Amazon stands at the top as a company and is used as a reference point when discussing the future of the retail industry. Amazon was incorporated in the year 1996 to offer an assortment of products and services through its websites. Amazon’s products encompass merchandise and content it purchases for resale from vendors in addition to the ones offered by third parties. The future of this industry is seen as being part of the bigger digital transformation that has been expected for a long time due to its impact on the products, information, and flow of money through the evolving supply chain to meet consumer expectations.
The core changes that have occurred in the context of the management style since it was conceived include:
The adoption of pragmatist leadership styles where leadership has focused on the establishment of high standards and unapologetic expectations that the standards will be met by the management as well as the employees. The assertion has been that the pragmatists are driven and competitive especially based on their value for the attainment of their goals (Herrmann ; Herrmann-Nehdi, 2015).
The other leadership style that has been adopted at Amazon over time is the focus on their customers as the most important part of their investment. The assertion has been focused on customer satisfaction metrics will ensure that the organization has managed to maintain a satisfied client base which is vital to their success (Palmer, Dunford ; Akin, 2016). The company has transitioned its management style to focus on what the customer wants and what they do not want as they seek to drive patronage and consequent sales.
Based on the performance that has been associated with Amazon, it is right to assert that the company is well managed. The leadership, in this case, has sought to focus on the high standards they have established for their employees and motivating their teams to deliver the best quality services to their clients. Further aspects of customer satisfaction have been valuable in ensuring that the management constantly addresses all issues that could result in the dissatisfaction of their customers by defects, delays and out of stock products.
Question Two- Change Management
When it comes to change management at Amazon, one attribute that stands out is the fact that the rate of the company’s innovations in their supply chain management has been astonishing. The rate of change in the company’s supply chain has been significant and revolutionary, making the lower volume competitors unable to keep up with the company. They are forcing their major competitors to invest more in the automation of their supply chain and reduce the overall duration taken to deliver products (Palmer, Dunford ; Akin, 2016). The management has played a major role in the management of these changes. One of the roles that is played by management has entailed the clarification of issues with the management ensuring that their teams understand the changes they are facing and what they meant to the organization and their clients (Carter, Armenakis, Feild, ; Mossholder, 2013). Through the clarity of issues, it becomes possible for the team to objectively address the risk factors, anticipate possible results with a clear line of sight, and further develop a clear path that will direct them towards the real issues and how to solve them.
The management had to ensure they embraced the diversity of thought involving an appreciation of the fact that people are different in the ways they think, innovate and act. The idea is in ensuring that they have created a collaborative team which is ready to cultivate a stock of ideas and ideals. The assertion, in this case, is that the form of collaboration that embraces the diversity of thought seeks to amplify the discovery of knowledge (Carter et al., 2013).
Strengthening their ecosystem through the designing and subsequent strengthening when teams have attained the clarity about the change they are seeking and have mastered and leveraged their ability to collaborate through embracing the diversity of thought. The assertion is that the creation of an ecosystem allows the team to start integrating and multiplying its know-how, Intel, as well as insights with other organizational teams whose functional competencies further enhance the team’s thinking and offer inputs that strengthen their outputs (Palmer, Dunford & Akin, 2016).
The contribution by the management in managing change has ensured that by the end of 2013 Amazon was developing a drone-based delivery system which would deliver products below five pounds in locations that are 10 miles of their fulfillment centers and within 30 minutes or less (Bamburry, 2015). The company has further invested in whole foods; an indication the company’s transition into brick and mortar, sensitizing on the convergence of the traditional retail as well as e-commerce strategies (Bernoff, Cooperstein, Lussant, ; Munchbach, 2011).
Question Three- Use of Vendors
Amazon relies on other companies in the forms of vendors and suppliers for their products. The fact that the company is involved in the sales and supply of products globally, the relationship they have with their vendors and spokespersons is vital to their success. The company has become a leader in the e-commerce industry by offering its clients a vast selection, low prices as well as fast delivery. The vendor’s systems, as well as the experienced team at the company, play a major role in shaping the shopping experience via the provision of the technology the company uses in onboard, managing and vendor communication (Al Sayyed, 2016). The management is always committed to the identification of opportunities to be used in the process of streamlining the business processes, optimizing for a time as well as efficiency and innovating the new e-commerce vendor management models (Wuttke, Blome, Foerstl, & Henke, 2013).
As an Amazon manager, I would suggest a better improvement in the customer service department. It is imperative that Amazon offers a direct and efficient channel to be used in the management of complaints and dissatisfaction from its clients. Focus in this case would be in ensuring that any complaints lodged by the client have been addressed fast and resolution meant to ensure the customer has been satisfied. The focus is on ensuring client retention especially due following the emergence of a host of other companies offering almost similar services (Wang & Feng, 2012). The employees, on the other hand, will have access to customer management training and mentorship that will allow them yo easily addresses the concerns.
Amazon is one of the companies that can manage the ever-changing customer needs in the market when it comes to the stipulation of diversity and faster delivery times. The fact that the company has already been developing drones for supplying products to their clients implies they are on course to addressing this aspect (Al Sayyed, 2016). Further, the fact that the company has been venturing into other industries such as whole foods is an indication that they are willing to address the market environment that calls for diversity.
Communication acts as the major vehicle through which an organization can accomplish its mission, vision, and goals. Open communication will serve to engage all stakeholders in an organization and direct them towards the attainment of the same objective (Wang & Feng, 2012). Through effective and comprehensive communication, Amazon will ensure that the tactics and resolutions communicated with the management teams have been relayed to all the stakeholders to guarantee effective attainment of the set targets.