MBA FPX 5006 Assessment 3 Strategy Implementation

MBA FPX 5006 Assessment 3 Strategy Implementation

Student Name

Capella University

MBA-FPX5006 Business Strategy

Prof. Name:

Date

AFI Framework

• Analysis, Formulation, Implementation.
• Amazon VIRO Internal Environment Analysis
• Amazon Porter’s 5 Forces External Environment Analysis
• Amazon External Environment PESTEL Analysis

SWOT Analysis

Amazon Business Strategy

Differentiation:

• Customer Centric
• Value Position

Amazon Corporate Strategy

Diversification:

• Products: From books to virtually anything
• Business Units: AWA, Whole Foods, Prime
• Service: Free music, free movies, free two-day shipping
• Geographic/Globalization

Integration:

• Logistics and delivery: Vertical integration, forward integration
• Amazon Web Service: Vertical integration, backward integration
• Prime Video original content: Vertical integration, backward integration

Organizational Structure and Governance

Amazon’s Organizational Structure:

• Core components of corporate structure
• Multidivisional organizational structure
  • Hierarchical, multi-divisional organizational structure

Corporate Governance:

• Four P’s of corporate governance
• Principles of corporate governance
• CEO vs Chairperson of the board
  • CEO/board chairperson duality

Ethical Responsibility

Amazon’s Code of Business Conduct and Ethics:

• Global ethics:
  • Climate pledge
  • Sustainable operations
  • Supply chain
  • Packaging
• Ethical treatment of employees:
  • $15 starting wage
  • Upscaling and training
  • Comprehensive benefits starting first day of employment
• Community ethics:
  • Amazon Future Engineers
  • Right Now Needs
  • Disaster response and relief

Recommendations: Analysis of Current Strategy

Amazon’s Business Strategy: Differentiation:

• Continue being customer obsessed and creating higher value for the customer.
• Watch cost position and competition.

Amazon’s Corporate Strategy: Innovation & Diversification:

• Continue inventing, acquiring related businesses, and global expansion.
• Watch moving into unrelated markets, competition in global markets, and the cost of innovation.

Recommendations: Strategies to Move the Organization Forward

• Differentiation
• Leverage cost position
• Innovation and invention
• Diversification
• Globalization
• Ethical partnership

Final Assessment: Things to Consider

• Becoming too big to fail
• Impact of cultural norms on ethics of global markets
• Competition from big box stores
• Competition from niche businesses

References

Amazon Sustainability. (2021). About Amazon. Retrieved from https://sustainability.aboutamazon.com/?energyType=true&workerCount=true&engagementProgram=true&productCategory=true

Canz Marketing. (n.d.). Amazon SWOT Analysis: A Case Study To Find Your Competitive Edge. Canzmarketing.Com. Retrieved from https://www.canzmarketing.com/amazon-swot-analysis/

Chen, J. (2021, February 23). Corporate Governance Definition. Investopedia.Com. Retrieved from https://www.investopedia.com/terms/c/corporategovernance.asp#:~:text=The%20four%20P’s%20of%20corporate,process%2C%20performance%2C%20and%20purpose.

Dudovskiy, J. (2020, March 24). Amazon Organizational Structure: a brief overview. Research-Methodology.Net. Retrieved from https://research-methodology.net/amazon-organizational-structure-2-2/

GUPTA, S. K. (n.d.). Amazon SWOT 2021 | SWOT analysis of Amazon. Bstrategyhub.Com. Retrieved from https://bstrategyhub.com/swot-analysis-of-amazon-amazon-swot/

Hall, M. (n.d.). Amazon.com History and Facts. Britannica.Com. Retrieved from https://www.britannica.com/topic/Amazoncom

Kryscynski, D. (2015). What is strategy? [Video]. Transcript Retrieved from https://www.youtube.com/watch?v=TD7WSLeQtVw

MBA FPX 5006 Assessment 3 Strategy Implementation

Mind Tools. (n.d.). SWOT Analysis How to Develop a Strategy For Success. Mindtools.Com. Retrieved from https://www.mindtools.com/pages/article/newTMC_05.htm#:~:text=SWOT%20Analysis%20is%20a%20simple,advantage%20of%20chances%20for%20success.

Ong, C. (2015, January 9). Five benefits of strategic planning. Envisio. Retrieved from https://envisio.com/blog/benefits-of-strategic-planning/

Rothaermel, F. (2021). Strategic management (5th ed.). New York, NY: McGraw-Hill.

Superside. (n.d.). Amazon SWOT Analysis Template [Graph]. Superside.Com. Retrieved from https://www.superside.com/blog/swot-analysis-templates

Taylor, K. (2021a, March 29). Amazon faces most important union vote in decades. INSIDER. Retrieved from https://www.businessinsider.com/amazon-faces-most- important-union-vote-in-decades-2021-3

Virtualstrategist. (2016). How to perform a SWOT analysis [Video]. Transcript. Retrieved from https://www.youtube.com/watch?v=I_6AVRGLXGA