4.1 Formal Structure of organization
With so many variety products and services, Amazon has a divisional structure. In a divisional structure, dissimilar departments for variety products and services enable department heads to correctly focus their capital and results, as well as keep an eye on the organization's performance. This structure is best for such a big organization because it is generally flexible. Amazon's organizational structure is virtual sense the internet enables individuals (or entities) to cooperate with each other to trade goods and services in such a stuff that the upper echelons of the corporate structure have some degree of omission. Amazon is a networking unit. Amazon's online structure enables sellers and
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The company’s progressing success in intensifying its business is a sign of the appropriateness of this organizational structure. A benefit of geographic divisions are advantageous in supporting focus on online retail market concern and correlated economic circumstances in certain regions, such as North America.
Amazon’s organizational structure also has weaknesses. A company comprise of challenging divisions may let office politics instead of sound strategic opinion to influence its sight on such matter as provision of company resources. Thus, one division will occasionally act to destabilize another. Also, divisions can bring compartmentalization that can guide to incompatibilities.
4.2 Decision-Making
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The end result of this is slowness, unthoughtful risk aversion, failure to experimental sufficiently, and consequently diminished invention. By make decision in type one is the big mistake in doing decision. They try to not make the decision without make analyzing the problem completely. This decision will make Amazon company learn on mistake that they do by decision making process.
Lastly, the decision that been used by Amazon company make the company stick with their aim to be the best E-commerce company in the world. Jeff Bezos the CEO of Amazon company have the big responsible to make decision in the company.
5.0 Leadership
Different types of leadership styles are present in work environments. Advantages and disadvantages are within each leadership style. The traditions and goals of an organization decide which leadership style fits the firm best. Several companies offer several leadership styles within the organization, dependent relatively upon the essential tasks to complete and departmental
Dabo Swinney: A Transformational Leader Leadership is a very important part of having a successful organization. A strong leader brings a vision, and provides the motivation needed to unite a group bring them to achieve a common goal by aligning the organization to its vision. Good leaders are inspirational and charismatic they lead their organization through the internal and external changes that occur (Gupta, 2009). Dabo Swinney, the head coach of the Clemson Tigers football team is an exemplary example of a strong leader.
The organizational structure can be seen as an outline of what branch of a company is to carry out
The business model of Amazon ensures that the product is available for the customer at the best possible price. The fast shipping strategies also ensure customer satisfaction. These aspects offer an excellent value proposition to the customer. Since Amazon is present globally and is successfully into business for a long time period, the strategies of Amazon are sustainable.
Today, many people prefer to order products from Amazon instead of going to stores or malls. c. DESCRIPTION OF MY SUBJECT (AMAZON.COM): Amazon (Amazon.com) is the world’s largest online retailer and a prominent cloud services provider. The company was initially a book seller, then later it expanded to sell a wide variety of consumer goods and digital media as well as its own electronic devices, such as the Kindle e-book reader, Kindle Fire tablet and Fire TV, a streaming media adapter (Rouse, 2018).
Many states within the United States have passed online shopping sales tax laws which have been designed to compel Amazon and other e-commerce retailers to collect both state and local sales taxes from their customers. In 2011, it was noted that Amazon only collected sales tax from five states, however in April of 2017, it was said that the company must collect sales tax from consumers in all states that currently have sales taxes. ANALYSIS OF STRATEGIC FACTORS In a December 2011 article written by Forbes contributor, Venkatesh Rao, he states that “the company [Amazon] is nothing if not deliberate and systematic in everything it does.” Rao goes on to say, unlike the other big companies that symbolize our times – Google, Apple, Facebook and Microsoft, Amazon did not rise to power by inventing a new product or service.
Some of these efforts are the planned building of its disaster recovery data farm in Canada and construction of more fulfillment centres in Asia, Europe and the rest of the world (Amazon, 2018a). Diversification is another strategy that Amazon has employed in improving its market stocks and money earned. Amazon Web Services (AWS) is a good example of diversification strategy employed by Amazon in order to increase its revenue and market shares.
Analyze Amazon.com using the competitive forces and value chain models. How has it responded to pressures from its competitive environment? How does it provide value to its customers? a) Competitive forces analysis i) Entry of competitors It is easy for competitors to enter the market by establishing an e-shop and Amazon laid the groundwork for competitors (Flat World Business, n.d).
Tesla’s current organizational structure includes three main features • Global hierarchy - Global hierarchy refers operational offices are set oversees for international business, it allows Tesla to control their operations internationally. (Dyer & Gregersen,2016) • Chairman & Chief Executive Officer • Chief Financial Officer • Chief Technology Officer • Vice President – Vehicle Engineering • Vice President – Powertrain Operations • Vice President – North America Sales • Chief Designer • Vice President – Manufacturing • Vice President – Autopilot Hardware Engineering • Vice President – Worldwide Services & Deliveries • General Counsel • Global centralization - Global centralization is the structure which allows Tesla can control the whole
5 – Main risks going forward for Amazon.com are to loose its competitive advantage because of opportunities that Internet offered to its competitor : low prices, deliver, costumer’s service, etc. Moreover, if the business develops, it may encounter logistical problems and limits : geographical and logistical constraints (energy, delivery and connection and some contries) and legislative constraints (censorship, taxes and state agreement : Corea, Sri Lanka, Indonesia, etc). Founded in 1994, Amazon started as an online bookstore and quickly became popular as it received high marks on several Internet rankings. Today, Amazon.com, Inc. is the world's largest online retailing company headquartered in Seattle, WA
Amazon’s competitive strategy is cost leadership. Amazon has achieved a lot on a great scale that it gets the best prices from its vendors so they can operate in very flexible and thin margins and sell their items easily at retail prices and make money. They also provide shipping products for a reasonable cheap price. They also have improved their warehouses by giving some space to other sellers who want to sell their items through Amazon. They differentiate and provide better quality than their competitors across the industry.
finishing goods, order handling, delivery, dispatch, invoicing; Sales & Marketing for example customer management, order taking, promotion, market research, sales analysis; Servicing for example warranty, maintenance, education and training. Support activities of Amazon include administrative and finance infrastructure; human resources management; product & technology development and procurement. This leads to less cost and more profit margins. The Walmart value chain is also almost the same except there are physical stores involved in between while Amazon has everything through online platform.
Amazon is a domination force that all other retailers have to compete with and they will only get better. When they began to dominate the market, some retailers followed suit and increase their online presence like Walmart and EBay. They even began to lower their prices to compete with Amazon. This resulted in several other retailers, who did not
It acts as an operating manual that defines the way the jobs are distributed and how individuals interact within the company to achieve their goals (Distelzweig, 2004). A detailed study on organizational structure relates organizational structure to the way information flows through the hierarchical arrangement. There are basically two types of organizational structure; centralized and decentralized. In a centralized system the highest layer of hierarchy is responsible for decision making and controlling departments and division.
The company also promote aggressiveness among employees and because of that, the employees consider each other as competition and not as a team. Since the social context is becoming really important, Amazon is forced to change their corporate culture. Their culture had brought a lot of success to the company, but it is now however time to change towards a positive environment and a positive culture that
There are many different type of Leadership styles. Different types of leadership styles exist in work environments. ● Laissez-Faire- A laissez-faire leader does not give direct supervision of employees and does not provide regular feedback to those under his supervision.