...Velma Lewis Instructor: Kellie Erich Principle of Mgt. & Org. Behavior 8/30/2013 Trader Joe’s Case Study Trader Joe’s Personal Touch Case Questions Answers Management Process 1. Ans. Planning and Organizing: In 1958, “Trader Joe’s,” started like any other convenience store chain. In 1967, founder “Trader,” Joe Coulombe, renamed the store to of course, “Trader Joe’s. He had the concept of offering a one-of-a-kind foods at below average prices in twenty odd states. They offer a laid-back enthusiastic consumer service. It was more of a cozy and intimate feel than that of the big spacious “Whole Foods,” chains. Joe’s has a faux- nautical theme, his management crew and crew members are to wear a loud tropical-print shirt. Leading and Controlling: “Trader Joe’s,” limits it stock and selling quality products at low prices. Joe’s sell twice as much per square foot, than other supermarkets. Most retail-mega stores, like “Whole Foods” carry between, 25,000 to 45,000 products. Whereas, Trader Joe’s stores carries only; 1,500 to 2,000 products. The scarcity benefits both Trader Joe’s and its customers. It is suggested by David Rodgers of DSR Marketing Systems expect Trader Joe’s model toward a smaller store size to include excessive competitive floor space, development costs, and the aging population. 2. Ans. It would probably be political and economic change. It would not be able to operate effectively if or when the government of other countries has a negative impact on the...
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...Case Study: Trader Joe’s In 1958, Trader Joe’s first began as a small convenience store named Pronto Markets. Trader Joe’s didn’t receive their Trader Joe’s name until 1967 when they opened up a store in Pasadena. Mr. Coulombe had transferred his stores into an oasis of value and started putting innovative, hard-to-find foods in the Trader Joe’s name. By doing this Trader Joe’s was able to cut costs and save you money. In 1979, Mr. Coulombe sold the Trader Joe’s chain to the Albrecht’s, own about 9,000 Aldi markets in the United States, Europe, and Australia. “Value” is a concept that both Mr. Coulombe and the Albrecht’s take very seriously. Value not only means providing great prices on great products—no sales, no gimmicks, no special shopping clubs to join, no reward cards required for sales, but also by buying directly from suppliers whenever they can by rotating the “not-so-popular” products from the shelves to make room for something different. At Trader Joe’s their philosophy is great food plus great prices equals’ value. To help contribute to that philosophy, Trader Joe’s believes in promoting from with-in. Trader Joe’s believes that it nurtures its employees with a promote-from-within philosophy, and its employees earn more than their counterparts at other chain grocers. Outlet managers are highly compensated, partly because they know the Trader Joe’s system inside and out because managers are hired only from within the company. Future leaders are enrolled...
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...Job Satisfaction Trader Joe Kimberly Love Dr. Thomas Schaefer Business 520 Leadership and Organizational July 20, 2014 Trader Joe’s founder had a perception for his stores after vacationing in the Caribbean. He perceived that the customers would try new things while on vacationing. Also realized that less is better. Many time customers buy more when there is less to choose from in that store. Their attention is only selective when there is not a big variety of supplies. Trader Joe case describes the business practices and how they reinvented themselves. Trader Joe’s set themselves apart from the 7- Eleven style store they had and they became top competitors to Whole Foods and Dean and Deluca giants. The case gives a description on the history of the retail chain and various aspects of its unique business practices. The retail store offered a selection of exclusive, which were mostly private-labeled products, and replaced poorly performing products with new ones. Trader Joe’s is a small supermarket chain which offers a limited selection of unique food products at reasonable prices. It sales most of its products under the private label 'Trader Joe's' and its variants. T.J. targets its stores at highly educated and travelled, but not necessarily wealthy, segments of the population. Trader Joe has a team of experienced buyers, who does extensive traveling and research before bringing new products into the stores (Palmeri, 2008). Trader Joe also avoids the...
