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Business Case Study - Trader Joe's

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1. In what ways does Trader Joe’s demonstrate the importance of each responsibility in the management process- planning, organizing, leading, and controlling? Trader Joe’s demonstrates the importance of planning by selling high quality healthful products at low prices and by creating an enthusiastic feeling through friendly and warm customer service. Employees and managers dress in fancy Hawaiian shirts, welcome them with smiles, hand out stickers to children and joyfully give refund to customers when they are not satisfied with their purchase. Their products include cheese, wine, ready-to-prepare foods, frozen items, produce, and ethnic choices, of which 75 percent carry the TJ label (Mallinger, M., & Rossy, G., n.d.). Most of these mentioned products are known to be sold at low prices compared to Trader Joe’s competitors such as Whole Foods and Bristol Farms. In addition to that, they value the organizing process through their simple approach of searching for tasty and unusual foods, contracting directly with the manufacturers, labeling them with catchy brand names and by maintaining a small stock of each product. Their leadership skills are also evident through hiring well-rounded employees who can handle a multitude of responsibilities including, cashier, stocker, customer interface, and are evaluated on a quarterly basis (Mallinger, M., & Rossy, G., n.d.) and who have friendly, responsible and knowledgeable characteristics. Their employees earn more than those who worked for their competitors. They also influence employees to taste and learn about the product so that they can engage the customers to share what they have experienced. To measure performance and take corrective performance, controlling is a necessary process after planning, organizing and leading. Their ability of controlling is apparent through their “one in, one out policy” wherein they listen to their customers’ feedback about the products and then they get rid of products that are disliked and are sold poorly and replace them with new ones in order to avoid rising costs. 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? One of the biggest risks is the possibility of loss communication or none at all since the owner is from Germany which is quite far from America. For any type of communication, the personal one is the most important of them all. The owner has to have contact w

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