Analyzing Amazon using 7S Model

C OLL AP SE

The 7-S framework was first developed by two consultants, Tom Peters and Robert H.
Waterman who were working at McKinsey and Co in the late 1970’s. (Peters & Waterman,
1980). In the Chapter 8, Amason talks about how the 7s Model connects the strategy with
various levels of implementation. (Amason, 2011)According to the McKinsey website, the 7s
model is a watershed model that addresses the critical role of co-ordination rather than
structure in organizational effectiveness. (Enduring Ideas: The 7-S Framework, 2008)
The framework consists of 7 elements and are divided in to hard elements and soft elements.
The hard elements of the framework would be Strategy, Structure and Systems. The Soft
elements would be Style, Shared Values, Skills and Staff.
The company I choose to apply the &-S Model is Amazon.
Strategy: The strategy of the company is to be able to sell everything on the website.
Amazon has increased its customer base by building and maintaining robust websites. The
company does business in 14 countries and has a separate domain for every country. The
company adopts country specific strategies and implements them. A lot of Amazon’s success
is attributed to the company’s customer service which the company trains and maintains
efficiently. The company not only targets consumers but also sellers. Third party sellers are
encouraged to sell on the Amazon Marketplace. This increases the catalogue and choice of
products available to the customers. Amazon also boasts a great technological capabilities. Its
cloud services are a huge hit and also provide web service to customers.
Structure: Amazon is a well-structured company. Its hierarchy is a set of vertical lines with
the CEO- Jeff Bezos at the very top cascading authority and commands from top to bottom.
They have a series of levels denoting the person’s current position in the company. For
example an L7 would be a Site Head at any of the company’s site. An L1would be someone
who works at the warehouse. These hierarchies are maintained the same throughout
Amazon’s various Geographic locations throughout the world.
Systems: Amazon boasts of well-organized work place where both formal and informal
systems. All decisions are communicated from the top down via emails, verbally or in the
monthly magazine for employees. Amazon also has employee groups where employees with

(2011).forbes. Shared Values: One thing that everyone at Amazon talks about at Amazon is Customer Obsession. Jeff Bezos is an extremely customer oriented and result focused. All employees are given job roles according to their skill set. (Amazon. A.)The company’s vision is to become the earth’s most customer centric company. The employees have set job descriptions and responsibilities. This also drives a Customer First attitude at the workplace.. (2008). The 14 Leadership principles are used as a guiding light to make decisions or overcome hurdles at the work place. Amazon also holds workshops on various things which the employees are free to attend. thinking out of the box is encouraged and employees are free to take up additional projects. . (Murphy. Retrieved from Forbes: http://www. Amazon also has a set of 14 leadership principles to guide employees at all times. These employees are spread across all the Amazon sites across the world. He is a task-oriented and transactional leader and is also known as pragmatist style of leadership.com/companies/amazon/ Enduring Ideas: The 7-S Framework.000 employees. Amazon makes sure that communicating important decisions is a priority as they do not want to lose the trust of its employees. (2016. He sets very high goals for himself and expects all the employees to do the same. 2015) Staff: Amazon boasts of a workforce of 230. Strategic Management from Theory to Practice. Style: Amazon’s leadership follows the CEO. Jeff Bezos. The staff is well compensated and has a good leave policy. References Amason. Amazon. McKinsey Quarterly. Some of the major skills Amazon possesses as an organization is its innovative approach and readiness to adopt change. Employees are also given mandatory trainings. n. (Leadership Principles.similar interests can bond and discuss or do what the like. Top level managers are also very skilled and are great change motivators. May). 2016) Skill: Amazon’s one of the leadership principles is Hire the Best and keep them well trained.d. However. Though one might feel that the management style is democratic it is in fact autocratic and hierarchical. It is also one of the company’s Leadership Principles. C.

amazon.). In Search of Excellence. R. Retrieved from Amazon: https://www.jobs/principles Murphy. (1980). & Waterman. Would Your Leadership Style Fit At Amazon? Forbes. M. H. T. (2015).. (n. Peters. .Leadership Principles.d.