MGMT1101: Final Project - Analysis of Amazon's Management Strategies

This report provides a detailed analysis of Amazon's management strategies, examining its strengths, weaknesses, opportunities, and threats (SWOT). It explores environmental constraints, including political, economic, social, and technological factors. The report identifies key stakeholders such as customers, employees, and the community, and analyzes Amazon's organizational structure, including the roles of the CEO, board of directors, and other key officers. It also discusses employee motivation techniques and recommends strategies for improvement. Furthermore, the report explores control mechanisms used by Amazon and provides recommendations for effective management practices. The analysis highlights Amazon's customer-centric approach, global reach, and use of technology while also addressing challenges related to cyber threats and government regulations. The report concludes with a focus on the importance of stakeholders, organizational design, employee motivation, and control in ensuring Amazon's continued success.

Management
Introduction to management
Student’s name
8/3/2019

Introduction to management 1
Contents
Summary..........................................................................................................................................2
SWOT- formulating strategies.........................................................................................................2
Environmental constraints...............................................................................................................3
Stakeholders.....................................................................................................................................4
Organization structure and design...................................................................................................5
Motivating employees.....................................................................................................................6
Recommendations............................................................................................................................7
Control.............................................................................................................................................7
References........................................................................................................................................8

Introduction to management 2
Summary
Amazon, is unique and well renounced company which was started by Jeff Bezos The
main working of this company is to deal in e-commerce, cloud calculating, digital flowing and
artificial intellect, kindle and known as one of the biggest online company which is used for
shopping and much more. In overall, Amazon is the first web service, which helps in providing
services to end customers. Hence, over time it is seen that the Amazon is able to innovate and
delight the customers this is all because of the incredible workforce which works hand in hand
with the technology and the innovation which mainly come together to delight the customers
every day. By doing this, amazon not only gains the trust of their customers but the focus is on
their customers not on to the other business company (Tidd, & Bessant, 2018).
Further, this report mainly highlights about the various strategies after knowing about the
companies strength, weakness, opportunities and threats.
SWOT- formulating strategies
After analyzing the strength of the amazon, the advantages linked with it highlights
about that by being customer- centric and working over the demand of the customers they are
targeting and attracting the large customer base and forming a longer chain. Another advantage
focuses on global reach, the idea of scalability to appeal the global audience. Amazon also
provide shipping facilities in which outsourcing the entire shipping logistics that benefits
customers from the low shipping cost. Lastly, there are many potential buyers who looks for
variety of products only on Amazon (Onyusheva, & Seenalasataporn, 2018).
Weaknesses- It is always seen that when innovation takes the lead role, at a certain time
it either generate success or gives a great lesson to the company to try something new. Hence, by
doing this, company learns and further works with more innovation techniques that benefit both
the company and customer as well. Therefore, the company needs to revise their certain
strategies so that new strategies help in reducing the shrinkage of the margins. Other than this,
company should also diversify its operations to further strengthen itself against specific risks
such as high debt and tax avoidance. Other than this, amazon should also develop new

Introduction to management 3
partnership in order to reinforce their multinational operations against the strategic challenges
and competition (Majed, Nuraddin, & Hama, 2018).
Opportunities- As amazon tapping the USA by opening their physical stores leads to the
more customer-centric approach. As doing this, what customers wants, for what they demand
for, physical interaction with the ultimate customers generates more success. By joining hands
with the other e-commerce companies and by using their specialty not only leads to more success
by in shorter time generation more of goodwill is also generated.
Threats- In terms of cyber threat, amazon needs to work and use the network protection
measures which helps then in protecting all data on which they work on daily basis. Other than
this, to bet the competition, amazon needs to set more strategies such as physical stores and
working over fast deliveries, upgrading the technology on the regular basis and in terms of
government regulations, the antitrust laws and regulation must to be followed by the company
for long-term success (Onyusheva, & Seenalasataporn, 2018).
Environmental constraints
Political aspect highlights that the amazon gets profits from governmental permanency,
which creates the chances for the business to enlarge and expand its industry in industrialized
zones. Other political aspect or the external factor, which affect amazon, is cybercrime, as they
needs to fight against the cybercrime, which further helps in creating opportunity for the
businesses.
Economic factor highlights that consumer’s disposable income is increasing which is the
great opportunity to expand its business even more and along with this, it also helps in increasing
the market share and brand presence which in total leads to the success of the organization for
longer run.
Social factors, various trends, behavior also affects the performance of the amazon
positively and negatively. As, amazon with its amazing and fast delivery system, majorly
affecting the health of American adults and children therefore, this is majorly affects the lifestyle
of the people. As online shopping is one of the hobby which capitalize the opportunity to tap
more and more customers around the globe (Sebastian, et al, 2017).

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Technological factor highlights that technology made the amazon one of the most
profitable company around the globe. As they use the technology to the fullest for the delivery
systems. By using amazon prime air one of the new delivery system, this technology plays the
major role. However, at the same time company also faces major threat, threat of cybercrime,
which badly affects the performance of the organization (Greenspan, 2017).
Stakeholders
Amazon stakeholders comprises of clienteles, workers, stakeholders, dealers, suppliers,
the local public and lastly administration and supervisory authorities. As all these stakeholders
not only affects the company’s performance but also affects the company’s strategic decisions.
The directors- the board of directors or the investors makes an effort to improve the
performance of the organization and earns profits. Along with this, they manage and enhance the
customers’ services innovations and maintain the cost efficiency in order to boost profits in
future.
Employees- In amazon, the main role of played by the employees, as human resource
helps the company to grow their profits and generate the long- term success and also works to
enhance their career through training and earns higher salaries and promotions.
Customers- customers are the main source for earning profits. As in return they experts
the higher quality of products at the cheaper prices. Moreover, they also seek secure transactions.
They also expect that their information should remain confidential and the websites should
conduct the fair business practices.
Community- community majorly highlights about the common public, which mainly
highlights about the social wellbeing and the social development. Amazon ways of packaging,
increasing green purchasing habits of customers, which is highly impact able for the
environment, also leads to the profitability of the company (de Lima, et al, 2017).
According to analysis, customer and community are the key stakeholders of the amazon
to which they need to give the highest priority because customers are the only source by which
the profits can be increased as they help to build the reputation. In community aspect, amazon is

