Amazon's Response to Change: A Burke-Litwin Model Analysis

Desklib provides past papers and solved assignments for students. This report analyzes Amazon's organizational change and leadership.

UNDERSTANDING LEADING CHANGE

Table of Contents
INTRODUCTION......................................................................................................................................................... 3
TASK 1............................................................................................................................................................................ 4
P1 COMPARE DIFFERENT ORGANISATIONAL EXAMPLES WHERE THERE HAS BEEN AN
IMPACT OF CHANGE ON AN ORGANISATION’S STRATEGY AND OPERATIONS......................5
M1 ASSESS THE DIFFERENT DRIVERS FOR CHANGE IN AMAZON BY DOING SWOT AND
PEST ANALYSIS AND THE TYPES OF ORGANISATIONAL CHANGE THEY HAVE AFFECTED
.................................................................................................................................................................................... 10
P2 EVALUATE THE WAYS IN WHICH INTERNAL AND EXTERNAL DRIVERS OF CHANGE
AFFECT LEADERSHIP, TEAM AND INDIVIDUAL BEHAVIOURS WITHIN AN ORGANISATION.
......................................................................................................................................................................................... 13
P3. EVALUATE THE MEASURES THAT CAN BE TAKEN TO MINIMISE NEGATIVE
IMPACTS OF CHANGE ON ORGANISATIONAL BEHAVIOUR. THIS TASK WILL REQUIRE
YOU TO DO ADDITIONAL RESEARCH AND FIND THE MEASURES AMAZON HAS TAKEN
TO MINIMISE THE NEGATIVE IMPACT OF CHANGE.........................................................................15
M2 APPLY THE BURKE-LITWIN MODEL TO EVALUATE THE AMAZON’S RESPONSE TO
CHANGE.................................................................................................................................................................. 17
TASK 2.......................................................................................................................................................................... 20
P4 EXPLAIN DIFFERENT BARRIERS FOR CHANGE AND DETERMINE HOW THEY
INFLUENCE LEADERSHIP DECISION-MAKING IN THE AMAZON................................................20
M3 USE FORCE FIELD ANALYSIS TO ANALYSE THE DRIVING AND RESISTING FORCES
AND SHOW HOW THEY INFLUENCE DECISION-MAKING...............................................................22
TASK 4.......................................................................................................................................................................... 24
CONCLUSION............................................................................................................................................................. 32
REFERENCES............................................................................................................................................................ 33

INTRODUCTION
Leading change is the key step to the leadership capability. It enables and accelerates the
changes to identify, implement and sustain important changes initiatives in the
organization for long-term basis and success (Booth et al., 2014). This can assimilate the
change in personality with the predicted range of understanding the inherent risks of
change. This risk can be mitigated with the delivery of change initiatives and not only
manages the change thrust but also addresses to the productivity and necessary change in
the team or function.
The public company which prefer doing business in the e-commerce, artificial intelligence
and cloud computing can be marked as the most valuable service for the business ( Bryk,
2018). Amazon is the multinational company which ensured the revenue and market
capitalization with the help of publishing online bookstore at first and more diversified
stream to the business. The software, video games may help the organization to become
more hyper competitive and innovative with disruptive change in the application to the
business.

TASK 1
AMAZON.COM, INC.
Seattle, Washington, U.S.
45, Street lane,
Seattle, Washington, U.S.
[e-mail]
14th February 2019
Mr. Astelle boston
Regarding change in the organization working structure
E-Bay
134, royal street
UK
Dear Astelle,
a. What is a change in a business context and why is it a constant requirement?
There are no businesses which re-kindle the success for long by remaining the same year
after year. The constant changing environment is viable and profitable for the organization.
It can be foresaid that the change is unstoppable and manager who possess those strategies
with the critical areas are constitute to the part of the good management (Burnes and
Cooke, 2013). When the change is being introduced in the organization it ultimately direct
on the processes, systems and organizational structure along with job roles. There are
numerous approaches through which tools and techniques can be improved with the

