Amazon Analysis - Case Study Example

Amazon Company Name: Institution: Course: Date: Table of Contents Table of Contents 1 Executive summary 3 Introduction 4 Overview of Amazon Company 4 Globalization of Amazon Company 6 Business strategy 6 Diversification of strategy 7 Effective management of the company’s relationship with its customers 8 Corporate social responsibility 8 Impact of globalization on the management of Amazon employees 10 Diversity in recruitments strategy 10 Professional development 11 Additional emphasis on training 13 Managing laws across different jurisdictions 14 Business strategy pursed by Amazon on the international platform 15 Personalization of the site 15 Employee and company relationship 17 Conclusion 19 Recommendations 19 References 20 Executive summary Amazon Company is the internet’s leading book, video and music retailer that began its virtual operations in 1995. Ever since its establishment the company has been able to fully operationalize its activities through the internet. Being a business that operates on the online platform it is relatively easier for the company to reach out to customers who are separated by different geographical boundaries. This is because the company offers the customers services through their interaction with the internet. The realization that for an improvement of its profit margin, the company will have to realize some form of improvement in terms of its customer base, the decision to globalize its operations was in line with the company’s business strategy. Other than professional development initiatives, Amazon Company, through its human resource department has been able to lay more emphasis on the need for additional training to improve on the levels of expertise among the employees. This is because globalization of operations requires some level of improvement in the amount of work that the employees are able to execute in the process of satisfying additional demands by the customers. Employee incentives play a major role in motivating the employees to realize the objectives of the company. , there is need for the company to consider the incorporation and training of more employees on matter related to professional competence Amazon Company Introduction The Amazon Company which is popular as the largest internet retailer on the global platform defines itself, its lines of supply in terms of sale of products, fulfilments of customer desires, digital content subscription, advertisement publishing and co-branded. Using these variables it is possible to understand the operations of Amazon Company from the perspective of online retail business, kindle ecosystem and internet services. This report will provide an in-depth analysis of the contributing factors to the globalization of the company and the impact of globalization and to the management of the company. Furthermore, the report will also assess the type of business strategy developed by the Amazon Company. Successful analysis of these aspects will require an in-depth study of the company’s mission and vision statements in relation to the ability of the company to intergrate different aspects related to international human resource management policies and practices. Through a critical analysis of these factors in relation to their contexts, the paper will present facts and the international human resource management policies and practices of the Amazon Company. Overview of Amazon Company Amazon Company is the internet’s leading book, video and music retailer that began its virtual operations in 1995. Ever since its establishment the company has been able to fully operationalize its activities through the internet. The company si popular and is widely cited commerce sites on the internet (Borges 2009, p. 100). The company offers more than 4 million books, music and video compact discs and computer games among other titles. The desire by the management to improve on the quality of its services and its market share has contributed to the decision by the company to globalize its internet operations. As a result, the company is currently one of the leaders in the provision of high value and quality customer services through superior shopping experience (Condrey 2010, p. 32). Since the beginning of the 21st century the company has been able to prove its position as a technology leader. This has been through teh development of different electronic commerce innovations which include the I-Click ordering technique, easy to use browse and search features, personalized shopping services and provision of relevant and up to date security measures when shopping at amazon.com (Cascio & John 2012, p. 12). One way by which the company has been able to ensure the provision of secure and effective services is through the incorporation of a simple ordering system which protects credit card transactions while encouraging email communication couple with direct shipping of products on an international platform (Condrey 2010, p. 32). The company, through its management holds the belief that its ability to engage in the sale of books, videos and music and other products over the internet offers an attractive benefit to customers. These include greater and extensive selection of variety of materials, convenience in terms of acquisition of the desired materials, personalization and competitive pricing. Customers who access the company through its website, amazon.com, can also access additional services such as purchasing gift certificate and engage in targeted searches. The company has been able to use its website in the promotion of brand loyalty and repeated purchase. This has been through its ability to provide an inviting experience which encourages its customers to return more frequently and interact with other customers. This interaction between customers has become one of the main marketing tools for the company through the virtual platform. Globalization of Amazon Company Business strategy The decision by the Amazon Company to globalize its operations is based on the desire to realize the objectives of the company to different stakeholders. In terms of its business strategy, the main objective