Comprehensive Analysis of Leadership and Ethics at Amazon Inc. Report

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This report provides a comprehensive analysis of leadership at Amazon Inc., examining its mission and vision statements, and assessing its internal and external environments. It delves into the company's performance management policies, evaluating its system and ethical concepts. The report explores Amazon's leadership style, emphasizing customer obsession, ownership, and high standards, and reflects on the application of transformational leadership within the organization. The analysis includes an assessment of the company's strengths and weaknesses, opportunities and threats, and concludes with recommendations for further improvement, providing a detailed overview of leadership practices and their impact at Amazon Inc.
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Human resource management
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TABLE OF CONTENTS
Introduction......................................................................................................................................3
Part I.................................................................................................................................................3
Amazon .Inc.................................................................................................................................3
Assessment of mission and vision statement of Amazon. Inc.....................................................4
Assessment of internal and external environment.......................................................................5
Performance management policies..............................................................................................6
Part II...............................................................................................................................................6
Assessment of Amazon Inc. performance management system................................................6
Ethical concepts of Amazon .inc.................................................................................................7
Part III..............................................................................................................................................8
Reflection on Transformational leadership.................................................................................8
Conclusion & Recommendation......................................................................................................8
References......................................................................................................................................10
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INTRODUCTION
A successful leader knows their Personal Leadership Philosophy (PLP) in an appropriate manner
and is able to communicate the same by living it fervently every day in their every activity
(Bolden, 2016). They have provided appropriate time in ascertaining their values and priorities.
Values followed by a leader not only affect the decision of the management but also affects the
whole organization (Michael, 2015.). The present report deals with the assessment of leadership
at Amazon Inc. A detailed assessment of leadership philosophy followed at the organization has
been appropriately discussed. Further, ethical policies followed by the company have adhered in
order to ascertain the extent to which value is followed and believed by the management.
PART I
Leadership is a privilege that takes along with it the duty to encourage others and also to direct
them towards the accomplishment of vision and objectives of the company. Bolman & Deal
(2014), asserted that the most significant asset of the leadership of professional development is
obtaining an interest in them as individuals and identifies their success. For the achievement of
this, it is vital to consider that news about leadership is good as well as bad also in order to make
others authorize towards making a decision is significant to budding future company leaders
(Long, 2017). Leadership only entrust on decisions which leaders believe that subordinates
should take. Decisions which are improper towards the level of responsibility or which are
outside the/ability level are don’t even asked while making a decision (Răducan & Răducan,
2014).
Amazon .Inc
Amazon Inc product line comprises a vareity of media forms such as books, music, DVD
software etc. Apparales, baby product, electronics, health and personal care items are also
provided by the company. It also deals with product relating to kitchen items, sporting
equipment, musical instruments, automative toys and games. The company also provides whole
trade bananas and organic avocados and other organic vegetables through its subsidiary Whole
Food Market Inc. The organization structure of company is prominent as , firstly the assignment
is verified, and after that only same is trusted and later on it is passed and micromanaged.
Leadership grants direction and support. Leadership welcome opportunities to do work on equal
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basis to employees all over. But later on, it is recognized that job of each employee in a company
is different and which is not exchangeable.
Assessment of mission and vision statement of Amazon. Inc
Vision Statement
The vision statement followed by Amazon is “Being world’s customer-centric company so that
consumers can purchase and discover anything the required online”. In order to attain the
same, “global reach” component has been included in Amazon.com Inc.’s vision statement
regarding international leadership in the e-commerce market. Thus, a corresponding strategic
objective is global expansion, especially through market penetration and market development.
The “customer prioritization” component of Amazon’s vision statement represents that the firm
considers customers as the most important stakeholder group in the online retail business.
Moreover, the vision statement indicates continuing efforts to broaden the product mix, under
Amazon.com Inc.’s marketing mix approach (Gregory, 2017). Under mission, vision department
and values of department leadership promote creativeness and liberty of action. In view of
Coghlan & Brannick, (2014), leadership desires that each and every individual in the department
to be proud of the work they are doing, appreciate contributions of their jobs in the overall
department and believe that in some way they also can provide leadership.
Mission Statement
The mission statement of Amazon mission statement is as follows: We endeavour to provide
our customers with the lowest possible prices, excellent selection, and the maximum
convenience.” The “lowest prices” component of the mission statement refers to the pricing
strategy. Such low prices are a selling point that makes the company’s e-commerce website and
service attractive (Gregory, 2017 ). A consistent strategic objective with this aspect is to make a
reduction in operational costs. Amazon’s mission statement also focuses on the attainment of
best selection. Gregory, (2017) asserted that the availability of a wide variety of products on the
company’s website is a major factor that attracts customers. Moreover, Amazon.com Inc.’s
mission statement emphasizes convenience; the same is a general criterion used by customers for
evaluation of the quality delivered by online companies.
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The mission statement of the company is satisfactory as it is established on best practices in. It is
inclusive of product selection, pricing, and service quality which assess the strategic direction of
the e-commerce business. Nevertheless, it is suggested that mission statement should also cover
characterization of the nature of the business, such as its e-commerce nature. The same will
assist in specifications of strategies for the online retail business.
