zappos hbr case study

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Zappos.com 2009: Clothing, Customer Service, and Company Culture

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Why Are So Many Zappos Employees Leaving?

Last year, the company’s turnover rate was 30 percent.

The online shoe retailer Zappos has always stood out for its unconventional human-resources philosophy. For nearly a decade the company has been making something it calls “The Offer” to new hires—an opportunity to take a $2,000 stipend instead of starting the job. The company prides itself on the attentiveness of its customer service and the devotion of its workers, and “The Offer” is an attempt to weed out those who aren’t thrilled about the work ahead.

But now, one of the company’s unusual approaches has led to what’s being called a Zappos exodus , as 18 percent of the company's staff have taken buyouts in the last 10 months. That takes Zappos’ turnover rate for 2015 to 30 percent, which is 10 percentage points above their typical annual attrition rate.

Why are so many employees leaving? Backtrack to 2013: Tony Hsieh, Zappos’s CEO, started promoting a new management structure called holacracy. It’s a setup that’s supposed to encourage collaboration by eliminating workplace hierarchy—meaning no more titles and no more bosses. The system instead asks workers to track all strategy decisions and their outcomes in a web-based app called Glass Frog. Roger Hodge, writing in The New Republic , called it “a radical experiment … to end the office workplace as we know it.”

But there was a result of holacracy that the company didn’t anticipate (but probably should have): confusion . Self-governing produced a bit of a mess, with some workers telling reporters that they weren’t sure how to get things done anymore . The New York Times reported last year that those in charge of payroll, for instance, had trouble determining salaries after titles had been banished, and some employees wanted a boss to consult when making important decisions.

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In a statement posted online on Friday, Zappos attributes the widespread departures to a recent buyout—a special version of “The Offer” made after the company began changing its internal structure. The company says that the additional turnover in 2015 “was mostly due to us giving long-time employees the opportunity to pursue their dreams (average severance paid out was about 5.5 months pay when we last analyzed the data).” Additionally, the company seems unbothered by the numbers: “We have always felt like however many people took the offer was the right amount of people to take the offer, because what we really want is a group of Zapponians who are aligned, committed, and excited to push forward the purpose and vision of Zappos.”

Flattening workplace hierarchies has been a management trend for several years, it’s accrued its proponents and detractors. The argument for such a radical break from tradition is that so-called “flat” workplaces are in theory more likely to spark unlikely collaborations, which in turn can lead to creative new initiatives. There is also the undeniable appeal of cost-cutting: Consultants tend to like organizational philosophies that reduce the number of employees necessary.

But while some case studies have shown this system’s effectiveness , it’s far from certain whether it’s a good idea for all companies (particularly large ones). And, as those concerned with management theory have noted , flattening hierarchies runs the risk of taking away employees’ motivation to stay at a company because there’s no ladder to climb.

In fact, recent research seems to indicate that flattening workplace hierarchy is not only much more complicated than it seems, but that people prefer a pecking order. One Stanford study found that egalitarian work structures were disorienting. Workers found hierarchical companies were more predictable, and therefore preferable, because it was easy to figure out who did what and how compensation should be doled out. Another Stanford paper , which looked at why hierarchical structures in the workplace have such staying power, concluded perhaps the obvious: Hierarchies work. They are practical and psychologically comforting .

Hsieh, for his part, seems to understand that holacracy isn’t for everyone. Last year, in a 4,700-word memo (which he acknowledged takes about 30 minutes to read), he told employees that they could either get onboard with holacracy or take three months’ worth of pay and quit. He wrote:

Self-management and self-organization is not for everyone, and not everyone will necessarily want to move forward in the direction of the Best Customers Strategy and the strategy statements that were recently rolled out. Therefore, there will be a special version of “the offer” on a company-wide scale, in which each employee will be offered at least 3 months severance (and up to 3 months of COBRA reimbursement for benefits) if he/she feels that self-management, self-organization, and our Best Customers Strategy and strategy statements as published in Glass Frog are not the right fit.

Which takes us back to the exodus. Over the last 10 months, employees have been taking Hsieh up on this offer. It’s not clear how many of these departures would have come about in the form of layoffs, as their COO Arun Rajan initially told Quartz that many offer-takers were managers, and that the managers (whose status was diminished by holacracy) who hadn’t taken the buyout would have likely been laid off as the company restructured. Contradicting Rajan, Zappos now says that those in traditional managerial roles would not have been laid off, and the managers who wanted to stay would be offered the opportunity to switch roles at the company. Whichever is the case, it’s clear that Zappos is going through a rough transition—one that it anticipated, and one that could make it stronger in the end.

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Tony Hsieh at Zappos: Structure, Culture and Radical Change

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Tony hsieh at zappos: structure, culture and radical change description.

After 18 months of attempting to transition the company to holacracy, Tony Hsieh, Zappos' celebrity CEO, decided it was time to make the change happen. In March 2015, he sent an email to all Zappos employees offering them 3 months' severance pay if they felt that self-management was not for them. One month later, 14% of the workforce had quit, including 20% of the tech department, potentially putting at risk a complex transition to a new online platform mandated by parent company Amazon. The case recounts how Tony Hsieh financed, championed, and ultimately became CEO of online shoe retailer Zappos. A passionate entrepreneur who made millions at a young age, Hsieh was known for his penthouse parties, for what he referred to as his "tribe". He brought the same sense of community to Zappos, which he moved from San Francisco to Las Vegas where employees could "be like family". Despite the company's unabashedly weird culture, it had the lowest employee turnover rate in the industry. Widely admired for its outstanding customer service, Zappos was repeatedly listed among Fortune's "Best Places To Work." When in 2009 Amazon acquired Zappos for $1.2 billion, it promised to preserve its management and culture. But Hsieh's decision to implement holacracy - a form of organizational self-management that replaces job titles and hierarchy with "circles" that employees step in and out of according to their preferences and skills - was less popular than hoped. Hence his "rip the Band-Aid" approach, to ensure that only employees committed to the change remained at the company.

