ALL INSTRUCTIONS ARE ATTACHED (7 ATTACHMENTS) INCLUDING ALL OF MY PAPERS THAT ARE NEEDED IN ORDER TO COMPLETE THIS ASSIGNMENT. ALL INSTRUCTIONS AND THE RUBRIC ARE TO BE FOLLOWED. PLEASE LET ME KNOW TODAY IF YOU SHOULD HAVE ANY QUESTIONS.
Week 8 Final Project – Business Model Assessment
DUE: Jan 26, 2020 11:55 PM
Assignment Instructions
Goal: Conduct/construct an experiential evaluation/assessment of the business model of your organization (or one with which you are closely familiar) using the business model canvas and related sources.
Introduction: Managers who want to improve the effectiveness of their business model and organization, as well as to increase their own ability to manage, use diagnostics/assessments to determine the reality of business effectiveness in comparison to what they originally envisioned. Good feedback contributes to the development of plans to improve business/organizational effectiveness and management performance.
Instructions: Students will write a 2500-3000 word (about 10 pages in the main body) properly formatted APA paper (including a title page and references page, but no abstract) that evaluates/assesses the overall effectiveness of the business model used by your organization. This is the third of three assignments that draws from your association with your organization. The previous two “canvas” assignments flow into this one. Identify one or more of the building blocks from the business model canvas where modification should be recommended. Be careful to avoid bias in determining the issue/problem identified by using the canvas. Do not merely critique, but contribute to your organization’s overall success. This paper should be the culmination of the overall work you have done with the business model canvas so that all the pieces go together.
Your final paper should include:
· Your business model canvas – Post-It notes discussion/observations (week 2)—summarize this area, but provide the initial canvas.
· Identification of theoretical/behavioral trends that you observe in the business model and organization (week 5)—summarize this, do not merely cut and paste.
· Discussion of appropriate theory, metaphors, and frames with which to describe your business model in operation, as well as to identify areas needing improvement and how to get there.
· Use of the course resources to evaluate and diagnose your organization’s business model, as well as an integration of the course materials into your writing and consideration.
· Recommendations for improvements identified using the canvas, theories, and assessment tools used in this course. What are the expected outcomes.
· Use eight scholarly sources (especially case studies) to undergird your assertions from peer-reviewed literature.
· Thoroughly familiarize yourself with the assignment specs and ask questions if you are unsure of expectations.
The paper must have at least eight scholarly sources. No abstract is necessary, but a title page and references page should be included. Write your paper in third person, even though you are writing about an organization that you are familiar with. To do this, write from the perspective of a scholar who observes and researches about the case. Therefore, first person should be avoided.
BEFORE YOU WRITE/SUBMIT YOUR PAPER . . . I highly suggest that you view the following YouTube video (if you have not already done so). It will show you how to properly set up your paper with APA formatting:
to:
]
SPECAIAL NOTES FROM ME (THE STUDENT)
I am attaching all of the papers that I have already submitted and they are to be combined into 1 paper. With that being said, YOU must still include everything from THIS particular assignment and piece it all together. Please read the above instructions to make sure that the directions are followed. The rubric will be attached.
The papers that I did are attached and they need to be added into 1 paper. Follow all of the other instructions for this week 8 assignment. I do not have a paper for the very 1st assignment but I have attached the instructions for how to do it (it is week 2) and it should be merged into this 1 paper as well. IT IS HIGHLIGHTED WITH NOTES ON IT FROM ME.
(THIS IS THE 1ST ASSIGNMENT AND THE ONLY PAPER THAT I DO NOT HAVE SO IT WILL NEED TO BE DONE AND INCLUDED IN THIS WEEK 8 PAPER…I DO NOT HAVE A PAPER FOR IT TO SHARE…..IT SHOULD BE BASED OFF OF MY PEPSICO PAPERS THAT ARE ATTACHED)
GOAL: Create the initial element of your Business Model Generation—your business Model Canvas.
Introduction: Using the Osterwalder and Pigneur Business Model Canvas as a resource (coupled with the other resources of the course), create a business model canvas of the business organization where you work. Since every organization has unique features, do your best to work at the application of the various components of the building blocks of the canvas. Show as much detail as you can so that it is evident that you comprehend the general business model of your organization. There must be a demonstration of synthesis of the procedure on your part. You may need to interview some of the management team to verify the business model details of your organization. You may also benefit from conducting an Internet search of the Business Model Canvas to become comfortable with how it works. There are many other YouTube-type videos on the web that demonstrate the use of the canvas.
Assignment Instructions: Your submittal this week will be considered as a “draft” that should consist of:
1. A Cover page that provides a general description of your organization/business:
Name of the organization (preferably your present organization/business)
Date of origination (or incorporation)
Location (as appropriate; some entities require discretion)
Brief overview of the purpose of the organization/business
Description of your relationship and role in the organization/business
Other details that enable fuller explanation (if applicable)
2. Business Model Canvas with Post-It notes (as seen in the examples). You have three options for the submission of your canvas:
· You may download and use the blank
PowerPoint canvas with electronic Post-Its to create your canvas (click here)
, or
· You may create a Word that lists the nine building blocks (clearly identify each one) and uses bulleted points in the same manner as Post-Its.
· Creation of your post-its via the following web-help site, and then submission of the resulting URL for the finished canvas. See
(click on link) https://canvanizer.com/new/business-model-canvas
3. Create a memo (no particular format, but neatly presented) that describes what you learned about your organization/business as a result of creating the business model canvas.
Running Head: CASE STUDY ANALYSIS
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CASE STUDY ANALYSIS 6
Case Study Analysis
Morgan’s Metaphors
Paula Hawkins
Management 600- Organizational Behavior
American Public University System
December 31, 2019
Business Problems and Metaphors Used
Both PepsiCo Americas Beverages and Amazon.com, Inc. as global companies represents interesting case studies for the review of some metaphorical elements of structure, business and management designs. To start with, PepsiCo being in the healthy food market has faced many challenges and setbacks. The biggest challenge has been integration of its global activities. From the metaphorical machine view, PepsiCo the over 300,000 employees are expected to work diligently and meet the shareholders goals of profitability and growth (Aguirre-Mar, 2013). As a machine, PepsiCo is a tool to achieve the ends of its owners. PepsiCo is also underpinned by the organismic view where it has to compete with the likes of Coca-Cola for market. Guided by its culture, PepsiCo aims at winning with its diverse employees through inclusion and respect of others.
On its part, Amazon is driven by a culture of expansion and growth. This is in addition to continuous innovation and lean management of the capital it purchases (Berryman, 2013). This is an indicator that organizations can adapt and change. Innovation is a good way that has helped the Company to find ways of dealing effectively with change. Given the dynamic and technological market niche it operates in, it has for instance transitioned from physical delivery to digital delivery which is a major change in both distribution and logistics. It is also worth noting that Amazon has continued to enter new markets by creating new products and services through related diversification. It has done so to edge out competition which is a major threat to its business operations.
Critical Issues Stated In the Cases
There are a myriad of critical issues stated in the cases. Ranking on top is adaptation to changes due to dynamic market place. This is followed by the organizational culture of the organizations. Within the organizational culture, there are leadership hierarchical issues. Other issues that dominate the organizations are the interests of the stakeholders within the organizations, conflicts among the employees and power issues between the top leadership and the subordinates given the diverse workforce. Additionally, there is the effect of the decisions that are made by the top leadership and implemented by the bottom-line employees.
Evaluation of the Proposed Solutions, Their Validity, and the Use of Metaphors in the Solutions
By clinging to the organizational culture in its global reach, PepsiCo has been able to be a dominant player in the healthy food market with its beverages. According to Aguirre-Mar (2013), given the over 300,000 employees, commands are given from the top of its management hierarchy and travel throughout PepsiCo’s organization in a precisely defined way to have a precisely defined effect. That is why the employees bound by rules and beliefs, are able to work diligently and meet the set goals. It is expected in such a diverse workplace that there are wrangles and conflicts, but guided by its culture, employees respect of other and they all feel included thus the success of the company. The proposed solutions in Amazon have also driven its unprecedented expansion and growth (Berryman, 2013). The use of metaphors have assisted in the solutions. Since organizations must adapt to change, Amazon has followed suit and transitioned from physical delivery to digital delivery. It very well understands the dynamic and technological nature of the market niche it operates in, therefore its creation of new products and services through related diversification.
Proposed Recommendations
There are numerous recommendations that I can propose to both PepsiCo and Amazon. Using the organismic view which emphasizes growth, adaptation and environmental relations, both companies could use available to resources to edge out competition. On its part, PepsiCo work diligently on its beverages to outcompete Coca-Cola. On its part, Amazon could tap into the potential of selling everything that is not possible with EBay. Employees are an important aspect when it comes to company success, therefore, both Companies should work on rewarding and promoting employees so that they are satisfied to deliver. It goes without saying that the diversity of their workforces calls or inclusion and respect. In order to adapt well to changes, employees must be trained and allowed space to be innovative.
Communicating the Solutions in Each Case
It is imperative to note that or global corporations, there are organizational structures that are in place to ensure the companies succeed. Therefore, solutions in PepsiCo will be communicated using their continental or regional offices. The regional managers will then communicate to their immediate inferiors and consequently to the subordinates. Similarly, Amazon would do the same by ensuring that all their global agents and employees get the decisions and necessary information that will guide them in executing their duties. Decisions made at the top of the organizational hierarchies are processed by the employees in both the middle and bottom levels thus aiding in achieving organizational objectives.
Takeaways/Benefits of Using Metaphors in Management Practice
In conclusion, metaphors are useful tools, particularly in organizational communication. The metaphors used in analyzing the case studies, create vivid mental images which help readers clearly interpret the case studies. According to Cornelissen, and Kafouros, (2008), they keep a clear mental picture of the organization. Undeniably, through the 8 elements, Morgan vividly elaborates a clear picture or perspective of an organization as a machine, brain, organism, machine, instruments of domination, psych-prison, flux and transformation and a political system. Through the use of metaphors, it easy to grasp the context of an organization, understand its hierarchical structure, management control, leadership style and behavior. The metaphors give a clear and broad perspective by slicing an organization from a given angle. As a final note, the use of metaphors in management practice, help individuals look at organizations from various perspectives and opens the possibility for continued innovation and success.
References
Aguirre-Mar, M. (2013). Global Structural Design and Results: PepsiCo Case. Journal of Strategic Leadership, 4(2), 6-13.
