NORDSTROM “Here to provide outstanding service every day, one customer at a time.” WENDOSEN SEIFE MSc in Fashion Technology Ethiopian Institute of Textile and Fashion Technology Bahir Dar University November 10, 2018

Company Background  Founded in Seattle, Washington in 1901  Originally created as a shoe store, it has since expanded to:  -Clothing -Accessories  -Jewelry -Shoes  -Cosmetics -Kids  Currently: 284 Stores in 37 States Roughly 60,000 Employees 71.1% Women

John Nordstrom  Founder of Nordstrom, INC.  Established values system  Exceptional Service  Quality  Freedom  Family

Blake Nordstrom  Represents 4th generation Nordstrom family member to run Seattle based  store chain  Runs company with the foundational values  Expanded technology use for inventory statistics  President since August 2000

 Focused on uniting Management and Employees  Management runs on “inverted pyramid” style  Overall friendly workplace according to employees*  Financial compensation opportunities Hourly Salary Cash Call Benefit Packages Workplace Environment

Encouragement  Opportunity to promote from within the company  Awards and Development Programs for the employees All Star Award John W. Nordstrom Award New Manager Development  Focuses on Freedom and Family  Encourages employees to use intuition and good judgment  Employees are treated as family  Relatable environment to consumers

Organization Mission  is, “to provide outstanding service every day, one customer at a time” (Rosecrans, 2014).

Generic Strategy is to be the best in customer service when it comes to fashion retailers in the market. This is to be accomplished by providing the best selection, quality, value and service (Nordstrom, Inc., 2015). To accomplish this they have provided their customers with a wide variety of clothing, shoes, and accessories for women, men and children. They strive to not only be on the cutting edge of fashion but want their customers to possess style (Nordstrom, 2015). One key element to this is providing great quality along with their variety so their customers can rely their brand.

Services provided Brick and mortar and Online retail of men’s clothing, women’s clothing, children’s clothing, shoes, beauty products, accessories, home décor, bedding and home accessories.

Organizational Structure, Culture, and Leadership: “Use good judgment in all situations” Inverted organizational pyramid – Customers on top and executive team on bottom. Employee Characteristics – Entrepreneurial spirit, persistence, passion for business and fashion, create and maintain strong relationships. Company Values Ethics, Social Responsibility, Community giving, environment and human rights (The CareerBliss Team, 2012).

Advertising and promotion effectiveness Nordstrom does not have a prominent advertising and promotional strategy as far as traditional promotion channels (i.e. TV and radio). Much of their advertising is accomplished through “internet, magazines, store events and other media” (Nordstrom, Inc., 2014). They do, however, create and are known for their outstanding customer service and customer oriented approach when it comes to making their customers happy and increasing the amount of return customers by doing so.

Quality policy Nordstrom needs to focus on advertising quality products with excellent Customer service.

Quality management maintaining high- standard products and services that meet or exceed customer expectations. Good quality management systems require strong checks and balances systems, where quality is constantly being monitored, fixed, and improved. Nordstrom has the options of either placing responsibility solely on one individual/team of employees or making quality everyone’s responsibility through Total Quality Management.

Conti… At Nordstrom, vendors/suppliers are held accountable for physical product quality (under specified supplier manual standards) and employees contribute value by providing the customer with the best shopping experience possible. Especially with the increasing popularity of dotcom businesses, web teams and retailers have a growing influence on quality of services and products provided. Since product delivery plays a central role in online shopping, logistics managers must make certain that products are packaged and shipped in a satisfactory manner. Employees involved in such services are highly responsible for guaranteeing the customer a good “in- home shopping experience”.

Conti… customers determine the success of the company. Thus, Nordstrom strategized a quality management system that would prioritize the customer. Customer satisfaction surveys are available in retail stores, allowing for Nordstrom to receive direct feedback from customers in regards to how they are doing as a company. Customers are also encouraged to or call Nordstrom customer service departments or the store manager to inform them of positive or negative in - store experiences.

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