The Amazon Company Corporate Strategy

3955 WordsOct 28, 201216 Pages
The Amazon Company Corporate Strategy Fall 2 Term October 28, 2012 THE AMAZON COMPANY CORPORATE STRATEGY I. INTRODUCTION A. Executive Summary 1. Summary statement of the problem: Company is a business that was started by a man by the name of Jeff Bezos. The goal of the business was to provide the people with a way to purchase books and other items over the internet. Amazon has experienced a lot of success but, they come have come across some potential issues. One of the issues the company faces the high cost of staying competitive against other companies in the same industry. Another issue that is visible is the high cost of maintaining the products…show more content…
Since the inception of the idea, Amazon is now back on its feet and remains one of the most popular online vendors in the world today (“History,” 2011). II. ANALYSIS A. Analysis of the Situation 1. Management – Amazon has many corporate controls in place to ensure the integrity of the organization (“Company,” 2011). First, they have a code of business conduct and ethics that lays out the ethical rules that must be complied with (“Company,” 2011). They have a system of internal auditing and controls in place to make sure that the company is not altering financial statements or committing any illegal activity in the financial reporting process (“Company,” 2011). Amazon has an audit committee that is responsible for these types of activities as well as reviewing complaints from within the organization (“Company,” 2011). Organization members are encouraged to anonymously submit instances in which employees are engaging in questionable accounting or auditing matters (“Company,” 2011). The audit committee also helps the board of directors in verifying the accuracy of all financial statements and its compliance with all legal requirements (“Company,” 2011). 2. Operations – In terms of the structure of the company, Amazon is likely using a multidivisional structure (“Company,” 2011). Amazon is made up of multiple different divisions each with a vice president that reports directly to the CEO
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