Case Description Tony Hsieh at Zappos: Structure, Culture and Radical Change

Strategic managment tools used in case study analysis of tony hsieh at zappos: structure, culture and radical change, step 1. problem identification in tony hsieh at zappos: structure, culture and radical change case study, step 2. external environment analysis - pestel / pest / step analysis of tony hsieh at zappos: structure, culture and radical change case study, step 3. industry specific / porter five forces analysis of tony hsieh at zappos: structure, culture and radical change case study, step 4. evaluating alternatives / swot analysis of tony hsieh at zappos: structure, culture and radical change case study, step 5. porter value chain analysis / vrio / vrin analysis tony hsieh at zappos: structure, culture and radical change case study, step 6. recommendations tony hsieh at zappos: structure, culture and radical change case study, step 7. basis of recommendations for tony hsieh at zappos: structure, culture and radical change case study, quality & on time delivery.

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Case Analysis of Tony Hsieh at Zappos: Structure, Culture and Radical Change

Tony Hsieh at Zappos: Structure, Culture and Radical Change is a Harvard Business (HBR) Case Study on Organizational Development , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Tony Hsieh at Zappos: Structure, Culture and Radical Change is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Tony Hsieh at Zappos: Structure, Culture and Radical Change case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Tony Hsieh at Zappos: Structure, Culture and Radical Change will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Tony Hsieh at Zappos: Structure, Culture and Radical Change case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Organizational Development, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Tony Hsieh at Zappos: Structure, Culture and Radical Change, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Tony Hsieh at Zappos: Structure, Culture and Radical Change case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Organizational Development Solutions

In the Texas Business School, Tony Hsieh at Zappos: Structure, Culture and Radical Change case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Tony Hsieh at Zappos: Structure, Culture and Radical Change

Step 1 – Problem Identification of Tony Hsieh at Zappos: Structure, Culture and Radical Change - Harvard Business School Case Study

The first step to solve HBR Tony Hsieh at Zappos: Structure, Culture and Radical Change case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Zappos Hsieh is facing right now. Even though the problem statement is essentially – “Organizational Development” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Zappos Hsieh, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Tony Hsieh at Zappos: Structure, Culture and Radical Change. The external environment analysis of Tony Hsieh at Zappos: Structure, Culture and Radical Change will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Tony Hsieh at Zappos: Structure, Culture and Radical Change case study. PESTEL analysis of " Tony Hsieh at Zappos: Structure, Culture and Radical Change" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Tony Hsieh at Zappos: Structure, Culture and Radical Change macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Tony Hsieh at Zappos: Structure, Culture and Radical Change

To do comprehensive PESTEL analysis of case study – Tony Hsieh at Zappos: Structure, Culture and Radical Change , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Tony Hsieh at Zappos: Structure, Culture and Radical Change

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ Tony Hsieh at Zappos: Structure, Culture and Radical Change ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Zappos Hsieh is operating, firms are required to store customer data within the premises of the country. Zappos Hsieh needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Tony Hsieh at Zappos: Structure, Culture and Radical Change has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Zappos Hsieh in case study Tony Hsieh at Zappos: Structure, Culture and Radical Change" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Zappos Hsieh in case study “ Tony Hsieh at Zappos: Structure, Culture and Radical Change ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Zappos Hsieh in case study “ Tony Hsieh at Zappos: Structure, Culture and Radical Change ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Tony Hsieh at Zappos: Structure, Culture and Radical Change ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Zappos Hsieh can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Tony Hsieh at Zappos: Structure, Culture and Radical Change case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Zappos Hsieh needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Tony Hsieh at Zappos: Structure, Culture and Radical Change

Social factors that impact tony hsieh at zappos: structure, culture and radical change, technological factors that impact tony hsieh at zappos: structure, culture and radical change, environmental factors that impact tony hsieh at zappos: structure, culture and radical change, legal factors that impact tony hsieh at zappos: structure, culture and radical change, step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: tony hsieh at zappos: structure, culture and radical change case study solution.

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Zappos.com, inc., and the warehouse decision case study memo, case study recommendation memo assignment.

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Zappos.com, Inc., and the Warehouse Decision Description

Strategy & execution case study | authors :: mike lenox, elliott n. weiss, rebecca goldberg.

Amazon.com had purchased Zappos in 2009 and was making significant investments in warehouse infrastructure. By early summer 2012, Zappos, a dominant player in the crowded online retail apparel and footwear arena must decide whether to retain its warehouse complex in Kentucky, which it had maintained since 2002, or turn over the operations to Amazon. Should Zappos continue to operate as an entity external to its parent company? Or would advancements and changes in the market be disruptive enough to force Zappos to change in order to remain competitive?

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1. first paragraph of zappos.com, inc., and the warehouse decision recommendation memo.

• This paragraph expresses your intent or action that you required after reading the Zappos.com, Inc., and the Warehouse Decision case study (This recommends……).
• Topic overview of the case study (the “what”, not “when” or “how”): costs, funding, etc.
• Ends with the hook: selling idea, the “why” or payoff: this part reveals the author’s point of view. What you intend to do after reading the case and it clearly mention your decision.

