You are on page 1of 26

EFFECTUAL IMPLICATION OF

TOTAL QUALITY MANAGEMENT


WITHIN AMAZON.COM INC.

Author: Sadia Rahat

Dated: 15 t h December, 2015


TABLE OF CONTENTS

1.1 INTRODUCTION ................................................................................................... 3

1.2 FUNDAMENTALS OF TOTAL QUALITY MANAGEMENT (TQM) ........................ 4

1.3 CASE STUDY: APPLICATION OF TOTAL QUALITY MANAGEMENT (TQM)


WITHIN AMAZON.COM INC. .......................................................................................... 8

1.3.1 TOTAL QUALITY MANAGEMENT (TQM) WITHIN AMAZON.COM


SUPPLY CHAIN........................................................................................................... 9

1.3.2 VALUE PROPOSITION ................................................................................ 10

1.3.3 DROP SHIPMENT MODEL .......................................................................... 10

1.3.4 STRATEGICALLY MANAGING SUPPLY CHAIN ......................................... 11

1.4 STRENGTHS, WEAKNESSES, OPPORTUNITIES AND


THREATS (SWOT) ANALYSIS ..................................................................................... 12

1.5 FACTS AND FIGURES ....................................................................................... 15

1.6 CRITICAL ANALYSIS OF TOTAL QUALITY MANAGEMENT (TQM)


WITHIN AMAZON.COM ................................................................................................ 17

1.7 LESSONS LEARNED.......................................................................................... 18

1.8 APPLICATION OF TQM AT GLOBAL SCALE .................................................... 19

1.9 CONCLUSION .................................................................................................... 20


Effectual Implication of Total Quality Management
1.10 BIBLIOGRAPHY .................................................................................................. 20 Within Amazon.Com Inc.

2
1.1 INTRODUCTION

Today’s marketing world have been advanced up to the production skies thru constantly
consuming lots of technological and management tools. Business with least risking errors
and maximum production goals used to be considered as the most productive one in
twenty-first century global markets. Here, each day is a new day of potential business
transactions in an exclusively build competitive race so as to grab maximum commercial
share. The technological advances also upgrade the concerned production race thru
novel commercial practices with integrated smart innovative ideas (Narendula 2012). The
justified channeling of this much business advancement is the core economic
understanding that enables even a laymen to produce maximum good with enough
marketing share, constructively. On the other hand, lack of understanding with such
business fundamentals proved to be a marketing disaster as well. International business
investors needed to comply all of the concerned business goals so as to produce,
compete, survive and succeed in such congested economic markets.

Business personnel’s tried to achieve the status of being independently unique and
innovatively productive in concerned economic competitive markets. In this regard they
produce some fundamental business practices to achieve this advance status. So, the
term ‘Quality Management’ coined in this context as quality management is itself a
productive parameter that enhanced not only the production compliance but also the
customer compliance (Soediono 1989a). Different scholars describe this term on different
explanatory spectrum but most of them are agreed on the inclusion of cooperative
business operations, error free commercial goods and customer satisfactory economic
status (Gold 2015). Later on, the term’s subjective grade improved from quality Effectual Implication of Total Quality Management
management to simple total quality management encompassing wide spectrum of
business management fundamentals such as goods successive transportation, demand
and potential forecasting, customer service, inventory and respective innovative
measures, goods and product distribution, commercial procurement, strategic operational
planning, risk free production, barriers free business communication etc.
Within Amazon.Com Inc.

The process of implicative business total quality management rolled under the umbrella
of thoughtful managerial operations thru bunch of quality humanoid services in terms of
performance status up gradation (PR 2015). The relational aspect of this productive

3
phenomenon approach is the cooperative integration of humanoid services with
applicative economic production. Additionally, there are some administrative guidelines
that used to improve individual compliance within the concerned business sector
(Soediono 1989b). If the individual capacity building didn’t involve in this commercial
advancements, the core task of total quality management became difficult and even
impossible to achieve.

Back in early days, the term quality management used for the justified understanding of
military based commercial orders for respective goods and services. In this way, quality
management was to improve the forces performance status with productive yield of
required military goods (Yang et al. 2015). However, the todays descriptive mean of this
term expand its explanatory wings from simple quality management to highly assimilated
total quality management logistics. Thru this physical up gradation not only the
administrative goals possessed to have a more successive potential but, also the
personal goals for the contracted task fulfillments (Kousha & Thelwall 2011). Usually the
production status of a business net operations statistically calculated after a certain time
period like monthly, quarterly, biannually, annually basis etc. So, to measure these
respective performance status, company’s tried to play thoughtfully with advance
managerial moves and technological innovative productions simultaneously.

1.2 FUNDAMENTALS OF TOTAL QUALITY MANAGEMENT (TQM)

As we have already discuss that the business performance status used to be upgraded
through appropriate total quality management implication within concerned business
sector (Topalović 2015). These quality management programs consist over a range of
Effectual Implication of Total Quality Management
certain phenomenon parameters. Such contributory fundamentals that needed to be
concerned substantially before introducing an appropriately fashioned constructive total
quality management in an organization so to be maximize business net profit share
(Cetindere et al. 2015). Some of these important parameter along with their respective
economic status are tabulated below:
Within Amazon.Com Inc.

