ULTA BEAUTY: KEEPING IN-STORE ALIVE

CHAPTER 4 SYSTEM APPROACHESBrianna Blanco

Organizational Communication

REVIEW OF ARTICLE• According to the Merriam-Webster dictionary, the definition of “in-store” is

“existing, happening, or available in a store”. • In the article, Think in-store is dying? Check out Ulta Beauty by Evan

Schuman, he discusses how in-store experience is about the way that retailers need to deliver services and goods in a way that e-tailers cannot.

• E-tailers have the advantage of price, convenience, inventory range, and now sometimes even same day delivery.

• Schuman explained that physical stores must deliver “uniqueand compelling experiences” or they will not win their customers over long term.

REVIEW OF ARTICLE

• Ulta being a very unique company, carries mass brands such as CoverGirl and Maybelline where women would typically buy at drug stores. They also carry brands such as Lancome and Clinique, where women would typically buy at a specialty or department store.

• On top of the mass variety of products, they also have hair salons and facial and waxing stations.

• Ulta even considers being located where parking is easily accessible, unlike large malls, but rather in a strip mall.

REVIEW OF ARTICLE• Schuman believes a large part of Ulta’s future success falls on associate

training. • In order for Ulta to remain successful, they must offer a better experience

than online companies as well as other in-store chains. • Some of Ulta’s rivals include Macy’s, Sephora’s, and drugstores.

REVIEW OF ARTICLE

• Ulta becomes a destination. The environment Ulta has created is closer to a spa being a pure experience outing. Schuman compares Ulta with a typical retail store such as Walmart and Target, and explains the difference. He believes if you can buy a couch and car battery in the same place, it no longer is a specialized experience.

• Ulta strives to be a destination, not a “shopping chore”. • This article looks at how this company took this industry and made it

“engaging and attractive”.

REVIEW OF ARTICLE• The key to the success in part is having associates there and able to

make good recommendations. • For example, Schuman describes this as moving auto parts into an outer

area and allow people to drive their cars into a showroom-like area and see what fits and works.

• This is exactly the set up of Ulta.• There is a circle of different cosmetics and the center of Ulta allows the

employees and customers to try out the cosmetics.

REVIEW OF ARTICLE• Ulta ‘Beauty Advisors’ do their best to truly understand their products in

order to make useful suggestions creating trust with the customers. • These associates invite the customers to try out the product in the store,

and allow the results to dictate the sales. • If they truly believe in the product they are selling, sampling it in the

store will do nothing but potentially create more sales. • In summary, not all products are meant to remain in-store. Creativity is

keeping in-store alive, and will do so while creating “powerful experiences”.

INTERDEPENDENCE• According to our book Organizational Communication: Approaches and

Processes, interdependence implies that the functioning of one component of a system relies on other components of the system.

• The human body is a highly interdependent system in which the breakdown of one component would lead to breakdowns in other component and in the system as a whole.

• Ulta wouldn’t be as successful as they are now, if they didn’t have all of the different factors and parts.

• For example, Ulta is composed of the store aesthetic, the trained associates, the variety of products, and the uniqueness of goods and services.

EQUIFINALITY• Equifinality, a system property, states that “a system can reach the same

final state from differing initial conditions and by a variety of paths”. • A change in the training of salespeople might serve to increase sales.

Another way to increase sales could be through the supervisors. This shows that because systems are complex and interconnected, therefore, this is more than a single path to any system outcome.

• There is no single key to success. Ulta, understanding this, chooses what they believe to be the best way to success. Therefore, using many important components to solve and work towards one main goal.

REQUISITE VARIETY• A final system property again deals with the relationship between a

system and its environment, according to our book.• “If a team or unit is unable to recognize, absorb, and deal with the

variations in its environment, it is unlikely to evolve and survive”.• Any company or organization in todays business that is unable to evolve

with its environment will not survive for very long. • Ulta understands the growing online shopping industry, and is working to

create and keep the in-store experience alive. • However, if Ulta just continued doing what they are doing with no

evaluation and updates, they would no longer thrive and survive.