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2. Background of Zappos.com, Inc., and the Warehouse Decision case study

• Historical perspective on the problem is provided. Details are elaborated that underline the given problem.
• Highlights - what brought us to this moment, why we are in this position, what brought about the need to make this decision.
• Dimensionalize the importance of the problem to the organization and how it is impacting the organization.
• Constraints – Provide a situational analysis based on case study analysis.
• Keep the background section both factual and concise. It is part of the memo where we provide a brief insight into the problem and define the problem.

Is the background clear, concise, and easy to follow? Does it explain why action is needed now? Does the appropriate sense of urgency come across in the case study?

3. Recommendations for Zappos.com, Inc., and the Warehouse Decision Case Memo

• The details of what, when and how. NO 'why'.
• This section should be very specific (100% clear). It must be actionable (How much will it cost, when, how, who). The reader should be able to read this and know how to carry out this recommendation.
• Some cases will require more than one recommendation. It often happens that the firm will require more than one recommendations as there are numerous unknown in the market place.

Is the recommendation clear and actionable? Does the firm has capability to implement the recommendations or does it needs to hire fresh talent?

4. Basis for the Recommendations

• Here the reader of the case memo will learn WHY each recommendation is the UNIQUE right thing to do.
• 2-3 solid reasons are typical. The reasons should be backed by clear logic, organization’s vision and mission statements, and robust data analysis.
• Orignal recommendation can be backed by few supporting roadmap to actions. In operations cases the Critical Path Method of PERT can be used to illustrate the point.
• Support includes impact on profit, share, and anything else that can affect long-term business goals of the firm.
• Analysis should address applicable quantitative issues such as NPV, break even analysis, pro forma statement of project budget, sensitivity analysis; as well as qualitative issues, such as, technology consistency, architectural conformance, innovation potential, etc.
• Appeals to precedent and anecdotal evidence in absence of data, but only in limited, carefully constrained manner.
• Shows how the recommendation will put the firm at a competitive advantage or is simply acompetitive necessity.
• The goal is to read the basis and conclude the recommendation.
• Is the recommendation an inescapable conclusion of the basis?
• Does the basis for recommendation appropriately consider: 1. Core competencies and consistency with mission? 2. External customers and internal clients? 3. Competitors? 4. Attractiveness – quantitative measures if applicable (e.g., NPV, ROI, break-even, payback)?
• Are all assumptions explicitly stated (e.g., needs, technology trends)?

5. Discussions

• Outline other alternatives not selected and provide brief reasoning for doing so.
• Discuss risks and key assumptions for Zappos.com, Inc., and the Warehouse Decision case memo (use full disclosure, reference options grid) of your recommendation.
• When you give a precise number or range, you must support the basis as well.
• Is the analysis thorough with key alternatives fairly considered using options grid?
• Risks associated with recommendation for Zappos.com, Inc., and the Warehouse Decision are properly addressed given the present capabilities and future expectations?

6. Next Steps for Zappos.com, Inc., and the Warehouse Decision case study memo

• Clearly specify the roadmap of the execution. Provide specific date and action that are required to carry on the next steps.
• Task assignment, objectives, roles and metrics should be mentioned in advance to reduce ambiguity and replication. (what will be done, by whom, and by when)
• Clear follow-up/next steps?
• If appropriate, lay out timeline with key milestones to implement recommendation.

7. Exhibits for Zappos.com, Inc., and the Warehouse Decision case memo

• An Exhibit can be a data chart, map, graph, grid, or simple data table.
• While doing the calculations please mention all the assumptions. The reader won’t able to decipher each of the assumption so make them explicit.
• Exhibits should have Title, sources, footnotes to calculation. The point of the Exhibit should be instantly clear to the reader.
• Exhibits should be cited in the proper order (i.e., do not cite Exhibit 4 first in your Memo and then Exhibit 2).

Checklist for Zappos.com, Inc., and the Warehouse Decision case study memo exhibit

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At EMBA PRO , we provide corporate level professional case study solution. Zappos Customer Loyalty Team case study is a Harvard Business School (HBR) case study written by Scott Carter, Tim Laseter. The Zappos Customer Loyalty Team (referred as “Zappos Shifts” from here on) case study provides evaluation & decision scenario in field of Leadership & Managing People. It also touches upon business topics such as - Value proposition, . Our immersive learning methodology from – case study discussions to simulations tools help MBA and EMBA professionals to - gain new insight, deepen their knowledge of the Leadership & Managing People field, and broaden their skill set.

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Case Description of Zappos Customer Loyalty Team Case Study

Each month the management team at Zappos developed a new calendar based on internal growth forecasts and projected incoming calls. Before the beginning of each month, employees would bid on time slots, and those with the longest history of working at the company got priority in choosing shifts. But not everyone agreed that this was the most appropriate method to allocate daily shifts.

Case Authors : Scott Carter, Tim Laseter

Topic : leadership & managing people, related areas :, what is the case study method how can you use it to write case solution for zappos customer loyalty team case study.

Almost all of the case studies contain well defined situations. MBA and EMBA professional can take advantage of these situations to - apply theoretical framework, recommend new processes, and use quantitative methods to suggest course of action. Awareness of the common situations can help MBA & EMBA professionals read the case study more efficiently, discuss it more effectively among the team members, narrow down the options, and write cogently.

