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“Amazon as an Employer” Case Study

Mohammed Umar Ben Naqvi, Gaurav Mandekar, Divyanshu Singh

Samrath Singh Kalra, Dubasi Durga Malleswara Prasad, Zoheb Arif, Tameem Ahmed

Master’s in Business Administration, Golden Gate University

LEAD 300

Dr. Bruce Wasserman

January 22, 2025

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Executive Summary

Amazon started by Jeff Bezos in 1994 in the form of an online bookstore and has

become a global leader in e-commerce, cloud computing, artificial intelligence, and logistics.

The report will thus address leadership practices, organizational structure, work culture, and

sustainable growth strategies at Amazon compared to Google's people-centric management

model through Project Oxygen.

Instead of growing unrestrained, Jeff Bezos's leadership obsessed about customers,

made aggressive innovations, and had the long-term objectives of supporting Amazon's

worldwide dominion. However, this came at a cost: the challenge of employee retention and a

toxic work culture for employees. In his stead, Jassy has taken a more pragmatic choice in the

operational side, leaning toward operational efficiency, ameliorating workplace conditions, yet

maintaining a level of hitherto unfound innovation at Amazon.

Google's Project Oxygen, emphasizing coaching, well-being, and collaboration,

provides a lens to evaluate the practices of Amazon. While Amazon excels in performance and

leadership in the marketplace, Google places higher value on employee development and

satisfaction. The comparison starkly indicates that there needs to be an equally balanced

innovation-executed towards employee wellness.

SWOT and Resource-Based View (RBV) outline such strengths that Amazon holds in

the domains of technological innovation, global logistics, and customer loyalty. Nevertheless,

an ongoing challenge is employee turnover and stringent workplace policies. Exist substantial

opportunities for diversification and expansion into larger markets, yet, in the process, the

threats posed by competition and regulatory actions loom quite huge.

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Amazon's hierarchical structure certainly supports the scalability of many operations,

but in doing so, it stifles any form of collaboration and defines the unsatisfactory option for the

workplace culture. The decision-making process of "working backward" also emphasizes

customer-centric innovation while placing a real burden on other more zero-standard

logistically and culturally push-on motions, such as demands for a return to the office.

In conclusion, Amazon needs to adopt a more balanced leadership approach wherein

few characteristics stated within Google's people-focused practices are drawn. By promoting a

level field in the workplace culture, investing excitingly in employee development, and fine-

tuning its organizational processes, Amazon can sustainably realize its leadership potential

while addressing internal challenges. Ambidextrous leadership is what will eventually provide

that harmony of supporting innovation alongside long-term sustainability

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Leadership

Common Leadership style of Jeff Bezos and Andy Jassy

• Both demonstrate effective leadership styles during their tenure with Amazon

• Both have played significant role in transforming, shaping the culture and performance

at Amazon where employee is expected to work hard, own it and deliver results, this

led to continuous improvement where employees are encouraged to take risk and

innovate

• Both took steps to empower people’s potential

• Both knew the importance of innovation which led Amazon reputation as company that

disrupted traditional industries and market this helped Amazon to stay ahead of its

competitors and continue to grow and expand new market

• Amazon culture has been as data driven decision making

• Both delegated responsibility

• Emphasized on bold and long-term vision which inspired others

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Different Leadership style for Jeff Bezos and Andy Jassy

Jeff Bezos leadership style Andy Jassy leadership style

Known for his bold and innovative approach Known for his operational expertise focus on

execution

In his tenure Amazon had enter retail Building AWS into a$45 billion business

business, cloud-based solution and

technology innovation in various area

Credited for transforming and innovation Ability to deliver results

Direct, assertive, confrontational Collaborative and inclusive

Work culture under him has been criticized Work culture under him was to address issue

for its intensity and data driven decision and build more sustainable and inclusive

making culture

Focus on customer obsession which has Customer satisfaction and focus on

become core culture of Amazon understanding

SCARF threats or rewards by Bezos and Jassy

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Comparing the management and leadership styles at Amazon and Google.

Google's management style is not centralized which focuses more on collaborative

work culture. The company has a flatter organizational structure. Google encourages teamwork,

communication, and creativity. Google's leadership values include openness, respect, and a

focus. The company encourages employees to work on passion projects and provides them

with resources to explore their interests.

• In terms of leadership style, Amazon is known for its emphasis on individual

accountability and discipline, while Google is known for its more collaborative and

inclusive approach.

• However, both companies place a high value on innovation, customer satisfaction, and

using data to drive decision-making.

• Ultimately, while the management and leadership styles of Amazon and Google differ,

both companies have been highly successful in the tech industry, and each approach

has its own strengths and weaknesses

Bezos and Jassy are ambidextrous leaders

• I think both Jeff bezos and Andy Jassy were ambidextrous leaders as both were able to

simultaneously focus on exploiting amazon core business while exploring new

technology through innovation.