Introduction to management 5
likely to be affected with social responsibility, which helps in shaping corporate strategy (West,
2019).
Organization structure and design
(Source: Smith, Rupp, & Offodile, 2017)

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Chief executive officer- The key undertaking of business leader is to encounter the
economic outcomes, which are expected by the shareholders. Hence, the main work of boss is to
set the strategic roles and operational roles within the corporation so that it leads to success.
In strategic roles, they need to identify the right target market, optimizing use of the
resources, arranging the meetings at regular basis to discuss the various issues and safeguarding
the operational application of the wealth within the company. Operative roles highlight that
keeping track of the monetary markets, developing various strategies and taking important
decisions to meet the set results.
Board of Directors- The boards of directors are elected by the shareholders, which
majorly accomplishes the role related to the expansion of the financial declarations and tackle the
government issues. They also help in facilitating the new deals with the clienteles and
commercial associates.
Chief monetary and technology officer- They are the significant mechanisms of
Amazon commercial hierarchy. As they manage the various departments of the organization
such as tax control, finances and investors relations. In addition, technology officer handles the
practical actions of the company.
Amazon follows both centralized as well as decentralized decision-making aspect
although the chain of command follows from top to bottom and sometimes when the strategies
are formed then lower level executives are also involved in the decisions. In terms of
formalization, the workings inside the organization are performed in the formal way (Smith,
Rupp, & Offodile, 2017).
Motivating employees
Employees’ motivation is one of the critical factors for the organization, as successful
companies make it as a priority to ensure that every employee should be motivated and remains
engaged in work. There are numerous ways due to which employees gets motivated such as
working environment, new learning opportunities, career development and lastly money
(Thibault Landry, et al, 2017).

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In amazon to motivate employee, they mainly focus on employees’ salary. However,
hope for money, is a huge motivator, which keeps people, going and working hard to achieve it.
Therefore, amazon pays their employees in RSU’s instead of cash, which makes easier for them
to manage free cash flows. Due to this, they work harder and not only enhance their skills and
potential but also fulfills the set have had goals of the organization by generated more success
and reputation in the market (Martin, 2017).
Recommendations
According to analysis, I think to motivate employees; company should work over reward
systems, promotions that help in increasing the productivity and motivate employees towards
work. Other than this, bonus, travel perks or vouchers also helps in increasing the employees’
morale. Recognition is also one of the best ways, which generate the sense of accomplishment in
the mind of employees, and they get motivated.
More innovative techniques and strategies that are needs to be adopted by amazon such
they needs to improve interactions with customers so they get to know more about the customers,
their needs, wants, preferences and much more.
Other than this, fast delivery is the best way to improve the company reputation as well
as targeting more and more of customers, but due to this, more of health issues are seen in the
young generations. Therefore, for improving the health of people, amazon should start up with
the physical stores so that people just visit the store and purchase what they want.
Control
To check or monitor the activities, analysis would like to select concurrent control
approach as it helps in analyzing the processes while they are going on. This control process
helps in measuring the quality of products at that particular time and evaluation is also done
when employees are engaged in their work.
All this can be done when a management generates the employees training sessions,
which will help them in improving the conditions and productivity. Regular tracking of the
employees work also helps the organization to know about the employees and from what all

Introduction to management 8
techniques he/she will work better. According to report analysis feedback control method and
concurrent method will be effective because in concurrent you are on daily basis tracking the
employees performance, what to do, what not to do and accordingly the company will decide
what to do next.

Introduction to management 9
References
de Lima, A. C., da Silva, C. J., de Deus Mateus, W., de Andrade, P. C. M., & de Souza, A. Q. L.
(2017). Stakeholders in community. Natural resources in wetlands: from Pantanal to
Amazonia.
Greenspan, R. (2017). Amazon. com Inc. PESTEL/PESTLE Analysis,
Recommendations. Panmore Institute.
Majed, S. Z., Nuraddin, S. H., & Hama, S. V. S. (2018). Analyzing the Amazon success
strategies. Journal of Process Management. New Technologies, 6(4), 65-69.
Martin, L. (2017). Do Innovative Work Practices and Use of Information and Communication
Technologies Motivate Employees?. Industrial Relations: A Journal of Economy and
Society, 56(2), 263-292.
Onyusheva, I., & Seenalasataporn, T. (2018). strategic analysis of global e-commerce and
diversification technology: the case of amazon. com inc. The EUrASEANs: journal on
global socio-economic dynamics, (1 (8)), 48-63.
Sebastian, I., Ross, J., Beath, C., Mocker, M., Moloney, K., & Fonstad, N. (2017). How big old
companies navigate digital transformation.
Smith, A. D., Rupp, W. T., & Offodile, O. F. (2017). Amazon. com, Inc.: Retailing Giant to
High-Tech Player?.
Thibault Landry, A., Schweyer, A., & Whillans, A. (2017). Winning the war for talent: Modern
motivational methods for attracting and retaining employees. Compensation & Benefits
Review, 49(4), 230-246.
Tidd, J., & Bessant, J. R. (2018). Managing innovation: integrating technological, market and
organizational change. John Wiley & Sons.
West, E. (2019). Amazon: Surveillance as a Service. Surveillance & Society, 17(1/2), 27-33.