Amazon Organizational Culture: harsh, but effectively contributing to the bottom line

Amazon Organizational CultureAmazon organizational culture has been described as “breakneck-paced, and notoriously cost-conscious, as befits a company that has run only a small profit, or a loss, under generally accepted accounting principles for most of its life as a public company.[1] Amazon organizational culture has been fiercely criticized in 2015 in The New York Times article titled “Inside Amazon: Wrestling Big Ideas in a Bruising Workplace”. Specific flaws mentioned in the article include unrealistic performance standards, the work culture based on fear and the lack of recognition of employee contribution. The article caused debates in the media and even prompted a response from Amazon CEO Jeff Bezos.

Amazon organizational culture integrates the following three key elements:

1. High level of cost-consciousness in accordance with cost leadership business strategy pursued by the company. For example, unlike other large e-commerce companies such as Google and Facebook, Amazon does not offer free lunch to employees.

2. Constant reinvention and improvement of organizational culture. Amazon founder and CEO Jeff Bezos “emphasizes the importance of constantly assessing and adjusting Amazon’s culture so it never loses the agility, nimbleness, and hunger for experimentation”[2]. Accordingly, Bezos constantly opposes “one-size-fits-all” culture of decision making.

3. Customer-centricity. Amazon positions itself as one of the most customer-centric companies in the world. Amazon vision statement is “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online.” High level of customer-centricity is placed at the core of Amazon corporate culture with direct implications to a wide range of organizational processes and procedures.

Amazon.com Inc. Report contains a full analysis of Amazon organizational culture. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Amazon. Moreover, the report contains analyses of Amazon leadership, organizational structure and business strategy. The report also comprises discussions of Amazon marketing strategy and addresses issues of corporate social responsibility.

Amazon.com Inc. Report

[1] Mullaney, T. (2017) “5 key business lessons from Amazon’s Jeff Bezos” CNBC, Available at: http://www.cnbc.com/2016/05/13/5-key-business-lessons-from-amazons-jeff-bezos.html

[2] Guppta, K. (2016) “How Jeff Bezos Maintains Amazon’s Killer Company Culture” Strategyzer, Available at: http://blog.strategyzer.com/posts/2016/6/23/how-jeff-bezos-maintains-amazons-killer-company-culture