• They both had customer centric focus keeping trust and transparency.

• The Amazon culture has developed decision making through data driven approach.

• Both had long term vision for the company. Jassy encouraged open communication and

criticism through teamwork to solve problems.

• Both had ability to counter changing market condition and pivot company strategy.
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Letter Jeff Bezos wrote to Amazon’s shareholders just before he stepped down

Jeff Bezos wrote letter as CEO of Amazon to its shareholders shows company’s

commitment toward innovation, customer focus and long-term success, profitability and

growth. The letter shows the past achievement, commitment of Amazon towards customer and

its shareholders. The company’s goal is to create value for everyone. It is the best place on

Earth as best employer and Safest place to work with. Amazon uses the internet to create real

value for its customer. Pursue online commerce opportunities in other area we see substantial

opportunity in the large markets we are targeting. Fundamental measure of our success will be

shareholders value that we create over long term, this value will be direct result of our ability

to extend and solidify our current market leadership position. Aggressive approach of Amazon

for expansion and leverage customer base. We will continue to learn from both our successes

and our failures. We will work hard to spend wisely and maintain our lean culture. Focus on

hiring and retaining versatile and talented employees. Success will largely be affected by our

ability to attract and retain a motivated employee base; each must think like as owner.
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Organizational Design

The structural organization of Amazon is founded on efficiency and innovation,

allowing the company to optimally expand and reap lucrative opportunities in multiple

industries such as e-commerce, cloud computing, logistics, and media. The infrastructure

favours flexibility and efficiency; in balancing autonomy with a big dose of accountability.

This combination allows Amazon to fulfil the requirements of a fast-evolving market while

keeping its eyes on long-term goals.

Referring to the functional area of the structure and authority, a distinctive model is

developed for the vast operations aligning with core company strategies. That is, a mixed

hierarchical and functional specialisation model; teams dedicated to an area such. Some of

these areas include retail operations, Amazon Web Services (AWS), logistics, and artificial

intelligence. With this, deep expertise in each area is harnessed under one direction. Amazon

encourages innovation and efficiency in its operational silos by allowing a superior level of

autonomy to teams.

Amazon further showcases its by now famous "two-pizza teams" philosophy, wherein

it deliberately keeps teams small and agility. This decentralized model encourages an

environment of invention: teams can act rapidly and concentrate on solving problems without

being bogged down by too much red tape. It also encourages a sense of ownership and

responsibility, whereby each department is expected to follow through on results that support

the company's strategic objectives. Hence, such a model has been recognized as vital to the

development of innovations like Alexa and AWS.

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Moreover, regional agencies advance the company's international operations along the

lines of local market strategies. Such localization allows Amazon to compete on different world

planes by adjusting its offerings in accordance with the local customers' preferences and needs

while achieving competent centralization effects.

The success of this design is possible because it puts the organization in a position to

retain control over Amazon's enormity while permitting the agility of its parts. In such

hierarchical structure, it is ensured that different business units are aligned through mechanisms

for scale-up, while functional specialization provides experts for operational excellence. But

the structural setup can also limit. As the focus is very much on performance attrition and

accountability, it leads to silos within companies which cut out a lot of teamwork and exchange

of knowledge externally. This would severely impinge on cross-functional initiatives and

would make it difficult for collective organizational intelligence to be exploited in its entirety.

Its balance between innovation and operational efficiency makes it an ambidextrous

organization. Its small-team model perversity promotes a steady stream of bright new ideas for

exploration and innovation. At the same time, the hierarchical structure with competence on

scalability allows the firm to exploit existing resources and capability with utmost efficiency.

This duality has been a key pillar to Amazon's stay-out front all its life, from e-commerce to

cloud computing.

Although organizational design is a prime propellant of Amazon's success, overcoming

siloed communication challenges and anchoring on greater collaboration can contribute to

improving it further. A more cohesive and inclusive culture could better integrate collective

innovation into superior operations and continued growth to contend inside the multiplying

competition of the market worldwide.

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Critical Thinking and Decision-Making:

What stands out about Amazon’s management and leadership style is the use of a data-

driven managerial and customer-centric model focused on innovation, rather than operational

effectiveness, and more importantly, on customer satisfaction. At each level of Amazon’s

hierarchy, every decision begins with a clear leadership principle such as “Customer Obsession”

and “Bias for Action”, so that with every decision they make, every action is a stepping stone

towards the overall vision goal to achieve customer satisfaction. These principles are

considered at both the strategic level and operational level of the organization.

