Amazon Case Study Assignment

Added on - 21 Apr 2020

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Running head: AMAZON CASE STUDYAmazon Case StudyName of the University:Name of the Student:Authors Note:
1AMAZON CASE STUDYTable of ContentsQuestion 1............................................................................................................................2References............................................................................................................................4Question 2............................................................................................................................5References............................................................................................................................7Question 3............................................................................................................................8References..........................................................................................................................10Question 4..........................................................................................................................11References..........................................................................................................................13Question 5..........................................................................................................................14References..........................................................................................................................16
2AMAZON CASE STUDYQuestion 1Classical political economy theory is used by Amazon in explaining its corporatereporting decisions. It is gathered from this theory that Amazon Company follows the concept ofLaissez-faire economic market that is a free market which needs less or no governmentintervention. Institutional theory can be understood as a theory that offers deep and highlyresilient social structure aspects(Wasko, 2016).Amazon considers the processes through whichstructures encompassing rules, schemes, structures, routines and norms that have turned out to beestablished as authoritative guidelines regarding social behavior. Considering corporate reportingdecisions of Amazon Company, it is observed that Classical political economy theory is derivedfrom a cluster of theoretical models which indicates that an individual perceives its surroundingthrough a set of improper cues and acting accordingly. Use of this model can facilitateexplanation of an investor’s decision regarding buying or selling decision of shares after AmazonCompany’s announcement(Orquin, 2014).This is for the reason that the investors will userelevant accounting information as input cues that take place on an input level particularly on:The type of accounting information usedThe type of accounting information that is not usedThe place and the way such accounting information is presentedInstitutional theory is focused on explaining that the institutional surrounding that can impactthe formal structures development of Amazon more profoundly in comparison to marketpressures(North, 2016).The theory explained that the major impact of institutional pressures isto enhance homogeneity of company structures within an institutional surrounding(Collier,2015).Amazon might not adopt similar structure of a different company due to three major
3AMAZON CASE STUDYpressures such as coercive pressures that is influence from companies that they are relied upon,mietic pressures to be identical successful forms taking place from increased uncertainty andnormative pressures that arrives from identical approaches of professional groups or associationbrought into the company. This theory makes sure that Amazon must be focused on developinginnovative structures which enhances technical efficiency in case the organization has earlyadopting nature and are legitimized in the environment. Institutional theory makes sure thatAmazon follows institutional theory in adopting formal structures of legitimacy that can decreaseefficiency along with restricting competitive position of the company within technicalsurrounding. After following this theory, Amazon noticed that there exist a high level ofcooperation and consensus n the institutional surrounding and moreover the company’sinnovative structure diffusion remained long lasting and steady(Fernando & Lawrence, 2014).However, the company must be aware that if the institutional environment is contentious adunfocussed innovative structures implementation will be tentative and slow.
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