Assessment of internal and external environment
Internal Environment
Strength Weakness
Strong background: The company has
been evolved as global e-commerce
giant and has wide product categories.
Customer centric: Company robust has
developed customer centric process in
order to provide product as per
preference of customer.
Prominent delivery Network: A deep
and organized distribution exists in
order to provide delivery in remote
location too.
High Debt: In order to make business
successful in developing countries
overall profitability is being affected
and same is transforming into high
debt.
Reduced margin: The company has
extensive distribution network but at
the same time organization is dealing
with price war; thus the same has
shrinked the margin.
External Environment
Opportunity Threat
Acquisitions: The exposure available
relating to acquisition of other e-
commerce company is available.
Through same it can reduce
competition and apply specialized
capacity of other companies.
Global Exposure: Expansion in
developing countries will be proved
Low entry barrier: It is one the major
threat as it leads to enhance the existing
competition and shrink the profit too.
Government provision: It is believed as
big obstacle as no clarity in related
provision exists.
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best opportunity as less competition
exist in these markets.
Performance management policies
Acquiescence with Laws, Rules and Regulations: It is vital for employees to follow related laws,
rules and regulation forever (Goetsch & Davis, 2014). Employees can communicate with Legal
Department in case they have any queries about the applicability of law, rule or regulation.
Insider Trading Policy: Central and state laws ban dealing with securities by persons who
contains material information that is not usually famous or accessible to the public. It is supposed
that each and every employee of Amazon.com must obey Insider Trading Policy Guidelines.
There are some employees who should obey among trading windows and preclearance needs
while trading with Amazon.com securities. All employees are predictable to review and follow
the Amazon.com Insider Trading Guidelines (Julia & et al.,2016).
Discrimination and Harassment: Amazon.com offers equivalent chance in all aspects of
employment and also not accepts any illegitimate inequity or any type of stalking. For more
details, notice guidelines of Amazon.com on Equal Employment Opportunity and Workplace
Harassment under Amazon.com Owner’s guidebook.
PART II
Assessment of Amazon Inc. performance management system
The concepts followed by management of Amazon Inc relating to leadership comprises the
following variant, i.e. customer obsession, ownership, simple provision and rules, hiring and
developing the best and other relating variants.
Customer Obsession: Leaders begin with customers and work rearward. Though leaders also
give attention towards their competitors and obsess over customers (Amazon Leadership Style,
2017).
Ownership: Leaders are considered as owners of the company. They do not forgo long-term
value for short-term results. Leaders operate in place of the whole corporation, beyond just their
own team.
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Simple provision and rules: Leaders anticipate and want improvement and development in their
employees who are working under him with discovering methods of making things simpler.
They are always alert and stare for innovative thoughts from everywhere, not restricted by “not
originated here”.
Insist on the Highest Standards: Leaders contains persistently high
standards there are lots of people who believe that might be these standards
are irrationally high (Amazon Leadership Style, 2017).
Hire and Develop the Best: Leaders increase the bar long with each hire
and promotion. They identify exceptional skill; eagerly move them all over
the organization. Leaders build up leaders and take sincerely their task of
training others.
Big Thinking: Leaders build up and converse a bold path to encourage results. They think in a
different way and look around corners for a method to keep customers save.
Ethical concepts of Amazon .inc
While executing the task employees of Amazon.com have to operate legally, morally and in the
best manner in concern of Amazon.com. This code of Business Conduct and Morals frames
essential guiding principles. Employees who are not confident about whether their behaviour or
the behaviour of their fellow workers fulfil the code of conduct must speak to their managers or
the legal department (Cummings & Worley, (2014 ). Even employees can also report any
suspected noncompliance the same as supplied under Legal Department’s reporting guidelines
which are described below:
Variances of Interest: It is necessary to be assured by employees that while executing their task
they should utilize their opinion every time and in all manners with the concern of Amazon.com.
Conflict of Interest prevails at the time when personal interest of employees hinders among that
of Amazon.com interests (Joseph, 2015). For instance, Conflict of interest takes place when a
worker or family member gets a personal benefit like a reward of the employee’s position with
Amazon.com. It also occurs from an employee’s business or personal connection among
customer, dealer, competitor, business partner or another employee. Since employee’s takings of
gifts or services can build conflict of interest Legal department, make guidelines for the
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revelation of gifts or services obtain by company or others. Employees must try to stay away
from conflict of interest and employees who think the conflict of interest might exist must inform
it to legal department on time (Walker & Walker, 2016). Legal department will judge all
information and conditions to decide whether remedial or justifying actions is suitable.
PART III
Reflection on Transformational leadership
The word “transformation” might bring in mind the image of action for starting somewhat new
and discontinue which is not effective, working restlessly to achieve the objective (Leadership
Development, 2015). However, it is our mania with a performance that often weakens important
transformation. It could be assessed that in case of transformational leadership, even if direction
has arrived from leaders, managers are the means of modification, straight leading and
manipulating the most of employees in a company. Since Confucius said, “There are three ways
through which wisdom can be learned: first through reflection, which is noblest; second through
imitation, which is easiest and last through experience, which is bitterest ”. Transformation
leadership is appropriate believed formed of leadership through which appropriate management
of an organization is possible to the maximum extent (Lessie., 2017).
