Overview of the Organization: Amazon Inc.

Organization Introduction

Amazon Inc. is a multinational technology firm based in the United States that primarily focuses on cloud computing, digital streaming, online advertising, e-commerce, and artificial intelligence (AI). The corporation has been identified as one of the global niche’s most influential cultural and economic forces (O’Reilly & Stevens, 2018). Furthermore, Amazon Inc. is one of the world’s most valuable and top brands, competing in the top brand niche with Walmart, Apple, and Alibaba, among others. Furthermore, Amazon has long been America’s leading information technology business, with Meta, Google, Apple, and Microsoft. Jeff Bezos launched the company in July 1994 as an online bookshop and gradually grew into offering a wide range of products, including Cloud Computing and AI. Aside from its primary operational business, which is headquartered in Seattle, the corporation has several subsidiaries, including Amazon Web Services, Zoox (autonomous vehicles), Amazon Lab 126, and Kuiper Systems (Satellite Services). If there is one thing that has to change in Amazon Inc., it is the strategic operation protocols throughout the company’s operations regarding marketing, supply chain, and demand. These features are worth modifying in light of the worldwide market’s evolution, which is currently seeing an influx of similar product-based enterprises (Popovi et al., 2017). As a worldwide firm, Amazon has a precise and integrated strategic plan that encompasses all parts of the company’s activities.

Organization Background and History

On July 5, 1994, an American entrepreneur named Jeff Bezos launched Amazon from his garage in Bellevue, Washington. Initially, it was an online bookstore, but it eventually expanded to include several items and services, an aspect that led to its slang appellation, ‘The Everything Store. The company was founded in response to what Jeff Bezos called a “regret minimization framework” to minimize regrets in his old age. It was due to failing to participate productively in the burgeoning internet back in the 1990s (Almsri et al., 2019). Cadabra Inc. was the company’s original name before Bezos changed it to Amazon Inc. In July 1995, the company launched an online bookseller that sold all types of books around the globe via the internet. By 1999, Amazon had dabbled in publishing by purchasing the defunct label “Weathervane” and published a few books. The corporation gradually transformed, and by 2011, it had over 30,000 full-time employees in the United States. As a result of the Covid 19 impact, the corporation has made several progressive initiatives. The corporation’s significant action was entering into a merger deal with MGM, a company based in the movie industry. This agreement would allow Amazon to add MGM movie libraries to the Amazon Prime Video Catalogue, a choice that appeared to have a substantial impact on the firm’s strategic operations and would propel the company toward a constructive and competitive operations strategy (Ritala, Golnam, & Wegmann, 2014).

Furthermore, the corporation implemented a strategic and technological advancement that enabled the detection of objects using cameras and sensors to determine the products selected by customers from the shelves and automatically deduct the money from the customers’ Amazon Accounts (Flamand, Wisher, & Riley, 2020). This design became known as Amazon Go. In investing in multiple upcoming enterprises, the company has been involved in several mergers and acquisitions.

Organization Vision, Mission, and Value Statements

Organizational Vision Statement

The current mission statement of Amazon reads, To be the world’s most customer-centric company, where people can search and discover anything they would wish to buy online (Noe & Weber, 2019). Despite the positive nature of the current vision, certain adjustments are required owing to forthcoming competitive developments in the worldwide market, which have affected consumer behaviour and attitudes of numerous organizations, including Amazon Inc. As a result, the company’s vision is to be a premier consumer-focused corporation with all customers’ interests at heart, ensuring consumers receive what they need online at consumer-friendly costs. The recommended vision statement includes two primary constructs that reflect the company’s goal and strategic vision. Consumer-centred operations, particularly in sales and marketing, and global presence, which is connected with the worldwide availability of all of the company’s products and services at accessible and reasonable prices, are the two (Sastry, Katvi, & Tourani, 2019). The company will benefit from a potential and strategic shift in consumer behaviour due to these changes.

Organizational Mission Statement

According to Amazon’s current goal statement, we try to give our customers the lowest possible prices, the best available choices, and the most convenience (Noe & Weber, 2019). According to this goal statement, there is a clear picture of what consumers should anticipate from Amazon Inc., including services that go above and beyond meeting their demands. However, I propose modifying the goal statement to include three essential criteria that consumers are always concerned about in the current competitive global economic landscape. The three are pricing, personal happiness, and variety (Tveritinov, n.d). As a result, the mission statement may change. We ensure our clients satisfy their tastes and preferences while spending the least amount of money feasible to increase utility regardless of expenditure levels. In this example, the mission statement guarantees consumers that their tastes and preferences will be satisfied at the lowest possible cost, with maximum utility being an achievable construct. With this goal statement, the company could marginally improve its brand image compared to its competitors in the current global market.

