Zappos Customer Loyalty Team Case Study Solution


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Zappos Customer Loyalty Team Case Study Solution

Background and Facts

Zappos Customer Loyalty Team an office products store for small and also medium sized services has recently been associated with preparing for a merging with its competitor House Deport, which has affected performance degrees in departmentswith the senior supervisor associated with lawful complications presented by the government Profession Payment. With the Advertising Head putting forward the news of his separation from the business in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the function in the future. With challenges in the form of a prospective social modification as well as low worker morale, the organization is in need of a total reengineering effort at the advertising department.

Problem Statement

The potential social change at the advertising and marketing division of Zappos Customer Loyalty Team is enhancing uncertainty in the workplace resulting in numerous obstacles for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in affecting critical decisions considering that Stapes Inc. needed to desert its plans of combining with Office Deport after the Federal Profession Payment's treatment at the same time. Given the fact that the store has a worldwide presence with branches in UK, USA, Canada as well as Germany, political factors in each of these nations might have the ability to influence efficiency or calculated objectives. Federal Trade Payment's antitrust suit versus the merger occupied valuable time of the company's senior monitoring suggesting that 'political' factors can have major implications for an international service.

Economic Factors: Financial factors such as the emergence of small businesses in the global circumstance suggest that Zappos Customer Loyalty Team is flourishing in an environment where there is possible growth of services. Reality that store customers are primarily looking for office products for home offices suggests that the market has an increasing trend of entrepreneurs and also house based businesses.

Social factors: Social fads in the economic climate show that consumers are trying to find ease in addition to attractive costs. Marketing research demonstrates how the consumer for Zappos Customer Loyalty Team lacks understanding concerning locating solutions which can provide a mix of ease and also inexpensive.

Technological factors: Innovation plays a vital duty in Zappos Customer Loyalty Team's service strategy particularly as the organization is piloting Innovation centers which would offer innovation sales and also support in the form of memory upgrades, outer installments. (Summary of INSECT in appendix 2).

OB Issues and Symptoms.

A number of underlying Business Habits problems can be seen in Zappos Customer Loyalty Team's case as highlighted in this section.

Concerns regarding cultural change: There is concern concerning a social change that would certainly occur once Todd Krasnow leaves from his placement as the Exec Vice President of Advertising And Marketing with most of the staff members already showing unhappiness over this potential step. This anticipated modification has produced stress in the work environment which has been combined with the previous tension of preparing the firm for a prospective merger with House Deport.

Demanding Task Atmosphere for Newcomers: There is shortage of employees that can match the stressful atmosphere of a busy organization. Not only does this lead to problem in finding the ideal individuals, it puts tension on new hires as can not withstand the speed and pressure that the company expects them to bear.

Double Coverage Lines: Newbies locate this business society troublesome and also challenging to cope with especially as populated line partnerships are meant to be weaker generally and also unbiased setting as well as efficiency evaluation is still done by the solid line manager. This indicates that newcomers might lose clarity about their corresponding duties and also purposes particularly as populated line coverage does not keep them in straight communication with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles despite the fact that it had been hypothesized that the latter would take Krasnow's setting came as an impact to her morale. Lewis might have been capable and also suitable for the task but the truth that Kransnow's separation would make Coles a straight record to Lewis might have been the factor for Coles' resignation from services.

Fear & Task Insecurity: Concern and also instability can be determined as 2 significant worries that Lewis would certainly be handling particularly as the merger has currently be terminated and 2 senior execs of the advertising and marketing department would be leaving. The whole duty of the division would certainly be falling on Lewis's shoulders that would certainly not just supervise of brining concerning a cultural change but would likewise need to show herself in her new function.

Incompatible Management Style of Leader: Lewis's monitoring design and its conflict with the advertising division's function can additionally be seen as an OB challenge especially as she has actually been used to dealing with problems in the operations division where employees are taught to concentrate on processes and also get them. The advertising department on the other hand can be viewed as a team of people that are made use of to being nurtured by Krasnow that focused much more on result than processes.

Interdepartmental Disagreements: Interdepartmental disagreements between 3 departments, marketing, merchandizing and procedures specifically over the allocation of the advertising and marketing mix can be determined as an additional OB issue. The advertising division does not share the exact same vision as the other two departments pertaining to the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing and operations departments do not agree over the advertising mix allowance among one an additional either.

Disintegration in Advertising Division: Disintegration in between the marketing and advertising divisions can be determined as an additional OB problem which could require more interest. The truth that the advertising and marketing sections in the advertising and marketing division are separated is preventing both divisions from gaining from each other's experience and also competence. Integration of advertising with merchandising and operations would come to be more difficult if the advertising division itself is broken down which can be an additional potential OB worry.

Zappos Customer Loyalty Team Analysis

Different theories have actually been made use of to discuss the scenarios to get more clarity regarding the scenario available.

McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers think that staffs are passive as well as careless, have little aspiration and resist change. The hard variation of this concept emphasized threat, limited controls, threats and also penalties. In time it generates reduced productivity, subtle sabotage and rivalry (Offer, 2003). Although the situation at Zappos Customer Loyalty Team is not completely complying with Concept X, it can be seen that new hires are locating this atmosphere instead stressful which might ultimately result in a better inclination of the monitoring towards Concept X. According to McGregor's promoted sight, which he called Concept Y, the essential job of the administration is to organize business conditions to make sure that individuals can achieve their very own objectives best by directing their efforts towards business rewards. If people locate no fulfillment in their job, the monitoring would have little choice however to rely upon theory X as well as exterior control (Offer, 2003). Even while evaluating Lewis's monitoring style, concept X may have appropriated in the procedures division somewhat but the Advertising division would need reliance on Concept Y to get the creativity as well as creativity from the teams.

