Description
AMAZON
Throughout this course, you have been using different analysis strategies to determine best practices for developing your business plan. It’s time to develop a strategic plan that will help you determine where your business is now, where you want to take it, and how you will get there. Your strategic plan will help you implement and manage the strategic direction of your company. Additionally, you will communicate the direction of your company to stakeholders.
Develop a strategic plan for the company you have used throughout this course (weeks 2, 4, and 5) and share it with stakeholders.
Create a 15+ slide PowerPoint presentation with speaker notes for key stakeholders to solicit their approval of your strategic plan. Address the following in your presentation:
An introduction with mission and vision statements
Core values, ethics, and social responsibility principles
Analysis of the company’s:
Internal environment (e.g. strengths and weaknesses related to resources, trademarks, patents, copyrights, or current processes)
External environment (e.g. opportunities and threats related to market trends, economic trends, demographics, or regulations)
An evaluation of the internal and external environment’s impact on achieving the company strategy
Create a strategic objective for the company.
Create short- and long-term SMART goals for achieving the company’s strategic plan.
Determine methods for collecting data and measuring the success of the strategic plan.
Include APA-formatted in-text citations and a reference page.
For your speaker notes in this week six Signature assignment, your originality report cannot exceed 33%. This is not a copy/paste of your previous papers in the last five weeks. While using some prior content is acceptable you are also expected to utilize new research.
Cite at least 3 peer-reviewed documents. Note: You may include your textbook as 1 of the sources.
Include specific details in your speaker notes and data on your slides. Proper presentation is bullets with details on the slides and sentences in the speaker notes to backup and explain the slides. Use the same order as the bullets above are listed. At least one slide for each bullet point. Use some color and visuals on your slides – slides with just the topic on them provide nothing to your audience and are ineffective.
PLAGIARISM: All papers in Blackboard are checked for originality by SafeAssign. NO part of any previous papers used in other classes are permitted in this class. All material must be original and Blackboard Originality Report must be less than 33% for each assignment. This 33% also includes all Discussion Posts and the use of a paraphrase generator or “word spinner” (AI).
Unformatted Attachment Preview
Amazon Strategic Plan
Improvements
University of Phoenix
Introduction
•
•
•
•
•
•
•
•
Amazon is a leading Fortune 500 company renowned for its e-commerce and technology prowess.
The company has enjoyed economic prowess in its operations for many years (Althafairi et al., 2019).
However, the company as of recent times started exhibiting problems brought about by the rapidly evolving
competitive landscape.
The problem is mainly attributed to the rapid expansion of Brick-and-mortar retailers into the online
landscape, putting pressure on Amazon’s market position.
The woes of the company are further facilitated by the massive decline of consumer trust attributed to
recurrent privacy concerns around Amazon’s data practices (Evans, 2021).
Addressing the evident threats and challenges requires investment in appropriate initiatives by Amazon
such as supply chain automation and sustainability technology among others.
For the initiatives to be successful, additional resources will be required to strengthen Amazon against
emerging threats while positioning the company for continued innovation and growth.
This presentation will outline recommendations for improving Amazon’s strategic plan based on an analysis
of current threats, challenges, and opportunities.
Threats in Current Strategic Plan
•
•
•
•
•
•
Intensified online retail investments by franchise giants such as Walmart and Target which has put
significant pricing pressure on Amazon’s core retail business (Repko, 2023).
Rising labor costs as company expands could impact profit margins
Intensifying competition in cloud from Microsoft, Google, and others (Jindal et al., 2021).
Data privacy regulations like GDPR may limit data collection and use (Evans, 2021).
Trade tensions and tariffs could disrupt global supply chains
Pandemic-related changes in consumer behavior and economic outlook
Challenges in Current Strategic Plan
•
Managing massive growth and organizational complexity
•
Retaining startup culture and innovation as company matures
•
Developing leadership pipeline and succession planning
•
Scaling internationally with localization and cultural differences
•
Maintaining brand reputation amid scrutiny of labor and sustainability practices
Strategic Initiatives to Address Threats and
Challenges
•
•
•
•
•
Invest in automation and AI to optimize operations and reduce labor costs.
Strengthen data governance and compliance programs for changing regulations.
Enhanced benefits, training, and development programs to maintain the best talent.
Ambitious Amazon’s sustainability targets.
Enhance personalization and recommendations using purchase data to retain consumers
Proposed Process Improvements
•
Implement agile development processes to accelerate innovation (Watanabe et al., 2021).
•
Develop knowledge sharing networks and training programs to retain institutional knowledge
•
Create leadership development pathways to build bench strength (Watanabe et al., 2021).