Case Study Solution Approaches

Three Step Approach to Zappos Customer Loyalty Team Case Study Solution

The three step case study solution approach comprises – Conclusions – MBA & EMBA professionals should state their conclusions at the very start. It helps in communicating the points directly and the direction one took. Reasons – At the second stage provide the reasons for the conclusions. Why you choose one course of action over the other. For example why the change effort failed in the case and what can be done to rectify it. Or how the marketing budget can be better spent using social media rather than traditional media. Evidences – Finally you should provide evidences to support your reasons. It has to come from the data provided within the case study rather than data from outside world. Evidences should be both compelling and consistent. In case study method there is ‘no right’ answer, just how effectively you analyzed the situation based on incomplete information and multiple scenarios.

Case Study Solution of Zappos Customer Loyalty Team

We write Zappos Customer Loyalty Team case study solution using Harvard Business Review case writing framework & HBR Leadership & Managing People learning notes. We try to cover all the bases in the field of Leadership & Managing People, and other related areas.

Objectives of using various frameworks in Zappos Customer Loyalty Team case study solution

By using the above frameworks for Zappos Customer Loyalty Team case study solutions, you can clearly draw conclusions on the following areas – What are the strength and weaknesses of Zappos Shifts (SWOT Analysis) What are external factors that are impacting the business environment (PESTEL Analysis) Should Zappos Shifts enter new market or launch new product (Opportunities & Threats from SWOT Analysis) What will be the expected profitability of the new products or services (Porter Five Forces Analysis) How it can improve the profitability in a given industry (Porter Value Chain Analysis) What are the resources needed to increase profitability (VRIO Analysis) Finally which business to continue, where to invest further and from which to get out (BCG Growth Share Analysis)

SWOT Analysis of Zappos Customer Loyalty Team

SWOT analysis stands for – Strengths, Weaknesses, Opportunities and Threats. Strengths and Weaknesses are result of Zappos Shifts internal factors, while opportunities and threats arise from developments in external environment in which Zappos Shifts operates. SWOT analysis will help us in not only getting a better insight into Zappos Shifts present competitive advantage but also help us in how things have to evolve to maintain and consolidate the competitive advantage.

- Streamlined processes and efficient operation management – Zappos Shifts is one of the most efficient firms in its segment. The credit for the performance goes to successful execution and efficient operations management.

- Experienced and successful leadership team – Zappos Shifts management team has been a success over last decade by successfully predicting trends in the industry.

- Low profitability which can hamper new project investment – Even though Zappos Shifts financial statement is stable, but going forward Zappos Shifts 5-7% profitability can lead to shortage of funds to invest into new projects.

- Little experience of international market – Even though it is a major player in local market, Zappos Shifts has little experience in international market. According to Scott Carter, Tim Laseter , Zappos Shifts needs international talent to penetrate into developing markets.

Opportunities

- Developments in Artificial Intelligence – Zappos Shifts can use developments in artificial intelligence to better predict consumer demand, cater to niche segments, and make better recommendation engines.

- Lucrative Opportunities in International Markets – Globalization has led to opportunities in the international market. Zappos Shifts is in prime position to tap on those opportunities and grow the market share.

- Home market marketing technique won’t work in new markets such as India and China where scale is prized over profitability.

- Growing dominance of digital players such as Amazon, Google, Microsoft etc can reduce the manoeuvring space for Zappos Shifts and put upward pressure on marketing budget.

Once all the factors mentioned in the Zappos Customer Loyalty Team case study are organized based on SWOT analysis, just remove the non essential factors. This will help you in building a weighted SWOT analysis which reflects the real importance of factors rather than just tabulation of all the factors mentioned in the case.

What is PESTEL Analysis

PESTEL /PEST / STEP Analysis of Zappos Customer Loyalty Team Case Study

PESTEL stands for – Political, Economic, Social, Technological, Environmental, and Legal factors that impact the macro environment in which Zappos Shifts operates in. Scott Carter, Tim Laseter provides extensive information about PESTEL factors in Zappos Customer Loyalty Team case study.

Political Factors

- Political and Legal Structure – The political system seems stable and there is consistency in both economic policies and foreign policies.

- Little dangers of armed conflict – Based on the research done by international foreign policy institutions, it is safe to conclude that there is very little probability of country entering into an armed conflict with another state.

Economic Factors

- Inflation rate is one of the key criteria to consider for Zappos Shifts before entering into a new market.

- According to Scott Carter, Tim Laseter . Zappos Shifts should closely monitor consumer disposable income level, household debt level, and level of efficiency of local financial markets.

Social Factors

- Leisure activities, social attitudes & power structures in society - are needed to be analyzed by Zappos Shifts before launching any new products as they will impact the demand of the products.

- Consumer buying behavior and consumer buying process – Zappos Shifts should closely follow the dynamics of why and how the consumers are buying the products both in existing categories and in segments that Zappos Shifts wants to enter.

Technological Factors

- Proliferation of mobile phones has created a generation whose primary tool of entertainment and information consumption is mobile phone. Zappos Shifts needs to adjust its marketing strategy accordingly.

- Artificial intelligence and machine learning will give rise to importance of speed over planning. Zappos Shifts needs to build strategies to operate in such an environment.

Environmental Factors

- Environmental regulations can impact the cost structure of Zappos Shifts. It can further impact the cost of doing business in certain markets.

- Consumer activism is significantly impacting Zappos Shifts branding, marketing and corporate social responsibility (CSR) initiatives.

Legal Factors

- Intellectual property rights are one area where Zappos Shifts can face legal threats in some of the markets it is operating in.

- Property rights are also an area of concern for Zappos Shifts as it needs to make significant infrastructure investment just to enter new market.

