Amazon.com, which began as an online bookstore, is a global corporation whose primary business activities are online retailing, cloud computing, digital streaming, and artificial intelligence (A.I.). In the online retail and web hosting world, Amazon is a household name. Amazon now competes with successful companies like Alibaba for retail, Netflix for streaming, and Microsoft for web services. The success of Amazon Company is attributed to the effective organizational structures in place, workplace policies, and its CEO, to mention a few. Andrew Jassy, a successful 55-year-old American businessman, heads amazon. Jassy became well-known for his work leading Amazon Web Services, a significant source of income for the company (AWS). The latter department he helped found and led to success was his proving ground for promotion to higher office. It is important to note that a company’s market capitalization can be defined as its current stock price multiplied by its total number of outstanding shares. As of February 24th, 2023, Amazon has a net worth of $958.12B (Macro trends, 2023). This essay gives an overview of the Amazon Company.
Amazon Company Description
Goals
Amazon is an example of a non-statutory company meaning that it is governed by common law. Essentially, Organizations and institutions that aren’t mandated by statute are called non-statutory bodies. This means that neither their existence nor their powers are defined by law. The private nature of their services means they are often used for social care, trade, or education. Amazon’s primary objective is to expand rapidly by establishing itself as the most customer-centric business on the planet (Flamand et al., 2022). Amazon has adopted generic and interactive strategies to achieve this goal, focusing on providing customers with the greatest possible convenience. At the same time, the latter ensures that they have access to the widest possible range of products and services at the best possible price. Amazon has other goals, including dedication to the customer over the competition, focus on operational excellence, and a dedication to innovation, to mention a few. Also, it is important to note that Amazon’s business model is predicated on a single principle attributed to providing an exceptional shopping experience for all its clients.
Stakeholders
A company’s stakeholders are those who have a vested interest in the company’s success. Since Amazon operates globally, its constituents’ priorities are diverse. This circumstance necessitates an inclusive approach to the company’s CSR strategy, policies, and programs. Amazon’s continued success as the industry leader depends on the company’s ability to meet the needs of its various stakeholder groups. Amazon’s chief directors, officers, employees, and shareholders are the company’s primary internal stakeholders. Amazon’s most influential stakeholders are its stockholders (Li, 2023). They have considerable sway over their operations. Some of Amazon’s major shareholders include founder Jeff Bezos, investment firm Vanguard, MacKenzie Bezos (Jeff’s ex-wife), and BlackRock Institutional Trust Company, to mention a few. This shows that Jeff Bezos, the company’s founder and owner of a large percentage of its shares, continues to exert significant influence over Amazon.
On the other hand, customers and communities are also external stakeholders in Amazon. According to Amazon’s CSR report, the company’s customers are the company’s most valuable stakeholder group. Since customers have such a large impact on the company’s bottom line, they are the company’s top priority when determining the success of its online store. These stakeholders care about things like reasonable prices, easy access to support, and risk-free digital transactions with the company’s website. Amazon’s focus on service and technology allows it to cater to all these needs. In addition, Amazon is committed to improving local communities through its CSR initiatives. These stakeholders matter greatly because they shape how customers view the company’s offerings. Aiding in the community’s development is in their best interest. Amazon Smile, the company’s primary community support initiative, is where most of the company’s efforts are directed toward addressing these concerns about communities.
Organization Structure
The structure of Amazon’s organization can be described as hierarchical. A company’s management structure is hierarchical if it has a clear line of authority from upper-level executives to lower-level workers. In addition to facilitating effective decision-making, this structure for allocating power also ensures that all tiers of management are aware of and comfortable with their interdependencies. Andy Jassy, the company’s CEO, is directly responsible to his senior management team, which consists of three other CEOs and three senior vice presidents (Dudovskiy, 2022). Essentially, Amazon’s workforce is structured with 12 tiers of management.
In contrast to traditional business functions such as marketing, product management, and engineering, Amazon is structured around teams responsible for specific products and businesses. Most of Amazon’s top executives are capable senior executives rather than specialists in a particular field. Larger businesses and organizations like Amazon often have a hierarchical structure. The hierarchical structure leadership theory requires a hierarchical structure within the organization, with multiple tiers of management connected by a clear chain of command. Most decisions are made formally and communicated from top to bottom.
Values and ethical practice at Amazon
The Amazon Company operates on the values like customer obsession, ownership, and invention, among many other values. The customer obsession value entails leaders putting the customer first and working backward. They put forth considerable effort to gain and maintain customer satisfaction. Leaders are aware of the marketplace and pay attention to competitors but are primarily concerned with satisfying their clientele. Customer obsession in business means always putting the customer’s needs first (Wirtz, 2020). It implies that customer needs are the primary focus of the company’s efforts. Every aspect of the customer’s journey, from product creation to service, is centered on satisfying these requirements.