•
Institutionalize diversity and inclusion programs to improve talent recruitment and retention
•
Establish sustainability metrics and reporting to enhance transparency and reputation
Assessing Need for Additional Resources
• Labor: Hire technical talent for AI, automation, cloud computing
• Systems: Invest in analytics platforms and supply chain management software
• Data: Obtain or build datasets for training AI algorithms
• Partners: Forge relationships with regional suppliers and global companies
• Leadership: Retain and develop next generation of senior managers
Utilization of Resources
•
Technical talent develops AI and cloud solutions to control costs and differentiate offerings
•
Analytics systems provide insights to improve personalization and inventory management
•
Diverse leadership pipeline supports growth into new geographies and industries
•
Regional suppliers and global partners enable flexible, resilient supply chain
•
Sustainability data motivates reductions in emissions and waste
KPIs and Metrics
• KPIS
•
•
•
•
•
Cloud revenue growth rate
Prime subscriber retention rate
Percentage of sales from AI recommendations
Percentage of renewable energy for operations
Management roles filled by internal candidates
• Metrics
•
•
•
•
•
•
•
•
Supply chain automation investments leading to a 2% reduction in fulfillment costs
Training and development linked to a 10% higher talent retention rate among managers
Double-digit revenue growth within 2 years for new privacy-focused product and service offerings
25% of Amazon’s total sales coming from sustainable products and services by 2025
2% year-over-year reduction in fulfillment and distribution costs driven by supply chain automation and AI investments. This
translates to an estimated gross savings of $1.2 billion annually.
10% higher talent retention rate for managers participating in leadership development programs compared to managers not in
developmental roles. Retention rate goals should be further segmented by business unit and geography.
$500 million in incremental revenues within 2 years from the launch of privacy-focused offerings. Specific goal of capturing 5%
market share in privacy services.
25% of Amazon’s overall sales coming from sustainable products and services by 2025. This includes items manufactured through
eco-friendly processes and materials.
Anticipated ROI
•
•
•
•
•
The return on investment from the implemented strategic improvements will be substantial (Unhelkar et
al., 2022).
Supply chain automation will deliver an estimated 20% ROI within 3 years through cost and efficiency gains.
Improved talent retention will recover the $500 million investment in training programs within 2 years by
reducing recruitment and onboarding costs (Martin, 2023).
New privacy offerings are projected to yield healthy profit margins around 30%, adding high-growth
revenue streams.
Environmentally sustainable products and operations will further burnish Amazon’s brand value with
consumers and investors.
Conclusion
•
•
•
•
The proposed improvements of investing in supply chain automation, talent retention, privacy offerings,
and sustainability will strengthen Amazon against emerging competitive threats.
Process enhancements will also spur innovation and efficiency gains to uphold Amazon’s market
leadership.
The additional resources required are justified by the considerable anticipated ROI from these initiatives.
With visionary leadership, Amazon has repeatedly reinvented itself to stay ahead of evolving consumer
demands and market conditions.
References
• Althafairi, B., Alhoumaida, N., Saxena, M., & Almsri, Z. (2019). Case study-AMAZON. Journal of The Community Development in
Asia, 2(2).
• Evans, W. (2021, November 18). Amazon’s dark secret: It has failed to protect your data. Wired.
https://www.wired.com/story/amazon-failed-to-protect-your-data-investigation/
• Gilsing, R., Wilbik, A., Grefen, P., Turetken, O., Ozkan, B., Adali, O. E., & Berkers, F. (2021). Defining business model key
performance indicators using intentional linguistic summaries. Software and Systems Modeling, 20(4), 965–996.
https://doi.org/10.1007/s10270-021-00894-x
• Jindal, R. P., Gauri, D. K., Li, W., & Ma, Y. (2021). Omnichannel battle between Amazon and walmart: Is the focus on delivery the
best strategy? Journal of Business Research, 122, 270–280. https://doi.org/10.1016/j.jbusres.2020.08.053
• Martin, A. (2023, May 23). Amazon’s stock isn’t enough to keep workers loyal, high forfeiture rates show. Business Insider.
https://africa.businessinsider.com/news/amazons-stock-isnt-enough-to-keep-workers-loyal-high-forfeiture-rates-show/63ejpre
• Repko, M. (2023, October 18). Walmart beefs up its third-party marketplace as it challenges bigger online rival Amazon. CNBC.
https://www.cnbc.com/2023/10/18/walmart-beefs-up-online-marketplace-in-amazon-challenge.html
• Unhelkar, B., Joshi, S., Sharma, M., Prakash, S., Mani, A. K., & Prasad, M. (2022). Enhancing supply chain performance using RFID
technology and decision support systems in the industry 4.0–A systematic literature review. International Journal of Information
Management Data Insights, 2(2), 100084. https://doi.org/10.1016/j.jjimei.2022.100084
• Watanabe, C., Akhtar, W., Tou, Y., & Neittaanmäki, P. (2021). Amazon’s initiative transforming a non-contact society – digital
disruptionleads the way to stakeholder capitalization. Technology in Society, 65, 101596.
https://doi.org/10.1016/j.techsoc.2021.101596
Amazon
University of Phoenix
STR/581
2
Amazon
Amazon is a Fortune 500 company with over US $ 5 billion in annual revenues. Also, it
is an e-commerce and technology retailer (Flamand et al., 2020). Strategic plan analysis extracts
its materials from the latest official filings and annual reports each company publishes. The study
intends to assess Amazon’s strategic strategy, analyzing the solid points and pointing out what
needs improvement in such areas as organizational leadership direction, appraisal efforts about
internal and external environments, personnel plan (including diversity), corporate social
responsibility (CSR), or environmental sustainability.
