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Zappos Company Management Essay

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Updated: Mar 13th, 2020

Synopsis

Zappos Company outsources work to handle selling, shipping for other companies and its customer services. This company offers training to its entire staff at, new employees and interested parties outside the organization (Chafkin, 158). The writer states that Hsieh is a customer oriented manager who goes out conducting research studies on what makes his target market happy.

The company has an effective management system with a well-designed website courtesy of Hsieh. All the employees are treated equally with a salary below market rate accompanied by lots of motivations. Hsieh takes his employees out frequently to bars and restaurants making them feel valued. The humble trait has made employees and customer love this company.

My thoughts

I have read quite a number of articles that discuss the importance of outsourcing. However, for a large company such as Zappos, outsourcing has potential damages as well as importance. Small business consultants and entrepreneurs can learn from Zappos that it is possible to reduce workload through outsourcing. I agree with the fact that Zappos Company should outsource work to handle selling, shipping for other companies and its customer service.

The negative side of this program is that outsiders have no idea concerning the internal marketing environment and factors of production. In order to improve sales, the management and employees of the company must be involved in decision making. Engagement of external stakeholders is only important in reducing the workload hence outsourcing cannot be an effective management strategy.

The writer states that Hsieh conducts some training for interested individuals outside the company. I support this move because training equips employees with the required skills at all levels of management. Training new employees is also a good initiative for Zappos Company because it creates some confidence in the new environment. Human beings always fear to make mistakes when in a new environment; it is a life-preserving habit.

I would recommend a training session for business consultants on how to handle clients. This idea is, however, challenging due to the fact that there are some costs to incur when training people. Entrepreneurs can pay for such training to gain knowledge in business management. Training should be done within the organization in order to reduce the costs involved.

Conducting research on what makes people happy is Hsieh’s strategy of understanding the target market. I believe attracting customers is like catching fish; one cannot just dive in and grab the fish. Zappos is looking for ways to bait the hook and dangle the worm.

Hsieh believes that once research is done on the things that keep a customer coming back, sales always increase (Chafkin, 161). This is consistent with reality. For entrepreneurs who want to venture into businesses, market research is very important because it gives the entrepreneur an idea of the market.

Zappos managers also use technology to connect with customers through a well-designed website. It is important to note that this company is doing this to survive in the current e-business environment. However, this may affect Zappos’ approach to customer and employee relations because the Chief Executive of this company prefers dealing with humans themselves.

This technology is, therefore, in conflict with the company’s policy thereby making it obsolete. Hsieh has the same challenge faced by most entrepreneurs in the real world. Many people never set the right objectives that lead to achievements of goals (Chafkin, 159).

New policies, if not checked, can at times interfere with objectives and as a result, affect the goals of an enterprise. With the help of its C.E.O, the company has created a management system where all necessary software is used to make work easier for both employees and top managers.

I would not consider paying my employees salaries below market rates as it is in Zappos Company. This is a potential risk to mass action because compensations are motivation factors to human beings even in the real world. However, Hsieh has his own ways of motivating employees like hanging out with them in bars (Chafkin, 158). He also tweets to keep up with the goofy libertine human culture.

Consultants should learn from Hsieh that human beings are creators of emotions hence clients need to feel appreciated and valued. However, Hsieh has gone as far as conducting interviews in a bar which involves a lot of risks. Social media is used to create relations in the real world, but for businessmen and women, such relations should be limited because they provide platforms for defamation.

Today, the consumer is more connected, more demanding, more informed and less loyal to a brand. Zappos’ strategy of placing toll-free customer support number, personal buying service and free socks can help create a strong customer base.

Creating a business card, for instance, can help consultants increase contacts. In the real world, the current generation is programmed to follow what others are doing. The things people watch and read have an impact on their consumption habit. I would, therefore, recommend a website and a free toll customer support number to an individual who plans to venture into any business.

Works Cited

Chafkin, Max. “Inc magazine.” The Zappos Way of Managing (2009): 158-162. Print

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