Table 1.2.1- Fundamentals of Total Quality Management (TQM) and Their Respective
Economic Status

4
Fundamentals of Total Quality Management (TQM)
and Their Respective Economic Status
TQM Status
Fundamentals
Demand And This process basically range over the spectrum of business
Forecasting predictive demand for future products and respective contacted
items (Ritala et al. 2014). The demand and corresponding product
contract forecasting basically drive out from the current and past
business events. The past event dictate the need of future trendy
demands that helps managerial sector in fabricating their
marketing strategic layout.
Inventory Business inventory is another important production sector where
the assurance of quality is the major concern for the progression
of maximized production yield (Srima et al. 2015). Business
inventory is basically consider as the net share of overall business
profit from the current marketing assets that needed to be valued
and counted precisely so as to determine net yield production.
Most of the business inventories used to be account on daily
business benefit with precise loss count as well (Ahmad et al.
2014). That is why, business inventories and its respective
instruments considered as one of the basic total quality
management fundamental.
Transport The description of this phenomenon process is the successive
transportation of product from its raw form to the complete product Effectual Implication of Total Quality Management
form, from manufacturing factory to the ultimate retailer or
customer, respectively. Transportation also fluctuate over the
dynamic field of transporting mediums such as air, water, road,
railways etc. (Benavides-Velasco et al. 2014). Total quality
management assures the cost of such transportation should
Within Amazon.Com Inc.

remain on its minimum however the product quality status that is


being transported should be maximum.

5
Customer Customer care services are the absolute total quality management
Service sector that build up for the assurance of respective business
compliance. This helps company for the successive acquisition of
their potential customer trust and confidence.
Distribution Distribution is the prime fundamental of total quality management
process as it relates the constructive distribution of marketing
products among its potential buyer markets (Hertig & Davies
2008). The channeling of product distribution started from its
manufacturing origin and finally ended up over the lap of customer
satisfaction.
Procurement Procurement is a vast field of total quality management as it range
over the spectrum of business process and economic transaction
(Izvercian et al. 2014). The process basically covers the
purchasing of business goods thru major commercial transaction
in order to assimilate them in business potential assets and used
them constructively, afterwards.
Strategic A thoughtfully designed business strategy lead the company
Planning toward constant progression (F.F. & Pitard 2009). That is why
scholars focused on the mandatory processing of business
strategic planning so as to assure marketing development
proactively.
Risk Strategic business planning along with business risk assessment
are two major planning tools of total quality management (Militaru
et al. 2013). The business risks revolves under the umbrella of Effectual Implication of Total Quality Management
potential profit and loss that substantially impact the business
productive outcomes (Dahil & Karabulut 2013). So the scholars
and other business experts suggested to have a thorough
business risk assessment analysis so as to extract probable risks
proactively and management them efficiently.
Within Amazon.Com Inc.

(Keblis et al. 2014)


All of the above discussed total quality management fundamentals are significantly
important for the productive maximization of business manufacturing yields. There is

6
another economic term the Total Productive Maintenance (TPM) that found very much
important in this regard (Kahreh et al. 2014). But, the integration of total quality
management along with its widespread integrated fundamentals are of highly significant
in the context of its effectual productive outcomes. Total quality management provide
companies their way in to the competitive global leads with high profile TMP. The
potentialities of this process also debated within quality management literature as a
comparative production analysis (Martel 2015). Each debated fundamental has had
concluded with substantial standing values as all effected the business performance
status at any production level. Workforce capacity building, administrative and managerial
leadership training, customer satisfaction, confidence building and trust compliance are
some of the major management fruits that should be assured by the concerned total
quality management. In this paper, we have studied the Amazon.com Inc. productive
quality management supply chain tactics. So, the company’s focused on its net
employee’s count in terms of their net productivity with respect to the progressing number
of customers count (Suwandej 2015). As Amazon’s business network have had been
spread over the inter-continental boundaries, so its employees count along with its
customers count has also been increased. The number of Amazon’s employees
increased from 2007 to 2014 has also been tabulated below:

Table: 1.3.2- Amazon.Com Inc. Potential employees count from 2007 to 2014

AMAZON.COM INC. POTENTIAL


EMPLOYEES COUNT FROM 2007 TO 2014
Year Employees
Count
Effectual Implication of Total Quality Management
2007 17,000
2008 20,700
2009 24,300
2010 33,700
2011 56,200
Within Amazon.Com Inc.

2012 88,400
2013 117,300
2014 154,100

7
(Statista 2015)

1.3 CASE STUDY: APPLICATION OF TOTAL QUALITY

MANAGEMENT (TQM) WITHIN AMAZON.COM INC.

