Assignment on Finance and Economic Literacy- Amazon

Running head: FINANCE AND ECONOMIC LITERACY
Finance and Economic Literacy
Name of the Student
Name of the University
Authors Note
Course ID

FINANCE AND ECONOMIC LITERACY1
Table of Contents
Answer to question 1:.................................................................................................................2
Answer to question 2:.................................................................................................................5
Answer to question 3:.................................................................................................................8
Answer to question 4:...............................................................................................................11
Answer to question 5:...............................................................................................................12
Answer to question 6:...............................................................................................................13
Answer to 6A:..........................................................................................................................13
Answer to 6B:..........................................................................................................................15
Answer to question 6C:............................................................................................................15
Conclusion:..............................................................................................................................16
Reference List:.........................................................................................................................17

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Answer to question 1:
Introduction:
The Amazon.com, Inc., having headquarter in Seattle Washington is considered as
one of the pioneers and major company in the international e-commerce industry with cloud
computing industry. The company was founded in the year 1994 is regarded as the biggest
online retailer in the international market and has the highest market capitalization
(Amazon.com 2017). Having an employee strength of more than 341,400 across the world
and Amazon enjoys a mean revenue of approximately $135.98 billion and demonstrates a
continuous increase in the areas of operations. Amazon has been consistently reporting a
rising trend in the generation of sales, excluding numerous variations due to the exogenous
and endogenous purpose. The study offers an insight into the performance of the firm by
making use of the applicable industrial, economic and business theories.
Economic outline of Amazon:
The framework of operations and model of business is an instance of enormous
success for Amazon in the current world of business and are widely considered as a medium
of inspiration. As stated under the paradigm of structure-conduct-performance, the most
widely used business concept derives that the performance of the business for any firm
largely relies on the overall conduct and pattern of behaviour of the demand and supply side
players (Taussig 2013). This is ultimately determined with reference to the arrangement of
the industry under the domain where an enterprise functions. Amazon executes is business
functions in the international e-commerce market which is relatively new and has risen
significantly in the recent years with improved technological innovations and rise in the use
of internet among the people across the world. Expansion of e-commerce can be widely
attributed to the rise of globalization, which has made business practices across the countries

FINANCE AND ECONOMIC LITERACY3
more comprehensive. The market of e-commerce contained few big firms until recently these
firms started experiencing growth in the market share which ultimate lead to the creation of
oligopoly market structure.
Amazon is considered to be the forerunners in the e-commerce industry and is largest
among all the e-commerce firms operating in this industry. Amazon has been constantly
experiencing growth in respect of the geographical boundaries of functions, services and
goods offered and expansion of consumer base.
The organizational structure of Amazon contains numerous key features that have
backed considerably in the remarkable performance trends of the organization. One of the
significant aspects of Amazon is the globally functioned base of groups of the organization.
Amazon has dedicated set of team for its business functions that has assisted in appropriate
division of labour and increase in product specialization (Frank, Bernanke and Lui 2015).
Another business character of Amazon comprises of the international hierarchical structure
and geographic division of the operations of the firm that have assisted in efficient
management of the operational range across several countries.
The business conducts or the consumer behaviour trend is ascertained by the structure
of the company. Amazon has made investment in the creation of goodwill factor in the
market forming a significant component of the e-commerce industry. As amazon offers in
time and reliable service, the organization has been successful in attaining heights.