...[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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...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. By making employees a priority and showing appreciation for them, Trader Joe’s has managed to retain loyal employees. Many retailers claim that their employees are top priority, but unfortunately do not treat them as such and do not provide an environment conducive to their growth and development. In an effort to increase job satisfaction and performance, Trader Joe’s has designed jobs that focus not only on actual work/retail experience, but they seek employees who possess “soft skills” such as, ethical, ambitious and overall happy/pleasant personality (Hunt, Osborn, Schermerhorn, Uhl-Bien pg.w-100). In addition to acquiring quality employees, Trader Joe’s encourages their staff and has created a work environment in which employees are trained to be extremely knowledge about the store and its products, thus employees are then able to engage customers creating a positive experience for them. It is the goal of Trader Joe’s to nurture their employees through training; as a result, they have a higher job performance rate. In a huge effort to show how much Trader Joe’s values their employees, those who work for them are considerably compensated much more than other retailers. They provide starting benefits, to include medical, dental insurance, company paid retirement and...
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...Trader Joe’s Trader Joe’s who’s grocery store chain has been known for its affordable prices, unique food and friendly staff continues to be ranked as one of the most ethical companies in the U.S. Due to recent changes in our governments healthcare system, there was a moment in 2013 that the company faced a dilemma that involved deciding whether or not to change their part-time employees health benefits. For years, Trader Joe’s has offered healthcare coverage to its part-time employees at reasonable prices while paying their part-time staff very generously compared to other grocery chains. On August 30th 2013, Trader Joe’s CEO, Dan Bane sent employees a confidential memo stating that the company would no longer be offering healthcare coverage for anyone working fewer than thirty hours a week. When the news was first announced, many thought Bane’s decision was heartless and many believed that there had to be a good reason for Bane’s decision; after all not too many companies in the U.S. offer health benefits to part-time employees. Immediately negative news hit article headlines, pointing out only one statement in the letter Bane wrote to all Trader Joe’s employees, “With low-wage workers eligible for tax subsidies to buy health insurance next year, the company has calculated that offering medical coverage to part-timers who work 18 hours or more is no longer worth the cost”. Of course Trader Joe’s part-time employees immediately became upset and started to question...
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...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 is a company that many fellow corporations aspire to be because of their ultimate success. But how did Trader Joe’s get so successful? Trader Joe’s success built from their understanding that a good team can only succeed if that have a good leader, as in leader I mean manager (which is one of the duties managers are suppose to be on top of). Managers are taught to comply with the four functions that make up the principles of management. These four functions are planning, organizing, leading and controlling. One could say that if a manager does not follow this guideline or a similar personal version of their own, they will not succeed in the management field. So how did Trader Joe’s understand the importance of these functions? First, Founder Joe Coulombe realized there was a gap in the market for grocery stores that offer quality products at low prices. At the time, all competitors either focused on one of the two. One example would be, Whole foods, which focuses on the quality of their food rather than the cost, giving them the nickname of “Whole Paycheck”. Another example, which focuses on minimizing the costs of the food would be Wal-Mart, which promises “guaranteed lowest prices” rather than top quality products. After realizing the need for an improved market, he started the planning to take his little...
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...Started in 1967 by Joe Coulombe, Trader Joe’s began as a convenience store but quickly migrated to a more novel design for adventurous food and beverage shoppers. Initially, Trader Joe’s was comprised of 17 stores in the southern California area. By the early 1980s additional food products were introduced as the number of stores grew to 26. In 1988 they expanded to northern California. The combination of innovative products along with a service-oriented culture has created a loyal customer base that continues to grow nationally. Today, TJ has over 270 stores in 22 states with revenues exceeding $5 billion. Coulombe sold the business in 1978 to the Albrecht family, owners of a multi-billion dollar retail chain in the EU. However, the company remains private. The Albrechts are passive investors—operating control was left in Joe’s hands who continued as CEO until he retired in 1988. John Shields, whose background includes retail and merchandising, and who provided the operational know-how to expand the business, became CEO, a position he held until 2001. Dan Bane is the current CEO. Trader Joe’s offers an array of products that are distinct from those sold in traditional supermarkets. They do not carry national brands, but rather a host of food and beverage products along with a number of healthcare selections. Products include cheese, wine, ready-to-prepare foods, frozen items, produce, and ethnic choices, of which 75 percent carry the Trader Joe’s label. Most products are offered...