What are Porter Five Forces

Porter Five Forces Analysis of Zappos Customer Loyalty Team

Competition among existing players, bargaining power of suppliers, bargaining power of buyers, threat of new entrants, and threat of substitutes.

What is VRIO Analysis

VRIO Analysis of Zappos Customer Loyalty Team

VRIO stands for – Value of the resource that Zappos Shifts possess, Rareness of those resource, Imitation Risk that competitors pose, and Organizational Competence of Zappos Shifts. VRIO and VRIN analysis can help the firm.

What is Porter Value Chain

Porter Value Chain Analysis of Zappos Customer Loyalty Team

As the name suggests Value Chain framework is developed by Michael Porter in 1980’s and it is primarily used for analyzing Zappos Shifts relative cost and value structure. Managers can use Porter Value Chain framework to disaggregate various processes and their relative costs in the Zappos Shifts. This will help in answering – the related costs and various sources of competitive advantages of Zappos Shifts in the markets it operates in. The process can also be done to competitors to understand their competitive advantages and competitive strategies. According to Michael Porter – Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. So Value Chain competitive benchmarking should be done based on industry structure and bottlenecks.

What is BCG Growth Share Matrix

BCG Growth Share Matrix of Zappos Customer Loyalty Team

BCG Growth Share Matrix is very valuable tool to analyze Zappos Shifts strategic positioning in various sectors that it operates in and strategic options that are available to it. Product Market segmentation in BCG Growth Share matrix should be done with great care as there can be a scenario where Zappos Shifts can be market leader in the industry without being a dominant player or segment leader in any of the segment. BCG analysis should comprise not only growth share of industry & Zappos Shifts business unit but also Zappos Shifts - overall profitability, level of debt, debt paying capacity, growth potential, expansion expertise, dividend requirements from shareholders, and overall competitive strength. Two key considerations while using BCG Growth Share Matrix for Zappos Customer Loyalty Team case study solution - How to calculate Weighted Average Market Share using BCG Growth Share Matrix Relative Weighted Average Market Share Vs Largest Competitor

5C Marketing Analysis of Zappos Customer Loyalty Team

4p marketing analysis of zappos customer loyalty team, porter five forces analysis and solution of zappos customer loyalty team, porter value chain analysis and solution of zappos customer loyalty team, case memo & recommendation memo of zappos customer loyalty team, blue ocean analysis and solution of zappos customer loyalty team, marketing strategy and analysis zappos customer loyalty team, vrio /vrin analysis & solution of zappos customer loyalty team, pestel / step / pest analysis of zappos customer loyalty team, swot analysis and solution of zappos customer loyalty team, references & further readings.

Scott Carter, Tim Laseter (2018) , "Zappos Customer Loyalty Team Harvard Business Review Case Study. Published by HBR Publications.

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Zappos com Inc and the Warehouse Decision Case Study Solution

Posted by John Berg on Feb-16-2018

Introduction

Zappos com Inc and the Warehouse Decision Case Study is included in the Harvard Business Review Case Study. Therefore, it is necessary to touch HBR fundamentals before starting the Zappos com Inc and the Warehouse Decision case analysis. HBR will help you assess which piece of information is relevant. Harvard Business review will also help you solve your case. Thus, HBR fundamentals assist in easily comprehending the case study description and brainstorming the Zappos com Inc and the Warehouse Decision case analysis. Also, a major benefit of HBR is that it widens your approach. HBR also brings new ideas into the picture which would help you in your Zappos com Inc and the Warehouse Decision case analysis.

To write an effective Harvard Business Case Solution, a deep Zappos com Inc and the Warehouse Decision case analysis is essential. A proper analysis requires deep investigative reading. You should have a strong grasp of the concepts discussed and be able to identify the central problem in the given HBR case study. It is very important to read the HBR case study thoroughly as at times identifying the key problem becomes challenging. Thus by underlining every single detail which you think relevant, you will be quickly able to solve the HBR case study as is addressed in Harvard Business Case Solution.

Problem Identification

The first step in solving the HBR Case Study is to identify the problem. A problem can be regarded as a difference between the actual situation and the desired situation. This means that to identify a problem, you must know where it is intended to be. To do a Zappos com Inc and the Warehouse Decision case study analysis and a financial analysis, you need to have a clear understanding of where the problem currently is about the perceived problem.

For effective and efficient problem identification,

• A multi-source and multi-method approach should be adopted.
• The problem identified should be thoroughly reviewed and evaluated before continuing with the case study solution.
• The problem should be backed by sufficient evidence to make sure a wrong problem isn't being worked upon.

Problem identification, if done well, will form a strong foundation for your Zappos com Inc and the Warehouse Decision Case Study. Effective problem identification is clear, objective, and specific. An ambiguous problem will result in vague solutions being discovered. It is also well-informed and timely. It should be noted that the right amount of time should be spent on this part. Spending too much time will leave lesser time for the rest of the process.

Zappos com Inc and the Warehouse Decision Case Analysis

Once you have completed the first step which was problem identification, you move on to developing a case study answers. This is the second step which will include evaluation and analysis of the given company. For this step, tools like SWOT analysis, Porter's five forces analysis for Zappos com Inc and the Warehouse Decision, etc. can be used. Porter’s five forces analysis for Zappos com Inc and the Warehouse Decision analyses a company’s substitutes, buyer and supplier power, rivalry, etc.

To do an effective HBR case study analysis, you need to explore the following areas:

1. Company history:

The Zappos com Inc and the Warehouse Decision case study consists of the history of the company given at the start. Reading it thoroughly will provide you with an understanding of the company's aims and objectives. You will keep these in mind as any Harvard Business Case Solutions you provide will need to be aligned with these.

