Essentials of Contemporary Management

Final Exam Project

Submitted to:
Prof. Dr. Rania El-Reedy
 
Submitted By:
Reham Samir
Alaa Sobhy
Rana Samir
 Introduction:

• [Link] is an American multinational technology company that focuses on e-commerce,

cloud computing, digital streaming, and artificial intelligence.
• It’s the most valuable brand in the world. Also, it one of the most influential economic forces
in the world. Furthermore, it’s one of the big five companies in the United States.
• The founder of Amazon is Jeff Bezos and he started this company from his home in
Washington on 1994.
• It began as an online marketplace for books but extended to sell electronics, software, video
games, furniture, food, toys, etc.
• Amazon is the largest Internet company by revenue in the world. It is the second-largest
private employer in the United States and one of the world's most valuable companies. As of
2020, Amazon has the highest global brand valuation.
  Vision:
• Vision statement: “To be Earth’s most customer-centric company, where customers can find and discover
anything they might want to buy online”.
• Customer-centric company: Based on the business culture cultivated by Amazon, the customer takes the
front seat in the order of importance.
• Global presence: As an e-commerce company, Amazon strives to have the largest influence on the market at
the global level. The strategic approaches of the company directly link to the progressive expansion efforts
Amazon considers a priority.

 Mission:
• Mission statement: We strive to offer our customers the lowest possible prices, the best available selection, and the utmost
convenience“
• The statement clearly outlines what the customers should expect from Amazon – services that go beyond meeting their needs. It
targets offering the customer the best offers on three shopping factors that include pricing, variety, and personal satisfaction. Based on
this, this statement has the following components: Affordable prices, Varied selection, and Top convenience.
 Hierarchy

Jeff Bezo’s
CEO

Brain Wei Gao Jeff Wilke Jay Carney Jeff Blackburna Beth Galetti Andy Jassy David David
olysavasky VP Technical CEO of SVP, SVP, business & SVP, Human CEO of Amazon Zapolsky Zapolsky
SVP & CFO Advisor to worldwide Corporate corporate Resources Web Services SVP & general SVP, Amazon
CEO consumer affairs development counsel devices, digital
management
-Dave Clark, SVP worldwide OPS -Adam Bisorth, VP, AWS New Products
-Dave Treadwell, VP, eCommerce -Alex Yung, VP, AWS Sales China
-Doug Herington, SVP, North America -Ariel Kelman, VP, AWS WW Marketing
Consumer. -Babak Parviz, VP, Grand Challenge
-Gur Kimchi, VP, Prime Air -Bing Gordon, Strategic Advisor
-Neil Lindsay, VP, WW Prime& Marketing -Charlie Bell, SVP Utility Computing Services
-Pat Bajari, VP & Chief Economist -Doug Yeum, Director, Technical Advisor,
-Russell Grandinetti, SVP International AWS
Consumer -Emmett Shear, CEO, Office of CEO
-Steven Kessel, SVP Physical Stores -James Hamilton, VP/Distinguished Engineer,
-Tony Hsieh, CEO, Zappos AWS
-Yunyan Wang, Technical Advisor, -Micheal Frazzini, VP, Game Services &
Consumer Studios
  Organizational Structure & Design

[Link] Function-Based Groups

[Link] Hierarchy
[Link] Divisions
 Inventory Management • Amazon plans to spend over $700 million to
Appath softwear: offer training to 100,000 workers made
• Reduce redundant inventory. global headlines.
• Low inventory turnover
• Inventory goals – right products in • free skills training to employees helping
the right quantity to the right place them further their careers in high-paying,
at the right time.
• Cost of holding > cost of outsourcing in-demand roles, such as cloud computing.
And support employees’ personal growth
and provide a workplace of respect and
dignity for all people. Additionally, it provide
Customer Service free cloud computing skills training to 29
million people around the world with
• Growth programs available to anyone.
• Cost
• Qualification • (MRA) Program: trains employees “on the
• Focus on the Customer skills and technical knowledge needed to
• Listen Continually and Intently
fulfill one of these technical maintenance
roles.”
• Amazon is insuring that each member of the company is motivated to highly perform and help them to achieve the company
goals.
• Amazon is following a healthy combination between need theory and learning theory.
• Amazon is hunting both intrinsic and extrinsic sources.
• Pay and motivation “Hope for money”.
 Effectiveness Essential Managerial Tasks Business Strategy Leadership

• Effectiveness is a • Amazon has one goal which is • Amazon’s generic • Amazon’s Leadership Principles are a
metric which to be Earth’s most customer- corporate strategy can be set of standards all Amazonians
aligns much more centric company by using four described as concentric aspire to every day; they are
clearly with the principles that guide the diversification. ingrained in our culture. Employees
goals of Amazon company: customer obsession • The Five key elements of love them because they clearly
as a company, and rather than competitor focus, the business strategy: explain the kinds of behaviors we
it is apparent that passion for invention, 1- Know Amazon value.
they value commitment to operational customers. • Customer Obsession; Leaders start
effectiveness over excellence, and long-term 2- Maximize Data. with the customer and work
efficiency. thinking. 3- Obsession with backward.
• Amazon performing four customer service. • Invent and Simplify; Leaders expect
essential managerial tasks 4- Innovation. and require innovation and invention
which are planning, 5- Create a from their teams and always find
organizing, leading and comprehensive CRM ways to simplify.
controlling. strategy.

