Norstroms a Big Business
Posted on Tuesday November 25th 2008 in business
Nordstrom’s is a fashion specialty retail store based in the United States. They operate in 28 states with 108 full line stores and 58 other outlets .
The company was started in Seattle in 1901 by John Nordstrom and Carl Wallin as Wallin & Nordstrom, and the name didn’t change until 1929 when partner Carl Wallin sold his share of the store to Nordstrom’s children. But it was during Wallin and John Nordstrom’s ownership that Norstrom’s business philosophy of exceptional customer service, selection, quality and value was implemented. When the store started out, they only sold shoes. In 1963, Norstroms purchased Seattle based clothing store Best Apparel and started selling their own line of clothing .
Nordstrom’s believes that exceptional customer service is essential to the company's success, which is evident in their mission statement (which is to "offer the customer the best possible service, selection, quality and value") and in their merchandise return policy . The company is famous for providing excellent customer service; stories about accepting returns on tire chains and keeping customer’s cars warm during winter are widespread among consumers and in the retail industry . One of the company’s famous sayings, which epitomizes Nordstrom’s attitude
towards customers, is “If I take care of the customer the dollars will follow. ” Economy: South Korea has grown their economy significantly over the last forty years. They've gone from having a GDP similar to other poorer South-East Asia GDPs to having a GDP similar to Greece, with the only significant slowdown occurring during the Asian financial crisis in 1998. South Korea, along with Singapore, Hong Kong and Taiwan, developed at such a rapid rate between the 1960’s and 1990’s that economists called those for nations “the tigers of Asia.” The average household income in South Korea is $25,000 . Over the past forty years, South Korea has moved from a centrally planned economy to a liberalized free-market economy . However, the Heritage Foundation Index of Economic Freedom rates South Korea at 36 (on a scale of 1 to 100, 1 being 100% free and 100 being 100% controlled) and says the country’s economy is only partly free . In order to provide a level of contrast, the United States was given a 4 in the Heritage Foundation Index of Economic Freedom . Economists are worried that South Korea's economic growth might slow down due to an aging population, poor relations between workers and managers and rigid labor regulations . Population: As of July 2008, South Korea has a population of more than 48 million people expanding at a rate of 0.269%. The average household income for a Korean is $25,000, and the Gini index suggests that whoever brings home the money controls a majority of the wealth. 74% of South Korea’s population is between the ages of 17 and 64 years old, which implies that about 35 million South Koreans are eligible for employment. However, the Korean labor force is only 24 million people, suggesting that many wives don’t work. An interview with a Korean citizen suggested that many wives stay home to keep house and to make sure that their children do well in school, suggesting that in most households, only one person brings home a paycheck . Even though Nordstrom’s tends to target their clothing at upper-middle class citizens, the Korean citizen interviewed for this paper suggested that Koreans would in fact shop at Nordstrom’s because they place a high importance on image and fashion. She cited examples where some Koreans would skip meals to save money for Starbucks coffee in order to create an image as a high standing person in Korean society7. If Nordstrom’s can brand itself as a fashion retail chain that high standing members of Korean society shop in, then citizens who want to appear as if they have high standing in society will shop at Nordstrom’s. This could create an ethical problem because our investors in the United States could see us as exploiting a cultural norm for our own profit. Customer service is an area that Nordstrom’s will need to focus on. In Korean retail culture, excellent customer service is provided to all Korean’s who dress well in retail stores, because Koreans who dress well are perceived as being well off . In the United States, Nordstrom’s has a reputation for providing excellent customer service regardless of who the customer is. Nordstrom’s will need to decide if they want to conform to Korean culture or if they want to keep their same level of service that they do in all their other stores. Government: South Korea’s government system strongly resembles that of continental European countries. It has three branches of government that implement a series of checks and balances against each other, similar to that of the United States (however, politics are generally dominated by the executive ). South Korea’s governmental philosophies also reflect the ideals of Chinese classical thought. South Korea’s executive branch centers on the office of the President. The president, who is the chief of state, is elected for a term of five years. The president is responsible for selecting a prime minister who acts as an assistant to the president. The current president, Lee Myung-bak, was voted into office with one of the largest margin victories in South Korean political history on the Grand National Party ticket, but his popularity was recently marred by his controversial decision to allow the United States to import beef into Korea. He is the first Korean president with a background in business . Myung-bak’s focus during his campaign and during his presidency has been on implementing economic reforms that focus on South Korean and United States free trade . He has placed emphasis on economic reforms since the emergence