A Case Study Analysis

 

A         Case Study Analysis (60/100%)                  2700 words

 

Based upon the case study detailing a leadership and change scenario (Tony Hsieh at Zappos), you are required to use the information contained in the case, in tandem with the material presented in the module, to illustrate that you fully understand leadership and change theory and practice.  You are required to respond to specific questions (as follows) and critically analyse the information, as well as making recommendations about the leader and the scenario.


Question. 1

 

Discuss and evaluate

a.  Tony Hsieh’s leadership at Zappos and

b.  The changes he brought into Zappos. Use leadership and change theory as the basis for your answer.

 

30 marks

Zappos is a US-based company of online clothes and shoes founded in 1999 by “Nick Swinmum”.

Firstly, the name of the company was "shoesite.com" and subsequently changed into “Zappos.com” which means shoes. Later on, in 2001 “Tony Hsieh” became co-CEO after observing the “Swinmum” passion of business in heart to start a new online shoe company. He had a remarkable vision and an incredible man. Hsieh played an integral part to create the prosperous Zappos business. Zappos works under the parental group that is the world's largest group Amazon.

 

In the start, Zappos was a little beginning up with a major dream. Zappos became successful by the establishment of client care and friends culture. By making a lot of struggle to encounters around the brand, Zappos keep on bowing to the boundaries of conventional corporate practices. 

Hsieh keeps on driving the organization with energy, passion, and indeed, even a little abnormality.

He was reportedly focused on maximizing profits long-term, by focusing on company culture in the short term. Hsieh said:

“Ordering shoes online at first can be a frightening interface for individuals, However, Zappos will give the best client experience, for example, free delivery the two different ways. Despite the fact that free delivery of the two orders and returns has set us back additional, it has empowered us to keep our clients longer”.

 

 Tony Hsieh Leadership Philosophy to Change Company Norms

Tony struggled to persuade the governing body at Zappos to maximize revenue by focusing on long-term relationships with customers, while they needed to observe the performance of the internet business. He made legitimate scales so that the organization the culture had an effect on progress and Failure.

 

Hsieh's authority has empowered Zappos dominate from multiple points of view, additionally, it has enormous effects outside the organization. The former CEO believe that to grab customers attention by offering wonderful customer Service, that made his organization side evaluation among the competition very different. From 2005 to onward Zappos arranged a training boot camp for their employees. Furthermore, truth be told, it is improving the existences of thousands locally and society-on the movable. In spite of the fact that surely not customary using any and all means, Hsieh's strong administration was unmistakably deserving of profound respect.

Since the guiding principle was set up, what better approach to seek after development and learning than add to the company services?

Hsieh is a capitalist at heart and after a lot of struggle, Hsieh became a successful person to bring amazon and Zappos below the same roof. Amazon, an estimated force within the retail business, empowered Zappos to enhance more attire and help to develop its brand. Amazon keeps a distant approach, to run the Zappos remote business.

 

Courageous Leadership

 

A great leader emphasizes his team to go ahead to compete with the challenges and, he may take the risk for the improvement of the company. He must maintain stability through his directive leadership skills by conceding the eccentricity and effect of together happiness. Tony said, “Self-management and self-organization are not for every- one, and not everyone will want to move forward”.

By Zappos, Hsieh’s leadership philosophy brings many employees to practice their skills at a good platform with blending relationship between customers and workers. He focused on the long-term vision to extend social values. Under his guidance “Tony Hsieh” arranged boot campus to train the staff to meet the freshest challenges. Among the boldest leaders, Hsieh decided a company become stronger as its ethical values are. He believed that this little aspect should not only the department but should be a whole company, and he did it with his expertise.

Tony Hsieh's worker initiative is only one piece of his unbelievable heritage. His administration thoughts, can be epitomized by the Zappos Core Values:

 

•           Delivery services  

•           Embrace and drive change

•           Be courageous and inventive

•           Follow progress and culture

•           Make sure transparency of the company

•           Form a team of positive members

•           Get more with small expense

•           Be a good decision maker

 

b) Zappos Leadership Change Theory

 

Tony devised the techniques that an organ must include culture preservation in its system to make a good change. In fact, Change is an adaption of a new idea to boost the economy by introducing a positive revolution in a society. Zappos met with the Change that is ever-present and a necessary part of the organization. The major change is done by Tony Hsieh was standard customer service and self-management of secure funds to gain worthy capitals. Zappos may take millions of calls to fulfil customer needs and satisfy them. The free delivery of shoes also a very smart feature of the company.

 

Hsieh was also called “King of Customer Service” for his smart leadership guidelines. He was the man who wants to create happiness and socializing peoples. He evolved some points to take the full maturity level from the staff and the customers.

 

i.            Fundamental Principle

Zappos introduced fundamental ways to estimate the presentation of work in traditional way.

The core value of the organization is to develop the culture to produce outstanding customer service and output. Tony believed that Culture is destiny.

 

ii.            Self-organized Team

The main aspect of the Zappos system is to train their workers to be self-organized. To develop customer trust and to provide help in organize way is the primary role of the company’s team. In the organization, every member of staff has the right to make the change according to his vision.

 

iii.            Employee engagement

Most important and backbone feature of the company is to make their customer happy. Of course in any online business customers are assets of the organization. Zappos hire only those individuals who are aligned with the ethical core values.

 

iv.            Training Boot Camp

Zappos offered training for around a month to their employees. To train workers according to the environment and customer needs, Zappos is very possessive.

 

v.            Hunting for  New business techniques

Any organization need to be updated and the latest knowledge about the advanced world and people demand to make their business profitable. To secure long-term customer relation it is very important to meet the needs of the people changed with time.

 

Things are made with many artists, Tony prised brilliant and chaotic though he did not leave too much in the legacy he taught valuable instructions to the generation. Because of his game-changer vision, Tony brings Zappos at such a place where Amazon (The world's largest company) wants to learn from Zappos. The core trait based on a cultural slogan and described in the best way as “From an outside view, you can’t understand inside. From looking inside you can’t explain outside”.

 

One of the most attractive things is the prior CEO invested his own money $350 million for company leads, it seemed inspiring. There are some attributes that Zappos adapted to meet the goals and suitable profits by Tony’s vision are illustrated as

Fig: Zappos Culture Cycle

 

It is obvious from research on a culture that assumes a critical part in the achievement or disappointment of associations. Zappos addressed special circumstances to pursue their goals to run the administration cycle. Hsieh's risky and leadership qualities were significant and produce worthy outcomes. That is a very decent approach to summarize Tony's life and creativity. As a business person, he tested. And keeping in mind that there was never an end-all strategy, there was a significant responsibility to others conscious and reformist qualities: a profound association with clients, incredible dependability to culture and partners, and enthusiasm forever, a pain to make. Tony was an illustration of a pioneer who experienced his qualities. His supporters will miss him, yet, the tradition of Tony Hsieh will live on in the hearts and psyches of the business chiefs he contacted.


 


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