Particularly unique is Amazon’s working backward decision-making approach where

their teams first design the customer experience they want to deliver and then systematically

engineer all the processes needed to make that a reality. Instead, Amazon mobilizes the teams

to draft a press and address questions alongside the release that highlight what the customer

stands to gain from the product or service before any new offering is proposed. This strategy

enhances an organization by forcing its employees to proactively tackle the problems they can

expect to face and devise the right plans that provides them with opportunities.

The second factor influencing the adopting and implementing of policies on measuring

performance at Amazon is the company’s belief in the efficacy of a results-based approach to

decision making. Performance is evaluated through a set of metrics so that competition is not

vicious and damaging but fierce enough to root out all weak and unnecessary components.

One of the most criticized aspects of this pervasive American culture is the rank

ordering of employees where each employee is assessed in relation to other employees. While
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this has drawn criticism for its brutal work environment, it fits quite squarely within Amazon’s

idea of always being ready for "Day 1"- a need for constant enhancement and innovation.

In contrast the management philosophy espoused at Google especially as it’s seen in

Project Oxygen is more targeted towards the people at the decision-making level when it comes

to issues of wellbeing, collaboration, and leadership. At Google, it is expected that the

managers are meant to facilitate team success and therefore the focus is on the more supportive

and empowering aspects of work. It brought to light eight essential behaviours of effective

managers, among them being a good coach, “help employees with career development.” All of

which are in line with the firm’s long term talent engagement and nurturing strategy.

Google makes decisions using far more comprehensive data analysis. However, it puts

much greater attention on staff opinions and building a consensus. Managers receive tangible

information from the data through, for example, the Upward Feedback Survey to improve team

communication, satisfaction, and work-life balance. It is an approach that uses data and

analytics while, at the same time, showing empathy towards the needs of the employees. In this

way, decisions can be backed with data but still correlate with what employees want.

Additionally, the fact that Google adopts a less rigid organizational structure is another

notable attribute of their decision-making process which fosters self-governance and creativity.

Managers are supposed to facilitate instead of supervising employees so that they can complete

the projects on their own. This is certainly not the case in Amazon where, with their

management-oriented and controlling style, it is all about involvement into the performance

asking whether it meets the company goals.

This shows two different types of leadership by Amazon versus Google in thinking and

decision-making. The model Amazon follows is one of operational rigor and customer
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innovation at the expense of comfort and work-life balance for employees. On the other hand,

Google believes that a motivated and supported workforce is the only way to drive sustained

success and bases its focus on employee satisfaction and leadership growth. Although both

organizations use data and analytics in its decision-making processes, their priorities and

approaches reflect the broad spectrum of best management practices applicable in the modern

business environment.
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Key Comparisons:

Aspect Amazon Google (Project Oxygen)

Decision- Data-driven, customer-focused, Data-informed but collaborative,

Making Style bold, and sometimes ruthless. emphasizing consensus and human

judgment.

Focus Area Customer obsession and Employee well-being, engagement,

operational excellence. and leadership development.

Manager’s Results-oriented, competitive, Supportive, coaching, and

Role and performance-driven. empowering.

Guiding Aggressive innovation to sustain Nurturing talent to drive long-term

Philosophy market leadership and disrupt innovation and organizational

industries. growth.

Leadership Managers lead by pushing Managers lead by fostering team

Philosophy boundaries and maintaining high satisfaction, career growth, and

standards. stability.

Unique Rigorous performance metrics Oxygen Project’s Eight Behaviours

Features and “working backward” method. of Effective Managers.

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Situational Analyis

To analyse Amazon's business status, we must use formal tools including SWOT, PEST

and Porter’s Five Forces. Our analysis delivers complete insights into Amazon's core strengths

internal challenges competitive market situation and external environmental factors.

SWOT Analysis

Strengths:

• Market Leadership: Amazon rules online shopping and cloud technology worldwide

with strong market leadership. Its popular brand creates rock-solid trust with all its

customers.

• Innovation: Through AWS cloud innovations and automated logistics solutions

Amazon creates a difference compared to other companies.

• Customer-Centric Model: Amazon works hard to deliver good service that makes

customers want to stay with Amazon and buy more because of Prime memberships

and product suggestions.

• Global Reach: Amazon runs businesses in several nations to achieve economies of

scale and spread its revenue generation.

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Weaknesses:

• High Employee Turnover: People leave their jobs in high numbers due to Amazon's

challenging work system that damages its ability to keep skilled workers for the long-

term.

• Dependence on Developed Markets: Amazon depends heavily on revenue from North

America and Europe making it expose to economic challenges in these regions.

• Thin Profit Margins: To expand quickly Amazon sets prices very low and spends

heavily which leads to small profits that create financial danger.

Opportunities:

• Emerging Markets: Introducing Amazon services into fast-growing markets across

India South East Asia and Africa can generate new sources of profit.

