Professional Documents
Culture Documents
Amazon As An Employer
Extract
In this case study, we analyzed the management and leadership styles of Jeff Bezos, the
founder, and former CEO of Amazon, and Andy Jassy, the current CEO. We found that Bezos
had a very hands-on management style, Jassy, on the other hand, is seen as more of a
collaborative leader who focuses on empowering his teams and building a positive culture.
One key difference between the two leaders is their approach to risk-taking. Bezos was
known for his willingness to take bold risks, which led to the creation of innovative products like
Amazon Prime and the Kindle. Jassy, however, is seen as more conservative in his approach,
prioritizing stability and sustainability over rapid growth. While Bezos was known for being a
demanding boss who pushed his employees to constantly improve, Jassy is focused on building a
culture of mentorship and coaching, where employees can learn from one another and grow in
their roles. Overall, both leaders have been successful in their respective roles, and their
Amazon Design
Amazon has functional organizational structure, with the company divided into various
departments such as Amazon Web Services, Amazon Prime, Amazon Fresh, and Amazon
Studios, and some other function-based groups are Office of the CEO, Worldwide Amazon
Stores, and International Consumer Business. Each department is led by a senior executive who
report to the CEO. The functional structure allows Amazon for specialization and in their
particular departments.
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achieving growth and success and become one of the most successful company in the e-
commerce industry and also the retail industry surpassing Walmart. Amazon has been following
the same organizational structure for more 2 decades and it has been proven effective for the
company and creating dominance in the e-commerce industry. The functional structure allows
has the ability to explore new opportunities for business while exploiting the existing strengths.
It has a culture that encourage experimentation and risk taking. Amazon expansion in Amazon
Web Services (AWS) is a new exploration, while it continued domination of the e-commerce
industry is exploitation of its existing strengths. AWS is responsible for developing new
with long-term goals are designed into the company's decision-making processes. In this section,
we analyse how Amazon makes decisions and what drives its processes:
customer and work backwards. This customer-centric approach influences decision making
throughout the organization. Amazon teams are encouraged to understand customer needs
deeply, anticipate future requirements, and make decisions that prioritize customer satisfaction.
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2. Data-Driven Decision Making: Amazon places a high value on data and uses it
extensively to drive decision making. The company collects vast amounts of data from various
sources, including customer feedback, sales metrics, and operational performance. This data is
analysed rigorously, enabling Amazon to make informed decisions and optimize its operations.
structure, which empowers teams to make decisions independently. This approach fosters
innovation, agility, and ownership among employees. Decision-making authority is pushed down
to the lowest possible level, enabling faster execution and reducing bureaucracy.
for decision making and guide employees' behaviour. These principles include customer
obsession, ownership, action bias, frugality, and long-term thinking. They act as a common
language across the organization, ensuring consistency and alignment in decision making.
5. Just-In-Time Decision Making: Amazon values speed and agility, and this is reflected
in its decision-making approach. Rather than striving for perfection or lengthy deliberations, the
company encourages making decisions quickly, learning from them, and iterating as necessary.
This allows Amazon to stay nimble and adapt to changing market conditions.
decentralization, and bias for action. This enables the company to stay ahead of the competition,
Here's how Amazon's management and leadership differ from Google's Oxygen Project:
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managers within an organization to study and improve their effectiveness. Despite the fact that
the project's details are not publicly available, some aspects of Google's management and
decision making. Google, being a technology company, also places a strong emphasis on data
approach, Google promotes employee empowerment and autonomy. Both companies encourage
employees to take ownership of their projects, foster a culture of innovation, and provide
Amazon is known for its customer-focused business units, while Google traditionally operates
under a flatter, more matrixed structure. However, both companies strive to create an
behaviours and qualities of effective managers within their organization. Google invests in
leadership development programs and provides resources to help managers succeed in their
roles. While Amazon's leadership principles serve a similar purpose, the specific approaches to
Overall, both Amazon and Google emphasize data-driven decision making, employee
empowerment, and a culture of innovation, but their organizational structure and leadership
development may differ. Amazon has a decentralized structure with a focus on empowering
employees to make decisions. Google, on the other hand, has a more centralized structure, with a
focus on developing their leaders. Both companies, however, have a strong culture of innovation.
Situation Analysis
Situation analysis is typically conducted using tools like SWOT analysis, Porter's Five
Forces, and PEST analysis. These tools can help to identify a company's strengths and
weaknesses, as well as the opportunities and threats posed by the external environment. Using
these tools, businesses can make informed decisions on how to navigate the market and position
We will use SWOT analysis and Porter's Five Forces to understand Amazon's current
situation. SWOT analysis will identify Amazon's internal strengths and weaknesses, while
Porter's Five Forces will examine the external factors affecting their competitive landscape.