of the global credit crisis, but it is being speculated that the beef scandal will make it difficult for him to get any of his reforms passed by the legislature . South Korea’s single legislative chamber, the national assembly, has 299 members. Currently, the Grand National Party has a majority in the legislature . Language: The official language of South Korea is Korean, but English is often taught in junior high and high school . The official written alphabet is Hangul, and Koreans are proud of their alphabet . Because language fluency varies from Korean to Korean, the best way to conduct business is with a team of negotiators who are fluent in the Korean language and are familiar with Korean business language and customs. It is important for those who do business in South Korea to get the age of the other person because South Koreans have different ways of addressing people depending on if they are younger or older than them . Religion: About one-half of the population of South Korea does not practice any religion. 26% of Koreans practice Christianity, and 23% of Koreans practice Buddhism . Confucian values are deeply embedded into South Korean cultural norms and into their mindsets, even though most South Koreans do not identify themselves as Confuscian . With some South Koreans, it is important to be aware of their religious beliefs and their religious taboos. Even though most South Koreans are tolerant of other people’s spiritual beliefs, South Koreans who are especially religious will become visibly agitated if somebody violates a religious taboo . Literacy: 97.9% of Koreans over the age of 15 can read and write. 99.2% of males and 96.6% of females are literate . South Korea’s high literacy rate is often attributed to its writing system, Hangul, an innovative and easy to learn alphabet . Communication Channels: South Korea has almost twice as many cell phone lines as it does main lines. 23.9 million South Koreans use main phone lines while 43.5 million South Koreans use cellular phones, meaning that 90% of the population uses cell phones. Wide cell-phone use can be attributed to South Koreans’ willingness to adapt to new mobile technologies . South Koreans use their cell phones for more than just phone calls; 63% of South Koreans make payments using their cell phones . Many South Koreans also use their cell phones to access the Internet. More than half of South Korean cell phone users have upgraded their phone’s web service to the 3G network service31. The convergence of communication technologies on cell phones should be taken into account whenever Nordstroms decides to launch an advertizing, marketing or public relations campaign. There are 39.6 million internet users in South Korea . Many young South Koreans create and maintain a Cyworld profile, which can best be described as a South Korean version of Myspace or Facebook where users can maintain a blog, create an online avatar and network with friends. 43% of South Koreans have a Cyworld Profile32. Fashion websites and forums play an important role in South Korean apparel consumption. Websites and forums, such as Naver.com, are popular sites where many young South Koreans can get the latest fashion news and discuss new and emerging fashion trends. These websites have a lot of content, but most of it is organized into demographic categories. For example, there are different categories for married women, single men, and high school girls who are about to graduate. These websites are heavily targeted by clothing manufactures, and some of these websites are corporately sponsored .
towards customers, is “If I take care of the customer the dollars will follow. ” Economy: South Korea has grown their economy significantly over the last forty years. They've gone from having a GDP similar to other poorer South-East Asia GDPs to having a GDP similar to Greece, with the only significant slowdown occurring during the Asian financial crisis in 1998. South Korea, along with Singapore, Hong Kong and Taiwan, developed at such a rapid rate between the 1960’s and 1990’s that economists called those for nations “the tigers of Asia.” The average household income in South Korea is $25,000 . Over the past forty years, South Korea has moved from a centrally planned economy to a liberalized free-market economy . However, the Heritage Foundation Index of Economic Freedom rates South Korea at 36 (on a scale of 1 to 100, 1 being 100% free and 100 being 100% controlled) and says the country’s economy is only partly free . In order to provide a level of contrast, the United States was given a 4 in the Heritage Foundation Index of Economic Freedom . Economists are worried that South Korea's economic growth might slow down due to an aging population, poor relations between workers and managers and rigid labor regulations . Population: As of July 2008, South Korea has a population of more than 48 million people expanding at a rate of 0.269%. The average household income for a Korean is $25,000, and the Gini index suggests that whoever brings home the money controls a majority of the wealth. 