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...Case Study 1 Rodney Back Strayer University BUS 520: Leadership and Organizational Behavior October 26, 2014 Abstract For over fifty years Trader Joe’s has had success in competing with retail giants such as Whole Foods and Dean & DeLuca. Why has Trader Joe’s had so much success? In this paper I will attempt to answer that question by 1: Examine the approach Trader Joe’s uses to promote a positive work environment for its employees. Determine at least three (3) ways in which Trader Joe’s is able to increase job satisfaction and performance. 2: Determine how Trader Joe’s uses the management process (planning, organizing, leading, and controlling) to develop its employees. 3: Suggest two (2) ways that leaders can effectively manage relationships in general by using the four (4) EI competencies. 5: Recommend at least three (3) leadership practices that Trader Joe’s could implement in order to increase the competitive edge of the organization. Examine the approach Trader Joe’s uses to promote a positive work environment for its employees. Determine at least three (3) ways in which Trader Joe’s is able to increase job satisfaction and performance. Trader Joe’s has a few different approaches it uses to promote a positive work environment for its employees. One approach that they use, and it’s the reason why anybody works is pay. The average American cashier makes $20,230 a year, a salary that in a single-earner household would leave a family of four living under the...
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...CASE STUDY TRADER JOE’S 1. How does Trader Joe’s design jobs for increased job satisfaction and higher performance? Trader Joe applies its pursuit of value to its facet of its operations by focusing of natural ingredients, inspiring flavors, and buying direct from the producer whenever possible. By buying from producers Trader Joe is able to keep its costs down thus saving costs which they pass on to their customers. They also limit their stock and sell quality products at low prices. Trader Joe also connects with its customers because of the culture of products knowledge and customer involvement that it’s’ management cultivates among store employees. They also maintain their employees by offering benefits such as dental, medical, vision insurance and competitive pay packages. 2. 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 puts his money where its mouth is, by doing so he pays his employees way more than their counterparts at other chain grocers. Trader Joe’s nurtures their employees with a promote-from-within philosophy, so each employee is encouraged to taste and learn about the products and to engage customers to share what they’ve experienced. Future leaders are encouraged to enroll in training programs such as Trader Joe’s university that foster in them the loyalty necessary to run stores according to both company and customer expectations...
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...Case Study #1 – Trader Joe’s: Managing Less with More Due Date: No later than 9:40 AM Thursday, February 7, 2013 Remember the importance of deadlines, both in and out of class. Please do not ask to hand in the assignment past the due date. If you miss this one for some reason, there will be another. Thanks! ------------------------------------------------- Directions (use this as a checklist): * Read Chapter 1 thoroughly * Read both cases. One is about Trader Joe’s and the other is about Chobani Greek Style Yogurt. * Answer each of the four questions with significant thought and further research. Rushing through this the last minute will show loud and clear. * Your paper should be a total of 1,600 words (more is fine) and typewritten double spaced with 1” margins. * Please use no larger than 11 point font (this helps conserve paper). * Please conserve paper and fill each page (similar to the second page) * Please check for spelling and grammar * Please edit thoroughly. Any sloppy and haphazard papers will not earn full credit. * Each answer (if you want to divide 1,600 words by 4 questions, this should be 400 words for each answer, but you can decide how you want to allocate your words). * Remember that you can print (do so 48 hours in advance) in Cloud Hall 111. * Get started this week. I think you’ll find that managing your time is as important as managing any other precious resource. * Have a great time! I hope...
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...Trader Joe’s Case Study Management Issues – After reading the case a couple of times, I think that Trader Joe’s may only have a couple of issues. One issue that I think may be their largest is the fact that they choose to have small stores. People feel cramped and they tend to become agitated, than in return can rub off on other customers and their employees. I think they can have a slightly larger store, keeping the same amount of products. This would make the store have more room in the isles and for people to move around more easily. The other issue I found could be their locations. They tend to have locations that are out of the ordinary and a place people would not normally go grocery shopping. This tends to turn most people off from shopping at certain locations. Discussion Questions 1. I believe Trader Joe’s uses the management process in many different ways. Planning- Most supermarkets carry upwards of 45 thousand different products, while Trader Joe’s only carries about 4 thousand. This gives people a lesser variety but a greater chance of buying the product. It is less of a chore to pick between 4 different brands than 12. When they have a product that is not making a profit or not enough profit, they remove it from their inventory and bring in something new. They also use customer feedback for this process as well, which keeps their customers satisfied and coming back to their stores. Another way of planning for Trader Joe’s is their marketing. They spend about...