Berryman, M. (2013). Amazon.com, Inc.: a case study analysis. Retrieved from
https://www.academia.edu/8744694/Amazon.com_Inc._a_case_study_analysis?auto =download
Cornelissen, J. P., & Kafouros, M. (2008). Metaphors and theory building in organization theory: what determines the impact of a metaphor on theory? British Journal of Management, 19(4), 365-379.
JOURNALOF STRATEGIC LEADERSHIP
Global Structural Design and Results: PepsiCo Case
Journal of Strategic Leadership, Vol. 4 Iss. 2, Spring 2013, pp. 6-
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© 2013 Regent University School of Leadership & Business
ISSN 1941-466
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Global Structural Design and Results: PepsiCo Case
Moises Aguirre-Mar
As a global company, PepsiCo represents an interesting case study for the review of some theoretical
elements of structural design: (1) international development level, from Galbraith (2000), (2) international
structure, from Ashkenas, Ulrich, Jick, and Kerr (2002), and (3) healthiness level of its hierarchy. Also, in
order to assess the organization’s level of flexibility, the article focuses on PepsiCo’s Mexico Food
(PMF) business unit and its Consumer Strategic Insights (CSI) department. PepsiCo is a company that
intends to continue its growth by strategically increasing its participation in the healthy food market; in
this process, the company has faced many challenges and setbacks that add an interesting perspective for
this review.
PepsiCo Global
According to PepsiCo’s SEC (Securities Exchange Commission) filings, it is a multinational
food and beverage company, present in more than 200 countries and regions, organized in four
business units: (1) PepsiCo Americas Foods (PAF), which includes Frito-Lay North America
(FLNA), Quaker Foods North America (QFNA), and all of the Latin American food and snack
businesses (LAF); (2) PepsiCo Americas Beverages (PAB), which includes all North American
and Latin American beverage businesses; (3) PepsiCo Europe, which includes all beverage, food
and snack businesses in Europe; and (4) PepsiCo Asia, Middle East and Africa (AMEA), which
includes all beverage, food and snack businesses in AMEA (PepsiCo, 2012). According to
Galbraith, there are five levels of international development: (1) seller; (2) local partner; (3)
start-up of foreign operations (FO); (4) implementer FO; and (5) contributor/leader of FO
(Galbraith, 2000, p. 36). PepsiCo is located in the level five, which has the following
characteristics: (1) international product development; (2) international brand management; (3)
JOURNAL OF STRATEGIC LEADERSHIP
Global Structural Design and Results: PepsiCo Case
Journal of Strategic Leadership, Vol. 4 Iss. 2, Spring 2013, pp. 6-13
© 2013 Regent University School of Leadership & Business
ISSN 1941-4668
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international partnering; (4) transfer and modification resource advantage from any country; (5)
cross-unit integration; and (6) management of distributed headquarters (p. 46-47). Galbraith
contends: “The organizational challenge to a multinational company has always been the
integration of activities that take place in different countries” (p. 3).
PepsiCo, as with most organizations, has adopted a geographical division. Galbraith (2000) said
that this structural strategy is implemented due to the following reasons: (1) the customary start-
up activities of an expansion—sales, distribution, service, and local marketing—are best
organized on a geographical basis; (2) to provide emphasis and focus; (3) to signal strategic
positions and possible candidates for upper levels; and (4) allocate and conserve scarce resources
(p. 71-72).
PepsiCo has almost 300 thousand employees around the world (PepsiCo, 2012b). According to
its webpage, their guiding principles are: “We must always strive to: (1) care for our customers,
consumers and the world we live in; (2) sell only products we can be proud of; (3) speak with
truth and candor; (3) balance short term and long term; (4) win with diversity and inclusion; (5)
respect others and succeed together” (PepsiCo, 2012a). The application of these principles
includes all the stakeholders of the company, which is, by the way, a complex task to promote
and evaluate. In the line of brand value, Pepsi is ranked in the 22nd place on the Interbrand list.
This list evaluates the top global brands’ value; it is interesting that Coca-Cola, PepsiCo’s main
competitor, has kept its position as the world’s most valuable brand for the past 12 years
(Wharton, 2003, p. 3).
Indra Nooyi has been PepsiCo’s CEO since 2006 (PepsiCo, 2012c). Her main strategic goal is to
transform the company “from a purveyor of sugar-laden bubbly beverages and salty snacks, into
one that has healthier and more wholesome offerings” (Wharton, 2012, p. 1). However, in the
implementation of this strategic process there are some financial setbacks that the company is
facing nowadays. “Investors are impatient. Some accuse Nooyi of focusing too intensely on her
strategy while overlooking PepsiCo’s North American soft drink business,” which is today’s
highest source of revenues (p. 1). Some analysts stated that Nooyi should not abandon her plans;
but, rather, she needs to develop a strategy that better balances the short term with the long term.
According to Yoram (Jerry) Wind, Wharton’s director of the SEI Center for Advanced Studies in
Management, “Companies can be socially responsible, provide more nutritional and healthier
products and still be profitable, but it requires careful management of board and Wall Street
expectations” (p. 4).
PepsiCo’s Executives’ Income and Hierarchy
Heroic leadership style and the statements of the top executives. Stauffer (1998) said
that the heroic leadership style is like “CEO-as Patton genre of leadership.” He also mentioned
that it is common for organizations to fall into what he called “the self-reinforcing heroic circle”
which has the following elements: (1) the leader feels responsible for the group, directions,
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Global Structural Design and Results: PepsiCo Case
Journal of Strategic Leadership, Vol. 4 Iss. 2, Spring 2013, pp. 6-13
© 2013 Regent University School of Leadership & Business
ISSN 1941-4668
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structure, and management; (2) the leader takes the initiative, controls the agenda, makes the
important decisions; (3) subordinates agree that the leader is responsible for the overall group;
(4) subordinates focus on their own subunits; (5) subordinates contribute, but within limited
boundaries, provide weak pushback against the leader’s ideas; (6) leaders sense lack of
ownership. Then the circle returns to first element and so on. This is a cycle that has the power
to self-reinforce the paradigm with its implied virtues and defects. In the 10K SEC filing report,
the board of directors made the following statement: “PepsiCo’s Board of Directors… is
responsible for overseeing the company’s risk assessment and mitigation, receives updates on
key risks throughout the year” (PepsiCo, 2012b). This statement emphasizes the paradigm of
heroic leaders and reinforces the hierarchy paradigm, regardless of if it is a healthy one or not
(Ashkenas et al., 2002, p. 42). Ashkenas et al. (2002) said that, in vertical hierarchies, roles are
clearly defined and more authority resides higher up in the organization than in lower
levels…when rank has its privilege, it is a clear symbol of vertical boundaries (p. 10). They also
contend that healthy hierarchies are those that meet the success requirements of organizations for
the twenty-first century: speed, flexibility, innovation and integration (p. 42).
Healthy vs. unhealthy hierarchy. According to the proxy report, PepsiCo’s CEO earns
the highest salary in the company and has access to the greatest compensation package (stock
options), followed in amount and access by the immediate inferior organizational ranks and so
on (PepsiCo, 2012a, p. 33–38). It seems that this very fact accentuates the hierarchical-heroic
paradigm in the company. Traditional hierarchies reward based on positions and levels, and not
in superior performance (Ashkenas et al., 2002, p. 50). Despite the fact that hierarchies are
required, as Keidel (1995) stated: “No society, organization, or family can ever function without
some measure of hierarchical control, role specialization, and sense of limit,” (p. 22), the real
question is whether these hierarchies are healthy or unhealthy. Ashkenas et al. (2002) said “there
are five warning signals of a dysfunctional hierarchy: (1) slow response time: when an
organization takes too long to make decisions, respond to customer requests, or react to changes
in market conditions; (2) rigidity toward change: when an organization insists “we have always
done this way,” or spend more effort finding ways not to change than on changing; (3)
underground activity: when creativity and innovation are driven underground; (4) internal
frustration: employees and managers feel dissatisfied with the organization, the way it works and
the way it treats them; (5) customer alienation: customers feel frustrated and angry because they
feel they are not listened to” (p. 44). Wind pointed out some of the mistakes that have been made
under Nooyi’s leadership: “They allowed the firm’s core brand to languish…PepsiCo elected not
to advertise during the Super Bowl telecast, one of the most-watched TV events of the year;
instead they spent 20 million dollars in a project named the Pepsi refresh project to support local
communities; however, according to Advertising Age this project has not had a major influence
on the brand’s bottom line. During China’s Olympic Games, Coca-Cola invested heavily in
marketing; now they have 17 percent of the market. PepsiCo did not market aggressively in the
same period; as a result, PepsiCo’s market share fell to 6 percent. Coca-Cola invested 10 million
dollars in the American Idol TV show, after PepsiCo passed on the opportunity to sponsor it;
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Global Structural Design and Results: PepsiCo Case
Journal of Strategic Leadership, Vol. 4 Iss. 2, Spring 2013, pp. 6-13
© 2013 Regent University School of Leadership & Business
ISSN 1941-4668
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later on, they sponsored the X Factor, a competing TV show to American Idol, at the cost of 60
million dollars” (Wharton, 2012, p. 3). PepsiCo seems to have been reactive, or at least slow to
move in their marketing strategies. The relationship between unhealthy hierarchy and the reward
system based on positions are evident. Ashkenas et al. (2002) contend that, in order to create
healthy hierarchies, the basis of the reward system must be changed from position to
performance with two main objectives: (1) to recognize past performance; and (2) to stimulate
competent (or different) performance in the future…people who make good contributions and
add to their skills are rewarded (2002, p. 51).
When reviewing these statements in the internal documents of the company, and the observations
made by other market analysts, the conclusion is that PepsiCo is a traditional semi-rigid
(unhealthy) hierarchy trying to move ahead into a more healthy structure in order to become
more competitive in the market. The task is possible, if Wall Street gives them enough time to
accomplish it (Wharton, 2012, p. 4). PepsiCo’s third guiding principle is attaining balance with
the long and short term, which may be the Achilles’ heel of Nooyi and other PepsiCo top
executives (p. 4). The chances to be successful in their plans would increase if the reward system
would change from being a reward system based on position to one based on performance.
PepsiCo Foods Mexico and the CSI department
PepsiCo Foods Mexico (PFM). In order to review PepsiCo’s organizational structure in
their Mexico business unit, an interview with Jorge Rubio, national director of CSI (Consumer
Strategic Insights) for PFM, was conducted. This unit has two main divisions: beverage and
foods. Due to the fact that Rubio’s office is situated inside the foods division, this section of the
article focuses on PFM and the CSI department.