74% of South Korea’s population is between the ages of 17 and 64 years old, which implies that about 35 million South Koreans are eligible for employment. However, the Korean labor force is only 24 million people, suggesting that many wives don’t work. An interview with a Korean citizen suggested that many wives stay home to keep house and to make sure that their children do well in school, suggesting that in most households, only one person brings home a paycheck . Even though Nordstrom’s tends to target their clothing at upper-middle class citizens, the Korean citizen interviewed for this paper suggested that Koreans would in fact shop at Nordstrom’s because they place a high importance on image and fashion. She cited examples where some Koreans would skip meals to save money for Starbucks coffee in order to create an image as a high standing person in Korean society7. If Nordstrom’s can brand itself as a fashion retail chain that high standing members of Korean society shop in, then citizens who want to appear as if they have high standing in society will shop at Nordstrom’s. This could create an ethical problem because our investors in the United States could see us as exploiting a cultural norm for our own profit. Customer service is an area that Nordstrom’s will need to focus on. In Korean retail culture, excellent customer service is provided to all Korean’s who dress well in retail stores, because Koreans who dress well are perceived as being well off . In the United States, Nordstrom’s has a reputation for providing excellent customer service regardless of who the customer is. Nordstrom’s will need to decide if they want to conform to Korean culture or if they want to keep their same level of service that they do in all their other stores. Government: South Korea’s government system strongly resembles that of continental European countries. It has three branches of government that implement a series of checks and balances against each other, similar to that of the United States (however, politics are generally dominated by the executive ). South Korea’s governmental philosophies also reflect the ideals of Chinese classical thought. South Korea’s executive branch centers on the office of the President. The president, who is the chief of state, is elected for a term of five years. The president is responsible for selecting a prime minister who acts as an assistant to the president. The current president, Lee Myung-bak, was voted into office with one of the largest margin victories in South Korean political history on the Grand National Party ticket, but his popularity was recently marred by his controversial decision to allow the United States to import beef into Korea. He is the first Korean president with a background in business . Myung-bak’s focus during his campaign and during his presidency has been on implementing economic reforms that focus on South Korean and United States free trade . He has placed emphasis on economic reforms since the emergence of the global credit crisis, but it is being speculated that the beef scandal will make it difficult for him to get any of his reforms passed by the legislature . South Korea’s single legislative chamber, the national assembly, has 299 members. Currently, the Grand National Party has a majority in the legislature . Language: The official language of South Korea is Korean, but English is often taught in junior high and high school . The official written alphabet is Hangul, and Koreans are proud of their alphabet . Because language fluency varies from Korean to Korean, the best way to conduct business is with a team of negotiators who are fluent in the Korean language and are familiar with Korean business language and customs. It is important for those who do business in South Korea to get the age of the other person because South Koreans have different ways of addressing people depending on if they are younger or older than them . Religion: About one-half of the population of South Korea does not practice any religion. 26% of Koreans practice Christianity, and 23% of Koreans practice Buddhism . Confucian values are deeply embedded into South Korean cultural norms and into their mindsets, even though most South Koreans do not identify themselves as Confuscian . With some South Koreans, it is important to be aware of their religious beliefs and their religious taboos. Even though most South Koreans are tolerant of other people’s spiritual beliefs, South Koreans who are especially religious will become visibly agitated if somebody violates a religious taboo . Literacy: 97.9% of Koreans over the age of 15 can read and write. 99.2% of males and 96.6% of females are literate . South Korea’s high literacy rate is often attributed to its writing system, Hangul, an innovative and easy to learn alphabet . Communication Channels: South Korea has almost twice as many cell phone lines as it does main lines. 23.9 million South Koreans use main phone lines while 43.5 million South Koreans use cellular phones, meaning that 90% of the population uses cell phones. Wide cell-phone use can be attributed to South Koreans’ willingness to adapt to new mobile technologies . South Koreans use their cell phones for more than just phone calls; 63% of South Koreans make payments using their cell phones . Many South Koreans also use their cell phones to access the Internet. More than half of South Korean cell phone users have upgraded their phone’s web service to the 3G network service31. The convergence of communication technologies on cell phones should be taken into account whenever Nordstroms decides to launch an advertizing, marketing or public relations campaign. There are 39.6 million internet users in South Korea . Many young South Koreans create and maintain a Cyworld profile, which can best be described as a South Korean version of Myspace or Facebook where users can maintain a blog, create an online avatar and network with friends. 43% of South Koreans have a Cyworld Profile32. Fashion websites and forums play an important role in South Korean apparel consumption. Websites and forums, such as Naver.com, are popular sites where many young South Koreans can get the latest fashion news and discuss new and emerging fashion trends. These websites have a lot of content, but most of it is organized into demographic categories. For example, there are different categories for married women, single men, and high school girls who are about to graduate. These websites are heavily targeted by clothing manufactures, and some of these websites are corporately sponsored .
