Amazon Financial Continuation
Financial performance: Amazon
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Introduction
Every organization requires quality financial performance and management to achieve the goals and intentions that have been set.
Amazon has been ranked 2nd in fortune 500 companies and if Walmart company doesn’t watch out Amazon has a big potential of being 1st ( Seim, 2017).
The current leadership at the company contributes to its success, its good financial performance and opportunities in the world market.
The company currently soars at commendable heights, due to various factors such as its leadership and good financial performance
From the market cap of Amazon company, it shows that it is very valuable, amazon started small and its growing stronger everyday.
Amazon is among the international business organizations that provide services to customers in different regions. The company has been in a commendable business position and possess the ability and might to serve its market. Such success and triumph over its competitors is realized due to various aspects such as its leadership. (Skinner Smith and Swanson, 2018). The leadership of the company is what puts it at stake and provides for all business necessities such as decision making, employment and general management. Such leadership that provides a profound and intact service that guarantees success to an organization can be termed strategic leadership.
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Company description
Amazon is a multi- million company which deals in artificial intelligence, entertainment digital distribution, self driving cars ,e-commerce and cloud computing. The company is focused on improving technology and producing technologically advanced machines
The company by market capitalization surpasses all companies in the united states as the most valued retailer
Amazon has been said to be among the most influential cultural and economic force in the world and the most valuable brand in the world.
The company has strong vision and mission that has been its driving force and enabled it to move up the scale and maintained its superiority (Seim, 2017).
The leadership portrayed by leaders at Amazon c have enabled the proper guidance of its followers and customers thus achieving its top position in the sporting sector. Jeff Bezos, the founder, has steered the company forward by coming up with the best leadership theories that capture the customers interests and makes them become loyal to this organization (Kim, 2020). By being an effective leader, he also encourages employees to work together to attain their set goals and visions of the company. New ideas that the company has, together with its strong vision has enabled it to become more profitable and competitive in the market.
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Key performance indicators
The ticker symbol of Amazon company is AMZN. NASDAQ and Amazons operating cash flow statement in 2020 increased 72% which became $66.1billion. In 2019 it was $38.5bllion and this shows a great increase, and this means that Amazons financial performance is good.
In Amazons financial report it we see that their operating price to earning ratio is 60.21 and this shows that the company is expected to have a higher growth
Amazons' dividend payouts and dividend yield is shown to be at 0.00% as of September 03, 2021.
Amazon is performing well in terms of finance control and management and this what has helped a lot in the growth of the company( Li, 2018).
Its ability to give the best customer service while at the same time producing quality products for the market is as a result of the best leadership in place. The employees are also given room to be innovative and come up with new products and ways to serve their customers better. Their able leaders provides the whole company with the right direction that they can follow thus giving their customers and employees the confidence they need (Kim, 2020). While working on new ideas and innovations, Amazon does so with confidence and without thinking of any negative impacts thus gaining more trust from their customers and followers.
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Earnings and trade volume
Amazons’ earnings per share went up against the estimates to 46.8% and most of Amazons earnings are from amazon web services and it has since proven to be the main profit generator for Amazon.
For amazon web service to be the most loved is because it has helped many governments and businesses to maintain its continuity.
From the performance outlook Amazons previous close trade volume was 3,463.12 and the days range being 3436.44 – 3,482.67, the weeks range being 2,871.00 – 3,773.08. Amazons trade volume is 2,578,324 and the average volume being 3,337,223 (Li, 2018).
Amazon’s culture is both internal and external, where its employees feel encouraged to be part of something that impacts a lot of lives, while the customers fell at home when dealing with the company. The external image creates a positive image of the company to the rest of the world thus gaining more customers and making more sakes compared to their competitors (Alousque, 2019). The development of new products from time to time also gives the company a competitive advantage since they can release new products into the market and attract more customers.
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Strategic performance of the company.
The success of amazon company is attributed to the advantage it took of the disruption that happened because of COVID-19 and this was also possible because the company was well positioned.
Solutions to various problems are gained by intellectual stimulation and putting together of like-minded people to give and implement solutions. And when there is a financial problem, it can be tackled easily.
Various solutions to various problems are gained through good decision making and strategic tackling of problems thus a company like Amazon should be strategically abled to tackle any challenge.
Differences and conflicts have been lowered by allowing individuals perform their duties diligently and acknowledging their hard work. This mainly is by giving allowances when appropriate and rewarding the hardworking and paying all employees well so as to give them morale to work even harder (Reza, 2020).
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Effectiveness of Amazon’s finances
The founding of amazon brought in criticism from all over some saying that it has led customers away from bookshops and others would say that Amazons was taking over the market and leaving them to close their businesses but its just all about competition.
The goals and objectives is to enable customers access their products easily and at lower prices that can be afforded by majority of the population, and this is what has made Amazon be known and loved by many.