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...Trader Joes' demonstrates the importance of organizing by limiting stocks and selling quality products at low prices, because of this they sell twice as much per square feet compared to other super markets. Trader Joe's only carries 4,000 products compared to other super markets who carry anywhere between 25,000 - 45,000 products. Studies show the more options a customer has to decide on they are less likely to choose any of the offers. It all comes back to the basics which is simplicity is key. And Trader Joe's offers that to their customers by only stocking the best products with limited options. Trader Joe's demonstrates the importance of leading by presenting a unique way of doing business compared to their competitors. They do not carry many products compared to other super markets which carry 6 times if not more products compared to them but in the end they still managed to generate more revenue. Because of this other companies are projected to follow in Trader Joe's footsteps by limiting the number of products their store carries. Because they clearly show their way of doing business works. Trader Joe's demonstrates the importance of control by keeping stores comparatively small and avoiding prime location by doing this they avoid high real estate cost. They also show that control does not apply within the company itself they do this by allowing customers feedbacks to be taken seriously which gives customers a sense of control which is very important. They also control...
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...Case Study 1: Examining Emotions, Attitudes, and Job Satisfaction Leadership and Organizational Behavior (BUS 520) Dr. Antoinette Bridges KB Gause January 26, 2015 Case Study 1: Examining Emotions, Attitudes, and Job Satisfaction When grocery stores come to mind, we often tend to think of the typical family-friendly environments we’re accustomed to—like our local Publix or Food Lion supermarkets. They are generally set up the same way, they offer almost all the same products, and they’re management operates in almost the same or very similar fashions. The employees are usually pleasant and friendly, their hours of operation are about the same, and most local supermarkets tend to sell products grown or manufactured locally. So what sets these regular supermarkets apart from one another? Aside from price differences and a few differing product offerings from store to store, there aren’t very many differences. This is where stores like Whole Foods and Trader Joe’s come in and break the “boring” grocery store mold. Unlike other chain supermarkets and grocery stores, Whole Foods and Trader Joe’s are specialty foods stores. They offer a variety of the freshest foods and ingredients grown both locally and from around the world. These stores are also very popular for their sustainability efforts that range from the organic products they sell to the paper bags they use when bagging customers’ purchases. These companies are also very well known for not only satisfying...
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...Steven White BA914-E1 Organizational Behavior Case 1A – Trader Joe’s 1. Trader Joe’s has built their business on knowing and connecting with their customers. They place this same belief in their hiring process. They strive to attract friendly individuals with strong family values and experience in a retail environment. Trader Joe’s believes in providing their customers with a friendly face, knowledge of their product lines, and developing a personal relationship with the locals shopping at their stores. They create job descriptions that highlight a more light hearted and emotional approach to working for them. This allows them to attract a more dedicated, friendly individual. This type of dedicated employee is more likely to have more positive interactions with their customer base. 2. A good manager is the foundation of an evolving, growing company. Following the management process can propel employees and the company as a whole. Trader Joe’s focuses on each aspect of this process to maximize their success. a. Planning - Based on this article the planning process for Trader Joe’s starts before the hiring phase. They researched early on about how to connect with potential employees in a feel good approach. This fosters a good relationship for a new incoming hires from day one. b. Organizing – Trader Joe’s sees a value in their employees. By providing a comprehensive benefit package for its employees they help their employees organize their...
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...Case Study 1 Trader Joe’s Keeping a Cool Edge The average Trader Joe’s stocks only a small percentage of the products of local supermarkets in a space little larger than a corner store. How did this neighborhood market grow to earnings of $9 billion, garner superior ratings, and become a model of management? Take a walk down the aisles of Trader Joe’s and learn how sharp attention to the fundamentals of retail management made this chain more than the average Joe. Ruaridh Stewart/Zuma Press From Corner Store to Foodie Mecca In more than 365 stores across the United States, hundreds of thousands of customers are treasure hunting.1 Driven by gourmet tastes but hungering for deals, they are led by cheerful guides in Hawaiian shirts who point them to culinary discoveries such as ahi jerky, ginger granola, and baked jalapeño cheese crunchies. It’s just an average day at Trader Joe’s, the gourmet, specialty, and natural-foods store that offers staples such as milk and eggs along with curious, one-of-a-kind foods at below average prices in thirty-odd states.2 With their plethora of kosher, vegan, and gluten-free fare, Trader Joe’s has products to suit every dietary need.3 Foodies, hipsters, and recessionistas alike are attracted to the chain’s charming blend of low prices, tasty treats, and laid-back but enthusiastic customer service. Shopping at Trader Joe’s is less a chore than it is immersion into another culture. In keeping with its whimsical faux-nautical theme, crew...