Tuckman's Synergy Theory: As far as Lewis's problem about bringing consistency in between the advertising and marketing division is worried, this would initially lead to contrast as gone over by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). Based on Tuckman's theory received appendix 3, throughout the first phase of team development, individuals might not bond, as they are busy finding their place in the team. By combining the advertising and marketing division's work, there might be the same preliminary separate which can cause the second stage of 'storming' where the groups test each other. However, it is only during the third stage or 'norming' when they would certainly come together to share concepts prior to the team can produce synergy in the fourth phase 'carrying out'.

Bridges' Transition Version: As per William Bridge's theory (appendix 4), people are rather uneasy with change, which is evident by the circumstance at Zappos Customer Loyalty Team The circumstance can be viewed as a normal training course of life if is examined according to Bridge's theory where he discusses that individuals experience three stages of transition when they experience change. 'End, shedding and also Letting go', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When individuals exist with modification, they enter stage one and so there might be feelings like despair, unpredictability, aggravation, rage, concern, rejection and disorientation.The situation at the advertising and marketing division of Zappos Customer Loyalty Team is comparable so Lewis can get comfy with the idea that it is not amazing actions. In the second stage, there might be a demand to link the gap in between the brand-new as well as old culture so Lewis may have to face this experience when Krasnow leaves. There may be reduced spirits as well as low efficiency at this phase which must not be taken as a setback. It is during this phase that Lewis will certainly need to give assistance to the department to make sure that they can locate a sense of direction. It can be seen just how Krasnow has already made this shift much easier by making Lewis obtain involved in the division a year prior to his real departure. According to Bridges' Design, stage three will certainly produce visibility to understanding, High power as well as commitment as individuals will embrace the modification (Bridges, 2004).

Maslow's Demand power structure: The OB issue pertaining to instability at the office has been activated first of all by the change in management and secondly by the truth that the merging will no longer be initiated. Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has discusses the relevance of 'safety requires as being a reduced degree demand of a human for causing motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the demand to feel secure and also unharmed' goes to the 2nd degree of demands. Before an employee can be made to create emotionally, he needs to have his 'Physiological 'and also 'Safety' requires satisfied. This indicates that unless the personnel are made to feel safe and secure concerning their existing work status in Zappos Customer Loyalty Team they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Zappos Customer Loyalty Team Case Study

Ramification of Analysis.

The OB analysis has actually looked at numerous concepts to comprehend how to handle the current circumstance at hand. The adhering to 3 choices have been recommended to aid Lewis handle the business obstacles in the advertising division. Each of these alternatives has actually been recommended for reducing the shift needed to bring the marketing department in accordance with the requirements of the market and also for making the cultural modification that would adhere to once the present leader leaves.

Combination of advertising and marketing features. Separating Adverting and also Manufacturing features. Combination of Marketing with Operations.

Evaluation of Alternatives.

Integration of Marketing & Advertising And Marketing Functions: The internal advertising and marketing firm of Zappos Customer Loyalty Team is currently strength for the company in regards to saving up on expenses connected to advertising and marketing and promotion. Considering that no brand-new recruitment has been done after Bridget Cole's separation with the coverage line being directly designated to Krasnow for the advertising and marketing feature, this is a desirable opportunity for integrating the marketing and advertising functions. Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merging days has experience in business-to-business advertising in addition to agency and retail advertising experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to handle both marketing and advertising functions.

The benefit of this technique is that it will incorporate both functions while reducing the need for employing an added source for marketing. In addition to this, Lewis would certainly be heading the advertising and marketing division and also all the same her substitute would be required for the present duty that she is carrying out. The negative aspect of this alternative is that external hiring might produce bitterness from interior personnel that may be looking at the setting of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and also Production: Offered the competitive pressures and also high top quality job required from the advertising company, it is advised that Lewis must enable the manufacturing device to be a separate function from the marketing device. Since a lot of advertising and marketing companies had these 2 functions as separate devices, it makes even more sense to adhere to the standard.

Combination of Marketing with Procedures: Because Lewis is currently caring for the marketing as well as operations departments all at once; it makes good sense to integrate both features since she has been efficiently caring for both ends. The truth that both departments currently have major distinctions over allocation of sources recommends that this integration may be able to cause consistency especially as Lewis would certainly be heading both ends.However there are numerous drawbacks of this relocation specifically as it would certainly place too much worry over Lewis's shoulders. The reality that Lewis has to adjust her management style for the marketing division suggests that these 2 divisions would certainly be culturally varied. In addition to this, Lewis might not be able to apply one sort of management style to both departments which could lead to inefficiency in either among both functions.


An assessment of the 3 choices suggests that integration of advertising and marketing and also procedures would certainly not be a viable action as a result of the large differences between the two divisions although that presently Lewis is dealing with both. While splitting up of the manufacturing feature might have been a beneficial step for the advertising division, the truth that it would certainly imply putting a third feature under Lewis's wing indicates this should be stayed clear of. The assimilation of the advertising and marketing division is the best option in regards to getting the optimal arise from the department. An activity plan for this option is discussed below.

Action Strategy.

Lewis will take over the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

Judith Shapiro will be hired to take Lewis's place as SVP of marketing and advertising.

Manufacturing function will continue to be component of advertising under marketing function.

Lewis will certainly divide herself from procedures.

A democratic leadership design with staff member empowerment will certainly be used in advertising department.

Open up door plan and also emphasis on cross department interaction will be aimed at removing discord.

Contingency strategy.

If the integration does not work out as intended, a backup strategy would certainly comply with which would separate the manufacturing function from the marketing function to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will be heading the marketing division without an SVP. In that case the manufacturing feature will absolutely be separated by putting it under an SVP manufacturing.