CRAFTING AND EXECUTING STRATEGY

docx

School

Conestoga College *

*We aren’t endorsed by this school

Course

3170

Subject

Business

Date

Feb 20, 2024

Type

docx

Pages

Uploaded by AmbassadorBoarMaster1020

CRAFTING AND EXECUTING STRATEGY

Question 1 2016 2020 Revenues 13.59 38.61 Net Income 2.371 21.33 Earning per share 5.01 42.64 Dividend paid 0 0 Total assets 83.402 321.19 Question 2 Jeff Bezos estimated value creation for prime members based on time saved by them and associating a cost with time saved by them. 75 hours were considered as the typical time people spend shopping and it was multiplied by $10 at which time was valued. From this value, the cost of prime membership was subtracted and the rest was the dollar value for members of prime. Question 3 Jeff Bezos includes his letter to shareholders from 1997 to express the significant success that Amazonhas achieved. This is also included to express the strength of hard work and belief in his ideas and business model that he had in 1997. Jeff Bezos might have got this idea from the continuing commitment tothe growth of the firm and to strongly express the belief. The fundamental management and decision-makingapproaches of amazon and Bezos include focusing on customers and making an investment for long term market leadership. Bezos focused on making bold investment decisions where there is a possibility for market leadership.The decision-making approaches of Bezos are mainly focused on generating maximum return on investment and reducing the risk associated with the investment. Fundamental management is focused on becoming a market leader and the long-term

profitability of the company. Further, fundamental management also includes hiring and retaining talented and versatile employees in the company. Three aspects that impressed the most One of the very important aspects of the letter that impressed me the most is clarity of intention and preferences. The letter clearly expresses what the company focuses on about investment and preferences of Bezos when it comes to the management of operations and investment. Providing goals for next year was another aspect that impressed me in the letter to shareholders.This providesan idea to shareholders about what they can expect in future from the company. Practicality in the letter is another important element aspect in the letter in which Bezos has stated everything practical rather than making vague speculations. It is very important that everything planned is practical for the success of the business and impresses shareholders of the company. In disciple of strategic management, clarity, having goals and practicality is very important and these are also valuable from point of view of customers. Question 4 Competitors of amazon include 1. Retailers operating through physical, e-commerce and omnichannel platforms, publishers, vendors, distributors manufacturers and producers of products that are offered by Amazon answered sold to consumers and businesses 2. Creators, producers and distributors of all types of media and distributing channels 3. Web search engines comprising shopping websites, social networks, web portals and online as a means of discovering, using and acquisition of goods and services directly or in collaboration with other retailers 4. E-commerce companies including website development, hosting, omnichannel sales, and inventory and supply chain management advertising fulfilment customer service and payment processing 5. Companies providing fulfilment and logistics services; online and offline

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

6. Companies providing information technology services like on-promise or cloud-based infrastructure 7. Companies manufacturing designing marketing and selling consumer electronics and telecommunication devices 8. Companies selling grocery online and in physical stores 9. Companies providing advertising services digitally as well as in other formats Amazon.com competes in many industries including retail, consumer electronics, books, video on demand or OTT industry. Question 5 $35.026 bn in 2019 and $45.370 in 2020 AWS (Amazon Web Services)provides on-demand cloud computing to users and an application programming interface to individuals, companies and institutions. Question 6 The strategy of Amazon includes focusing on customers to understand and fulfil their expectations. The strategy also includes creating a cost-conscious culture at Amazon and hiring and retaining talented employees in the organisation. Term ‘strategy’is not usedappropriately. The business-level strategy of the company is to make profitable investment decisions for the long term success and leadership of the company. Question 7 1. The business model of amazon changed over time through the creation of a marketplace for buyers and sellers. 2. The change in the business model of amazon included the creation of Amazon prime for better services for customers based on subscription. 3. Amazon Prime Video is also a change in the business model of Amazon in which amazon offers on-demand video for its users and is based on subscription.

