Please read the feedback I got about this paper, I need re-write this paper again and include this info. DO NOT USE A LOT OF SITATION.
You wrote about most of the key functional areas for Amazon which were good, but I was surprised that you didn’t cover distribution. Actually you did but it was under production. Drones, delivery vehicles (which some are owned and other are contracted). I like how you wrote about the Amazon fresh delivery service and you covered the building blocks. I didn’t see what your opinion was of core competency. Was it R&D or its hiring practices? I think your conclusions could have covered more of the issues for Amazon and I was looking for some detail and key examples when you said they should introduce more products. Nothing on glassdoor on what it is like to work there?
Please see my comments.
Here are some helpful places to read about.
https://www.beckershospitalreview.com/hospital-management-administration/9-key-issues-with-amazon-s-corporate-culture.html
https://www.theverge.com/interface/2020/4/1/21201162/amazon-delivery-delays-coronavirus-worker-strikes
https://fortune.com/2020/05/18/amazon-business-jeff-bezos-amzn-sales-revenue-coronavirus-pandemic/
Amazon Company Analysis
Primary Functional Areas
Raw Materials. Amazon is an online company aiming to ease business by providing cheaper and more accessible goods. They rely on products and services from various vendors as their raw materials. The company is the leading store for housewares, toys, electronics, movies, and kindle books (Onyusheva and Seenalasataporn 50). Besides, the firm uses its technology as an input to provide computing services. The business model ensures they have the best quality material at affordable prices for their international reputation.
Research and Development. The research and development (R&D) was a critical part of Amazon’s formation and has become part of its culture and business principles. The majority of the profits originate from high-tech departments, which are then reinvested in employees and business instead of dividends (Watanabe and Tou 2). Their belief in continuous improvements makes them the firm with the highest budget in R&D.
Amazon divides its R&D as either “technology” or “content.” The former aims at significant improvements for the establishment of innovative businesses such as Kindle, AWS, Amazon Go, and Alexa (Watanabe and Tou 2). Amazon made these progress through content development that absorbs external innovation materials and incorporates them into their business models. The considerable resource investments play a crucial role in establishing high-level assimilation capacity from the absorbed external business models.
The firm strategically organizes all improvement investments as collective customers’ incentives. Watanabe and Tou state that the executive ensures its business structure inspires simultaneous design, research, maintenance, and development of existing and new products. The target is maintaining a dynamic approach through its business chain, data, and architecture (2). This organization has provided the company with many external innovations that it converts to its concept. Provided the framework is functioning at its optimum; the business will keep improving and enhancing existing goods and services. Therefore, Amazon will remain to have a competitive advantage of superior innovation and customer service.
Production. As a service provider, Amazon ensures customers can get retail products through online orders. Some common goods include baby products, several media, consumer electronics, health and personal-care materials, and scientific and industrials supplies (Onyusheva and Seenalasataporn 50). Through its robust sourcing, Amazon leads in customer satisfaction by availing the best value for money. Another product includes the grocery store. Due to the perishable nature of these products, the service is currently limited to North America. Amazon also provides digital services such as Amazon Luna, Amazon Studios, and Amazon game studios (Onyusheva and Seenalasataporn 50). The business offers delivery services that replaced the traditional shipment and consequently reduced its products’ cost. As a tech company, it introduced electric cars, and it is planning on using drones as a mechanism to improve the delivery process. Nevertheless, Amazon has the most reliable and efficient global delivery service. Other services include Amazon’s drive for cloud storage, marketing arrangements, publishing, home services, and retail stores (Onyusheva and Seenalasataporn 50). R&D policy means that consumers should expect the introduction of new goods and services or improve the existing. This robust approach plays a critical role in the firm states as the most reliable and efficient goods and service online retailers.
Sales and Marketing. Amazon’s sales and marketing strategies are designed to produce the best customer experience. The company relies on four marketing pillars. First, it offers the widest product range. Inclusion of the third-party sellers relieves the business from the burden of guaranteeing everyone’s satisfaction (Onyusheva and Seenalasataporn 60). Second, the business has a customer-friendly interface. Through R & D, Amazon improves the interface by considering personalized recommendations and using internet traffic data to improve goods access (Onyusheva and Seenalasataporn 60). Third, the business continuously scales its operations. The cloud computing and e-commerce departments have competent and experienced staff who assist in scaling and improve navigation and exploration of different segments (Onyusheva and Seenalasataporn 60). Finally, Amazon exploits affiliate resources and products. This strategy is crucial in improving customer satisfaction and experience. The marketing strategy makes Amazon the best one-stop shop that avails any product to all global customers.
Customer Service. Amazon’s achievements are a combination of excellent goods and services combined with superior customer service. The company’s mission/vision have a portion that claims its goal is being a customer-centric company (Majed et al. 66). Moreover, the business established a listening culture to ensure the designs meet customers’ expectations. Every employee has to spend a portion of their time learning how to respond to clients. Besides listening, the user interface provides a self-help service that lets clients get instant replies. Amazon ensures they keep contacts with clients who tried to reach out and follow up to confirm if they were satisfied (Majed et al. 66). This kind of customer service created a personal relation, critical in fostering loyalty to the company.
