Analysis of Change Management Models for Amazon (Coursework)

This report provides a comprehensive analysis of Amazon's change management strategies, examining the application of models such as ADKAR and Kotter's 8-step model. It delves into the need for change within Amazon, focusing on environmental sustainability, technological advancements, and competition. A PESTLE analysis is conducted to identify political, economic, social, technological, legal, and environmental factors influencing the company. The report explores strategies for managing change, including stakeholder management and addressing resistance. Furthermore, it discusses the implications of not responding to change and emphasizes the importance of leadership roles in driving successful organizational transformation. The analysis highlights the relevance of these models to Amazon's e-commerce operations and overall business strategy, offering valuable insights into how the company can adapt to evolving market dynamics and maintain its competitive edge. The report also touches upon the work climate within the organization and the importance of achieving desired results to avoid heavy layoffs.

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TABLE OF CONTENTS
Contents
INTRODUCTION:..........................................................................................................................................2
DISCUSSION AND FINDINGS :......................................................................................................................3
CHANGE MANAGEMENT MODELS:..............................................................................................................3
PESTLE ANALYSIS.........................................................................................................................................6
PROBLEM FACED BY ORGANIZATION..........................................................................................................8
STRATEGIES OF CHANGE MANAGEMENT :..................................................................................................9
STAKEHOLDER MANAGEMENT MATRIX :....................................................................................................9
MANAGING RESISTANCE TO CHANGE :....................................................................................................10
Leadership roles........................................................................................................................................11
CONCLUSION:............................................................................................................................................13
RECOMMENDATIONS :..............................................................................................................................13
REFERENCES:.............................................................................................................................................14

ASSIGNMENT NO 2
REPORT
INTRODUCTION:
Amazon is one of the known online retailers. Jeff Bezos is the CEO of Amazon.
The first company to sell products online. The company made its own website
named as amazon.com. A web service provider and the manufacturer of the e-book
reader KINDLE. It is the largest e-commerce company that started with a small
online bookseller business.
The reason behind the innovation in the company is the vision of the organization
which is customer centric. The company was customer oriented, like they had
understood the need and convenience of the customer. This is one of the biggest
reasons that e-commerce industry has been taken by Amazon. They have the
biggest market in US where 70% of the online shoppers, shop from Amazon and
have a remarkable growth in other developing countries. The company is operating
in 16 countries and shipping orders through 100 countries. It is basically a wide
organization on the basis of internet connection it acts as direct or indirect source
between retailers. Their main objective is to continuously increase the quality of
customer experience with the help of technology that facilitate the customer or
consumer to find anything buy it and encourage business.
The cloud service of amazon AWS (Amazon web services) has been heavily
carrying orders over the countries and by using its innovation capabilities
providing customers with efficient services. Every order by the customer is treated
efficiently to provide better customer service and making their customers happy
and loyal to them.
They have number of products and services available like amazon drive, Alexa,
kindle, amazon studios, amazon wireless, amazon digital software and video
games.

DISCUSSION AND FINDINGS:
Changes Needed in Organization:
 Need to focus over the environmental sustainability – Environment friendly
offices, warehouses and packaging solutions.
 Need to leverage technology for profitable benefit
 Fight threat of counterfeit products
 Expand its offline business model like opening more retail stores to compete
with other retailers like Walmart.
CHANGE MANAGEMENT MODELS:
1. ADKAR Model
2. Kotler change model
ADKAR CHANGE MODEL:
It is effective when planning change in the organization it empowers leaders by
supporting the employees. It stands for awareness, desire, knowledge, ability and
reinforcement. The ADKAR model is a goal oriented model relevant for amazon
change management. The model is effective for both individual change and
organizational change.
APPLICATION OF ADKAR MODEL:
Awareness: a business must know about the changes occurring around it maybe
internal or external in nature. In order to be in the competitive position they must
be aware about the changes happening which may result the change in
organizations internal and external environment.
Leadership at amazon, Jeff bozos (CEO of Amazon) has a small personal team
who keep the stakeholders aware about the changes required in the company, how
it will impact company’s performance and how the employees will get benefit
from them.

