Organizational Culture and Leadership - Trader Joe - Essay Example

? Organizational Culture and Leadership I. Review of the Organizational Problem A. Brief of Trader Joe’s Trader Joe’s started its business in the year 1958 as a privately held grocery chain store which deals with broad assortment of products such as organic foods, specialty products and private labelled staple foods. Trader Joe’s perform its operational functions within the various provinces of United States and San Francisco. The company offers broad assortment of products to its valuable customers that are quite different from other grocery stores who sold their items in traditional supermarkets. Trader Joe’s focuses upon certain significant aspects which include great quality and prices of food. In this regard, the company strongly believes that by maintaining the aforesaid features, it can attain considerable value of the customers. The official headquarter of the company is positioned in California, U.S. The vision of the company is to provide superior quality products to its customers through engaging skilled and committed employees. Moreover, the mission of the company is to raise the satisfaction level of the customers by offering best quality food as well as beverages with cheap prices and also to deliver relevant product related information to the customers in order to take effective buying decisions. It has been apparently observed that there are more than 2,000 unique grocery items in its stores which are offered to the customers regularly (Trader Joe's., 2012). B. Description Of The Problem At present, Trader Joe’s faces certain crucial problems regarding the expansion of its existing customer base and the maintenance of competiveness with the new business market entrants similar to its industry such as Whole Foods, Fresh & Easy and Sprouts. These companies are considered to be the main rivalries or the major business market competitors which sell similar kinds of products in the same geographical provinces. All these competitors maintain a unique culture like Trader Joe’s and also intends to invest substantially for increasing productivity as well as profitability by a considerable level. By taking into consideration the aforementioned problems, certain important questions may arise. The questions include “Is Trader Joe’s unique culture is strong enough to survive and tackle with these newly emerged competitive threat?” or “How Trader Joe’s product act as a substitute as compared to the product of its rivalries”? Moreover, another important question may also arise i.e. “What necessary activities or strategies should adopt by Trader Joe’s in order to maintain its competitiveness and to accomplish significant competitive position over its chief business market competitors”? II. Assessment of the Problem Using Class Concepts A. Problem from Standpoint of Organizational Culture Trader Joe’s is regarded to be one of the most sophisticated retail grocery chain stores in the world. The imperative activities such as the execution of enhanced operational procedures through implementing effective business models and the maintenance of a unique organizational culture ultimately supports the company to attain its predetermined busies objectives. Moreover, the factors also assist the company to provide excellent services as well as better quality products to its customers (Madu, 2012). Generally, in order to build a competent organizational culture; companies always prefer to hire “Crew Members” for improving the operational performance of the employees. The companies employ the “ Crew Members” in order to deliver effective training programs to their employees concerning various topic which include teamwork, product knowledge and leadership skills. It has been apparently observed that more than 70% of the part-time employees of Traders Joe’s operate their functions under the supervision of the “Crew Members”. The role of these “Crew Members” is to provide detail report regarding the sale of products to the Assistant Store Manager of the company. With regard to the organisational culture of Trader Joe’s, it has been noted that the company introduces theme based grocery outlets in certain locations in order to attract the customers to visit stores and also to buy its products in large volumes. Through this exceptional prevailing organization culture, the company successfully performs its various operational functions which in turn facilitate to attain its desired business goals (Mallinger & Rossy, 2007). At present scenario, a few of the competitors penetrated into the business market of Traders Joe’s with the same product line along with organizational culture in similar geographical provinces. The chief business market contenders of the company include Whole Foods and Fresh & Easy among others which ultimately generated significant problem for Traders Joe’s from standpoint of organizational culture. From the very beginning, it has been noted that Trader Joe’s maintains a unique organizational culture and operational procedure but now the company felt the utmost necessity of restructuring its organisational culture along with operational processes due to the rapid emergence of the competitors (Hartman, 2011). From the standpoint of the organisational culture, the company should employ skilled as well as knowledgeable staff in order to offer superior services to the customers. Moreover, the company requires providing effective training sessions to its efficient staffs for the motive of developing organisational culture at large. Furthermore, by offering effective training sessions to the skilled and efficient staffs, the company can reduce the gap between the personnel and the management officials