Analysis of Change Management in Amazon's Business

This report provides a comprehensive analysis of Amazon's change management strategies, examining its evolution from a bookstore to a global e-commerce and cloud computing giant. The report explores the 'white water' metaphor, highlighting the continuous and drastic changes Amazon has undergone to adapt to the competitive marketplace. It delves into the application of change models, specifically Lewin's three-stage model (Unfreeze, Change, Refreeze), and how Amazon has implemented these stages to manage its growth and transformation. Furthermore, the report identifies and evaluates both internal and external drivers of change that have influenced Amazon's strategic decisions, including political, economic, social, and technological factors. The analysis covers the implications of these changes on Amazon's business, from its early days to its current status as a trillion-dollar company, emphasizing the importance of adaptability and strategic planning in achieving sustained success.

Change Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Explain the extent of how much is inside of white waters and link it with characteristics of
the white water.......................................................................................................................1
Evaluate applications of change module and justify it...........................................................3
TASK 2............................................................................................................................................4
Internal and external drivers of change..................................................................................4
What are implications of change............................................................................................6
REFLECTIVE SUMMARY............................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Change management is a systematic process for transition or transformation of an
organisation' s aims, procedures and technologies. The core purpose of change is to implement
strategies that can effectively implement modifications throughout a company. It supports
employees to adapt new changes because it provides a growth in productivity and performance
of an organization. Amazon is an American electronic commerce and cloud computing company
that is based in Seattle, Washington since 1994. It offers wide range of products such as video,
books, accessories, etc. over internet. It is changed over time to run a effective business that can
sustain in marketplace. Therefore, this report covers white water metaphor along with its
characteristics. It also includes application of known changes, internal and external change
drivers with its implications (Carnall, 2018).
TASK 1
Explain the extent of how much is inside of white waters and link it with characteristics of the
white water.
Change is iterative and integral part of an organization that needs to be implement in
competitive marketplace. If a company wanted to sustain in a marketplace it needs to be adapt
new changes that can give it a growth to increase the revenue of the firm. Change can be define
as alteration in organisation's atmosphere, culture, structure, technologies and people. All of
these needs to be modified after sometime so that a company can adapt continuous
improvements according market trends. If form does not suppose to do so then it has less
possibility to run a business in an effective way. Therefore, change management has two
approaches that are known as white metaphor and calm metaphor. In which calm water metaphor
can be define as slow changes whereas white metaphor refers to drastic changes within an
organization that can be beneficial or risky for an organisation (Cameron and Green, 2015).
As white-water metaphor has lack of environment stability and predictability that's why
organisation's leaders needs to adapt continuous modifications that can support them to survive
in marketplace. It is essential for organization that they plan for changes within a specific time so
that they can gain competitive advantage to stay in the market for a long time. As Amazon
initially established as a book store by Jeff Bezoes who wanted to provide books to the people in
a huge number. The founder wanted to make it the largest company across world that's why it
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firm named as Amazon (largest river in the world). When firm began at that time it was a small
but after sometime 1995 it launched its first websites to sale books and from then owner had a
vision to for growth in e – commerce industry. As being a founder of the company they prepared
strategies that can achieve its targets and due to effective planning firm was successful to sold
books in approximately 50 states of 45 different countries (15 fascinating facts you probably
didn't know about Amazon, 2017). It was the first change that is firm adapted to run a business in
effective way.
In order to make a organization there is a need for planning because growth depends on
strategies. As Amazon was a book store but after launching of internet it was brings a drastic
change in its business. Due to evolution of internet it became successful across the world and in
1999 the owner received an honour for success of famous online shopping website
(Amazon.com's History and Workplace Culture, 2018)
It was always customer centric business because entrepreneur knows that if it does not
focus on customers it will be a failed business. That's why it focused on the customers and
changes its strategies according to competition. In order to do so, owners needs to have a long
term vision that supports its strategies and impactful decisions. There was a time in early stage of
firm when an employee worked for around 60 hours a week. They does not remember anything
but wanted to make Amazon largest organization in the world. Its labours put their entire energy
to complete Christmas orders without sleep because firm had insufficient staff. After that leader
decided that company will hire various seasonal labours so that it can meet its target on time that
can be beneficial for company and customers as well. This was challenge for company to
complete gain employee retention so that they firm will not suffer due to workers turnover.
That's why its started hiring new employees that supports organization process. Due to this
decision, there is a positive change with approximately 269000 employees in organization at
global level.