Various ways are used to receive customer feedback and identify any area of weakness that need to be corrected and reviewed to enable maximum customer satisfaction.
Amazons' finances are being used to generate more and that is why more goes to improving customer service, products and services and monitoring the markets to know how to go higher (Reza, 2020).
Employees cooperate in fulfilling the goals of the company and are motivated by the positive leadership that they have. Being inspired and motivated enables employees to work harder in their jobs. Since these employees have the best working conditions and good leadership, they stay longer in their workplaces thus reducing the company’s need to hire new employees often (Swanson, S., 2018). Employing different workers with different skills and abilities has enabled the company to be more productive since more employees work in different areas at the same time. They are also offered training to improve their skills thus increasing their productivity.
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Revenue
Amazons' revenue for the second quarter of 2021 was 113.1 billion USD and the company has been having a steady financial growth and sustainability thus always increasing its revenue.
By managing their revenue, they increase the productivity of the company and by this they also get to do some planning of more future activities to be done.
Because of the good revenue report the company has had a lot advantages and has always been on top..
The company's management utilizes new chances to identify changes in the market and help them produce ways to keep up with those changes to keep their revenue steady and increasing (Zhu, 2019).
Common values, goals and ethics found in the company have been implemented by good leadership thus helping their employees to work diligently. These values govern all the employees in the company which help in their good conduct while working. Employees and their leaders openly interact to help in identifying problems, coming up with timely solutions and moving the company forward (Swanson, S., 2018).
Employees are also involved in the decision-making process which makes them feel as part of the company and are appreciated. By involving them in making decisions affecting them, they will easily adapt to various changes in the company.
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Market capitalization
The market cap of Amazon company is $1.784 trillion as of September 2021. due to this Amazon is regarded as the 5th most valuable worldwide by market capitalization.
Market capitalization refers to market value in total of a company publicly traded and this is what is used commonly to measure the worth of a company.
When we study the market capitalization history of Amazon from 2001 to 2021 there was a slow rise from 2002 to 2010 and after that the company's capitalization started to grow drastically and it has done good to the company
Market capitalization is usually calculated by multiplying the share price with the amount of outstanding shares (Zhu, 2019).
Amazon needs to continue to work hard a capitalizing the market to stay on top.
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Future requirements
The future changes in technology and trends in the market should be considered for Amazon to remain relevant in the market in the future.
Peoples tastes for various things in the market changes as time goes by and so Amazon company should do its best to keep up with the changing preferences of the people so that it can remain in the market limelight.
Amazon should be prepared for competition always because a healthy economy must have competition and to be considered the best there must be competition.
The company should keep up with the good financial performance and improve where possible for it to always be at its best (Zhu, 2019).
To overcome competition from upcoming similar forms and distributors, Amazon should develop more superior products that are more attractive to their customers. These products should also be pocket friendly so that the customers do not look for better and cheaper options (Wijethilake, Upadhaya and Lama, 2021). The company should enhance its leadership and ensure they are well informed of their competitors in the market and what they have to do to outdo them.
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Conclusion
A strategically put financial plan enables a company be in good position to grow and maintain itself.
From what we have discovered, it is now known that good financial performance positively affects the image of a company both externally and internally
Amazon company is going to meet its financial goals because of its drastic growth and positive sustainability
Amazon products and services are highly recommended because they are always genuine and long lasting, and I highly recommend their products and services.
When leaders and employees of a company cooperate and collaborate, they will easily achieve the set goals of that organization. The positive culture of the Amazon company has been improved by the cooperation between employees and their leaders. The goal of the company has been the ability to offer a platform that connects consumers with millions of highly sought products. However, Amazon has to look out for new market trends for them to remain relevant in the future market.
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Reference
Abdulrahman, T., & Oreijah, M. Strategies and Technologies that Contributed to the Success of Amazon and Alibaba.
Aversa, P., Haefliger, S., Hueller, F., & Reza, D. G. (2020). Customer complementarity in the digital space: Exploring Amazon’s business model diversification. Long Range Planning, 101985.
Feng, Y., & Li, X. (2018, July). Discussion of the Factors that Influence the Amazon’s Share Prices. In 2018 4th International Conference on Economics, Social Science, Arts, Education and Management Engineering (ESSAEME 2018) (pp. 529-537). Atlantis Press.
Houde, J. F., Newberry, P., &Seim, K. (2017). Economies of density in e-commerce: A study of amazon’s fulfillment center network (No. w23361). National Bureau of Economic Research.
Li, J. (2020). Differentiation, Diversification and Acquisition from an Online Bookstore: Multidimensional Assessment of Amazon’s Strategic Management. Available at SSRN 3683474.
Zhu, X. (2019). Case XI: Amazon’s DNA: Driving Technology Innovation in the Digital Economy. In Emerging Champions in the Digital Economy (pp. 289-311). Springer, Singapore.