• Technological Advancements: By integrating advanced technology systems into

operations Amazon can make its processes faster and offer better service delivery.

• Sustainability Initiatives: Businesses that invest in renewable power supplies while

following sustainability practices will earn better public trust and better serve their

customers.

• Healthcare Sector: Through Amazon Pharmacy the company is exploring new

healthcare services to expand beyond its core operations.

Threats:

• Regulatory Scrutiny: The rising number of antitrust reviews of data privacy regulations

around the world may force Amazon to change the ways it operates.
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• Intense Competition: Major competitors Walmart and Alibaba work against Amazon's

market leadership alongside Microsoft in cloud technology.

• Economic Downturns: A worldwide economic slowdown combined with rising prices

and lower shopper buy rates may slow Amazon's financial growth.

• Cybersecurity Risks: As a major technology firm Amazon experiences significant

threats from data security threats and cyberattacks.

Porter’s Five Forces Analysis

1. Threat of New Entrants:

• Competitors find it hard to enter Amazon's market because of big technical

requirements and cost while loyal customers choose Amazon often.

• Amazon’s large network capabilities and price advantages make it hard for new

companies to start competing with them.

2. Bargaining Power of Suppliers:

• Amazon's supplier network depends on the company, yet Amazon uses its size and

market position to set its own buying terms.

• The company develops its own brand products which allow it to source fewer items

from outside suppliers.

3. Bargaining Power of Buyers:

• Customers can find product options from several alternative platforms leading to

strong buyer power.

• Amazon protects itself by offering affordable prices plus easy shopping plus diverse

inventory.

4. Threat of Substitutes:
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• The retail sector faces moderate danger of customer choice because buyers can buy

from both physical stores and other online retailers. Amazon Prime provides a robust

collection of benefits which attracts many customers.

5. Industry Rivalry:

• The business faces tough competition from Walmart eBay Alibaba and Microsoft

Azure Google Cloud.

• By creating new options and improving how customers feel when they shop Amazon

stays ahead of competitors.

PEST Analysis

I. Political:

• Industry authorities in America and the European Union examine Amazon closely

because of suspected market dominance and tax evasion rules.

• The rules controlling international commerce together with trading duties will affect

Amazon's worldwide business connections.

II. Economic:

• The increase of economic stress and price rises will reduce customer spending on

personal wants.

• Customers continue to need and purchase necessary products including cloud

computing services.

III. Social:

• Simmering consumer demand for sustainable products creates perfect opportunities

for Amazon to adapt its delivery standards and product ranges.

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• The increasing use of online shopping and digital platforms benefit Amazon's main

operations thanks to COVID-19.

IV. Technological:

• Current AI robotic and cloud computing technology opens new ways for Amazon to

work more productively and introduce new ideas.

• Cybersecurity stays at the top of our list to keep customer information secure and

build lasting trust.

Key Takeaways:

Amazon runs in a fast-changing market with strong advantages such as top position in

sales and new ideas. The company needs to fix existing operational issues alongside talented

competition while dealing with public oversight requests to grow further. Through market

growth in new regions plus improved sustainability and tech use Amazon plans to stay ahead

of rivals. Our findings show companies need to combine new ideas with government rules

and employee contentment to maintain their success over many years to come.
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Resource and Capabilities

Amazon's success is fuelled by its ability to harness diverse options and resources that

afford a competitive advantage across various industries. The former is done strategically by

aligning the resources to factory innovation, not market hegemony, but simply to meet and

exceed customer expectations and desires.

Key Resources

1. Technological underpinning: AWS forms the backbone of the technological

capabilities of Amazon. It is a cloud storage leader and, necessarily so, contributes

significantly to the profit margins of Amazon by enabling companies all over the planet

to grow and innovate.

2. Logistics and Supply Chain: The advanced logistics/distribution network of Amazon

covers warehouses, fulfilment centres, and delivery fleets. This makes it easy and quick

to deliver products. Furthermore, its fulfilment centres, with the use of automation and

robotics, enhance efficiency and accuracy.

3. Human Capital: This workforce comprises very quality engineers, product designers,

and business heads. This drives innovation across the domain of their businesses.

However, for retaining the workforce, limitations remain, but this is because of

workload pressures.

4. Brand Equity: The trust and loyalty gained from millions of customers around the

globe because of its do-or-die commitment to the satisfaction of customers can also be

termed factors of Amazon.

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5. Data and Analytics: Amazon has a lot of customer data and thus takes insights from

it, or the company's algorithm powers personalized recommendations that give better

user experiences and improve their operations.

