Analysis of Amazon's Operations Management Strategies

This report provides an analysis of Amazon's operations management, focusing on key approaches such as Total Quality Management (TQM) and Just-In-Time (JIT) production. It examines the roles of leaders and managers in optimizing resource utilization and maintaining product quality to ensure customer satisfaction. The report further explores the importance of operations management in achieving organizational goals, emphasizing its role in systematic planning, organizing, and controlling activities. It also investigates factors influencing the business environment, including global competition, technological advancements, and resource scarcity, and their impact on operational efficiency. The analysis includes a critical evaluation of operation management strategies and their influence on the wider business environment, including the importance of supply chain management and the adoption of new technologies to maintain a competitive edge. The report concludes by highlighting the significance of continuous assessment and monitoring to eliminate inefficiencies and achieve economies of scale.

MANAGEMENT AND
OPERATIONS

P4. KEY APPROACHES
• Key approaches to the operation management and role of the leaders and managers plays.
• There are different type approach and methods through which effective management of
operation be done by the Amazon, the company is using effective tools of operational
management which helps them in producing the best quality products which ultimately
satisfying the needs and wants of the customers
• Operational management is basically the area which concerned with designing and controlling
the completer process of production, it concerned with converting the raw material into
finished products by efficient and optimum
• Utilisation of resources to maximise the profit of the organisation.

SOME APPROACHES OF OPERATIONAL MANAGEMENT
ARE
• Total quality management
• Just In Time

TOTAL QUALITY MANAGEMENT
• stands for total quality management which describes the approach of long term success
through customer satisfaction.
• That is providing the best quality of products and services to the customers as they can get
attracted towards the Amazon through long run.
• As customers never sacrifices with the quality.
• All the members of the business participate and perform their activities in improving the
performances, products and services, and the culture in which they are working to provide the
best quality in effective time to the customers.

JUST IN TIME
• this is also known as just in time production which is the method of reducing the time of
the production system as well as response the time from suppliers and to customers.
• It is the inventory management method in which material are scheduled to arrive on the
time so that supply to the customers can also be made on time which leads Amazon to
eliminate the delays in production process and they Wil be able to make goods available
as and when needed.

CONTINUE
• The role of the managers is to focus on the operations of the company that all the
resources should optimally utilise and to maintain the quality of goods and service such
that it leads to customer satisfaction ad help overall organisation also in achieving its
objective as customer satisfaction leads to capturing larger market share and long term
retention of the customers which also ensures in creating strong brand value. Also, It is
the duty of the manager to allocate resource efficiently. the leader role is to enhance and
encourage the management by focusing on the quality results and management.

P 5. Analysing the importance and value of operations
management in achieving desired goals and objectives of the
organization.
• Operation management helps in systematic planning, organizing, directing, managing,
controlling and monitoring the activities and operations of Amazon. Operation
management is important and beneficial for the organization as it helps in improved
productivity and performance of the organization. Operation management helps Amazon
in meeting customer's competitive priorities. This helps amazon in efficient utilization of
resources which leads to increased efficiency and productivity for achieving desired goals
and objectives of the company (The importance of operations Management, 2009).

CONTINUE
• Operation management is of core significance for the development and improvement of
the organization which helps in controlling the entire operations of Amazon which leads
to achieve organizational goals and objectives.
• Management and operations is important for Amazon to achieve economies of scale and
helps in achieving cost objectives effectively and efficiently for increased operational
performance and productivity. Continuous assessment and monitoring of operations helps
in eliminating inefficiencies by setting standards and benchmarks for effective quality
control and attainment of goals and objectives.

CONTINUE
• Amazon is one of the leading e-commerce company and is customer centric by making
products available at lowest price and in good quality.
• This business objective of satisfying customers with their improved quality and services
helps Amazon in increased sales and higher customer base.
• Operation management is crucial for the company as it helps them in implementing and
adapting newer products and technology by setting high standards which benefit them in
achieving desired goals and objectives of the company.

M 4. Analysis of these factors which influence the business
environment and wider community.
• There are several environmental factors like increased number of global competition, scarcity
of resources, social responsibility issues, rapid change in technology and quality and cost
challenges which influence the operational efficiency of the organization.
• Increased in number of large global competitors offering improved and innovative products
and services leads to shift in customer base and reduced sales and lower profit margins.
• Technology is changing at a faster pace and becomes obsolete rapidly.
• This leads to increase in cost to the company.

D2. Critical evaluation of operation management and factors that
influence wider business environment.
• Operation management formulate analyse monitor the operations of the organization
effectively and efficiently to attain long tern and short term goals and objectives of Amazon.
• Operation management helps in implementing strategies and evaluate whether organization is
working in stipulated framework to achieve higher performance and productivity.
• Effective operational management also helps in taking cost control measures to achieve
economies of scale and maximizing profit margins to gain competitive advantage.
• Operation management also helps in evaluating actual performance with the target of the
company and in case of any deviation take corrective actions accordingly.

CONTINUE
• In case technology becomes obsolete, competitors will gain advantage over it and leads to
lower market share and customer base for Amazon.
• Increase in number of global competitors leads to overutilization of resources and leads to shift
in customer base from one company to another.
• Ineffective distribution channels and supply chain leads to inefficient distribution of goods and
services to the targeted market which leads to increase in cost and unsatisfied customers.
• Managers and leaders of the organization should build strong supply chain with the help of
artificial intelligence and automation.