Module 5 assignement 2
AMAZON 2
AMAZON 6
Running head: AMAZON 1
Amazon is a public company with that provides products via ecommerce and is the largest online retailer in the U.S. It is an internet based company designed for online shopping, and it also carries out distribution of its products. Amazon deals with a wide range of products though it initially was a bookstore. Amazon later began to vary to other products. These products include DVDs, Blue -rays, CDs, video games, food, and toys among others. Amazon diversified with different products. This firm does cloud computing and it is the largest provider of cloud infrastructure services in America. Amazon headquarters are situated in Seattle Washington whereby it is still capable of distributing its contents through shipping to various countries that place their orders online within the shortest time possible.
Employees at Amazon have several initiatives that motivate them to achieve results. Amazon offers these motivations in order to get the best performance from the employee’s and to help remember their purpose as being part of the company. The first technique applied by Jeff Bezos Amazons’ chief executive officer is absolutely functional. Pay to quit was a technique introduced to the entrepreneurship world by Zappos, it was a strategy applicable to new employees hired in to the online shoe seller which was later bought by Amazon in 2009. $2000 dollars is offered to each employee to quit after undergoing extensive training. There is a statement heading though at the offer which wishes the employees to not consider the offer, the statement is meant to encourage employees that they should indeed continue with their services to Amazon. The amount offered increases annually until it reaches a maximum of $5000 (Ferrell & Hartling, 2014). This strategy is helpful to both the employee and employer. For the employer it helps determine the dedicated staff and offer them tasks which require their commitment. The employee is benefited by this pay to quit strategy because it helps an individual to determine their situation and evaluate whether it is the best for them. This is a difficult decision for employees to take considering the challenges in the current employment environment. The pay to quit strategy is of benefit to the firm at long run since it’s healthy if the only employees working are certain of working in the firm and hence happy working at Amazon.com.
The organization’ CEO Jeff Bezos uses another fruitful strategy of offering an almost free tuition of 95%. Every individual has their area of specialization and it is of more importance giving the employees training on their desired wants. Amazon offers training in their fulfillment centers expecting to build someone's career or offer new skills which may end up being helpful to the company down the line.
This organization offers its employees a chance to work from the comfort of their homes, some of the employees are either mothers with small children and they are required fulltime. The fact that Amazon offers a chance to an employee who does not need to be physically present in the work place is of great help. This is indeed a great incentive because it does not only consider new mothers but also the physical challenged with required additional consideration as well as employees who may live at a great distance from the office. This technique opens a wide variety of aspirants and widens the company scope. It is an initiative which benefits both the Company and the associates, the firm benefits because potential aspirants increase and it improves flexibility of operations (Shepard, 2007). Amazon also offers a health insurance program to the employees as well as stock options to employees who work full time and have served in the company for two years. The company offers motivation to temporary workers, temporary workers are the employees hired during a high volume period (for instance the Christmas rush). The temporary workers are allowed to purchase medicine using the staffing agencies.
The workforce at Amazon is dynamic and changing fast in order to compete favorably in the global market. Amazon has diversified in order to increase their scope of operations. 37% of the total global staff in the 70 Amazons warehouses and other 17 newly opened fulfillment centers are women. It is of note that25% of Amazons leaders are women (Pace, 2008). Amazon is looking to shape future leaders and that’s why it has diversified in making women leaders despite its former data on workforce whereby majority were men. The workforce in this company are working tirelessly to retain their position as the world’s most efficient internet based retailer.
Amazon’s vision is consumer oriented and hence the company considers its customers the priority and forgets its workforce working conditions. Many employees have complained of the boundaries they have to stretch to deliver a product. Amazon needs to consider its employee’s status and avoid pushing them beyond their physical limit. Amazon understand what its customers want which is quick delivery and hence it strives to satisfy them (Ferrel & Hartling, 2014).
The firm is trying too hard to remain efficient in quick deliveries but does not consider the employees who make this happen. Countless employees have complained how this speed to boost production wears them out and has actually cost them their jobs. Amazon should rectify the grounds on which they sack their employees, a few employees who requested anonymity reveal how their health conditions such as cancer almost cost them their jobs. Many Silicon Valley technology companies consider the terms of working and their employees working conditions and hence Amazon should apply the same for efficient output from the workforce.
Amazon is currently facing a challenge when it comes to international marketing and the revenues from foreign countries is declining. A lot of risks and uncertainties are associated when Amazon is marketing abroad. Analyst information shows how in 2014 Amazon sales were composed of 37% from international marketing. A decline however set in persistently and the sales generated from marketing in foreign countries are poor. Amazon however is generally growing and competing favorably with new entries in the foreign market.
Although it faces many challenges in accommodating a growing diverse workforce, Amazon finds itself in a very interesting position. They are still the largest online retailer in the world and have great opportunity to be a leader in how this particular section of the market treats its employees. By being the example Amazon can further solidify its lead in the global market and strengthen its workforce to ensure continued growth and profitability.
References
Ferrell, O.C. & Hartling, m.d. (2014). Marketing strategy: text and cases. Mason, OH, South-
western/Cengage learning.
Shepard, A (2007). Aiming at Amazon: the new business of self-publishing, or, a successful self
publisher's system for profiting from nonfiction books with print on demand and book marketing.
Pace, R.W. (2008) Organizational dynamism: unleashing power in the work
force. Westport, conn: Quorum books