of the company is to become the ultimate destination and source of buying, discovering and finding any product or service that is available on the online platform (Cooper & Burke 2007, 21). The company endeavours to continue enhancing its brand and customer base by improving on the electronic expertise of its employees. This is aimed at the creation of and customer preferred online destination on the global platform. Being a business that operates on the online platform it is relatively easier for the company to reach out to customers who are separated by different geographical boundaries. This is because the company offers the customers services through their interaction with the internet (Collings et al 2015, p. 55). The realization that for an improvement of its profit margin, the company will have to realize some form of improvement in terms of its customer base, the decision to globalize its operations was in line with the company’s business strategy. Other than providing the best and easy to access services, it is through an increase in its customer traffic tha the company has been able to experience an undisputed growth in term of its sales and market share. Diversification of strategy The company in the process of globalizing its operations has been able to open various revenue streams. This has been necessitated by its ability to involve its employees in the formulation and implementation of different strategies that will ensure some growth in the revenue that the company receives from its operations (Cascio et al 2012, p. 12). One way by which the company through its human resource management has been able to improve in terms of diversity of strategy is by sourcing manpower and expertise from different localities of the target customers. Employees from diverse cultures are involved in the formulation of different strategies to ensure tha they target the right and most profitable customers to the company. Amazon Company is currently focused on matters related to the globalization of its tablet, kindle. The expansion of the target market arises from its popularity in the US market and the need to improve on its distribution of the global platform. The desire to open more revenue stream explains the decision to launch its kindle stores in India, China, Mexico and Brazil. Other than the kindle stress in the four international markets, the company has also been able to launch a new generation of the kindle fire which is assumed to operate on enhanced capabilities compared to the preceding devices. Amazon Company engages in the diversification of its strategy on the basis of the understanding that its customers emanate from different regions and this explains the need to ensure that it provides variety of products and diversified services to ensure the satisfaction of the dynamic desires of those targeted (Cascio et al 2012, p. 15). Effective management of the company’s relationship with its customers Amazon operates on the understanding that its ability to dominate the products and service market is based on the strength of its relationship with the customers. Reaching out to numerous customers requires the company to establish itself as a global brand that provides quality and valuable products and services. Through such publicity it becomes relatively easier for the company to attract more customers and improve in terms of the quantity of supply (Collings et al 2015, p. 58). The management of all aspects of the relationship between a company and its customers is founded on the understanding that it is through effective and relevant training of employees that the most appropriate customer service can be ensured (Collings et al 2015, p. 60). Amazon Company is recognized for the quality of information that it maintains concerning its customers, the services it offers and its ability to employees the most qualified personnel to act on customer desires. through the development of the most effective and appropriate competitive advantage the company attempts to serve that which is believed as the unique needs of every customer. One of the strongest reputations of the company is in its ability to deliver services as expected by the target customers Corporate social responsibility One way by which any company ensure that it experiences any form of growth in its operations is by engaging in non-profit making but reputation building initiatives in a specific locality. Corporate social responsibility therefore plays an important role in improving the ability of a company to improve in terms of sales and the profit margin (Banerjee 2007, p. 34). One way by which the company has been able to boost its reputation through corporate social responsibility is its advocacy for paperless transactions. This is integrated in its online activities. Almost all the transactions that the company conducts are performed on the company’s website and the web related platform (Urip 2013, p. 49). Through such operations, Amazon has been able to demonstrate to its customers the benefits of minimizing the use of paper in relation to environmental protection (Bueble 2009, p. 112). The company has also been involved in other environmental sustainability initiatives. These include the company’s advocacy against climate change and global warming in highly industrialized societies. This has been through the Greenpeace campaign which requires companies to provide a specific percentage of profits towards environmental protection initiatives (Crane et al 2007, p. 42). In addition, the company has also been able to ensure tha these initiatives are implemented by providing training to its employees and customers on the ways and the benefits of environmental protection. This has been performed as a strategy aimed at sensitizing the public on different aspects related to environmental sustainability (Jackson 2012, p. 22). The popularity of the company on the global platform is also forced on the understanding that it has been vocal on different social issues affecting different societies. Amazon has been vocal on matters related to gender discrimination and gender violence (. This it has been able to demonstrate by ensuring gender