Organizational Strategy and Attributes of Amazon: A Management Report

This report provides a comprehensive analysis of Amazon's organizational strategy and its various attributes. It delves into the company's customer-centric approach, hybrid business strategy, and focus on cost leadership. The report examines Amazon's work processes across diverse industries, including cloud computing and consumer electronics, and details its organizational structure, including the roles of key management personnel. It further explores the company's rules, policies, and the application of operations technology, such as RFID, and its impact on risk management and communication. The report also discusses Amazon's commitment to environmental sustainability, its network organizations, and its initiatives in this area, concluding with an emphasis on the company's dedication to both technological innovation and sustainable practices. The report is contributed by a student to be published on Desklib.

Running head: MANAGEMENT
Management
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Introduction:
The paper discusses about one of the top most e-commerce company of the globe,
Amazon. The paper is focused in the elaboration of the organizational strategy and the
various attributes of the organization related to the work structure and the work processes.
Apart from this the paper provides significant amount of information regarding the rules and
regulations of the selected company. Along with that, the paper shows the impact of the
operations technology in the design of the company. Other than this, the paper also covers the
impact of the environmental richness or the interdependence on the design of the company.
Organizational Strategy and Attributes:
As the main goal of the company is to become the most customer centric company
across the globe, Amazon strategizes in accordance to the preferences and the demands of the
customers. The main motive for the senior management of the company is to make sure that
the customers have the much required trust in the business operations of the company and
that is pretty evident with the significant increment in the urgency of the senior management
of the company in improving the Transaction Risk Management System of the company
(Alumni.iitm.ac.in, 2019). Considering the business level strategy of the company, it is
evident that the company is focused in the application of the hybrid strategy. With the help of
the excellent customer relationship strategy of the company, Amazon is able to design the
products and the services in accordance to the preferences and the requirements of the
customer and one of the significant proof of the fact is the addition of the services such as the
electricity bill payments. Other than this, the company is able to provide the products at a
significantly competitive prices which helps the company in establishing the much required
cost leadership in an intensely competitive market (Rothaermel, 2013).

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Work Processes and the structure of the organization:
The company is seen to function across various industries starting from the cloud
computing, artificial intelligence, digital distribution along with the most prominent
consumer electronics. Other than this, the company is seen to show significant expertise in
selling the products such as the Amazon Echo, Amazon Fire, Amazon Fire TV, Amazon Fire
OS and Amazon Kindle. Considering the services of the company, Amazon.com, Amazon
Alexa, Amazon Appstore, Amazon Music, Amazon Prime and Amazon Video are seen to be
most preferred by the customers of the company (Amazon.in, 2019). The structure of the
company enables the management of the company to establish free and flowing
communication across the various teams and stakeholders of the company. A set of 10
directors headed by Jeff Bezos creates the shareholders group of the company and along with
that, the business operations of the company is seen to be managed by a team of seven
individuals including Jeff Bezos, the President, Chief Executive Officer and Chairman of the
Board, Brian T. Olsavsky, the Senior Vice President and Chief Financial Officer, Jeffrey M.
Blackburn, the Senior Vice President, Business Development, Andrew R. Jassy, the Chief
Executive Officer, Amazon Web Services, Shelley L. Reynolds, the Vice President,
Worldwide Controller, David A. Zapolsky, the Senior Vice President, General Counsel and
Secretary and Jeffrey A. Wilke, the CEO Worldwide Consumer (Amazon.in, 2019). The
mentioned members of the management team are answerable to Jeff Bezos for their
operations and the business activities of their teams.
Rules and Policies of the Company and the application of the Operations Technology:
The company is seen to put strong emphasis in making sure that the employees of the
company align their business activities with the prescribed code of conduct of the company