4. Amazon Alexa is also a significant change in the business model of the company which provides services as a virtual assistant. 5. Amazon Web Services (AWS) is another important change in the business model of amazon in which on-demand cloud computing services are provided and metered on a pay-as-you-go basis. This is related to the concept of business in chapter 1 of the book. Question 8 a) In mechanical engineering a flywheel is a heavy wheel that is attached to a rotating shaft. b) “The Amazon team grabbed onto the flywheel concept and deployed it to articulate the momentum machine that drop the enterprise at its best. From its inception, Bezos has infused Amazon with an option to create evermore value for every more customer. It’s a powerful animating-perhaps even a noble purpose- but the key differentiator not just in good intent but in the way Bezos and company turned it into a repeating loop. As bread stone letter rot in The Everything Store, “Bezos and his lieutenants sketched their own virtuous cycle which they believed powered their business. It went something like this: lower prices led to more customer visits more customers increased the volume of sales and attracted more Commission paying third- party sellers to the site. That allowed Amazon to get more out of fixed costs like the fulfilment centres and the service needed to run the website. The greater efficiency then enabled it to lower prices further. Feed any part of this flywheel, they recent and it should accelerate the loop”. And so, the flywheel would turn, building momentum”. Push the flywheel; accelerate momentum. Then repeat. Bezos, stone continued, considered Amazon’s application of the flywheel concept “the secret sauce.” c) “Bezos in his team could have panicked during the dot-com bust, abandoned the flywheel, and succumbed to what I described in good to great as the doom loop. When caught in the Dome lucuma companies react to disappointing results without discipline- grasping for a new saviour, program, fad, event or direction- only to experience more disappointment. Then they react without discipline yet again, leading to even more disappointment. Instead, Amazon committed fully to its flywheel and then innovated aggressively within that flywheel to build and accelerate momentum.

Amazon not only survived but also became one of the most successful and enduring companies to emerge from the dot-com era. Over time, Amazon would renew add extend the flywheel far beyond a simple e-commerce website and enhance the flywheel with new technology accelerators such as artificial intelligence and machine learning. But throughout the underlying flywheel architecture remained largely intact, creating a customer-value compounding machine that many of the largest companies in the value came to fear”. d) Yes, doing question 8 was personally instructive to me as a student of strategic management. Question 9 16 leadership principles are presented there on the website of Amazon. Ownership is one of the leadership principles that relate to the topic of decision-making. This is because once a decision is made by a leader the need to ensure the on the decision and consequences of the decision. Are right, a lot is another leadership principle that is related to the decision-making concept in which leaders should ensure that their decisions are right for everyone best on strong judgement and good instinct. Learn and Be curious, is another important leadership principle related to decision making in which learning and curiosity help leaders to improve the quality of decisions over time. To become an entrepreneur and build a successful business enterprise I would definitely embrace these three principles stated above. Question 10 “Many of the problems we face have no textbook solution, and so we-happily-invent new ones”. Question 11 The original intention of Jeff Bezos was only to sell books on Amazon.com and the rationale behind the intention or choice to just sell books on Amazon.com initially was to maintain a strong focus on the start-up.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

From my perspective, I completely agree with Jeff Bezos. The reason behind the agreement is that at the initial stage of a business focus should be maintained in one or some activities to establish the business and ensure its survival. Other activities and businesses can be added on at a later stage of the business. Question 12 As per Jeff Bezos, the Amazon business model is based on customers and the business focuses on listening to customers, inventing products and personalising. It enables Amazon to attract customers and sell products and generate revenue for the company. Question 13 Jeff Bezos certainly possessesthe mind of a strategist and at different times during the interview, it was expressed by him. One of the important observations that I made is that he clearly identified important elements for the success of the business. Bezos understood that for his business building a strong website is an important requirement for the lasting success of the business. Another important observation that I made from the videotape that indicates that Jeff Bezos hasthemind of the strategist is clarity of purpose and end result. Strategists have clarity of what they want and Jeff Bezos also had that clarity for his business. Bezos indicates that Amazon wants to be the most customer-centric business on the planet and have identified the role and importance of customers for the growth and success of the business.

References Books and Journals Annual Report. 2020. [Online]. Available Through: https://www.aboutamazon.com/? utm_source=gateway&utm_medium=footer Amazon. 2022. [Online]. Available Through: https://www.aboutamazon.com/? utm_source=gateway&utm_medium=footer

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

CRAFTING AND EXECUTING STRATEGY

Related Documents