and can also build an effective communication with the employees. Consequently, by utilising the aforesaid valuable practices, the company might mitigate any significant problem relating to organisational culture by a significant level (Hearst Communications Inc., 2012). B. Problem from Standpoint of Leadership The perception of leadership is typically considered to be an effective tool which effectively leads, guides and influences every people of an organization for the motive of achieving expected organisational objectives successfully. The role of a business leader is not only to manage an organization while facing any sort of difficulties but also to establish effective communication with the employees. The most significant role of a business leader is determining organizational goals, preparing strategies and organizing people with the intention of improving business performances as well as productivity. The imperative qualities of an efficient business leader include self-awareness, integrity, enthusiasm, endurance and fairness among others. Leadership is an exceptional function which is very significant at all levels of management. In relation to the upper-level management it is essential for formulating competent strategies and policies for better handling of the entire business procedural functions. With regard to the middle and lower level management, it is vital for enhancing the operational performances of the entire workforce. The most significant responsibility of a business leader is to make effective decisions in order to deliver major benefits to an organization by a greater extent (Lewis, 2005). After acquiring a brief idea about the perception and the importance of leadership, it can be stated that there lays immense possibility to face crucial problems from ineffective operational processes. It is the prime responsibility of a business leader of any organisation such as Trader Joe’s to adopt valuable decisions and implement effective business strategies to control as well as to raise the standard of the operational functions. By taking the consideration of Trader Joe’s problem, it is necessary for a leader to analyse the external situation of the business. In this regard, the business leader needs to conduct a marketing research in order to assess the competitive position of the contenders (Lewis, 2005). According to present scenario, it is the responsibility of a leader to adopt certain effective initiatives in order to mitigate the problem from the standpoint of leadership (Kowitt, 2010). At this situation, employee motivation can be considered as one of the main aspects for the company. In this regard, the business leader of Thomas Joe’s should motivate its employees in order to increase their operational performances as well as to maintain competitiveness with its chief business market contenders. Apart from raising the motivation of the employees, the business leader of the company should establish an effective communication with its different people and inspire them to perform their best to deal with the problem relating to leadership abilities. All these initiatives would ultimately support an organisation to lessen the problem from the perspective of leadership (Rosenfeld, Flores & Abele, 2006). III. Recommendations for the Problem By taking into concern the aforementioned problems of Trader Joe’s which are related with organisational culture and leadership, it is essential for the company to adopt certain significant initiatives. Moreover, the company needs to transform its various business operational processes with the intention of mitigating the problems emerging from leadership as well as organisational culture. It has been viewed that from the very beginning, the company i.e. Trader Joe’s maintain a unique organisational culture by employing “Crew Members” in order to provide effective training programs as well as to maintain smooth coordination with the employees. The prevailing organisational culture in Trader Joe’s ultimately support the company to deliver quality products or services to the customers. But, due to the emergence of several competitors, it can be stated that Trader Joe’s unique operational culture is not strong enough in order to sustain in this competitive business market (Deutsche Welle., 2012) According to present day scenario, it has been viewed that certain competitors such as ‘Whole Foods’, ‘Fresh & Easy’ and ‘Sprouts’ penetrate into the similar industry of Trader Joe’s and offer similar kinds of product and services to the customers in the identical geographical regions. Therefore, in order to deal with this situation and to survive in this competitive market, it is obligatory for Trader Joe’s to implement competent strategies as well as policies. Moreover, in order to cope up with the situation, the company should conduct a proper marketing research through conducting a form of questionnaire in order to achieve valuable feedback from the respondents or the customers. By conducting this research, it would be quite easy for the company i.e. Trader Joe’s to restructure its different operational procedures, culture and also to introduce new products, if necessary. This research will also be quite useful for the company to implement effective strategies and policies for mitigating the threat of new business market participants (Hartman, 2011). The company should remain focus upon the feature of business sustainability in order to resolve the problems relating to leadership and organizational culture. In this similar context, the aspect of business sustainability implies how to manage the aspect of ‘triple bottom line’ linked with operational process which comprises social issues, environmental risks and