Business Strategy and Organizational Culture

BUSINESS STRATEGY
AND ORGANIZATIONAL
CULTURE

Zappos.com is an online retail based organization
that has been able to develop its position in the
industry with the help unique culture and work
environment. The analysis will be mainly based on
the effects that the culture of Zappos.com has on
the organizational operations (Hamilton &
Webster, 2018).
INTRODUCTION

ORGANIZATIONAL CULTURE OF ZAPPOS.COM
The major reasons related to Holacracy that has been implemented in
the organizational culture are based on the ways by which Zappos.com
can operate like a city rather than like a bureaucratic organization. The
CEO of the organization, Tony Hsieh had intended to implement the
Holacracy based culture in the first three years of the operations of
Zappos.com. The division of roles is mainly based on proper allotment
of responsibilities to the employees. Self-management has been
implemented effectively in order to improve the organizational
operations in an effective way. The increased responsibilities of
employees have been considered to be a major reason for
implementation of this structure (Husted, Allen & Kock, 2015).

EFFECT OF NEW ORGANIZATIONAL CULTURE
The implementation of Holacracy in Zappos.com had led to the changes that
were made in the job roles of many employees as well as managers. The self-
management related activities that were a part of the new organizational culture
of Zappos.com were not taken in a positive manner by many employees. Tony
had sent a mail to the employees for providing information based on the changes
that were being implemented. However, some of the employees did not take this
in a positive manner and 14% of the members of the organization had departed
(Ji-fan Ren et al., 2017).