2. Company growth trends:

This will help you obtain an understanding of the company's current stage in the business cycle and will give you an idea of what the scope of the solution should be.

3. Company culture:

Work culture in a company tells a lot about the workforce itself. You can understand this by going through the instances involving employees that the HBR case study provides. This will be helpful in understanding if the proposed case study solution will be accepted by the workforce and whether it will consist of the prevailing culture in the company.

Zappos com Inc and the Warehouse Decision Financial Analysis

The third step of solving the Zappos com Inc and the Warehouse Decision Case Study is Zappos com Inc and the Warehouse Decision Financial Analysis. You can go about it in a similar way as is done for a finance and accounting case study. For solving any Zappos com Inc and the Warehouse Decision case, Financial Analysis is of extreme importance. You should place extra focus on conducting Zappos com Inc and the Warehouse Decision financial analysis as it is an integral part of the Zappos com Inc and the Warehouse Decision Case Study Solution. It will help you evaluate the position of Zappos com Inc and the Warehouse Decision regarding stability, profitability and liquidity accurately. On the basis of this, you will be able to recommend an appropriate plan of action. To conduct a Zappos com Inc and the Warehouse Decision financial analysis in excel,

• Past year financial statements need to be extracted.
• Liquidity and profitability ratios to be calculated from the current financial statements.
• Ratios are compared with the past year Zappos com Inc and the Warehouse Decision calculations
• Company’s financial position is evaluated.

Another way how you can do the Zappos com Inc and the Warehouse Decision financial analysis is through financial modelling. Financial Analysis through financial modelling is done by:

• Using the current financial statement to produce forecasted financial statements.
• A set of assumptions are made to grow revenue and expenses.
• Value of the company is derived.

Financial Analysis is critical in many aspects:

• Decision Making and Strategy Devising to achieve targeted goals- to determine the future course of action.
• Getting credit from suppliers depending on the leverage position- creditors will be confident to supply on credit if less company debt.
• Influence on Investment Decisions- buying and selling of stock by investors.

Thus, it is a snapshot of the company and helps analysts assess whether the company's performance has improved or deteriorated. It also gives an insight about its expected performance in future- whether it will be going concern or not. Zappos com Inc and the Warehouse Decision Financial analysis can, therefore, give you a broader image of the company.

Zappos com Inc and the Warehouse Decision NPV

Zappos com Inc and the Warehouse Decision's calculations of ratios only are not sufficient to gauge the company performance for investment decisions. Instead, investment appraisal methods should also be considered. Zappos com Inc and the Warehouse Decision NPV calculation is a very important one as NPV helps determine whether the investment will lead to a positive value or a negative value. It is the best tool for decision making.

There are many benefits of using NPV:

• It takes into account the future value of money, thereby giving reliable results.
• It considers the cost of capital in its calculations.
• It gives the return in dollar terms simplifying decision making.

The formula that you will use to calculate Zappos com Inc and the Warehouse Decision NPV will be as follows:

Present Value of Future Cash Flows minus Initial Investment

Present Value of Future cash flows will be calculated as follows:

PV of CF= CF1/(1+r)^1 + CF2/(1+r)^2 + CF3/(1+r)^3 + …CFn/(1+r)^n

where CF = cash flows r = cost of capital n = total number of years.

Cash flows can be uniform or multiple. You can discount them by Zappos com Inc and the Warehouse Decision WACC as the discount rate to arrive at the present value figure. You can then use the resulting figure to make your investment decision. The decision criteria would be as follows:

• If Present Value of Cash Flows is greater than Initial Investment, you can accept the project.
• If Present Value of Cash Flows is less than Initial Investment, you can reject the project.

Thus, calculation of Zappos com Inc and the Warehouse Decision NPV will give you an insight into the value generated if you invest in Zappos com Inc and the Warehouse Decision. It is a very reliable tool to assess the feasibility of an investment as it helps determine whether the cash flows generated will help yield a positive return or not.

However, it would be better if you take various aspects under consideration. Thus, apart from Zappos com Inc and the Warehouse Decision’s NPV, you should also consider other capital budgeting techniques like Zappos com Inc and the Warehouse Decision’s IRR to evaluate and fine-tune your investment decisions.

Zappos com Inc and the Warehouse Decision DCF

Once you are done with calculating the Zappos com Inc and the Warehouse Decision NPV for your finance and accounting case study, you can proceed to the next step, which involves calculating the Zappos com Inc and the Warehouse Decision DCF. Discounted cash flow (DCF) is a Zappos com Inc and the Warehouse Decision valuation method used to estimate the value of an investment based on its future cash flows. For a better presentation of your finance case solution, it is recommended to use Zappos com Inc and the Warehouse Decision excel for the DCF analysis.

