Addressing Amazon's Issues: A Business Development Report

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This report provides a comprehensive analysis of the challenges faced by Amazon, a multinational technology and e-commerce giant. It begins with an introduction to Amazon's background, highlighting its focus on cloud computing, digital streaming, artificial intelligence, and e-commerce, and its evolution from an online bookstore to a market leader. The main body of the report delves into specific issues, including worker rights concerns related to working conditions and employee satisfaction, as well as anti-competitive behavior accusations regarding fees charged to small businesses. Theoretical concepts such as organizational culture theory and various leadership theories are used to analyze these issues. The report then provides recommendations, such as improving workplace atmosphere, providing training and development opportunities, involving employees in decision-making, and addressing the needs of all stakeholders. It concludes by emphasizing the importance of implementing these recommendations to enhance productivity, attract more sellers, and gain a competitive advantage in the market. The report is designed to provide insights into Amazon's business challenges and potential solutions, offering a valuable resource for students and professionals seeking to understand the complexities of the company.
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Contents
Contents......................................................................................................................................................2
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
Background of the Amazon.....................................................................................................................3
Issues faced by Amazon..........................................................................................................................3
Theoretical Concepts...............................................................................................................................5
Recommendations......................................................................................................................................6
CONCLUSION..........................................................................................................................................7
REFERENCES..........................................................................................................................................9
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INTRODUCTION
Amazon is a multinational technology Amazon that is based in Washington and primarily
focuses on areas such as cloud computing, digital streaming, artificial intelligence and e-
commerce. The Amazon was founded by Jeff Bezos in the year 1994 and is now a market leader
in the industry. Amazon started off as an online marketplace that sold books but later on
expanded to sell a variety of other products. The respective organization has been facing issues
regarding its Worker’s Right and an Anti-Competitive behavior (Alimudin and Sukoco, 2017).
Due to this, its overall performance has been affected. The report includes recommendations and
suggestions for Amazon to deal with these issues in an effective manner. The different
theoretical concepts that are used in the report include an explanation of the different leadership
theories as well as the organizational culture framework. The theoretical concepts will help in
analyzing the issues in depth and make suggestions accordingly.
MAIN BODY
Background of the Amazon
The respective Amazon, Amazon, mainly focuses on cloud computing, e-commerce,
artificial intelligence and digital streaming. Initially, the Amazon sold books but later on
expanded to various other types of products. In simple words, Amazon is a leading online retailer
and manufacturer (Teasley, 2017). Retail is the main business of the respective Amazon and is
among companies that have the largest share in the market. The main of the Amazon has always
been simplifying online transactions for the customers. By offering high quality products at
affordable rates to its customers, Amazon has been able to gain their trust as well as loyalty.
Although the Amazon now operates across different branches, it still generates a majority of its
revenue by selling products online (Amazon.com, Inc. history, profile and history video, 2021).
The Amazon sells its products to four primary sets of customers, namely sellers, enterprises,
content creators as well as consumers (Bowers, Hall and Srinivasan, 2017). Apart from this, the
Amazon offers different programs that enable the sellers to sell their products as well as services
on the Amazon’s website along with their own websites.
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Issues faced by Amazon
While conducting its business operations, Amazon can come across different issues
which can not only affect its overall performance but profitability as well. In context to Amazon,
the Amazon has been facing issues with its current working conditions. The employees are not
satisfied with the working environment at the workplace. This is because the company expects
very high productivity of them and there is not much support provided to the employees. Due to
this, they are not able to work productively (Driskill, 2018). As a result, the overall performance
of the employees as well as the Amazon is getting affected. The employees feel that the Amazon
demands high productivity despite not providing good working conditions. They feel like they
are treated merely as a data source and not like humans or even robots as mentioned in the
information provided (Chatterjee, Pereira and Bates, 2018). Due to a poor working environment,
the employees are not able to focus on their work. As a result, there are different issues that are
raised from time to time. Therefore, there is a need that the managers as well as tea leaders
motivate their employees or team members. Apart from this, another issue that the Amazon is
facing is an Anti-competitive behavior (Warrick, 2017). This means that the Amazon is charging
high amounts of money from small companies that are using the platform for selling their
products and services to the customers. When employees start to feel that they are only treated as
data sets, they will not be able to work effectively. This will also affect the overall position of the
company in the industry. Also, since the company demands its employees to be very productive,
they are not able to perform in an effective manner.