According to the SEC 10K report, Latin American foods (LAF) represent $7.2 billion in
revenues (PepsiCo, 2012b, p. 4); Rubio said that PFM contributes with $5 billion; representing 7
percent of PepsiCo’s total sales (J. Rubio, personal communication, October 25, 2012). There are
three business units within PFM division: (1) Gamesa (cookies and crackers) with headquarters
in Monterrey; (2) Sabritas (similar to Lay’s chips), with headquarters in Mexico City; and (3)
Quaker (cereals and healthy food) with headquarters in Guadalajara. The three business units are
in a merger process since March of 2012; at the end of this process, there will be one business
unit with three different approaches according to the market category in which they are
competing (J. Rubio, personal communication, October 25, 2012). PFM competes with a leading
position in cookies and crackers (Gamesa) and in chips (Sabritas); and also has a small market
share in candy categories (Sonrics). In all three categories, the main competitor is Bimbo, which
is the largest baking products manufacturer in the world (J. Rubio, personal communication,
October 25, 2012).
The above-mentioned categories in Mexico have an estimated market value of 15 billion, and
PFM has a market share of 5 billion or thirty-three percent of the market (J. Rubio, personal
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Journal of Strategic Leadership, Vol. 4 Iss. 2, Spring 2013, pp. 6-13
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ISSN 1941-4668
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communication, October 25, 2012). Rubio pointed out that the core of this strategic market battle
is distribution. Eighty percent of sales are made through direct sales to changarros (family-owned
small stores). Coca-Cola is the leader in distribution with a scope of 1.2 million of changarros,
whereas Gamesa can only reach 700 thousand changarros (J. Rubio, personal communication,
October 25, 2012). This means that every day, thousands of vehicles transport these companies’
products nationwide. There is a popular saying among the Mexican people: they say that even in
the most remote villages of the sierra, you will find a changarro with Coca-Cola, Bimbo bread,
Gamesa cookies, and Sabritas chips on sale. For this to happen, every company needs to have a
highly efficient logistics system to deal with transportation, information technologies, storage,
label and packaging requirements, to keep the products fresh and the like (J. Rubio, personal
communication, October 25, 2012). Nadler and Tushman said: “No strategy, no matter how
dazzling it looks on paper, can succeed unless it is consistent with the structural and cultural
capabilities of the organization” (1997, p. 20). The success of these important competing
companies shows that they are consistent in their strategies and capabilities, although their
distribution methods may differ.
CSI. The interview took place in an office named the brain spa, where CSI members
carried out customer qualitative studies. For guests and outsiders, there is not a clue that this
office belongs to PFM; everything is designed and planned in such a way that it gives visitors the
impression that this office belongs to an independent marketing research company. Nothing in
the office is uniform; there are different kinds of chairs, pillows, futons and all in different colors
and forms. There are no furniture tables in the place. The fact is that the brain spa is actually a
Gesell chamber but it does not look like one; a giant picture of a fishbowl disguises the mirror’s
surface. On one side of the room there is bookcase with creativity books and table games to
promote creative thinking processes; next to the bookcase, there is a poster which explains the
rules of the brain spa: (1) strictly business—consumer’s creativity and innovation; (2) keep it
cool and keep it clean; (3) be a stranger, leave your ID at the door; (4) thank you for not
smoking; (5) spread the word, talk to someone about it; (6) practice curiosity; (7) take risks,
make mistakes; (8) be polite, don’t be loud. Jorge Rubio, a marketing veteran in the company
with 25 years of experience in the field, proudly explained that their intention was that the brain
spa be similar to Google’s corporate creativity center, a place where flexibility and discontinuity
carry out to creative processes to find productive ideas (J. Rubio, personal communication,
October 25, 2012).
In the interview, Rubio pointed out that they decided to change the name and the strategic
structure of the former marketing research department (MRD) in order to make it clear that the
department was to be more proactive and flexible, not limited to merely being a distributor of the
information obtained from the customers. The aim is that this area becomes a change agent for
PFM’s commercial area, leading faster reactions to meet their consumers’ requirements,
preferences and likes (J. Rubio, personal communication, October 25, 2012). The steps taken at
CSI made it clear that their intention is to increase their value offer to PFM. Handy pointed out
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ISSN 1941-4668
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that it is expected that executives not only do all that is required in their job’s description, but in
some way that they improve on that, to make the difference, to show responsible and appropriate
initiative, to increase the potentiality of the position and its contribution to the organizational
strategic goals (Handy, 1989, p. 130).
The structural design of CSI has two main groups: (1) insights BU’s, insights team inside each
business unit (Gamesa, Sabritas and Sonrics) that supports in research and brand strategy, and (2)
the CSI support center, the insights team which designs and executes, with qualitative and
quantitative research methodologies, in-house customer studies to support marketing and sales
strategies. Regarding the integration of CSI’s team, Rubio stated: “To integrate the CSI
department we followed these steps: (1) establish the vision; (2) define core strategies; (3) build
a team; (4) assign positions and responsibilities (structure); (5) execution” (J. Rubio, personal
communication, October 25, 2012). Although the elements are presented in a different order,
they are similar to Galbraith’s star model which has these five elements: “(1) strategy, which is
the company’s formula for winning; (2) structure, which determines the placement of power and
authority in the organization; (3) processes, information and decisions across the organization in
vertical and horizontal processes; (4) rewards, its purpose is to align the goals of the employees
with the goals of the organization; (5) people, human resources policies of recruiting, selection,
rotation, training, and development” (Galbraith, 2002, p. 9-14).
CSI’s organizational structure is flexible, with an approach on matrix-like processes. It is
expected that every business unit and individual become: (1) fast, (2) flexible, (3) efficient, (4)
focused on customers, (5) trustworthy, and (6) motivated (J. Rubio, personal communication,
October 25, 2012). These characteristics can become a strategic advantage for this business to
cope with the requirements of today’s organizations to be competitive. According to Galbraith,
there are six organization’s shapers: (1) buyer power, (2) variety and solutions, (3) the Internet,
(4) multiple dimensions, (5) change, and (6) speed (Galbraith, 2002, p. 4-6). If CSI department
continues to demand and develop these characteristics on each BU and their individuals, they
may maintain their market leadership position in the future.
Near the end of the interview, Rubio said that he encourages CSI’s employees to demand for the
kind of training that will be useful for increasing their effectiveness in their jobs (J. Rubio,
personal communication, October 25, 2012). This approach is aligned with Handy’s proposition
for employees to become responsible for their own development as well as the improvement of
their job positions (Handy, 1989, p. 130). In this paradigm of a flexible organization, in which it
is expected that employees be more self-responsible, the task of managers is that they be more
like a teacher, counselor and friend, as much as or more than being a commander, inspector, and
judge (p. 132).
Nadler and Tushman pointed out four imperatives in organizational design, and explained them
as follows: “(1) organizational design is an essential and ongoing part of each manager’s job; (2)
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ISSN 1941-4668
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organizational design emanates from the overall visions for the organization; (3) as managers
make design decisions, they must constantly balance the two aspects of organization—the
effectiveness of the design in terms of performing the work required by the strategic objectives
and the design’s impact on individuals, group relationships, and the political dynamics of the
organization; (4) the ultimate goal of design is to use creatively the new structural materials and
collateral technologies to achieve a fundamentally new architecture” (Nadler & Tushman, 1997,
p. 14). During the interview, Rubio made it evident that, throughout his career as marketing
specialist in the company, he has dealt with these imperatives several times. This theoretical
reference seems to be aligned with the practical application inside PFM.
Conclusions
Change process implementation becomes more difficult in complex organizations, as is the case
of PepsiCo. Unhealthy hierarchies are closely related to reward systems based on position
instead of performance. Healthy hierarchies are fast, flexible, innovative and integrative. It is
easier to integrate and develop these characteristics in small business units or departments. The
attitude of the BU’s leader toward building a healthy hierarchy will determine the unit’s level of
flexibility and effectiveness. Strategic and structural changes require from the leaders who
promote it, that they consider short and long-term risks, as well as the efforts and consequences
implicit in their decisions.
About the Author
Moises Aguirre-Mar is a consultant, entrepreneur and university professor. He is a former
training and development manager at CEMEX, and has also served as a youth pastor. He is
currently pursuing his doctorate in strategic leadership at Regent University. For questions
regarding this article, he can be reached at: moismar@regent.edu.
References
Ashkenas, R., Ulrich, D., Jick, T., & Kerr, S. (2002). The boundaryless organization: Breaking
the chains of organizational structure. San Francisco, CA: Jossey-Bass.
Galbraith, J. R. (2000). Designing the global corporation. San Francisco, CA: Jossey-Bass.
Galbraith, J. R. (2002). Designing organizations: An executive guide to strategy, structure, and
process. San Francisco, CA: Jossey-Bass.
Handy, C. (1989). The age of unreason. Boston, MA: Harvard Business School Press.
JOURNAL OF STRATEGIC LEADERSHIP
Global Structural Design and Results: PepsiCo Case
Journal of Strategic Leadership, Vol. 4 Iss. 2, Spring 2013, pp. 6-13
© 2013 Regent University School of Leadership & Business
ISSN 1941-4668
13
Keidel, R. W. (1995). Seeing organizational patterns: A new theory and language of
organizational design. San Fransisco, CA: Berret-Koehler.
Nadler, D. A., & Tushman, M. L. (1997). Competing by design: The power of organizational
architecture. New York, NY: Oxford University Press.
PepsiCo. (2012a). Pepsi global code of conduct. Retrieved from
http://www.pepsico.com/Download/CodeOfConduct/English_Global_Code_of_Conduct_
EN
PepsiCo. (2012b, February 27). 10K report. Retrieved from EDGAR online SEC Filings,
http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=8440021-11199-
38416&type=sect&dcn=0001193125-12-081822
PepsiCo. (2012c, May 2). Pepsico (proxy statement 2012). Retrieved from Notice of Annual
Meeting of Shareholders,
http://www.pepsico.com/annual11/downloads/PepsiCo_Proxy_2012
Stauffer, D. (1998). 10 myths about post-heroic leadership—and why they’re wrong. Harvard
Management Update, 3-6.