Armed with this knowledge, Amazon will be in a better position to make intelligent decisions
1. SWOT Analysis:
Strengths:
- Strong brand recognition and customer loyalty. The company has developed a strong
reputation for quality products and services which has led to customers developing a strong sense
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of trust and loyalty. This has enabled the company to maintain a loyal customer base, even in
(Amazon Web Services), streaming services (Amazon Prime Video), and more. For instance,
when the Covid-19 pandemic hit, Amazon was able to use its online presence to quickly become
a major player in the grocery delivery business, which was a lifeline for many customers in
lockdowns.
- Efficient supply chain management, leading to fast and reliable deliveries. Amazon
has achieved these feats by leveraging technology to optimize their operations and by having a
diverse portfolio of products and services. This allows them to quickly respond to changing
customer needs while also being able to offer competitive prices. Additionally, their efficient
supply chain management enables them to keep costs low while offering fast and reliable
deliveries.
solutions and continuously innovating, this company has been able to stay ahead of their
competitors by responding quickly to changing customer needs. This allows them to offer
competitive prices while keeping their supply chain efficient, which helps keep costs low and
collecting customer data, companies can tailor their marketing messages to the individual
customer, making them more likely to purchase the product. They can also use the data to make
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product recommendations, which increases the likelihood of sales. Additionally, companies can
use the data to fine-tune their supply chain and ensure that they have the right products at the
right time, keeping their costs low and enabling fast and reliable deliveries.
Weaknesses:
of unfair wages, long working hours, and harsh working environments have raised questions
about how employees are treated. This has caused a public backlash, which has damaged the
Furthermore, customers are worried about the quality of the company's products since they can
not be sure if what they are buying is an authentic item or a counterfeit. Additionally, many
customers have expressed their concern about the lack of oversight of third-party sellers and the
potential for them to be selling products that are not of the same quality as those of the company.
oversight makes it difficult for companies to ensure that the third-party seller is providing
products that meet the same standards of quality as the company's own products. This could lead
has pushed companies to look for innovative solutions to remain competitive and maximize their
profits. Companies now focus on cutting costs, optimizing customer experience, and utilizing
data-driven solutions. By leveraging data, they are able to gain insight and make decisions that
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are faster and more accurate. They are also able to create personalized experiences for customers
Opportunities:
new markets and geographical regions, companies are able to tap into new customer bases and
find new sources of revenue. Additionally, they can benefit from access to new resources,
technologies, and talent pools, which can help them stay competitive in their industry.
expanding into these markets, companies have the potential to take advantage of the growing
demand for new products and services in these sectors. Additionally, they can capitalize on the
increasing availability of digital technology to create new innovative products and services.
Finally, they may be able to benefit from the increasing availability of skilled professionals in
these areas, which can help them stay ahead of the curve.
- The acquisition of Whole Foods Market offers an opportunity to enter the grocery
industry. The acquisition of Whole Foods Market provides an opportunity to enter the grocery
industry with a well-established and trusted brand. Furthermore, Whole Foods Market could be
leveraged to expand Amazon's online grocery delivery services, which is an area of growth in the
industry. Additionally, the acquisition provides access to a large customer base with a loyalty to
the Whole Foods brand and the potential to use their data to improve Amazon's services.
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- Increasing demand for cloud computing services. For example, Amazon Web
Services (AWS) has increased its market share in the cloud computing market, surpassing
Things (IoT), can be leveraged. Companies are turning to cloud computing services to handle
data storage, applications, and analytics processing due to its cost-effectiveness, scalability, and
reliability. Advancements in technology, such as AI and IoT, are making it easier for companies
to access cloud computing services, as they can be integrated into existing systems and help to
automate processes.
Threats:
sales were up globally and, in the U.S., and CEO Doug McMillon noted in the retailer's earnings
call that e-commerce now represents more than $80 billion in sales and over 13% of Walmart's
total sales.
practices. The competition from Walmart, Alibaba, and Google is a major challenge for many
companies, as these companies have the resources to offer lower prices, better customer service,
and a wider selection of products. Additionally, they are subject to regulations that can make it
difficult to operate in certain markets, and their practices can be subject to scrutiny from
events, or pandemics. This can lead to a decrease in revenue, as well as a potential loss of
customers. It can also be difficult for a business to find alternate suppliers in order to keep
operations running.