To calculate the Zappos com Inc and the Warehouse Decision DCF analysis, the following steps are required:

• Calculate the expected future cash inflows and outflows.
• Set-off inflows and outflows to obtain the net cash flows.
• Find the present value of expected future net cash flows using a discount rate, which is usually the weighted-average cost of capital (WACC).
• If the value calculated through Zappos com Inc and the Warehouse Decision DCF is higher than the current cost of the investment, the opportunity should be considered
• If the current cost of the investment is higher than the value calculated through DCF, the opportunity should be rejected

Zappos com Inc and the Warehouse Decision DCF can also be calculated using the following formula:

DCF= CF1/(1+r)^1 + CF2/(1+r)^2 + CF3/(1+r)^3 + …CFn/(1+r)^n

In the formula:

• CF= Cash flows
• R= discount rate (WACC)

Zappos com Inc and the Warehouse Decision WACC

When making different Zappos com Inc and the Warehouse Decision's calculations, Zappos com Inc and the Warehouse Decision WACC calculation is of great significance. WACC calculation is done by the capital composition of the company. The formula will be as follows:

Weighted Average Cost of Capital = % of Debt * Cost of Debt * (1- tax rate) + % of equity * Cost of Equity

You can compute the debt and equity percentage from the balance sheet figures. For the cost of equity, you can use the CAPM model. Cost of debt is usually given. However, if it isn't mentioned, you can calculate it through market weighted average debt. Zappos com Inc and the Warehouse Decision’s WACC will indicate the rate the company should earn to pay its capital suppliers. Zappos com Inc and the Warehouse Decision WACC can be analysed in two ways:

• From the company's perspective, it can be analysed as the cost to be paid to the capital providers also known as Cost of Capital
• From an investor' perspective, if the expected return on the investment exceeds Zappos com Inc and the Warehouse Decision WACC, the investor will go ahead with the investment as a positive value would be generated.

Zappos com Inc and the Warehouse Decision IRR

After calculating the Zappos com Inc and the Warehouse Decision WACC, it is necessary to calculate the Zappos com Inc and the Warehouse Decision IRR as well, as WACC alone does not say much about the company’s overall situation. Zappos com Inc and the Warehouse Decision IRR will add meaning to the finance solution that you are working on. The internal rate of return is a tool used in investment appraisal to calculate the profitability of prospective investments. IRR calculations are dependent on the same formula as Zappos com Inc and the Warehouse Decision NPV.

There are two ways to calculate the Zappos com Inc and the Warehouse Decision IRR.

• By using a Zappos com Inc and the Warehouse Decision Excel Spreadsheet: There are in-built formulae for calculating IRR.

IRR= R + [NPVa / (NPVa - NPVb) x (Rb - Ra)]

In this formula:

• Ra= lower discount rate chosen
• Rb= higher discount rate chosen
• NPVa= NPV at Ra
• NPVb= NPV at Rb

Zappos com Inc and the Warehouse Decision IRR impacts your finance case solution in the following ways:

• If IRR>WACC, accept the alternative
• If IRR<WACC, reject the alternative

Zappos com Inc and the Warehouse Decision Excel Spreadsheet

All your Zappos com Inc and the Warehouse Decision calculations should be done in a Zappos com Inc and the Warehouse Decision xls Spreadsheet. A Zappos com Inc and the Warehouse Decision excel spreadsheet is the best way to present your finance case solution. The Zappos com Inc and the Warehouse Decision Calculations should be presented in Zappos com Inc and the Warehouse Decision excel in such a way that the analysis and results can be distinguished to the viewers. The point of Zappos com Inc and the Warehouse Decision excel is to present large amounts of data in clear and consumable ways. Presenting your data is also going to make sure that you don't have misinterpretations of the data.

To make your Zappos com Inc and the Warehouse Decision calculations sheet more meaningful, you should:

• Think about the order of the Zappos com Inc and the Warehouse Decision xls worksheets in your finance case solution
• Use more Zappos com Inc and the Warehouse Decision xls worksheets and tables as will divide the data that you are looking at in sections.
• Choose clarity overlooks
• Keep your timeline consistent
• Organise the information flow
• Clarify your sources

The following tips and bits should be kept in mind while preparing your finance case solution in a Zappos com Inc and the Warehouse Decision xls spreadsheet:

• Avoid using fixed numbers in formulae
• Avoid hiding data
• Useless and meaningful colours, such as highlighting negative numbers in red
• Label column and rows
• Correct your alignment
• Keep formulae readable
• Strategically freeze header column and row

Zappos com Inc and the Warehouse Decision Ratio analysis

After you have your Zappos com Inc and the Warehouse Decision calculations in a Zappos com Inc and the Warehouse Decision xls spreadsheet, you can move on to the next step which is ratio analysis. Ratio analysis is an analysis of information in the form of figures contained in the financial statements of a company. It will help you evaluate various aspects of a company's operating and financial performance which can be done in Zappos com Inc and the Warehouse Decision Excel.

To conduct a ratio analysis that covers all financial aspects, divide the analysis as follows:

• Liquidity Ratios: Liquidity ratios gauge a company's ability to pay off its short-term debt. These include the current ratio, quick ratio, and working capital ratio.
• Solvency ratios: Solvency ratios match a company's debt levels with its assets, equity, and earnings. These include the debt-equity ratio, debt-assets ratio, and interest coverage ratio.
• Profitability Ratios: These show how effectively a company can generate profits through its operations. Profit margin, return on assets, return on equity, return on capital employed, and gross margin ratio is examples of profitability ratios.
• Efficiency ratios: Efficiency ratios analyse how efficiently a company uses its assets and liabilities to boost sales and increase profits.
• Coverage Ratios: These ratios measure a company's ability to make the interest payments and other obligations associated with its debts. Examples include times interest earned ratio and debt-service coverage ratio.
• Market Prospect Ratios: These include dividend yield, P/E ratio, earnings per share, and dividend payout ratio.

Zappos com Inc and the Warehouse Decision Valuation

Zappos com Inc and the Warehouse Decision Valuation is a very fundamental requirement if you want to work out your Harvard Business Case Solution. Zappos com Inc and the Warehouse Decision Valuation includes a critical analysis of the company's capital structure – the composition of debt and equity in it, and the fair value of its assets. Common approaches to Zappos com Inc and the Warehouse Decision valuation include

• DDM is an appropriate method if dividends are being paid to shareholders and the dividends paid are in line with the earnings of the company.
• FCFF is used when the company has a combination of debt and equity financing.
• FCFE, on the other hand, shows the cash flow available to equity holders only.