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(Cunningham-Parmeter, 2016). Along with that, the company has the expertise of making
sure that the suppliers of the organization are following the suppliers’ code of conduct of the
company and are contributing to the ethical sourcing of the materials that constitute the
products and valuable services that the company offer to their customers. Considering the
rules and policies of the company, Amazon has a significantly efficient stand and that is
evident with the no dress code policy of the company. The management at Amazon believes
that forcing the employees in wearing the formal dresses is against the company’s aim of
promoting and practicing the different cultures of the company. The company has the
significant rules and regulations in place for promoting the equal opportunity for the
candidates and that is pretty evident with the recruitment and the selection policies of the
company.
Hence, the formation of the company’s rules and policies has the potential to
contribute to the sustainability of the business operations of the company. The hierarchy or
the executive management team of the company reflects the application of the operations
technology. The expansion of the distribution channel of the company and the inclusion of
the third party sellers is pretty significant in stating the application of the operations
technology for the mentioned company. Other than this, the company is able to secure the
tracking of the best seller products with the application of the Radio Frequency Identification
Devices (Ting & Tsang, 2013). The company is able to create a strong flow of
communication across the various stakeholders associated with the manufacturing and sales
of the company with the application of the RFID technology. Other than this, the Transaction
Risk Management System of the company is seen to be influenced by the operations
technology in a significant manner. The company employs considerable number of efficient
employees for the effective management of the risk associated with the business operations

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with the application of the machine learning. Hence the application of the operations
technology in the various aspects of the business of the company is pretty prominent.
Impact on the environmental richness:
With a precise focus on the business operations of the company, it is pretty prominent
that the company focuses on the environmental sustainability. The executive management
team of the company is able to design the suppliers’ code in such a manner that it ensures that
the suppliers of the company are providing the supply of the materials in ethical and eco-
friendly manner (Zamur, Paiva & Flynn, 2017). The company is seen to take strong actions
against the suppliers that supply the materials through violating the provisions of the
suppliers’ code related to the environment. Other than this, the company faces considerable
amount of criticism regarding the infrastructural set up specifically with the development
centres and the warehouses and that is evident with a recent incident happened in the year
2018 where a community action group showed opposition to the construction permit that was
to be delivered to Goodman Group for the construction of the logistics platform for Amazon
at Lyon– Saint- Exupéry Airport (Aboutamazon.com (2019).
Network Organizations:
The company is able to strengthen their network organizations for maintaining their
status of the energy efficient organization and that is evident with the participation of the
company with the Department of the Energy’s Workplace Charging Challenge where the
company is a part of the public- private partnership that supports the development of the
national plug- in electric vehicle infrastructure. The reflection of these sorts of initiatives is
pretty evident with the offering of PEV charging stations for more than 40000 number of
employees in Seattle (Fastcompany.com, 2019). Other than this, the company signed the

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principles of the Sustainable Fuel Buyers which ensures that the company is committed
towards the service providers regarding the acceleration of the transition to the low carbon
commercial transportation solutions.
Conclusion:
On a concluding note, it is evident that the company is focused in making sure that
they achieve the much required sustainability in their business operations. While the
sustainability matters for the company in a significant manner, the importance towards the
innovation and the incorporation of the technology is seen to increase as well. In a nut shell,
the company is striving towards the growth with a precise focus on both the technology and
the sustainability.

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References:
Aboutamazon.com (2019). Amazon's urban campus. Retrieved from
https://www.aboutamazon.com/working-at-amazon/amazons-urban-campus
Alumni.iitm.ac.in (2019). Retrieved from
https://alumni.iitm.ac.in/wp-content/uploads/2013/08/amazon.pdf
Amazon.in. (2019). Online Shopping site in India: Shop Online for Mobiles, Books, Watches,
Shoes and More - Retrieved from http://www.amazon.in/
Cunningham-Parmeter, K. (2016). From Amazon to Uber: Defining employment in the
modern economy. BUL Rev., 96, 1673.
Fastcompany.com (2019). Why Amazon Is The World’s Most Innovative Company Of 2017.
Retrieved from https://www.fastcompany.com/3067455/why-amazon-is-the-worlds-
most-innovative-company-of-2017
Rothaermel, F. T. (2013). Strategic management: concepts. New York, NY: McGraw-Hill
Irwin.
Ting, S. L., & Tsang, A. H. (2013). A two-factor authentication system using radio frequency
identification and watermarking technology. Computers in industry, 64(3), 268-279.
Zamur, G. A., Paiva, E. L., & Flynn, B. B. (2017). Suppliers’ non-compliance with
sustainability standards: a new perspective based on discrete-choice experiments.