sensitivity when hiring members of its staff. In addition, the company has also been able to contribute to different charity programs in Africa, Asia and in other locations in an attempt to address matters related to gender bias and violence (Korine et al 2012, p. 55). Impact of globalization on the management of Amazon employees Globalization is one way by which companies such as Amazon have been able to intergrate its operations, processes and strategies into varieties of cultural orientations, services and ideas. Emphasis on diversity, which is one of the main aims of globalization, has impacted on the way Amazon Company manages its employees due to the understanding that it is one way by which any organization can develop highly qualified, talented and experienced pool of employees (Crane et al 2007, p. 30). Diversity in recruitments strategy The decision by Amazon Company to expand its services to different countries on the global platform has necessitated the need to diversify its recruitment and selection process. This is because through globalization, the company has been able to expand its operations and ability to communicate with customers from diverse cultures, social backgrounds and languages (Buhler 2010, p. 32). One way by which the management has been able to ensure that effective communication is enhanced by hiring its employees from diverse backgrounds (Kusluvan 2013, p. 80). This is one way through which the company has been able to recognize the essence of staffing its offices in different localities with people who customers can relate to (Clutterbuck 2003, p. 87). Through such communication the company has been able to provide instant and relevant feedback to customer desires while at the same time ensuring that the company improves in terms of the establishment of an effective competitive advantage (Dowling et al 2011, p. 54). The incorporation of diversity as part of the company’s recruitment policy on the international market has been perceived as one way through which the company has been able to attract talents (Lewis 2010, p. 30). In different societies, multinational corporations such as Amazon are experiencing a reduction in terms of the availability of highly talented personnel as part of their workforce (Clutterbuck 2003, p. 90). The decision to globalize was founded on the idea that it would be easier to attract personnel from different societies hence improving on the ability of the company to have a team of diverse people who have the capacity of contributing to arrange of ideas and develop some level of influence in the operations of the company (Lussier 2012, p. 76). Diversification of the recruitment and the selection process at Amazon is therefore one of the main advantages of globalization of the company’s operations (Epstein 2014, p. 12). Professional development Every employee in any organizations operates on the desire of realizing specific career goals. Through globalization of its operations, it has become possible for the human resource management to develop plans and strategies on how to help employees in the realization of their career goals (Deb 2006, p. 67). Professional development at Amazon Company has become a possibility due to the ability of the company to provide its employees with resources that facilitate further studies initiatives. Furthermore, it is through globalization that the company has been able to send it employees to conferences and workshops indifferent countries (Machado 2015, p. 45). These activities are considerd as professional development initiatives since they help the employees in networking and in the improvement of their portfolios as professionals (Deb 2006, p. 77). In other situations, the company has been able to ensure professional development of its employees through exchange and transfer programs from one store to another. This improves on the experience of the employees and their levels of technical skills (Marchington & Adrian 2011, p. 54). Professional development is considered as an important initiative by Amazon Company since it facilitates the creation of a win-win situation. The employees are able to develop a feeling that the organization, through the human resource department is concerned with the provision of a range of skills and competencies (Dessler 2011, p. 111). Similarly, the organization benefits from additional skills, connections and expiries acquired by employees to improve on the ability of the company to experience a higher market share and profit margin. This makes it important for companies to make informed choices on the best individuals to engage in such professional development programs (McDowell 2014, p. 26). Such a process is often informed by the desire by employees to not only ensure personal or professional development but also in their ability to use the skills acquired in the realization of organizational goals and objectives (Epstein 2014, p. 18). The decision on the employees to transfer or to involve in exchange programs is often founded on the potential that the employees have been able to demonstrate in different areas of expertise. This helps the organization to determine the best employees to consider for the available opportunities in relation to the future of the organisation (Perkins 2011, p. 66). Additional emphasis on training Other than professional development initiatives, Amazon Company, through its human resource department has been able to lay more emphasis on the need for additional training to improve on the levels of expertise among the employees. This is because globalization of operations requires some level of improvement in the amount of work that the employees are able to execute in the process of satisfying additional demands by the customers (Dessler 2011, p. 115). Training is also considered a necessity by the organization especially on new recruits. This is because despite the diversification of cultures, Amazon Company also operates on its own cultural connotations (Schermerhorn 2010, p. 34). It is a requirement for every employee to understand organizational expectations and their job descriptions. This explains why unlike professional