Leadership philosophy and values at Amazon Inc
A successful leader knows their Personal Leadership Philosophy (PLP) in an appropriate manner and is able to communicate the same by living it fervently every day in their every activity (Bolden, 2016). They have provided appropriate time in ascertaining their values and priorities. Values followed by a leader not only affect the decision of the management but also affects the whole organization (Michael, 2015.). The present report deals with the assessment of leadership at Amazon Inc. A detailed assessment of leadership philosophy followed at the organization has been appropriately discussed. Further, ethical policies followed by the company have adhered in order to ascertain the extent to which value is followed and believed by the management.
Leadership is a privilege that takes along with it the duty to encourage others and also to direct them towards the accomplishment of vision and objectives of the company. Bolman & Deal (2014), asserted that the most significant asset of the leadership of professional development is obtaining an interest in them as individuals and identifies their success. For the achievement of this, it is vital to consider that news about leadership is good as well as bad also in order to make others authorize towards making a decision is significant to budding future company leaders (Long, 2017). Leadership only entrust on decisions which leaders believe that subordinates should take. Decisions which are improper towards the level of responsibility or which are outside the/ability level are don’t even asked while making a decision (R?ducan & R?ducan, 2014).
Amazon .Inc
Amazon Inc product line comprises a vareity of media forms such as books, music, DVD software etc. Apparales, baby product, electronics, health and personal care items are also provided by the company. It also deals with product relating to kitchen items, sporting equipment, musical instruments, automative toys and games. The company also provides whole trade bananas and organic avocados and other organic vegetables through its subsidiary Whole Food Market Inc. The organization structure of company is prominent as , firstly the assignment is verified, and after that only same is trusted and later on it is passed and micromanaged. Leadership grants direction and support. Leadership welcome opportunities to do work on equal basis to employees all over. But later on, it is recognized that job of each employee in a company is different and which is not exchangeable.
Assessment of mission and vision statement of Amazon. Inc
Product line and Vision statement of Amazon Inc
Vision Statement
The vision statement followed by Amazon is “Being world’s customer-centric company so that consumers can purchase and discover anything the required online”. In order to attain the same, “global reach” component has been included in Amazon.com Inc.’s vision statement regarding international leadership in the e-commerce market. Thus, a corresponding strategic objective is global expansion, especially through market penetration and market development. The “customer prioritization” component of Amazon’s vision statement represents that the firm considers customers as the most important stakeholder group in the online retail business. Moreover, the vision statement indicates continuing efforts to broaden the product mix, under Amazon.com Inc.’s marketing mix approach (Gregory, 2017). Under mission, vision department and values of department leadership promote creativeness and liberty of action. In view of Coghlan & Brannick, (2014), leadership desires that each and every individual in the department to be proud of the work they are doing, appreciate contributions of their jobs in the overall department and believe that in some way they also can provide leadership.
Mission Statement
The mission statement of Amazon mission statement is as follows: “We endeavour to provide our customers with the lowest possible prices, excellent selection, and the maximum convenience.” The “lowest prices” component of the mission statement refers to the pricing strategy. Such low prices are a selling point that makes the company’s e-commerce website and service attractive (Gregory, 2017 ). A consistent strategic objective with this aspect is to make a reduction in operational costs. Amazon’s mission statement also focuses on the attainment of best selection. Gregory, (2017) asserted that the availability of a wide variety of products on the company’s website is a major factor that attracts customers. Moreover, Amazon.com Inc.’s mission statement emphasizes convenience; the same is a general criterion used by customers for evaluation of the quality delivered by online companies.
The mission statement of the company is satisfactory as it is established on best practices in. It is inclusive of product selection, pricing, and service quality which assess the strategic direction of the e-commerce business. Nevertheless, it is suggested that mission statement should also cover characterization of the nature of the business, such as its e-commerce nature. The same will assist in specifications of strategies for the online retail business.
Assessment of internal and external environment
Internal Environment
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Strength |
Weakness |
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· Strong background: The company has been evolved as global e-commerce giant and has wide product categories. · Customer centric: Company robust has developed customer centric process in order to provide product as per preference of customer. · Prominent delivery Network: A deep and organized distribution exists in order to provide delivery in remote location too. |
· High Debt: In order to make business successful in developing countries overall profitability is being affected and same is transforming into high debt. · Reduced margin: The company has extensive distribution network but at the same time organization is dealing with price war; thus the same has shrinked the margin. |
External Environment
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Opportunity |
Threat |
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· Acquisitions: The exposure available relating to acquisition of other e-commerce company is available. Through same it can reduce competition and apply specialized capacity of other companies. · Global Exposure: Expansion in developing countries will be proved best opportunity as less competition exist in these markets. |
· Low entry barrier: It is one the major threat as it leads to enhance the existing competition and shrink the profit too. · Government provision: It is believed as big obstacle as no clarity in related provision exists. |
Performance management policies
Acquiescence with Laws, Rules and Regulations: It is vital for employees to follow related laws, rules and regulation forever (Goetsch & Davis, 2014). Employees can communicate with Legal Department in case they have any queries about the applicability of law, rule or regulation.
SWOT analysis of Amazon Inc
Insider Trading Policy: Central and state laws ban dealing with securities by persons who contains material information that is not usually famous or accessible to the public. It is supposed that each and every employee of Amazon.com must obey Insider Trading Policy Guidelines. There are some employees who should obey among trading windows and preclearance needs while trading with Amazon.com securities. All employees are predictable to review and follow the Amazon.com Insider Trading Guidelines (Julia & et al.,2016).
