Running Head: GROUP 1 PROJECT
Group 1 Project
Amazon.com
BMAL 504 Leading Organizational Change
Eric Gilmore, Phillip Barragan, Daniella Darling, Gail Hinton, Nathon Milton
Liberty University
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Part 1
Analysis
Include suggestions for change and recommendations for management interventions.
This project is defined as managers of organizational change that consist of those who
will improve to make a difference in leadership. In some instances, these agents are policy
makers that point out, governmental concepts, whether publicly or privately, within organizations
that secure the establishment of oaths. In some instances, there will be people who will be
affected by the behavior of those who reflect on their movement as a design to change the
people’s view. When you are in the process of trying to make a better direction or policy change,
the managers of organizational change will use the group, who will put pressure on
representatives and policy makers to get change in the organization. Objectives and agents of
change are, in most cases the same people. In order for Amazon to make products more
affordable for their customers, Amazon must cut shipping cost, and get deliveries to consumers
in a timely fashion; the objectives of change might be in the form of legislative for the executives
that defines their shipping policy. These people are also those managers of Amazon, which is
precisely why individuals look to leadership for change (Rothaermel, 2017).
Change managers may find specific resources difficult to administer, internal and external
pressures, impossible deadlines, immunity from objectives, and on occasion, conflicting
messages from supporters of change. The change agent’s most significant job is the expected role
of translator “between employees and organizations” (Jick & Peiperl, 2011). Moreover, because
communication is essential to successful organizational change, this is an important learned skill.
Listening is one dimension within the learned communication skill that is most crucial for the
managers of organizational change to possess. As it seems, some frequently claim that
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organizations do not listen to the common concerns of its employees. With questions
unanswered, and without voicing concerns, thoughts or beliefs, employees would feel less
involved. Employees should be equally supportive of organizational change and initiatives.
Listening through good communication skills builds the foundation for employees and members
of organizations to connect while it sends an important message that reminds them that they are a
valued part of the organization and its prosperity.
Amazon.com, Inc. is an American multinational technology company based in Seattle,
Washington, that focuses on e-commerce, cloud computing, digital streaming, and artificial
intelligence. It is considered one of the Big Four technology companies along with Google,
Apple, and Facebook (Amazon.com, 2019). As e-commerce expands, more and more products
are offered online to attract internet consumers’ interest which increases shipping activity.
“An important reason why more customers are purchasing their products online is because they
can get it shipped conveniently to the comfort of their homes; however, delays in shipping the
orders can have adverse impacts on customer satisfaction” (Sainathan, 2018, p. 690). Due to the
increased online shopping by individuals, shipping companies such as UPS, FedEx and DHL are
becoming bombarded with deliveries. Many times, this results in late arrival in packages.
Unfortunately “amazon.com loss about 3.5 billion dollars due to shipping costs in 2013”
(Sainathan, 2018, p. 690).
Due to the massive late deliveries in 2013, unsatisfied customers and loss of
revenue of utilizing other shipping companies to deliver their merchandise to customers,
Amazon.com decided to create their own shipping company. “Analysts estimate that the
locations of Amazon's fulfillment centers bring it within twenty miles of 31% of the population
and within twenty miles of 60% of its core same-day base” (Khan, 2017, p. 777). Previously
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Amazon only had a minuscule 65 shipping centers in the US, which meant they heavily
depended on outside sources such as UPS, FedEx, DHL, etc. to get the packages to its customers.
Part 2
Based on your selected learning related to this course, how would you diagnose what is
really going on in the organization?
Amazon shipping was the pioneer in helping us to implement organizations thinking to
organizational change. They emphasized the central part of organizational education and created
models and tools for diagnosing organizational dysfunction and enhancing functioning. They
underlined some of the organizational change disabilities, or delusions, that must be recognized
if the organization will continue to grow (Amazon.com, 2019).
How well do the organizational leaders/members understand what the issues really are?
