Business Operations Report: An Evaluation of Amazon's Management

This report provides a comprehensive overview of Amazon's business operations. It begins with an introduction to business operations, outlining key functions such as marketing, finance, human resources, production and operations, information technology, and innovation. The report then describes Amazon as a multinational technology company specializing in e-commerce, cloud computing, and artificial intelligence, founded by Jeff Bezos. The main body of the report evaluates Amazon's operational management decisions, particularly in supply chain management, including its distribution network, diversified delivery fleet, and the integration of human and automated processes. The report also examines Amazon's location strategies, quality management, human resource practices, and logistics. The conclusion summarizes the key findings, emphasizing the importance of effective operational management in Amazon's success. The report uses credible sources to support its analysis of Amazon's strategies and operations.

Introduction to business
operations and management
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Table of Contents
INTRODUCITON TO BUSINESS OPERATIONS.......................................................................3
Main functions of business operations........................................................................................3
Description of company...............................................................................................................4
Evaluation of company operation management decision............................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................5
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INTRODUCTION
Business operation are activities in which business engage and it enables in increasing value
of firm and generating revenue. for examples- operations are sales, marketing, finance, HR, etc.
Basically, they remain same in all companies but differ on basis of goals. They all are important
as it helps in producing products and fulfilling people needs. In every company there are
different operations which is performed. Report focuses on Amazon.com, which is known as
American multinational firm focuses on cloud computing,e-commerce and artificial intelligence.
It was founded through Jeff Bezoz within the year 1996. These depends on nature and type of
business. It is required for business to maintain flow of operation so that performance is not
impacted. For that it is necessary to take effective decisions as well. the operations are performed
daily and it helps in generating profit (Reichelt, 2016)
There are different business operations which is performed by organisation. These enable in
achieving goals and objectives. However, in each one various functions are followed.
Main body
Main functions of business operationss
Operational Management is focuses on how to deal with managing operations as well as
process in the entity. The operations managers optimize the operations through making judicious
uses of capital and resources. All of them manages operations that are taken place within
businesses. Operational managers are not found within the entity but also found the
manufacturing units. As a part of their responsibilities they perform several functions. There are
various functions of business operations which is carried out by firm. These functions are similar
but vary on basis of size and scope of organisation. Moreover, the function varies on basis of
goals and objective set as well. So, in these activities defined in it are as follows:
Marketing- It is known as the process of getting services and goods into the consumer's hand in
order to satisfy the requirements as well as desires of producers and consumers. Or in other
words, marketing function is a procedure by which consumers as well as producers are brought
together within an exchange relationship as well as transfer of ownership that can take place. In
this products and services are promoted and advertised in the market. Amazon do digital
marketing with the help of social media.
Finance functions- It is accountable for the three decisions as well as their proper
implementation such as financial decisions (capital structure- fixed and long term and short
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term), investment decisions (capital budgeting and financial planning), dividend decisions. The
finance function is to give resources as well as planning for resources to operate as well as
expand the business. Here, all financial statements are recorded and then analyzed. It also
performs function of preparing budget, allocating resources, etc. (Choi, 2019)
Production and operations- With the help of certain success production is the creations of
products as well as services. The goods production depends on the firms of money, men,
facilities and materials into a smoothly operating business. This can handle the process regarding
incoming material to the process of production, feedback from consumers. It assists them to
make the crucial adjustments so that fit the needs of the consumers. Also, entire production
function is operated in it as well.
Human Resource functions- It deals with enhancing the effectiveness of the human
performance within an entity. The main functions of HRM is to motivate the staff members
individually as well as in groups in order to contribute their maximum to the fulfillment of firm's
goals. Here, another function is to provide T&D, performance management, recruitment,
selection, etc. of employees in various departments. They are responsible for managing culture at
workplace, employee relation, etc.
