Zappos Analysis

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1. Company Profile:
a. History: Zappos was founded in 1999 by Nick Swinmurn after shopping for shoes and not finding the ones he wanted in a store or online, he decided to startup an online shoe retailer. (Zappos, Inc., 2010) b. Mission Statement: To provide the absolute best service online. To live and deliver WOW.(Zappos, Inc., 2010) c. Employers Expectations: Zappo looks for employees who understand the need for the Zappo core values and are willing to embrace and embody them. (Stershic, 2008) 2. Company Statistics:

a. Number of Employees: 3003 (CNN Money, 2012)
b. Annual Revenue for FY2010: 1,640 ($ millions) (CNN Money, 2012) c. Current Stock Value: Not a publicly traded company. Under Amazon d. Products: Zappos products include the online retail of clothing, Shoes, Accessories, Eyewear, At home products, Beauty supplies and Handbags. (Zappos, Inc., 2010) 3. Observable Components of Company Motivation Strategy:

• Organizational Culture: The values, norms, standards of behavior and common expectations Zappos expects of their employees. i. The Zappos family enjoys a fun unique workplace that has a little weirdness in the mix. a) “Fun in the workplace, such as team building activities and allowing people to be ‘a little weird’ and express their own personalities are just a few ways that we work to fight against that frustration at the Zappos Family.” (Wolske, 2012) b) The only staff members in traditional offices with doors are those in legal (confidentiality reasons) and IT (temperature control for sensitive equipment). (Stershic, 2008) ii. Each cubicle is decorated to match the employee’s personality and style. a) Zappos wants its employees to feel comfortable in their work environment while working for the company. (Taylor, 2008) b) Zappos employees get to express a part of themselves at work which can make them feel more comfortable. • Compensation: The pay, bonuses and company expense accounts that Zappos offers its employees. i. Zappos CEO Tony Hsieh admits that Zappos underpays in terms of salary. (Magill, 2007) a) The salaries at Zappo are at or below the market. b) Zappos puts emphasis on benefits and culture over salary. According to Ian Myers, Zappos has paid profit sharing in the past. (Myers, 2011) ii. Employees at Zappos feel that the culture and work environment in addition to the salary are valuable. a) Employees say that the total compensation package delivers a greater total value than higher wages but lower benefits. (unknown, 2011) b) The benefit package is above industry averages thus making the total package great. • Benefits: The insurance, vacation and sick time, free meals, employee assistance program, discounts, monthly team outings and prepaid legal. i. Zappos offers a great benefit package, plus a corporate culture that includes employees into decisions. c) 100 % medical insurance coverage, dental, vision and life insurance are the basic benefits. Pet insurance, pre-paid legal, free meals, onsite wellness services, monthly outings, discounts on products and daily goof-off time goes above the normal benefits. d) The managers are required to spend 10-20% of their time goofing off with the people they manage. (Chafkin, 2009) ii. Offering these benefits to the employees shows that Zappos wants the employees to be happy and motivated. c) Each year employees are asked to express their thoughts about the company’s culture which shows incite to possible changes. (Stershic, 2008) d) According to Brooke Likens, an employer at Zappos,” Zappos is absolutely a great employer. I've been here for close to three years now, and have never experienced anything quite like it....
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