How Resources are Utilized and Competitive Advantage

Ableness for Amazon to synergically deploy its resources simply reinforces its

competitive positioning because, based on example premises, development in AWS merely

finances to a certain extent the innovations provided along in its logistical infrastructures of e-

commerce business in the augmented one, allowing the company to take advantage of emerging

markets and remain at the top in established markets as well.

Sustainability

Although Amazon has formulated a well-advanced resource system, it needs to

overcome specific challenges to achieve long-term sustainability:

• Workforce Well-Being: Improving employee satisfaction and retention is of core

importance to maintaining innovation and enabling operational excellence.

• Regulatory Pressures: Amazon needs to adjust to operate in compliance with growing

labour regulations, increasing data privacy, and restricting carbon emissions imposed

by the government.

• Environmental Impact: Amazon's "Climate Pledge" underscores its intention to

achieve net-zero carbon by 2040. Investment in renewable energy and sustainable

packaging is worth noting as short-circuiting actions toward reducing Amazon's

environmental footprint.
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By evolving and developing the allocation of its resources, Amazon can continue to do

so to fit into this ever-evolving modern world while maintaining competitive advantage against

global and internal challenges.

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Business Rhythm and Metrics

Amazon is characterized by a precise tempo, an extremely fast rate, and a tireless focus

on performance. The company's operating tempo is directly in line with innovation and

customer satisfaction, enabling it to lead in fiercely competitive industries.

A Rhythm of Business

The rhythm of Amazon surged ahead of competing firms by precise, speedy, and

relentless dedication to results towards continuous innovation. Some points of special note

found here include:

1. Rapid iteration cycles: Teams are constantly working on very short development

periods and can quickly test, adjust, and release new products or services. This allows

Amazon to stay in touch with the demands of fluctuations in the marketplace.

2. Quarterly Business Reviews (QBRs): In the same manner, quarterly Amazon brings

the spotlight on a review of its business units. A reasonable part of these reviews center

on KPIs to ensure the alignment of goals with that of the organization.

3. Customer-Based Decision-Making: At every stage, decisions depend on customer

data and customer feedback, epitomizing the idea of "customer glued to every step."

Metric Information

Amazon has a comprehensive metrics system to manage performance across all layers

of the organization. These metrics are essential to providing accountability and maintaining the

culture of continuous improvement:

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1. Customer Descriptive Metrics

• Net Promoter Score (NPS) measures customer happiness and loyalty.

• Delivery time performance & Availability per product track efficiency of logistics.

2. Financially dimensioned Dimensions

• Revenue growth, operating income, and margins continue to be put under close

supervision to ensure that financial health is sustained.

• Profit-generating AWS is regarded as one of the most significant contributors to overall

revenue growth.

3. Employee Descriptive Metric

• Retention rates and employee satisfaction have been noted, though these bring out

certain concerns around work pressure and turnover.

• Individual and team productivity metrics have been built up.

4. Environmental Metrics

• Progress being made on sustainability goals like carbon reduction and renewable energy

with variance to corporate commitment attached towards the environment.

Effectiveness of Business Rhythm

Amazon's rhythm keeps it cutting-edge in terms of competition and innovation. The

rhythm of constant metric evaluation ensures the target is met accurately and that corrective

action is implemented immediately when operations vary from the standards. However, such a

fast-paced rhythm puts unbearable strain on employees, leading ultimately to burnout and

demoralization.
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Recommendations for Improvement

To up its business rhythm and metric system, Amazon must:

• Include Employee Well-Being Metrics: Maintain an ongoing check on the

satisfaction and mental health of employees in order to develop a healthier work

environment.

• Boost Cross-Functional Cooperation: Minimize silos by means of integrated

performance reviews that gather input from various departments.

• Guidance toward Long-Term Sustainability: Extend the metrics that assess progress

toward achieving ESG goals in line with stakeholder expectations.

With the refinement of its business rhythm and improvement of its measurement system,

Amazon can strike a balance between operational excellence and long-term sustainability.
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Alignment and Performance

Looking at the practices of Amazon and Google, focusing on alignment and

performance, as well as metrics and tracking – both companies have achieved significant

success but differ fundamentally in their approaches.

Difference in Approach

Amazon: Amazon’s mission is to be the most customer-centric company in the world. This

focus is evident in its operations, which prioritize efficiency, scalability, and constant

innovation. The company's emphasis on results has driven remarkable growth but has also

created challenges in retaining talent.

1. Customer Satisfaction: Amazon prioritizes quick delivery, competitive pricing, and

convenience. Metrics such as delivery lead times and customer satisfaction scores

reflect this focus.

2. Innovation: Key developments include Prime memberships, AWS, and features like

one-click shopping. These have been critical to aligning operations with the mission of

customer-centricity.

3. Scalability: The company rapidly scales operations to meet demand, as seen in the

expansion of warehouse capacity.