prescribe adjustment with more than specific problems or opportunities (Burnes et al.,
2018).
P1 COMPARE DIFFERENT ORGANISATIONAL EXAMPLES WHERE THERE HAS
BEEN AN IMPACT OF CHANGE ON AN ORGANISATION’S STRATEGY AND
OPERATIONS.
Amazon went online in 1995 which directs on the stores to become the world’s largest
product that launch the Amazon Prime and Instant Video along with the list to sell out the
post with the profits that are enough to justify any investment (Burnes et al., 2018). On the
other hand, being the American multinational e-commerce that facilitates the consumer to
consumer and business to customer sales can be directed towards the operations of the
organizations. This has become evitable with the challenges that are marked with the free
selling of the services than that of the items which are sold. In addition to this, eBay’s
original auction style sales and website with the Universal Product Code has been
preferably managed with the online money transfer and other subsidiaries such as PayPal
(Chesbrough, 2010).
ORGANIZATIONAL
CHANGE
AMAZON E-BAY
MISSION AND STRATEGY The mission and vision
statement of the
organization is to develop
the strategy which support
the competitive advantage of
the organization against the
firms such as eBay and
Google (Chesbrough, 2010)
eBay mission statement
indicates the business
operations which include the
offering online auction
services that are relatable to
the products. This can be
managed with the strategic
objectives for its operations
and subsidiaries like
StubHub and Kijiji.
Therefore, it is overall online
operations.

STRUCTURE AND
PARTNERSHIPS
The hierarchical structure
which classifies the senior
management team including
two CEOs and three seniors
with the vice presidents and
with the controlling details
those are responsible for the
various vital aspects of the
business reporting directing
to the CEO Jeff Bezos. The
company shares the
partnership with the
suppliers under the 10 year
agreement. The merchant
partnership claim the
perceived variety of the toys
and other stocks on the
independent e-commerce
website (Daft and Marcic,
2016).
EBay also follows the
hierarchical organizational
structure with the massive
size of the company to
around 12000 across the
world. They have
restructured the paying
terms through separating
PayPal and eBay Inc (Daft
and Marcic, 2016). This can
be determined that the
divisions or groups have
been the part of the
corporate structure in the
business. The key
partnerships of eBay are
likely to be operative with
the number of the services
that are adjacent to the
primary marketplace such as
StubHub, Classified
Websites, Half.com,
Rent.com, PayPal,
BillMeLater
PEOPLE AND CULTURE Amazon follows the peculiar
and innovative culture. The
leadership principle
empowers the owners and
subject on the innovators
customer centricity (Burnes
et al., 2018). This can be
Company culture of the Ebay
directs on the single most
important factor through
which the success and right
people planning are being
suffered with the business
owners and creating value

willing able to take the
innovative requirement of
the work without any fail.
The passionate people build
up with the new products
and services that are on
behalf of the customers
with the entrepreneurs to
meet with the subjective
change in the business
(Burnes et al., 2018). The
corporate culture involves
the human resource who
manages the internet and
other media with the
subjective attribute to
change. This can include the
long term success of the
company with the rapid
commerce landscape.
MARKETING AND
CUSTOMER
RELATIONSHIPS
The marketing segment of
the Amazon direct on the
use of the e-commerce
segmentation and certain
products with the preferable
convenience over shopping
(Denison et al., 2012).
Amazon has put the
reputation for providing the
customer with all possible
things which directs on the
convenient space and
managed the relations with
millions of customer
through face to face
meetings or without that
too. They utilises the stores
personal and card details
eBay’s e-commerce websites
has serve to the every online
shopping needs. This can
also build up to do just the
figures which meet with the
central data repository.
Thus, it can meet with the
customer relationship
management. This can
provide specific goals
through which the outbound
marketing in the business
can be directed with the
support of directors and
managers (Bryk, 2018). The
eBay has extreme loyal
customer base through
which the online retailers

