BUAD 3153: Crocs Inc. research paper
Crocs Inc. began in 2002 in Colorado. The company was started by three friends Lyndon duke Hanson, Scott Seamans and George Boedecker. The croc had been projected to be a spa shoe but since its debut has advanced into much more than that. The company went from selling 200 pairs at a boat show in Florida to now having sold 300 million pairs of shoes (“Crocs inc.- history” n.d). Crocs has managed to keep up with trends and reaching new markets.
The management team of a company plays a big role in determining if the company will be successful. Our textbook discusses the different structures of management, and the effect they have. The crocs team, like many organizations, begins with their CEO. The current CEO of Crocs Inc. is Andrew Rees. Rees also serves as the company’s president and director. Below him is chief legal and administrative officer, Dan Hart. The last major member of the management team is executive vice president and chief financial officer, Carrie Teffner. In 2012, Crocs Inc announced that their management team and chief marketing officer had been awarded silver Stevie awards. This award recognizes accomplishments and contributions of companies and business people. The company was recognized in two categories, first in the management team of the year and then again in marketing executive of the year ( “Crocs Inc. Management” n.d). By being nominated and awarded with this accomplishment, the crocs company can show how strong their management is.
Crocs Inc. has many strengths and weaknesses, using the SWOT analysis manager have been able to identify each of these. SWOT stands for strengths (S), weakness (W), external environment opportunities (O) and threats (T) (Smartbook n.d). Based on my research I discovered many different examples for each of the aspects of SWOT analysis. Crocs Inc. offers comfortable unique shoes made from a material called Croslite. This material gives the croc its comfort, lightweight feeling and softness (” Crocs” 2018). On the other hand, crocs do not offer many products other than footwear which causes most of sales to be seasonal (mostly in the summer). There are over 300 styles of croc available online and in stores, but the company relies greatly on the sales of their classic clog shoe. The clog is acceptable footwear for warm weather but what about when there is snow on the ground? An article posted on The Motley Fool discusses the different weaknesses of the company, one of these being the lack of diversity in the shoe. Although there are some cold-weather options, the winter brings some of the lowest sales (Green T, 2013). This causes the company to rely even more on their summer sales.
Motivation plays an important role in making a company successful and crocs does not fail to do so. The company offers many benefits to their employees or future employees. Some of these benefits include: equal employment opportunities for all people, insurance(s), 401k with immediate vesting, etc. Equal employment opportunities create a freedom from discrimination based on race, color, sex, national origin, religion, age, disability or genetic information. By offering equal employment, the company can benefit from a wide variety of talents, experiences, and perspectives. The company also focuses on the health of their employees. Not only do they offer dental, medical and vision insurance, they also offer instructor-led fitness classes and an on-site gym (“Careers” n.d). This promotes a healthy lifestyle and to have fun while you work. These are just a few of the benefits offered to employees, but it shows just how much Crocs cares about the people who make their business successful.
Lastly, the human resource practices used by a company help to attract people to their product and make people want to be employed there. Human resource practices include recruitment and selection, training and development, performance appraisal and feedback, pay and benefits, and labor relations. A business is likely to fail if it is lacking any of these practices. At Crocs Inc. they place an excess of focus on their human resource. For example, the company is committed to providing a safe and healthy workplace. Their code of conduct states “Our business partners will protect human health and the environment by meeting applicable regulatory requirements.” (“Code of conduct” n.d). By ensuring a safe work environment there may be an increase in production, employee motivation and potential employees. Human resources at crocs not only focuses on labor relations but they also but an emphasis on paying their employees the wages they deserve and providing benefits. Each employee is paid a minimum wage or the appropriate prevailing wage depending on which one is higher (“Code of conduct” n.d). Consensual overtime is offered, the employer should not request employees to work more than their maximum of 48 hours a week. When overtime is available, the total of regular and overtime hours is not to exceed 60 hours. When beginning to work for Crocs Inc employees know that they will be treated fairly, taken care of, and protected.
To conclude, I believe that the Crocs Inc. company cares greatly about their product and their employees. Those employed by the company have boasted about what a great organization it is to work for, which, based off the research, I agree with. The organizational structure, management team and employees have made this company come out of the 2008 recession better than it was before.
Careers. (n.d.). Retrieved from https://www.crocs.com/company/crocs-careers.html
Code of Conduct. (n.d.). Retrieved from https://www.crocs.com/company/code-of-conduct.html
Crocs, Inc. – Company Profile, Information, Business Description, History, Background Information on Crocs, Inc. (n.d.). Retrieved from http://www.referenceforbusiness.com/history2/25/Crocs-Inc.html
Crocs. (2018, July 17). Retrieved from https://en.wikipedia.org/wiki/Crocs
Crocs, Inc. Management Team and Chief Marketing Officer Honored as Silver Stevie® Award Winners in 2012 American Business AwardsSM. (n.d.). Retrieved from http://investors.crocs.com/news-releases/news-release-details/crocs-inc-management-team-and-chief-marketing-officer-honored
Green, T. (2013, November 16). The Problem With Crocs. Retrieved from https://www.fool.com/investing/general/2013/11/16/the-problem-with-this-shoe-company.aspx
Smartbook. (n.d.). Retrieved from https://www.mhlearnsmart.com/flow/smartbook.html?sectionId