Amazon.com Inc. was founded in 1995 by Mr. Jeff Bezos. It was one of the first e-
commencing website that not only started business online but also run it successfully.
There were lots of acquisitions occurred over the years but, the appearing activities of
this online e-shopping website is absolutely remarkable (Ding 2015). Washington, USA
considered to be its founding house where it was started its e-commerce for books
transactions, particularly. Amazon.com Inc., was initially started with online books
transactions but, as they get their foots established in e-commerce markets, they spread
their wings onto other domestic goods including furniture, DVDs, toys, CDs, video
players, jewelry household appliances etc. (Amazon 2015). According to one estimate,
amazon currently enjoys to have more than one-lac fifty-four thousand one-hundred
business employees. They active customers count also figured more than one hundred
and fifty-two millions with about more than forty-eight million annual revenue generation.
Its revenue generation rate recorded to be higher than world most renowned website
‘google.com’. Additionally, the concerned website rank over sixteenth, on the account of
global network trafficking (Amazon 1995). Amazon shipping spectrum also ranged over
the spatial boundaries of about two-hundred international countries. However, their main
branches along with package preparing centers spread within six main countries.
Amazon have a separate, independent website for particular countries enlisted below:

I. United Kingdom VII. Spain Effectual Implication of Total Quality Management


II. Canada VIII. China
III. France IX. Brazil
IV. Unites States X. Japan
V. Italy XI. India
VI. Germany
Within Amazon.Com Inc.

8
Amazon.com Inc. covered a long progressing journey from the date it was established
to still the current business day. Their spectacular success is specifically regarded
with its strong strategic moves (Amazon.com 2015). They followed the keys of quality
management so as to assure product quality, transparent transaction and
performance status as well. Its total active customers count range from one-lac
eighty-thousand to about fifteen lac one thousand transacting customers. The
company used to make thousands of productive deals on annual basis. A proportional
enhancement share of Amazon.com customer count was about 738% (Amazon
2014a). Similarly, the company enjoys a relatively higher status of continues
customers range from 46% - 58% from 1996 to 1997.

1.3.1 TOTAL QUALITY MANAGEMENT (TQM) WITHIN AMAZON.COM

SUPPLY CHAIN

The implication of total quality management within Amazon business processing is


the prime success factor of company. The Amazon annual report- 2014 showed their
concerns for quality management practices (Amazon.com 2014b). The competitive
business strategy opted by Amazon.com Inc., is the total quality management along
with its effectual working factors that are enlisted below:

I. Thoughtfully fabricated Strategic policies and respective business moves


II. Quality assured successive product Distribution and respective product
channeling (Amazon 2014b)
III. Procurement and innovative transacting acquisitions
IV. Business risk assessment Effectual Implication of Total Quality Management

V. Speedy product transportation


VI. Quality maintenance and respective reliability assurance
VII. Satisfactory customer care services
VIII. Accurate determination of product projective demands
IX. Contract forecasting within Amazon.com processing spectrum
Management of Amazon.com worldwide inventories
Within Amazon.Com Inc.

X.

XI. Proactive risk management and thoughtfully fashioned risk minimization tactics

9
All of these above mentioned factors have their own contributive effectual outcomes.
Amazon.com like to manage their inventories so as to assure maximum
manufacturing yields. Fulfillment by Amazon (FBA) is their marketing inventory as
they manage quality status at this inventory for their potential marketing sellers
(Amazon Web Services 1995). So, lots of international sellers used this inventory for
their product substantial transactions.

1.3.2 VALUE PROPOSITION

The amazon.com strategically aligned its value proposition into four major podiums
that are enlisted below:

I. Purchasing and time convenience


II. Variety to select with best specifications
III. Price suitability
IV. Customer friendly services

The four major value propositions made the company’s quality managing ventures
appropriately ensure. The significant quality management within twenty-four hours
online business is something very much difficult to accomplish. The e-books site also
made logically upgraded so to provide readers twenty-four hours uploading and
respective downloading facilities. Product recommendation, upgraded reviews,
contact service facilities etc. all are embedded within amazon.com quality assuring
value propositions. Amazon.com Inc. also recognized as one of the most procuring
networking business. Moreover, the nature of constant commercial procurement
leads this successful business on the peak of production maximization (Amazon Web Effectual Implication of Total Quality Management

Services 2014).

1.3.3 DROP SHIPMENT MODEL

This model specifically implied by Amzon.com for the successful achievement of


quality based articles shipping to their ordered buyers. This strategic model played
as the retailer transfer the ordered articles to their manufactures or the provided
Within Amazon.Com Inc.

wholesalers so as to assure qualitatively managed article shipping to the potential


buyers, respectively. The price differences managed by the retailer and the

10
manufacturer arranged in terms of retail based profit prices. The alliance based
inventory managing enhanced the Amazon.com constructive quality reputation.

1.3.4 STRATEGICALLY MANAGING SUPPLY CHAIN

Amazon.com always played in a tactical fashion where each and every supply chain
bound under specially devised methodological measures. Amazon.com used to
manage their price friendly services through making specific strategic alliance with
other multinationals. In order to have an appropriate associate, company usually
followed the customer care services provided by its proposed ally independently.
Some of the most often recognized Amazon.com allies are enlisted below:
I. Pets.com V. Gear.com
II. Greenlight.com VI. Drugstore.com
III. Della.com VII. Ashford.com
IV. Living.com VIII. HomeGrocer.com
Amazon never resist to add new and potentially convincing products to their variety’s
list. Supplementary to such high profile business tactics, Amazon.com Inc. also
possessed to have a productive value conservation and individual dependability
assurance, quick and efficient articles transference, precise determination of artifacts
projective loads, contract predicting in the Amazon.com interior treating continuum,
adequate customer compliance etc. (Amazon.com 2014a). So, here we have enlisted
those tactical scale on which Amazon.com Inc. can positively access their potential
business quality management and performance improvement constructively.

