Business Organisation Assignment - Amazon company
Added on 2020-11-12
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REPORTOFESTABLISHING AMAZONDELIVERY IN SWEDEN
Table of ContentsINTRODUCTION...........................................................................................................................1BACKGROUND INFORMATION ON BUSINESS ORGANISATION......................................1BACKGROUND TO BUSINESS ENVIRONMENT -SWEDEN..................................................3ANALYTICAL TOOLS TO BE USED..........................................................................................5CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
INTRODUCTIONAmazon is a global company which offers various technological services such as E-commerce, Cloud computing and Artificial Intelligence. Company offers its services in 5 regionssuch as Asia, Europe, North America, Oceania and South America. Now, Amazon wants toexpand its operations in Europe by establishing its business in Sweden. It is an advantage for theAmazon if it expands its business in Sweden because there is an huge opportunity of ForeignDirect Investment in Sweden as political & economic situation of Sweden is so good, Tax ratesin Sweden is low, purchasing power of individuals of Sweden is high and economy of Sweden issustainable and having high demand of High-Technology products & services. FDI of Sweden isalso increasing year by year and Market of Sweden is ranked 10th in terms of ease of doingoperations. Thus, there is an opportunity for Amazon in entering into Sweden and expanding itsbusiness.BACKGROUND INFORMATION ON BUSINESS ORGANISATIONAmazon is a largest E-commerce company in the world and includes variety of servicesrelated to cloud computing, digital distributions, consumer electronics & online trade in itsportfolio. Company is also a number one E-commerce company in the world in terms of revenuegeneration. Revenue of the company is 232.88 billion U. S. dollar in 2018 which is increased ascompare to the 2017. Companies financial position is improving year by year with the increasedrevenue, net income, net operating income, employees, product offerings & with the decreasedassets & liabilities. Headquarter- Amazon has its headquarter in Seattle, Washington, U.S. Organisational Structure- Organisational structure of Amazon is hierarchical becauseits business is diversifies and large. This is structure divided into 7 segments such asHuman resources, legal structure, information technology, financial administration,international retail, digital management and global corporate affairs. All the segments arecontrolled by the CEO of the company(OECD, 2016).Legal Form of the Organisation- Legal structure of Amazon is a two tier structurewhich includes corporate affairs department and tax & audit department. Legal structureof company helps in maintaining all the legal provisions applicable on operations ofAmazon. This structure also guides company to follow all the legal rules related to tax,audit and corporate governance.1
Range of Goods & Services- Amazon offers variety of E-commerce products & servicesin many countries across the globe. Product offered by Amazon are Amazon Echo,Amazon Fire, Amazon Fire TV, Amazon Kindle and Amazon Fire OS. Beside theseservices offered by Amazon includes Amazon.com, Amazon Prime, Amazon Music,Amazon Alexa, Amazon Video, web services and Amazon App store(Glick, Williamsand Weyant, 2016). Overseas Operations- Amazon is investing more in its international offerings but its isnot beneficial for the company. Organisation's losses are increased by 25% withintroduction of overseas investment. Amazon delivers its services in more than 100countries across the globe by introducing a feature of international shipping with thisfeature customers of market where Amazon is not offering its services can also order itsproducts & services by using mobile application of Amazon. In overseas businesscompany cannot generate profits by taking percentage out of the goods & services sold.Market share- Market share ofAmazon is E-commerce industry is 37% and operationsof the company shows that it will increase in cup coming years up to 50%. Thus, thisshows that Amazon is growing and successful company in the E-commerce industry.Amazon is a listed public company which has its shares listed inNASDAQ which alsocontributes in increasing profits of the company. Market capitalization of company is 803billion dollar in year 2018.Market structure- Market structure ofAmazon is oligopoly according to this structurefew sellers command the market and they did not let enter others in the market. Amazondominate most of the market of E-commerce industry. Amazon offers all type of E-commerce services which reduces competition in the market and only few companies likeE-bay offers this kind of products & services. Thus, E-bay & Amazon operates inoligopoly market with in same industry(Amazon, 2015).Financial position of Amazon- Profits & revenue of Amazon is growing day by daybecause company is expanding its business in many international counties. Companygenerate its profits by taking a small percentage from products & services offered by it.This percentage varies by country to country. 8th ranking given to Amazon by Fortune500 ranking in terms of largest revenue generator. There is also an increase in sales of2
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