Trader Joe's: Key Management Principles and Challenges Report

This report delves into the management principles employed by Trader Joe's, examining key theories and the challenges faced by its management. It explores topics such as key management theories, issues faced by managers, and recommendations for addressing these challenges. The report also investigates effective teamwork in diverse environments, the importance of responsibility in management, and the impact of international ownership and global events on performance. Through an analysis of Trader Joe's operations, the report offers insights into strategies for maintaining a competitive edge, managing employee and customer relations, and adapting to market changes. The report concludes with a summary of the findings and references relevant literature, providing a comprehensive overview of the subject matter.

MANAGEMENT
PRINCIPLES

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Key management theories............................................................................................................3
Issues faced by manager..............................................................................................................4
Recommendation for the issues and justification........................................................................4
Work effectively with others in diverse.......................................................................................5
Importance of responsibility in management process.................................................................5
International ownership and global events pose on performance effectiveness..........................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
For any business to be able to operate in the market effectively there are a lot of decisions
and planning which is required by any business. Planning, organizing, managing, etc are all a
part of the management which has to be done effectively in order to have a better operations and
performance in the market. Trader Joe’s was founded in 1958 and is now having its headquarters
in California, US. There are 505 stores as of 2020 and the products company sells are private
labeled products and specialty products in the stores. The report consists of the theories and
challenges a management has to face to make any business be able to operate effectively in the
market.
MAIN BODY
Key management theories
There are a lot of key management theories which are present in the market which have
to be focused upon by the management so that they can have a successful business in the market.
The management has to think for the profitability of the organization so that there is going to be
a better functioning (Slack and Brandon-Jones, 2018). There are a lot of investments which a
business makes for entering a market and that has to be recovered and especially in the
technological aspect there is a requirement of a lot of investment which will have to be done.
There have to be decisions which will have to be taken to improve the productivity so that the
increase in demands by the customers can be met. The labour of the organization will have to be
monitored so that there is going to be a good functioning of the organization which is going to be
very helpful. There has to be democratic theory which has to be used in the organization so that
there has to be good functioning so that there is going to be better functioning. There has to be a
good relationship which needs to be maintained with the employees and the customers so that
there is going to be a better performance for a longer run in the market.

Issues faced by manager
The managers know the importance of change and what changes have to be made in the
organization so that the business can grow in the market but for that to take place there has to be
an effective workforce. This is the major issue which the management faces in the market and
that has to be overcome very quickly so that there is going to be better functioning. The ethical
and social responsibilities of the manager has to be present so that there is going to be better
performance in the organization (Raj, Walters and Rashid, 2017). The employees and customers
have to find the organization comfortable only then they will get loyal to the organization which
has to be monitored by the organization. There are conflicts which are going to rise in an
organization between employees which will also have to be solved by the manager so that there
is no further damage to the organization. The employees have to be given a healthy and safe
environment to work within therefore it is very important for the organization to be able to
provide the best for them so that the demands and productivity of the organization can be
maintained. Strategies also in the market are many and the management will have to pick up the
best for the organization so that there is going to be a better functioning and performance of the
organization in the bazaar.
Recommendation for the issues and justification
From the issues it can be concluded that there are a lot of changes which trader Joe’s also
made in the organization for management purpose is that they did not have any extra or more
options for the customers because that would make the customers more confused and limit the
sales. There have to be positive solutions which have to be taken out of all the situations which
rise in an organization like the competitive market is still going to be present but the organization
will have to find ways to make the customers loyal to the organization so that the sales of the
business is going to be present (Machado and et.al., 2017). The situations are different at each
level but the management will have to have the right knowledge and skill so that they can deal
with them effectively which is going to be very helpful for a long run. The behaviour of the
employees and customers have to be understood by the management so that the changes also
which are taking place in respect of technology or products the company will be able to cope up
with them effectively and the production will not get harmed.

Work effectively with others in diverse
There has to be good training of the employees according to their culture and the best of
environment has to be provided to the employees so that there is going to be a better
performance level of the company. There are a lot of changes which come in the decision
making and strategies which are being used in the company so that the company can grow in the
market effectively and easily. There has to be good communication of the organization with the
customers so that they can take feedbacks for the products and services which the organizations
can improve upon which is going to make the customers get the best of products and the
company will be able to profit from that factor (Gardner and Collinge, 2016). Awareness of the
changes have to be given not just to the employees but all the customers so that they are aware of
the changes which are taking place in the company which is going to be very effective for a long
run.
Importance of responsibility in management process
There are already a lot of competitors in a retail industry and unless Trader Joe’s will not
have a strong plan for them then they will not be able to control and lead in the market. There
has to be a well organized management in the company so that there are going to be some
important decisions and measures which have to be taken because of the increase in competition.
Trader Joe’s has always been involved having a strong strategy for themselves and a different
strategy as well so that they can make the best from that factor and the organization will be able
to profit from it. The company is expanding themselves rapidly with lesser products which the
other retailers are serving (Hess, Mesléard and Buisson, 2019). The competitors are selling
25,000 or 45,000 products but Trader Joe’s is selling only 4,000 products but still they have
more profits than the competitors. Employees also have to be controlled so that the products and
services of the company are going to be effective for a long run and the company will be able to
maintain their reputation in the market. The has to be clarity in the work which is being provided
by the organization so that there is going to be a higher performance level of the organization
and the company will be able to achieve their targets and goals in the market.

International ownership and global events pose on performance effectiveness
International ownership is having a lot of challenges and experience is required in this
field as well so that the company does not fail in this aspect (Shen, 2016). There are a lot of
decisions which the company will have to take but according to the external factors which are
going to affect the pricing and performance of the brand in a new market. Though there are not a
lot of troubles but the culture and needs of the customers have to be understood otherwise it is a
huge risk which the businesses take to expand themselves in new market. There is going to be no
experience and a business that is having its base in Germany and operating in America is going
to have a problem understanding the customers and their needs because the company will have to
create a strong portfolio for themselves in order to be able to have a better operations (Gordon,
2019). The business should always be started on a small scale when it is international ownership
so that there is not going to be a lot of investment which is going to be required by the
organization for a long run.
CONCLUSION
From the above report it can be concluded that there is a need for the management to
have a good skill and knowledge of the market so that the further decisions for the organization
can be taken. There are a lot of measures which companies have to take so that they can have
more customers which would result in having higher profitability in the organization. To attract
customers which Trader Joe’s did in no time needs a proper planning and measures have to be
analysed and then taken so that there is going to be a great profit for the organization.

REFERENCES
Books and Journals
Gardner, M.J. and Collinge, C., 2016. Management principles of osteoporotic
fractures. Injury. 47. pp.S33-S35.
Gordon, J.E., 2019. Geoconservation principles and protected area management. International
Journal of Geoheritage and Parks. 7(4). pp.199-210.
Hess, M.C., Mesléard, F. and Buisson, E., 2019. Priority effects: Emerging principles for
invasive plant species management. Ecological Engineering. 127. pp.48-57.
Machado, C.G and et.al., 2017. Framing maturity based on sustainable operations management
principles. International Journal of Production Economics. 190. pp.3-21.
Raj, R., Walters, P. and Rashid, T., 2017. Events management: principles and practice. Sage.
Shen, J., 2016. Principles and applications of multilevel modeling in human resource
management research. Human Resource Management. 55(6). pp.951-965.
Slack, N. and Brandon-Jones, A., 2018. Operations and process management: principles and
practice for strategic impact. Pearson UK.