Desire: Desire is linked with the willingness of leaders of amazon management to
bring the change in the organization, beneficial for the employees as well as for the
organization. The change leaders must be hopeful that the amazon change
management would better profits and will reach the sustainability goals.
They have to believe that the change will be better for the organization and will
help out for efficiencies in the process.
Knowledge: knowledge about the change is important, the role of people
responsible for the change and the people impacted by the change. The leaders
should also know about the people and their skills, behavior and job roles that are
included in the change process.
So the amazon leadership will craft a plan with regards to the amazon change
management so there will be no resistance and will be implemented efficiently. All
of this will done by getting knowledge about the people, process and the change
occurring.
Ability: at this stage the knowledge about the change will be converted into action.
The ability of change leaders to implement change without any resistance in the
process of the organization.
In this step amazon have to identify and train the resources to carry out to amazon
change management in organization by giving them the required skills.
Reinforcement: In this step the change is to be reinforced in the organization by
monitoring its effect. The changes made in the organization should be observed
carefully.
Amazon have to monitor the activities repeatedly to see the effect of the
CHANGE, make further changes to it accordingly and reward those employees
who have been a pivotal part of the changing process.
Relevance of ADKAR MODEL to Amazon:
AMAZON change management team will identify challenges and work to resolve
them. They will identify the change strategy. What exactly has to be changes will
be written down in a document? On the basis of it team will manage the change in
organization accordingly. Amazon is required to communicate the people who are
in the change process or who will be impacted by it. Then training will be provided
to the people with knowledge of change management. Then leaders will guide their
teams how to manage the change. The resistance of the employees regarding the

amazon change management will be considered and managed. At the end the
change is to be reinforced in Amazon which will be done by checking the behavior
of people in implementation of the plan. If people are not ready to adapt the change
amazon will be giving training sessions to its employees and rewarding those in the
process of change.
KOTTERS CHANGE MODEL:
This is an 8 step model which contains the following elements:
Creating a climate for change
 Creating a sense of urgency: Amazon will be calling out an urgent
meeting to communicate the occurring change in the organization to its
stakeholders. Informing about the needs for the change and the benefit of it
towards the organization.
 Building a guiding coalition: Amazon has to identify smartest of its
employees to include them as in charge for the change process of amazon
management. These individuals will guide change in the organization and
help others.
 Developing a strategic vision: After communicating the change and giving
in charge of change to the leaders now the company will be changing its
vision statement. Amazon now has to envision the change for the future.
Engage with the entire organization
 Communicating the vision: The entire organization will be engaged
with the change to be implemented. It will done by communicating with
the audience more and more and engaging the stakeholders of amazon in
it.
 Empowering actions: Amazon will push forward to achieve the goals
required for the change, removing all the possible barriers. Teams will be
allocated to the task to clear any resistances coming in path of the change
implementation process.
 Short term wins: For the amazon change management process it is
important to keep the employees motivated to carry it on. The leaders
will celebrate on achieving the goals. This will keep everyone’s spirits
high and and will look forward to the change positively.
Implement and change substance