Regarding ownership value, all employees at Amazon are expected to think of the company as their own, not just the tasks their team has been given. Employees should consider the ramifications of their actions on the business and work to produce lasting value rather than just temporary results. Thus, when faced with a challenge, employees are needed to make decisions geared towards promoting the company’s productivity. All of Amazon’s workers recognize the importance of constantly being innovative ( Amazon, n.d). The latter value entails people who are open to trying new things, who can share ideas, and who can find inspiration anywhere. It is also important that the employees understand that innovation should be developed and communicated to make it easy to implement. Personnel in Amazon are encouraged to commit and make their dreams a reality, even if the goal seems unreachable or the path seems unusual because a simple yet powerful idea will always win out over a convoluted plan. Amazon employs various strategies, ideas, and resources that span organizational culture, operational processes, and technological infrastructure to foster innovation. Amazon’s innovative culture is founded on a commitment to its customers.
Ethical Practices present in Amazon are data privacy, workplace diversity, and transparency. Being an E-commerce business Amazon collects various customer data. Depending on the company’s department, this could simply be an email address or include sensitive information like a physical address, medical records, or bank account numbers. There is a common promise made by businesses that gather customer information to keep it private and not distribute it to third parties without express consent. Amazon takes the data privacy ethical principle seriously and does not share its customer’s data with other parties unless when it is with consent (Andreotta, 2022). An organization’s commitment to diversity in the workplace may be seen as a demonstration of its commitment to fairness. A workforce representative of the communities it serves requires inclusive hiring practices. Just like any other business, Amazon promotes workplace diversity to advocate for equal opportunities in the workplace and speak against workplace discrimination.
Moreover, Amazon works on the ethical transparency principle when providing its services and throughout the decision-making process. Everyone takes part in Amazon’s decision-making process regardless of their status. Also, transparency-enabled products cannot be sold or shipped on Amazon without a valid UPC or ASIN, which must be provided. Everything from the listing to the delivery can be tracked and verified for authenticity and accuracy. The return policy is also transparent in Amazon, contributing to high productivity.
Public Policies and Legislation
There are various public policies and legislative measures in Amazon. For example, unequal treatment of the black community is unacceptable. The organization is dedicated to working toward a world where all people are treated with respect and safety and stands in solidarity with their African –American employees, clients, and partners. Amazon backs measures to improve health and education for Black people, protect and expand voting rights, and end police misconduct and bias (Amazon, n.d). Also, the organization in discussion is a staunch advocate for immigrant rights and immigration reform. According to Amazon, America should actively seek out and hire the most talented people worldwide because it’s crucial for American international standing. Any country’s corporate tax code ought to incentivize investment in the economy and the creation of new jobs, according to Amazon. It is also important for countries to coordinate their tax codes so that there are no gaps that result in higher tax rates or double taxation and no loopholes that allow for artificially lower tax rates. All employees in Amazon should follow the set laws, policies, and legislations, both federal, state, and organizational. Workers must always comply with all relevant legislation, policies, and procedures at Amazon. If an employee has a question about the scope or meaning of a particular law, rule, or regulation, they should consult the Legal Department.
Development of Technology in Amazon
From cloud computing and e-readers to online grocery shopping, video streaming, and gaming, Amazon has been a frontrunner in many technological areas throughout the 21st century. Amazon takes pride in its advanced technology, which has contributed greatly to its success. However, it is important to note that technological advancement has developed over time, facing various setbacks. For example, the announcement of Amazon’s new Dash Button automation in late March 2015 was met with widespread skepticism and even amusement. Many believed it to be an April fool’s Day prank. The company felt compelled to issue a statement confirming the authenticity of the gadget. The original Dash Button was about the size of a pack of gum and had a single function that allowed Amazon Prime members to control various smart home devices (Dash et al., 2021). Each button represented a specific brand of an item commonly found in most homes. The user presses the Dash Button to restock toilet paper or razor blades. Also, Officially, Amazon is considering a system of underground tunnels to deliver goods. They’ve just filed a patent for a system that uses vacuum tubes and conveyor belts to ship packages and containers. The patent claims this delivery system would reduce road congestion, increase productivity, and improve reliability. In addition, Amazon has unveiled Sparrow, a new intelligent robotic system that it claims speeds up the fulfillment process by transporting individual products before packaging.
Regarding Amazon’s warehouses, Sparrow is the first robot to find, pick, and move individual items (Liu, 2023). Prime Air, which is still in development, has the potential to be a game-changer by allowing customers to have their orders delivered by drones in 30 minutes or less. After users purchase, flying robots will immediately bring them their goods. Amazon is working hard to use technology to improve its services which is efficient as technology is the leading promoter of productivity in contemporary society.
