Organisational Structure and Stakeholder Analysis of Amazon

This report discusses the Organisational structure and stakeholder analysis of Amazon, including its main purpose and values, ethical practices, and public policy and legislation. It also covers the two forms of social identity of Amazon and the globalization theory.

LC565
Understanding the
Work Environment I

INTRODUCTION
Organisational structure outlines how the activities like task allocation,
coordination and supervision are directed and performed effectively for the successful
achievement of Organisational objectives. It influences the actions of organisations and
provides basis for performing standard operating procedures and routine activities of the
business (Niblock., 2018). organisations need to create value for all its stakeholders.
Especially for the customers, businesses need to create value to develop a large
customer base and attain customer loyalty (Galuchi., 2019). In this report, the chosen
organisation is Amazon. It was first started by Jeff Bezos in 1995. Initially, Jeff Bezos
expanded an online marketplace for books into a multitude of product categories that has
been categorised as an Everything Store. It is an American multinational public limited
technology company engaged in E-commerce, cloud computing; headquartered in
Seattle, Washington, USA. As of 2021, it is the largest online retailer in the world dealing
in consumer electronics and other services such as Amazon music, Amazon prime etc.
with multiple subsidiaries including Amazon web series, Amazon Lab126 and whole food
markets etc. The main aims of Amazon include desire to become world's most customer-
centric company. Its mission is to enhance customer experience by the use of internet
and technology to facilitate the customers in searching and purchasing anything as per
their requirements and preferences. Amazon's key stakeholders are investors,
employees, directors, shareholders customers etc. Its Organisational structure is
classified as functional that includes global hierarchy, global groups based on function
and geographic divisions as well. The report will cover Amazon's Organisational structure
and stakeholder analysis. It will also cover its main purpose and values and ethical
practices followed in the organisation.
TASK
Main purpose and Goals of Amazon
Every organisation has some goals and target to accomplish and to be stable in
the market on a long-term basis. organisations need to attract customers by adopting
advance technology and develop a large customer base. For this, they need to strive for

enhancing customers' experience and attain customer loyalty. The main goals and
purpose of Amazon are as follows :
 To serve the customers with its online and physical stores and put emphasis on
selection, price and convenience.
 To be the world's most customer centric company by developing a large customer
base and facilitating the customers in searching and purchasing online.
 Its mission statement states that they strive to offer their customers the lowest
possible prices and the best available selection with efficient convenience.
 Its main vision is to become an international leader in the e-business marketplace
(Amazon Mission, Vision & Values, 2022).
Organisational Structure in Amazon
Organisational structure is a way to divide and organise the activities of
organisations and maintain coordination among that activities. (Osunnuga., 2020).
Statutory organisation means an organisation that has the authority to check that the
activities of any business or organisation are legal and comply with the official rules. Non
statutory organisations are those that are not regulated by law and their existence and
authority is not set out in any legislation. They are privately owned business. As Amazon
is a privately owned business, it falls under the category of non statutory organization. In
context with Amazon, its Organisational structure plays a crucial role in the company's
success apart from its service and customers' experience. Its Organisational structure
facilitates the top-down control on global e-commerce operations. The company is
operating with different functions in its multiple business areas.
The company follows functional Organisational structure as it is operating in
multiple business areas and the company focuses on developing relationships and
interaction between its different business components and divisions. The businesses with
more global reach follow hierarchical structures like that of Amazon (Gorasia., 2020). In
its case, the hierarchy is explained on the basis of global system of clear lines of authority
that have a great impact on the operations of organisation.
For example, the power of Jeff Bezos (CEO of Amazon) vests at the top exercising
control above all the senior executives and managers who have powers to provide
directions through different sectors and business divisions at their own discretion or on