 Acceleration of change: After implementation of change, to keep up with
the change is the most difficult part. Amazon has to consistently work to
keep up with the strategy and going with the momentum of amazon change
management which is the most challenging part.
 Reinforcing change: Amazon has to look towards the employees to make
sure that they are tuned to the new vision of the organization. The new
vision should be made part of the culture. And everyone has to abide by it in
order for the successful completion of the goals.
Q2
PESTLE ANALYSIS
There are various factors that can drive need for change in the organization.
They can be internal or external factors. We will be attempting the PESTLE
analysis .This analysis will help amazon analyze the changes required.
POLITICAL FACTORS INFLUENCING AMAZON:
As amazon operates in many countries so they come under different political
influence which can be a opportunity for the company or threat for its
operations, which can require change. Political stability or instability can be a
opportunity or threat that can require change in amazon operations.
ECONOMIC FACTORS:
The economic factors can have effect on amazon through different ways like
stability economies in developed countries, under developed countries
developing in e-commerce is a opportunity for amazon.
They can expand their operations to the developing countries which will be a
positive change in the organization.
TECHNOLOGICAL: technology changes through time and inventions occur
on day to day basis so an organizations needs to keep itself updated according
to the new technology in market which requires change in strategies and
management process. Technology getting obsolete over time can be a threat for
the company so they should be updating their system and operations.
As with the technological advancements in counterfeit goods and cybercrime,
so amazon has to update its technological assets in order to deal with them.

Example:
Currently amazon is delivering through shipment through the countries and then
deliver them through means of transportation. As the technology has driven
many changes in the environment so the customer’s needs and priorities have
also changed because of which the organizations also need to be changed. So
amazon is planning to bring change in its delivery method through technology,
making delivery of parcels through drones.
SOCIAL AND POLITICAL CHANGES:
The change in social trends will make the organizations to bring the changes .As
for the political changes, the government policies and restrictions will force for
change in the organization
For example:
The social culture was made of buying products online and consumer demand was
to have a product quickly and in a convenient way. So amazon changed its
strategies according to the customer needs.
LEGAL FACTORS:
Amazon has to abide by the legal restriction of e-commerce business in order to
run its platform. Import and export regulations, product regulations and laws for
environment protection are significant here.
ENVIRONMENTAL FACTORS:
Environmental factors drives change in the organization because the operations of
the company should be safe for the environment and if not then it has to bring the
change in its operational activities.
For example:
As amazon has an online business model, however the operations of the company
i.e. supply chain or packaging material may cause harm to the environment. So
amazon has to bring change in its packaging material like it should be bio gradable.
Environment sustainability has been adopted by many organizations in the world to
reduce effects on the environment of its activities.

WORK CLIMATE: work climate or work environment of a company should be
motivated, effective and satisfied for the employees. If it is a pressurized and
demotivated environment it will result in high layoffs.
For example: amazon had a high pressure work environment which was
challenging for employees. Then the company changed its environment described
as purposeful, comfortable, motivated environment.
NOT ATTAINING DESIRED RESULTS: when an organization could not
reach its goals and expected results then this drives the need for change in
organization. The organization may face loss and cut cost by instituting heavy
layoffs. But some organizations may see it as a symptomatic of a failed strategy
and then make changes in it. Example: Amazon Company failed by focusing on
new technology without customer value. They lost customers because of the wrong
strategy.
IMPLICATIONS OF NOT RESPONDING TO THE CHANGE:
As per the environmental sustainability, all the companies are adopting
environmental sustained operations and activities even material used in production
and packaging. But amazon has still not adopted the change and is lacking in using
recyclable and bio gradable material in its packaging. If they don’t respond to this
change they may face some lawsuits against it and will face financial losses
because of it. As the consumers also prefer those organization who are
environment friendly.
If they don’t respond to change in policies of government they had to bear heavy
financial losses. If amazon don’t respond to changes in the internal and external
environment then they would be left out from the competitive market and bear
losses against it.
So if a company does not respond to changes in the internal and external
environment then they will bare losses that will make the company less
competitive and efficient and they have to face the consequences.
Q3
PROBLEM FACED BY ORGANIZATION: Amazon is facing problems
in its supply chain. There are long delays in deliveries of orders of customers. The

