MBA FPX 5006 Assessment 3 Strategy Implementation MBA-FPX5006 Business Strategy

 

Prof. Name:

Date

AFI Framework

• Analysis, Formulation, Implementation.
• Amazon VIRO Internal Environment Analysis
• Amazon Porter’s 5 Forces External Environment Analysis
• Amazon External Environment PESTEL Analysis

SWOT Analysis

Opportunities	Threats
Expanding global footprint in emerging markets	Government regulations
Expanding brick and mortar stores	Cybercrime
Creation of own product line	Increased competition
	Economic recession
	Policy constraints

Strengths	Weaknesses
Strong brand name & recognition	Low profit margin
Differentiation and innovation	Easily imitable business model
Go global, act local	Product flops and failures
Superior logistics and distribution	Employee strikes
Minimum pay raise to $15 per hour

Amazon Business Strategy

Differentiation:

• Customer Centric
• Value Position

Amazon Corporate Strategy

Diversification:

• Products: From books to virtually anything
• Business Units: AWA, Whole Foods, Prime
• Service: Free music, free movies, free two-day shipping
• Geographic/Globalization

Integration:

• Logistics and delivery: Vertical integration, forward integration
• Amazon Web Service: Vertical integration, backward integration
• Prime Video original content: Vertical integration, backward integration

Organizational Structure and Governance

Amazon’s Organizational Structure:

• Core components of corporate structure
• Multidivisional organizational structure
  • Hierarchical, multi-divisional organizational structure

Corporate Governance:

• Four P’s of corporate governance
• Principles of corporate governance
• CEO vs Chairperson of the board
  • CEO/board chairperson duality

Ethical Responsibility

Amazon’s Code of Business Conduct and Ethics:

• Global ethics:
  • Climate pledge
  • Sustainable operations
  • Supply chain
  • Packaging
• Ethical treatment of employees:
  • $15 starting wage
  • Upscaling and training
  • Comprehensive benefits starting first day of employment
• Community ethics:
  • Amazon Future Engineers
  • Right Now Needs
  • Disaster response and relief

Recommendations: Analysis of Current Strategy

Amazon’s Business Strategy: Differentiation:

• Continue being customer obsessed and creating higher value for the customer.
• Watch cost position and competition.

Amazon’s Corporate Strategy: Innovation & Diversification:

• Continue inventing, acquiring related businesses, and global expansion.
• Watch moving into unrelated markets, competition in global markets, and the cost of innovation.

Recommendations: Strategies to Move the Organization Forward

• Differentiation
• Leverage cost position
• Innovation and invention
• Diversification
• Globalization
• Ethical partnership

Final Assessment: Things to Consider

• Becoming too big to fail
• Impact of cultural norms on ethics of global markets
• Competition from big box stores
• Competition from niche businesses

References

Amazon Sustainability. (2021). About Amazon. Retrie