After fast growth in online book store it again needs to modify its strategies and structure
so that it manage its business on a large scale. As it started to sell in diverse competitive market
such selling online video downloading/ streaming, MP3, audiobook with prime video that is
runs on its own platform. It also provides software, video games, , electronics, apparel, furniture,
food, toys, and jewelry. After step into internet it again changes in its strategies such as it
launched Amazon Publishing in 2009 that composed of approximately 15 imprints which
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consists of AmazonEncore, AmzonCrossing, Montlake Romance, Thomas & Mercer, and so on.
The company was growing with planned strategies to capture entire marketplace drastically
including electronic products such as Kindle e – readers, Fire tablets, Fire TV. This is also
known for world's largest cloud infrastructure company services such as IaaS and PaaS with its
structured subsidiary AWS. In the year, 2017 it also acquired Whole Food Market for $13.4
billion that completely changed its appearance among customers. Amazon reached at US$1
trillion that means that organization acquires second rank after Apple Inc.
These are changes defines as white water metaphors because owner of Amazon
encompasses all changes with planning that implemented as a drastic changes. As much as
challenges are taken by owner firm changes its strategies and structure to achieve goals and
objective that gives growth to company (Kuipers, Higgs and Kickert, 2014).
Evaluate applications of change module and justify it
In order to implement changes in a successful way Amazon needs to adapt a change
management model that can help it in growth of business. It can adopt Lewin's change
management model that is broken into three stages and that is mentioned below -
Unfreeze – This is a first stage of transitioning a business from one stage to future
expected level. At this stage people who are working within the organisation face several
changes and company needs to change their mindset to move out from their comfort zone. In this
stage there is a need to aware people by informing the necessity of change so that they can accept
new changes support organization for that. For example, as in early stage of Amazon it was
selling books through its websites but with increasing use of internet it started to sell various
kind products that continuously gives its growth. In order to sustain in market it has to go
through a challenges like to acquiring Whole Food Market at that time organization needs
support of its employees. But there is a need to communicate information to the employees so
that they can provide help to company (Van, 2014). This stage implies way in which things are
done. Core of organization is re-examined to control crisis which in turn will help to develop a
strong motivation and achieve a equilibrium state. Communication plays a vital role when
changes are made, employees should be aware of what all changes are going to made in an
organization and to know whether these changes are important and necessary.
Change – This stage is known as transition stage in which actual changes are
implemented. In this phase planning is done and those plans are implemented by encouraging
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and motivating people. People fear to adopt these changes as they think these changes can have
some consequences. Organization accepts and changes and work things according to those
changes.
Refreeze – This stage is known as equilibrium stage where people accepts changes and
become familiar with working process. Employees work as per modifications done in existing
strategies and adapt themselves to those changes. Amazon should motivate their employees so
that they can get positive behaviour in work place(Matos and Esposito, 2014).
For an example, in 2004 when Amazon launched its search engine that was named as
A9.com. Along with this it also started a project that was called Block View a visual Yellow
Pages. When this project was started it was necessary for organisation to effectively
communicate with their employees about the new project and new changes that transforms
business process. They informed taskforce that they have to work according to new project
process.
Planning plays an important role in growth of organization. With change in technology
organization needs to do change in existing methodologies,rules and regulations. Strong
motivation is needed so that employees can work more efficiently. Strategies should be made
depending on customers and competition in market.
TASK 2
Internal and external drivers of change
Changes is something which impact the total work environment of an organization. It can
be also defined as when an organization system is disturbed by some external and internal force
then gradually change happens. Change may be good or bad so is descriptive only. Changes are
essential for a business organization because it provides growth to the business. There are some
internal and external forces drivers which forces an organisation for modifications. These
external factors consists of political, economical, social, technological, competitors and
customers that are beyond organisational control. But influences a company from outside to
adapt changes that support it to sustain its position for a long time. On the other hand, internal
factors are those which consists within an organisation and forces firm to adapt new changes that
can enhance its productivity. There are number of changes in the environment which takes place
but mainly there were two main types of changes in an organization which takes place are -
1. External forces
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2. Internal forces
External forces of change management
This is the type of changes which impact the environment directly or indirectly where
the environment doesn't seems any control over it (Worley and Mohrman, 2014). An
organization cannot change the environment and the changes but they can identify and prepared
for the changes which are -
Political forces – Political scenario is changing rapidly due to which economy is facing
quick change. Amazon faces various challenges due to change in policies and regulations and
economic framework in form of liberalization and globalization. Cybersecurity bills (Lozano,
Ceulemans and Seatter, 2015) affected e-commerce industry which are globally recognized and
are dependent on government for their implementation,distribution and profit. Example –
Amazon.