Secondary Functional Area
Human Resource. Amazon Inc. has a human resource policy that aims at improving efficiency, capacity, and talent. The management organizes the staff into smaller groups that improve involvement and sensitivity (Gurchiek). Besides, the company culture encourages its members to surpass the ordinary work plan to provide solutions and innovation. They can achieve this plan by including staff training as a compulsory means to improve capability and personality. Education aids in ensuring every employee understands organization’s spirituality and cultures (Gurchiek). A detailed understanding of Amazon’s philosophy is crucial for improving performance, personality, and job satisfaction.
The effectiveness of the HR policy begins at the strict recruitment and selection process. Amazon utilizes a simplified and standardized recruitment process. Though the firm uses two compulsory recruitment standards that consider qualification and performance, they emphasize the employee’s long-term value. The hiring department is keen on a candidate’s leadership principles and views of the corporate culture (Gurchiek). The entire process is to ensure the company has a diverse team for long-term competitiveness and innovation. As a result, Amazon has employees from various backgrounds, which is critical in understanding different consumer needs.
Amazon acknowledges that employee recruitment and training is an expensive process. Therefore, they have a robust system for talent retention and encouragement of individual improvement. Besides salary and bonuses, the company offers paid leave, employee discount, adoption subsidy, and family support network (Gurchiek). However, they have limited offers for new employees, but those who stay for two years or more can access numerous benefits. The rewarding system not only assists in staff retention but also improves their commitment to organization’s objectives.
IT Strategy. Amazon’s success as an online retailer relies on investment in IT to improve customer experience and safety. Every client must create a personal profile to make any transaction, which is crucial in the 1-click purchase. Consumers are not required to fill any form as an individual, and product details are available. Since credit card information is part of the provided details, Amazon uses an encryption system that secures the data from third-party access (Onyusheva and Seenalasataporn 55). Besides the security measures, Amazon uses artificial intelligence to track previous purchase and search history to recommend similar products. This feature improves the browsing experience and reduces the time required to locate an item.
Amazon must manage inventory and improve supply chain management. The oracle’s use offers the company a huge database that automates the ordering process by finding the nearest distribution center for quick delivery (Onyusheva and Seenalasataporn 55). Besides, technology is essential in improving clients’ satisfaction and loyalty through a communication system that values customers’ interest, feedback, wish list, and product review. Moreover, the automated emailing system helps consumers track their orders in real-time.
Executive Management Strategy. Amazon is a huge company with a hierarchical organizational structure. According to Dudovskiy, the organization is headed by the CEO Jeff Bezos, who is assisted by three other CEOs and three vice-presidents. Nonetheless, the administrative structure depends on three vital features. First is the hierarchical corporate structure to handle its vast size. Amazon has more than half a million employees globally, and breaking down management into smaller groups is its strategy to increase efficiency (Dudovskiy). Second is business flexibility. This pillar ensures the company can comply with changes in the external market place without disruptions because of its size (Dudovskiy). The flexibility in leadership helped the company lead in online market changes, making it the most efficient industry. Using smaller teams, the company breaks down the business into subsections that can identify changes and facilitate transformation (Dudovskiy). Finally, Amazon has stable top management that reflects on its strength in the market and revenues.
Building Blocks and SWOT Analysis
Amazon Inc. will remain a top performer in the industry because of its ability to source for the best raw material, and ploughing back profits to improve customer satisfaction. Furthermore, the firm is resilient in providing the best service through its superior R&D strategy (Onyusheva and Seenalasataporn 59). Amazon has huge spending on R&D to maintain its reliability and improves its focus on customers’ satisfaction. That is why they provide various goods, use a customer-friendly interface, and exploit its affiliate to improve customers’ satisfaction (Onyusheva and Seenalasataporn 59). The company also has a caring customer service department courtesy of its training. Amazon ensures all concerns are accounted for as they are crucial in R&D.
Amazon’s outstanding performance also comes from its internal organization. The company has the best hiring and talent retention policy. Besides, the leadership provides a stable and flexible framework for creativity and innovation. Besides personnel, the IT facility is designed to improve customers’ experience and safety.
This analysis reveals several strengths that will make Amazon outshine other firms. The main strength exists in its R&D that allows it to identify opportunities. Hence, the company will always provide superior quality goods and services at the best prices (Onyusheva and Seenalasataporn 60). Moreover, its recruitment process is crucial in supporting its R&D agenda and understanding various markets. However, the company must ensure they have no product flop or tax compliance cases for they have a negative image.
Conclusion
Amazon’s success relies on leadership that invests in its customers and employees. Besides providing a wide range of products that meet customers’ expectations, the company understands its success depends on satisfied employees. Moreover, they have robust recruitment and training procedures that ensure they get the best talent and improve their capacity. This strategy is coupled with a R&D strategy that also improves facilities and introduces new ideas. Unlike most companies that spend their interests on dividends, Amazon uses its gains to reward production units and improve customer service. The company has an iconic philosophy that will ensure it always stands out. From the organization and business approach, the management can introduce more products into the online market. This opportunity is critical in improving the company’s value and accessing a wider market.