As Amazon’s online business grows, it will need to manage its inventory more
effectively, because the growing demands of customers facing shipping and receiving
delays;Amazon is set to provide its own shipping system. As consumers we see these issues
facing Amazon better than most, (Marakas & Hornik, 1996). I also spoke to Amazon Flex drivers
on the road briefly while they were in route to dropping off packages; they gave me the
directions I needed; I also noticed that the drivers were dressed like Fed Ex drivers in their
brand-new cargo shipping vans. I figure that Amazon will also have cargo planes and the airports
as well if they do not already have them. I also have been seeing Amazon lockers all over in
different locations;this was not the case two years ago.There has been constant innovation,
change and growth for Amazon across the U.S. and in other parts of the world over the last 5
years.
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Analyze the company’s approach to change. Why did the organization take one approach
to change (e.g., downsize) rather than other possible ones (e.g., creating a learning
organization)? How effectively was the change attempt carried out?
Consumer obsession in Amazon goes beyond consumer satisfaction. It means the road for
continuing to change the consumer experience. When that is pursued relentlessly around
decades, as in Amazon, it contributes to the creation of new jobs and lots of clients, or what is
being named, with important agility As Rossman explains: Amazon’s high-tech logistics
expertise did not go from needing to be the supply chain organization. It came from knowing that
the consumer experience was greatly impacted by adaptability, pace, and quality of
transportation. Amazon Web company (AWS) did not go from wanting to be the cloud
engineering company but from wanting to provide a scalable structure to offer a good online
customer experience.”
Efficiency and effectiveness are often two results of the term change. Creating change
may be challenging but putting the ideas in writing is the best way to come up with a plan. Term
proposals may be carried out in a variety of contexts, from education to on the job skills.
Nevertheless, knowing the way to change and the process, will help you to understand the
essential requirements that is needed to make an efficient plan.
How did resistance to change manifest itself? How effectively was the resistance addressed?
The moderate level of resistance to change is thought to be constructive as it offers the
great level of developmental stability, too as certainty. It is thought to have a favorable
effectiveness on decision making, assessment of the available choices that Amazon has and
contributes to a good brainstorming on the viability of different themes and strategic alternatives.
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But, in contrast, resistance to change impedes the development of this business because of
needless confusion and creates adaptability issues (Amazon.com, 2019).
What were the objectives of the change effort? How successful was the change effort given
its objectives?
Points of importance: The quality of transformational change can easily overcome the
organization, dissipating ideas before the organization achieves its aims (Veazie Gilmore, 2019).
Ineffective campaigns exhort the establishment to change things immediately, but we know that
change is not over night. It is far better to decide only a couple of changes at a time in order to
get better responses and dedicate all personnel to them until progress is achieved.
Recommendations
Provide strategic, practical, and insightful action for management.
Whether you are returning to a former employer after a few months or a couple of years,
the swings in production ratios are not always discussed. Even if the employer is kind enough to
receive the colleague well enough to resume the previous position, the employer would need to
establish a clear understanding of how the business evolved and how best to support the
adjustments needed by the returning employee.
Some people blindly accept the policy of never returning to a former employer because
they may think that challenges should not be involved in returning to a profession. While that
may be true for some commonly held professions, it does not hurt to be determined and ask why
the job has changed or has not changed. To understand this, it must also be understood that there
is no harm in seeking positive results irrespective of the job level, role, and position. Worst case,
you can feel ratified in that you had a say in policy and organizational changes. And better yet
there may be a new business opportunity that you can benefit from while policy changes are
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made because of your return to the organization. As with most things in life, determination is key
to development whether it is individual, employee, or organizational (Rothaermel, 2017).
The strategic idea that assesses strengths, weaknesses, opportunities and threats specified
in an organization may include each element as it affects organizational change. For instance,
you may need to set goals that capitalize on the strengths, mitigate weaknesses, revert threats and
seize opportunities (Veazie Gilmore, 2019). I suggest the SWOT analysis combined with the
organization's vision for the future of Amazon that can generate the necessary initiatives for their
strategic achievement, within the changes of Amazon.
Furthermore, middle managers need to capitalize on a specific position at the upper and
lower levels of the organization and engage in less complex methods that become crucial to
creating an environment for radical change. The organizational change provides an advanced
way of framing the mid-level managers’ part, through both explorative and exploitative work
roles, that further considers the requirements for an optimized organizational environment where
they can effectively operate (Veazie Gilmore, 2019).
