The Challenge Case “Zappos Doesn’t Sell Shoes—It ‘Delivers WOW’ and its related Challenge Case Summary were written to help you better understand the management concepts contained in this chapter. Answer the following discussion questions about the Challenge Case to better understand how concepts relating to organization culture be applied in a company such as Zappos.

Data from The Challenge Case “Zappos Doesn’t Sell Shoes—It ‘Delivers WOW’

Given the multitude of ways in which consumers can buy shoes, how did Zappos grow from a struggling start-up into a billion-dollar company in less than a decade? Managers took on the goal of extraordinary service and made it the cornerstone of an entire way of  doing business—in effect, a corporate culture. The manager credited with making Zappos an icon of culture is CEO Tony Hsieh. Hsieh started as an investor in Zappos. As the company grew, founder Nick Swinmurn hired Hsieh as chief executive. The new CEO was determined to avoid repeating his earlier experience of building a company he did not enjoy working for. Instead, Hsieh preaches and models his vision of “delivering WOW”—going so far beyond customers’ expectations that they exclaim in surprise. Hsieh uses the same kind of approach with employees. He placed delivering WOW at the head of 10 corporate values, which also include “embrace and drive change,” “create fun and a little weirdness,” and “pursue growth and learning.” In pursuit of this last value, the company set up a Zappos Family Library, from which employees can borrow books on ideas for strengthening the company’s culture. Hsieh also hired David Vik to serve as a “coach” to develop talent and reinforce  the culture. Vik set up a throne in his office, and whenever an employee visits, he or she sits in the throne. This is Vik’s way of indicating that he sees employees’ potential for greatness. The throne is only one of many cultural symbols. Support for “fun and a little weirdness” is as diverse as a petting zoo, employee karaoke, and doughnut-eating contests. To build relationships and show that everyone is valued, a Face Game greets employees whenever they log into the computer system. The game presents a photo of an employee’s face and asks for the person’s name. It responds to whatever name is entered by providing information about that employee.

1. When Tony Hsieh came on board at Zappos, what first step would you have advised him to take to establish the customer-focused organization culture? Why is this the first step you would have recommended?
2. Based on the information provided, including Hsieh’s vision for Zappos, which type of culture—a clan, market, hierarchy, or adhocracy culture—is the most appropriate for the company? Why?
3. Discuss how you would ensure that Zappos’s organization culture remains a high-performance culture.