Organizational Structure Of Amazon

Whole Foods is a supermarket that has successfully become the leader in the organic food segment of the grocery industry. While traditional markets have low brand loyalty and recognition, Whole Foods has focused almost entirely on its brand image, causing their strategy to be one of differentiation over cost leadership. Whole Foods is known as being far more expensive than other chains, due to this brand recognition. In their press release for the Q4 2014 results, they describe their vision and sum up what helps them develop that brand recognition. “We hold the idea of “food” to a higher standard, banning more than 75 ingredients commonly found in other stores, and we believe our unparalleled quality standards

Amazon is the world’s largest online retailer that was launched in 1995 (Rouse, 2014). Amazon was mainly a book selling company that has enlarged its’ business by selling a variety of goods. The company sells all types of technology devices such as cell phones, games, televisions, movies, cameras, computers,

Although Whole Foods Market not only survived the recession but also has seen steady growth since 2009, its’ business model is not sustainable in the longer term. Compared with its competitors’ prices (Whole Foods being pricier), and receiving the nickname “whole paycheck,” Whole Foods has serious competition, especially with its competitor Kroger. Kroger’s net income was approximately $1.5 billion the past year, while Whole Food’s had a net income around $500 million. Also, having a pure grocery market company puts limitation on its growth in the future makes Whole Foods not sustainable. Companies selling only groceries have to compete with maintaining lower prices, which takes away from its profit margin, compared to companies like Wal-Mart

Amazon is an electronic commerce and cloud computing company, that originally started as an online bookstore. Amazon sold an unlimited selection of books and in many instances directly from distributors to consumers. Today, Amazon sells countless goods and services, ranging from books to fresh grocery delivery in some areas. Headquartered in Seattle, Washington and as of 2017 is supported by more than 340,000 employees Amazon continues to thrive in today’s market. It was founded in July 1994 by Jeff Bezos and is known for Technological Innovations which is why it is a company that is in an Era of Incremental Change.

In 1980 Whole Foods Market opened its first store. Over the last thirty-five years, Whole Foods has transformed the organic and natural grocery industry. Whole Foods Market’s vision is “to become an international brand synonymous with carrying the highest-quality natural and organic foods available and being the best food retailer in every community in which a whole foods store was located” (Thompson, Peteraf, Gamble, & Strickland, 2015, pp.C11). By understanding Whole Foods’ strategies, insightful strategic elements, competition, and future recommendation, it would then be possible to build a better understand of the success of the organizations and the change it has brought to the industry.

Amazon informed the public that Whole Foods is now owned by them on Thursday, August 17th. Amazon has some major plans to renovate Whole Foods to become more popular. On Monday, August 21th Amazon marked down most of Whole Foods prices down by almost 14%. Amazon wants to make fresh products available for lower prices. Another big change is the free WiFi available in Whole Foods store. However, when a device is connected to the Whole Foods WiFi the device won't be allowed to access other stores prices. By doing this, customers can’t check other stores prices while shopping the their store. Amazon is also offering discounts for Amazon Prime customers. These discounts include $99 annual discounts and more in the future. This will ramp up the sales for Whole Foods by a lot since 70% of Whole Food customers have Amazon Prime. Thus, these customers will buy more products since they have more discounts. It will also bring in other Amazon Prime customers to buy from Whole Foods.

Whole foods is an established chain with a multitude of loyal customers, and now Amazon is able to tap into this customer base. I foresee Amazon implementing new technological and managerial advancements in the existing and future Whole Foods locations within the coming years. The AmazonGo store model thrives off of providing efficient interactions with customers while cutting out many employees in the process. Since 2015, the stock price of Whole Foods was at a steady decline due in partly to the way employees were hired and managed. Amazon has a great deal of experience managing their staff efficiently from its e-commerce platform, so this change of management should work wonders on the amount of staffing problems within Whole Foods as well. By reanalyzing Whole Food’s staffing needs, Amazon should be able to turn the company around into a profitable investment in the near

Amazon.com is a worldwide American-based electronic company founded in 1994 by Jeff Bezos, the actual chairman and CEO. At the beginning, Amazon was just a small online book retailer, but thanks to the development of Internet at the end of the 90s, it grew quickly into a huge online retail store. Today, in the United States, one out of three online sales are made through Amazon’s website.