Wharton, K. (2012, March 28). Can Indra Nooyi revive PepsiCo? Retrieved from Pop Quiz,
http://knowledge.wharton.upenn.edu/article.cfm?articleid=2966
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Amazon.com, Inc.: a case study analysis
Reid M. Berryman reid.m.berryman@wmich.edu
School of Communication
Western Michigan University
ABSTRACT: This paper is a case study analysis of Amazon.com, Inc. (Amazon). In this paper, I look at the business strategy of
Amazon. Special attention is given to five parts, including a historical overview, organizational structure, business operations,
financial performance, and the future outlook of Amazon. The historical overview chronologically describes landmark events of
Amazons beginnings to their current position today. The companies departmental structure is categorized and briefly commented
on in section two. An analysis is provided for Amazons operations with a breakdown of major products and services offered. A
comprehensive financial analysis of Amazon follows (section four) with matching insight that links performance to events and
business strategies. The future outlook of Amazon is discussed last, offering a topical overview of where Amazons business
interest is shifting.
KEYWORDS: Cloud computing, Computational advertising, E-book readers, Electronic commerce, Multimedia content
creation, Multimedia streaming, Personalization, Recommender systems, Tablet computers, Web services.
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I. HISTORICAL OVERVIEW
In the early 1990’s, the dot-com boom drastically changed the landscape of communications, business and culture with no signs
of regression. For new businesses, effective innovation offered great potential through the World Wide Web. Growing popularity
of Internet access created an inspiring logistical niche later popularized as “E-commerce”, proving to be a successful means of
purchasing products through the Internet. Jeff Bezos, founder of Amazon.com, Inc. (Amazon) was the first to profitably innovate
in this emerging market, and has become the world’s largest online retailor.1 Bezos realized the opportunity presented by
the web revolution, whereas becoming an established industry leader was the only means to long-term profitability. In 1994,
Bezos left his vice-president position at D. E. Shaw, a Wall Street firm, to move forward with his business idea that would soon
become Amazon.com.2 Before the end of 1994, Jeff Bezos incorporated his book e-commerce company as “Cadabra”.3 Later,
Bezos rebranded the company as Amazon for two distinct reasons: The alphabetical advantage when listed in directories and
metaphorically representing the Amazon River in terms of the company’s size. Piloted right out of Bezos’s garage, Amazon
became an instant success and soon acquired a warehouse for continued operations. Bezos planned his supply chain strategically
from day one, placing the company headquarters in Seattle near a large book distributor in Oregon.4 An illustration of his original
homepage in 1994 can be viewed in Figure 1. listed below.
Figure 1.
Amazon.com Home Page (1994)
Source: Telco2.net 2014 5
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1.1 Early Growth & Mission
By 1995, Amazon quickly became the world’s top online book selling website. Two popular web portals (Yahoo! and Netscape)
placed it in their featured website lists.6 Two business practices correlated with Amazons immediate scalable success, it was
capable of adjusting to rapid demand of products while maintaining satisfied customers. Amazons mission statement still reflects
these core concepts today:
To be Earth’s most customer-centric company, where customers can find and discover anything they might
want to buy online, and endeavors to offer its customers the lowest possible prices.7
Amazon created a supply chain based on wholesale relationships for inventory it did not have, acting as the middleman in the
shipping process because it still only had its Seattle warehouse. With this logistical design, Bezos was able to ship to over 50
states and 45 countries in July of 1995.8 Bezos’s bachelor degree in computer science and electrical engineering from Princeton
(1986) provided him insight to the interface, information systems and database capabilities Amazon relied on.9 Leveraging these
three technically competitive factors allowed customers to easily find the books they needed and simplified the purchasing
process. He sought balance between capability, performance and low operations cost in the selling and delivery of books. This is
supplemented by their customer-oriented culture; not just a necessary task but also a value they believe makes Amazon
profitable. According to Bezos “Customer focus is a cultural issue” and he expresses it as a differentiator for Amazon.10
When they’re in the shower in the morning, they’re thinking about how they’re going to get ahead of one of
their top competitors…Here in the shower, we’re thinking about how we are going to invent something on
behalf of a customer.11
When Amazon releases a new service, it’s directed at innovating within their current customer base or exploiting the market for
new ones. In July of 1996, they launched their “Associates” program, allowing independent websites to receive commission
revenue at 3-8% per sale. Specifically, this was performed by inline linking to Amazon titles and was one of their first vertically
integrated moves.12 The dynamic reach that individual sellers could achieve at the niche level produced a great revenue source for
Amazon. The success of this program took hold in 1997, when large companies at the time such as Yahoo! and America Online
became the top grossing associates in the program.13
1.2 Amazons IPO
Amazon became a public company in May of 1997 with an initial public offering (IPO) of three million shares of common
stock.14 The IPO provided growth funding to develop their distribution capabilities and website features. The company’s
investment activities were heavily scrutinized. Analysts were doubtful regarding the company’s ability to produce a return on
investment. Bezos explained the company’s goals in his first letter to shareholders in 1997:
Our goal remains to continue to solidify and extend our brand and customer base. This requires sustained
investment in systems and infrastructure to support outstanding customer convenience, selection, and service
while we grow.15
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By 1998, Amazon was fast becoming one of the world’s leading Internet startups. They conducted business with over one and
half million customers, reaching both the United States and 160 countries.16 This outreach made them the third largest bookseller
in the U.S. without the brick and mortar presence its competitors had (Barnes & Noble and Borders).17 Outstanding success as an
e-commerce bookseller influenced the development of new services, products and additional markets to enter. Amazon acquired
the “Internet Movie Database” (IMDB) in April of 1998, purchasing their way into the online media market.18 Bezos realized
IMDB’s capability to vertically integrate as an information asset. IMDB aligned with his vision of distributing media and
entertainment products, made evident when he promoted movie sales through it shortly after the acquisition.19 Two other
acquisitions in 1998 eliminated potential competitors in the book e-commerce industry. “Bookpages” and “Telebook” based in
the United Kingdom and Germany were acquired for a total of $55 million. This decision was Amazons first transnational
horizontal growth, adapting their business model to cultures that valued different books than their domestic consumers.20
1.3 From Growth to Regression
In 1999, Amazon hit a strategic barrier where they were unable to simply acquire the competition as in the past. “Amazon
Auctions” was released to compete with the growing consumer-to-consumer auction website “eBay”.21 Unfortunately, replicating
auction style purchasing on Amazons e-commerce platform proved ineffective. Instead, it evolved into a differentiated product
called “Amazon Marketplace” that took better advantage of Amazons platform. Amazon Marketplace allowed customers to
compete with prices Amazon offered, which developed a win-win solution.22 Jeff Bezos soon emerged as a celebrity CEO and
was titled “Time Magazine’s Person of the Year” in 1999.23 Bezos made aggressive executive decisions with positive outcomes,
which increased his individual fame and significantly shaped the culture Amazon represents today.24 As the dot-com bust
approached, it affected the stock price between 2000-2002, marking the company’s first regressive business decisions. Bezos
rationalized the short-term stock sink between these years and reassured shareholders it was a result of temporary causes. Bezos
stated with confident and now proven accuracy:
So, if the company is better positioned today than it was a year ago, why is the stock price so much lower
than it was a year ago? As the famed investor Benjamin Graham said, ‘‘in the short term, the stock market is
a voting machine; in the long term, it’s a weighing machine.’’ Clearly there was a lot of voting going on in
the boom year of ’99—and much less weighing.25
1.4 Dot-com Survival & Returning Patterns
Amazon posted a $3 million first quarter net profit in 2002, signifying the end of its internal recession. Operating as a lean cost
cutting corporate culture led to their first annual profit in 2003 at $35.3 million.26 Stable financial growth soon followed and
maintaining profitability these years rebooted Amazons business strategy of acquisitions and innovations. In 2005, the debut of
the still popularized service “Amazon Prime”, a “shipping club” arrived.27 Shipping time was a decision criterion customers used
when evaluating online ordering, and Amazon Prime wanted to close this gap, experiencing profitability with the service soon
after.28 Amazon had now expanded their product categories far beyond books, offering apparel and electronics since the early
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2000’s. Amazon was also making “heavy investments in technology” to become a differentiator in digital services, cutting its
operating margin to 4.1% in 2005.29 This worried investors in spite of Bezos’s explanations; Wall Street analysts such as Steve
Weinstein at Pacific Crest Securities reflected the concerns of many regarding Amazon’s strategy:
I was impressed with the revenue acceleration, but the margins are a sticky point. It’s just not clear they’re
getting the return on their investments.30
In alignment with Amazons technical investments, they prepared the legal side of their online video content network they hoped
to grow by purchasing distribution rights from NBC and other networks.31 Amazon then became an entrant into this new market
through their video and media digital delivery or video-on-demand (VoD) services.32 Prior investments in technical infrastructure
made Amazons charge into digital services a next step in Bezos’s vision. On August 25th 2006, Amazon publically announced
their entry into the computational services industry.33 EC2 (Elastic Compute Cloud) was a revolutionary service that took true
advantage of Amazons scale of operations and their geographical placement. They were the first to offer cloud computing power
in an easy to purchase, incremental model, dynamically scaling to client needs. This declared Amazons successful entry as a
technology services provider, still showing growth in 2013.
Amazon pushed investments into hardware development, an area they had yet to conquer and released their first
hardware device in 2007 called the “Kindle”, selling out almost instantly.34 Placing a handheld e-book reader in customer hands
made the purchasing process much more natural. In 2009, continued success of their e-book selection, the Kindle, and growing
exchange efficiencies led to the announcement they had sold more digital books than printed ones.35 They unveiled “Amazon
Prime Instant Video” which in 2011 became a direct competitor with Netflix and Hulu streaming services.36Amazon also made
strategic licensing contracts between 2011-2012 with Disney-ABC, 20th Century Fox, West Discovery Communications, PBS
Distribution, and NBC-Universal Cable & New Media Distribution, positioning them well for online video delivery.37
Amazon continued expanding its distribution centers around the globe in China, France, and India continuing to grow
diversity in their product line.38 Bezos and Amazon remained fiercely competitive and innovative through an industry bust as
well as a global financial crisis. This was not by chance and instead an example of highly successful long term strategic planning
with rational reactions as unpredictable events emerged.