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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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...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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...Trader Joe’s * Founded in 1958 (as Pronto Markets) * Privately held company * Albrecht family * CEO: Dan Bane * Owner: Theo Albrecht * Specialty grocery store * 418 stores in over 31 states as of May 2014 * 80% private labels * Revenue: US$12 billion (FY 2014); (Estimate) * Employees: 10,000 + * Website: www.traderjoes.com 5CS CUSTOMERS “For the middle income educated consumer who likes variety of foods from around the world, Trader Joe’s offers the best quality gourmet cuisines at a low, affordable price” “Category leaders” * Middle income * Devoted fans * Educated * Cultured * Enviromental awareness * Health conscious * Young professionals * Wine Enthusiasts CONTEXT * Growing health consciousness * Growing population of educated consumers * Environmental awareness movements/ regulations * Sociocultural: people want to be healthy and look healthy COMPANY BUSINESS MODEL “While a typical grocery store may carry 50,000 items, Trader Joe's stocks about 4,000 items, 80% of which bear one of its own brand names” (wiki) Ethics *Great Food + Great Price = Value *Environmentally friendly, free from artificial flavours and harsh chemicals “All of our private-label products are free from hydrogenated oils, artificial flavors, preservatives, synthetic colors and GMOs” Promotion * Does not offer any sort of discount coupons/ promotions * Provide online recipes and create a online community where customers to participate and share recipes...
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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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...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 to buy from a small...
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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...
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...Symbolism Ever since the first sin has happened in paradise on Earth – human beings are struggling to find a perfect balance between how they have to be and what they really are. In the short story “The Cask of Amontilado” Edgar Allan Poe makes an attempt to observe human’s nature very close by putting two friends together in the middle of the plot and places ambitions and anger of one of them on top of friendship. The story that the narrator tells us takes place in Italy during the carnival in the town. In a time everyone cheers up and has fun dressing up, one soul is deeply obsessed with revenge. The narrator of the story describes the story of punishment that happened fifty years ago with all the details and the feeling of satisfaction; he still considers his past act as the only right thing that had to be done in order to protect his dignity. The short story is presented with symbolism that creates a unified pattern, which leads to a dramatic end. Montresor’s and Fortunado’s costumes, dialogue while walking through the vaults and Fortunato’s torture death – all that symbolizes carelessness and foulness of Fortunato, and careful prudence and hidden anger of Montresor. The author gave to his characters totally opposite costumes which makes the reader imagine them from different perspective right away. Fortunato is dressed as a jester and “he had on a tight-fitting parti-striped dress and his head was surmounted by the conical cap and bells”. The reader doesn’t...
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...GIS 3117 Modern China Spring, 2014 Dr. Amy Y. Situ-Liu (Please use Blackboard internal email for your communication with the instructor. In case of an emergency that prevents you from accessing to your computer, please leave your voice mail at 652-4314, and then email me afterward) Orientation: Location: Textbooks (required): China Since 1949 By Linda Benson, Longman, 2nd edition, 2011 China: The Balance Sheet – What the World Needs to Know About the Emerging Superpower By Fred Burgsten and others, 2006 China Road By Rob Gifford, Random House, 2008 Video Programs: All assigned programs are available on “Video on Demand” provided in our library homepage. Most of them are ready for you to review. But since they are online programs, a few may be not available by the times you click the links. If so, just skip that one and watch the others. Please try both “by segment” or “by title” for your search. Course Description: China, the most populous country, is an excellent "laboratory" for the social scientific study of political, economic and social behavior. The Twentieth Century alone has seen many changes in China's fundamental institutions: from imperial courts to military regimes and single-party police states, from rural households to international stock-holding companies, and from foot-binding and slavery to mass movements and democracy protests. The latest development in the last decade has led to the calling...
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...1. I believe the most important managerial skill at Trader Joe’s is teamwork. Teamwork is one of the important factors to have in a manager because it makes the staff feel as though they have a second family. They work together well and each individual feels as though they are being heard. The staff at Trader Joe’s must be enthusiastic in their position. They are paid almost 20% higher (with many other benefits) than other staff in the giant supermarket industry. Which shows their employees they are very valued. Managers and sales associate wear similar tropical-print shirts and to me it shows there is equalization amongst the group. Customer’s opinions are highly valued and I believe their staff’s opinions are also important factor in running Trader Joe’s establishment. Managers are also brought up within the industry itself. So they understand the advantages and disadvantages that sales associates have in their position so it is easier to relate to them. Teamwork is able to work as a team member and have the responsibilities of a leader. 2. The biggest risks Trader Joe’s international ownership has with performance effectiveness and performance efficiency is current events. Since most of their products come from other countries in the world there could be a differentiation of price because the cost of travel could escalate from a war, local economy, and many other factors. Managers must also know about their products well and be informed on any price changes for similar products...
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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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