Change Management for Amazon: A Conversion to Brick and Mortar Model

This report discusses the change management process for Amazon to convert to a brick and mortar model. It includes an internal and external diagnosis, gap analysis, outcomes of the change procedure, overview of change models, description and details of the change, change intervention table, and conclusion.

Running head: CHANGE MANAGEMENT
CHANGE MANAGEMENT
Name of the Student
Name of the University
Author Note

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Executive Summary
The main aim of the particular report is to throw light on the subject of Change management.
The change management is considered to be a crucial part of the organization and it is for this
purpose that it becomes crucial for the firm to engage it through a model. The report is based on
the analysis of the Amazon. The company is a successful e-commerce business but the change
recommended in the report is a conversion to the brick and mortar model. The explicit details
like change agents, impact of the change, procedure and other details have also been provided. A
conclusion wraps the solution.

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Table of Contents
Introduction......................................................................................................................................3
About the company..........................................................................................................................3
Internal and external diagnosis (Current reality).............................................................................4
PEST............................................................................................................................................4
Internal analysis...........................................................................................................................5
Gap analysis.....................................................................................................................................6
Outcomes of change procedure.......................................................................................................7
Overview of change models............................................................................................................8
Description and details of the change..............................................................................................8
Resistance to change........................................................................................................................9
Change agents..................................................................................................................................9
Feasibility of the change and Assessment.....................................................................................10
Implications of the change.............................................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

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Introduction
Change is considered to be an essential part of the organization and with respect to the
dynamic business environment it is important that all the organizations undertake changes at
regular intervals so as to ensure that it is successfully able to engage in a continuous procedure
which involves various innovations as well as creativity in order to bring about better results for
the firm at large (Ginter, Duncan & Swayne, 2018). Hence, the primary aim of the given report is
to ensure that the concept of change management is well understood with the help of theoretical
concepts and practical references from the case of the company. The report will follow a
structured format whereby a brief background of the company will be followed by the internal
and external diagnosis of the firm which will assist in the representation of the current reality.
The gap which is existent in the organization will be analyzed along with the outcomes of the
change procedure. This will then be followed by the overview of the change and other
information like the change intervention and the change agent.
About the company
The Amazon.com. Inc. does its business as the Amazon and can be stated to an electronic
commerce business which engages in cloud computing with its operations based in Seattle,
Washington. The company was found by Jeff Bezos in 1994 and can be stated to be the largest
Internet retailer if measured as per the revenue and market capitalization. The business begun
with a model which was simply based on selling books as well as DVDs but then converted it to
various consumer electronics, clothing and all other products (Amazon.com, 2018). The
company has different websites for the different counties and thereby has brought in investments
in different dynamics like the Food market as well. Jeff Bezos has also engaged in Amazon
Prime which has got 100 million subscribers online. The aim of the report is to throw light on

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the processes which can be implied by the Amazon Company to bring about effective changes in
their workplace and innovate their business model.
Internal and external diagnosis (Current reality)
In order to understand the current scenario well and thereby predict a change for the firm,
the internal and external diagnosis will be done for the firm by making use of the Open System
model analysis and the SWOT Analysis.
The Open system model
Diagnosis can be described as a manner in which the change can be done in an
organization and the manner of understanding the manner in which an organization functions at
large. As an initiative of change, the manner in which the change needs to be carried out in a
firm needs to be understood and the focal point of the problem needs to be identified. Hence,
according to…, the process of this diagnosis needs to be carried out by the practitioner which
will assist it to address the problem at large.
Figure 1: The Open system model
(Source: Waddell & Sohal, 1998).

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The given open system model serves as a useful tool which goes a long way in assisting
the firm to ensure that it is successfully able to consider all the aspects of the business
environment in order to make the particular decision with respect to the change which has to take
place in the firm at large. The open model system comprises of three different steps which are as
follows:
Taking in inputs
The inputs can be described as the manner in which the organization gathers private
information about the different processes which take place in a firm at large and also describes
the sources with respect to which the changes are required to be made. The three sources of
inputs which can be taken are information, energy and people (Gill, 2002). This information
can be taken by Amazon in the form of a feedback which would then assist the firm in
understanding its overall performance. This will be then followed by taking in the information
from the different stakeholders as present in the firm and assists it to lay out the different
changes to be implemented at large (Doz, 2017).
Transformations
The stage of transformations goes a long way in assisting the firm to take the change
process. Amazon by using this model, in the previous steps, needs to gather the crucial data
about the change like the new business trends, capabilities of the organization, the strategy of the
competitors and other data which is available and then apply it so tht the change can be
implemented easily (Ivancevich, Matteson & Konopaske, 1990). In this case the change will
take place not only in the social consideration as well as the technological consideration.
Output