II. ORGANIZATIONAL STRUCTURE
Amazon has developed the industry reputation for being an “everything store.”39 Their product diversity continues to grow
through acquisitions of successful competitors and innovations into new niche markets.40 Headquartered in Seattle, Washington,
Amazon operates on a global scale. Beyond the corporate offices, their fulfillment, customer service, data, and software
development centers are located in many countries. Amazon’s products, services, and divisions are vertically integrated to create
internal synergies so departmental names and structure are dynamic and change often. Table 1 displays the nine divisions that
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make up Amazon, Inc. An aggregate table from varying sources with a detailed breakdown by individual services and products
can be seen in Appendix 1.
Table 1.
Amazon.com, Inc.’s organizational chart (Oct 2013)
North
America
and
International
Retail
Seller
Services
Finance
and
Administration
Digital
Legal
Human
Resources
Amazon
Web
Services
Worldwide
Operations
and
Customer
Service
E-‐Commerce
Platform
Source: Amazon.com, Inc. 2013 41
III. BUSINESS OPERATIONS
3.1 Business Philosophy
Amazon communicates its business and operating philosophy through the vision of its CEO Jeff Bezos. Their mission statement
loosely defines the products and services Amazon sells, instead discussing customer service as being critical to their success.42 As
a result, it’s clear Amazon does not prefer to label itself as the seller or producer of any one product or service. First, Amazon
recognizes markets they can compete for customers in that are underserved by existing competitors. Secondly, Amazon
strategically innovates by developing new markets through improved delivery methods or synergetic combinations of other
strategic business units.43 Each market venture always ties back into their distribution and logistical capabilities, clearly
represented in their most profitable products and services.
3.2 Aggressive Entrepreneurial Culture
Amazon takes a proactive approach to external market pressures, avoiding forced reactions to competitors and management by
crisis. Jeff Bezos states Amazon is “internally driven to improve our services”.44 Their market view is aggregated through their
own customer’s reactions and displays the entrepreneurial orientation of Amazon, “When we’re at our best, we don’t wait for
external pressures”.45 Smaller competitors in an industry can get away with mimicking competition for a profitable share; being a
successful industry leader means creating the forces others firms react to.
3.3 Current Products
While Amazon continues to grow each year, the company remains focused on the business of E-commerce. Amazon began as a
technology and database oriented company moving physical product, but has since transformed its business model as physical
products are widely converted to digital content (Book’s, DVD’s, Web Services). Amazon has consistently reinvested its profits
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in new technological development, a financial strategy that caused great concern in the early 2000’s. The negative speculation of
this strategy has been widely dropped, although Bezos refuses to leave it unaddressed:
Our heavy investments in Prime, AWS, Kindle, digital media, and customer experience in general strike
some as too generous, shareholder indifferent, or even at odds with being a for-profit company.46
Bezos wants investors to take a long-term view toward growth and development. This approach has not always been well
received by outside investors.47
3.3.1 Retail Website and E-Commerce
Amazon’s retail service focuses on “more types of products, more conveniently and at lower prices”.48 Their retail sales and
distribution vertically integrate with all other products offered (both digital and physical). Through their e-commerce platform,
they empower the consumer with tools to research and comparison shop. When the decision to purchase is made, they make the
process as easy, cost effective and satisfying for the consumer as possible.
3.3.2 Amazon Web Services (AWS) [2006] 49
Amazon focuses on attracting “developer customers”, through selling “cloud infrastructure services” hosted at Amazon’s data
centers50. Amazon is able to subsidize its own data and processing requirements by turning what’s normally a cost center into a
profitable division. Amazons ability to successfully scale and manage large projects has placed them as the market leader in
cloud computing services.51
3.3.3 Digital Media Delivery [2006]
Amazon offers a variety of digital content delivery services (Amazon Instant Video September 2006, Amazon MP3 September
2007, and the Kindle Store November 2007).52 Amazon Instant Video has distribution rights from three major mainstream
broadcasting networks (CBS, NBC, and FOX) in addition to agreements with smaller broadcasting networks.53 Amazon MP3
differentiates its platform from competitors by offering downloads with no Digital Rights Management (DRM).54 The Kindle
store sells content designed for the Kindle platform. E-books are the primary digital product sold, but shared content between the
aforementioned media services exist as well.
3.3.4 The Kindle [2007]
Amazon’s fulfillment of their customer centric mission was shown through the development of their Kindle e-reader in 2007,
incorporating every leading philosophy the company stands for. Amazons strategy reached beyond the product itself, stating that
“roughly breakeven prices” was their goal. 55 Profitability came from the content delivery system and purchasing ability placed in
consumer hands. Amazons vision of becoming a digital content distributor primarily evolved from the Kindles operating strategy,
disruptively innovating the e-book industry:
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We want to make money when people use our devices – not when people buy our devices 56
Many versions have existed since the original, developing into two distinct device product lines based on hardware and
operating systems. The “E-Ink” and “Android” devices fully integrate with Amazons e-book distribution services while the
Android models add additional media capabilities.57
IV. FINANCIAL PERFORMANCE
Amazon’s financial performance is evaluated differently than most corporations of their size. From Amazon’s perspective, the
most accurate measure for evaluating the company is a Non-GAAP measure of free cash flow.58 Improvements in free cash flow
occur by increasing operating income and managing working capital owned.59 This measure has regularly decreased from its peak
in 2009 at $2.92 billion to $395 million ending the fiscal year of 2012. 60 Amazon stated this measure is volatile to “working
capital, the timing and magnitude of capital expenditures, and our net income”.61 Table 3 is a consolidated financial statement
representing GAAP financial metrics in addition to free cash flow statements. Amazon experienced yearly increases in Net sales
from $24,509 billion in 2009 to $61,093 billion in 2012. Regular capital expenditure increases are present in each year as well,
remaining consistent with previous investment statements from Bezos.62 Amazon began reporting decreasing Net income since
2010 leading up to a loss of $39 million in 2012. Their third quarterly report in September of 2013 showed an increase from
second quarter results, going up to $34 million of Net income, reversing their downward trend.63
Table 3
Amazon.com, Inc.’s 2012 annual report
Source: Amazon.com, Inc. 2013 64
Owners of Amazon stock have never received dividend payments, Jeff Bezos believes in keeping “all future earnings to finance
future growth”.65 Amazon is known for its thin “operating margin”, a warning indicator of profitability problems to most
financial analysts. Sustained investments in technology and capacity growth explain this thin margin, while representing the past
three years declining Net profit.66. Despite financial analyst norms, Amazon has received a steadily increasing valuation per share
reporting a high of $373.49 on November 18th 2013 up from $131.41 on November 18th 2009.67 Slate magazines economics
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correspondent Matthew Yglesias sarcastically summarizes this financial strategy:
…Amazon, as best I can tell, is a charitable organization being run by elements of the investment community
for the benefit of consumers.68
Amazon operates in two different segments, North America and International, with sales divided into Media, Electronics and
other General Merchandise, and Other.69 Representative of their Net sales increases; they show growth in both segments and in
every division. Amazon discloses their “Other” services line item as representing AWS sales.70 Table 4 displays the past three
annual financial reports by segment.
Table 4
Amazon.com, Inc.’s 2012 annual report
Source: Amazon.com, Inc. 2013 71
V. FUTURE OUTLOOK
Amazons history with capital purchasing and other heavy investment actions resonates through the company as justification for
lean operations. They are driven by a culture of expansion and growth, in addition to continuous innovation and lean
management of the capital they purchase. Amazon’s presence in the marketplace is a strong force felt by many firms across
multiple industries.
5.1 From Packages to Packets
Amazon continues to generate most of its revenues from the sale and distribution of retail products. Although, the Amazon Web
Services (AWS) division is experiencing faster growth in comparison to its retail counterpart. Greater development in their
computing capacity infrastructure is expected, and continued leasing of their computing infrastructure is suited to follow.
Amazon was the first company to pioneer cloud computing under a successful business model, whereas large media distributors
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such as Netflix rely on purchasing their capacity.72 This puts Amazon in a unique dichotomy, as their Prime Instant Video
service was created to enter the market of digital video delivery.73 Bezos explained the situation well at his AWS talk in 2012:
We may compete on Prime Instant Video, but we bust our butts every day for Netflix on the AWS side.74
Senior Vice President of Amazon, Andy Jassy, made it evident at the 2013 AWS re:Invent conference that much greater market
potential exists in this area of services:
Jeff is very excited about the AWS business and he believes – like the rest of the leadership team does – that
in the fullness of time- it is very possible that AWS could be the biggest business at Amazon.75
The transition from physical delivery to digital delivery is a point of change in the history of distribution and logistics. Amazon
had the advantage of being somewhere in between with its original book delivery service, competing with brick and mortar
stores. Now it aims to make the transport of processed data an even larger revenue source in the future for the company.
5.2 A Change Catalyst for the Marketplace
Amazon views its core and subsidiary businesses as constant engineering problems, where improvement from even the smallest
incremental projects is welcomed.76 Consumer behavior studies in addition to numerous patents have been filed by Amazon to
make online purchasing faster, safer and more likely to occur through them.77 This differentiated competency makes them a
change catalyst in the way consumers react to the singularity experienced between physical and digital products. This is achieved
by operating in businesses they can synergize and vertically integrate into the rest of their company. Amazon discussed numerous
services and products in their 2013 third quarter letter that displayed this strategy well. One of their services, “Kindle
MatchBook” aims to enhance Amazons already growing e-book market. The service allows consumers to buy e-books for print
books previously purchased through Amazon at a discounted rate for less than $3.78 This further represents their customer centric
model, rewarding consumers who purchased from Amazon in the past. An outlined goal is that it will convert even more of their
print book customers into Kindle users. Amazon will continue to move forward by offering the widest array of digital content,
just as it offers the largest selection of retail goods. By obtaining digital content rights from media suppliers, they plan to offer the
most diverse media selection available to customers at the lowest cost. Using backward vertical integration, Amazon even
announced the development of their own in-house original broadcasted shows.79
Amazon has shown drastic growth and differentiation since its original position as an online book retailor in terms of
the products and services they provide. Their primary strategy is to always maintain focus on customer-centricity, innovating and
adding value for registered customers. This has proven to be an effective core competency in the marketplace, knowing that once
you are a customer the relationship brings benefits long after a purchase.
Amazon faces great competitive forces in reaction to their innovation and fast growth. Patent infringement claims have
become a regular occurrence for their legal department, in addition to new potential taxation laws that could affect their overall
revenue.80 These legal and political threats become financial threats to a company that operates on thin margins. Operating lean in
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lieu of these forces calls for innovations in cost restructuring, especially because Amazon has little control on the source of these
threats and claims.
