Chapter 10: Creating Effective Organizational Designs

Nordstrom’s organizational structure invokes success and technological innovation to achieve a sustainable competitive advantage. Nordstrom utilizes a divisional organizational structure to effectively meet the needs of the specific entities within Nordstrom, Inc. Examples of the different divisions include Nordstrom.com, Shoe Division, and Nordstrom Rack. By separating these divisions, Nordstrom is able to evaluate the different financial statements to decide which areas show growth compared to other divisions. From this, executives are able to expand the growing divisions, while creating a plan to better prosper the less successful branches. Because of the size of Nordstrom, this organizational structure benefits the overall firm being able to compare divisions with concrete sales.

Nordstrom actively listens to its customers. As the world becomes more connected, some customers strive for the convenience of online shopping, while others desire for the specialty customer services from the in-store experience. Nordstrom balances these two resources to service to their customers in the best possible way. Nordstrom’s demonstrates a pattern for the focus of technology as online shopping has grown in the last decade. Nordstrom carefully links their products to social media sites such as Pinterest, Instagram, Facebook, and the Nordstrom App. Through these social media sties and Nordstrom’s tight inventory system, Nordstrom is able reach more customers that are continuously visiting these sites in an efficient and effective manner. The links from these sites make the process to buy a product easier than ever wherever a customer is browsing.

Nordstrom recognizes that hiring from within can add benefits as employees learn about working in different levels of tiers within the firm. However, Nordstrom does not fail to bring in new ideas and ensure that they are hiring candidates with precise credentials that align with the innovative goals of the firm. Nordstrom has effectively adapted to technology and invested in the growth of their online presence to meet to needs of customers. Specifically over the last few months, Nordstrom has been actively seeking a new Chief Technology Officer and co-president, Blake Nordstrom states that they are looking not just within, but trying to find the best possible candidate for the position. Nordstrom values innovation and follows the stream of adapting technology to create a sustainable competitive advantage.