Social Structures and Organizational Arrangements.
The corporate structure of Amazon allows for effective management of its international operations. The organizational structure of an online retailer defines the framework and network of relationships among its employees, operational procedures, and other assets. In Amazon’s case, for instance, the company’s organizational structure dictates how managers oversee daily operations in areas like I.T. research and marketing. The company’s well-established structure allows it to expand into new markets and oversee Whole Foods Market, one of its many subsidiaries. In addition, the company’s organizational structure is constantly changing to accommodate the business’s expanding range of offerings. The corporate framework is built around a business structure compatible with the technological underpinnings of the company’s online service operations. The hierarchical structure and emphasis on functional groups help Amazon’s upper management get their ideas out quickly and efficiently (Delfanti, 2021). The organizational structure provides a framework or employees to follow when faced with a problem which makes solving the problem easy as one is aware of which department to consult when faced with a specific problem. In addition, the organizational structure promotes safer working environments where sharing of ideas is paramount. The clarity of a well-defined organizational structure benefits workers at all levels. Departments can run more smoothly and devote more resources to meaningful work if their organizational structure is properly thought out. The latter enhances economic development among employees, which improves their living standards.
Amazon Smile is a social network platform that Amazon uses to promote community development. Through Amazon Smile, customers can quickly and at no additional cost donate a portion of their Amazon purchases to a charity of their choice with every purchase they make. Amazon smile can be accessed through the web browser at smile.amazon.com or enabled in the Amazon Shopping app for Android and iOS phones and tablets. Essentially, Amazon Smile is a website operated by Amazon that offers the same selection, low prices, and a simple checkout process as Amazon.com with the bonus of a donation of 0.5% of the price of your eligible purchases to the charity of your choice (Amazon, 2023). Amazon Smile can be regarded as a contemporary social structure because it is geared toward helping the less fortunate in the community. Through Amazon Smile, people interact through charity events, making Amazon employees interact with the community by learning about their needs and wants. Through the latter platform, harmonious working environments influence economic productivity among employees.
In conclusion, Amazon is a successful company word wide that other small businesses can learn from. The company’s leadership style, working policies, and innovation have contributed significantly to its success. Amazon was the pioneer in taking on the challenge of incorporating cutting-edge technologies into its operations to boost retail efficiency. The company took the risk of experimenting with A.I., which has helped it improve its order processing and hiring practices, and using drones and robots to fulfill customer orders. The hierarchical organizational structure makes sharing ideas and making decisions easy as every employee knows their function. The organization’s ownership, customer obsession, and innovation values have helped increase its productivity. Amazon takes pride in acknowledging its ethical principles such as data privacy, advocating for diverse working place, and transparency. Amazon promotes public policies and legislation geared toward equal rights for all people. It is important to note that many underprivileged individuals have received donations through Amazon Smile.
References
Amazon (2023), Amazon closing Amazon Smile to focus its philanthropic giving to programs with greater impact https://www.aboutamazon.com/news/company-news/amazon-closing-amazonsmile-to-focus-its-philanthropic-giving-to-programs-with-greater-impact
Amazon (n.d), Our Positionshttps://www.aboutamazon.com/about-us/our-positions
Andreotta, A.J., Kirkham, N. and Rizzi, M., 2022. AI, big data, and the future of consent. Ai & Society, 37(4), pp.1715-1728.
Dash, A., Chakraborty, A., Ghosh, S., Mukherjee, A., & Gummadi, K.P. (2021, March). When the umpire is also a player: Bias in private label product recommendations on e-commerce marketplaces. In Proceedings of the 2021 ACM Conference on Fairness, Accountability, and Transparency (pp. 873–884).
Delfanti, A., (2021). Machinic dispossession and augmented despotism: Digital work in an Amazon warehouse. New Media & Society, 23(1), pp.39-55.
Flamand, O.J., Wisher, A. & Riley, S. (2020). Strategic Plan: Amazon.
John Dudovskiy (2022). Amazon Organizational Structure: a brief overview Business Research Methodology https://research-methodology.net/amazon-organizational-structure-2-2/
Li, W., (2023). Critical Analysis of Sustainable Development Goal 13 Climate Action: A Case Study of Amazon. The Frontiers of Society, Science, and Technology, 5(1).
Liu, L.C.L., (2023). Whither Technology and Work: Theory, Warehouse Study, Job Quality and Discourses in the Sociology of Automation (Doctoral dissertation, Princeton University).
Macro trends ( 2023) Amazon Market Cap 2010-2022 | AMZNhttps://www.macrotrends.net/stocks/charts/AMZN/amazon/market-cap
Wirtz, J. (2020). Organizational ambidexterity: cost-effective service excellence, service robots, and artificial intelligence. Organizational Dynamics, 49(3), 1–9.
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