4. High-Pressure Work Culture: A strong focus on performance drives results but

contributes to high turnover rates.

5. Rapid Growth: Amazon achieved over 800% revenue increase in one year,

showcasing its alignment between strategy and operational goals.

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Google: Google, however, emphasizes employee well-being and collaboration, aligning its

workforce with its mission of organizing the world’s information. By fostering a supportive

work environment, the company ensures sustained innovation and high performance.

1. Customer Satisfaction: Google prioritizes delivering accurate, fast, and accessible

information across its platforms. Metrics such as search query accuracy, user

engagement, and retention rates are central to measuring success.

2. Innovation: Google has revolutionized multiple industries with products like Search,

YouTube, Google Maps, and Android. Its focus on continuous innovation in AI, cloud

computing, and automation is key to maintaining its market leadership.

3. Scalability: Google has grown through product diversification and by leveraging its

cloud infrastructure. Its ability to scale its services globally, such as Google Cloud,

reflects its strategic emphasis on efficiency and global reach.

4. Work Culture: Google’s culture is cemented around collaboration, openness, and

creativity. The company fosters an environment where employees feel empowered to

propose new ideas and solutions, encouraging a sense of ownership and innovation.

5. Employee Well-Being: Google is known for offering excellent benefits, career

development opportunities, and promoting work-life balance, which contributes to

lower turnover rates and higher job satisfaction.

6. Sustained Innovation: Through initiatives like 20% time (allowing employees to

dedicate time to projects outside their core duties) and its emphasis on research, Google

ensures a constant stream of innovative products and services.

7. Long-Term Growth: Google’s approach to long-term growth integrates continuous

employee feedback into management practices, supporting sustainable innovation and

ensuring alignment between employee and company goals.

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In Comparison,

Topic Amazon Google

Company Customer satisfaction and rapid Employee well-being and

Focus scalability innovation

Culture Competitive and high-pressure Collaborative and supportive

Effectiveness Speed, scalability and market High retention and team

dominance outcomes

My Takeaways:

1. Empowerment: Project Oxygen identified key managerial aspects that helped align

employees with their organizational goals.

2. Collaboration: A flexible and inclusive culture promotes teamwork.

3. Retention: Teams with effective managers show higher retention rates.

4. Long-Term Focus: Google integrates employee feedback into management practices

to maintain alignment and ensure sustainability.

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Metrics and Tracking

Amazon: Amazon uses data extensively to ensure operational efficiency and meet customer

expectations. Metrics are closely tied to their mission of customer satisfaction.

1. Customer Centricity: Metrics like delivery times, repeat purchases, and Net Promoter

Scores are central to evaluating success.

2. Financial Growth: Amazon tracks revenue and market valuation, both of which

demonstrate rapid growth and operational success.

3. Employee Productivity: Performance reviews and monitoring systems ensure high

efficiency but can add pressure to employees.

Google: Google, on the other hand, employs people analytics to track performance, focusing

on improving management and employee satisfaction.

1. Feedback Systems: Innovative tools and upward feedback surveys to measure data on

employee satisfaction and managerial effectiveness.

2. Managerial Impact: Teams with high-performing managers consistently outperform

others, with improved retention and innovation rates.

3. Use of Metrics: Google uses data to identify areas for improvement, such as targeted

training for managers based on survey results.

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In Comparison,

Topic Amazon Google

Tracking Quantitative metrics basis Feedback-driven data analytics

Methods operations

My Takeaway:

• While Amazon and Google take distinct approaches to management. While Amazon

focuses on operational efficiency and customer satisfaction, achieving rapid scalability and

market dominance – this approach can strain employees.

• Google emphasizes employee well-being and collaborative work environments, leading to

higher retention and sustainable innovation to align with their goals. While this is a more

employee centric approach, both strategies have their own benefits and drawbacks that

determine how various functions succeed across the two organizations.

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Change Management

Amazon's change management processes are embedded into the organizational fabric

of the company and its commercial strategies, which allows the company to remain at the peak

of innovation whenever the market conditions change. The company keeps an adequate

combination of strategic planning and flexibility to successfully navigate disruption while

leading major changes in the industry. This agility is what has enabled it to advance in e-

commerce, cloud computing, logistics and media sectors.

Vision and Long-Term Orientation

Change management at Amazon derives its core philosophy from "Customer

obsession" and "long-term thinking". Each of the major changes that a company wishes to

implement is considered concerning either improvements to customer experience or fulfilment

of strategic objectives, either through new product development, operational efficiency or

market expansion, with long-term focus ensuring that the changes would be sustainable and

scalable.

Jeff Bezos's philosophy of "Day 1" is essentially about thinking like a startup

continuously, thus maintaining complacency by putting flexibility and an innovative mindset

at the front.

