Trader Joes Case Study

1945 Words 8 Pages
Register to read the introduction… In just such a move, Trader Joe’s phased out singleingredient products (such as spinach and garlic) from China. “Our customers have voiced their concerns about products from this region and we have listened,” the company said in a statement, noting that items would be replaced with “products from other regions until our customers feel as confident as we do about the quality and safety of Chinese products.”19
Conversely, discontinued items may be brought back if customers are vocal enough, making Trader Joe’s the model of an open system. “We feel really close to our customers,” says Audrey O’Connell, vice president of marketing for Trader Joe’s East.
“When we want to know what’s on their minds, we don’t need to put them in a sterile room with a swinging bulb. We like to think of Trader Joe’s as an economic food democracy.”20 In return, customers keep talking, and they recruit new converts. Word-ofmouth advertising has lowered the corporation’s advertising budget to approximately 0.2% of sales, a fraction of the 4% spent by
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In what ways does Trader Joe’s demonstrate the importance of each responsibility in the management process—planning, organizing, leading, and controlling?
2. Trader Joe’s is owned by a German company operating in America. What are the biggest risks that international ownership and global events pose for Trader Joe’s performance effectiveness and performance efficiency?

Problem Solving
At the age of 22 and newly graduated from college, Hazel has just accepted a job with Trader Joe’s as a shift leader.
She’ll be supervising 4 team members who fill part-time jobs in the produce section. Given Trader Joe’s casual and nontraditional work environment, what should she do and what should she avoid doing in the first few days of work to establish herself as a skillful manager of this team?

Further Research
Study news reports to find more information on Trader
Joe’s management and organization practices. Look for comparisons with its competitors and try to identify whether or not Trader Joe’s has the right management approach and business model for continued success. Are there any internal weaknesses or external competitors or industry forces that might cause future problems?

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