Trader Joe Case Study


Trader Joe’s started out as a small convenient store in 1958. The owner, Trader Joe, decided to change the brand and make the store larger. The case study discusses how to address issues when emotions, job satisfaction, and attitudes of others are involved in decision making. The purpose of this paper is to discuss how Trader Joe’s is able to keep employee job satisfaction and customer satisfaction at a high rate. Throughout this paper, I will discuss the different tools the company uses to promote customer and job satisfaction.

Examine the approach Trader Joes uses to promote a positive work environment for its employees. Determine in which three ways Trader Joes is able to increase job satisfaction and performance. Trader Joes promotes a positive work environment by allowing their employees to know and understand their products. This is encouraging them to taste products, and be able to discuss with the customers as they are making the sale if a question should arise. Employees are able to educate the customers on the products they are considering to purchase. As a shopper, it is very irritating to ask an employee for advice or assistance and they tell you they are unable to assist or you get a simple I don’t know. Employees are able to provide customers with an idea of what certain products taste like.

Another way to keep the job satisfaction rate high is great benefits. Trader Joes offers employees a ten percent discount, medical, dental, vision, paid retirement, and company paid vacation. Trader Joes chooses to keep their financials a secret. Studies show that Trader Joes offers managers a six figure salary and this definitely increases job satisfaction. Managers make at least 120K as employees of Trader Joes along with the hefty benefits package. Since most of the managers at the company know the system inside and out, they get paid a hefty salary for their knowledge of the business. Determine How Trader Joe’s uses the management process (planning, organizing, leading and controlling) to develop employees. Trader Joes only promotes within the company, which is very beneficial because the managers are able to develop their employees because they are very knowledgeable about the business.

I think it is very important for managers to know the business in order to be able to help others with their career. Organizations usually bring in management from outside the company which makes it hard for employees to learn from management. He has also created a training program called Trader Joes University for employees. The program prepares employees for future leadership. It teaches them the skills needed to run stores, company expectations and customer expectations. It also teaches managers how to give their employees a customer focused attitude. Suggest two (2) ways that leaders can effectively manage relationships in general by using the four (4)

EI competencies.

Emotional Intelligence is the ability to understand and manage your own emotions and those of the people around you. To be a successful leader you must inquire the four EI competencies. Those competencies include; Self-awareness, social awareness, self-management, and relationship management.

One way leaders can manage their relationships using the EI competencies is to learn how to manage the effect they have on others. Leaders need to be aware of what their employees and others are feeling about them and the reasoning behind their feelings. Once the leader has determined the effect they have on others they may then choose the best way to interact and will achieve the best outcome.

Another way leaders may use the four EI competencies for relationship management is by inspiring and motivating others. Leaders should get to know the desires and values of others. By learning the values of others they are able to utilize ones skills and strengths within the organization. Motivating others also includes creating a culture of learning for employees. Leaders should always continue to build upon the skills of their employees. Inspiring others to contribute to the vision of the organization is also motivation. I work in a very corporate organization and my manager does a great job and letting me know my opinion matters. Feeling valuable boost employees confidence and encourages them to work harder. Recommend at least three (3) leadership practices that Trader Joe’s could implement in order to increase the competitive edge of the organization. Provide a rationale for your response.

Trader Joes is missing one very important technique for the business. Social media is a very popular marketing tool and the company is not utilizing it. There should definitely be a marketing team in the company, starting with a Chief Marketing Officer (CMO). There is a Facebook page for the company but it is not being used properly. The page should display the different products, sale items, and also new products. They should also be utilizing Twitter and Instagram. Instagram is a great way to promote their different products by posting different pictures. Twitter is a great marketing tool as a well. Twitter can be used to describe the different products and also upload videos of their food so customers may actually get a visual of the products.

Since the company specializes in selling natural products they should consider creating their own line of organic meats and other products. The company has built a brand for themselves where their customers trust them to sell quality products. Most companies do have their own branded products in their store but how many of those products are organic. This would be a great opportunity for Trader Joes to enhance the company’s value and also sell their organic product at a higher rate than other products in the stores.

Leaders should also challenge the existing processes and look for potential gaps in the processes they use today. Challenging processes involves requires leaders to look for innovative ways to improve the organization. For example, Trader Joes shows their employees appreciation by providing them with certain benefits. Customers should also feel appreciated. It would be a good idea to offer different incentives for life long customers. Discount cards and sample products to take home would be great incentives for customer and would increase customer satisfaction.

Byron Stock – Emotional Intelligence – Leadership Management …. (2007, January 1). . Retrieved July 21, 2014, from Connelly, M. (n.d.). Master relationship management to enhance your
emotional intelligence.. Master relationship management to enhance your emotional intelligence.. Retrieved July 21, 2014, from Emotional Intelligence in Leadership: Learning How to Be More Aware. (n.d.). Emotional Intelligence in Leadership. Retrieved July 21, 2014, from Step into Leadership. (n.d.). Managers > Motivating & Inspiring. Retrieved July 21, 2014, from Trader Joe’s. (2014, January 1). Trader Joe’s. Retrieved July 21, 2014, from

What do you think?

Written by admin


Leave a Reply

Your email address will not be published. Required fields are marked *



Facebook and Harmful Effects: Internet Addiction

Data mining techniques