How ready is the organization to change in terms of awareness, motivation, flexibility, and
skill?
For Amazon, starting a delivery service would be relatively easy as it already has much of
the needed infrastructure in place. The online retailer has cargo planes, ocean freights, lockers,
warehouses and also smart home devices that allow couriers into homes to make a delivery.
Internet shopping is consistently on the rise therefore there will be more shipping opportunities.
“In 2015, 57.4% of US population and 80% of Japans’ population shopped online” (Ma, Jemai,
Sahin & Dallery, 2017, p.6548). Amazon is ready for change in that they are aware that
depending on other companies such as UPS, DHL and FedEx can result in late deliveries. Their
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motivation is to have on-time deliveries and next-day for their customers. To maintain their
customer based or better yet increase the customer base seems only logical to create their own
shipping company. Their flexibility will be to position Amazon lockers throughout cities so
customers will receive their packages on time. Amazon is a huge conglomerate and they are
skilled at customer satisfaction that is second to none.
Given the context of the change (social, political, economic, customer need, etc.), how big a
change is required to move the organization to a productive and effective mode of
existence?
Amazon is already an extremely productive organization in the e-commerce arena, so the
change into the shipping world will not be a wasteful move. It would be more of a shift to the
next level of business success (Zheng, Yang & Wang, 2019, p. 393).Stepping into the shipping
industry meets the social, political, economic and most importantly the customers need. Its
fundamental purpose is to maximize economic and social benefits by improving efficiency,
reducing operating cost and optimizing resource allocation. “This sprawling network of
fulfillment centers--each placed in or near a major metropolitan area--equips Amazon to offer
one-hour delivery in some locations and same-day in others - a service it offers free to members
of Amazon Prime” (Khan, 2017, p. 777). By creating their own shipping company, the
effectiveness of the company will escalate. “The social relationship that is formed by e-
commerce companies reinforce exchange and sharing of knowledge between companies,
upstream and downstream suppliers, and finally boosts the performance of companies through
collaborative innovation” (Zheng,Yang & Wang 2019, p. 393).
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How might the organization have used some of the materials and learnings from this course
to increase the success of the change effort?
There are many materials from this course that can aid Amazon to increase the success of
the change effort. For Amazon’s change managers, it is imperative that they remain strong in
implementing the change despite what employees might feel about the new delivery services.
Colland (2014) expressed the importance for leaders to realize that change brings resistance,
frustration, loneliness and pain within the organization. Many employees will resist change
resulting in organizational leaders becoming frustrated as the process lags. Also, employee
resistance causes a sense of loneliness for the leaders when many employees reject their vision of
change. Finally, many employees and managers can become frustrated when some funding for
their unit will be allocated for the new delivery services. All these are possible causes leaders
will face when they are implementing changes. Yet, it is imperative for leaders to recognize these
reactions as they are common in leading organizational change. Jick and Peiperl (2011)
Nevertheless, resistance to change is a natural reaction and should not discourage leaders from
implementing their change.
What consulting strategy would you use in working with the organization?
While Amazon pushes forward with the development of their own delivery services
instead of relying on other companies to deliver their package, the consulting strategy that would
work best with the organizational leaders is to use effective communication. For Amazon,
implementing this change will require the full support of all the employees that can only be
gained through effective communication. As Amazon has already communicated and made
preparations for the organizational change, how this change is conveyed to the employees is the
most important part of the change process. There are many uncertainties employees have when
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changes are imminent; to mitigate the employees’ concerns during this time, the employees must
be in the know, by recommend leaders communicating the positive vision of what the future will
hold for their organization. Also, Amazon should remember that the organization’s vision is the
“cornerstone that holds the organization together” (Lattuch & Dankert, 2018); therefore,
communicating this vision is imperative for the success of the company.
