Amazon Incorporated Management Review Report

1 Executive Summary

Amazon Incorporated is a retailer and sells products online. Amazon Incorporated is not only online retailer but also grow up to a technology company. This company has four main functions of management that are planning, organizing, leading and controlling. Planning is necessary to Amazon Incorporated. Clear images of culture organization may help them to set goals efficiently and help Amazon Incorporated to understand what their future aims should consist of. (Susan, n.d.). Putting more efforts on organizing can help Amazon to control their employees and consumers. Using useful leadership style enable leader to incentive employees potential creativity. Successful leadership can intellectually oriented to the future. How Amazon Incorporated control them is also essential because necessary control on environment and cost will reduce the financial risk.  

1. An overview of this company

Amazon.com incorporated is an international e-commerce website for consumers and sellers which has become the most valuable retailer in the United State in 2015. (Jodi & David, 2015) Amazon.com started selling online bookstores, later varying to sell DVDs, electronics, toys etc. Amazon also has international shipping to different countries for some products. (Amazon.com, 2015) The global headquarters are in Luxembourg City, Seattle, Washington. Software development center is subsidiaries offices where is located in Seattle. (Amazon, 2015) Amazon Incorporated has one significant service which is consumer can receive two day free shipping if they cost a few annual fee. Kindle was famous by Amazon Incorporated. People can use it to download eBooks, which give more opportunities for fan of books to read book no matter where they are.

3 Governance

The Board of Director, which has responsibility to shareowners, has duty to control and orientation of the company. Building long-term shareowner is the board of director’s goal. The Board of Director of Amazon.com incorporated are consist of majority of directors which are Jeffrey P. Bezos, Tom A. Alberg, John Seely Brown, William B. (Bing) Gordon, Jamie S. Gorelick, Judith A. McGrath, Alain Monié, Jonathan J. Rubinstein, Thomas O. Ryder, and Patricia Q. Stonesifer. （Amazon.com, 2015）The Audit Committee is a committee of the Board of Director, which can assist the Board in overseeing and supervising the accounting and finical report. (Audit Committee Charter of the Board of Directors of Information Analysis Incorporated, n.d.) Amazon.com Incorporated have Audit Committee, Compensation Committee and the Nominating and Corporate Governance Committee, which can lead the shareowner under the oversight of the Board.

1. Ethics and Social responsibility

Amazon incorporated has been named to the world’s third most admired company in CNN’s 2012. (Simon, 2014) However, it is not an ethical company because Amazon incorporated cannot provide favorable working conditions for employees. (Elliot, 2015) Amazon can only give a competitive environment for their staff. Elliot said that “According to the Times account, many employees indicate that they work well beyond the standard 40-hour week, often reaching as many as 70 or 80 hours.” (Elliot, 2015) Employees even cannot spend time with family members in the evening and weekends, which cause employees their work-life balance. (Elliot, 2015) Furthermore, boss will criticize employees if they are not working during vacations or replying email before midnight. (Elliot, 2015) Amazon Incorporated does not have social responsibility for their employees especially Amazon know that employees are complain poor treatment. (Blair, 2015) Amazon does not respond to this question until now.

5 Globalization

Going global is a useful pathway to be success for Amazon Incorporated. Amazon Incorporated are able to increase sales, gain exposure and grow reputation by globalization. (Rachel, 2015) Most people may think globalization bring more income for Amazon Incorporated; however, it is not. According to Meagan and Angelo thought, “Amazon’s net profit margin was 2.8 percent. By September 2011, that number fell to 0.6 percent. A year later, it was losing $274 million on net sales of $13.8 billion. And in the latest quarter, ended Sept. 30, the massive e-tailer reported a $41 million loss on $17 billion in sales”. On the other hand, Amazon Prime, which offers consumers free two-day shipping for one-time annual fee of $79, achieve more consumers to choose Amazon Incorporated in variety countries. (Meagan & Angelo) Because of Amazon Prime, an increasing number of people would like to use Amazon and providing value for Amazon based on globalization. International shipping provides more advantages to Amazon Incorporated, which helps Amazon to deliver products more complete. Consumers also enable to shop USA amazon and then receive in China.

1. Organization

            Amazon.com Incorporated does not organized well because their employees’ layoffs rapidly or even threaten strike senior employees. (How Amazon Crushed the Union Movement, 2014) Amazon.com Incorporated has divisional structure. (Fabrice Guillaume's e-Portfolio, n.d.). Department heads support different departments for different products, which provide more benefits for them to monitor the organization as well as supervise the organization’s culture. Amazon’s organizational structure consist of CEO, founder Jeffery Bezos and an eight number board of directors. Besides, the Chief Technology Officer are followed by eight departments which are Business Development, Ecommerce Platform, International Retail, North America Retail, Web Services, Digital Media, Legal & Secretary, and Kindle. (Fabrice Guillaume's e-Portfolio, n.d.). Amazon Incorporated has positive organizational culture because their employee can share their attitudes. Therefore, improving worker involvement is quite useful for Amazon Incorporated to strength the culture of organization. Amazon Incorporated also explores innovation and social responsibility, which can provide core value to this company. (Schermerhorn & Wright, 2013, p. 312)

1. Planning

Staying ahead of the competition and becoming better is the aim for people or organization to set planning. Amazon Incorporated conduct the innovation is the main strategic planning. Amazon found that sales-and-service model was not useful strategic because a large number of sellers receive commissions from other companies sales. (Mark, 2010) Therefore, Amazon finds out a new potential growth is the IT community, which should be new customer for them. This planning is quite successes because Amazon create new business model that help them to launched new web service platform. (Mark, 2010) This is innovation to Amazon Incorporated. (Schermerhorn & Wright, 2013, p. 171) Amazon Incorporated truly set long-rang plans. Jeff Bezos states, “We have to made decisions and weigh tradeoffs differently than some companies.” Because of long-range planning, the revenue increased 44 percent to almost 11 billion which growth 80 percent before one year ago. (James, 2011) Amazon opens 17 new fulfillment centers, which help them to achieve their long-range goal. Thus, Amazon Company willing to plant seeds in five to seven years to complete goals. (James, 2011)