Business Organization Analysis of Amazon Spain: A Detailed Report

This report provides an analysis of Amazon Spain's business organization, focusing on its mechanistic or organic structure, core work processes, and growth strategies. It identifies Amazon's functional hierarchical structure, emphasizing its ability to foster communication and adapt to changes. The report examines Amazon Spain's e-commerce platform management, customer tracking, and expansion strategies, highlighting customer centricity, innovation, and corporate agility as key growth drivers. It also explores the evolution of the organization in response to technological advancements and customer needs, emphasizing customer service and sustainable practices. Finally, the report addresses potential causes of organizational decline, such as issues with new product introductions and crises related to growth and coordination.

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Table of Contents
Identification of the mechanistic or organic structure of the Company..........................................3
Identify the core work processes of the company...........................................................................3
Identify the size and growth needs of the Company........................................................................4
Evolution of the organization of the company according to the needs of growth and size.............4
Possible causes and stages of the organizational decline of the company......................................5
References........................................................................................................................................5

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Identification of the mechanistic or organic structure of the Company
Mechanistic organizational structure means either hierarchical or bureaucratic, which
manages centralized authority, power and management of formalized policies, procedures and
practices for ensure specialized functions’ management. It is easy and convenient to organize
though there can be challenges faced by the companies during the organizational change. The
organic structure of the organization enables horizontal communication and manages
decentralization for ensuring formal and informal engagement in the process of decision-making.
Amazon in Spain boosts of a functional hierarchical structure to manage functions across groups
at different levels of the organization (Amazon.es 2018). Due to the decentralization and
engagement of the formal and informal group members in the decision making process, it has
been easier to foster better communication, enabling flexibility and adaptable to changes. The
level of freedom for the employees could also allow for better human resource management and
accomplish the tasks with much and efficacy (Wilden et al. 2013).
Identify the core work processes of the company
The major work process of Amazon Spain is the management of e-commerce platform
for promoting innovation and making it convenient for the less tech savvy customers to purchase
products and services online. Another major work process managed by Amazon Spain is the
tracking of customers and checking the online visitors every day. This could not only help to
analyze the customers accessing the website, but would also be easy to communicate with them
and make them informed about the products and services delivered by the company. There are
currently 13 countries where Amazon operates including United States, United Kingdom,

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Germany, France, Canada, India, etc (Dust, Resick and Mawritz 2014). Amazon has managed its
operations in Spain and does not differ much as well, because the products are available online,
which creates convenience for the customers to place orders online and get the products
delivered at their doorstep.
Identify the size and growth needs of the Company
The size of the organization is huge and to maintain consistent growth by fulfilling the
needs and preferences of the customers, Amazon has expanded its business operations with
evolvement of media through Amazon Prime and managing publications through The
Washington Post. The major aspects that have allowed Amazon Spain to manage its growth
needs are its customer centricity, innovation and creativity, corporate agility and continuous
optimization (Laloux 2014). Amazon, Spain has tried to stay ahead of its customers always to
make sure that they are kept satisfied and their needs and requirements are fulfilled. This has
created a positive mindset among them and influenced their buying behaviors too. One of the
major aspects of fulfilling the growth needs could be Amazon’s ability to innovate its products
and services to keep its customers engaged and this brought value to its customers too. Amazon’s
flexible yet agile business operations have further contributed to the growth and development
and allowed for generating more revenue in business (André, Kraut and Kittur 2014).
Evolution of the organization of the company according to the needs of growth and size
The company evolved tremendously with the introduction of smart phones and internet
usage, which created ease in purchasing the products and services online. There were room for
improvements that were grabbed wholeheartedly by Amazon, Spain and eventually the customer

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started to make purchases. The company maintains consistent customers’ services, which helped
in establishing good relationships with the customers and even the profit level increased (Wilden
et al. 2013). The company emphasized on bringing value to its customers through the
maintenance of sustainable methods and embracing corporate social responsibilities to influence
the consumer behaviors too. Amazon, Spain also prioritized on the shipping techniques, business
supplies and delivery of grocery items, all of which could be major drivers of growth and
development (Bolden 2016).
Possible causes and stages of the organizational decline of the company
During the growth phase, Amazon might face issues while introducing a new product and
if it does not cater the needs and requirements of the customers, then it could lead to business
decline. By managing growth through direction, there could be crisis situations related to
autonomy and power, which might hinder the successful growth and development of Amazon,
Spain. Growth through coordination could also cause red tape crisis that might further result in
lack of maintaining a proper organizational structure and culture (Amazon.es 2018). This would
result in lesser business growth, profit generation and inability to gain competitive edge over its
competitors within the Spanish retail sector too.

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References
Amazon.es. (2018). Amazon.es: compra online de electrónica, libros, deporte, hogar, moda y
mucho más.. [online] Available at: https://www.amazon.es [Accessed 2 May 2018].
André, P., Kraut, R.E. and Kittur, A., 2014, April. Effects of simultaneous and sequential work
structures on distributed collaborative interdependent tasks. In Proceedings of the SIGCHI
Conference on Human Factors in Computing Systems(pp. 139-148). ACM.
Bolden, R., 2016. Leadership, management and organisational development. In Gower handbook
of leadership and management development (pp. 143-158).
Dust, S.B., Resick, C.J. and Mawritz, M.B., 2014. Transformational leadership, psychological
empowerment, and the moderating role of mechanistic–organic contexts. Journal of
Organizational Behavior, 35(3), pp.413-433.
Laloux, F., 2014. Reinventing organizations: A guide to creating organizations inspired by the
next stage in human consciousness. Nelson Parker.
Wilden, R., Gudergan, S.P., Nielsen, B.B. and Lings, I., 2013. Dynamic capabilities and
performance: strategy, structure and environment. Long Range Planning, 46(1-2), pp.72-96.