Organizational Value Statement

Based on the organization’s operations, an integral and prospective value statement that depicts high-level ethics and consumer-centric operations is required. According to the suggested value statement, at Amazon, ethics and accountability towards product and service delivery are first-rate; hence, customer focus, earning trust, the bias for action, and ownership are the core values of operation (Berryman, 2014). This value statement is created with a strategic and envisioned process that focuses on the company’s employees, stakeholders, and customers. The value statement provides an overview of the company’s strategic operations procedure and how concerned the company’s management is with maintaining ethics and responsibility regarding upholding consumer tastes and preferences (Diehl & Bishop, 2017). With this value statement in place, the organization will get a significant brand image and Reputation.

Organizational Reputation

An organization’s Reputation can considerably impact profits; it influences customers, investors, and employees (Keshta et al., 2020). Positive reputations attract customers, investors, and employees; an organization with a good reputation may need help to keep customers, investors, and staff, which might bankrupt a corporation. An organization’s Reputation might impact its innovation and adaptability; positive reputations attract top people and unique ideas, which can lead to new products, services, and business strategies (Marcinkowski et al., 2020). Third, an Organization’s Reputation might impact crisis management; companies with positive reputations can recover from crises, whereas those with negative reputations may struggle. Stakeholders are more likely to trust and believe an organization with a good reputation and give them the benefit of the doubt during a crisis.

Amazon’s organizational Reputation is among the best reputations ever, considering the level of satisfaction of both internal and external stakeholders. These two categories of stakeholders uphold and mirror the level of organizational Reputation owned by Amazon Inc.; internally, employees, directors, and all other internal stakeholders have demonstrated positive engagements with the board of the company. They have also always had a positive engagement providing a better reputation for the company (Mariconda, Zamparini, & Lurati, 2019). Recently, Amazon decided to enact a pay rise for its employees from 12 USD to 14 USD, demonstrating a better engagement and relationship with the internal stakeholders. In addition, the organization’s working environment is safe, secure, and sustainable, thus portraying a positive reputation for the company. Externally, consumers are the primary stakeholders affiliated with the company. The company has a consumer obsession that makes it configure all its operations to be consumer-centred (Benlahbib, 2020, October). Consumer reviews and issues are solved almost instantly in an attempt to engage with the consumers positively and critically.

Organizational Sustainability

Increasing awareness of the environmental impact of businesses is one of the primary factors contributing to the significance of organizational sustainability. Organizations are responsible for a substantial percentage of the world’s greenhouse gas emissions and waste, directly impacting the essential natural resources for life on earth (Keshta et al., 2020). Organizations may lower their environmental footprint and help lessen the effects of climate change by implementing sustainable practices. The economic benefits that organizational sustainability can give are another reason for its significance. Sustainable practices can assist businesses in reducing expenses, boosting efficiency, and enhancing their bottom line. Organizations can cut energy usage and waste by introducing energy-efficient systems and recycling programs (Abbas et al., 2020). These efforts can result in substantial cost reductions and help firms remain competitive in a fast-changing business environment.

Amazon has integrated sustainability into its fundamental business strategy; for this purpose, it has pledged to switch to 100 per cent renewable energy by 2030 and achieve net-zero carbon emissions by 2040 (Almeida et al., 2019). Amazon has also vowed to invest in reforestation and conservation initiatives, minimize packaging waste, and expand the usage of recyclable materials. Amazon invests in its supply chain infrastructure, automation, and artificial intelligence technologies to optimize its operations and lessen its environmental effect. Amazon continues to develop and improve its customer experience through technology, such as AI and machine learning and growing its product and service offerings to maintain this goal (Ives, Cossick, & Adams, 2019). Additionally, they prioritize cost-effectiveness and operational excellence to keep prices affordable for clients. Moreover, they have undertaken sustainability measures to become eco-friendlier and give back to the areas in which they operate.

SWOT Analysis

SWOT analysis is a commonly used tool in business that helps organizations identify their strengths, weaknesses, opportunities, and threats (Sarsby, 2016). By conducting a SWOT analysis, organizations can better understand their internal and external environment, which can inform strategic planning and decision-making. Additionally, SWOT analysis can help organizations identify areas where they excel and areas where they need to improve. It also helps organizations identify potential growth opportunities and threats to their business (Phadermrod, Crowder, & Wills, 2019). Overall, SWOT analysis is an essential tool for organizations to comprehensively understand their current situation, which can inform the development of effective strategies for achieving their goals.

Table 1

List of Strength, Weakness, Opportunity, and Threat Factors

Conclusion

Based on Amazon’s organizational structure, it is feasible to demonstrate several theoretical consequences related to a constructive and strategic organizational structure regarding operations strategies (Sastry, Katvi, & Tourani, 2019). These ramifications stem from the fact that Amazon is one of the world’s most successful online merchants. Amazon.com, Inc., as a multinational organization, has demonstrated from the beginning what it takes to be a global leader in the economic sector of the global economy. In addition, a series of recommendations can be made, based on the concept of the company’s organizational structure and the strategic, operational protocols, to facilitate the adjustment of positivity and distinction in the company’s operations to maintain its top position as a leading consumer-centred multinational corporation (Flamand, Wisher, & Riley, 2020). These suggestions can help the organization maintain its position as a leading consumer-focused international corporation.

References

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