Information technology function- The purpose of this information function is to collect,
communicate and generate within clearly as well as easily intelligible form of information for
decision-making as well as policy formulation (Rubinfield, 2016). In this all IT resources are
equipped and maintained. Besides that, entire communication network is set as well within
company. Amazon uses various technologies such as cloud computing, A.I, Block chain
technology.
Innovation- It is considered as the implementation of significantly or new products or new form,
new process within business practices. It means creativity and the whole business functions
requires to adopt it. In this function, R&D is done and info is analyzed. This info is then stored
and innovation is done in process, procedure, product, etc.
Thus, these all are various functions of business operations which is performed. These all
differ from one another but is interrelated to each other. Furthermore, in each one goals and
objectives differs.
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Description of company
As Amazon is largest company in e commerce and operate globally. So it is having a brief
history which is defined as
It is an American Multinational technology firm based within Washington that focuses on cloud
computing, digital streaming, artificial intelligence, e-commerce. It is a well-known firm within
U.S information technology industry alongside Apple, Facebook and google. Firm was founded
through Jeff Bezos within Bellevue, Washington within the year 1994. The firm started as online
marketplace for books but after some time expanded to sell video games, electronics, food, toys,
jewelry. Within the year 2015, Amazon surpassed Walmart as one of the most valuable retailer
within United States through market capitalization. Within 2017, through technological
innovation as well as mass scale Amazon is known for its disruptions of well-established
industries (Bilicki and Roeder, 2016). It is known as the World's largest AI assistant provider,
online marketplace, live streaming platform as well as cloud computing platform as measured
through market and revenue capitalization. Amazon is considered as one of the largest firm
through revenues within all over the world. It is also considered as the second largest private
employer within United States as well as consider as world's most valuable firms. Firm
distributes downloads as well as streaming of music, audio books by its Amazon Music, Prime
Video, Audible subsidiaries. Amazon publishing is known as the publishing arm, a television and
fil studio as well as cloud computing subsidiary.
Evaluation of company operation management decision
In Amazon as well there are different business operations which is performed but it is done
at large scale. So, it required for management to take effective decision so that overall operations
are run smoothly. Along with that, overall success of firm efficiency and productivity depends on
how well operation management decision are taken. Similarly, in Amazon there are several
decisions regarding operation management in varied areas. They are discussed as below :
Supply chain- Amazon supply chain is same as the earlier it was only difference came is that it
has more empowered as well as large scale through technological innovation that streamline
efficiency as well as operations. Mention below are three elements of the supply chain
management of Amazon that enable speed, overall success, efficiency (Irbe, 2016)
Distribution Network and a Vast Warehouse- The firm operates more than 174 fulfillment
centers all over the world, occupying more than 160 million square feet of space alongside 75
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fulfillment centers as well as 25 sortation centers within alone in North America. Also, in
addition to this it is estimated. Firm is also operated roughly around 600 warehouses all over the
world. This is primarily located near majorly metropolitan areas as well as puts distribution as
well as within the hands of Amazon, enabling the firm to completing orders for consumers at
lesser cost.
Diversified delivery Fleet
In order to deliver the orders to the doors of the consumers, Firms leverages a variety of
transportation methods. Firm also branded trailer trucks in order to carry more than 3,00 boxes at
a time as well as bringing orders from fulfillment centers where the products are distributed to
the most trustable as well as efficient transportation mode such as planes and trucks to partnered
carriers for examples U.S Postal service.
Unison of Humans and Automation- The extensive network of the staff members of Amazon
as well as partnership allows the firms to fulfill the deliveries all over the world practically but at
the same time embracement of automatons solutions as well as innovation technology assures
efficiency and streamline process.
Location strategies- Amazon has around 60,000,000 square feet (5.57 km²) of the warehouse
space within US. Firm has also approximately 26,000,000 square feet (2.42 km²) of the
fulfillment center warehouse space within North America. (Reichelt, 2016)
Amazon categories its warehouses – At present there are seven types of distribution centers
where Amazon's growing consumer base.
Large- Sortable Fulfillment Warehouse- Here the process goods can be fit within large box.