- Public scrutiny and negative press related to labor practices and environmental
impact. These disruptions can damage a company's reputation, which can lead to a decrease in
customer demand and an overall decrease in revenue. It can also be difficult to recover from
public perception issues and negative press, as it takes time and money to rebuild trust with
business practices. This is because consumers are more aware of the environmental and social
impacts of companies and they want to ensure that their purchases are not supporting companies
that have a negative impact. Therefore, companies have to be more conscious about their
operations and how they are perceived in order to retain customer loyalty.
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innovation and a
focus on technology
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a. Threat of New Entrants: The threat of new entrants for Amazon is moderate to high.
While Amazon has established a significant market presence, new entrants can still enter specific
markets, such as e-commerce, cloud computing, and streaming services. However, barriers to
entry, such as economies of scale, brand recognition, and vast infrastructure, pose challenges for
potential competitors. The market presence of Amazon is similar to the strong fortifications of a
castle, while potential competitors are the brave knights looking to breach the walls. With strong
walls and a loyal following, even a valiant effort may not be enough to overtake Amazon's
stronghold.
b. Bargaining Power of Suppliers: Amazon has relatively low bargaining power over its
suppliers due to its large scale and dominant market position. However, suppliers with unique
products or services may have more bargaining power. Amazon has a large number of suppliers
and can easily switch to another supplier if one supplier becomes too expensive. However,
suppliers with specialized products or services may be able to negotiate better terms due to the
knowledge that Amazon cannot easily switch to another supplier. Amazon has a large and
diverse supplier base, but the company has significant leverage over its suppliers due to its size
to the abundance of online options and the ease of switching to competitors Amazon's focus on
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customer-centricity and competitive pricing helps maintain customer loyalty and mitigates this
power. Additionally, Amazon's brand recognition and customer loyalty programs are additional
ways to counteract customers' bargaining power by creating a sense of customer loyalty. 97% of
American consumers are loyal to at least one brand, and 56% of customers will stay loyal to a
and cloud computing industries. Amazon must continually innovate and differentiate its
offerings. Consumers have the option to purchase from other retailers and use other cloud
computing services, so Amazon must stay ahead of the competition by continuously offering
better products and services. This requires a significant amount of innovation and investment in
Walmart is a major competitor in the e-commerce space, while Google, Microsoft, and IBM
compete with Amazon Web Services. The company faces strong competition on multiple fronts,
requiring continuous investment in innovation and customer experience. For instance, Amazon
has invested heavily in its Prime service, which offers customers access to free shipping and
exclusive discounts to increase customer loyalty and fend off competitive pressure.
As per the Resource-Based View framework, used to determine the strategic resources a
firm can exploit to achieve sustainable competitive advantage. In case of Amazon, the
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Amazon has numerous fulfillment centers and its large distribution network all around
the world helps it for fast delivery of products to the customers. Amazon has partnership with
other delivery companies expanding Amazon’s reach. Amazon has spent a fortune on its
technology such as machine learning algorithm, cloud computing service, and voice operating
devices. Brand equity is leading strength of any technology company and Amazon has been able
to built strong brand equity over long period of time through its focus on customer service and
product quality. Since the beginning, Amazon focus remained on customer service. Strong focus
on customer service has resulted in higher sales and fast growth in popularity. Amazon’s
customer base is one of its most valuable resources. While Amazon has a great pricing strategy,
it also has focused on serving customers well, leading to higher customer loyalty. The company
has millions of customers worldwide, which allows them to generate a tremendous amount
revenue. Finally, Amazon workforce is a valuable resource. The company employs thousands of
people worldwide, from software engineers and data scientists to warehouse workers and
customer service representatives. Amazon's workforce is diverse, highly skilled, competitive, and
focused on company’s mission providing excellent work. When all these resources are combined
it makes Amazon an e-commerce company with diverse products to satisfy customer needs.
Resource allocation decisions at Amazon are made based on a data-driven approach. The
company uses algorithms and analytics to assess the potential return on investment for each
project and allocate resources accordingly. Amazon's current trajectory appears to be sustainable
in the short-term. The company has continued to grow its revenue and customer base in recent
years, and its dominant market position gives it a big advantage over its competitors. However,
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there are some concerns about the long-term sustainability of Amazon's growth. However, the
company has faced increasing scrutiny from regulators and policymakers around the world,
criticism over its treatment of workers and the environmental impact of its operations. These
Business Rhythm
The term "rhythm" in a business setting describes the predictable pattern or pace of
actions and procedures carried out by a company. An organization can operate more effectively,
foster better employee communication and teamwork, and ultimately produce better results, with
After researching Amazon's 1997 shareholder letter, it's clear that the company places a
strong emphasis on maintaining a consistent rhythm in operating the business. From expanding
their employee base and distribution center capacity to increasing their inventory and cash
balances, Amazon has made strategic investments to support their growing customer base.
