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Transcript of Amazon
E-Commerce company based in Seattle
Amazon founded in 1994
Formalization - High
Specialization - High
Hierarchy of authority - Wide
Centralization - High
Professionalism - Low
Personnel Ratios - Direct labor
Size - 110,000 Employees
Organizational Technology - Advanced
Environment - Globally Competitive
Goals - Earth's most customer centric company
Culture - Customer Focused
8 Directors on Board of Directors
8 departments and each oversees a different department
Although Amazon is clearly a very successful company, they have encountered some major problems.
Amazon state sales tax evasion
Amazon problems continued
Low Profit Margin
Impact on Organization outcomes
Impact on Organization
Inadequate and Misfitting Elements of the organization
Lowering of Stock Prices after poor profit margin in annual reports
From March 21 to April 21 Amazon Stock dropped nearly $30.
Creates low moral on investors
Amazon Revenue was 78 billion in 2013 vs. 61 Billion in 2012
while profit was only 274 million giving profit margin being less then 1%
Amazon environmental issues.
Mistreatment of workers.
Amazon prime price hike.
Our Recommendations to Amazon
Outsourcing delivery to FedEx, UPS, USPS gives them less control over delivery
Christmas delays for last min deliveries
Reduces companies reliability in the eyes of consumers
reduces company good will
Changing tax laws
Weaknesses of Analyzer strategy
Lawsuits - Intellectual Property
Lack of Corporate Social Responsibility
Maintain Divisional Structure
Strive to improve working conditions
Enhance environmental image
Channel resources into the most profitable projects
Amazon owns these companies and more..