the basis of directions provided by the CEO. Its hierarchical structure facilitates complete
managerial control throughout the organisation that consists of multiple product lines and
business divisions.
Amazon efficiently and successfully manages its e-commerce operations because
of its functions-based global group structures. These structures facilitate the company to
establish its operations in the emerging markets. Apart from the CEO, its primary global
groups are Andy Jassy- CEO of Amazon web services; Jeff Blackburn- SVP of business
and corporate development; and other finance head, consumer head and legal head etc.
Stakeholders in Amazon
Stakeholders of the organisation mainly consist of its customers, investors,
shareholders, government, employees etc. They encompass all individuals or groups that
have interest in the performance of the company and who are impacted by its operational
performance and success as well (Izurieta.,2021). In context with Amazon, its
stakeholders have power to impact its strategic as well as non strategic decisions. But
they have not the same level of influence in the company because of the degree of their
power and interest. The main internal; stakeholders of the company consist of officers,
Directors, Employees and Shareholders.
Its Officers consist of CEO, chairman of board, vice president and CEO of Amazon
web services. As regards shareholders, they are the most powerful stakeholders of
Amazon who have a strong influence on the company's operations. Its major
shareholders are Jeff Bezos, vanguard i.e. an investment management company;
Mackenzie Bezos and Blackrock i.e. an institutional trust company etc. Jeff Bezos has a
large control on company as he has large number of shares as he is also founder of the
company. Other stakeholders consist of its employees. The company has almost 800000
full and part time employees.
The external stakeholders of the company consist of customers, competitors,
online sellers , local communities and government as well. Almost 195 million customers
visit the company's website i.e. Amazon.com every month. The company takes the
complaints of customers in a sincere manner due to which it has developed a loyal
customer base by enhancing their experience (Gelfand., 2018). Its biggest competitor in
the e-commerce industry is ebay. The Amazon web services compete with Google cloud

platform, IBM cloud etc. Some of the major and common competitors of Amazon include
Netflix, You tube Apple TV plus etc. The online sellers are also influential stakeholders of
the company as they provide the company with customers and without them, the business
of Amazon is unsustainable.
Organisational Values and ethical practices
Organisational Value
Organisational value refers to the guiding principles that provide an organisation
with a goal or purpose and provide its business a direction as well. These core values
help the companies in managing their interactions with the employees and customers as
well (Jambawo., 2018). In context with Amazon, its core values are explained below :
 Customer obsessed leaders : The first principle of Amazon is to start with the
customers and then concentrate on other things. They focus on creating value for
the customers through the value proposition of the company.
 Emphasis on highest standards : Amazon put emphasis on highest quality
products, reliable services and degree of excellence in the routine operations. The
company focuses in addressing the problems immediately and completely
including the feedbacks of customers as well.
 Leaders earn trust : Amazon keeps itself in high standards as the company makes
efforts to be trustworthy in all things and demonstrate the image of true integrity
(Core Values of Amazon, 2022).
Ethical Practices
Ethical practices refer to the application of ethical values in the Organisational
behaviour. It includes a good Organisational conduct such as corporate governance,
employment practices , stakeholders' relations , positive working environment for the
employees ( Bhat., 2022). In context with Amazon, it focuses on promoting a safe and
healthy workplace for its employees. It creates a positive and safe working environment
free of harassment and danger. Amazon supports the ethical missions such as “The
Climate Change” and determines to become 100 % renewable by the year 2025. The
company has also made donations to support the racial equity, STEM programs and the
customers with disabilities.

Public Policy and Legislation
The government of every nation establishes policies for providing guidance to the
businesses. It makes changes in the fiscal policies such as taxes, trade, subsidies,
interest and inflation rates, regulations etc. Businesses must be flexible to manage the
impact of changing rules and policies (Gómez-Vírseda., 2020). The companies must also
follow the applicable legislation in order to comply with laws of the nations and laws of
other countries as well where it has operations in.
In context with Amazon, it operates in online retail shopping industry. The company
needs to comply wit several laws such as Health and safety law to ensure safety of its
employees; minimum wages act law to ensure proper distribution wages among its
workforce. Its public policy team considers all international; legislative and regulatory
policy process. Such as the company Amazon, in its UK based locations and
warehouses, follows the policies and regulations of UK such as Health and safety act,
1974 to provide safe working conditions to the employees and create positive working
environment. It also follows Equality Act to treat the employees from different
backgrounds in equal manner. The company also comply with GDPR (General data
protection regulation), 2018 to ensure safety of the personal data of employees. It must
ensure the use of information in a fair and transparent manner. It maintains relationships
with main legislators and regulators and advocacy groups on a global basis to support its
business and product goals as well. It directs its employees to act lawfully and ethically.
Two forms of Social identity of Amazon
Ethnicity
Ethnicity refers to the behaviour of a group of persons in which the members
identify one another by the factors like common heritage, culture, language, geographic or
national origin etc. and conduct the business activities in a collaborative manner without
being discriminated or creating any racial issue. (O’riordan., 2022). In context with
Amazon, 70 % of its executives in the US are white , 20 % consists of Asian and other
combined 8 % have been identified as Black (Amazon data shows Black, Latino and
female employees, 2022). But the company does not at all discriminate with any
employee group, its environment is free from any harassment and conflicts. As the
company recruits individuals from diverse backgrounds from around the world with its 13