Small -Sortable Fulfillment Warehouse- The process goods can be fitted within a small box.
Non sortable Fulfillment warehouses- Process goods too heavy and large for the box shipment.
Replenishment Warehouse- Here within this step transfer center to move items from
manufacturers to several other centers.
Consumer Return Warehouses- Returns for missing, damaged or incorrectly or unsatisfactory
shipped goods.
Specialty Items Warehouse- Here high dollar items for example specialty apparel or jewelry.
Grocery Item warehouse- Perishable items as well as dry goods such as diary, meats and
vegetables.
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Quality management- Under this objective the strategic decisions areas are to maximizes they
operational output quality in order to satisfy the consumer's expectations. Amazon operational
management includes consistent improved efforts within e- commerce business. The firm uses its
culture so that supports innovation ideas creating among the staff members of Amazon. For
example, Amazon boosts the workers to be pioneering as well as bold within creating new ideas
so that the problems can be solved and business can be improved.
Human Resource- Within this strategic decision area human resource development is mainly
focused. The operational management utilizes a combination of third party employment agencies
and in house employment processes. Such as workers from such agencies fill the temporary
postilion as well as analysis to examines suitability for the permanent positions within fulfillment
centers and warehouse. The hiring and recruitment process are also aligned to the needs of the
human resource as well as growth of the firm within corporate offices (Choi, 2019).
Logistics- Trucking feet of Amazon is quickly expanding as it was launched within the year
2005 alongside the buying of thousands of trailers that can be utilized to shift items between the
centers. While the industry chatters claim that firm also have a few 350 actual power units.
Amazon air also operate in that with help of Boeing 767. There is airport of company is in
Kentucky where 200 flight operate daily. There are a number of other highly innovative, such as
crowdsourced deliveries from external contractors delivery to car trunks, remote door access to
Amazon couriers, Amazon lockers, apartment hubs and dozens of drone delivery patents. The
franchise delivery business model recently joined the rank of Amazon delivery, giving Amazon
the ability to grow its own courier network (Rubinfield, 2016).
CONCLUSION
From above report it is concluded that business operation are activities in which business
engage and it enables in increasing value of firm and generating revenue. There are different
business operations which is performed by organisation. These enable in achieving goals and
objectives. However, in each one various functions are followed. similarly, operations are
defined as production, HR, finance, marketing, etc. With the help of certain success production is
the creations of products as well as services. The goods production depends on the firms of
money, men, facilities and materials into a smoothly operating business Amazon is an American
Multinational technology firm and e commerce company found by Jeff Bezoz. There is various
operational management decision taken by company in regard to its operations in various areas
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such as HR, logistics, etc. Amazon operational management includes consistent improved efforts
within e- commerce business. The firm operates more than 174 fulfillment centers all over the
world.
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REFERENCES
Books and journals
Bilicki, E. and Roeder, R., Target Brands Inc, 2016. Operations dashboard. U.S. Patent
9,280,777.
Choi, T.M., 2019. Publishing operations management research in transportation research–Part E.
Education, I.N., NON-INSTRUCTIONAL/BUSINESS OPERATIONS. POLICY, 5661, p.1.
Essila, J.C., 2019. E-Business Supply Chains Drivers, Metrics, and ERP Integration.
In Advanced Methodologies and Technologies in Business Operations and
Management (pp. 989-1002). IGI Global.
Irbe, V., 2016. Improving Business Operations of IT Service Company.
Reichelt, J., 2016. The Future of Big Data and Business Operations in the Context of Relational
In-Memory Databases: Scenarios for the Year 2025 (Master's thesis, University of
Twente).
Rubinfield, A.S., 2016. The World Bank Group greenhouse gas emissions: inventory
management plan for internal business operations 2016 (No. 119998, pp. 1-54). The
World Bank.
Online
Amazon operations, 2018.[online] available through : <
http://panmore.com/amazon-com-inc-operations-management-10-decisions-areas-productivity>
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