Course: PRINCIPLES of MANAGEMENT s1

Title: Zifty.com

Length: 9:32

Synopsis: Zifty.com is a pick-up and delivery service in Atlanta, Georgia. Customers place orders via the Zifty.com website for food from local restaurants and for DVDs, personal care products, medicines, etc., stored in the company warehouse. The video features company managers and a delivery driver who discuss Zifty’s management and communication styles.

Classroom Application: Instructors will find this video helpful when discussing the roles of management in an organization. The managers interviewed at Zifty.com do not categorize their duties into interpersonal roles, informational roles, and decisional roles, but it may be interesting to have students perform that task. Discussion Question 1 applies here.

This video is also useful when discussing organizational structure and design. In terms of span of control, Zifty.com is a flat organization. The company is small in size, employs few, and is informal. Discussion Question 2 could be used here.

Finally, the video provides an excellent discussion of organizational communication. Zifty.com has a very informal communication system, which encourages internal information to flow upward as well as downward. The company also demonstrates a program of excellent customer service based on frequent communication with its customer base. Discussion Questions 2, 3, and 4 are most useful here.

Discussion Questions:

1. Describe the many roles of Zifty.com managers as discussed by Sarah Bellamy and Dylan Kight in the video.

Answer: According to Sarah Bellamy and Dylan Kight, managers at Zifty.com perform many roles. Managers provide customer service, follow up with online customers to ensure quality, and work to ensure good relationships with the local restaurants. They also set driver routes, perform general administrative duties, and enter and track orders. Finally, Zifty.com managers monitor inventory and operate the cash bank.

2. How do employees at Zifty.com communicate with each other? Is communication formal or informal? Does information flow only from the top down—from owners to managers to drivers—or does it flow upward as well?

Answer: Employees at Zifty.com communicate with each other via two-way radios (“walkies”), phone, and e-mail. Their communication system can be classified as informal, probably because the company is small and the company structure is flat. Zifty.com has an open communication policy, so information flows both from the top down and from the bottom up. Owners and managers at Zifty.com place tremendous importance on feedback from the delivery drivers since they are considered the “face of the company” and deal directly with the customers.

3. Give some examples of how Zifty.com has adapted to customer requests.

Answer: Zifty.com has adapted to customer requests by making changes in product offerings and adding new restaurants to its mix. They also have made changes in their fee structure as a result of customer suggestions. They now offer a monthly membership wherein customers pay a monthly fee instead of fees for individual deliveries. Additionally, they created a customer rewards program, much like those at other retail companies in the area. Managers believe that each of these customer-requested adaptations has been successful and has increased business.

4. What is Zifty.com’s outlook for growth and for the future?

Answer: Managers at Zifty.com believe that they still have growth potential in the Atlanta market. They feel that people in that area are willing to pay a premium price for delivery because, after enduring the long commute home, customers prefer having items delivered instead of venturing out again themselves. Managers also believe that the company’s excellent order tracking system and their relationships with local newspapers allow them to communicate effectively and directly with their customer base.

Quiz:

1. What do managers at Zifty.com feel is the key to staying organized?

a. communication

b. administration

c. customer service

d. inventory management

Answer: a

Explanation: Managers at Zifty.com believe that communication is their key to organization. They rely most heavily on e-mail to track delivery schedules and customer satisfaction.

2. Who is considered the “face of the company” at Zifty.com, because they have the most interaction with customers?

a. the owners

b. the managers

c. the warehouse packers

d. the delivery drivers

Answer: d

Explanation: Zifty.com believes communication with their delivery drivers is important because they are viewed as the “face of the company.” The name references the fact that the drivers have the most face time with Zifty’s customer base and can most accurately report on customer satisfaction.

3. Which of the following is NOT a recommendation of Zifty.com managers?

a. Set clear expectations for behaviors and roles.

b. Follow up on issues and problems.

c. Allow employees to see the frustration negative behaviors can cause.

d. Focus on correcting negative behaviors so that future behavior is acceptable.

Answer: c

Explanation: Sarah Bellamy says that conveying frustration to employees for negative behaviors is counterproductive and often does not end with the problem being resolved.

4. Why did Zifty.com create a monthly membership program?

a. An increase in individual delivery fees caused a drop in orders.

b. Customers requested the program.

c. A delivery driver suggested the program.

d. Collecting individual fees proved too time consuming.

Answer: b

Explanation: Zifty.com adapted their fee structure to accommodate requests from customers. In addition to monthly memberships, Zifty.com added a customer rewards program.

5. What makes Zifty.com unique?

a. Providing delivery service in the Atlanta area.

b. Guaranteeing delivery in about an hour’s time.

c. Offering an online ordering system.

d. Offering delivery of both local restaurant fare and warehoused convenience items.

Answer: d

Explanation: While many restaurants and retail stores offer delivery services, Zifty.com is unique in that they offer to deliver both types of goods via a one-stop shopping website. Customers can order food from their favorite Atlanta-area restaurant along with a DVD or a supply of headache medicine.