Operations and Technology Management 2

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1 Operations and Technology Management Student Name Student Id Professor Name Course Name January 15, 2023

2 Introduction Amazon.com has been an early adopter of innovative retail, hardware (e-readers), and software for online sales (Web services). Seattle, Washington, serves as the home base for its management. Amazon.com is a global e-commerce platform that connects producers with the company's countless customers by offering various products, from books and music to DVDs and video games, furniture and gadgets, and even children's toys. It provides "cloud computing," or off-site data hosting and processing, as part of its online service offerings. In 2012, one percent of all Internet traffic in North America passed via Amazon.com's data centers because of the company's significant online presence. While Amazon is most known for the Kindle brand of e-readers, they produce several other models. The relentless marketing of e-readers by Amazon.com has made it a highly disruptive force in the book publishing sector (Gupta et al., 2015). Business Objectives of the Organisation Amazon aims to give customers a seamless online shopping experience, including the best pricing, comprehensive selection, and the quickest transactions possible. The statement makes it quite clear that customers may rely on Amazon for assistance beyond what is required. It aspires to deliver the best available bargains in terms of cost, variety, and individual taste (Incerti, 2017). Amazon wants to be renowned for respecting its customers' financial resources. Therefore, it may provide its products to customers at meager prices without compromising on quality. To be sure, this aspect is crucial to Amazon's success over the globe. There don't seem to be many differences between domestic and international orders, as shown by the fact that the

3 company's foreign shipping prices are so low and readily available online. To provide such cheap prices and good quality of service, Amazon has nailed it with its online marketing strategy, which minimizes overhead expenditures (Nobre et al., 2016). Furthermore, Amazon's goal is to become the most customer-centric company in the world by offering its customers the widest selection of products possible to buy online. The company's long-term vision is to become universally recognized as a destination where customers worldwide can purchase worry-free (Ritala, Golnam and Wegmann, 2014). Operations Management Aim to Deliver on those Objectives Careful market segmentation may help a company use the localization approach to tailor its marketing efforts to the needs and tastes of local consumers. While expanding into new areas, Amazon has maintained a consistent brand image and core business practices. Amazon can give its clients the same level of service throughout its regions because it has standardized its business operations. This has allowed the company to capitalize on the power of its global brand by establishing a solid presence in various international nations (Zhu and Liu, 2018). Amazon is an online marketplace where customers may buy products directly from the company or via third-party sellers. Thus, Amazon is not just an online store but also a marketplace where several small firms can access Amazon's massive customer base. Amazon strives to build a strong brand image by offering the best customer service in the business. The company realizes that its business model is not unique and can be reproduced by many other firms; therefore, it is attempting to differentiate itself by building a solid brand image that would be tough for its rivals to imitate (Penteado et al., 2019).

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4 Amazon has developed a reliable supply chain that is both scalable and capable of serving an unprecedented number of consumers, enabling the firm to provide its merchant partners and end users with unparalleled levels of service. They must look at Amazon's supply chain in further depth if they want to produce a top-notch college assignment regarding Amazon's operations management (Meredith and Shafer, 2023). Activities of Operation Management Amazon has come to know that the process by which competitive positions are built or maintained is just as important as the development and effective execution of a strategy when determining the company's bottom line (Gupta, Mittal and Mufti, 2021). Innovation The company relies primarily on innovative approaches centered on its customers' needs. For some businesses, a focus on innovation as their primary strategy has proven very successful. Constant efforts to improve the quality of the service provided to customers by developing and deploying new technology. Consumers are always looking for something fresh. To Bezos, creativity was the key to success and staying ahead of the competition. The majority of successful businesses understand the need for constant innovation. The creative process involves a lot of thinking, fiddling, trying things out, and waiting for results (Dastin, 2022). Diversification Diversification is another tactic that Jeff Bezos has employed for Amazon. The corporation did this by branching out into several markets and offering a wide range of products. To keep up with market demands, the company periodically launched new offerings. Because of

