Team Business Purpose Analysis

Amazon’s Purpose-Driven KPI

The purpose-driven analysis of Amazon for which the team intends to examine is how the company can measure the psychological emotion of how customers feel. According to Mayhew, Saleh, and Williams (2016), determining the proper purpose and data points is what has the most value. Key performance indicators (KPI) is a way to measure data points. Knowing how customers feel towards a company is important because it helps the company determine whether it has created the right image or not. In cases where customers have negative feelings towards the company, different measures can be taken to improve brand image. Successfully measuring how customers feel towards a company requires consideration of KPI. The KPI the team has decided to focus on is the stock market.

According to Basu, “stock prices tend to trend, and these trends have a psychological impact on individuals and businesses” (2019). Over the past year, Amazon’s stock has gone from around 2,000 point to over 3,000 points. The closing stock price on NASDAQ as of September 29, 2020 is 3144.88. With the increasing rise of the stock market, Amazon can therefore conclude that customers have positive feelings. This is an important KPI as this is how the company will know where to invest to launch new ideas, what debts to pay off, and where to expand operations (Basu, 2019).

A point that Mayhew, Saleh, and Williams make is to think really small and very big when pinpointing the purpose (2016). A way Amazon could think really small is to figure out what made consumers invest so positively and expand on them. Discovering small areas that are working can help them exploit those areas. Moving forward, Amazon will need to ask the right questions, set new goals, and pinpoint new purposes in order to continue measuring how customer’s feel.

References

Basu, C. (2019, March 6). What is a stock and how do stocks affect the economy? Zachs. Retrieved on September 29, 2020 from https://finance.zacks.com/stock-stocks-affect-economy-2233.html#:~:text=Stock%20trading%20allows%20businesses%20to,turn%20affect%20the%20overall%20economy

Mayhew, H., Saleh, T., Williams, S. (2016, October 7) Making data analytics work for you-instead of the other way around. Retrieved on September 28, 2020 from https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/making-data-analytics-work-for-you-instead-of-the-other-way-around

NASDAQ. (2020, September 29). AMZN. NASDAQ. Retrieved on September 29, 2020 from https://www.nasdaq.com/market-activity/stocks/amzn