Amazon will continue to enter new markets with products and services, but also create new ones through related
diversification of subsidiaries in its highly vertically integrated structure. The future holds great potential for Amazon in
becoming the greatest distributor of digital content. How they leverage this ability could produce competitive forces previously
unheard of, especially in fragmented markets with no clear leader. Amazon announced in December of 2013 a plan to offer flying
drone delivery, enabling even more control over their value chain.81 “Gopago”, a point of sale company was also acquired,
indicating Amazon’s interest in payment processing.82 This innovation and acquisition represent their business philosophy,
closing in and controlling both ends of the value chain. In doing so, Amazon can control cost, customer experience and increase
profits through the long tail of their diverse product and service offerings.
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Grocery,
health
and
beauty: Toys,
kids
and
baby: Movies,
music
and
games:
Grocery
and
gourmet
food Toys
and
games Movies
Wine Bay
products Blu-‐ray
Natural
and
organic
food Clothing
(kids
and
baby) Musical
instruments
Health
and
personal
care
products Video
games
for
kids Video
games
Beauty
products
Electronics
and
computers:
Sports
and
outdoors: Home,
garden
and
tools: TVs
Exercise
and
fitness
equipment Kitchen
and
dining Home
audio
and
theater
Outdoor
recreation Furniture
and
decor Camera,
photo
and
video
Hunting
and
fishing Bedding
and
bath Cell
phones
and
accessories
Cycling Appliances MP3
players
and
accessories
Athletic
and
outdoor
clothing Patio,
lawn
and
garden
equipment Car
electronics
and
Global
Positioning
System
Team
sports Home
improvement
supplies Appliances
Golf Power
and
hand
tools Electronic
accessories
Boating
and
water
sports Lamps
and
light
fixtures Laptops,
tablets
and
netbooks
Fan
shop Kitchen
and
bath
fixtures Desktops
and
servers
All
sports
and
outdoors Hardware Computer
accessories
and
peripherals
Building
supplies External
drives,
mouse,
and
networking
Seller
Services Arts,
crafts
and
sewing Computer
parts
and
components
Web
services Pet
supplies Software
Order
fulfillment Personal
computer
games
Marketing
and
promotional
services,
including
online
advertising Printers
and
ink
Co-‐branded
credit
cards Office
and
school
supplies
Finance
and
Administration Digital Legal
financial
processes
and
controls Kindle
E-‐Readers intellectual
property
and
patents
financial
reporting
and
accounting
practices Amazon
instant
video public
policy
initiatives
facilities
management MP3
downloads business
ethics
and
compliance
administrative
functions Game
downloads risk
management
litigation
Human
Resources Amazon
Web
Services Worldwide
Operations
and
Customer
Service
Recruiters Amazon
Elastic
Compute
Cloud supply
chain
management
Specialists Amazon
Simple
Storage
Service transportation
HR
Business
Partners Amazon
SimpleDB logistics
Learning
&
Development Amazon
Simple
Queue
Service distribution
Human
Resource
Information
Systems Amazon
Flexible
Payments
Service inventory
management
Compensation
&
Benefits Amazon
Mechanical
Turk customer
service
Amazon
CloudFront
Publishing E-‐Commerce
Platform Worldwide
Operations
and
Customer
Service
Amazon
Publishing supply
chain
management
Authors transportation
Musicians logistics
Filmmakers distribution
App
Developers inventory
management
customer
service
Kindle
Direct
Publishing
Independent
Authors
Appendix 1.
Amazon.com, Inc.’s extended organizational chart (Oct. 2013) 83
ITERA
2014,
The
12th
Annual
Conference
on
Telecommunications
and
Information
Technology,
4
April
-‐6
April
2014,
Louisville,
Kentucky.
12
REFERENCES
1 O’Connor, Clare. “Wal-Mart Vs. Amazon: World’s Biggest E-Commerce Battle Could Boil Down To Vegetables.” Forbes.
http://www.forbes.com/sites/clareoconnor/2013/04/23/wal-mart-vs-amazon-worlds-biggest-e-commerce-battle-could-boil-down-to-vegetables/
(Retrieved: 11 Nov, 2013).
2 “Amazon.com, Inc.” International Directory of Company Histories. Ed. Tina Grant. Vol. 113. Detroit: St. James Press, 2010. Business Insights:
Global, Available at:
http://bi.galegroup.com.libproxy.library.wmich.edu/global/article/GALE%7CI2501313853/918aa6711abf9ca5a3a1da9581f67787?u=lom_wmich
u , Retrieved: 23 Oct, 2013
3 Byers, Ann, Jeff Bezos: The Founder of Amazon.com, (The Rosen Publishing Group,
2007)http://books.google.com/books?id=Nz43wixr2IcC&pg=PA47
4 “Amazon.com, Inc.” International Directory of Company Histories. Ed. Tina Grant. Vol. 113. Detroit: St. James Press, 2010. Business Insights:
Global, Available at:
http://bi.galegroup.com.libproxy.library.wmich.edu/global/article/GALE%7CI2501313853/918aa6711abf9ca5a3a1da9581f67787?u=lom_wmich
u , Retrieved: 23 Oct, 2013
5 “Infonova Presentation to EMEA Telco 2.0 Brainstorm”, Nov 2009, Available at:
http://www.telco2.net/blog/images/amazon%20early%20screen%20shot%20nov%202009 , Retrieved 23 Oct, 2013
6 “Amazon.com, Inc.” International Directory of Company Histories. Ed. Tina Grant. Vol. 113. Detroit: St. James Press, 2010. Business Insights:
Global, Available at:
http://bi.galegroup.com.libproxy.library.wmich.edu/global/article/GALE%7CI2501313853/918aa6711abf9ca5a3a1da9581f67787?u=lom_wmich
u , Retrieved: 23 Oct, 2013
7 Amazon.com, Inc., “Careers Homepage.” Accessed October 23, 2013. http://www.amazon.com/Careers-
Homepage/b?ie=UTF8&node=239364011.
8 “Amazon.com Inc.” Notable Corporate Chronologies. Detroit: Gale, 2013. Business Insights: Global, Available at:
http://bi.galegroup.com.libproxy.library.wmich.edu/global/article/GALE%7CI2501150074/2ba9062d44d19c5764e9282fc4cd0d55?u=lom_wmic
hu , Retrieved: 23 Oct, 2013
9 “Jeffrey Preston Bezos,” The Biography Channel website, http://www.biography.com/people/jeff-bezos-9542209 (accessed Oct 23, 2013)
10 Burke, Doris, and Mangalindan JP. “Amazon’s Jeff Bezos: The ultimate disrupter.” Fortune, 11 16, 2012.
http://management.fortune.cnn.com/2012/11/16/jeff-bezos-amazon/ (accessed October 23, 2013).
11 Ibid.
12 “Amazon.com, Inc.” International Directory of Company Histories. Ed. Tina Grant. Vol. 113. Detroit: St. James Press, 2010. Business Insights:
Global, Available at:
http://bi.galegroup.com.libproxy.library.wmich.edu/global/article/GALE%7CI2501313853/918aa6711abf9ca5a3a1da9581f67787?u=lom_wmich
u , Retrieved: 23 Oct, 2013
13 Ibid.
14 Ibid.
15 Jeffrey, Bezos. Amazon.com, Inc., “1997 Shareholder Letter.” Last modified 1997. Accessed October 23, 2013. http://media.corporate-
ir.net/media_files/irol/97/97664/reports/Shareholderletter97
16 Ibid.
17 “Amazon.com Inc.” Notable Corporate Chronologies. Detroit: Gale, 2013. Business Insights: Global, Available at:
http://bi.galegroup.com.libproxy.library.wmich.edu/global/article/GALE%7CI2501150074/2ba9062d44d19c5764e9282fc4cd0d55?u=lom_wmic
hu , Retrieved: 23 Oct, 2013
18 “Amazon.com Inc.” Notable Corporate Chronologies. Detroit: Gale, 2013. Business Insights: Global, Available at:
http://bi.galegroup.com.libproxy.library.wmich.edu/global/article/GALE%7CI2501150074/2ba9062d44d19c5764e9282fc4cd0d55?u=lom_wmic
hu , Retrieved: 23 Oct, 2013
19 Amazon.com, Inc., “Amazon.com Acquires Three Leading Internet Companies.” Last modified 4 27, 1998. Accessed October 23, 2013.
http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-newsArticle&ID=502989&highlight=
20 Ibid.
21″Amazon.com, Inc.” International Directory of Company Histories. Ed. Tina Grant. Vol. 113. Detroit: St. James Press, 2010. Business Insights:
Global, Available at:
ITERA
2014,
The
12th
Annual
Conference
on
Telecommunications
and
Information
Technology,
4
April
-‐6
April
2014,
Louisville,
Kentucky.
13
http://bi.galegroup.com.libproxy.library.wmich.edu/global/article/GALE%7CI2501313853/918aa6711abf9ca5a3a1da9581f67787?u=lom_wmich
u , Retrieved: 23 Oct, 2013
22Jeffrey, Bezos. Amazon.com, Inc., “2001 Shareholder Letter.” Last modified 2001. Accessed October 23, 2013. http://media.corporate-
ir.net/media_files/irol/97/97664/reports/shareholderletter01
23 Heisler,Gregory. Time Magazine, “Jeff Bezos – Person of the year.” Last modified 12 27, 1999. Accessed October 23, 2013.
http://content.time.com/time/covers/0,16641,19991227,00.html
24 Ibid.
25 Jeffrey, Bezos. Amazon.com, Inc., “2000 Shareholder Letter.” Last modified 2000. Accessed October 23, 2013. http://media.corporate-
ir.net/media_files/irol/97/97664/reports/00ar_letter
26 Jeffrey, Bezos. Amazon.com, Inc., “2000 Shareholder Letter.” Last modified 2000. Accessed October 23, 2013. http://media.corporate-
ir.net/media_files/irol/97/97664/reports/00ar_letter
27 Ibid.
28 Ibid.
29 Ibid.
30 Laurie, Flynn. The New York Times, “In a Well-Worked Pattern, Amazon’s Revenue Rises and Its Profit Drops.” Last modified 2 2, 2007.
Accessed October 23, 2013.
