Amazon's Operational Management: A Report on Jeff Bezos' Impact

Desklib provides past papers and solved assignments. This report analyzes Jeff Bezos' leadership and Amazon's operational success.

Jeff Bezos and Amazon

Outline
An overview of the individual’s biography and career
highlights
An introduction to the key operations of the organization they
performed
An evaluation how the internal and external operations
management environment created an atmosphere that allows
for that particular individual and his respective leadership style
to flourish
How operational efficiencies improved
Conclusions and supported recommendations for future
improvements

Jeff Bezos
Amazon, a leading American
online commerce is the result of
technology entrepreneur,
philanthropist and investor Jeff
Bezos.
He was born on 12 January 1964 in
New Mexico.
He grew up in Texas and graduated
from Princeton University to get a
degree in electrical and computer
science.

From 1986 to 1994, he worked in Wall Street to get
experience related to the qualified degree.
He opened Amazon in the year 1994 and started to
operate it as an online bookstore.
Later, he has expanded the operations to sell video and
audio streaming.
Currently, the organisation is the largest online commerce
along with the largest cloud infrastructure provider in the
world

He started working at Finland telecommunications start-up,
Fintel where he had created network design for national trade.
He worked from 1988 to 1990 in the Banking Trust
Later he joined a newly hedge funding, D. E. Shaw & Co.
Jeff founded Amazon as an online bookstore in his garage on
July 5, 1994.
In 1998, Jeff started to expand the business through the
selling of online audio and video streaming.
Continuous success has empowered Jeff to launch Amazon
Web Services in the year 2002.

Jeff founded human spaceflight company, Blue Origin in
the year 2000.
On August 5, 2013, Jeff purchased ‘The Washington
Post’.
He also founded ‘Bezos Expeditions’ as venture capital.
He has a net worth US$137 billion.
On March 6, 2018, Forbes declared Bezos as the
wealthiest person in the world.

Key operations of Amazon
Production: The organisation produces Kindle and Echo
like Amazon-powered devices whereas it also has
functions in aerospace designing and cloud infrastructure.
Supply chain: The organisation has a strong supply chain
network at the global level to deliver the products to the
consumers.
The organisation has the use of distribution centres
through a variety of suppliers to achieve consumer
satisfaction

Marketing: Amazon has a critical value of the marketing
function to achieve knowledge and understanding of the
market.
Finance: In cloud infrastructure and online commerce,
the organisation manages financial efficiency.
The operation has main value to ensure high returns on
the practices, effective fund management and allocation
among other business operations

External operational management environment
The political environment of the developing country is
stable, and the government in such countries is also
supporting digitalisation and e-commerce.
The organisation is stable from the economic point of
view and so that it can take advantage of the stability in
the developed countries.

 Increasing online purchase habits and consumerism in developing
market has opportunities for the organisation in a social context.
 Rapid technological obsolescence might be a threat to the
organization, but an effective response to the changes might be an
advantage.
 From an environmental point, the organisation is contributing to
environmental wellbeing and conducting environmental programs
that are supporting good branding.

Internal operational management environment
As a global leader in the industry, the organisation has a strong
customer base to ensure continuance.
There is less bargaining power from the customer market regarding
price, quality and products.
Also, effective benefits for the suppliers are attracting them to
engage in the business.
Strong business branding and global reach ensure that investors
also get adequate benefits with their relationship.

How operational efficiencies improved
The organisation has good scientific management to
ensure that employees and customers are satisfied with
the effective distribution of benefits.
The organisation also used classical management to
achieve effective performance from the employees during
peak times in the services.
Autocratic leadership is used to centralise the business
expansion related decisions as Jeff as chief executive
officer manages the operational decisions