Amazon demands its employees to be highly productive due to which, the employees are
not able to cope up with the same. The employees do not feel safe about their jobs and suffer
from various injuries. For example, there are different packages containing liquid burst on the
conveyor belt, it has to stop the belt to clean up the mess. The outbreak of the pandemic has
affected the business operations of the respective Amazon to a great extent. The employees show
an anti-union behavior. They are not comfortable in working with employees across other
departments. The other issue that the Amazon has been facing is that of anti-competitive
behavior as the small companies that operate on Amazon have to pay an increased amount of
fees so as to use the platform to sell their products as well as services. The Amazon has been
accused of anti-competitive practices. Amazon has decided to use 3rd party data in order to
decide which amazon product has to be made. It is important for the firm to take account of the
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different issues as these can affect its overall performance as well as profitability in the market.
since the company asks its employees to be more productive, it should also offer different
benefits to them, otherwise they will not be motivated enough to work effectively and give their
best.
Theoretical Concepts
There are different theoretical concepts that can be used in order to analyze the issues that
are faced by Amazon. Since Amazon has been dealing with the issue of poor working conditions.
This means that the organizational culture is not positive and therefore, in this case
organizational culture theory can be implemented (Jardon and Martínez-Cobas, 2019). The
organizational culture theory focuses on the culture is a set of values that the Amazon and the
employees working for it have in common. This theoretical framework has been used to
critically analyze the issue because it helps in identifying the issue and develop measures to
enhance productivity of the employees (Driskill, 2018). Besides this, there is an anti-union
behavior among the employees which means that there is an issue dealing with the ethics in the
workplace. there are different factors that contribute to the overall organizational culture
(Widodo, 2017). By focusing on improving the overall culture within the workplace, Amazon
will be able to overcome the issue that it has been facing. The issue has been mentioned inm the
presentation that has been provided.
Apart from this, there are different leadership theories that can be implemented for the
Amazon to overcome the issue of anti-competitive behavior. Currently the leaders within the
Amazon are not able to manage their team members (Longman and et.al., 2018). Leadership
theories have been used for critical analysis because it will help in understanding the different
leadership styles as well as their impact on the Amazon. As a result, a better understanding about
the issue will be developed. Democratic leadership should be followed in the company so that all
the employees get a chance to share their views as well as ideas during the decision-making
process. Amazon has increased the fees for small companies that use the platform for selling
their products as well as services (Gürlek and Tuna, 2018). Situational theory can be
implemented in this context because the leaders will implement the leadership style that is most
appropriate for the situation. Situational leadership theory suggests that there is no leadership
style is best. This depends on the type of strategies and leadership that are best-suited for that
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particular theory. Therefore, the leaders within the respective Amazon, Amazon can overcome
the situation of anti-competitive behavior. The Great Man Theory of leadership states that some
people are born with leadership traits that set them apart from other people. And it can be said
that the leaders within the respective company, Amazon should ensure that they practice
effective leadership so that the employees are motivated as well as confident.
Recommendations
From the above analysis, there are some suggestions that can be made for the respective
Amazon, Amazon. The Amazon is recommended to develop a sense of productivity in the
workplace. The employees should be provided with a positive and healthy workplace
atmosphere, wherein they will be happy to work (Meng and Berger, 2019). The specific
measures that can be taken can include encouraging employees to participate in the decision-
making process and teamwork should be promoted. A productive working environment will
allow the employees to work productively and help the Amazon in achieving goals as well as
objectives. This is because a productive working environment encourages the employees to
deliver their best results. Apart from this, the management of the Amazon should focus on
providing adequate training and development opportunities to the employees. This will help
them in developing a better understanding of the different processes of the Amazon (Ibrahim,
Boerhannoeddin and Kayode, 2017). As a result, they will be able to carry out the tasks assigned
to them in an effective manner. the overall organizational culture as well as workplace
environment should be reviewed. This will help in identifying the different areas of
improvement. Not only this, the managers of the Amazon are recommended to talk to their
respective team members and develop an understanding of the different resources that they need
in order to carry out their jobs effectively. The company is recommended to address the needs of
all its stakeholders such as customers, employees and shareholders. In order to monitor the
progress, it is recommended that the company conducts regular meetings as this will help in
keeping a track of the progress of the project. It is also recommended that the company provides
regular training to its staff members as this will help them in developing new skills as well as
enhancing their existing knowledge. As a result, Amazon will be able to gain a competitive
advantage and stand out in the market.
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Once this is done, the Amazon will have adequate understanding of the different
resources that are required and thus, they can be made available. This will help in improving the
overall productivity as well as confidence levels of the employees. Apart from this, the managers
and leaders of the Amazon are recommended to involve their team members in the process of
decision making, so that the employees get a chance to share their views and thoughts
(Naqshbandi and Tabche, 2018). It is known that Amazon is one of the leading online retail
platforms in the world that is widely recognized by people. Therefore, it is recommended that the
Amazon should reduce the fees for the small companies that use the platform in order to sell
their products and services to the customers. The managers and leaders of the Amazon are
endorsed to contain their crew participants in the manner of choice making, in order that the
employees get a threat to percentage their views and mind.
