Analyzing Amazon Using 7S Model

Analyzing Amazon using 7S Model

C OLL AP SE

The 7-S framework was first developed by two consultants, Tom Peters and Robert H. Waterman who were working at McKinsey and Co in the late 1970’s. (Peters & Waterman, 1980). In the Chapter 8, Amason talks about how the 7s Model connects the strategy with various levels of implementation. (Amason, 2011)According to the McKinsey website, the 7s model is a watershed model that addresses the critical role of co-ordination rather than structure in organizational effectiveness. (Enduring Ideas: The 7-S Framework, 2008) The framework consists of 7 elements and are divided in to hard elements and soft elements. The hard elements of the framework would be Strategy, Structure and Systems. The Soft elements would be Style, Shared Values, Skills and Staff. The company I choose to apply the &-S Model is Amazon. Strategy: The strategy of the company is to be able to sell everything on the website. Amazon has increased its customer base by building and maintaining robust websites. The company does business in 14 countries and has a separate domain for every country. The company adopts country specific strategies and implements them. A lot of Amazon’s success is attributed to the company’s customer service which the company trains and maintains efficiently. The company not only targets consumers but also sellers. Third party sellers are encouraged to sell on the Amazon Marketplace. This increases the catalogue and choice of products available to the customers. Amazon also boasts a great technological capabilities. Its cloud services are a huge hit and also provide web service to customers. Structure: Amazon is a well-structured company. Its hierarchy is a set of vertical lines with the CEO- Jeff Bezos at the very top cascading authority and commands from top to bottom. They have a series of levels denoting the person’s current position in the company. For example an L7 would be a Site Head at any of the company’s site. An L1would be someone who works at the warehouse. These hierarchies are maintained the same throughout Amazon’s various Geographic locations throughout the world. Systems: Amazon boasts of well-organized work place where both formal and informal systems. All decisions are communicated from the top down via emails, verbally or in the monthly magazine for employees. Amazon also has employee groups where employees with

similar interests can bond and discuss or do what the like. Amazon makes sure that communicating important decisions is a priority as they do not want to lose the trust of its employees. Amazon also has a set of 14 leadership principles to guide employees at all times. Shared Values: One thing that everyone at Amazon talks about at Amazon is Customer Obsession. It is also one of the company’s Leadership Principles. (Leadership Principles, n.d.)The company’s vision is to become the earth’s most customer centric company. This also drives a Customer First attitude at the workplace. The 14 Leadership principles are used as a guiding light to make decisions or overcome hurdles at the work place. Style: Amazon’s leadership follows the CEO, Jeff Bezos. Jeff Bezos is an extremely customer oriented and result focused. He sets very high goals for himself and expects all the employees to do the same. He is a task-oriented and transactional leader and is also known as pragmatist style of leadership.. Though one might feel that the management style is democratic it is in fact autocratic and hierarchical. (Murphy, 2015) Staff: Amazon boasts of a workforce of 230,000 employees. These employees are spread across all the Amazon sites across the world. The employees have set job descriptions and responsibilities. However, thinking out of the box is encouraged and employees are free to take up additional projects. The staff is well compensated and has a good leave policy. (Amazon, 2016) Skill: Amazon’s one of the leadership principles is Hire the Best and keep them well trained. All employees are given job roles according to their skill set. Employees are also given mandatory trainings. Amazon also holds workshops on various things which the employees are free to attend. Top level managers are also very skilled and are great change motivators. Some of the major skills Amazon possesses as an organization is its innovative approach and readiness to adopt change.

References Amason, A. C. (2011). Strategic Management from Theory to Practice. Amazon. (2016, May). Retrieved from Forbes: http://www.forbes.com/companies/amazon/ Enduring Ideas: The 7-S Framework. (2008). McKinsey Quarterly.

Leadership Principles. (n.d.). Retrieved from Amazon: https://www.amazon.jobs/principles Murphy, M. (2015). Would Your Leadership Style Fit At Amazon? Forbes. Peters, T., & Waterman, R. H. (1980). In Search of Excellence.