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Establishing organizational directionshould be the primary objective of any organization (Dobbs, 2006).So, in this paper, we will address some of the key factors inestablishing the organizational direction of our chosen organization(Amazon). This paper is exclusively prepared for the Amazon Board ofDirectors.
Amazon Inc.’sorganizational structure is extensive. It allows the corporation tohave a strong control over its worldwide e-commerce and onlineoperations (Panagiotelis, Smith, & Danaher, 2014). For example,Amazon’s commercial structure determines how managers influence andmaintain the operative activities in several areas of business.
Amazon uses aparticular growth strategy called “cost leadership” to achievecompetitive advantage. The main objective of this competitivestrategy is to minimize the operational costs (Panagiotelis, Smith, &Danaher, 2014). When it comes to differentiation, the organizationuses networking technologies and advanced computing, which maximizeits operational productivity, thus, minimizing overall costs.Moreover, a wide range of products and services are offered by thecompany to uphold its constant growth.
Amazon`smanagement approach is simple and straight forward. The mainobjective is to increase site traffic and it is done by onlinepromotional advertising and public relation activities. Theorganization`s corporate culture is very competitive. Every quarter,the team members and employees are ranked against each other on thebasis of work efficiency (Spector, 2011). This increases theorganization`s productivity and influences the fast growth ofproduction and other business activities. Employees are given theopportunity to evaluate their own work on a monthly basis. Also,Amazon maintains an organizational culture that allows employees todirectly interact with the top executives (Spector, 2011). So, thisgenerates employee satisfaction.
These strategies or factors are thekeys to establishing an organizational direction of Amazon. Thesestrategies led the company to be the number one e-commerce site inthe world, and surely it will lead them to future successes as well(Spector, 2011).
Dobbs, R. (2006).Building the healthy corporation (organizational growth). StrategicDirection,
Panagiotelis, A.,Smith, M., & Danaher, P. (2014). From Amazon to Apple: ModelingOnline
RetailSales, Purchase Incidence, and Visit Behavior. Journal Of Business& Economic Statistics, 32(1), 14-29.http://dx.doi.org/10.1080/07350015.2013.835729
Spector, R. (2011).Amazon.com (1st ed.). New York: HarperBusiness.