Amazon's Growth Strategies Analysis

Introduction

Organisational culture and human resource management strategic planning are the critical success factors for the organisation to achieve future growth and enhance their operational activities in the market (Noe et al., 2017).

The aim of the report is to acknowledge the purpose, organisational activities and human resource management planning of the organisation Amazon to understand the tactics of the firm to achieve sustainable growth and fulfil its purpose and goals.

Amazon is an American technology company which focuses on technology enhancement for serving the customer’s efficiently.

The company focuses on e-commerce, cloud computing and technological advancement for achieving future sustainable growth (Amazon, 2019a).

In the last year 2018, the company increased their revenue which was $232.887 billion (Amazon, 2019c).

Total numbers of employees in the company are more than 647500 (Amazon, 2019d).

1 Understanding the purpose of an organisation and its operating environment

1.1 Describing the purpose and goals of an organisation

Purpose:

The purpose of the organisation is o deliver high quality products and efficient services to wide range of customers by ensuring explosive growth and e-commerce domination.

Goals:

To strengthen their customer’s base

To reduce operational cost for enabling to minimise the price of the products and services

To enhance technological advancement and innovation

To become customer centric organisation where the customers can choose the products online at lowest possible price

To create values for the customer by improving the activities and creativity of the online page of the company

The company Amazon focuses on creating values for a wide range of customers by maintaining products diversification, where the consumers can choose the products and services that they require as per their choice and preferences among a wide variety of products on the website o the company.

The company also aims at reducing operational cost of the operational activities of the organisation so that it is possible for the organisation to deliver quality product and services at lower price that the customers can afford.

1.2 Describing the products, services and customers of an organisation

Products:

Amazon echo

Amazon fire OS

Amazon Kindle

Amazon Fire TV

Amazon Fire

Services:

Amazon Alexa

Amazon App-store

Amazon music

Amazon prime video

Amazon web services

Amazon Alexa

The organisation focuses on the quality products and efficient services with continuous technological innovation and creativity, where the organisation is successful in creating values for a wide range of customers successfully by providing the quality products and efficient services which match the expectations of the customers (Amazon, 2019b).

1.3 Analysing how external factors impact on the business activities of an organisation

International trade growth and increasing foreign investment

Increasing the use of internet among the customers

Growth rate in internet subscribers

Currency influence

Global warming

Technological advancement

Innovation and high speed internet service in media application

Increasing cloud storage and cloud computing activities

Appropriate domestic and international laws in e-commerce

The internet growth and increasing numbers if people using online e-commerce activities are the major external factors that influence the leader of Amazon to expand their business across the globe and utilise latest innovative technology for more creativity and service the customers uniquely.

The international rules and regulations in e-commerce, protection of online buyers through data protection Act 1998 and copyrights and intellectual property rights are appropriate for running the business ethically and establish the brand in international e-commerce industry.

2 Understanding the structure, culture and functions of an organisation

2.1 Describing the structure of an organisation and the functions within it

As per the organisational structure, the functions are,

Financial administrative function for reallocating the financial resources and management of cash flows

Customer management department that facilitates service excellence to satisfy the customers

Human resource departments focusing on managing the employees, staff and distributors for running the organisational activities proficiently

Digital management for maintaining the website and handling the customers

International retail department managing the quality products or service the customers proficiently

Legal administrative department managing all the rules of online business and e-payment for ethical operations

Web service management which is important for managing the web services and service he customers through enhancing their online efficiency Amazon, 2019e).

2.2 Explaining how the different functions work together to optimise performance

The deportments of the organisation are,

Financial administrative

Human resource departments

Customer management

Digital management

International retail department

Legal administrative

Web service management

The above mentioned departments of Amazon are effective to support the organisational operational activities, where the proficient workforce, managers and leaders are able to manage the customers.

The managers are efficient to handle the staff, employees and front line employee to motivate them for performing better (Amazon, 2019f).

The financial department is crucial to manage financial activities, transfer of running and organisational resources.

The engineers are efficient for innovation and creativity by handling their website and online services.

The corporate departments are managing all the operations and monitoring the organisational performance as a whole.

2.3 Explaining how the culture of an organisation affects its operations

Amazon’s distinct culture fosters performance drive environment

Cooperation and communication are the important factors to create suitable environment to work as a team

Sharing knowledge and experience to each other further influence the team members to maximise their performance by ensuring continuous improving customer’s experience.

The organisation is efficient to manage the organisational culture where diversity and internal conflicts can be managed well by the CEO and the managers. Providing suitable culture, flexibility at work and freedom to the employees are effective to improve cooperation and enhancing communication among the team members. The employees are trustworthy and there is strong bonding among the staff where they can rely on each other while performing. This in turn helps to promote positive organisational culture to enhance sustainable future growth (Amazon, 2019b).

3 Understanding how HR/L&D activities support an organisation

3.1 Describing how HR or L&D activities support an organisation’s strategy

The activities of human resource department are,

Providing monetary rewards such as,

Performance related pay,

Overtime bonus

Structured salary

Incentive for high performance

The non-monetary rewards to the employees are,

Providing training and development program

Health and safety at workplace

Flexibility to work and freedom

Positive cooperation and communication

Sense of achievement at workplace

The above mentioned human resource activities are effective for the organisation Amazon to support the organisational strategic planning where through the human resource management, the managers try to create values for the employees and retain them for long run. The activities motivate the staff to perform efficiently and achieve future success in the organisation. The scope for personal and professionals development through training and develop program further influence staff to follow the organisational strategy of innovation and creative e-commerce activities to fulfil the aims ad objectives of the firm (Bratton and Gold, 2017).

3.2 Explaining the role of HR or L&D professionals in supporting line managers and their staff

The role of human resource activities is crucial to support the line managers and staff in the organisation through both the monetary and non-monetary rewards, where the employees become satisfied at the workplace ad the CEO is able to create values for them.

The monetary rewards to the employees are beneficial to fulfil their basic needs where they are motivated to perform better n the company to achieve the organisational success.

The non-monetary rewards are also effective, where the employees feel valued and the CEO is efficient to manage the workforce with freedom and flexibility to work at the workplace.

The health and safety of the employees is another component, which creates values for the employees, where the CEO of Amazon provides insurance to the employees for any accidental incident at workplace which is also beneficial to support the line managers and their staff at the workplace.

The CEO of the company is hereby beneficial to maximise values for all the staff members and line managers at the organisation where they can retain the workforce for long run by delivering monetary and nonmonetary rewards to all the staff members. The above mentioned activities in the human resource management are effective to motivate the front line managers and staff to work as a team and achieve future success.

They are also influenced by the organisational culture and ethical practice where the CEO focuses on building strong relation with all the employees and motivate them for performing better in near future to become a successful brand by ensuring e-commerce dominance in the global e-commerce industry.

Conclusion

It can be concluded that, the organisation Amazon is efficient to support the employees and managers of the firm to influence and motivate them to perform with their full potential and capabilities.

The organisational structure and different departments are effective to manage their functions in order to fulfil its aims and objectives.

Through the organisational strategic planning, human resource management and organisational culture, the company Amazon is efficient to support the operational activities and motivate all the staff members to collaborate and work as a partnership basis for achieving sustainable growth in the global e-commerce industry.

Reference List

Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. London: Palgrave.

Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.