Company in America With Headquarters Term Paper

Pages: 9 (3055 words)  |  Bibliography Sources: 8

SAMPLE EXCERPT:

[. . .] Conversely, the company lacks physical presence like other retailers such as Wal-Mart and Target, where people are able to see and touch the products while buying them instantly (Jurevicius, 2013). The other weakness is the problem of currency exchange rates across the globe that may fluctuate over a day hence leading to change in spending preference. Again there are clients who are skeptical of buying an item that they have not physically seen hence creating a market void for Amazon.

Opportunities

The primary source of revenue for Amazon Company is in its sale of products and services to its customers. Amazon's financial focus is majorly on a long-term sustainable growth in free cash flow per share. Amazon has several opportunities that make it gain its competitive advantage by reducing their variable costs and work to leverage their fixed costs. The other opportunity is the online payment system where the Amazon has the capability of extending its current payments systems as well as introducing similar to that of PayPal (Jurevicius, 2013). The company's model also allows them to quickly turn their inventory and have cash generating operating cycle. With the opportunity of access to large market, Amazon could benefit by realizing more branded products given that this will help to increase revenue and performance (Jurevicius, 2013). Being a leader in innovations, Amazon standsa chance of utilizing every new technological advancement that may come into existence, indeed the noble idea of using drones to deliver parcels could easily come into being due to the vast opportunities Amazin stands to exploit this means.

Threats

There are several threats that present themselves against the Amazon including online security, lawsuits, strategic alliances and many others (Jurevicius, 2013). The research has shown that, Amazon relies on government regulation of online services and e-commerce: therefore, changes to these laws can be a threat to their business. Other threats may include; changes in business licensing, the certification requirements for imports and regional low cost online retailers. Due to the growth of many downloadable books, music and other digital products, Amazon can also be at high risk of these media business (Jurevicius, 2013). The difference in regulatory law as in many countries outside U.S. has made it also difficult for Amazon to operate freely and profitably as some countries have accused it for killing the library and bookshop businesses within those countries hence received wit skepticism and this is a threat to the profitable existence of Amazon in such countries.

How Amazon may capitalize on its strengths and opportunities and minimize its weaknesses and threats

Amazon is a successful company not only because they serve over 60 million customers and one of the first online retailers across the world, but because it successfully uses the internet in creating global businesses that has tripled its profits. The company's model offers selection and convenience by striving to offer their customers the lowest prices possible. Amazon also offers one stop shopping destination with a consistent experience for their customers. The Company's ability to meet the customer's aspects during online shopping experience has enabled the company to acquire its competitive advantage as well as decreasing risks of competition over the years (Amazon.com, 2014).

Nevertheless, the company's third party marketplace of the third party sellers competes with other merchants online. The merchants therefore sell the new and used products for which the Amazon receives a commission on products through its marketplace. With FIFO concept, Amazons' inventory turnaround time tends to be fast and quick. The FIFO concept is also significant because the old inventory is reduced, hence low inventory risks. The company is also working to release a new video download service; Unbox, which offers books as well as songs as a discount rate to those found on iTunes after the release of the Amazon Kindle.

Strategies Amazon uses to maximize its competitiveness and profitability

Amazon gets its revenue from the sale of products and services to their customers. Its business model is supported by Customer Relationship Management (CRM) that helps the company in recording the behaviors of customers when they buy goods from the company. Understanding customers buying behaviors is significant because this allows the company to continue their primary source of revenue (Amazon.com, 2014). Conversely, with the FIFO concept, Amazon has managed to turn its inventory around as well as having a cash-generating operating cycle. The company has also built its retail business with a negative cash flow cycle whereby, the company gets paid by the customers for the products before paying the suppliers for the goods. Amazon invests in other companies as well as, adding merchandising employees who help in increasing the level of technology hence enhancing customer experience.

Communications plan outline to make strategic recommendations known to stakeholders

Communication in organization plays a vital role in the successful planning of a strategic project. Today, many failed projects in most organizations are as a result of poor communication, therefore for success in organization, stakeholders should be engaged in consistent communication throughout the implementation of strategic plan since they significant role in the development of the project plan. Communication plan can be categorized into three stages, that is; the initial stage, process stage and final stage. In the initial stage of the project, the project managers ensure that the stakeholders set a realistic communication expectation; however, some stakeholders may expect frequency of communication.

Different stakeholders usually have different types of information and some of these stakeholders may require different liaison. Communication needs should therefore be identified and documented, and a copy of the final communication plan document presented to each stakeholders. After the establishment of communication, the communication preferences are then identified, whereas, the project manager ensures that each stakeholder receives consistent messages. In spite of these, the stakeholders may still receive different information or messages through different channels; however, this should not be the case, since the project manager has to ensure that different forms of communication in organization do not create messages that conflict.

Corporate governance mechanisms used by Amazon to evaluate how effective they are at controlling managerial actions

Amazon effectively controls their managerial actions by ensuring that they follow the rules and regulations as defined in Rule 13a-15 of the 1934 Act that govern how they do business online (e-commerce) (Amazon.com, 2014). This is significant because the existing and future laws and regulation may slow down the growth of the company. These laws and regulation may as well cover copyrights, data protection, electronic device certifications and many others. Conversely, unfavorable laws and regulation may on the other hand may diminish the demand for the products and services in Amazon or increase the cost of doing business. The companies also control their managerial actions by ensuring that all the audits are completed as specified in the Security and Exchange Commission (SEC) rules as well as, providing realistic assurance that the information provided is communicated to management.

Evaluate the effectiveness of leadership within Amazon and make one recommendation for improvement

One aspect of effective leadership comes from the company's CEO; Jeff Bezos. According to Bezos' focus which brought success to Amazon was in the way he directed his attention to his customers as well as working with his employees to make that happen. Again, the use of team dynamics in Amazon has helped in adjusting the company's team methodology for the software development, whereas the company was able to show its effective leadership through the adoption of software development teams by having its "culture of independence and autonomy for development teams" (Amazon.com, 2014).

Assess efforts by Amazon to be responsible ethically to corporate citizen and determine the impact of these efforts on the bottom-line

The way Amazon conducts its business is different from its competitors. The Company is said to conduct its business in the most ethical manner and still strives to be an ethically responsible corporation. Amazon do businesses throughout the community, sourcing and diversity while reflecting on their mission statements every day. The company's commitment is displayed by being a socially responsible corporation and this has helped in providing the best quality of business especially for their customers. Conversely, their ethical effort for many years have affected the bottom line and so making the company one of the most successful corporation across the world (Amazon.com, 2014).

Conclusion

In conclusion, Amazon is one of the first retailers having about 60 million customers worldwide. Their values and mission statements aim to please their customers and stakeholders. The company great strategic use of the SWOT analysis has enabled the company to gain the competitive advantage.

References

Amazon.com. (2014). Digication e-Portfolio. Retrieved October 21, 2014, from https://stonybrook.digication.com/gilbert_

Bensoussan, B.E., & Fleisher, C.S. (2008). Analysis without paralysis: 10 tools to make better strategic decisions. London: FT Press.

Bruce, M. (2008). SWOT analysis: a tool for making better business decisions.. London: U.S. Dept. Of Agriculture, Risk Management Agency.

Jurevicius, O. (2013). SWOT analysis of Amazon. Amazon SWOT analysis 2013. Retrieved October 19,… [END OF PREVIEW]

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