With Andy Jassy, this philosophy has expanded to provide an emphasis on effective

change management on the workforce and strategizing on challenges posed externally such as

regulatory scrutiny and market volatility.

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Decentralized Decision-Making

The Two-Pizza Teams of Amazon play an essential role in its implementation of change.

These autonomous teams allow the changes to be implemented smoothly, quickly, and

iteratively. This decentralized approach nurtures agility, due to:

• The ability of teams to try innovative ideas, be ready to fail fast, and adapt whenever

necessary to a changing market.

• Distribution of ownership towards change across all parts of a business, thus

eliminating bottlenecks and ensuring accountability.

This approach has allowed Amazon scale innovations such as Prime, Alexa, and AWS

while staying responsive to customer needs.

Cultural Emphasis on Innovation and Experimentation

Amazon's leadership principles-in particular "Invent and Simplify" and "Learn and Be

Curious"-drive its change management philosophy. These principles cause employees to:

• Nurture experimentation as part of their jobs, thus building a culture that favors failure

as a prerequisite for success.

• Never pass up an opportunity for improvement and innovation, no matter how minor

their level or function may seem.

That surrendering to a growth mindset has permitted Amazon to shift course and

implement major changes, from AWS to going brick-and-mortar with Amazon Go.
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Mechanisms to Drive Change

Amazon employs a variety of mechanisms to manage change effectively:

1. Executive Sponsorship and Alignment

• Top leadership engages thoroughly in change initiatives to align the total organization.

• Every memo is verified by leadership, via an elaborate procedure involving a "six-

pager," which mandates that they justify their decisions, else they see changes

implemented.

2. Data-Driven Decision-Making

• Data-based assessments and actions give Amazon the capacity to review and architect

decisions to predict expected results and change punch-timely.

• Real-time feedback loops, often enabled by machine learning and analytics, allow

continuous optimization of changes.

3. Training and Upskilling

• Amazon undertakes training programs to prepare employees to transition in certain

situations, to prepare employees for the chance of learning new technologies or changes

made by organizational structures.

• Career Choice gives employees opportunities for reskilling geared toward aligning

employees and capabilities with the changing environment of the organization.

Challenges in Change Management

Despite its successes, Amazon faces challenges in managing change, particularly about

its workforce and culture:

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1. Employee Resistance

The highly pressurized environment and unrelenting focus on results lead to stress and

resistance among employees against implementing changes.

2. Siloed Communication

Amazon's decentralized structure fosters innovation but simultaneously hampers large-

scale change programs by filtering information between functions.

3. External Scrutiny

Impediments against seamless change are exacerbated by regulatory and societal

pressures about how employees are treated, including those within the purview of

antitrust.

Key Success Stories in Change Management

1. Amazon Web Services (AWS)

• A transformation from a retail-oriented company to that of a cloud computing giant

necessitated massive organizational changes regarding its technical skill set and

proper infrastructure.

• That pivot led by Andy Jassy showed the transformation of Amazon in anticipation

of following market trends, allowing a readjustment of its methods to seize the

upcoming opportunities.

2. Evolution of Prime Membership

The growth of Prime, from free two-day shipping to a full-fledged subscription service

including streaming and exclusive discounts, demonstrates Amazon's talent for

adapting its offerings in response to consumer demand and advances in technology.

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3. Response to COVID-19

• The company has been quick to adapt its operations to the sudden surge in e-commerce

demand with employee safety in mind during COVID-19.

• The changes included introducing advanced logistics solutions to change delivery

timelines, and they also introduced contactless delivery.

Opportunities for Improvement

1. Collaboration amongst Different Workforce

Improving siloed communication and encouraging cross-function collaboration will

allow Amazon to attack big, organization-wide changes more effectively.

2. Striking a Balance between Innovation and Sustainability.

While a focus on rapid change fosters innovation, placing an additional emphasis on

employee well-being and work-life balance would improve retention and engagement.

3. Dealing with External Pressures

Strong relationships with regulators and greater transparency in communication would

allow Amazon to be more proactive in responding to external changes.

Key Takeaways

These strategies in managing change have been crucial for Amazon's success in

changing the industry and remaining competitive. These strategies effectively balanced

decentralization and strategic alignment encouraged a culture of innovation within leadership,

and based decision-making on data. But addressing issues of siloed communication and

resistance from employees is the key to sustaining its leadership through future disruptions.
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Summary

Amazon, founded by Jeff Bezos in 1994 as an online bookstore, has grown into a global

leader in e-commerce, cloud computing, AI, and logistics. The report examines Amazon's

leadership practices, organizational structure, work culture, and sustainable growth strategies

while comparing them to Google's Project Oxygen. Key themes include:

Leadership Styles:

• Bezos emphasized customer obsession, aggressive innovation, and long-term goals.