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...BUS520 Week 3 Assignment Trader Joe BUS 520 July 19, 2014 You need to examine the approach Trader Joe’s uses to promote a positive work environment for employees. Determine at least three (3) ways in which Trader Joe’s is able to increase job satisfaction and performance. From the case study, it is very clear that Trader Joe has become successful in creating a decent working environment for the employees in stores. Friendly working environment depends a lot on the willingness and commitment of the employees as well as the leadership style. Trader Joe’s leadership style is employee friendly and thus he is being able to get the full commitment out of the employees. The employees need to feel that the company is giving proper importance to them and it is the responsibility of the organization to develop such a feeling in the mindset of the employees. Trader Joe has set a lot of examples of it. He allows all of his employees to taste the products and also gives them intrinsic and extrinsic rewards. These activities allow the employees to think them as important part of the company and give them the encouragement to give full commitment to repay the organization. Moreover, the employees have some certain demands and needs. (Cribbin, 1972) If the company can fulfill those demands and needs, the employees are happy and committed. Trader Joe knows that very well. The employees are satisfied as their psychological needs are fulfilled with decent salaries. Also their...
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...[pic] TRADER JOE’S Description: Trader Joe’s has become a multi-billion dollar national chain partly through its ability to find cheap real estate, skip name brands and smartly manage its supply chain. It’s also due to its workforce management practices. Below, excerpts from a book Trader Joe’s Adventure, review the company’s management compensation, encouragement of multitasking, screening and wages, careful use of money, fun culture, sense that its people are its brand, and communication style. Learning Objective: Our focus with this case is on immersing students in the fundamentals of organizational culture. Organizational culture is defined as a complex set of shared beliefs, guiding values, behavioral norms, and basic assumptions acquired over time that shape our thinking and behavior; they are part of the social fabric of the organization—its genetic code. As such, culture drives the organization and guides the behavior of everyone in that organization—how they think, feel, and act. In other words, the culture forms a behavior template. Davis and Landa succinctly captured the essence of culture when they say, The factors which define culture are in part internal, deriving from the unique character of the organization and, in part external, determined by the background and experiences managers and employees bring to the enterprise. Culture is a major determinant of productivity; it shapes organizational responses to external pressures; and suppresses or enhances...
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...Naomi Piché Professor John Burtt BUS 114 Management May 21, 2013 Case Study 1 : Trader Joe’s 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 demonstrates planning by intending to carry unique products at a low cost within a fun, relaxing environment. Their organizing skills were apparent due to their approach to find unusual foods from around the world, contract directly with manufacturers, label their products with catchy phrases and by maintaining a small stock of each product. Their leadership was exemplified by hiring employees with job skills such as being “ambitious and adventurous” and providing a laid-back atmosphere both for their workers and customers. Their employees had higher pay rates than those that worked for their competitors and had great benefits. Because managers were hired from within, they had an ultimate knowledge-base of how the system works. Also, the employees were encouraged to taste and learn about the products to be able to share with their customers, creating a more involved employee to customer relationship. Regarding Trader Joe’s control, they were able to control real estate costs by buying smaller stores and staying away from “prime” locations. Their “one in, one out” policy to get rid of poorly selling products or have rising costs replaced by new products helped to control costs and also showed their customers...
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...most professionals in the industry. Given an entire paragraph in the case study, the amount of dedication and care Trader Joe’s shows its crew members are to be envied by big box retailers. With starting benefits, 20 percent increase of pay compared to other peers in the industry and employee discount among others, one can say that management knows how to take care of its employees. The supporting reasoning for this level of support stems from the company’s main ideology and way of doing things that sets it apart from others. Starting at the top of the process, the planning has not derived very much from the founders initial vision for the company, even after being bought out by the Albrecht company. One fact that the public did not know for a long time is that in its infancy while still called Pronto markets, their competitors at the time were convenience stores such as 7-11 and Wawa. However, by changing the image, stock and culture of the company, Trader Joe’s has evolved into being placed into the bracket with big food stores such as Whole Foods, regardless of unique factors such as the location sizes and methods of revenue. Although Joe Coulombre decided the factors of his company over fifty years ago, the concepts still hold true by appealing to their smaller yet more dedicated choice of customers and relying on the same idea of minimalist choice offerings. From a marketing perspective, Trader Joe’s has successfully tapped into a niche that would be more readily willing...
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