with the possible purchases
to make it more smooth and
quick.
get attracted towards them.
TECHNOLOGY Amazon has manifested on
the SLAM process and
introduced Amazon Robotics
in the UK for commitment to
invention in logistics on
behalf of the employees and
our customers (Glass and
Cook, 2016).
eBay has developed its own
internal framework called
eBox which was identified
by CNET. This has portrayed
that the e-commerce in a box
with the Java based web
applications framework.
This can build up with the
foundation of the
component using the eBay
sites (Glass and Cook, 2016).
Table 1: Comparison between Ebay and Amazon
Source: Hrebiniak, 2013
b. Briefly explain by giving examples, how perceptions/reasons influence a view of
change as positive or negative.
In a vibrant and dynamic business scenario of the Amazon and EBay, the organizational
changes are inevitable as it follows the cause and effect relationship with the regulating
outcomes positive or negative. This can be recognised with the difference in the compliance
and commitment towards the organization (Glass and Cook, 2016). The employees at the
Amazon are required to be explained with the need for change in the large interest. This
can be projected with the employee coercion for positive employees and organizational
change commitment. This can be positive or negative depends on the extract and
authorative position in the organization.
In case of the Amazon, the social or ethical causes are considered way to important that the
culture of the organization can changed within few minutes (Guldenmund, 2018). This can
influence the consumer perception, sales and recruiting towards the perceived thoughts of

the consumer in a positive way. The workplace of the Amazon is highly brutal in terms of
the relations with the employees. It has been penalized for being distracted by the life-
threatening illness and facing themselves or others in the similar position. This has
reportedly figured out to be negative (Guldenmund, 2018).
While in Case of Ebay, the perceiver attitudes affect the perception of people. This has been
supposedly meet with the interview process which was carried out for the important
position in the organization. It has been negotiated with the contract of suppliers. This can
entail the women for not being capable of holding its own negotiations and perception of
female candidate’s interviews (Hyrkäs and Harvey, 2010).

M1 ASSESS THE DIFFERENT DRIVERS FOR CHANGE IN AMAZON BY DOING
SWOT AND PEST ANALYSIS AND THE TYPES OF ORGANISATIONAL CHANGE
THEY HAVE AFFECTED
There are different drivers of change which can be represented as follows:
 Internal driver for change- through SWOT analysis
 External Driver for change- through PESTEL analysis
The internal driver for the change can be depicted as:
INTERNAL DRIVER OF CHANGE AMAZON
STRENGTH  They have strong background
evolving as global e-commerce giants
 They have robust CRM processes to
accompanied 55% of the customer
 They differentiate the strategic
alliances with other companies
 Effective delivery network for
fulfilment of the centres
WEAKNESS  They avoid taxation measure in UK
and US to generate revenue
 They have shrinking margin due to
extensive delivery networks and
price wars
 The develop the nation with overall
profit for the group resulting into
high debts
OPPORTUNITY  They can expand globally in the
developing economies
 They can differentiate their offering
in the product category i.e. Backward

integration
 Acquisition and mergers can be
managed with specializing capacity
of other company
THREATS  They generate low entry barriers in
the industry
 The government regulations on
sustainability and no clarity of the
issues can subjective create a threat
 The local competitor such as
snapdeal and flipkart may bite the
market share and profit ratio of
Amazon
Table 2: Internal drivers of Change
Source: Hyrkäs and Harvey, 2010
External drivers of change
EXTERNAL DRIVERS OF CHANGE AMAZON
POLITICAL Amazon may face hurdles in terms of the
several political factors such as the red tape
in Asian countries and regulatory issues
projecting on the political issues which cost
high and reasons of dispute within the
company
ECONOMIC Amazon has brought about the economic
turmoil with the times of recession and
retail industry with the regular items. This
can mark on the better customer confidence
with the boosted disposable income and
trends. This can grew by whopping up with