Economical factors – These factors have a great impact on economic area of
organization. Economical factors consists of change in business cycle, deflation rate, change in
interest rates, recession, fluctuation in tax structure, import or export duties are deciding factors.
Change management strategies of organization are affected by challenges and opportunities of
certain growing competitive pressure. For example – Amazon is retail industry which can stand
still during economic crisis and can remain in profit. Disposable income is higher, which allows
people to spend on luxurious items and entertainment which are provided by Amazon
simultaneously.
Technological factors – Technological advancement has significance in increasing
competitive marketplace. Therefore, it is needed for firm that it adapt latest technology that can
enhance its reach towards customers. Therefore, an organisation should take strategic decision
that supports in its growth. As Amazon implemented technological changes that supports it to
provide its effective services and expand in the marketplace. As when it started it online store it
needs to manage its inventory and logistics services to manage its warehouse and delivery at
customer door. In order to manage these things in an effectual way company needs to update its
inventory software that help it to manage its store to track availability of the products.
Customer – As people demands and trends change over time and due to their changing
behaviour they demands for new things. As a few years ago, people likes to read physical books
that they can hold in their hands. But as time changed and internet enhanced its reach customer
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requirement are changed and they start demanding for intellectual books. They can read them
over internet and due to this change in human behaviour Amazon launched a Kindle through
which they read online books. The organisation is customer and that's why it observes customers
closely that that supports it in adapting new changes (Samuel, Found and Williams, 2015).
Competitors – It is necessary for every company to monitor growth of their rivals that
can help to increase its productivity and performance in the marketplace. As Amazon biggest
rival is Alibaba and eBay that provides a wide range of products and services form apparels to
electronic and generates a high revenue. These are the two major competitors which pushes the
organisation to implement new changes that can support it to raise profit. Therefore, Amazon
also provides a huge range of electronics and it is also known as cloud technology provider that
deals in IaaS and PaaS.
Internal force of change management – These forces consists within a company that needed to
be modify over time. Therefore, internal forces of change management are mentioned below -
System forces - A firm can not depend on particular system for long time for this they
need to improve their system to conduct business. There was only one book store when Amazon
started and it adapted a system to order books which were out of stock. It is a system which
should be altered when they launch their website so that they can provide a wide range of
products. Various clusters were formed and divided so that organization can work efficiently
and appropriately (Steigenberger, 2015) .
Inadequate Existing Administrative Processes: Organization works on set of rules and
regulations and certain procedures. With change in time, organization is required to change rules
made by them and administrative policies which they were already using. If changes are not
made then it can result in organizations ineffectiveness. Growth of organization depends upon
policies they form and in which way they manage them. When market value of organization
increases they offer huge amount of compensation benefits to their employees and then
employees give their full effort for growth of their organization (Belias and Koustelios, 2014).
Growth of an organization also depends on satisfaction of employees working there.
What are implications of change
Special staffing need:-
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The need of special staffing is to recruit that person who can work in innovative condition
and can adopt change easily. Through special staffing the organization can appoint that person
who has desired skills and abilities to achieve goal in the changing and innovative condition.
Need of HR :-
HR is important in an organization because they are the person who keep employees
grounded by maintaining employee satisfaction, employment engagement and even maintaining
workplace atmosphere in effective and efficient manner. The main responsibility of HR manger
covers three major areas:- staffing, employee compensation and benefits and define work to
employees according to skills and ability.
Training and development for strong innovative culture:-
Training and development plays important part in strong innovative culture and through it
work is done in proper and effective manner. If any organization is innovate their products they
must provide training and skills development session to them so that they know how to do that
work by saving time and resource through avoiding wastage.
Kotter's change management theory
It is the most popular management theory introduced by John p. Kotter which is used by
organisations to apply changes for getting better outputs. It involves several stages such as
increase urgency, build the team, get the vision correct, communicate, get things moving, focus
on short term goals, don't give up and incorporate change. Moreover, overall these factors
provide support top apply certain modification in given company in order to boost up regular
productivity as well as profitability in proper manner. However, it is essential to implement
various changes in operations so that markets trends can be followed properly to complete actual
requirements of customers. In context of Amazon, they are required to fulfil modified needs,
wants and demands of people to attract new customers along with retaining the current ones to
increase sales of company. Additionally, it will render help to attain growth of business for
future profits and success (Lines, Sullivan and Smithwick, 2015).
