Principles of Management: A Case Study of Amazon Inc

This case study analyzes the principles of management adopted by Amazon Inc. It discusses their organizational culture, managerial style, and key terms and principles. The study provides recommendations to enhance their performance in the competitive market.

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Principles of Management
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Table of Contents
Introduction................................................................................................................................2
Background of the Company.....................................................................................................2
Managerial Style and Organizational Culture............................................................................2
Key Terms and Principles..........................................................................................................3
Recommendations......................................................................................................................4
Conclusion..................................................................................................................................4

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Introduction
The management of the company can be well-defined as the set of decisions as well
as activities which fallouts in the construction as well as the execution of the strategies that
are intended to attain an objective of the company (Cameron & Green, 2015). Amazon is one
of the leading companies in the international market. Their effective management strategy
made the company more powerful in the competitive market. One of the leading companies
Amazon is having a vigorous brand status as the company that stands 43rd rank amongst the
top brands around the world in the year 2009 (Smith, 2017). Amazon has faith in that
invention is the power to carry the changes in the international market so it continually
innovates to attract the consumers. They have adopted effective management in their
company that boosts their business in the market (Keith, Tay & Harms, 2017).
In the following part, there will be a detailed analysis of the management of the company that
made their business successful and the way they can more enhance their performance to lead
in such a competitive market.
Background of the Company
Amazon Inc is the leading international company in the e-commerce industry that was
originated by Jeff Bezos who is deliberated as one of the top pioneering executives in the
global market. The company has started its business as a bookstore through online as well as
prolonged with the period to trade almost entirety. The main part of an evidence scheme in
such business is a foremost character due to the reason the business is one of the online
retailers. The company has started its online store for books that have changed and expands to
sell everything which includes auto parts, beauty items, electronics, groceries, as well as
apparel (Amazon, 2015).

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The success of the Amazon in the competitive environment of e-commerce has
substantially resulted from the ability of management to understand the importance of
research dependency theory when they are dealing with their dependence on other companies
for the scare resources. Such theory helped the Amazon in:
 Establishing an excellent relationship with their consumers and other companies, as
the company has laid down the strong relationships with companies of credit cards,
box maker, and shippers.
 It also helps the management to understand inter-organizational relationship which
contributes to either success or the failure of the firms or the other companies.
 It also enhances the organizational strategies of enhancing their autonomy as well as
pursuing the interest (Newcombe et al., 2015).
Managerial Style and Organizational Culture
The managerial structure of the company Amazon allows the widespread control of
the company on the oration of e-commerce in the global market. Such organizational
structure help in establishing the system as well as the design of interaction among the
members of the firm in an effective manner such as the organizational structure of Amazon
determines the manner how managers direct as well as influenced the operational activities in
the different business area. The company is considered as the leading company in the global
market for which they need to maintain the organizational structure more adequately supports
that expanding their market reach. The company has a useful organizational and managerial
structure that majorly emphases on the commercial purposes as sources for defining the
communications among the constituents of the business (Smetana, Rogers & Welfel, 2017).
The characteristics of the organizational structure are explained in the below points.
 Global Function-Based Groups

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It is one of the strongest features of the organizational structure of Amazon. The
strategic objective in having such structure characteristics enables the company to provide
effective operations management of e-commerce throughout the whole corporation. The
following are a main function-based sets in the organizational structure of Amazon: Finance,
CEO of the office, Amazon Web Services, Legal and Secretariat, Consumer Business,
Accounting, International Consumer Business as well as Business Development (Goran,
LaBerge & Srinivasan, 2017).
 Global Hierarchy
Hierarchy is one of the outmoded executive basic characteristics. Amazon articulated
in term of the worldwide scheme of the perpendicular outlines of the appreciation as well as
buffs that stimulus the virtual trade firm. For example, the directive of a senior manager is
pragmatic during the association that distresses all the pertinent workplaces of the
organization at the global level (Chatman & O’Reilly, 2016).
 Geographic Divisions
The organizational structure of Amazon also includes the division of geographic. In
such structural characteristics, the groups are based on the geographic region as well as
associated commercial objectives. Amazon has used the divisions of geographic to create it
relaxed to handle the business of e-commerce that is majorly depends on the condition of the
economics of definite areas. The main objectives in taking such characteristics of the
managerial structure are to allow the business to discourse the issue or any anxieties that are
related to respectively geographic region with in view of difference among the provincial
markets (Santti et al., 2017).

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Key Terms and Principles
There are certain principles of organizational culture that are explained in the below points:
 The culture can be shaped by the people as a personality as well as experiences of the
employees that rerate the philosophy of an business for instance if furthermost of the
staffs are outbound the culture in the company is prospective to be uncluttered as well
as gregarious.
 The culture can be conveyed due to the reason the culture cannot be created alone, the
employees have a great contribution in changing the way, the work atmosphere, the
manner employees are performed, or the way in which the verdict is to be made
within the common standards of the office (Alvesson & Sveningsson, 2015).
 The culture in the organization links the behavior to business objectives as it may be
the sort far afield of what it proceeds to prosper in the marketplace. So numerous
staffs gait away from the culture concentrated on city’s halls or standards.
 The organizational culture builds by developing trust among the manager and
employees and among themselves. It includes the kind of trust that enables free
discussion as well as the open-minded environment (Morden, 2017).
Therefore, according to the learning, the organizational culture of Amazon has a
broader concept as the company highlights the centrality of the consumers in their business.
They force their employees to work harder until they quit or terminated by the company. It
increases pressure among the employee to achieve the desired goal of the company. Such
principles support the company to achieve its future goal as well in a more effective and
efficient manner. The employees of the company are encouraged to take a risk with
considering new ideas to do the business that emphasis boldness and openness towards the
new idea that is based on the organizational diversity policies. The policies of the company

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are rigid that forces the employees to maintain formal culture in their organization that leads
to the profit of business but does not lead to the growth of individual employees (Matthews,
Harbin & Daigle, 2018).
Recommendations
Amazon is one of the leading companies that needs to be maintained in the
competitive market, therefore, certain recommendation is provided for the company to
enhance their performance in effective manner as they are explained in below points:
 The company should provide a flexible environment to their employee that would
help them to feel comfortable and motivated in such environment that support the
employees to work in a more effective and efficient manner.
 The company need to be lenient towards the employees and should not force them
towards their targeted goal harshly that increase the mobility ratio in the company
which affected over their cost. Therefore, the leniency helps the company to retain
their consumers in a more effective and efficient manner.
 The company should adopt a motivational tool for their employees to make them feel
motivated towards the targeted goal.
 The current workplace environment of the company induces frequent clashes of the
ideas between the employees. Therefore, they should provide such an environment to
their employees that reduce clashes among them rather they work together that made
their performance more effective.
Conclusion
From the above analysis, it can be concluded that the management of the organization
is one of the strategic parts for the company to promote and support their employees. The

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healthy organization culture supports the employees as well as their business to grow in such
a competitive market. One of the leading companies Amazon has a healthy organizational
culture at a certain extent, as they are particular for their work and deliver quality work and
services to their consumers. Amazon expanded its business in e-commerce industry and
delivers a variety of products to their consumer. The company maintained a healthy
organizational culture at the certain extent that made the company more successful in the
competitive market. However, they should need to focus on their business in a more effective
manner to grow more in the international market. It would help the company to lead at the
international level.

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References
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