CYBERNETIC SYSTEMS THEORY• According to our book, Cybernetics derives from the Greek word for a

boat’s steersman. This means the process through which physical, natural, and organizational systems are steered toward reaching system goals.

• The first of these components is the system goal. -Ulta’s system goal is remaining successful as an in-store destination. According to their website, they are on a quest to bring the fun of “beauty to all”.

• The system uses a variety of mechanisms. These help the system maintain the system goal.-Ulta has their beauty loving associates, and their variety of products, their store aesthetic, and the overall experience working towards their experience.

CYBERNETICS SYSTEM THEORY• The last component is the feedback. This is sent to the control center and

compared to the goal. If there is a difference between the overall system goal compared to the feedback, new mechanisms will be instituted to adjust the behavior of the system according to our book Organizational Communication: Approaches and Processes.

System Mechanics

System Goal Target

System Feedback

KARL WEICK’S THEORY OF ORGANIZING

• The idea of this theory is that organizations exist in an environment. • Weick clearly states that this environment is not “merely a physical

environment but is an information environment”. • Individuals create the environment that confronts them through the

process of enactment. • This theory is highly complex and abstract.• Weick’s theory of organizing emphasizes a number of relevant systems

theory concepts. Our book states, “the notions of environment and permeability are critical to his theory, as is the concept of system component interdependence”.

“NEW SCIENCE” SYSTEMS THEORY

• Our book shows some new theories such as chaos theory, complexity theory, and self-organizing systems theory.

• These theories show a different way of communicating in organizations.• One of these is “the appreciation of organizational change and

instability”. • This argues that organizational change can be created by a group of

committed individuals or champions. • Ulta, recently having a new CEO, created change to the environment in

Ulta. For all of the associates, having no say in Ulta’s changes, had to appreciate and be ready for the change and handle it well.

METHODS FOR STUDYING ORGANIZATIONAL SYSTEMS

• There are three different research approaches.

-Network Analysis: This provides a means for creating and analyzing those maps of relationships A network consists of a system of links among components. This is useful in drawing and analyzing the maps that characterize organizational communication systems. -Modeling Techniques- Allows researchers to assess complex relationships among variables through the evaluation of casual models or to assess changes in organizational communication systems through the use of time-series analysis and related techniques. -Case Analysis- Suggests that the richest understanding of organizational systems can be obtained by closely observing specific organizations grappling with specific issues.

ULTA • Schuman believes that Ulta

is achieving its goal of being a destination for fun and friends.

• Similar to Starbucks, Ulta is now a destination and experience being a place people want to go.

• Ulta has a guest-centric, values-based, high performance culture.

ULTA• Ulta is a good representation of looking at your own lines of products and

to figure out ways to make it engaging and attractive. • Ulta believes they are on a quest to bring the fun of beauty to all. While

also offering a rewarding career to passionate, beauty-loving associates.

Our success is not only defined by what we are achieving, but also how we are getting there.

SUMMARY• How the systems approach to organizational communication works in

Ulta. • Methods approaches useful to organizational communication in systems.

• Network Analysis• Modeling Techniques• Case Analysis

• Looking at the three different systems theory. • The Cybernetic Systems theory• Weick’s Theory of Organizing• The “New Sciences”

QUESTIONS• What does Ulta’s headquarters or corporate look like?• How do they view their systems?• When having a new CEO taking over in 2013, was there a

notable change in their systems?• Which basic system property does Ulta specifically

identify with?

FUTURE RESEARCH• I noted that there was not much research on the higher

ups in Ulta at all. I found it very difficult to find a lot of information about Ulta’s systems specifically. • Systems can be very complex, and I am curious to learn

about these complex aspects specifically within Ultas organization. I am fascinated to learn about their systems and how successful they are. As well as their culture they uphold in the higher ups.

SOURCESMiller, K. (2012). Organizational Communication: Approaches and Processes(Sixth ed.). Lyn Uhl.Schuman, E. (2016, July 01). Think in-store is dying? Check out

Ulta Beauty. Retrieved October 6, 2016, from

http://www.computerworld.com/article/3088619/retail-it/think-in-store-is-dying-check-out-ulta-beauty.html