can get ahead of their competitors and regain their customers trust in environmental issues (How sustainability can give your company a competitive edge, 2012). Second, Trader Joe’s leadership must look to maintain their rank as an industry leader to keep their competitive edge. Currently, Trader Joe’s is at the top of their game, but similar grocers such as Wegman’s and Whole Foods are giving them competition. Finally, Trader Joe’s leadership can implement continued low costs. As economic times change, customers will continue to look to buying items at a lower cost but still with great value. So as Trader Joe’s begins to implement completely sustainable foods such as seafood, it is important to keep costs low for customers or they will go to the