Clarity of Organizational Direction
In this respect, Amazon’s plans for the strategic direction of its organization stand out.
The plan captures the essence of Amazon’s vision, mission, and long-term aspirations —
customer focus, innovation, and expansion into foreign markets (Flamand et al., 2020). The
simple language makes Amazon’s strategic blueprint easy to appreciate by everyone from
investors to employees.
Evaluation of External and Internal Environments
Amazon’s detailed strategic plan breaks down the external and internal environments,
forming a comprehensive strategy for analysis. Another essential element is the presentation of a
SWOT analysis, which provides an overview–internally and externally –of Amazon’s strengths,
weaknesses, opportunities, and threats. Such analysis serves as a navigational chart by which
decision-makers can adjust the company’s resources to meet the changing needs of e-commerce
and technology (Althafairi et al., 2019). The strategic plan is more comprehensive than the oldstyle SWOT, however. Also, it investigates lengthwise market trends that affect the industry.
Amazon has become a change agent through understanding and reacting to trends in consumer
3
behavior, technical developments, and industry experience.
Furthermore, the plan analyzes competitive patterns in great detail, recognizing that
everything about a market constantly changes. All this suggests that Amazon has a sense of its
place within the competitive environment, showing an overall strategic awareness that transcends
present-day difficulties and sets it up for long-term success (Althafairi et al., 2019). In addition,
the plan takes these regulatory considerations very seriously and knows that legal restrictions can
affect operations (Flamand et al., 2020). Also, this shows that Amazon recognizes the
importance of acting by proper business practices and fully appreciates its obligation to respect
relevant laws and regulations.
People Plan and Diversity
The Amazon strategic plan emphasized the People Plan, understanding that talent is
cemented at every level of the organization. However, the project also looks at more than
personnel management tactics and outlines comprehensive programs emphasizing how important
qualified people are. Diversity is not only a symbol of equality and Amazon’s ideals; it also
strategically promotes innovation (Althafairi et al., 2019). The strategic plan sets concrete,
measurable targets and programs to implement the vision for a workplace that embraces
diversity. Through targets for recruiting various talents and programs to cultivate professional
ability, Amazon is taking diversity seriously and actively striving toward a diverse workplace
culture (Althafairi et al., 2019). Also, this plan shows an awareness that the variety of people is
not a checklist but rather something fluid and vital, qualities needed by creativity and problemsolving, critical elements for a company in the e-commerce vanguard.
Corporate Social Responsibility (CSR) and Environmental Sustainability
Not only has Amazon included Corporate Social Responsibility (CSR) and Environment
4
in its strategic plan, but the company’s dedication to these issues runs through every aspect of its
business. The plan outlines a comprehensive, multifaceted approach that goes beyond the
requirements of environmental laws. Amazon’s commitment to community involvement
manifests through several philanthropic activities, such as efforts to give back the benefits
derived from local communities or education and disaster relief work (GreyB, 2022). Thus, this
strategic plan reflects the company’s corporate philosophy that a good business must contribute
to society.
In addition, the plan outlines concrete and trackable goals that demonstrate Amazon’s
environmental commitment. The long-term goal of reaching net-zero carbon emissions by 2040
is representative and coincides with global efforts on climate change (GreyB, 2022). Thus,
addressing environmental issues is a priority for Amazon, and the company must set an example.
For example, concrete goals such as changing to 100 % renewable energy illustrate a rather
aggressive attitude toward reducing the company’s carbon footprint (Flamand et al., 2020).
Amazon’s strategic intent is also quite clear on investments in renewable energy and
sustainability (GreyB, 2022). The company proactively seeks technologies and processes that
raise energy efficiency and reduce environmental impact on its supply chain. By integrating
these investments into the strategic plan, Amazon expresses its intentions toward long-term
sustainable development and not just short-term business considerations.
Conclusion
In conclusion, Amazon’s planning is a coarse-grained document that clearly expresses the
company’s strategy and provides direction on internal and external environments,
communications with people — including diversity within its ranks — corporate social
responsibility, and environmental sustainability; this plan demonstrates Amazon’s values of
5
innovation, customer focus, and responsible management. However, although the plan has many
strong points–clarity and completeness are among them — there is room for improvement.
Amazon can improve the plan by offering greater clarity about when various actions will be
undertaken and letting us know even more clearly how success would be measured. The analysis
above provides insight into the strengths and weaknesses of Amazon’s strategic approach as a
starting point for continuous revision moving forward in concert with changing market
conditions.
6
References
Althafairi, B., Alhoumaida, N., Saxena, M., & Almsri, Z. (2019). Case study-AMAZON.
Journal of The Community Development in Asia, 2(2).
Flamand, O. J., Wisher, A., & Riley, S. (2020). Strategic Plan: Amazon.
GreyB. (2022, February 18). Amazon Business Strategy: Insights of its Core Operations and
Investment. GreyB. https://www.greyb.com/blog/amazon-business-strategy/
Purchase answer to see full
attachment
