Implementing The Organizational Structure, Design, And Challenges Associated With The Strategy For Expansion And Innovation

1435 Words6 Pages
Facilitating Change Amazon, a United States-based international company, is the world’s largest e-commerce business. The organizational leaders want to expand into China but doing so requires them to evaluate their organization structure to determine if it aligns with the consultants’ recommended strategy for expansion and innovation. This paper begins with an evaluation of Amazon’s existing organizational structure, design, and challenges associated with the existing design. There is a review of the recommended changes to the organization’s strategies, followed by recommendations to changes of the organizational structure and how the recommended changes might help the organization in a changing environment. Existing Organizational Structure Amazon uses a divisional organizational structure but more specifically a multidivisional organizational structure. Divisional organizational structures are structures where functions are group according to specific demands of markets, customers, or products (Jones, 2010). This type of structure aligns the company according to individual divisions based on service, products, or geographic locations (Jones, 2014). Each unit has separate support functions thus creating self-contained divisions which may lead to communication issues between the different functions (Jones, 2014). The organization also uses a hierarchy organizational structure which is useful with high complexity organizations. High complexity organizations contain

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