Formal Business Report 2
Formal Business Report 2formal B
Overview
The world technology is growing at a very high speed and every company is looking for ways of adopting the latest version to remain relevant in the market. Organizations have developed a working culture that aims at retaining existing customers as well as attracting more potential ones. In 1995, Amazon came into existence when Jeff Bezos the CEO decided to start a company and stop capitalizing on the dot-com boom. From the day the business was launched, the owner has been building the brand through new technologies and management mechanisms. Amazon is now a pacesetter in the technology industry that has led the way from e-commerce, online gaming, e-readers to video streaming among other things (Galloway 2017).
Amazon is an online company selling a variety of goods from a host of technologies where there is an online interactive environment between the organization and customers.
Background
Amazon is an American multinational company providing services such as cloud computing, e-commerce, artificial intelligence and digital streaming all over the world. Through innovation, the company has been able to beat prominent organizations in the world offering the same services. Amazon has not yet arrived at a monopolistic level but with the current innovation and ever-growing customer base, such can be realized soon. Amazon is currently the world’s largest online marketplace which is trusted for efficiency and offering quality products to the customers.
From research, Amazon was found to be the second-largest private employer in the US with over 750,000 employees (Shevchenko 2020). Since the launching of Amazon, the company has entered into various agreements with governments and other private institutions with the main aim of satisfying their customers. In 2001, Amazon entered into an agreement worth $50 million per year with another US company to exclusively supply toys and other baby products, a deal that reaped heavily. In 2011, Amazon was again on the limelight when they signed another contract with DC Comics for management of digital rights which included green lantern, the sandman, and superman. This partnership led to the birth of well-known books such as Barnes and Noble.
Amazon has been a prominent giant in the market that was emulated by big companies such as Apple Inc. The latest deal agreed by Amazon is that of Apple Inc. in January 2019, which states only Apple authorized resellers can sell Apple products on Amazon.
Executive Summary
Purpose of the report
The purpose of this report is to review and analyze what other companies have done to prepare managers for a move after their companies decide to open branches in another country. Since Amazon is opening a branch in another country, the report will provide a detailed plan for selecting and training managers who will move to the new branch. It will examine effective mechanisms and competitive tools to ensure Amazon maintains its market leadership in the technology industry.
Goals and Objectives
The primary aim is to develop a comprehensive plan for selecting and training managers for the international expansion. The report will also analyze revenue sources from previous years, examine how revenues are utilized, and compare strategies with competitors like Apple, Microsoft, and Alphabet to adopt best practices for managerial preparation and organizational success.
Business Analysis
Amazon's success over the years is attributed to its effective management and innovation-driven culture. The company employs four unique performance management techniques:
- White Paper Process: Employees are encouraged to write questions or suggestions, emphasizing the company's vision, mission, and core values. This fosters a sense of ownership and responsibility among staff, facilitating growth and expansion.
- Google OKRs (Objectives and Key Results): Goals are collaboratively set by managers and employees, fostering alignment and accountability. Software tools are used to facilitate timely feedback and progress tracking.
- Customer-centric Culture: Amazon prioritizes customer needs through personalized interactions, efficient service, and loyalty programs that foster long-term relationships.
- Innovative Marketing Strategies: Amazon’s marketing includes email marketing campaigns, customer reviews and ratings systems, engaging videos showcasing company milestones, and loyalty programs.
These techniques collectively enable Amazon to remain at the forefront of the technology industry, supporting its international expansion plans through well-trained managerial staff.
Research Methodology
Amazon's representatives will analyze strategies implemented by companies such as Apple, Microsoft, and Alphabet in their managerial onboarding processes for international branches. Data will be gathered via online sources, including journals, company websites, and interviews with managers through questionnaires designed for this purpose. The collected data will be analyzed to identify effective practices that Amazon can adopt to ensure managerial readiness for the new international branch.
Analysis
The research indicates that companies like Apple, Microsoft, and Alphabet use similar management training paradigms emphasizing planning, organization, command, coordination, and control. Managers are trained to control operations, organize employees, command tasks, and coordinate activities to achieve organizational goals efficiently (Wagner 2017).
Management styles vary, but a democratic approach seems most suitable for Amazon's culture, fostering employee involvement and motivation (Smith et al., 2017). Such engagement encourages employees to feel valued, which directly translates into better customer service, especially in an online setting where invisible customers are served globally.
Amazon’s culture emphasizes employee satisfaction, innovation, and customer focus, leading to the company’s immense market capitalization and large customer base. Good management and management training are crucial to sustain this growth, especially as the company expands into new international markets.
Keys to Amazon’s Success and Lessons for Others
Keys to Success
- Innovation and continuous improvement in marketing strategies
- Implementing effective internal management processes such as white paper documentation and OKRs
- Fostering a corporate culture that emphasizes employee involvement and customer satisfaction
- Utilizing technology to streamline operations and customer interactions
Lessons for Other Companies
Other organizations aiming for global success should adopt similar management training practices, emphasizing democratic leadership, technological integration, and customer-centric strategies. They must prioritize innovation, foster employee engagement, and establish robust feedback mechanisms to thrive in competitive markets.
Conclusion and Recommendations
Amazon’s evolution from a small online bookseller to a global technology leader underlines the importance of innovation, strategic management, and customer focus. For successful international expansion, Amazon must select managers who are adaptable, innovative, and customer-oriented, equipped with the skills to lead diverse teams across cultures and markets.
It is recommended that Amazon implement comprehensive training programs based on the best practices observed in industry leaders, emphasizing democratic management styles, technological tool utilization, and fostering a corporate culture aligned with company values. Continual feedback and adaptation will be critical to maintain Amazon’s competitive edge in new international markets.
References
- Dolata, U. (2017). Apple, Amazon, Google, Facebook, Microsoft: Market concentration-competition-innovation strategies. Stuttgarter Beiträge zur Organisations-und Innovationsforschung, SOI Discussion Paper.
- Galloway, S. (2017). The four: the hidden DNA of Amazon, Apple, Facebook, and Google. Random House.
- Shevchenko, E. (2020). Amazon as a global sales channel for small and medium-size Finnish companies.
- Smith, A. D., Rupp, W. T., & Offodile, O. F. (2017). Amazon.com, Inc.: Retailing Giant to High-Tech Player?.
- Wagner, T. A. (2017). U.S. Patent No. 9,811,434. Washington, DC: U.S. Patent and Trademark Office.
- Weber, A., & Jones, A. (2016). Amazon Prime: The Ultimate Guide to Prime Amazon Membership and Internet Marketing.