As Whole Foods has increased the number of retail centers that it operates, it has suffered accompanying growing pains in efficiently managing distribution of products to its stores. They are growing at such a fast rate that the chain struggle to keep up with the demand for products and to keep shelves stocked. The biggest reason for inefficiency is Whole Foods’ decentralized back-end. It has 12 geographic divisions, a national headquarters in Austin, regional distribution centers, bakery facilities, kitchens, seafood processing facilities, meat and produce procurement centers and a specialty coffee/tea procurement operation. Many scoff at its supply chain, considering it to be amateur and lacking in professionalism. But with ample margins, it does not face immediate pressure to enhance efficiencies.

Based on grocery sector, if Amazon Company keeps their food fresh their costs will increase, and also more customers are going to buy their grocery online because a lot of people don’t want to go to the store if they are busy or if there is traffic especially when they get off from work. So if they keep this thing in their mind and continue to do it, Amazon will be the best place to dominate this section of business. Amazon.com would have an opportunity to open physical stores because this company is growing every year with better annual net revenue. Also, holidays gifts and seasonal things will get more consumers to shop online on Amazon.com, and also promotional activities will also lead to get more consumers to shop on Amazon’s website.

Amazon.Com is a leading online retailer company, offering for sale different items such as books, music, DVDs, videos, toys, electronics, software, video games and home improvement products serving almost 22.5 million customers over 150 different countries. This company was founded in July 1995 by Jeff Bezos in the state of Washington USA. Jeff Bezos now 37 years old, received his BS in Electrical Engineering and Computer Science from Princeton University. His professional career started at Bankers Trust Company in 1988, where he became Vice President in February 1990. At the end of the

With Amazon.com currently reigning as the leading e-commerce organization in the world, it would be hard to fathom this would be the case without major efforts from human resources. According to my review of the literature in the coopetition case study, Amazon believes in serving the customer and creating value for that customer. This value creation and customer service would be difficult to achieve without an important HR function; recruitment and selection, and the staffing of organizations. “Staffing is a critical organizational function concerned with the acquisition, deployment, and retention of the organization’s workforce” (Heneman, Judge, & Kammeyer-Mueller, 2012, p. 6). In simple terms, Amazon would not be the organization it is today without being able to hire the people it needs, use them effectively, and keep them from leaving. Additionally, as noted by Heneman, Judge, & Kammeyer-Mueller (2012), “staffing is arguably the most critical function underlying organizational effectiveness, because “the people make the place,” because labor costs are often the highest organizational cost, and because poor hiring decisions are not easily undone” (p. 6).

Amazon.com, Inc. is an Electronic Ecommerce Company which was founded in July 6, 1994 Seattle, Washington, U.S.A by Jeff Bezos. Bezos stands as Amazons Chairman, President and CEO at the company’s headquarters in Seattle, Washington. The Company is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. (Amazon.com, Inc. 2015) As of December 2014 Amazon Inc. employed 154,100 workers worldwide. (Amazon.com, Inc. 2015) According to Amazon.com, Inc. Press Release – January. 29, 2015 “operating cash flow increased 25% to $6.84 billion for the previous twelve months, compared with $5.47 billion for the previous twelve months ended December 31, 2013. Free cash flow

The board of directors from Amazon.com is likely to take an approach of nominal participation with their executives. Whole Foods is a new acquisition for Amazon.com, but one that was already having great success. Bezos emplaced a company man at the helm of Amazon.com to make sure that the larger company interest was observed, and should to allow leading the way as a manufacturer and designer of an exceptional product.

According to Harrison (2014), “Whole Foods Market has grown into a natural and organic food empire, with nearly 400 locations, more than 80,000 employees, and annual sales exceeding $12 billion,”, and it has continued to expand to 460 locations since then. Amazon is looking to amplify their business through Whole Food’s numerous locations all over the world. Whole Foods has acquired the nickname “Whole Paycheck” due to the high prices of their groceries (Wingfield & Merced, 2017, para. 8), and because of this aspect, they struggled to compete with stores such as Walmart and Kroger who have reasonable pricing. They often have better and healthier products, but consumers are drawn to lower prices. Struggling to attract customer has led to Whole Foods losing “a fifth of its value in the last three years” (Gensler, 2017, para. 5).