3. Why do you think it has been so difficult for Zappos to change its organizational structure? Zappos began in 1999 as an online shoe retailer that has expanded into many product categories since then. The company is known for its “zany” corporate culture and emphasis on creating “WOW” customer service.

Yet as Zappos grew, CEO Tony Hsieh became concerned. As companies grow, productivity per employee tends to decrease.

Conversely, as cities double in growth, productivity increases 15 percent. How could he make Zappos grow like a city? Hsieh believed the answer was in self-management and power distribution.