Amazons core values are consistent with their mission statement, catering to their consumers and subsequently adaptability. One of Amazon’s core values is to invent and simplify. Leaders expect and require innovation and invention from their teams and always find ways to simplify. They are externally aware, look for new ideas from everywhere, and are not limited by “not invented here. As we do new things, we accept that we may be misunderstood for long periods of time” (Amazon, 2018). Another one of Amazon’s values includes telling their leaders to think outside the box and be innovators (Amazon, 2018). Again, what is clear here is that Amazon does not have a tolerance for leaders simply focused on maintaining the status quo. Instead they chose to create a shared vision, which is one of Peter Senge’s (2013) five disciplines of a learning organization. Amazon’s most senior leaders are positioned atop seven departments responsible for reporting to Bezos the CEO (Dudovskiy, 2018). The company employs 560,000 worldwide and has a growing consumer segment of more than 300 million people globally (Dudovskiy, 2018).
Organizational Change at Amazon 4 Despite Amazon’s hierarchical organizational structure, they remain highly flexible and innovators in the industry which is normally a characteristic associated with a leaner structure. Dudovskiy (2018) stated “the online retail giant leads changes in the external business environment, it has caused disruptive innovation in e-commerce and currently it is about to cause a disruptive innovation in the global logistics industry. This is mainly due to visionary and efficient leadership by Amazon’s founder and CEO Jeff Bezos” (Dudovskiy, 2018). Key Changes at Amazon Since 1995, Amazon has been committed to expansion and innovators in multiple industries. They have consistently made changes to their organization to remain at the forefront of online retailers. A brief description of this company major change includes but is not limited to: • 1997 : The company applied changes to the ordering process. This introduced consumers to one-click ordering, which sped up ordering, and reduced their number of orders that were abandoned. • 1998 : Began including music and DVDs to their library • 1999 : Started selling video games, computer software, and smaller home- improvement items. • 2000 : Expanded their operations to overseas, they also began selling third-party items which accounted for $9.3 billion in revenue in the first quarter of 2018 (Molla and Del Ray, 2018). • 2005 : Amazon launched their exclusive membership program “Amazon Prime” which offers consumers free shipping, music, video content, and e-book rewards.
Organizational Change at Amazon 5 • 2007 : Launched its e-reader Kindle that by 2010 had earned the company $2.38 billion in sells (Amazon.com, 2018).
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- Spring '17
- Jeff Bezos, Amazon.