Table: 1.3.1- Total Quality Management Implicated Fundamentals Effectual Implication of Total Quality Management
Within Amazon.Com Inc.

Total Quality Management Implicated Fundamentals Within Amazon.Com


Inc.
Total Quality Status
Management
Within Amazon.Com Inc.

Fundamental

11
Administrative and `Implication of goals oriented administrative tactics
Managerial Controls `Task acceptance business models
`Decisive and determined managers
`Honest and efficient administration
Customer Compliance `Responsible administration in terms of public
satisfaction
`Consumer oriented service provision spectrum
`Barriers of communication channel so as to receive
constructive and destructive potential feedbacks
(Holmes 2015)
`Assure customer trust status for the efficient provision
of product repairing services
Task Management `Determined administration in order to assure existed
and predictive task
`Conductance of capacity building for the efficient and
progressive task oriented processing (Ziegel 2015)
Quality Enhancement `Upgraded service quality
`Assure delivered product quality
`Safety assurance and return facility
`Upgraded website technological features
Transportation and `Upgraded product distributive measures
Product Distribution `Quick and efficient product delivery
`Constantly make efforts to lower their shipping time
Effectual Implication of Total Quality Management
with progressively improved product quality
(Amazon 2014a)

1.4 STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS

(SWOT) ANALYSIS
Within Amazon.Com Inc.

Amazon claimed to comply all of the logistic total quality management potentialities
that have had been proposed from academic scholar and business experts,
proactively. They also welcomed the smart innovative ideas for the constant

12
improvement of their production band. Similarly, Amazon.com is one of the best
international corporation that specially assured the establishment of a thoughtfully
fabricated company’s overall policy (Amazon Web Services 2015). This is the reason
why they have had implemented the total quality management program within their
managerial sector. Additionally, the business administrations suggested to have a
detailed risk assessment audit in order to extract out all of the destructive business
potentialities. So, the company used to conduct regular risk monitoring and proactive
risk management for the projective assurance of Amazon.com Inc. succession. So,
here we have presented a tabulated form of amazon.com detailed SWOT analysis,
below:

Table: 1.4- Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis of


Amazon.Com Inc.

STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT)


ANALYSIS OF AMAZON.COM INC.

PARAMETER STATUS

Strengths Thoughtfully administered Amazon’s technological up


gradation assure the quality managing services within
amazon.com Inc. The company offered twenty-four hours
facilitative services to their potential buyer along with a strong
critical product review so that the performance status of the
articles provided by the company could be transparently Effectual Implication of Total Quality Management

ensured. Additionally, company offered quick contact services


so that the online transactions should never face the faulty
processing breaks. Being the first e-commerce website, it
possessed to have a wide and correspondingly strong product
distribution channel that specifically improved the customer
trust status, constructively (Chiles & Dau 2005). The product
Within Amazon.Com Inc.

offered by this website also very much fluctuating on the price

13
scale so as to provide equal purchasing opportunities to all
ranks of the society.

Weaknesses Increased oil taxation along with constantly increasing fuel


prices increased the risk of shipping flaws within Amazon.com
productive delivery services. Along with this processing,
Amazon.com need to assure quality based article shipping for
which they have to rely upon contracted delivery companies.
This possessed to have a greater risk for the company as a
minute flaw within article shipping or the shipped product
quality could destroy the company’s honest repute.
Additionally, we have had discussed that the Amazon.com is
very much welcoming in terms of adding verity’s of brand’s
articles within this offered product spectrum. This
phenomenon attitude also posed a greater, quality based risk
potential for the company as the assurance of product quality
also guaranteed by the company that could also destroy its
repute.

Opportunities Being the first online shopping website, the company enjoyed
a greater distribution channel that means the company
enjoyed a highly expansive impact factor. Amazon.com is the
name of quick and efficient quality based shipping service that
included millions of product variety on its offered spectrum. Effectual Implication of Total Quality Management
So, its net count of daily visitors also crossed the opponent’s
customer limits. This, not only enhanced the running capacity
of the company but, also the net share and respective
balance, successively. Additionally, company expanding their
inventories and respective spatial coverage spectrum so as to
assure greater revenue generation. Lately, Amazon.com also
Within Amazon.Com Inc.

working on to be established within Asian commercial


regimes.