reason behind it is increased consumer traffic towards the platform which company
couldn’t handle.
Because of this problem they have to bring change into their strategies.
STRATEGIES OF CHANGE MANAGEMENT:
To overcome the long delays in deliveries they have to make strategies accordingly
in order to bring change in management /
 They should increase ports in order to solve supply chain issues and should
increase container processing capacity.
 They should increase their air cargo fleet to easily deliver products on time
across large distance countries.
 Build warehouses in maximum areas where the demand and traffic of orders
is high for convenient and in time deliveries.
STAKEHOLDERS: Stake holders are the individuals, group or any other
business that is effected by the organizational activities and policies and who have
interest in the organization. The stakeholders maybe internal or external. Internal
stakeholders include employees, shareholders, directors and owners. And the
external may include suppliers, government, customers, competitor etc. After
identifying the stakeholders s
STAKEHOLDER MANAGEMENT MATRIX:
Manage closely: High power and highly interested people involved in this part.
They should be engaged fully (inform the benefit of change to the people and its
organization) and should be satisfied with the change. These are the shareholders
and the directors, they will be told about the strategic change planning about
changings in the supply chain. If the delivery method is being changed like
increasing ports and starting air cargo the shareholders shall be informed about it
and the benefit that the organization will have through it.
Keep satisfied: They have high power but low interest .The government should
be keep satisfied. They should be informed about the change and implement
change after telling them before doing the change the policies should be told them
accordingly so they accept the . If you are increasing the number of ports than it
should be informed to government otherwise if it’s against the policies the
organization will have to face fines and taxes.

Keep informed: the Employees of the department in which the change will occur
should be kept informed about the change so the activities are pre planned and
operational according to it .they have low power high interest. And should be
informed before the change and train them during the change.
Monitor: the suppliers and customers should be kept monitored. They have low
power and low interest but should be kept informed and monitored. As more
warehouses will be made so the supply chain should be kept monitored in order to
run the system smoothly and efficiently.
MANAGING RESISTANCE TO CHANGE:
If resistance occurs due to change then the following should be involved in the
strategic process to manage resistance:
1. Listen to the concerns of the employees
2. Communicate the reasons for change and define it .
3. Build interest in them to adopt the change by telling the employees and
stakeholders their personal benefit
4. Give priority to their opinions
5. Train them accordingly
6. Implement change slowly and partially
7. Overcome the inevitable
ENGAGEMENT OF STAKEHOLDERS TO CHANGE AND MANAGING
RESISTANCE:
The stakeholders are informed about the change process so that they can play their
roles accordingly told by the change agent and the team of change management
responsible for it. Amazon’s strategy for implementing the change is to make sure
that stakeholders are informed about it. The stakeholders are informed through the
following ways:
 Communicate: Amazon ensures that its stakeholders stay informed about
the amazon change management plan by using its social media platforms
(internal Facebook company page, intranet of company, circular, drafts etc.)
 Consult: Consulting can reduce the resistance in the workplace and of the
stakeholders as well. Amazon gives stakeholders awareness regarding the
change and respond to their questions asked and consult with them or
remove resistance.

 Collaborate: Amazon partners and collaborate with its stakeholders because
the company cannot run without their cooperation and the change won’t be
implemented effectively.
 Co-create: amazon has to innovate the change strategy by innovative and
creative ideas whenever they will be facing any issue in the change process.
Q4
Leadership roles
Leadership:
Leadership is a component that is needed to achieve a goal or perform a task with a
team. The team members look upon the leader for motivation, and when the leader
appreciates the work of the team members they become more motivated and
confident.
If a organization has accomplished a successful change it’s just because of its
leaders. The success is dependent on the leaders, who guide and motivate its
members to accomplish goals and task effectively.
Leadership roles:
Leadership roles are the responsibilities and duties of a leader to manage a
situation or reach a goal. He manages a team of people or even a organization
ethically and effectively. It is their responsibility to keep the morale of their
members high, to help them reach out the goals in full potential.
EXAMPLES:
Coach: Providing support to employees to succeed in their goals.
Networker: To make a network of people inside and outside organization.
Delegator: Assign task according to the strength of their members.
Strategist: Strategize ways to help the company succeed.
Motivator: Source of motivation for the team.