financial opportunities among others. In order to maintain this aspect, the company should launch significant initiatives and strategies on a frequent basis. With the help of these strategies and initiatives, it is quite difficult for the competitor to imitate the company’s products and services. In order to sustain in this competitive financial market, Trader Joe’s should modify its organization culture in such a way so that the majority of the workers hold similar kinds of values and beliefs towards the company. This type of organisation culture can be considered as strong culture which is necessary for Trader Joe’s at this situation. In order to maintain strong organization culture, it is important for the company to understand both the business as well as the human aspects within the organization. With the assistance of this strong culture, the company can reduce the gap between the workers and the management officials as well as builds effective communication with the entire workforce (Schein, 2010). Moreover, Trader Joe’s must maintain a better association with its suppliers in order to create an effective supply chain network. Apart from developing supply chain network, the company should also advance its own manufacturing unit where they produce various grocery items for its valuable customers. Besides, the company can also create its own online shopping websites through which the customers can order their necessary products at any place or location. Furthermore, company can also introduce free home delivery services by which it can deliver the ordered products to the customers without visiting its stores. In addition, it is essential for the company to hire skilled staffs and provide valuable training session to the existing as well as the newly appointed employees regarding improvement of working procedures, development of communication skills and product selling techniques. The company can expand its stores in more geographical locations where there does not lie any such competitors and sell the similar products to different users (Palmeri, 2008). The implementation of the aforementioned initiatives or strategies would ultimately support the company to compete with its major business market competitors and most importantly to sustain in this competitive business market. IV. Implementation Plan An implementation plan is viewed to be a kind of management tool which help different companies to implement various business strategies effectively. It has been apparently observed that the companies use implementation plan in order to attain its desired business objectives as well as to mitigate any sort of problems that arises while performing their business operational functions (Penton Media, Inc., 2012). One of the major implementation plans can be identified as conducting market research for supporting Trader Joes’ to survive in this competitive market and to raise its profitability by a considerable level. In this regard, the company requires analysing its business position by conducting a marketing research through a certain time line. The objective of conducting this marketing research would be to acquire a comprehensive knowledge about the demands as well as the preferences of the customers. In order to prepare as well as to organize this marketing research, the company should create a questionnaire depicting significant concern towards its various product offerings in order to obtain valuable feedback from the respondents or the customers who frequently visit company’s stores in different locations. By conducting this particular research, the company can easily recognise its business along with operational development areas which would support them to compete with its major competitors. Moreover, the marketing research would also assist the company to develop its organisational culture by a significant level (Zwiebach, 2012). Moreover, the other major implementation plan of Trader Joe’s can be about forming effective relationship with the suppliers. It is also necessary for the company to choose reliable supplier who can deliver the goods at the right time. At present day context, majority of the customer’s desire online shopping experience as they can easily avail their necessary product without visiting stores. Therefore, in order to meet with this requirement of the customers, the company needs to create its own online shopping website. In relation to implementation plan, it can be stated that the company requires developing its several products through the execution of product promotion techniques in form of advertisements and personal selling in order to create an effective brand image within the mind of the consumers. Moreover, the company might establish training sessions for its new as well as existing employees with the intention of educating those employees regarding how to manage and perform business operational functions effectively within competitive environment. Thus, it can be stated that all these implementation pans might support the company i.e. Trader Joe’s to sustain in this competitive business market as well as to improve its profitability as well as productivity by a greater extent. References CareerBuilder, LLC. (2012). Trader Joe's Company, Inc. Retrieved from http://www.careerbuilder.com/Jobs/Company/C8B8G26XSL55V2JBW7M/Trader-Joe%27s-Company-Inc/ Deutsche Welle. (2012). The American way of Aldi. Retrieved from http://www.dw.de/the-american-way-of-aldi/a-1091106-1 Hartman, A. (2011). Trader Joes: a cultural analysis organizational culture. Retrieved from http://adriennescapstone.files.wordpress.com/2012/01/ahartman-trader-joes-10-12-11.pdf Hearst Communications Inc. (2012). 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