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The output of the chosen process will be the outcome of the transformation procedure.
The outcome in case of the change which will take place in case of the change as taking place
will be the establishment of the brick and mortar stores which will go a long way in assisting the
firm to combat against the competition as available (Hill, Jones & Schilling, 2014).
Figure 2: The Growth Rate of Amazon
(Source: Amazon.com ,2018).
Internal analysis
SWOT
Strengths Weaknesses
The firm operates on a low cost structure The firm does not have a found brick and

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The firms function on a basis of synergies
between the different operations of the
firm at large.
mortar base which will ensure success.
There are various competitors of the firm.
Opportunities Threats
The different opportunities are that it can
expand to a brick and mortar structure
which will ensure that the firm is able to
have a physical standing as well (Carnall,
2018).
The threat is that although Walmart has a
considerable offline presence, it has increased
its online presence which then allows the firm
to have a wider audience.
Therefore, it can be rightfully stated that the particular organization has already taken
considerable measures to ensure long term success but will be required to take steps to compete
with the different firms (Anderson & Anderson, 2010). The company has been performing
considerably well in terms of revenue and other measures but even then it would be required to
ensure that it is able to beat the particular competition especially against a giant like that of
Walmart
Gap analysis
Hence, from the given analysis as done on the overall operations of the particular
company it can be rightfully stated that Amazon is one of the largest e-commerce retailers as
present in the organization and it is for this reason that, it becomes important for the firm to
maintain its positioning in the market. Although Amazon is fairly popular with respect to the
online domain, it faces tough competition from the physical stores like Walmart and other such
giants. These companies often take up a large share of the global market and even though they

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are not present online, it tends to cause various issues to Amazon. Moreover, as observed from
the strategic analysis, it can be understood that even Walmart has planned to open stores online
and this can be a reason for serious concern on the side of Amazon (Aladwani, 2001). Hence, it
needs to understand that the main gap is present due to the lack of a brick and mortar store of
Amazon and this is where Amazon is required to work upon.
Outcomes of change procedure
The change which is being recommended to the Amazon is the implementation of new
business model which will be of a similar version to that of brick and mortar model as used by
Walmart (Goetsch & Davis, 2014). Moreover, the particular system will be quite systematized,
whereby the purchases can be done as per the convenience of the different customers and the
payment can either may be made in advance or after the customer has made the purchases from
the convenience of their homes. In addition to this, the customers will be offered various services
relating to that of free delivery, complimentary services and others. The outcomes of the
changes are as follows:
 It will help Amazon combating against the competition at the workplace.
 It will ensure that Amazon has a brick and mortar base which will help the firm to
perform well.
 It will also ensure that Amazon is able to gain a larger revenue base.
Literature Review: Overview of change models
Change is considered to be a rather difficult phase for the overall success of the firm and
it is for this reason that there are various change models available which shall allow the firm to

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transit through the particular process successfully. These change models are Lewin`s Change
Model and the Kotter`s 8 step change model. According to Kramer and Magee (1990), the
Lewin`s change model is a comprehensive change management model which comprises of three
main steps like Unfreeze, change and refreeze which allows an organization to make considerate
changes in the realm of the firm by changing the previous ways and then bringing about the
change which shall then be followed by the refreezing of the change and ensuring that new ways
of change are brought about in the firm at large (Hayes, 2018). In addition to this, there are other
change models which are also available like the Kotter`s 8 step change model which comprises
of eight different steps which will assist any organization in making considerable changes. These
eight steps ensure that a momentum is built and the organization is able to transit successfully
with respect to the change. The eight different steps as present are centered on gathering
momentum for the particular change which has to take place, which is then followed by the
choosing of the change agents. In addition to this, the different change factors need to be decided
upon which shall then be assisted by the implementation of the change management procedure.
This is then assisted by the controlling and the monitoring of the entire change procedure which
shall go a long way in ensuring the overall success of the firm. According to Waddell and Sohal
(1998), there are several other change models which are also available which are widely used by
the different firms such as the ADKAR Model which is based on the Awareness, Desire,
Knowledge, Ability and Reinforcement model which thereby assists the firm in ensuring that
they are able to gain a thorough understanding of the environment. Lastly, the Kubler Ross five
stage model is also a useful model which highlights the five different stages an organization has
to go through in order to carry out the change procedure and ensure that the different feelings of

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the members of the firm are taken care of and the members feel on the same page as the firm
during the change management procedure (Waddell & Sohal, 1998).
Description and details of the change
As stated earlier, as Amazon mostly had an online presence, the company has aimed to
ensure that it will be successfully able to bring about a change and transit into a brick and mortar
model as well along with its online base. Hence, the details of the change have been given as
follows:
1. Amazon will open a physical store which will be linked to the application and will make
use of virtual reality to serve the customers.
2. The application of the users will allow the different users to login to the particular store
and make their purchases by reviewing the purchases with their choice.
3. Moreover, the users can either pay using their Amazon Pay balance or pay later on but
will be provided the different users the facility to comfortably take their product home
(Kuipers et al., 2014)
4. In addition to this, the entire system will be connected to the application of the user and
will allow the mingling of the online as well as the offline store.
5. The different employees will now be required to ensure that they need to keep a check on
the availability of the goods in the stores and check that they tally well with the
availability of the goods as mentioned in the particular application.
Change Intervention Table
Underlying
Idea
Description Comments Role Contribution
of the
Change level