ADKAR model:
This theory of change management is goal oriented which converts whole change
management process simpler as every activity is done step wise. As per this theory, HR
department of the organisation can implement change management by targeting its goals at the
initial stage which is further execute by planning each and every step in order to achieve desired
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outcome. In relation to Amazon, HR manager of this company can opt this theory for enhancing
level of knowledge of their employees. In this, special training session will be conducted for
every employee according to their standard of knowledge. As a result it will contribute in
achieving targeted goals of Amazon (Rose, Kriegler and Bibas, 2014).
REFLECTIVE SUMMARY
Working on this project has given me various advantage to enhance my knowledge and
skills in given field. When I get chance to work on this research and discover the concept of
change management, I have got very scared. But with cooperation of team-members, I got
success to complete each activity on time. I have passed through various consequences while
executing this theory. It includes managing conflicts among team-members, complete each
activity on time, utilise limited resource in optimum manner and more. For handling such issues,
I have taken some managerial classes where high trainers have taught me how to behave calmly.
This would help in developing my managerial skills and bring collaboration among team-
members. This research has given me chance to complete project and execute each activity in
effective manner. Thus, now I have become able to take more challenging roles and gain higher
position in an organisation.
CONCLUSION
From the above report it can be concluded that change is requirement of every company
to attain objective and goals of the organisation. Therefore, it needs to adopt change that support
to raft in adverse situations. A business needs to prepare a strategical planning that supports it
sustain on marketplace with focusing on the internal and external drivers. Change management is
a systematic process for transition or transformation of an organisation' s aims, procedures and
technologies. If a company wanted to sustain in a marketplace it needs to be adapt new changes
that can give it a growth to increase the revenue of the firm. In order to implement changes in a
successful way Amazon needs to adapt a change management model that can help it in growth of
business. Changes is something which impact the total work environment of an organization.
Moreover, overall these factors provide support to apply certain modification in given company
in order to boost up regular productivity as well as profitability in proper manner (How
Amazon’s Higher Wages Could Increase Productivity. 2018).
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REFERENCES
Books and Journals
Al-Haddad, S. and Kotnour, T., 2015. Integrating the organizational change literature: a model
for successful change. Journal of Organizational Change Management. 28(2). pp.234-
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Belias, D. and Koustelios, A., 2014. The impact of leadership and change management strategy
on organizational culture. European Scientific Journal, ESJ. 10(7).
Bennett, N. and Lemoine, J., 2014. What VUCA really means for you.
Cameron, E. and Green, M., 2015. Making sense of change management: A complete guide to the
models, tools and techniques of organizational change. Kogan Page Publishers.
Carnall, C., 2018. Managing change. Routledge.
Kuipers, B.S., Higgs, M., Kickert, W., Tummers, L., Grandia, J. and Van der Voet, J., 2014. The
management of change in public organizations: A literature review. Public
administration. 92(1). pp.1-20.
Lines, B.C., Sullivan, K.T., Smithwick, J.B. and Mischung, J., 2015. Overcoming resistance to
change in engineering and construction: Change management factors for owner
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Lozano, R., Ceulemans, K. and Seatter, C.S., 2015. Teaching organisational change management
for sustainability: designing and delivering a course at the University of Leeds to better
prepare future sustainability change agents. Journal of Cleaner Production. 106.
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Matos Marques Simoes, P. and Esposito, M., 2014. Improving change management: How
communication nature influences resistance to change. Journal of Management
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Rose, S.K., Kriegler, E., Bibas, R., Calvin, K., Popp, A., van Vuuren, D.P. and Weyant, J., 2014.
Bioenergy in energy transformation and climate management. Climatic Change. 123(3-
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Samuel, D., Found, P. and Williams, S.J., 2015. How did the publication of the book The
Machine That Changed The World change management thinking? Exploring 25 years of
lean literature. International Journal of Operations & Production Management. 35(10).
pp.1386-1407.
Steigenberger, N., 2015. Emotions in sensemaking: a change management perspective. Journal
of Organizational Change Management. 28(3). pp.432-451.
Turner, J.R., 2014. Handbook of project-based management(Vol. 92). New York, NY: McGraw-
hill.
Van der Voet, J., 2014. The effectiveness and specificity of change management in a public
organization: Transformational leadership and a bureaucratic organizational structure.
European Management Journal. 32(3). pp.373-382.
Worley, C.G. and Mohrman, S.A., 2014. Is change management obsolete?. Organizational
Dynamics. 43(3). pp.214-224.
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Amazon.com's History and Workplace Culture, 2018. [Online]. Available through
<https://www.thebalancecareers.com/amazon-com-company-research-2071316>
How Amazon’s Higher Wages Could Increase Productivity. 2018. [Online]. Available
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productivity>
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