&_r=0
31 “Amazon.com Inc.” Notable Corporate Chronologies. Detroit: Gale, 2013. Business Insights: Global, Available at:
http://bi.galegroup.com.libproxy.library.wmich.edu/global/article/GALE%7CI2501150074/2ba9062d44d19c5764e9282fc4cd0d55?u=lom_wmic
hu , Retrieved: 23 Oct, 2013
32 Ibid
33 “Amazon.com, Inc.” International Directory of Company Histories. Ed. Tina Grant. Vol. 113. Detroit: St. James Press, 2010. Business Insights:
Global, Available at:
http://bi.galegroup.com.libproxy.library.wmich.edu/global/article/GALE%7CI2501313853/918aa6711abf9ca5a3a1da9581f67787?u=lom_wmich
u , Retrieved: 23 Oct, 2013
34 Ibid
35 “Amazon.com Inc.” Notable Corporate Chronologies. Detroit: Gale, 2013. Business Insights: Global, Available at:
http://bi.galegroup.com.libproxy.library.wmich.edu/global/article/GALE%7CI2501150074/2ba9062d44d19c5764e9282fc4cd0d55?u=lom_wmic
hu , Retrieved: 23 Oct, 2013
36Ibid.
37Ibid.
38Ibid.
39 Brad, Stone. Bloomberg BusinessWeek, “The Secrets of Bezos: How Amazon Became the Everything Store.” Last modified 10 10, 2013.
Accessed October 23, 2013. http://www.businessweek.com/articles/2013-10-10/jeff-bezos-and-the-age-of-amazon-excerpt-from-the-everything-
store-by-brad-stone.
40 Ibid.
41 Amazon.com, Inc., “Careers Homepage.” Accessed October 23, 2013. http://www.amazon.com/Careers-
Homepage/b?ie=UTF8&node=239364011.
42 Ibid.
43 Mastering Strategic Management. Washington, D.C.: Flat World Knowledge, 2011.
44 Amazon.com, Inc., “2012 Annual Report.” Last modified 2012. Retrieved: 20 Nov 2013.
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTc5ODc3fENoaWxkSUQ9LTF8VHlwZT0z&t=1
45 Ibid.
46 Ibid, 2.
ITERA
2014,
The
12th
Annual
Conference
on
Telecommunications
and
Information
Technology,
4
April
-‐6
April
2014,
Louisville,
Kentucky.
14
47 Ibid, 2.
48 Amazon.com, Inc., “Careers Homepage.” Accessed October 23, 2013. http://www.amazon.com/Careers-
Homepage/b?ie=UTF8&node=239364011.
49 “About AWS.” About AWS. http://aws.amazon.com/about-aws/ (accessed November 20, 2013).
50 Ibid
51 Darrow, Barb. “Amazon is No. 1. Who’s next in cloud computing? — Tech News and Analysis.” Gigaom.
http://gigaom.com/2012/03/14/amazon-is-no-1-whos-next-in-cloud-computing/ (accessed November 20, 2013).
52 ” “Amazon Unbox on TiVo” Now Available, Offering Over 1.5 Million Broadband-Ready TiVo Subscribers Access to Thousands of Movies
and TV Shows.” Amazon.com, Inc. Press Release. http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-
newsArticle&ID=903244&highlight=(accessed November 20, 2013).
53 Ibid
54 “Amazon MP3 Adds Music Audio Downloads from Warner Music Group.” Amazon.com, Inc. Press Release. http://phx.corporate-
ir.net/phoenix.zhtml?c=176060&p=irol-newsArticle&ID=1089999&highlight= (accessed November 24, 2013).
55 Ibid
56 Ibid
57 “Kindle.” – Best-Selling Ereader. http://www.amazon.com/gp/product/B007HCCNJU/ref=topnav_storetab_kstore#kindle-compare (accessed
November 20, 2013).
58 Amazon.com, Inc., “2012 Annual Report.” Last modified 2012. Retrieved: 20 Nov 2013.
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTc5ODc3fENoaWxkSUQ9LTF8VHlwZT0z&t=1
59 Ibid, 18.
60 ibid, 17.
61 Ibid, 22.
62 Ibid, 1.
63 NASDAQ STOCK EXCHANGE GLOBAL SELECT MARKET 1 (2013): 1.
http://www.reuters.com/finance/stocks/analystResearch?symbol=AMZN.OQ (accessed November 20, 2013).
64 Amazon.com, Inc., “2012 Annual Report.” Last modified 2012. Retrieved: 20 Nov 2013.
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTc5ODc3fENoaWxkSUQ9LTF8VHlwZT0z&t=1
65 Amazon.com, Inc.. “FAQs Investor Relations.” FAQs. http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-faq#6991 (accessed
November 20, 2013).
66 BENSINGER, GREG. “Amazon Grows, and Spends.” The Wall Street Journal – Business.
http://online.wsj.com/news/articles/SB10001424127887323335404578445154078172038 (accessed November 20, 2013).
67 “Amazon.com, Inc.: NASDAQ:AMZN quotes & news – Google Finance.” Amazon.com, Inc.: NASDAQ:AMZN quotes & news – Google
Finance. https://www.google.com/finance?q=NASDAQ%3AAMZN&ei=mclmUuj9LISNqQH8Vw (accessed November 20, 2013).
68 Yglesias, Matthew “Amazon Profits Fall 45 Percent, Still the Most Amazing Company in the World.” The Slate Group, LLC.
http://www.slate.com/blogs/moneybox/2013/01/29/amazon_q4_profits_fall_45_percent.html (accessed December 21, 2013).
69 Amazon.com, Inc., “2012 Annual Report.” Last modified 2012. Retrieved: 20 Nov 2013. P25-26.
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTc5ODc3fENoaWxkSUQ9LTF8VHlwZT0z&t=1
70 Ibid
71 Ibid, 17.
72 Coyle, Emily. “Amazon Dreams Big About the Future of Cloud Computing.” Wall St. Cheat Sheet. http://wallstcheatsheet.com/stocks/amazon-
dreams-big-about-the-future-of-cloud-computing.html/3/ (accessed November 20, 2013).
73 Bishop, Todd. “Jeff Bezos: 7 gems from his Amazon Web Services talk.” GeekWire. http://www.geekwire.com/2012/jeff-bezos-5-gems-
amazon-web-services-talk/ (accessed November 20, 2013).
ITERA
2014,
The
12th
Annual
Conference
on
Telecommunications
and
Information
Technology,
4
April
-‐6
April
2014,
Louisville,
Kentucky.
15
74 Ibid.
75 “Day 1 Keynote.” AWS re:Invent 2013. http://reinvent.awsevents.com/index.html (accessed November 20, 2013).
76 Anders, George. “Amazon’s 1,263 Patents Reveal Retailing’s High-Tech Future.” Forbes.
http://www.forbes.com/sites/georgeanders/2013/11/14/amazons-1263-patents-reveal-retailings-high-tech-future/ (accessed November 20, 2013).
77 Ibid.
78 Amazon.com, Inc., “Q3 2013 Financial Results.” Last modified 2013. Retrieved: 20 Nov 2013. P1-3.
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTc5ODc3fENoaWxkSUQ9LTF8VHlwZT0z&t=1
79 Ibid
80 Ibid
81 Wallace, Gregory. “Amazon says drone deliveries are the future.” Cable News Network. Last modified 2013.
http://money.cnn.com/2013/12/01/technology/amazon-drone-delivery/ (accessed December 20, 2013).
82 Lunden, Ingrid. “Amazon Reportedly Buys Mobile Payments Startup Gopago, Working On An ‘Ambitious’ New Project.” AOL Inc. Last
modified 2013. http://techcrunch.com/2013/12/16/amazon-reportedly-buys-mobile-payments-startup-gopago-working-on-an-ambitious-new-
project/ (accessed December 20, 2013).
83 MERGENT Online, “Mergent Online – Business: Amazon.com Inc..” Accessed October 23, 2013.
http://www.mergentonline.com.libproxy.library.wmich.edu/companydetail.php?pagetype=business&compnumber=91098 ;Company Profile
Amazon.com, Inc..” MarketLine. (2012). 2B52E1D8-E964-4D7F-8B1B-C48DBC97815F (accessed October 23, 2013).
Running head: OPERATIONS MANAGEMENT 1
OPERATIONS MANAGEMENT 3
Operations Management
Paula Hawkins
American Public University System
Management 600- Organizational Management
January 6, 2020
Operations Management
In a business model, there exist observable patterns, designs as well as the business strategies that are essential for the operations of the given firm. As an example, in the PepsiCo business model, there are certain observable patterns, designs and even business strategies in the model. Among the observable patterns is engaging in increased research and development. The business model engages in various activities of researching and investing in global innovation to meet the changing and increasing demands and preferences of their consumers. The innovation also enables the firm to overcome its key challenges like global competition. The other observable pattern in the model is the aspect of seasonality. Since the model is affected by seasonal changes such as changes in the prices, the firm engages in setting the appropriate prices so that the financial results are not affected during the low season. The sales made during the high season cater to the low prices when the season is low.
Concerning the designs in this business model, there is an aspect of owning various trademarks that are important for operating globally (Gudiksen, 2015). The brands, as well as intellectual rights of the property, have been guaranteed by the firm and this is a key thing in ensuring that the stakeholders of the firm feel that they are secure and protected. The possession of various operations that have been organised into several reportable segments is the other design that is common in this business model. The operations have been divided into segments and are well-planned so that the overall goal of the organisation might be attained. Additionally, the business strategy is the other essential aspect as far as this model is concerned. Either working independently or acting in conjunction with the third parties, the business engages in making, marketing, selling and distributing various types of snacks and food brands. The above strategy is important for enabling the firm to overcome resistance when venturing into new business areas and getting the much-needed base that is essential for the business operations. The other strategy embraced by this model is the aspect of incorporation where the business has been incorporated in various parts of the world. The model also has subsidiaries in greater than two hundred territories and states.
As far as this business model is concerned, the issue of business metaphors is important to examine. As framed by Morgan, (2011), the business metaphors have been incorporated into the business models and are essential for enabling an organisation to be operational and highly effective. In relation to this model, the appropriate metaphor that is applicable is that of business as an item or tool for domination. In this case and the concerned model, the managers and the staff of the firm, as well as the entire workforce of the organization, are needed to fully devote themselves to work for the firm so that it may dominate the world of competition.
As a result, the employees might think that their work is insecure and face incidences of stress and anxiety, and in this manner, an incidence of a metaphor occurs. As developed by Bolman & Deal (2003), framing is also important in this model. The two individuals asserted that since no frame that works effectively in each situation, a leader that sticks to a single frame is eventually bound to act ineffectively and improperly. Therefore, in this model, the leaders of the organisations are obliged to utilise an appropriate framework as a tool of reference and behave appropriately for different challenges that an organisation might be experiencing. The leaders should not utilize a single framework at all the times or in all the situations that the organisation might be experiencing. Instead, various frameworks have to be applied to the management of the organisation.