14
Threats Constantly increasing fuel prices used to be added up within
product shipping charges that gives the deliver a negative
impact. So, the customers preferred to visit the local markets
and purchased from them on price friendly rate. This, directly
impact the company’s overall business transactions. In this
regard, Amazon.com have to limit their delivery charges within
affordable price friendly range that sometimes become very
much difficult. Additionally, the competitive business pressure
also threatened the company’s viability, negatively.
(Sabitha 2014)

1.5 FACTS AND FIGURES

Amazon.com still found difficulties to tackle their net competitive pressure. Their
potential business competitors used to have greater number of resources, prolonged
marketing histories and a higher brand recognition. But, what Amazon.com Inc. got
is the availability of effectually implemented total quality management logistics that
make its number high in the hierarchy of competing world business leads (Keblis et
al. 2014). Although, the tactically adjusted aggressive pricing is a smart business
moves but, Amazon.com used to move with customer satisfactory demands so as to
make them permanent and enhance their predictive forecasting even more increased
in numbers, respectively. So, here we have tabulated some of the company’s
statistically aligned facts and figures that showed the net production of company thru
the effectual implementation of total quality management within business potential
Effectual Implication of Total Quality Management

processing, below:

Table 1.3.2- Total Quality Management and Productive Net Yield of


Amazn.Com Inc.

Total Quality Management and Productive Net Yield of Amazn.Com Inc.


Within Amazon.Com Inc.

Facts Figures
2010 2011 2012 2013 2014

15
Net $ 1152 $ 631 $ 39.0 $ 274 $ 241
Production Million Million Million Million Million
Basic Profit $ 2.58 $ 1.39 $ 0.09 $ 0.60 $ 0.52
Million Million Million Million
Per Share Million
Diluted $ 2.53 $ 1.37 $ 0.09 $ 0.59 $ 0.52
Profit Per Million Million Million Million Million
Share
Net $ 1152 $ 631 $ 39.0 $ 274 $ 241
Business Million Million Million Million Million
Sale
Operations $ 1406 $ 862 $ 676 $ 745 $ 178
Based Million Million Million Million Million
Business
Income
Weighted $ 447 $ 453 $ 453 $ 457 $ 462
Basic Profit Million Million Million Million Million
Per Share
Weighted $ 456 $ 461 $ 453 $ 465 $ 462
Diluted Million Million Million Million Million
Profit Per
Share
Net Cash $ 3495 $ 3903 $ 4180 $ 5475 $ 6842
Flow Million Million Million Million Million Effectual Implication of Total Quality Management
Procurement $ 979 $ 1811 $ 3785 $ 3444 $ 4893
Cash Flow Million Million Million Million Million
Free Finance $ 2516 $ 2092 $ 395 $ 2031 $ 1949
Flow Million Million Million Million Million
Total $ 18797 $ 25278 $ 32555 $ 40159 $ 54505
Business Million Million Million Million Million
Within Amazon.Com Inc.

Assets

16
Net $ 1561 $ 2625 $ 5361 $ 7433 $ 15675
Business Million Million Million Million Million
Obligations
(Amazon 2014a)

Though, the major source of revenue generation is the successive transaction of


Amazon.com deals that placed online. But, the network marketing played a role of
third party potential sellers that make the process quite complex. However,
Amazon.com constantly uplifting successive productive yield thru the effective
implementation of total quality business management. Gross net production used to
be estimated by overall website’s transactions (Statista 2015). Amazon.com Inc. also
build up to offer other customer friendly services to enhance quality assurance and
business performance simultaneously. Some of these customer friendly services
offered by amazon.com Inc. are enlisted below:

I. Amazon Web Services (AWS)


II. Articles Packaging and Respective Orders Fulfillment
III. Books and Novels Publishing
IV. Entertaining Digital Media Content
V. Commercial Advertising
VI. Brand Based Debit Cards

1.6 CRITICAL ANALYSIS OF TOTAL QUALITY MANAGEMENT

(TQM) WITHIN AMAZON.COM Effectual Implication of Total Quality Management

After discussing all of the operational activities that have been conducting at and thru
Amazon.Com Inc. we found some of the limiting probabilities that possessed to have
a strong potential for probable business regression. Amazon.com Inc. itself found
these key contributory point that needed to be focused further advancements. First of
all, one of the most significant potential impacting factor is the quality maintenance
Within Amazon.Com Inc.

and consistent up gradation (Ritala et al. 2014). Though Amazon.com Inc. have had
implemented total quality management but, they still needed to hire best managerial
control to understand the management requirement and full fill them efficiently. The

17
experienced administrative and managerial controls happened to be the best proactive
means that can helped to avoid any disrupting business event and also managing the
predictive economic risks, proactively.

Another major problem Amazon.com Inc. is facing today is to cope up with their novel
investments as it is part of Amazon’s strategic policy to welcome each of new
introducing products to their company. But, the investment profitability on the account
of such novel artifacts is not necessarily assured (Ding 2015). For that, they have had
introduced the total quality management but, the potential assurance of business
profitability in this particular articles inclusion sector is not substantially satisfying.
Although, Amazon.com also introduce technological advances to their website
constantly but, the management of such fluctuating advances is quite a complex
process. Total quality management provides control over product and all of its sale
related logistics implemented measures. But, the cloud of networking technology is
something that could not be properly manage up by this particular platform. For this
purpose, Amazon.com administration has had been hiring some kind of
technologically strong managing group like cloud computing etc. but then again the
point of total management application seems somewhat going to fail here.