The company's dedication to hiring top talent is another example of their commitment to
maintaining a rhythm in their business operations. Although working at Amazon may not be
easy, the company is working to build something important that matters to their customers and
employees alike.
Looking forward to 1998, Amazon has set clear goals for continuing to solidify and
extend their brand and customer base. This requires sustained investment in systems and
infrastructure to support outstanding customer convenience, selection, and service while they
grow. They also plan to add music to their product offering and explore other potential
investment opportunities.
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Despite the challenges they face, including aggressive competition and execution risk,
Amazon remains optimistic and committed to maintaining a sense of urgency. Overall, it's clear
that Amazon places a high value on consistency and discipline in their business operations, and
Amazon's business rhythm appears to be a combination of formal and informal elements, which
makes it a unique approach to running a successful company. On the one hand, the company's
CEO, Jeff Bezos, has set clear goals for the organization and is constantly pushing for innovation
and growth. This formal structure is evident in the company's focus on setting targets and
measuring performance.
approach to problem-solving. The company encourages employees to take risks and experiment
with new ideas, which has led to innovations such as Amazon Prime and the Echo. This informal
approach is evident in Bezos' own words, when he says that "setting the bar high in our approach
to hiring has been, and will continue to be, the single most important element of Amazon.com's
success."
setting high standards for its employees, as well as its emphasis on data-driven decision-making.
For example, Bezos has famously stated that at Amazon, "data trumps intuition," indicating the
Overall, Amazon's business rhythm has been highly effective in driving growth and
with new ideas, the company has been able to stay ahead of the competition and provide value to
its customers. Additionally, Amazon's focus on hiring and retaining top talent has been critical to
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its success, as it has allowed the company to build a team of dedicated employees who are
Amazon has been successful in delivering on its mission of being Earth's most customer-
centric company. The company's focus on providing a superior customer experience has been a
key driver of its success, as demonstrated by its consistently high customer satisfaction ratings
To achieve alignment with its mission, Amazon has a number of strategies in place,
including investing heavily in technology and innovation, providing a wide range of products
and services, and prioritizing speed and convenience in its operations. The company has also
created a strong culture of customer service, which is reinforced through its leadership principles
Operational results at Amazon have been closely linked to the company's overall strategy.
For example, the company's investments in technology and innovation have helped to improve
its supply chain operations, reduce delivery times, and enhance the customer experience.
Amazon's expansion into new markets and product categories, such as cloud computing and
Amazon measures its successes across a range of financial and non-financial metrics.
Key financial metrics include net sales, operating income, and net income. According to the
company's financial reports, Amazon's net sales have increased consistently over the past several
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years, reaching $386 billion in 2020, up from $232 billion in 2018. The company's operating
income has also grown, reaching $22.9 billion in 2020, up from $14.5 billion in 2018.
Non-financial metrics that Amazon tracks include customer satisfaction, order fulfillment
speed, and inventory turnover. According to a recent survey by the American Customer
Satisfaction Index (ACSI), Amazon has consistently ranked among the highest-rated retailers in
terms of customer satisfaction. The company's order fulfillment speed has also improved over
time, with the average delivery time for Amazon Prime orders now two days or less in many
regions. Finally, Amazon's inventory turnover has remained consistently high, indicating that the
Amazon has been successful in delivering on its mission by prioritizing customer service
and investing in technology and innovation. The company's operational results have been closely
linked to its overall strategy, and its success is reflected in both financial and non-financial
metrics. Amazon's strong performance across a range of metrics demonstrates the effectiveness
Change management
In terms of change management, both Jeff Bezos and Andy Jassy have demonstrated their
abilities to manage change effectively in Amazon.Jeff Bezos has a track record of being a
disruptive innovator, constantly pushing the boundaries and challenging traditional ways of
doing things. He has been instrumental in transforming Amazon from an online bookstore into a
global e-commerce giant, expanding its product offerings and establishing new business models.
Bezos has shown a willingness to take calculated risks, such as investing heavily in infrastructure
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and logistics to support the company's growth, and entering new markets like cloud computing
and AI.