5 this, millions of people use Amazon daily to buy the things they need online. Companies aim to strike a balance in their portfolios, whether between high-cash, low-opportunity companies and low-cash, high-opportunity firms or between debt-free and highly leveraged businesses. With Bezos's vision and foresight, Amazon has expanded into other previously unexplored industries, including toys, jewelry, gaming, health, beauty, etc. Bezos's present commercial prominence indicates his success in establishing new company ventures. Companies with a strategy of diversification that builds on their existing strengths have a greater chance of success than those with a process of diversification that moves in a completely other direction (Meredith and Shafer, 2023). Human Resource Strategy When it comes to running a successful company, human resources are crucial. The success of every business depends on its capacity to recruit and retain talented workers. Over the years, Bezos bolstered the company's leadership by appointing high-level executives to directorships. It is essential to establish a connection between business strategy and HR strategy to achieve high performance, since both have a major impact on a company's success. Bezos has been widely hailed for his accomplishments in this area (Penteado et al., 2019). Acquisitions To expand the company, Bezos has made some acquisitions. When a company buys out its rivals or acquires related businesses, it expands its reach and gains a foothold in new areas. Bezos made some acquisitions to help fuel growth in Europe. Bezos bought up a slew of others.COMs to expand the range of offerings to its consumers. I believe it's fair to say that

6 Bezos's strategic thinking helped him eliminate most of his competition and propel Amazon to the top of the industry (Meredith and Shafer, 2023). Joint Ventures Amazon has engaged in collaborative ventures to help the firm develop and expand. Multinationals often used joint ventures to learn about and break into uncharted markets. Amazon's collective experiences with significant Internet companies gave them access to a massive user base and opened up promising new areas for expansion. When executives investigate large developing markets for expansion opportunities, they naturally concentrate on the magnitude of the possibility and the difficulty of the obstacles that must be overcome. Bezos engaged in joint ventures because it saw the potential for expansion (Dastin, 2022). Operation Management Aims for Operational Excellence The Six Sigma methodology benefits from the addition of the lean approach. One organization that has made operational efficiency a priority, as highlighted by our staff, is Amazon. When comparing Amazon's technical staff to its customer service and fulfillment staff, the latter receives a far greater allocation of Amazon's human resources. Jeff Bezos has always been a firm believer in the principles of lean management. Customers would not pay for trash in 2015, so Bezos ensured that the beehive of Amazon facilities was staffed with people who put them first. The firm does this to maintain a consistent standard of service. In addition, Amazon bases its package delivery technique on the expected delivery date, and each job function has been carefully crafted to maximize productivity. It's a method that makes the most of existing assets while keeping expenses minimal (Gupta et al., 2015).

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7 As an additional note, Amazon employs more individuals to work in its logistics and customer service centers than it does computer science engineers. All employees at an Amazon fulfillment center must be dedicated to a culture of continual improvement. This is why Amazon facilities department directors participate in Gemba meetings. Gemba is a conference for enhancing processes in which different sections report on challenges they've encountered and actions are taken to overcome them. Gemba is supplemented with Gemba Go C, a facility tour that helps management pinpoint issues in specific areas, people, etc. It's a technique that enables them to take stock of their life and think critically about them. In addition to learning the division's inner workings, a suggestion box is recommended to be made available to employees. This suggestion box allows employees to provide input on how to streamline any procedure (Meredith and Shafer, 2023). Amazon, like every other company, strives for constant process improvement. The success of every company depends on its ability to enhance its operations and provide better outcomes continuously. Kaizen, an organizational concept, is used to guide day-to-day operations at Amazon, particularly in the warehouse. Maximizing productivity to meet or exceed consumer expectations. The speed with which Amazon fulfills orders—more than 35 per second —is unmatched in the retail industry. Amazon employs managers at each fulfillment facility to ensure efficiency is continuously increased. The business operates with just-in-time stock, which it does via the utilization of express shipping and interconnected warehouses to provide next-day delivery. With the help of this strategy, the corporation may better anticipate client needs and store products in distribution centers close to their locations. The stockpiles of raw materials are kept until payment has been received, which is processed into the final product. Amazon's need for "standard work" is another critical factor in developing more efficient enhancements. This

