Tony Hsieh at Zappos: Structure Culture and Change
Question 1 (LO1) (5.0 Marks Total) 
Read Case Study 1 – ‘Tony Hsieh at Zappos: Structure, Culture and Change’ (Appendix A). You will then present your answers to both Q1(a) and Q1(b) as part of your individual presentation.
(a) Evaluate the reasons why Zappos strategically adopted holacracy as its preferred organisational culture paradigm? (2.5 Marks for presenting evaluation = 2.5 Marks)
Tony explained that Zappos adopted holacracy because they needed the company to function more like a city as opposed to a top-down bureaucratic organisation. According to him, when cities double in size, they become more productive, unlike companies which if they double their productivity declines. The culture of holacracy boosts employee productivity and innovation. Zappos’ rationale for holacracy was increased productivity and innovation, which would ensure the company is still thriving even when expanding. However, productivity and innovation might not be assured given that the employees’ freedom would come at a cost. Some employees may be dissatisfied with the radical approach, and if they choose to stay, the organisation would lose much in terms of productivity.
(b) Evaluate how successful Zappos was by strategically changing their organisational culture to a holacracy in terms of its impact on their operational performance? (Approx. 100 Words, 2.5 Marks for evaluation = 2.5 Marks)
The culture change at Zappos has had much impact on the company’s operational performance. The company faced a risk of not finishing the “Supercloud” project on time. There was also a need to replace a section of the employees (14 per cent). This implies that operations at the company are strained. The hiring process to replace the employees who left and proper training suggest that the company would still have to lag in the completion of the continuing projects. Even though Tony still feels that the company is not failing, the change has had some negative implications on the company’s performance. The freedom attached with self-management comes along with a huge responsibility which needs to be adopted at Zappos to ensure that all projects are completed on time.
Question 2 (LO2) (5.0 Marks Total)
Read Case Study 1 – ‘Tony Hsieh at Zappos: Structure, Culture and Change’ (Appendix A). You will then
present your answers to both Q2(a) and Q2(b) as part of your individual presentation.
(a) Critique, what generic business-level strategy Zappos is pursuing? Does this strategy give it an advantage
over its rivals in the online shoe and clothing retail market? If so, how? (2.5 Marks for presenting critique = 2.5 Marks)
(b) In order to successfully implement its business level strategy; critique what Zappos needs to do at the
functional level? Is Zappos currently doing these things? (2.5 Marks for presenting critique = 2.5 Marks)Question 3 (LO3) (5.0 Marks Total)
Read Case Study 2 – ‘Lean Production at Virginia Mason Hospital’ (Appendix B). You will then present your answers to both Q3(a) and Q3(b) as part of your individual presentation.
a) Lean production originally developed at a manufacturing organisation, Toyota, is being applied in Case Study 2 at a hospital. Evaluate what this tells you about strategically adopting a lean production philosophy for managing operational performance improvements? (2.5 Marks for presenting evaluation = 2.5 Marks)
b) Evaluate what you perceive were the keys to the apparently successful strategic implementation of lean
production techniques to improving operational management performance at Virginia Mason Hospital? (2.5 Marks for presenting evaluation = 2.5 Marks)
Question 4 (LO4) (15.0 Marks Total)
Q4a and Q4b are designed to provide learners with practical experience in analysing problems using appropriate knowledge. Microsoft Excel® includes a tool called Solver that uses techniques from operational management research to find optimal solutions for various kinds of problems. You will Solver for Q4(a) only. In order to complete the Q4(a) and Q4(b) activities you will need access to Microsoft Excel®. This software has been made freely available to all Aspire2 International students learning DAM762 via Microsoft’s Imagine Academy (https://www.microsoft.com/en-nz/education/imagine-academy/default.aspx). Your course tutor will provide you with instructions of how to obtain, download and install Microsoft Excel®. Those activities are not part of this assessment and no marks will be awarded for undertaking these activities. Note that only students activity files completed in Microsoft Excel® will be accepted for assessment. Any work undertaken in other spreadsheet platforms, software or applications; Google Docs, Libre Office, Open Office etc. will not be accepted for assessment by your DAM762 course tutor.You are expected to work through Q4(a) and Q4(b) in your own time, using your own computer resources. If you have any questions or problems with Microsoft Excel® or in completing the assignment, please ensure you ask your DAM762 course tutor for assistance.