Amazon’s Operations Management and Decision-Making Models

AMAZON’S OPERATIONS MANAGEMENT AND DECISION-MAKING MODELS 1
Assessment - Amazon’s Operations Management and Decision-Making Models
Date:-
Name of the student and student id
Rahul Gupta 132131
Name of the School
Kaplan Business School, MELB.

AMAZON’S OPERATIONS MANAGEMENT AND DECISION-MAKING MODELS 2
Executive Summary
The following report entails the operations management of Amazon Retailers with
a major focus on its growth from the online retail book store to “Everything Store “across
the world. The report focuses on the innovations, persistence and supply chain management of
the store in enhancing its global operations and its impacts on the Australian retail
industry. Consequently, the reports also explore the existence of in-person shopping experience
even though online shopping among the global population.
Question 1: Amazon began as an online book retailer. How has it grown to be
known as the "everything store."
Amazon begun in 1995 as an online book retailer and over decades it has grown into
‘everything store’ as a result of the innovativeness on consumers wants and likes as well as
entrepreneurship of the founder Jeff Bezos (Morrison 2018, p.787). While opening in 1995, there
were several bookstore chains such as Crown Books, Barnes & Noble and Waldenbooks that
were in the storefronts in American shopping malls thus Amazon launched itself through major
book distributors and wholesalers to fill its orders thus having a well-established supply chain.
Amazon innovativeness skills and adaptability to the technological advancement facilitated the
success of the bookstore to embrace e-commerce that enabled its expansion across borders and to
diversify its products.
Amazon’s culture of critical thinking has enabled the employees to be more creative in
everything they do. Though the founder, Amazon culture is more of idiosyncratic thus
employees always write six-page narrative laying out their points on customer’s perceived

AMAZON’S OPERATIONS MANAGEMENT AND DECISION-MAKING MODELS 3
perceptions on new intended products before every meeting. The aim of this is always to think in
the customer’s mind to us to understand the likes and dislike of the customers. The written
narratives always read silently at the beginning of the meetings, and after that principle of’
productive-thinking’ applied. The meeting discusses every possible way out thus meeting
customers’ expectations. (Murrell 2014) As stated by Silva and Ferreira (2014, p.515) great
organizations are transformed through the unchanging core principles and flywheel culture of
continuous innovation and improvement; this has enabled Amazon to grow beyond expectations
The global technological advancement transformed both consumers’ and business’ way
of interaction; thus Amazon focused on the computer systems in early 20000 when it realized it
was a gold mine to online power shopping. The dream was practically facilitated by a partnership
with other companies such as Apple’s iPhones apps that enabled the creation of the Amazon
Web Services. The computing infrastructure has enabled Amazon to adapt to the consumer’s
behavior on the new technology, thus has launched an advertising technology on Facebook’s and
Google that allows the shop to identify potential customers based on their likes. Through this
Amazon has well understood the target market thus focuses on producing the most wanted goods
about consumers taste and preferences thus keeps on increasing its sales.
Currently, Amazon Web Services has conquered more than 60% of people’s daily lives
as the services allow consumers now to order books wherever they are, get the deliveries, make
payments and read on online platforms such as Kindle e-reader app. This has offered an
advantage to both customers, and the business as a large number of sales are made, the customers
too feel more convenient in interacting with the bookstore. The ideology has been diversified
into other consumer goods such as jewelry, entertainment assets, and groceries among many

AMAZON’S OPERATIONS MANAGEMENT AND DECISION-MAKING MODELS 4
others thus becoming “Everything Store” since most of the consumers’ products and services are
available within the store (Raw 2015, p.194).
Question 2: What aspects of Amazon's operations management are based on the
increased globalization of world trade?
Operations management focuses on the planning, designing and controlling the
production process to have high-efficiency products and services to maximize profits as well as
the expansion and growth of an organization. Amazon operation management is founded on the
amplified globalization of global trade. Amazon’s operations are based on different forms such
as locational, exchange and informational operations styles, and all these aims at using the
available resources to offer the best service at lower cost and higher profit to the organizations
(Harvey, Heineke & Lewis 2016, p.5). Due to recent globalization due to different forces such as
trade barriers, communication, market saturation, and cheaper transportation means, Amazon’s
operations management transformed to adapt to the system thus leading to the globalization of its
operations.
Digitalization has enabled easy global transportation of goods and services. Currently,
Amazon can digitalize its transportation operation that has impacted supply chain management
of goods from store to various customers with no or reduced distribution and transportation
costs. Large numbers of consumers can choose music, books jewelry and other goods from
anywhere in the world and receive the services without any physical movement through the use
of internet of things.