This vision of change should be inclusive of the employees’ best interest and should
communicate the benefits of change for those employees. In fact, communicating the benefits of
the change should be the first step in the change process as it gives employees a positive future
of the company (Schulz-Knappe, Koch & Beckert, 2019). What should drive the employees at
Amazon is how this change will make the company better with career advancement
opportunities. Amazon’s new delivery services will require motivated and dedicated employees
that Amazon can hire in-house providing those employees with different positions in the
company. This is another way Amazon can encourage the employees to be excited about the new
delivery services.
Another approach to communicating this change effectively to the employees is to show
how the retail industry will be forever changed thanks to Amazon’s new delivery services. The
majority of brick-and-mortar retailers impact their local communities, yet Amazon has the
capability to impact various cultures and norms worldwide with their e-commerce capabilities
(Garner, 2018). The introduction of their delivery service can further expand Amazon’s impact
around the world.Showing employees this change will answer the question of “why change is
important to the company and how it will help them in the future” (Calland & Keith, 2014).
Effectively communicating the employees’ role and the positive future will aid Amazon’s change
process.
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What recommendations would you make to the organization on how to be more effective in
implementing and/or sustaining changes going forward?
There are many aspects in regard to Amazon’s intelligence that are unmatched. It is hard
to critique a company that has proven such competence and success in their major ventures.
Although there are some areas that could be built upon and groomed to produce even more
success. It is always wise to analyze the things that have gone well and analyze the things that
have gone poorly. To look at the areas where major growth has happened and apply it to other
areas would be a great decision for company ventures, and this idea was verified through an
article which concludes critical success factors in e-business or e-commerce companies (Kha,
2000). Some areas where Amazon has seen successes are in partnerships and convenience.
Amazon’s partnership, which leads to ownership, with Whole Foods is a great example (Banker,
2019). This partnership offers customers multi-faceted options. Not only does this partnership
support another company, but it enhances its own characteristics while doing it. Amazon
provides delivery from Whole Foods and discounts. Amazon has found ways to promote its
delivery while also supporting another company. If Amazon could maneuver its way into
partnerships with companies like Target, Costco, or even smaller scale companies like L Brands
(Bath & Body Works, Victoria Secret, etc.), Amazon would be unstoppable. Amazon has a
beautiful way of not competing with companies but rather supporting them well while also
promoting their own offerings, or, just attaining the company.
Another asset Amazon possesses is the new idea of convenience. We live in an
instantaneous society. Amazon acknowledges these societal characteristics and feeds the fire.
While this instantaneous society may have larger ethical and spiritual affects, it nonetheless is a
vivid aspect of today’s culture. Amazon can continue to build upon that regime by continuing to
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provide convenience and make convenience even more convenient! Some ways in which this
could happen are lowering prices for Prime membership, making more products available in
prime, and creating 1-day shipping rather than 2-day. In order to make this possible, Amazon will
have to continue growing. Warehouses will have to grow exponentially.
Going forward Amazon needs to continue to innovate and promote changes. To generate
an excitement around the change, it needs to be put in a positive light. Whether it be internal
organizational changes or changes made to what they offer for their different services Amazon
needs to be able to promote such changes on social media and other platforms so the customer
knows what is going on and can stay informed. With added benefits and changes, especially to
those that are offered on prime, it is important that cost is kept low so the price point that the
customer is paying continues to stay as low as possible. If any change does make the price point
go up Amazon should make sure that the benefit is worth the increase for the majority of its
customers since when signing up for prime it is a flat fee and one can not pick and choose certain
services and just pay for those. Another way Amazon would be able to sustain these changes is
by focusing on CSR. Being present in the community and giving back to those who are using
their services but not necessarily paying form prime services will boost the longevity of use by
those individuals who are not paying for premium services. This way Amazon will be able to
create value for their current and potential customers outside of just delivering products or paid
services. As stated by LounchE, C., Idowu, S. & Filho, W. “The time has come to shift the CSR
focus away from risk management towards a more progressive and entrepreneurial approach that
seeks to create value and identify sustainable opportunities for strategic innovation”. Creating
value for customers is not only found in the creation of a product of the services they provide but
also found in how active they are in the community in which they are apart of. In Amazons case
Vv”
c
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they are integrated so heavily in to a large portion of the world’s community they have a lot of
room to expand and create value for a lot of communities.
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