Nordstrom: Focusing on a Culture of Service

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All the employees at Nordstrom were empowered to make their own decisions, and were given the authority to implement them. They were encouraged to behave like entrepreneurs running their own businesses. They were free to take decisions to provide the best service to the customers and create satisfied customers. They could take the initiative and act on it to add value to the customers. The employees were never criticized for providing service to the customers. It was not necessary for the sales associates to take the permission of their superiors to make a decision that was in favor of the customers...

All the employees including sales associates, buyers, and managers set daily, monthly, and yearly goals for themselves. All the employees worked toward meeting their own goals, along with the goals of the department, store, and region. They strove to surpass their previous year’s achievements. If any department fell behind in achieving its daily target, the next day’s target was increased. At the beginning of each work shift, the employees were reminded of their goals. The managers also constantly monitored the employees’ goals and their achievements...

With the advent of new technologies like digital commerce, the concept of customer service had undergone a sea change. But Nordstrom used the technologies to serve the customers better. However, the company experienced initial hitches when it started selling the merchandise online in 1999. At that time, the prices of merchandise available in the physical store and online were different, which confused the customers. Nordstrom then worked on the website and created a seamless shopping experience for the customers. In 2002, Nordstrom introduced a perpetual inventory system through which sales associates could find sizes, colors, and styles of merchandise that was available at other outlets of Nordstrom. Later on, further improvements were made and the online inventory was combined with instore inventory. This enabled the customers to access any item that was available with Nordstrom at any of its stores ...

Exhibit I: Consolidated Statements of Earnings
Exhibit II: Nordstrom - Employee Handbook

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