8 method integrates the necessary steps for the task at hand in the most effective order to maximize output while minimizing resources wasted along the way (Dastin, 2022). Conclusions and Recommendations Amazon aims to provide the most excellent possible deals regarding price, selection, and customer satisfaction. The organization's ultimate goal is to be recognized worldwide as a place where buyers from all over the globe may shop without fear of fraud or theft. Amazon values consumer happiness above everything else. Therefore they made its website easy to navigate. The Amazon website serves as a marketplace where users purchase goods from Amazon itself or independent vendors. The company's unmatched service to its merchant partners and end customers is made possible by its highly dependable, highly scalable, and highly competent supply chain. The group has decided that modest growth would bebenefit Nothing other than time and effort would be required for this. Previous years saw the facility undergo a bin project that saw a half of the building go from housing various items to housing just garments. This included rearranging containers to make room for the merchandise. The reactive is separated into many products, so each component is stored in its designated container. Bins removed from the bin project may be reused in a subsequent building phase. Some quarter palette bins would be eliminated, and a whole aisle's worth of containers would be replaced with the new construction. Data analysis suggested they are now engaged to dispose of quarte pallets. This project proposal is a great way to get rid of quarter pallets and free up storage space for emergency supplies. It means that there will be more room for storage and picking, improving productivity. Reference

9 Dastin, J. (2022). Amazon Scraps Secret AI Recruiting Tool that Showed Bias against Women *. Ethics of Data and Analytics , [online] pp.296–299. Available at: https://api.taylorfrancis.com/content/chapters/edit/download? identifierName=doi&identifierValue=10.1201/9781003278290-44&type=chapterpdf [Accessed 15 Jan. 2023]. Gupta, A., Agarwal, D., Tan, D., Kulesza, J., Pathak, R., Stefani, S. and Srinivasan, V. (2015). Amazon Redshift and the Case for Simpler Data Warehouses. Proceedings of the 2015 ACM SIGMOD International Conference on Management of Data - SIGMOD ’15 . [online] Available at: http://event.cwi.nl/lsde/papers/p1917-gupta.pdf [Accessed 15 Jan. 2023]. Gupta, B., Mittal, P. and Mufti, T. (2021). A Review on Amazon Web Service (AWS), Microsoft Azure & Google Cloud Platform (GCP) Services. Proceedings of the 2nd International Conference on ICT for Digital, Smart, and Sustainable Development, ICIDSSD 2020, 27-28 February 2020, Jamia Hamdard, New Delhi, India . [online] Available at: https://eudl.eu/doi/10.4108/eai.27-2-2020.2303255 [Accessed 15 Jan. 2023]. Incerti, F. (2017). Amazon Echo: Emerging technology for formal or informal learning? [online] www.learntechlib.org. Available at: https://www.learntechlib.org/p/177925/ [Accessed 15 Jan. 2023]. Meredith, J.R. and Shafer, S.M. (2023). Operations and Supply Chain Management for MBAs . [online] Google Books . John Wiley & Sons. Available at: https://books.google.co.in/books? hl=en&lr=&id=ejahEAAAQBAJ&oi=fnd&pg=PR5&dq=amazon+technology+and+operation+m anagement&ots=3-SWfq6idY&sig=aDv7bjS9od2jmGs7kALD2iWvOVo [Accessed 15 Jan. 2023]. Nobre, C.A., Sampaio, G., Borma, L.S., Castilla-Rubio, J.C., Silva, J.S. and Cardoso, M. (2016). Land-use and climate change risks in the Amazon and the need of a novel sustainable development paradigm. Proceedings of the National Academy of Sciences , [online] 113(39), pp.10759–10768. Available at: https://www.pnas.org/content/pnas/113/39/10759.full.pdf [Accessed 15 Jan. 2023].

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10 Penteado, I.M., do Nascimento, A.C.S., Corrêa, D., Moura, E.A.F., Zilles, R., Gomes, M.C.R.L., Pires, F.J., Brito, O.S., da Silva, J.F., Reis, A.V., Souza, A. and Pacífico, A.C.N. (2019). Among people and artifacts: Actor-Network Theory and the adoption of solar ice machines in the Brazilian Amazon. Energy Research & Social Science , [online] 53, pp.1–9. Available at: https://www.sciencedirect.com/science/article/pii/S2214629618308442 [Accessed 15 Jan. 2023]. Ritala, P., Golnam, A. and Wegmann, A. (2014). Coopetition-based Business models: the Case of Amazon.com. Industrial Marketing Management , [online] 43(2), pp.236–249. Available at: https://www.sciencedirect.com/science/article/pii/S0019850113002150 [Accessed 15 Jan. 2023]. Zhu, F. and Liu, Q. (2018). Competing with complementors: An empirical look at Amazon.com. Strategic Management Journal , [online] 39(10), pp.2618–2642. Available at: https://onlinelibrary.wiley.com/doi/abs/10.1002/smj.2932 [Accessed 15 Jan. 2023].

11 Appendix Amazon Business Operations

Operations and Technology Management 2

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