1.7 LESSONS LEARNED

After discussing the application of total quality management within world famous
Amazon.com Inc. business we have found some significant business lessons that we
have enlisted below:
Effectual Implication of Total Quality Management
Strategic inclusion of fresh arrivals within existing e-commerce business is a
necessary pre-requisite so as to being recognized as an innovatively smart
business Inc.

Application of total quality management within any large and even small scale
business is very important progressive point as it helps enhance the quality,
profitability, and durability and performance status of company, respectively.
Within Amazon.Com Inc.

Tactically fashioned business moves is something that each and every business
economy should follow so as to assure their constant business succession.

18
Despite the fact that the Amazon web services followed their methodological
tactics but, still the regular updates regarding these tactics should be included
within actual business moves.

Individual capacity building along with regular business auditing is another necessary
pre-requisite that not only Amazon.com but also the other networking and spatial
business economies needed to follow for their effective marketing succession.

1.8 APPLICATION OF TQM AT GLOBAL SCALE

Total quality management is a successful operating quality management process that

helped out various business economies in assuring and enhancing respective

business productivities. Potential marketing anomalies that we have just discussed

above should be specially consider but, the pros and cons analysis of this system

ranked it a successful progressing one. Amazon.com is a worldwide e-commencing

business and its marketing spectrum is quite an intercontinental one (Amazon 2014a).

Their business inventories enjoys a substantially large coverage area. This makes

their business productive and sophisticated at the same time. However, the regular

process monitoring, annual discussion meetings, managerial accountabilities etc. all

make the business a successive lead as a whole. Lots of other business economies

not only related to e-commencing but also the other social trading sectors like Proctor
Effectual Implication of Total Quality Management
and Gamble, Costco Wholesale, BMW, Berkshire Hathaway, Star Bucks, Coca-Cola

etc. All of these world leading business belong to a dynamic trading sectors but the

inclusion of total quality management helped them survive their potential competitive

pressure and to process successively.


Within Amazon.Com Inc.

In 2014, Duran and his co-workers conducted a study on organizational quality


management practices. In Eskişehir, dynamic business processing carried on with
relatively fluctuating commercial shares. So, the companies had applied the

19
administrative and managerial total quality management protocols so as to assure
their progressive business performance (Duran et al. 2014). They have concluded that
the effectual implication of total quality management within the concerned business in
Eskişehir resulted in three major business productivities that are enlisted below:

I. The Progressive Quality Assurance


II. Improved Culture Based Business Quality
III. Enhanced Performance Quality Status

1.9 CONCLUSION

The study of total quality management within international Amazon.com Inc. produce
lots of qualitative productivities that enhanced their gross market share. Total quality
management includes various fluctuating parameters needed to be assimilated within
an organization so as to assure performance increment. Some of these factors didn’t
process positively within Amazon.com. However, after opting this phenomenon
management process, the company regularly monitor their profit performance on the
comparative scale. In this way, possibilities for productive business advancement
improved and produce major networking share. Additionally, Amazon.com Inc. have
reported that their management sector possessed to have a strong responsibility for
the constructive disclosure of net production share. We also have thoroughly
discussed the company’s financial business statistics in this paper. These progressing
statistics gave the clear beneficial impacts of total quality management within the
concerned organization. Hence we have concluded that the implication of total quality
management within Amazon.com Inc. brought lots of positivity’s for the company. So, Effectual Implication of Total Quality Management

it is suggested that the further progression can be achieved thru constantly improving
this management sector as well.

1.10 BIBLIOGRAPHY

Abdallah, A.B., 2013. The Influence of “Soft” and “Hard” Total Quality Management
(TQM) Practices on Total Productive Maintenance (TPM) in Jordanian
Within Amazon.Com Inc.

Manufacturing Companies. International Journal of Business and Management,


8(21), pp.1–13. Available at:

20
http://www.ccsenet.org/journal/index.php/ijbm/article/view/29282.

Ahmad, M.F. et al., 2014. Moderating Effect of Asean Free Trade Agreement
between Total Quality Management and Business Performance. Procedia - Social
and Behavioral Sciences, 129, pp.244–249. Available at:
http://linkinghub.elsevier.com/retrieve/pii/S1877042814028559.

Amazon, 2014a. ANNUAL REPORT: AMAZON.COM, INC.,

Amazon, 2015. Press Release: Amazon.com Announces Second Quarter Sales up


20% to $23.18 Billion. Amazon.com, Inc., pp.1–15. Available at:
http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-newsArticle&ID=2070674.

Amazon, 1995. Press Releases: Just in Time for the Holidays: Prime Now Adds
4,000 New Items Available for One? Hour Delivery. Amazon.com, Inc., pp.12–12.
Available at: http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-
newsArticle&ID=2121533.

Amazon, 2014b. Q2 2014 Financial Results Conference Call Slides. Amazon.com,


Inc., pp.1–24.

Amazon Web Services, I., 2014. Press Releases: Amazon Web Services
Announces Amazon WorkMail. Amazon.com, Inc., pp.12–13. Available at:
http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-
newsArticle&ID=2011466.