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interventionist
The
underlying
change idea
is that
Amazon will
add the brick
and mortar
model to its
business and
open up
some Brick
and Mortar
stores
This can be
used to serve
the different
consumers
using the
medium of
Artificial
Intelligence.
As amazon is
facing
considerable
competition
from
Walmart,
certain stores
to address
the same will
be set up.
The stores
will be
opened in all
the major
cities of the
world and
hence, based
on the
response,
further steps
will be
taken.
The role is
to guide the
organization
and assist
them in the
change
procedure.
The
contribution is
to underline
the different
changes which
are to take
place and to
ensure that the
change agents
play their
roles.
The change
level can be
stated to be
that of an
organizational
level. This is
because the
change will
impact the
entire firm
and with
respect to this
the change
level can be
stated to be
organizational
in nature.

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Resistance to change
Although the change which is being recommended is a common one and just an addition
to the business model is being made which will alter the processes and will allow the firm to
integrate its management system, there might be resistance to change with respect to the
employees and the investors (Krüger, 2018). The stakeholders form the primary concern of any
firm and their agreement is considered to be very crucial with respect to the overall operations of
the firm. Hence, they are required to be dealt with and they need to be presented with an analysis
which will help in deciding whether the decision to expand in this manner is viable for the
overall success of the firm or not. In addition to this, the business will also be required to ensure
that if the employees and the different investors show any resistance then they are allowed to
understand the entire scenario and thereby ensure that they are in involved in it. Moreover, it is
also important for the firm to clear their doubts beforehand and see to it that they are successfully
able to carry on with the particular change procedure.
Change agents
The different change agents who are being selected for the firm are as follows:
1. The CEO: The CEO of the organization will be acting as the primary change agent who
will then be able to successfully ensure that the different members of the organization are
willing to undertaking the particular change process (Orlikowski & Hoffman, 1997).
2. The senior management: The senior management is also required to act as change agents
because the different members of the firm often look up to them and with respect to this it
becomes for the firm to ensure that they are the change initiators (Todnem By, 2005).
3. The Human resource management: The Human resource department is the department
which is responsible for the management of all the employees and it is thereby their

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responsibility to ensure that the employees are a part of the change management
procedure.
4. The departmental heads: The different departmental heads also form an integral part of
the firm and for this reason it is important for them to ensure that they are the change
agents.
Feasibility of the change and Assessment
As per the analysis, it can be estimated that the change which has been proposed for
Amazon, has been proposed considering the present scenario. It needs to be understood that the
firm has a particularly good standing in the external environment and is one of the most popular
e-commerce firms as present in the global market (Robson, 2015). However, the company is
facing adequate competition from the physical counterpart which is Walmart. Hence, when the
suggested brick and mortar model will be implemented by the firm then it will be successfully be
able to combat against the particular competition in hand and will also be able to make use of
relevant artificial intelligence technology in order to bring about the physical and the e-
commerce platform together (Waddell & Sohal, 1998). The different ways in which the program
can be assessed is by using the given Key Performance Indicators:
1. Return on Investments: This Key performance indicator will help in the measurement of
the different investments which will be made in the organization and also help in
assessing
2. Net sales: This key performance indicator will help in understanding whether there has
been a considerable increase in the sales of the firm or not (Wheelen et al., 2017).
3. Increase in customers: This indicator will help in understanding whether the number of
new customers of the organization have increased or not.

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4. Satisfaction rate of employees: This will help in understanding whether the employees
are satisfied with this change which has taken place in the firm. Moreover, this ensures
the success of the change procedure.
5. Number of orders: The number of orders received also serves as a good measurement of
the change success.
Implications of the change
The positive implications of the change will be as follows:
1. Will bring about the increase in revenue for the firm at large.
2. Will assist in ensuring that the firm is able to combat against the competition and ensure a
positive change for itself (Worley & Mohrman, 2014).
3. Moreover, it will also ensure that the change will uplift the brand image of the firm.
The negative implications of the change are as follows:
1. It tends to put a stress on the finances of the firm.
2. It may lead to employee relations problems within the firm.
3. The share prices of the firm might change as per the outcome of the change.
Conclusion
Therefore, from the particular analysis it could be understood that change management
forms an integral part of the organization and that the different members as involved in the firm
need to be considerably involved in the change management process. The report undertook the
case of Amazon and in consideration to the same, it was recommended that the firm is required
to undergo a change in its business model and thereby adopt a model which is related to the brick
and mortal model using which it will be able to address the existing competition against

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Walmart. The report follows a systematic structure where the introduction is followed by the
company information and the integrate details of the change. This is then followed by the
feasibility as well as assessment of the change.

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