development, training of employees at Amazon is focused on the development of professional competencies of different groups of employees within the company (Epstein 2014, p. 36). The company for instance has been able to host language classes for sales department. this is considers as a way of equipping those involved in constant face to face of virtual communication with customers from different cultural backgrounds (Sengupta 2011, p. 57). Through such operations it is has become possible for the organization through its management to give its communication and sales staff an edge in the process of marketing on behalf of the organization (Dessler 2011, p. 118). Other trainings that the company has been able to organize include teaching its employees on the use of new softwares as a way of improving on their knowledge and ability to execute different activities aimed at realizing the goals and objectives of the company on a global platform (Epstein 2014, p. 37). More emphasis on training is aimed at providing the company with some competitive edge on the global market. The competitive advantage is developed by embracing different levels of diversity among employees and the need to harmonize these diversities with the objectives of the company (Shuen 2008, p. 34). Managing laws across different jurisdictions An additional impact of globalization on the management of employees at Amazon revolves around the need by the company to develop an understanding and apply laws of different jurisdiction to the business (Secord 2013, p. 43). One way by which Amazon has been able to operate in accordance with this expectation is by ensuring collaboration between the human resource and the legal department of the organization (Dessler 2011, p. 118). These departments are often considerd instrumental in the explanation of different laws that define employment. Such an understanding enables the harmonization of the expectations of the company together with the labour laws. In the United States for instance, the federal government is in charge of developing tax and labour laws that every company operating in the country must comply with. Other than the federal laws there are also local and regional laws that affect the operation of companies in different countries or states (Silzer & Dowell 2009, p. 40). Amazon Company has been able to demonstrate its compliance to different laws in different jurisdictions by imposing value added tax on its goods where it is deemed necessary by the law. In terms of management of employees, the company operations in different counters are defined by the existing labour laws (Fegley & Lockwood 2012, p. 34). These help in the determination of the requirements on the minimum wage, working hours and tax allowances among other conditions (Werther & Chandler. 2011, p. 90). The demonstration of high respect to the laws is considerd vital in the operations of the organization because any form of breach on the laws can have an impact on the financial wellbeing and the reputation of the company on the international platform (Stahl et al 2012, p. 54). The reputation of the organization is of essence especially when handling matter related to the working conditions that employees are subjected to. Amazon Company has been able to demonstrate high levels of governance on matters related to employees due to the understanding that the satisfaction of these employees is integral in demonstrating the ability of the company to provide quality, relevant and timely products and services to the employees (Harzing et al 2011, p. 10). In addition, the organization has been able to demonstrate high levels of governance by allowing employees to form and join trade unions. These trade unions play the role of representative for the employees especially when negotiating with the human resource department matters related to lawful salaries and wages, employee working conditions and other associated rights of employees. It is relatively difficult for the company to harmonize all matters related to employee wellbeing due to the differences in terms of the labour laws that define employee rights (Stiglitz 2010, p. 44). Business strategy pursed by Amazon on the international platform Personalization of the site One strategy that Amazon has been able to use to ensure that it realizes its objectives are through the creation of personalized accounts for its customers. This is based on the understanding that every customer has different and unique needs that serve his or her interest (Tayeb 2011, p. 38). It is the responsibility of the company to identify the needs and the best approach that can be used in satisfying them (Fegley & Lockwood 2012, p. 37). In an attempt to try and satisfy these needs it has become vital for the company to diversify its products to meet the dynamic and diverse interests of the customers (Hitt et al 2010, p. 98). Amazon Company which was once associated with books, music and videos is currently in charge of supplying more than 20 million products majority of which are non-media related products. These include dresses, shoes, tennis rackets, drills, and any other products that human beings can receive through shipments (Grosse 2010, p. 50). The company is comparable to a store where customers can seek all the products that they desire at process that are deemed to be relatively affordable compared to other ways of acquiring the desire products. The desire to make the company a customer oriented has become one of the greatest business strategies that Amazon has been able to pursue. This strategy requires the company through its employees and the management to consider the demands and the desire of the customers in the process of developing any sales and marketing strategy (Fegley & Lockwood 2012, p. 34). One way by which Amazon has been able to materialize its operations using this strategy is by ensuring that its employees, especially those involved in constant interactions with customers are trained on the best customer service management practices (jioui 2010, p.12) The ability of the company to act in accordance with the desire of the customers is considered as a sign that the company