Amazon’s Organizational structure

5

Elements of organizational
structure
• Disadvantages and advantages
of amazon’s structure
• Work ethics of amazon
• Amazon – Organic model
• Determinants of the structure
• Implementation

of command Span of control Centralization and
decentralization
Formalization

RELATION OF
PAYMENT TO SKILL
LEVEL
INCREASED
PERFORMANCE
ENCOURAGEMENT
OF CREATIVITY

CUSTOMER

A OFFICIAL HIERARCHY OF AUTHORITY THAT DICTATES WHO
IS IN CHARGE OF WHOM AND OF WHOM PERMISSION MUST BE
ASKED

IS COMMONLY USED IN BUSINESS MANAGEMENT
IT REFERS TO NUMBER OF SUBORDINATES A SUPERVISOR HAS.

240 million Amazon customers
worldwide.
• Many potential buyers are looking
for products only on Amazon.
• A fair bit of “Traffic” from the very
first minute without having to pay for
extra advertising.
• You don´t need your own Shop
Software.
• By using the option „Shipping via
Amazon” (FBA) you outsource your
entire shipping logistics and benefit
from low shipping cost.
• Well established Amazon partner
program for affiliates

STRUTURE
Amazon Sales Charge –
depending on the
product category
between 7% and 20%
With the option
„Shipping via Amazon“
shipping costs have to be
included in the sale price
Several providers of the
same product can result
a price battle
Possibly limited
opportunities to directly
influence the display of a
product
Amazon — a potential
competitor
Dependency of Amazon

Amazon
Compliance with
Laws, Rules and
Regulations
Conflicts of Interest
Insider Trading Policy
Discrimination and
Harassment
Health and Safety

Cross functional teams
• Cross hierarchical teams
• Free flow of information
• Wide spans of control
• Decentralization
• Low formalization

strategy
• Organization’s size
• Technology
• Environment

in
experimentation
Competitive
payments
Competitive
internal compition
Internal
eutreprenual
projects
Organic model
essential to
innovation

A
MILLION EMPLOYEES
FLAT ORGANIZATION
RIGOURS
MANAGEMENT
HIGH
DEPARTMENTALIZATION

Work Environment in Amazon
Cutthroat work
environment
Ample opportunity
for them to build
upon their skillsets
The management
can be hit or miss
Employees receive
competitive benefits
and compensation
The company can
reward performance
without merit