• Andy Jassy has shifted focus to operational efficiency and employee well- being while

maintaining innovation.

Comparison with Google:

• Amazon excels in market performance but faces challenges in employee retention and

culture.

• Google's emphasis on coaching, well-being, and collaboration highlights a need for

Amazon to balance innovation with employee wellness.

Challenges:

• High employee turnover and stringent workplace policies.

• Competitive and regulatory pressures.

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Leadership Analysis

1. Commonalities Between Bezos and Jassy:

• Both emphasized customer-centric innovation and bold, long-term vision.

• Delegated responsibilities effectively while driving data-driven decision-making.

2. Differences:

• Bezos: Bold, confrontational leadership, known for disruptive innovations like AWS.

• Jassy: Collaborative, inclusive, focused on sustainable workplace culture.

3. Comparison with Google:

• Amazon prioritizes individual accountability, while Google fosters collaboration and

employee development.

• Google's leadership promotes team satisfaction and stability, contrasting with

Amazon's high-pressure culture.

Organizational Design

Amazon employs a hybrid organizational structure blending hierarchical and functional

specialization. Key features include:

1. Two-Pizza Teams: Small, agile teams to foster innovation and autonomy.

2. Global Operations: Regional agencies adapt to local markets while ensuring

centralized strategic alignment.

3. Challenges: Siloed communication limits cross-functional initiatives.

Key Successes:

• Innovations like Alexa and AWS.

• Scalability and operational efficiency.

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Critical Thinking and Decision-Making

Amazon's decision-making reflects a customer-centric and data-driven approach:

1. "Working Backward" Method: Teams design solutions based on desired customer

experiences.

2. Metrics-Driven Performance: Emphasis on results, though criticized for fostering a

high-pressure environment.

Google's Contrast:

• A collaborative and employee-focused decision-making process.

• Feedback-driven tools like Upward Feedback Surveys enhance team satisfaction and

innovation.

Resource and Capabilities

Amazon's competitive advantage stems from:

1. Technological Infrastructure: AWS, a significant profit driver.

2. Logistics Network: Advanced fulfilment centres and automation.

3. Brand Equity and Customer Loyalty: Driven by relentless focus on customer

satisfaction.

4. Challenges: Workforce retention and environmental sustainability.

Sustainability

Amazon aims for net-zero carbon emissions by 2040, focusing on renewable energy

and sustainable packaging. However, challenges like regulatory pressures and workforce well-

being persist.
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Change Management

Amazon's agility in implementing change ensures its competitive edge. Key mechanisms

include:

1. Decentralized Decision-Making: Autonomous "Two-Pizza Teams" streamline change

implementation.

2. Cultural Emphasis on Experimentation: Leadership principles encourage innovation

and learning from failures.

3. Challenges: Siloed communication and regulatory scrutiny.

Comparison with Google

1. Amazon:

• Customer obsession and rapid scalability.

• High-pressure work culture with a focus on performance metrics.

2. Google:

• Employee well-being and collaborative culture.

• Emphasis on long-term innovation and leadership growth.

Recommendations for Improvement

1. Enhance Employee Well-Being: Integrate metrics for mental health and satisfaction.

2. Foster Cross-Functional Collaboration: Reduce siloed communication to improve

collective organizational intelligence.

3. Balance Innovation with Sustainability: Address regulatory challenges proactively

while promoting a healthier work environment.

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Team Participation

Team Member Responsibility

Mohammed Umar Ben Naqvi Executive Summary

Gaurav Mandekar Leadership

Mohammed Umar Ben Naqvi Organizational Design

1. Critical thinking/Decision Making

Divyanshu Singh
2. Situation Analysis

1. Resource & Capabilities

Dubasi Durga Malleswara Prasad
2. Business Rythm

1. Alignment and Performance

Zoheb Arif
2. Metrics and Tracking

Samrath Singh Kalra Change Management

Tameem Ahmed Summary

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Bibliography and References

• Bezos, J. (1997). Shareholder Letter.

• Garvin, D. A., Wagonfeld, A. B., & Kind, L. (2013). Google’s Project Oxygen: Do

Managers Matter? Harvard Business School.

• Bhatnagar, J., & Jaiswal, S. (2016). Amazon as an Employer. Ivey Publishing.

• Research Methodology. (2023). Amazon Organizational Structure. Retrieved from

Research-Methodology.net.

• Business Insider. (2025). Amazon’s Return-to-Office Challenges. Retrieved from

businessinsider.com.

• The New York Times. (2015). Inside Amazon: Wrestling Big Ideas in a Bruising

Workplace. Retrieved from nytimes.com