Tuesday, October 5, 2010

Zappos Video

Well, first let me address what I saw in the video. The speech given by Tony Hsieh was organized well and covered the topic of being "happy" and creating a positive culture at work. By creating this positive work environment, the employees will perform their jobs better, which will improve customer service, which will improve sales etc. Hsieh provides examples, mainly through his company Zappos, as to the benefits and success of operating a company this way. This video falls right in line with the overall topic that we've been discussing in class. Just like in the Nucor Steel example, this idea of creating a positive culture at work will help the company become more efficient and profitable. Hsieh's sites studies and books that he's read that discuss this "struggle " to find happiness. He ends his presentation by saying that his overall goal with his company Zappos is to bring happiness to the world......

Ok, so that's what I saw in the video, but again being the pessimist that I am, I'm not "drinking the cool-aid." First let me say that I don't want to argue that this business plan is dumb because its obviously working for Zappos. Since I don't consider myself a business minded person, I don't fully understand how the company can offer some of the deals they do. Like the free shipping both ways, the free books, the shuttle rides. My only guess is that they some how make up for these costs by raising their product prices...? Anyways, it is my feeling that Zappos is not successful because of their company culture. With everything that was presented in the video, the only thing that I saw going for Zappos was their great customer service / free shipping. Its these points that would make a consumer use Zappos over some other internet provider. Are they trying to separate themselves from competitors like Amazon with the argument...... Our company has a better culture...? From a customer standpoint I could care less about the company's culture. Does the company have the product I want? Is it priced fairly? Can the product be shipped to me quickly? These are the questions that I am concerned with. While having a positive work environment wouldn't hurt, I don't think it solely produces company profits. I think that Knowledge Management is far more important to a company's success than theories about happiness. Perhaps, I am not seeing the situation right and maybe this "culture" idea is part of the knowledge management process. In the end, I guess Tony Hsieh gets the last laugh since his company is very successful using this business plan.

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