Amazon Web Services, I., 2015. Press Releases: Amazon’s First Pilot Season of
2015, Featuring Slate of 13 Original Comedy, Drama, Docuseries and Kids Effectual Implication of Total Quality Management

Offerings, is Now Available on Amazon Instant Video in the US, UK and Germany.
Amazon.com, Inc., pp.1–4. Available at: http://phx.corporate-
ir.net/phoenix.zhtml?c=176060&p=irol-newsArticle&ID=2007956.

Amazon Web Services, I., 1995. Press Releases: Prime Now in Chicago Gets Even
Better: Superfast Delivery from Your Favorite Local Store. Amazon.com, Inc.,
Within Amazon.Com Inc.

pp.12–12. Available at: http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-


newsArticle&ID=2121595.

21
Amazon.com, I., 2015. Press Release: Amazon.com Announces Third Quarter
Sales up 23% to $25.4 Billion. Amazon.com, Inc., pp.1–11. Available at:
http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-newsArticle&ID=2100418.

Amazon.com, I., 2014a. Press Releases: Amazon.ca Announces the Best?Selling


Books of 2015. Amazon.com, Inc., pp.12–13. Available at: http://phx.corporate-
ir.net/phoenix.zhtml?c=176060&p=irol-newsArticle&ID=2121166.

Amazon.com, I., 2014b. UNITED STATES SECURITIES AND EXCHANGE


COMMISSION Washington, D.C. 20549,

Benavides-Velasco, C. a., Quintana-García, C. & Marchante-Lara, M., 2014. Total


quality management, corporate social responsibility and performance in the hotel
industry. International Journal of Hospitality Management, 41, pp.77–87. Available
at: http://dx.doi.org/10.1016/j.ijhm.2014.05.003.

Chiles, C.R. & Dau, M.T., 2005. An Analysis of Current Supply Chain Best Practices
in the Retail Industry with Case Studies of Wal-Mart and Amazon.com. Available at:
http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.117.7382&rep=rep1&type
=pdf.

Cetindere, A., Duran, C. & Yetisen, M.S., 2015. The effects of total quality
management on the business performance: An application in the province of
Kütahya. Procedia Economics and Finance, 23(October 2014), pp.1376–1382.
Available at: http://www.sciencedirect.com/science/article/pii/S2212567115003664.

Dahil, L. & Karabulut, A., 2013. Effects of Total Quality Management on Teachers Effectual Implication of Total Quality Management
and Students. Procedia - Social and Behavioral Sciences, 106, pp.1021–1030.
Available at: http://www.sciencedirect.com/science/article/pii/S1877042813047319.

Ding, M., 2015. Perfect 10 v. Amazon.com: A Step Toward Copyright’s Tort Law
Roots. Berkeley Technology Law Journal, 30(1), pp.373–403. Available at:
http://www.jstor.org/stable/24118310.
Within Amazon.Com Inc.

Duran, C., Çetindere, A. & Şahan, Ö., 2014. An Analysis on the Relationship
Between Total Quality Management Practices and Knowledge Management: The
Case of Eskişehir. Procedia - Social and Behavioral Sciences, 109, pp.65–77.

22
Available at: http://linkinghub.elsevier.com/retrieve/pii/S1877042813050544.

F.F. & Pitard, 2009. 1.01 - An Introduction to the Theory of Sampling: An Essential
Part of Total Quality Management. Comprehensive Chemometrics, pp.1–16.
Available at:
http://www.sciencedirect.com/science/article/pii/B9780444527011000892.

Gilbert, R.J., 2013. A Tale of Digital Disruption. The Journal of Economic


Perspectives, 57(3), pp.415–426. Available at:
http://www.jstor.org/stable/43550126.

Gold, E., 2015. Notice of 2015 Annual Meeting of Shareholders. Management Proxy
Circular, pp.0–35.

Hertig, C. a & Davies, S.J., 2008. Security Supervision and Management: The
Theory and Practice of Asset Protection,

Holmes, P., 2015. Total Quality Management. British Medical Journal (BMJ),
307(6918), pp.1564–1565. Available at: http://www.jstor.org/stable/29722029.

Huang, A.H. et al., 2015. A study of factors that contribute to online review
helpfulness. Computers in Human Behavior, 48, pp.17–27. Available at:
http://www.sciencedirect.com/science/article/pii/S0747563215000229.

Izvercian, M. et al., 2014. The Impact of Human Resources and Total Quality
Management on the Enterprise. Procedia - Social and Behavioral Sciences, 124,
pp.27–33. Available at:
http://linkinghub.elsevier.com/retrieve/pii/S1877042814020047. Effectual Implication of Total Quality Management

Kahreh, Z.S., Shirmohammadi, A. & Kahreh, M.S., 2014. Explanatory Study


Towards Analysis the Relationship between Total Quality Management and
Knowledge Management. Procedia - Social and Behavioral Sciences, 109, pp.600–
604. Available at: http://linkinghub.elsevier.com/retrieve/pii/S1877042813051525.

Keblis, M.F., Chen, M. & Keblis, F., 2014. Improving Customer Service Operations
Within Amazon.Com Inc.

at Amazon.com. Institute of Operational Research and the Management Science


(INFORMS), 36(5), pp.433–445. Available at:

23
http://www.jstor.org/stable/20141425?seq=1&cid=pdf-
reference#references_tab_contents.