integrates customer feedback and suggestions as part of its strategic planning (Harzing et al 2011, p. 18). Through such an initiative it is easier for customers to air their views concerning the quality and the type of service or products offered by the company. In addition, it is also easier for the company to ensure that the customers develop high levels of trust in the operations of the company in relation to not only fulfilling the desires of the business but also in addressing essential customer needs. The relevance of a customer service oriented company on the international platform is in its ability to use customer focus as a competitive advantage (Grosse 2010, p. 53). This approach to management of the company contributes to the possibility of building brand loyalty. Amazon has been able to build international loyalty to its brand due to its ability to ensure timely and relevant response to customer questions and demands (Hunt 2014, p. 45). In addition, it is through these activities that the company has been able to build a lasting reputation in the public domain. Loyal customers, to the products and services offered by the company, act as marketing platforms (Grosse 2010, p. 54). This is because they communicate the excellent services that the company offers and they refer more customers to the company hence not only ensuring an improvement in the company’s sales but also in the enhances its market share and customer base (Hume 1998, p. 14). Employee and company relationship Amazon Company operates on the understanding that the creation of safe and profitable working conditions for its employees is essential in the realization of company objectives. This explains why it is the responsibility of the company to devise measures that it can use in the promotion of employee wellbeing (Fegley & Lockwood 2012, p. 40). One of the ways by which the company has been able to provide effective compensation packages is through the development of an effective work-life balance (Thompson 2010, p. 43). This balance is aimed at ensuring that employees execute both work and non-work related responsibilities. It is through such deliberations that the company not only ensures the comfort of employees but also the ability of the organization to ensure timely realization of its goals and objectives (Aswathappa 2013, p. 23). One work-life balance approach tha the company uses as a global compensatory mechanism is the provision of paid leave days for its employees. This not only motivates the employees into the development of effective plans for the benefit of the organization, it also provides these employees with platform of developing plans aimed at personal growth (Flechl 2010, p. 31). By providing employees with sufficint time of addressing personal activities and work related activities, the organization celebrates one of the most enthusiastic and highly motivated workforces in the online business (Armstrong 2007, p. 45). The company operates on specified work hours for different employees. This means that are full and part time employees. Each of these employment contracts operate on the flexibility of employees. This can be used as in indication that the employees only work extra hours is if there are remunerations accompanying these additional hours (Flechl 2010, p. 32). This is also a way through which the company ensures that those employees who spend much of their time executing the goals and objectives of the organization are rewarded for their efforts. Such an approach is considered beneficial to the employees since it act as a motivating aspects in encouraging employees to set more time in realizing the objectives of the organization (Franks 2013, p. 28). The development of a pension plan for employees has been considerd as a motivating factor in relation to work-life balance. The company has been able to implement this approach to employee welfare in countries such as the US and in European countries where the laws demand for the existence of such activities. this pension scheme act as a guarantee to the employees that their wellbeing even after retirement will be relatively comfortable due to the availability of financial resources upon retirement (Flechl 2010, p. 33). Conclusion The Amazon Company which is popular as the largest internet retailer on the global platform defines itself, its lines of supply in terms of sale of products, fulfilments of customer desires, digital content subscription, advertisement publishing and co-branded. The desire by the management to improve on the quality of its services and its market share has contributed to the decision by the company to globalize its internet operations. As a result, the company is currently one of the leaders in the provision of high value and quality customer services through superior shopping experience. The desire to make the company a customer oriented has become one of the greatest business strategies that Amazon has been able to pursue. This strategy requires the company through its employees and the management to consider the demands and the desire of the customers in the process of developing any sales and marketing strategy. Recommendations In terms of employee training and professional development, there is need for the company to consider the incorporation and training of more employees on matter related to professional competence. This will help the company in boosting its competitive advantage on matters related to the execution of employee responsibilities in accordance with the diverse interests of customers. Employee incentives play a major role in motivating the employees to realize the objectives of the company. Other than the provision of better sales and wages, it is important for the company to provide more incentives such as team building activities to boost the abilities of the employees to put in more effort in their employment responsibilities. References Armstrong, Michael. 2007. A handbook of human resource management practice. London [u.a.]: Kogan Page. Aswathappa, K. 2013. Human resource management: text and cases. New Delhi: McGraw Hill Education. 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