affinity groups (Employee resource groups), it ensures respect and value for people from
all backgrounds irrespective of their gender, ethnicity, religion etc. The company promotes
a positive working environment for all its employees.
Gender-based Equality
Amazon is identified as a committed organisation for gender equality (Amazon
further strengthens commitment to gender equity, 2022). Its commitment for gender
equality is established in its governance framework and decision making. As part of its
commitment, the company has signed the United Nation's Women Empowerment
principles. It has been done to promote gender equality and to empower women at the
workplace and in global community. Amazon has also invested 1 million dollar in
Resilience Fund for women in Global value chains that aims to make long term
investment in the health and well being of women who are foundational to global value
chains. This fund provides the benefits like economic resilience, health and well being of
women and ensures a positive working enviroenment for them.
Evidence from other similar organisation
There are many other similar organisations like Amazon such as Ebay, Walmart,
Alibaba, Flipkart, Otto etc. that have their influential stakeholders and that follow their
Organisational structure according to their business divisions and scale of business.
These business organisations are similar to Amazon in terms of business operations,
online retailing and product and services etc. They also share the same customer base
with Amazon and are the major competitors of Amazon. For example, Ebay is also an
American multinational e-commerce corporation headquartered in California, US. It is also
engaged in providing online shopping services worldwide like Amazon. Ebay also does
not possess any legal power from any statute and is also a non statutory organisation.
In contrast with Amazon, the main aim of Ebay is to be the first to attract the
emerging markets and new communities across the world on commerce. Like amazon, its
objective is to attract new users and develop a large customer base thereby. As regards
Organisational structure, it has business type multi divisional Organisational structure.
Like Amazon , it has different stakeholders like customers, online sellers, employees
government etc. As regards ethical practices, Ebay has been recognised as one of the

world's most ethical companies that ensures safe working conditions for its employees
and ensures gender equality as well at the workplace.
Globalization Theory
Globalization is a theory that aims at integration of the current events on an
international basis with respect to development, economic conditions, political and cultural
influences. This theory aims at easing the trade operations of multinational organisations
like Amazon and releasing of some fiscal policies and providing support for cross
boundary transactions (von Hoffmann., 2020). In context with Amazon, globalization has
following theories :
 The Hyper globalist approach : It states that the world is entering a Truly Global
Age and providing legality to Global capitalism. It defines globalisation in terms of
an open market. It put focuses on cultural interaction through global interaction
where there is no cultural distinction or physical borders between the nations
(Killean., 2020).
 The Transformational approach : It puts more emphasis on transformation and
provides agreement for hyper globalist theory as well. It also focuses on global
interconnectedness and pervasive nature of globalization process. It promotes
economic, cultural and political integration and provide advantages to the business
organisations by being part of the global world (Chatterjee., 2021).
In context with Amazon , it encourages its shoppers to purchase the products from
outside their domestic market. It has developed a strategy that includes globalization will
allow its customers to facilitate shopping in 25 currencies. And now the company has
become a global conglomerate. It has also been benefited by globalization as it directs
the customers for purchasing from other than domestic markets and thus it contributes to
the economy in major way. Globalization has impacted the customers in terms of increase
in product variety from international e e-commerce retailers, high quality commodities with
reasonable prices, free flow of technology and improved lifestyle.
CONCLUSION
From the above discussion, it has been concluded that the business organisations
follow proper and suitable Organisational structures so as to provide consistency and
smoothness in business operations. The Organisational structure of Amazon has been

discussed that provide advantage to the company in terms of goals achievement. The
company has followed functional Organisational structure so far according to its multiple
business functions. It has clear Organisational goals to increase its customer base and to
become an international leader in the e -commerce marketplace. It has been observed
that the major stakeholders of Amazon are its Shareholders consisting of Jeff Bezos and
other big investment groups. The company has other stakeholders as well such as its
large employee base and online sellers that provide advantage to the company by
contributing to its desired goals. For creating a positive working environment and ensuring
ethical practices in the organisation, organisations develop their own core values for its
brand image and for creating value proposition for the customers. Such as Amazon
follows customers obsessed leadership and puts emphasis on high standards where
leaders focus on earning trust. As regards the ethical practices of Amazon, it has been
reflected in the report that the company develops an ethical business environment and
ensures safety of its employees and promotes their welfare, the company promotes
harassment free and conflict free environment in the organisation and promotes gender
equality as well. The Organisational structure and ethical practices of its similar
organisation has also been explained with the globalization theory in context with
Amazon. The two forms of social identity viz ethnicity and gender equality have also been
discussed with reference to Amazon.

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