Bezos, he has been willing to take risks and make big bets on new business initiatives,
even when there is no clear path to success. This willingness to experiment and push boundaries
has been a key driver of Amazon's success, as it has allowed the company to stay ahead of the
curve and continue to innovate in new areas. For example, Amazon's move into cloud computing
with Amazon Web Services was a major change that Bezos championed, and it has become one
of the company's most successful businesses.He has been able to keep Amazon ahead of the
curve by anticipating market trends and investing in new technologies and services, such as the
One notable example of Bezos' effective change management is his "Day 1" philosophy,
which encourages Amazon employees to remain innovative and agile, as if it were their first day
on the job. This mindset has helped the company stay competitive and relevant in an ever-
changing business landscape. Additionally, Bezos has been able to successfully pivot the
company's focus when necessary, such as when he shifted Amazon's attention from books to
other retail categories, or when he transitioned the company's strategy from profitability to
growth.
Andy Jassy, on the other hand, has also demonstrated his ability to manage change
effectively in his role as CEO of Amazon Web Services (AWS). Under his leadership, AWS has
grown into one of the largest cloud computing providers in the world, and has expanded its
offerings beyond basic infrastructure to include a range of innovative products and services.
Jassy is known for his customer-centric approach, and has prioritized the needs of AWS
One example of Jassy's effective change management is his focus on diversifying AWS's
customer base. Rather than relying solely on large enterprise clients, Jassy has made a concerted
effort to attract small and medium-sized businesses to AWS by offering affordable and
customizable solutions. Additionally, Jassy has shown a willingness to pivot AWS's strategy
when necessary, such as when he shifted the company's focus from private data centers to the
public cloud.
Overall, both Bezos and Jassy have proven to be effective change managers in their
respective roles at Amazon. They have demonstrated a willingness to take calculated risks, pivot
their strategies when necessary, and prioritize the needs of their customers. Their ability to
manage change effectively has been a key factor in Amazon's success as a company. How
effectively have Bezos and Jassy each managed change? Support your conclusions with the
evidence gathered.
Summary
In conclusion, the analysis of the case study highlights several differences between Jeff
Bezos' and Andy Jassy's management and leadership styles. Bezos is known for his intense focus
on customer satisfaction, his relentless drive for innovation, and his hands-on approach to
leadership. He is a visionary leader who is willing to take risks and experiment with new ideas.
Jassy, on the other hand, is known for his expertise in cloud computing, his ability to build strong
Both Bezos and Jassy have been effective in managing change at Amazon, but they have
different styles. Bezos is more of a "disruptive" leader who is willing to take risks and make bold
moves to shake up the status quo. Jassy, on the other hand, is more of a "transformational" leader
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who works collaboratively with others to bring about change. Bezos was known for his focus on
innovation and long-term vision, while Jassy is more focused on maximizing profitability in the
short term.
Based on the analysis of Bezos’ and Jassy’s management and leadership styles, it is
evident that successful leadership requires a combination of technical expertise, strategic vision,
and effective communication skills. Both leaders have demonstrated their ability to drive
innovation and growth, but their styles differ in terms of their approach to change management
and communication.
To achieve organizational success, a leader must have a clear vision and the ability to
communicate it effectively to their team. They must also possess the technical expertise and
experience required to make informed decisions and manage complex operations. In addition, a
successful leader must be adaptable and capable of managing change effectively, whether that
Effective communication skills are also essential for leadership success. A leader must be
able to articulate their vision clearly and inspire their team to work towards a common goal.
They must also be able to communicate effectively with stakeholders, including customers,
effective communication skills, and the ability to manage change effectively. As businesses
continue to evolve and adapt to changing market conditions, it is critical that leaders possess
these skills to ensure long-term success. Effective leaders must possess a wide range of
competencies. These include strong communication skills, the ability to build and lead high-
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performing teams, strategic thinking and decision-making skills, the ability to adapt to change,
and knowledge, including strategic thinking, innovation, the ability to manage change, and
effective communication and collaboration with a team. A leader must also have a deep
understanding of the industry and market trends, as well as the ability to adapt to new
technologies and business models. Ultimately, the success of a leader depends on their ability
to inspire and motivate their team, make tough decisions, and achieve the company's goals.
Team Management
In order to improve as a team player, it's important to reflect on the experience of
working in a team, which may be both thrilling and hard. We encountered a number of
difficulties while working on this project, including competing deadlines and workloads, poor
team meetings, clear expectations, and open evaluation. We also made sure that each team
member knew their part in the project's success by clearly defining their roles and
responsibilities.
When disagreements and difficulties happened during the project, our team came together
to find solutions. To ensure that everyone is on the same page and that everyone's perspectives
Overall, working in this team taught us valuable lessons that would be helpful in our own
management careers. We learned that effective communication, clear roles and responsibilities,
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and adaptability are essential to team success. Additionally, we learned the importance of
flexibility and the ability to adjust to unexpected changes while maintaining a positive attitude
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