As far as I have assessed HR leaders can assist manager’s shape out reflection time through
promoting and also facilitating to arrange sessions determined on lessons learned equally for
managers and teams. Sessions might be bi-annual or annual for teams, as individual coaching
session for managers can be useful on a more common basis. At the individual level, reflection is
able to restore one’s management approach. On a team level, reflection is essential for efficient
plan setting- i.e. the manner in which team exerts mutually to fulfil the objective of the company
in front of them. Ultimately, these sessions know how to assist build up the habit of reflection
and promote a more reflective workplace society. Thus, Amazon Inc follows transformation
leadership philosophy to a significant extent. The same has been asserted through ascertaining
the manner of making a decision by the management.
CONCLUSION & RECOMMENDATION
Entrepreneurs and other senior executives have to face difficulties in order to attain the
objectives of the organization due to lack of qualities of an effective leader. It could be asserted
from above study in case of the existence of efficient leadership skills an organization is able to
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attain its objectives easily as well as in an efficient manner. The vision and mission statement of
Amazon states that the management incorporates the same in their everyday operation so that it
could be attained in a predetermined way. Appropriate ethical values are being followed by the
organization, and same could be assessed from the discussion provided regarding ethical code of
conduct followed by the organization. The best practice followed by the company is that it does
not sacrifice long-term values in order to attain short-term goals. Thus, values are followed in a
continuous manner as well as given required priority. It is one of the main reasons that company
has been able to attain its objective and known for appropriate management of the organization
as well. It could be depicted from above discussion that appropriate leadership skills are
available within the management of Amazon Inc as they are able to train the employees for the
attainment of objectives of the organization and provide equal opportunity to each employee for
proving them as well.
The company should appreciate tradition and values, but it also assesses new approaches and
thoughts. As it is important for the leaders to understand when to act and when not to act and
must know why a particular decision was taken, thus the same should be considered by the
management. Leadership has the responsibility to identifying and reward involvement
throughout goods will be achieved. Criticism encourages fears and praise encourages dedication
towards achievement, same should be followed by the management. Every success has scope for
progress. Leadership tries not to merge computer towards debrief and enhance event, method or
product and same should be considered by the company. It is believed that most important role
of leadership is to extend leadership and pleasure at all levels of the company and it should be
followed to attain the overall objectives of the organization.
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REFERENCES
Amazon Leadership Style. (2017). Available through < http://denverleadership.org/whats-
amazons-leadership-style/>. [Accessed on 16th May 2018]
Bolden, R. (2016). Leadership, management and organisational development. In Gower
handbook of leadership and management development (pp. 143-158). Routledge.
Bolman, L., & Deal, T. (2014). Leadership and management. Christian Youth Work in Theory
and Practice: A Handbook, 245.
Certo, S. C. (2018). Supervision: Concepts and skill-building. McGraw-Hill Education.
Coghlan, D., & Brannick, T. (2014). Doing action research in your own organization. Sage.
Cummings, T. G., & Worley, C. G. (2014). Organization development and change. Cengage
learning.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Gregory L. Amazon.com Inc.’s Vision Statement & Mission Statement. (2017). Available
through < http://panmore.com/amazon-com-inc-vision-statement-mission-statement-
analysis>. [Accessed on 16th May 2018]
Joseph, L.,(2015). 10 Leadership Lessons and Quotes From “The Intern”. A Reel Leadership
Article. [Online]. Available through <http://www.jmlalonde.com/10-leadership-lessons-
and-quotes-from-the-intern/>. [Accessed on 16th May 2018].
Julia B., Peter J., Judith F., Catherine C., Jessica A., & James B.T. (2013). Effective in-service
training design and delivery:evidence from an integrative literature review. [Online].
Available through <https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3850724/>. [Accessed
on 16th May 2018].
Leadership Development. Leadership Lessons In Mentoring – ‘The Intern’. (2015). [Online].
Available through <https://www.ldl.co.uk/blog/leadership-lessons-in-mentoring-the-
intern/>. [Accessed on 16th May 2018].
Lessie., A. (2017).Training Needs or Training Wants Analysis?Business Performance. Available
through <http://www.businessperform.com/articles/training-practice/training-needs-
survey.html>. [Accessed on 16th May 2018].
Long, A. (2017). Leadership and management. ABC of Clinical Leadership, 5.
Michael H. What Robert De Niro Taught Me about Leadership. (2015). [Online]. Available
through <https://michaelhyatt.com/robert-de-niro-intern/ >. [Accessed on 16th May 2018].
Răducan, R., & Răducan, R. (2014). Leadership and management. Procedia-Social and
Behavioral Sciences, 149, 808-812.
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Walker, J. R., & Walker, J. T. (2016). Introduction to hospitality management. Prentice Hall.
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