These three methods explained above are very commonly used to calculate the value of the firm. Investment decisions are undertaken by the value derived.

Zappos com Inc and the Warehouse Decision calculations for projected cash flows and growth rates are taken under consideration to come up with the value of firm and value of equity. These figures are used to determine the net worth of the business. Net worth is a very important concept when solving any finance and accounting case study as it gives a deep insight into the company's potential to perform in future.

Alternative Solutions

After doing your case study analysis, you move to the next step, which is identifying alternative solutions. These will be other possibilities of Harvard Business case solutions that you can choose from. For this, you must look at the Zappos com Inc and the Warehouse Decision case analysis in different ways and find a new perspective that you haven't thought of before.

Once you have listed or mapped alternatives, be open to their possibilities. Work on those that:

• need additional information
• are new solutions
• can be combined or eliminated

After listing possible options, evaluate them without prejudice, and check if enough resources are available for implementation and if the company workforce would accept it.

For ease of deciding the best Zappos com Inc and the Warehouse Decision case solution, you can rate them on numerous aspects, such as:

• Feasibility
• Suitability
• Flexibility

Implementation

Once you have read the Zappos com Inc and the Warehouse Decision HBR case study and have started working your way towards Zappos com Inc and the Warehouse Decision Case Solution, you need to be clear about different financial concepts. Your Mondavi case answers should reflect your understanding of the Zappos com Inc and the Warehouse Decision Case Study.

You should be clear about the advantages, disadvantages and method of each financial analysis technique. Knowing formulas is also very essential or else you will mess up with your analysis. Therefore, you need to be mindful of the financial analysis method you are implementing to write your Zappos com Inc and the Warehouse Decision case study solution. It should closely align with the business structure and the financials as mentioned in the Zappos com Inc and the Warehouse Decision case memo.

You can also refer to Zappos com Inc and the Warehouse Decision Harvard case to have a better understanding and a clearer picture so that you implement the best strategy. There are a number of benefits if you keep a wide range of financial analysis tools at your fingertips.

• Your Zappos com Inc and the Warehouse Decision HBR Case Solution would be quite accurate
• You will have an option to choose from different methods, thus helping you choose the best strategy.

Recommendation and Action Plan

Once you have successfully worked out your financial analysis using the most appropriate method and come up with Zappos com Inc and the Warehouse Decision HBR Case Solution, you need to give the final finishing by adding a recommendation and an action plan to be followed. The recommendation can be based on the current financial analysis. When making a recommendation,

• You need to make sure that it is not generic and it will help in increasing company value
• It is in line with the case study analysis you have conducted
• The Zappos com Inc and the Warehouse Decision calculations you have done support what you are recommending
• It should be clear, concise and free of complexities

Also, adding an action plan for your recommendation further strengthens your Zappos com Inc and the Warehouse Decision HBR case study argument. Thus, your action plan should be consistent with the recommendation you are giving to support your Zappos com Inc and the Warehouse Decision financial analysis. It is essential to have all these three things correlated to have a better coherence in your argument presented in your case study analysis and solution which will be a part of Zappos com Inc and the Warehouse Decision Case Answer.

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Embracing Gen AI at Work

• H. James Wilson
• Paul R. Daugherty

The skills you need to succeed in the era of large language models

Today artificial intelligence can be harnessed by nearly anyone, using commands in everyday language instead of code. Soon it will transform more than 40% of all work activity, according to the authors’ research. In this new era of collaboration between humans and machines, the ability to leverage AI effectively will be critical to your professional success.

This article describes the three kinds of “fusion skills” you need to get the best results from gen AI. Intelligent interrogation involves instructing large language models to perform in ways that generate better outcomes—by, say, breaking processes down into steps or visualizing multiple potential paths to a solution. Judgment integration is about incorporating expert and ethical human discernment to make AI’s output more trustworthy, reliable, and accurate. It entails augmenting a model’s training sources with authoritative knowledge bases when necessary, keeping biases out of prompts, ensuring the privacy of any data used by the models, and scrutinizing suspect output. With reciprocal apprenticing, you tailor gen AI to your company’s specific business context by including rich organizational data and know-how into the commands you give it. As you become better at doing that, you yourself learn how to train the AI to tackle more-sophisticated challenges.

The AI revolution is already here. Learning these three skills will prepare you to thrive in it.

Generative artificial intelligence is expected to radically transform all kinds of jobs over the next few years. No longer the exclusive purview of technologists, AI can now be put to work by nearly anyone, using commands in everyday language instead of code. According to our research, most business functions and more than 40% of all U.S. work activity can be augmented, automated, or reinvented with gen AI. The changes are expected to have the largest impact on the legal, banking, insurance, and capital-market sectors—followed by retail, travel, health, and energy.

• H. James Wilson is the global managing director of technology research and thought leadership at Accenture Research. He is the coauthor, with Paul R. Daugherty, of Human + Machine: Reimagining Work in the Age of AI, New and Expanded Edition (HBR Press, 2024). hjameswilson
• Paul R. Daugherty is Accenture’s chief technology and innovation officer. He is the coauthor, with H. James Wilson, of Human + Machine: Reimagining Work in the Age of AI, New and Expanded Edition (HBR Press, 2024). pauldaugh

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