Competitive Advantage

• Amazon’s strategy is driven by its sources of competitive advantage wherein it is focusing on technology,
actualizing the benefits of economies of scale, and leveraging the efficiencies from the synergies between
its external drivers and internal resources have been cornerstones of its business model.
 Amazon Managerial Skills Restructuring Stakeholders
• Jeff Bezos’ success at Amazon • In 2018, Amazon Inc. is cutting The main internal stakeholders of Amazon are the officers and
can be explained using Katz’s hundreds of jobs at its headquarters in directors, employees, and shareholders. Its top officers are the
Three Skills Model of Seattle, paring back older departments President, CEO, and the Chairman of the Board, senior vice
leadership. In Katz’s Three Skills focused on selling goods online while president, and the chief executive officers of Amazon web
Model, there are three basic hiring in newer lines of business-like services, and worldwide consumers. It also has several directors.
skills important in leadership cloud computing and its Alexa platform. Jeffrey P. Bezos is the President, CEO, and Chairman of the Board
which are technical skill, human The reductions are part of a broader of Directors (Amazon, 2020). Amazon has several external
skill, and conceptual skill. reorganization at the company, but stakeholders e.g. customers, online sellers, competitors, local
some see the moves as a shift toward communities, and the government. More than 197 million
General Environment
using more robots and computers for customers visit its website each month.
There are five segments of the
functions once performed by humans. Organizational culture
general environment which include
Political and legal, Economic, [Link] Inc. has an organizational culture that enables
Ethics
Demographic, Socio-cultural, and business capacity to respond to the demands of the e-
 Amazon encourages and enforces strict
Technological. The two important commerce market. A company’s organizational or corporate
adherence to local, state, federal, and
segments of the general culture sets the traditions and values that influence employees’
international laws through a series of
environment that might affect behaviors. For example, Amazon’s corporate culture pushes
guidelines within their Code of Ethics.
Amazon and the entire online employees to go beyond traditional limits and conventions to
They direct any employee who may be
shopping industry include the develop bright ideas and solutions. As the world’s top-
experiencing a conflict of interest to their
Economic and Socio-cultural. performing online retailer, the company continues to seek fresh
Legal Department and describe in general
Although there are also other talent. However, to maintain a capable workforce, Amazon must
terms some situations that would require
segments of the general reinforce its organizational culture to shape the development of
contacting such a department. Amazon
environment like Political that might human resources for long-term competitive advantage.
too affect Amazon, the impact of the promotes a safe and healthy workplace
Amazon’s organizational culture is seen as a critical factor in the
Economic and social factors ranks free of harassment and danger, promoting
success of the online retail business.
high than all the other segments of the freedom for employees to perform
the general environment. their duties unhindered.
Human Resources and Decentralization
• Control System & Information Technology
• Flexible work environment and job characteristics
 Business Strategy Formulation
[Link] strategy
[Link] Cost strategy
[Link] on Market Niche
Amazon ‘Army’ by a strategic alliance
Amazon made a strategic alliance with many manufacturers. Brita, Brother, [Link] and Whirlpool quickly entered into
partnership with Amazon to implement the technology into new household appliances under the Dash Replenishment
Service program. Amazon’s alliance have key factor for success. A strategic alliance should be based on complementary
relation. In global competition, even if one company has an innovative idea, it is really hard to succeed in market by
implementing the idea and spreading that solution alone. As we can see in Amazon’s strategic alliance, Amazon uses external
resources aligning with its value chain. In that, Amazon makes alliances with its suppliers. So, this alliance accords with
several goals of a strategic alliance.

• Entrance a new market and Expansion with a new business ecosystem

• Getting necessary skills and resources
• Shortening the product development time
In addition, Amazon’s strategic alliance is formed between Amazon and its suppliers. Because they are not competitors, In
this alliance, they enjoy a win-win situation
Finally, Amazon has many strategies to dominate the distribution market. Actually, these strategies are not standalone and all
the strategies have same strategic goal, which is breaking up the boundary between off-line and on-line market.
Amazon has completed its acquisition of e-commerce firm [Link], which opens new gates to enter the Middle Eastern
market. They integrated products and services between the two sites to their respective scale. Back to the Middle East,
[Link] deal gives Amazon a firm footing in a growing and competitive e-commerce space.
 PORTER’s COMPETITIVE FORCES MODEL

[Link] competitors
[Link] Market Entrants
[Link] Product and Service
[Link]
[Link]
• Strong brand name 
• Brand value
• Business model
• Cost Leadership  
• Losing Margins in Few Areas  
• Largest Merchandise Selection  
• Product Flops and Failures 
• High traffic
• Tax aviation
• Amazon has Go Global and Act Local strategy
• Limited brick-and-mortar presence
• Market Leader 
• Workplace conditions 
• Superior logistics and distribution systems 
• Declining consumer safety 
• Minimum pay raise to $15 per hour 
• Unsafe products  
• Customer oriented 
• Overdependence on distributors  
• Differentiation and Innovation
• Employees Strike 
• Amazon acquisition with [Link].

• Few debates 
• expand its operations in developing markets • Government regulations 
• Expanding physical stores • Links to exploitative labor 
• Improve technological measures and organizational • Aggressive competition 
policies  • Imitation 
• More acquisitions  • Economic Recession. 
• Entering the wholesale online market. • Fake reviews
• The integration with - customer satisfaction.
 Recommendations
• Consolidate the market dominance.
• Strategically deal with global controversies.
• features efficiently to diminish negative publicity in the market.
• Increase its limited presence through opening physical stores outside the U.S.
• Enhance its strategic entry in developing countries where many growth opportunities are available.
• Increase competitive edges and enlarge the gap between Amazon and its biggest competitors.
• Address the issues of counterfeit sales and cybercrimes by upgrading technology measures.
• Enhance network security systems for the protection of consumers’ rights.
• Raise tough controls on [Link] management in the Middle East, to seek customer satisfaction
everywhere their brand exists.