This will help the Amazon in attracting a greater number of sellers to use its platform and
gain a competitive advantage in the market. This will help it in gaining a competitive advantage
in the market against competitors. The leaders should adopt the appropriate leadership style in
order to ensure that the employees work productively (Purwanto, Asbari and Santoso, 2019).
Apart from this, another recommendation that can be made to the respective Amazon is that it
should not set unrealistic productivity demands from the employees. Therefore, by implementing
these recommendations, the Amazon will be able to overcome all the issues that it has been
dealing with and thus, enhance overall productivity. More number of sellers will be interested in
partnering up with Amazon which will further lead to an increase in its overall profitability in the
market. In order to monitor the progress, it is advocated that the organization conducts regular
conferences as this can assist in retaining a tune of the development of the mission. It is also
recommended that the corporation gives ordinary schooling to its staff contributors as this will
assist them in growing new skills in addition to improving their present knowledge. As a result,
Amazon might be capable of advantage a competitive gain and stand out in the marketplace.
CONCLUSION
From the above report, it can be concluded that Amazon can come across various issues
and therefore, it is important to develop and implement various measures. There are different
theoretical concepts that can be implemented by the management of a Amazon. The issues that
an organization can face can include poor working conditions, low morale and productivity
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levels of the employees and issues with the 3rd party. Therefore, it is important for the managers
or leaders within the Amazon to adopt appropriate leadership style as this will help it in ensuring
that the business operations are conducted in an effective manner.
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REFERENCES
Books & Journals
Alimudin, A. and Sukoco, A., 2017. The Leadership Style Model That Builds Work Behavior
Through Organizational Culture. JURNAL LENTERA: Kajian Keagamaan, Keilmuan
Dan Teknologi, 16(1), pp.57-66.
Bowers, M. R., Hall, J.R. and Srinivasan, M.M., 2017. Organizational culture and leadership
style: The missing combination for selecting the right leader for effective crisis
management. Business Horizons, 60(4), pp.551-563.
Chatterjee, A., Pereira, A. and Bates, R., 2018. Impact of individual perception of organizational
culture on the learning transfer environment. International Journal of Training and
Development, 22(1), pp.15-33.
Driskill, G. W., 2018. Organizational culture in action: A cultural analysis workbook.
Routledge.
Gürlek, M. and Tuna, M., 2018. Reinforcing competitive advantage through green organizational
culture and green innovation. The service industries journal, 38(7-8), pp.467-491.
Ibrahim, R., Boerhannoeddin, A. and Kayode, B.K., 2017. Organizational culture and
development: Testing the structural path of factors affecting employees’ work
performance in an organization. Asia Pacific Management Review, 22(2), pp.104-111.
Jardon, C. M. and Martínez-Cobas, X., 2019. Leadership and organizational culture in the
sustainability of subsistence small businesses: an intellectual capital based view.
Sustainability, 11(12), p.3491.
Longman, K. and et.al., 2018. How organizational culture shapes women’s leadership
experiences. Administrative Sciences, 8(2), p.8.
Meng, J. and Berger, B. K., 2019. The impact of organizational culture and leadership
performance on PR professionals’ job satisfaction: Testing the joint mediating effects of
engagement and trust. Public Relations Review, 45(1), pp.64-75.
Naqshbandi, M.M. and Tabche, I., 2018. The interplay of leadership, absorptive capacity, and
organizational learning culture in open innovation: Testing a moderated mediation model.
Technological Forecasting and Social Change, 133, pp.156-167.
Purwanto, A., Asbari, M. and Santoso, P.B., 2019. Does Culture, Motivation, Competence,
Leadership, Commitment Influence Quality Performance?. Inovbiz: Jurnal Inovasi
Bisnis, 7(2), pp.201-205.
Teasley, M. L., 2017. Organizational culture and schools: A call for leadership and collaboration.
Warrick, D. D., 2017. What leaders need to know about organizational culture. Business
Horizons, 60(3), pp.395-404.
Widodo, D. S., 2017. The effect of compensation, leadership and organizational culture through
work motivation on employee performance. Jurnal Manajemen Dan Kewirausahaan,
5(2), pp.1-7.
Online
Amazon.com, Inc. history, profile and history video. 2021. [Online]. Available through:<
https://www.companieshistory.com/amazon-com/>.
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