Management Issue in Zappos

Running head: MANAGEMENT ISSUE IN ZAPPOS
Management Issue in Zappos
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MANAGEMENT ISSUE IN ZAPPOS1
Executive Summary
The primary purpose of this report is to elaborate on the company background of Zappos and
the holacracy structure prevalent in Zappos. The report also discusses about the inefficacy of
the holacracy system within Zappos and the recommendations for the future of the
organization.

MANAGEMENT ISSUE IN ZAPPOS2
Table of Contents
Introduction................................................................................................................................3
Organizational Background and Holacracy Structure................................................................3
Outcome of implementation of Holacracy in Zappos................................................................5
Recommendations for future of Zappos.....................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10

MANAGEMENT ISSUE IN ZAPPOS3
Introduction
Management refers to administration and the activities that helps in setting strategy
within an organization. It helps in co-ordination of efforts of employees that helps in
accomplishing the objectives by the utilisation of resources. It makes use of various kinds of
resources that includes the financial, technological along with the human resources. It helps
in organizing and forecasting the major processes in an organization. The aspect of
management helps in the identification of mission along with the objective of an
organization. Zappos is the name of online shoe along with the clothing retailer that is based
within Las Vegas (Zappos.com. ,2019). Zappos wants to provide the best service to the
customers that can help in increasing the popularity of the retail store within the market. This
report discusses about the contemporary issues that are faced by the managers in various
levels of the organization in Zappos. This report deals with the holacracy structure prevalent
in Zappos and its effect on the organization. The report also states the recommendations that
can help the company in dealing with the issue in the future.
Organizational Background and Holacracy Structure
The company Zappos was founded in the year 1999 by that of Nick Swinmurn who
was inspired on account of the fact that he could not find the pair of the brown Airwalks in
the local mall. Swinmurn was instrumental in approaching Tony Hsieh along with Alfred Lin
so that he could sell the shoes in the online platform. Initially Hsieh was sceptical and he
deleted the voice mail of Swinmurn. Swinmurn mentioned the fact that the footwear within
US has become a 40 billion dollar market. It has been found that 5 % is sold with the help of
the paper mail order catalogues. Hsieh along with Lin wanted to invest around $ 2 million by
taking recourse to the investment firm called Venture Frogs (Time.com., 2019). In the month
of July in the year 1999, name of the company was changed from that of Shoesite to that of
Zappos. In the year 2000, Venture Capital was instrumental in investing capital into the