Discrimination and Harassment: Amazon.com offers equivalent chance in all aspects of employment and also not accepts any illegitimate inequity or any type of stalking. For more details, notice guidelines of Amazon.com on Equal Employment Opportunity and Workplace Harassment under Amazon.com Owner’s guidebook.
Assessment of Amazon Inc. performance management system
The concepts followed by management of Amazon Inc relating to leadership comprises the following variant, i.e. customer obsession, ownership, simple provision and rules, hiring and developing the best and other relating variants.
Customer Obsession: Leaders begin with customers and work rearward. Though leaders also give attention towards their competitors and obsess over customers (Amazon Leadership Style, 2017).
Ownership: Leaders are considered as owners of the company. They do not forgo long-term value for short-term results. Leaders operate in place of the whole corporation, beyond just their own team.
Simple provision and rules: Leaders anticipate and want improvement and development in their employees who are working under him with discovering methods of making things simpler. They are always alert and stare for innovative thoughts from everywhere, not restricted by “not originated here”.
Insist on the Highest Standards: Leaders contains persistently high standards there are lots of people who believe that might be these standards are irrationally high (Amazon Leadership Style, 2017).
Hire and Develop the Best: Leaders increase the bar long with each hire and promotion. They identify exceptional skill; eagerly move them all over the organization. Leaders build up leaders and take sincerely their task of training others.
Big Thinking: Leaders build up and converse a bold path to encourage results. They think in a different way and look around corners for a method to keep customers save.
Ethical concepts of Amazon .inc
While executing the task employees of Amazon.com have to operate legally, morally and in the best manner in concern of Amazon.com. This code of Business Conduct and Morals frames essential guiding principles. Employees who are not confident about whether their behaviour or the behaviour of their fellow workers fulfil the code of conduct must speak to their managers or the legal department (Cummings & Worley, (2014 ). Even employees can also report any suspected noncompliance the same as supplied under Legal Department’s reporting guidelines which are described below:
Concepts of management relating to leadership
Variances of Interest: It is necessary to be assured by employees that while executing their task they should utilize their opinion every time and in all manners with the concern of Amazon.com. Conflict of Interest prevails at the time when personal interest of employees hinders among that of Amazon.com interests (Joseph, 2015). For instance, Conflict of interest takes place when a worker or family member gets a personal benefit like a reward of the employee’s position with Amazon.com. It also occurs from an employee’s business or personal connection among customer, dealer, competitor, business partner or another employee. Since employee’s takings of gifts or services can build conflict of interest Legal department, make guidelines for the revelation of gifts or services obtain by company or others. Employees must try to stay away from conflict of interest and employees who think the conflict of interest might exist must inform it to legal department on time (Walker & Walker, 2016). Legal department will judge all information and conditions to decide whether remedial or justifying actions is suitable.
Reflection on Transformational leadership
The word “transformation” might bring in mind the image of action for starting somewhat new and discontinue which is not effective, working restlessly to achieve the objective (Leadership Development, 2015). However, it is our mania with a performance that often weakens important transformation. It could be assessed that in case of transformational leadership, even if direction has arrived from leaders, managers are the means of modification, straight leading and manipulating the most of employees in a company. Since Confucius said, “There are three ways through which wisdom can be learned: first through reflection, which is noblest; second through imitation, which is easiest and last through experience, which is bitterest ”. Transformation leadership is appropriate believed formed of leadership through which appropriate management of an organization is possible to the maximum extent (Lessie., 2017).
As far as I have assessed HR leaders can assist manager’s shape out reflection time through promoting and also facilitating to arrange sessions determined on lessons learned equally for managers and teams. Sessions might be bi-annual or annual for teams, as individual coaching session for managers can be useful on a more common basis. At the individual level, reflection is able to restore one’s management approach. On a team level, reflection is essential for efficient plan setting- i.e. the manner in which team exerts mutually to fulfil the objective of the company in front of them. Ultimately, these sessions know how to assist build up the habit of reflection and promote a more reflective workplace society. Thus, Amazon Inc follows transformation leadership philosophy to a significant extent. The same has been asserted through ascertaining the manner of making a decision by the management.
Conclusion & Recommendation
Entrepreneurs and other senior executives have to face difficulties in order to attain the objectives of the organization due to lack of qualities of an effective leader. It could be asserted from above study in case of the existence of efficient leadership skills an organization is able to attain its objectives easily as well as in an efficient manner. The vision and mission statement of Amazon states that the management incorporates the same in their everyday operation so that it could be attained in a predetermined way. Appropriate ethical values are being followed by the organization, and same could be assessed from the discussion provided regarding ethical code of conduct followed by the organization. The best practice followed by the company is that it does not sacrifice long-term values in order to attain short-term goals. Thus, values are followed in a continuous manner as well as given required priority. It is one of the main reasons that company has been able to attain its objective and known for appropriate management of the organization as well. It could be depicted from above discussion that appropriate leadership skills are available within the management of Amazon Inc as they are able to train the employees for the attainment of objectives of the organization and provide equal opportunity to each employee for proving them as well.
The company should appreciate tradition and values, but it also assesses new approaches and thoughts. As it is important for the leaders to understand when to act and when not to act and must know why a particular decision was taken, thus the same should be considered by the management. Leadership has the responsibility to identifying and reward involvement throughout goods will be achieved. Criticism encourages fears and praise encourages dedication towards achievement, same should be followed by the management. Every success has scope for progress. Leadership tries not to merge computer towards debrief and enhance event, method or product and same should be considered by the company. It is believed that most important role of leadership is to extend leadership and pleasure at all levels of the company and it should be followed to attain the overall objectives of the organization
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