Amazon’s Operations Management and Decision-Making Models

AMAZON’S OPERATIONS MANAGEMENT AND DECISION-MAKING MODELS 1
Amazon’s Operations Management and Decision-Making Models
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AMAZON’S OPERATIONS MANAGEMENT AND DECISION-MAKING MODELS 2
Question 1: Amazon began as an online book retailer. How has it grown to be known as the
"everything store"?
Amazon that was funded as an online book retailer in 1995 by Jeff Bezos has grown over
the past deceased to be commonly known as the: Everything store” since the founder was not
satisfied with just being a bookseller thus work so hard to enable the store to provide a limitless
selection of low pieced products(Morrison, 2018,p.787). While starting the business of online
book retailers there were other born sellers such as Crown books that offered stiff competition,
however, since Jeff was more creative, Jeff identified a business opportunity by selling books
through emails. The leadership skills exhibited by Jeff over the employees enable the retail shop
to develop customer-centric behavior, persistence as well as innovativeness.
First and foremost, Amazon relentlessly developed its infrastructure and technology to
facilitated product districting and shipment across various destinations. The good technological
infrastructure provided retail shop with a good competitive advantage over competitors. The
introduction of Amazon Web services enhanced the market strategy of the retail shop by 60%
since a large number of customers were able to place their order and get delivery irrespective of
their place of ordering(Ruvio, Shoham, Vigoda-Gadot & Schwabsky, ,2013,p.1006).. Other
technological applications that enabled the operations of Amazon retail were grocery stores,
online clothing, and footwear as well as Zappos. Other technological
Amazon utilized the importance of rapid and speedy product delivery earlier than
competitors. Through the opportunity, Amazon was able to build 100 different warehouses
across the US lone to reduce the time of delivery and later in other countries. Through predictive
thinking, Amazon was able to determine and predict the customer's needs and deliver them in

AMAZON’S OPERATIONS MANAGEMENT AND DECISION-MAKING MODELS 3
various warehouses even before the potential customers order the products. The speedy delivery
was facilitated by the development of technological devices such as drones, designed specifically
to deliver produced in 30 minutes within the operational environment.
Amazon has a well-developed customer-centric culture. This enabled all the employees to
offer good experience and satisfaction to the potential customers thus led both improved sales
and loyalty (Mandel, Rucker, Levav & Galinsky, 2017, p.133). The retailer shop ensured that
before every development and introduction of each product, all employee write up a report on the
customers’ perceptions on the product, and the various reports discussed to come up with the
best product and service that will ultimately fulfil the customer needs.
Lastly, Amazon persistent has enabled it to overcome the numerous challenges faced
during the diversification of the products and services. Due to Jeff’s innovativeness skills,
Amazon embarked into numerous technological growth and product and service development.
Despite losing straight confrontations with other global retailers such as Alibaba, Amazon was
able to include other consumer product such as grocery, fresh foods and diversify into other
markets such as Indian (Mofokeng & Chinomona, 2019,p.11). The diversification spirit thus has
enabled the store to have the capability to provide almost all consumable and non-consumable
products under one roof, thus winning the name “Everything Store.”
Question 2: What aspects of Amazon's operations management are based on the increased
globalization of world trade?
Organizational operations management focuses on controlling, planning, and designing
all the production and service process to realize the objectives. Globalization has changed the
operations management of many organizations due to the agility need for the business ((Harvey,

AMAZON’S OPERATIONS MANAGEMENT AND DECISION-MAKING MODELS 4
Heineke & Lewis 2016, p.7). Amazon’s operations management aspect that is based on
globalization is Information transfer and management; Supply chain Management and Customer
relationship management.
The current global digitalization has dramatically changed Amazon’s operations management.
The digitalization has facilitated the communication between the customers and the Retail shop.
The retail shop usually engaged the consumers through the use of email, however, with the
introduction of Enterprise systems such as Enterprise Resource Planning, Amazon’s customers
are now able to make orders with quick response, Amazon can control all the industry and
management collect customers information(Raw, 2015,p.196).
Globalization has increased the number of Amazon’s customers. Thus the company needs
better inventory management to ensure efficiency of goods and services .the inventory
management focuses on maintaining optimal inventory ordering and holding through the
application of just-in-time inventory. This enabled the shipment of goods that arrive in the
company to various customers to fulfil the development of the already placed order of
technology has changed the distribution and supply chain of the retail shop(Teichmann &
Schlippenbach, 2014,p.55). The retail shop majorly depends on the warehouses as the basis of
their product delivery. However, the technological advancement has enabled the usage of drones.
The use of ‘Amazon Prime Air’ has reduced the time taken to deliver packaged light products
within the operational environment.
Through the use of Internet of Things, Amazon can track and control all the shipments of
the products that are being delivered overseas. The application of the IoT has reduced the cases
of customer’s product loss as well as for late delivery since the system can provide real-time