Kousha, K. & Thelwall, M., 2011. Alternative Metrics for Book Impact Assessment :
Can Choice Reviews be a Useful Source ? School of Mathematics and Computer
Science, pp.59–70. Available at: http://www.issi2015.org/files/downloads/all-
papers/0059.pdf.

Lennon, S.J. & Kim, J.-H., 2015. Making Sense of the E-Service Quality Literature:
International Journal of Service Science, Management, Engineering, and
Technology, 6(1), pp.37–62. Available at: http://services.igi-
global.com/resolvedoi/resolve.aspx?doi=10.4018/ijssmet.2015010103.

Martel, A., 2015. The Journal of the Operational Research Society,. , 46(11),
pp.1337–1351.

Militaru, M., Ungureanu, G. & (Creţu), A.Ş.C., 2013. The Prospects of Implementing
the Principles of Total Quality Management (TQM) in Education. Procedia - Social
and Behavioral Sciences, 93, pp.1138–1141. Available at:
http://www.sciencedirect.com/science/article/pii/S1877042813034484.

Narendula, R., 2012. Amazon Web Services : a Case Study Course : Business
Process for IT Services 2012 , EPFL. Available at:
http://infoscience.epfl.ch/record/181192/files/AWS-Case Study-
RammohanNarendula.pdf.

O’Neill, P., Sohal, A. & Teng, C.W., 2015. Quality management approaches and Effectual Implication of Total Quality Management
their impact on firms’ financial performance - An Australian Study. International
Journal of Production Economics, Available . Available at:
http://www.sciencedirect.com/science/article/pii/S0925527315002637.

PR, K., 2015. Press Releases Celebrating Ten Years : Amazon Prime by the
Numbers. Amazon.com, Inc., pp.12–13. Available at: http://phx.corporate-
ir.net/phoenix.zhtml?c=176060&p=irol-newsArticle&ID=2013032.
Within Amazon.Com Inc.

Ritala, P., Golnam, A. & Wegmann, A., 2014. Coopetition-based business models:
The case of Amazon.com. Industrial Marketing Management, 43(2), pp.236–249.

24
Available at: http://dx.doi.org/10.1016/j.indmarman.2013.11.005.

Sabitha, Z.B., 2014. Case study on Amazon . com ’ s Supply Chain Management
Practices. Available at:
https://www.google.com.pk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja
&uact=8&ved=0ahUKEwj6pILv3ezJAhUKno4KHcHVDo8QFggbMAA&url=http%3A
%2F%2Fwww.slideshare.net%2Faneeshp1%2Fcase-study-on-amazoncoms-
supply-chain-management-
practices&usg=AFQjCNG9OrOfBYrg6o7RUdgx9QRqVnQgzg&sig2=zdFTSJwRc-
f9b6IkoaAATQ&bvm=bv.110151844,d.c2E.

Soediono, B., 1989a. AMAZON.COM ANNOUNCES SECOND QUARTER SALES


UP 20% TO $23.18 BILLION,

Soediono, B., 1989b. AMAZON.COM ANNOUNCES THIRD QUARTER SALES UP


23% TO $25.4 BILLION,

Srima, S., Wannapiroon, P. & Nilsook, P., 2015. Design of Total Quality
Management Information System (TQMIS) for Model School on Best Practice.
Procedia - Social and Behavioral Sciences, 174, pp.2160–2165. Available at:
http://linkinghub.elsevier.com/retrieve/pii/S1877042815013245.

Statista, 2015. Number of Amazon . com employees from 2007 to 2014. Statista:
The Statistics Portal, pp.01–03. Available at:
http://www.statista.com/statistics/234488/number-of-amazon-employees/.

Suwandej, N., 2015. Factors Influencing Total Quality Management. Procedia - Effectual Implication of Total Quality Management
Social and Behavioral Sciences, 197(February), pp.2215–2222. Available at:
http://linkinghub.elsevier.com/retrieve/pii/S1877042815043621.

Topalović, S., 2015. The Implementation of Total Quality Management in Order to


Improve Production Performance and Enhancing the Level of Customer
Satisfaction. Procedia Technology, 19, pp.1016–1022. Available at:
http://www.sciencedirect.com/science/article/pii/S2212017315001462.
Within Amazon.Com Inc.

Yang, S. et al., 2015. CAPER 3.0: a scalable cloud-based system for data-intensive
analysis of Chromosome-centric Human Proteome Project datasets. Journal of

25
Proteome Research, p.150320125227000. Available at:
http://pubs.acs.org/doi/abs/10.1021/pr501335w.

Zatzick, C.D., Moliterno, T.P. & Fang, T., 2012. Strategic (MIS)FIT: The
implementation of TQM in manufacturing organizations. Strategic Management
Journal, 33(11), pp.1321–1330.

Ziegel, E.R., 2015. American Society for Quality: Review. Taylor & Francis, Ltd.,
44(1), pp.94–95. Available at: http://www.jstor.org/stable/1270307.

Effectual Implication of Total Quality Management


Within Amazon.Com Inc.

26

You might also like