Works Cited
Dudovskiy, John. “Amazon Organizational Structure: A Brief Overview.” Research-Methodology, 24 Mar. 2020, research-methodology.net/amazon-organizational-structure-2-2/. Accessed 10 Oct. 2020.
Gurchiek, Kathy. “Amazon Commits to Investing Millions in Training.” SHRM, 16 Aug. 2019, www.shrm.org/resourcesandtools/hr-topics/organizational-and-employee-development/pages/amazon-commits-to-investing-millions-in-training.aspx. Accessed 10 Oct. 2020.
Majed, Sadq Zana et al. “Analyzing the Amazon Success Strategies.” Journal of Process Management. New Technologies, vol. 6, no. 4, 2018: 65-69. https://scindeks-clanci.ceon.rs/data/pdf/2334-735X/2018/2334-735X1804065M.pdf
Onyusheva, Irina, and Tanatthon Seenalasataporn. “Strategic Analysis of Global E-Commerce and Diversification Technology: The Case of Amazon. Com INC.” The EUrASEANs: Journal on Global Socio-economic Dynamics, vol. 1, no. 8, 2018: 48-63. https://euraseans.com/index.php/journal/article/view/81/77. Accessed 10 Oct. 2020.
Watanabe, Chihiro, and Yuji Tou. “Transformative Direction of R&D–lessons from Amazon’s Endeavor.” Technovation, 2019. pp. 1-5. http://pure.iiasa.ac.at/id/eprint/15955/1/TV_Editorial_2704_Final.pdf
This info should be on the paper.
So here is what you need to do.
Company overview is not necessary this time. You can leave it out.
List and describe the major functional areas of your company; Raw Materials, R&D, Production/Manufacturing, Distribution, Sales marketing/sales, customer service(Primary areas). Again for some of you, raw materials will be kind of short. As an example, Iphones use electronic parts, plastics, rubber etc etc. Can be sourced from many places. For production, some of you have internet companies, so you are providing a service or offering. That service has to be created by either programmers or solution experts. R&D may be doing more analysis of how to bring the components of a service offering together. You must include all the primary functional areas.
Don’t forget the support or secondary functional areas areas as well. HR, IT, Exec Mgmt. Legal, Procurement Finance, Accounting etc. You don’t have to include all but the ones I just mentioned are the more important ones to choose from. As an example, don’t leave out legal if there are recent (less than 1.5 year) lawsuits that are still pending.
For each functional area please give a description of the major processes that occur in each keeping in mind the 4 building blocks of competitive advantage where they may apply, Superior efficiency, superior quality, superior customer service, and superior innovation, and or strengths and weaknesses.
For building blocks not all 4 will apply in each category. The goal here is to use these building blocks, and key tangible/intangible resources as tools to flush out issues relating to;
The creation of value either as a differentiator or low cost provider
Now you don’t have to list building blocks in each functional area in your paper unless it really applies. Don’t force fit anything and please explain why the building block applies. Again, you want to use these items as tools to flush out potential issues. For organization purposes, you may want to use the building blocks or the SWOT as a summary after the functional areas and before you get to the conclusions.
Strengths and Weaknesses can be applied to internal more easily than Opportunities and Threats which are used to describe external factors. But I am ok if you use all four.
At the end of the paper, please include in your conclusions a summary of what you feel is the Distinctive Competency of the company, and what are the potential issues. Opinions as to why the issues are important is always good. You may want to read through your external paper to point you to issues that may be related to and give light to issues in the functional areas. Please no recommendations yet in the internal analysis paper. List your references
Hint: start practicing with doing searches on the internet for functional areas within your company. (ex. Hershey and exec management issues), or (key raw materials for Hershey chocolate). You may also want to refer to the company annual report. Take a look at Glassdoor for HR info and what it is like to work at the company. Please list your key references.
You wrote about most of the key functional areas for Amazon which were good, but I was surprised that you didn’t cover distribution. Actually you did but it was under production. Drones, delivery vehicles (which some are owned and other are contracted). I like how you wrote about the Amazon fresh delivery service and you covered the building blocks. I didn’t see what your opinion was of core competency. Was it R&D or its hiring practices? I think your conclusions could have covered more of the issues for Amazon and I am looking for some detail and key examples about introduce more products. Nothing on glassdoor on what it is like to work there?
Please see my comments.
Here are some helpful places to read about.
https://www.beckershospitalreview.com/hospital-management-administration/9-key-issues-with-amazon-s-corporate-culture.html
https://www.theverge.com/interface/2020/4/1/21201162/amazon-delivery-delays-coronavirus-worker-strikes
https://fortune.com/2020/05/18/amazon-business-jeff-bezos-amzn-sales-revenue-coronavirus-pandemic/
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