This preview has intentionally blurred parts. Sign up to view the full document

View Full Document

Unformatted Document Excerpt

Quiz 1 Question 1 1 out of 1 points Managers who train and supervise the performance of nonmanagerial employees and who are directly responsible for producing the company's products or services are categorized as: Answer Selected Answer: first-line managers Correct Answer: first-line managers Response Feedback: This is the fundamental description of first- line managers. Question 2 0 out of 1 points From the start, has been in a hurry to be a success. According to company founder and chief executive officer (CEO) Jeff Bezos, Our initial strategy was very focused and very unidimensional. It was GBF: Get big fast. We put that on our shirts at the company picnic. With billions to spend from its initial stock offering (Amazons stock quickly rose to over $100 per share), Amazon spent $400 million to build eight high-tech warehouses across the country. Why spend that much for warehouses? In theory, each was capable of shipping 60 million items per year, and Amazon needed to control the entire buying transaction, beginning with online ordering, proceeding to quick warehouse handling and boxing, and ending with timely shipping and delivery. And, believing that their growth would parallel its own, Amazon then spent $350 million to buy large shares of two Internet retailers, and promised the ability to deliver thousands of items from gourmet foods to CDs and movies to customers homes in 11 major cities within one hour after an order was placed. was supposed to grow because Americans spend over $30 billion a year on their pets, but the pet industry was still comprised largely of small family-owned stores and was not yet dominated by a big box retailer like Home Depot. Unfortunately, Amazon grew so fast that it soon lost control of the basics. Despite the billions it had raised, Amazon burned money so quickly that it had to issue bonds to raise another $2.2 billion to keep the company running. Still, it had only enough business and cash to run six of those new warehouses. Consequently, the company took a $400 million loss to close two of the warehouses and lay off 1,500 people. Furthermore, the six remaining warehouses were poorly run. Defective products which should have been returned to manufacturers sat on the shelves wasting space. Mystery orders, like a truckload of unordered kitchen knives, kept showing up. Instead of declining the deliveries, workers put whole truckloads of unordered items on the shelves. Amazons frustrated chief of operations said, We kept it allwe just kept it. We put it on the shelf and said, I dont know. In fact, Amazon had so much unsold inventory in its warehouses that CEO Bezos sent out an email with a point-blank message, Get the crap out. Finally, Amazons $350 million investment in and evaporated when both filed for bankruptcy.... View Full Document

End of Preview

Sign up now to access the rest of the document