References
Bolman and Deal. (2003). Reframing organisations.
Gudiksen, S. (2015). Business Model Design Games: Rules and procedures to challenge assumptions and elicit surprises. Creativity & Innovation Management, 24(2), 307-322.
Morgan, G. (2011). Reflections on images of the organization and its implications for organisation and environment: Organization and Environment.
GRADUATE WRITING RUBRICS
GRADING SUMMARY/TOTALS (see rubric explanation in chart)
Management Program
Rubric for Graduate Writing
Writing Style and Grammar -‐ Total Possible Points this section _20_
Above Standard = 8
Requires No Improvement
Standard = 7 pts
Requires Improvement
Approaching Standard
= 6 pts
Requires
Revision
Failing = 5 or less
Requires Significant
Revision
Tone, Voice
& Style
Convincing
academic
and
scholarly
voice;
sophisticated
and
varied
sentence
structure;
vocabulary
and
tone
that
engages
reader
and
conveys
high
mastery
of
subject;
specific
and
appropriate
audience
is
addressed;
language
is
gender
and
culturally
sensitive.
Strong
academic
and
scholarly
voice
that
might
be
more
consistent;
sentence
structure
and
vocabulary
may
need
variation;
language
is
gender
and
culturally
sensitive;
the
level
of
sophistication
in
this
category
is
less
than
above
standard.
Attempts
made
to
sound
academic,
but
diction
is
occasionally
inappropriate
interfering
with
meaning;
sentence
structure
conveys
meaning,
is
average
in
complexity;
language
might
be
more
gender
and
culturally
sensitive.
Author’s
voice
is
rarely
or
never
academic
or
scholarly,
but
instead
is
conversational
or
otherwise
inappropriate;
vocabulary
and
tone
may
be
inappropriate;
sentence
structure
is
elementary;
frivolous
word
usage
may
be
employed;
language
is
rarely
or
never
gender
and
culturally
sensitive.
GRADUATE WRITING RUBRIC Possible
Score(s)
Value(s)
Writing Style and Grammar 20 20
Tone,
Voice
&
Style
[8
pts]
8
Spelling,
Sentence
Structure
&
Mechanics
[7
pts]
7
Organization
/
Paragraph
Construction
[5
pts]
5
Manuscript and APA Formatting 20
20
Manuscript
Preparation
[5
pts]
5
Manuscript
Organization
[5
pts]
5
Presentation
of
Quotations [5
pts]
5
Presentation
of
Data [5
pts]
5
References, Citations, and Supporting Documentation 20
20
Supporting
Documentation
(for
logic/argument) [8
pts]
8
Sources
(scholarliness,
citation-‐reference
match) [7
pts]
7
Quotations,
Summary
&
Paraphrase
(proper
use) [5
pts]
5
Critical Thinking, Logic, and Reasoning 40 40
Thesis
Statement
&
Research
Question(s)
[8
pts]
8
Argument
(academic,
original,
developed)
[8
pts]
8
Evidence
&
Support
(of
core
concepts)
[8
pts]
8
Analysis
&
Synthesis
of
Data,
Case,
or
Argument
[8
pts]
8
Conclusions,
Recommendations
&
Implications
[8
pts]
8
TOTAL SCORE/GRADE (percentage) 100 100
Above Standard = 7
Requires No Improvement
Standard = 6 pts
Requires Improvement
Approaching Standard
= 5 pts
Requires Revision
Failing = 4 or less
Requires Significant
Revision
Spelling,
Sentence
Structure &
Mechanics
Strong
command
of
spelling
and
grammar,
including
verb
tense,
subject-‐verb
agreement
and
punctuation;
complex
sentence
structure
with
no
mechanical
errors
to
interfere
with
meaning.
Strong
command
of
spelling
and
grammar,
including
verb
tense,
subject-‐verb
agreement
and
punctuation;
sentence
structures
with
few
mechanical
errors.
Spelling
and
grammatical
errors
including
verb
tense,
subject-‐verb
agreement,
incomplete
sentences
and
punctuation
problems
that
interfere
with
meaning.
Rarely
or
never
makes
proper
use
of
spelling
and
grammar,
including
verb
tense,
subject-‐verb
agreement,
complete
sentences
and
punctuation
which
greatly
interfere
with
meaning.
Above Standard = 5
Requires No Improvement
Standard = 4 pts
Requires Improvement
Approaching Standard
= 3 pts
Requires Revision
Failing = 2 or less
Requires Significant
Revision
Organization
Paragraphs
are
economical,
clear
and
concise
with
transitions,
which
flow
seamlessly
from
one
idea
to
another
and
encourage
reader
to
continue
reading.
Paragraphs
are
clear
and
concise;
transitions
flow
from
one
idea
to
another,
but
might
be
improved.
Lacks
clarity
and
focus
in
paragraph
construction;
transitions
are
awkward.
Little
or
no
clarity
or
focus
in
paragraph
construction;
transitions
are
difficult
or
non-‐
existent;
overall
presentation
is
disorderly
and
confusing.
WSG Points:
Comments or Notes:
Manuscript and APA Formatting -‐ Total possible points This Section _20_
Above Standard = 5
Requires No Improvement
Standard = 4.25 pts
Requires Improvement
Approaching Standard
= 3.5 pts
Requires Revision
Failing = 3 or less pts
Requires Significant
Revision
Manuscript
Preparation
The
work
represents
proper
manuscript
preparation
and
presentation
in
current
editorial
style
as
determined
by
the
instructor
(APA
6th
Ed.
or
SPS
Publishing
Style),
including,
but
not
limited
to
the
use
of
margins,
font,
indents,
paragraph
format,
line
spaces,
punctuation,
and
representation
of
numbers
The
work
often
represents
proper
manuscript
preparation
and
presentation
in
current
editorial
style
as
determined
by
the
instructor
(APA
6th
Ed.
or
SPS
Publishing
Style),
including,
but
not
limited
to
the
use
of
margins,
font,
indents,
paragraph
format,
line
spaces,
punctuation,
and
representation
of
numbers
The
work
sometimes
represents
proper
manuscript
preparation
and
presentation
in
current
editorial
style
as
determined
by
the
instructor
(APA
6th
Ed.
or
SPS
Publishing
Style),
including,
but
not
limited
to
the
use
of
margins,
font,
indents,
paragraph
format,
line
spaces,
punctuation,
and
representation
of
numbers
The
work
rarely
or
never
represents
proper
manuscript
preparation
and
presentation
in
current
editorial
style
as
determined
by
the
instructor
(APA
6th
Ed.
or
SPS
Publishing
Style),
including,
but
not
limited
to
the
use
of
margins,
font,
indents,
paragraph
format,
line
spaces,
punctuation,
and
representation
of
numbers
Manuscript
Organization
The
author
organizes
and
labels
chapters,
sections,
and
subsections
using
the
APA
recommended
heading
styles
(chapters,
sections,
and
subsections,
and
so
on)
are
included
or
represented
as
defined
by
the
assignment
or
The
author
often
organizes
and
labels
chapters,
sections,
and
subsections
using
the
APA
recommended
heading
styles
(chapters,
sections,
and
subsections,
and
so
on)
are
included
or
represented
as
defined
The
author
sometimes
organizes
and
labels
chapters,
sections,
and
subsections
using
the
APA
recommended
heading
styles
(chapters,
sections,
and
subsections,
and
so
on)
are
included
or
represented
as
defined
The
author
rarely
or
never
organizes
and
labels
chapters,
sections,
and
subsections
using
the
APA
recommended
heading
styles
(chapters,
sections,
and
subsections,
and
required
by
the
instructor
by
the
assignment
or
required
by
the
instructor
by
the
assignment
or
required
by
the
instructor
so
on)
are
included
or
represented
as
defined
by
the
assignment
or
required
by
the
instructor
Presentation
of Quotations
Line
and
block
quotations
are
properly
formatted
and
cited
correctly
Line
and
block
quotations
are
often
properly
formatted
and
cited
correctly
Line
and
block
quotations
sometimes
are
properly
formatted
and
cited
correctly
Line
and
block
quotations
are
not
or
are
rarely
properly
formatted
and
cited
correctly
Presentation
of Data
Tables,
charts,
graphs,
and
figures
are
relevant,
labeled
and
formatted
correctly,
and
represent
the
data
accurately
Tables,
charts,
graphs,
and
figures
are
often
relevant,
labeled
and
formatted
correctly,
and
represent
the
data
accurately
Tables,
charts,
graphs,
and
figures
are
sometimes
relevant,
labeled
and
formatted
correctly,
and
represent
the
data
accurately
Tables,
charts,
graphs,
and
figures
are
not
or
are
rarely
relevant,
labeled
and
formatted
correctly,
and
represent
the
data
accurately
APA Points:
Comments or Notes:
References, Citations, and Supporting Documentation -‐ Total possible points _20_
Above Standard = 8
Requires No Improvement
Standard = 7 pts
Requires Improvement
Approaching Standard
= 6 pts
Requires Revision
Failing = 5 or less
Requires Significant
Revision
Supporting
Documentatio
n
The
document
shows
significant
support
for
the
logic
or
argument
with
a
variety
of
peer
reviewed
scholarly
work
with
limited
use
of
non
scholarly
work
and
is
inclusive
of
a
broad
and
deep
range
of
scholars,
including
critique
and
opposition
The
document
often
shows
support
for
the
logic
or
argument
with
a
variety
of
peer
reviewed
scholarly
work
with
some
use
of
non
scholarly
work
and
is
somewhat
dependent
on
a
limited
range
of
scholars,
including
critique
and
opposition
The
document
sometimes
shows
support
for
the
logic
or
argument
with
a
variety
of
peer
reviewed
scholarly
work
with
some
use
of
non
scholarly
work
and
is
often
dependent
on
a
limited
range
of
scholars,
including
critique
and
opposition
The
document
rarely
or
never
shows
support
for
of
logic
or
argument
with
a
variety
of
peer
reviewed
scholarly
work,
and
or
is
reliant
on
non
scholarly
work,
or
a
limited
range
of
scholars,
including
critique
and
opposition
Above Standard = 7
Requires No Improvement
Standard = 6 pts
Requires Improvement
Approaching Standard
= 5 pts
Requires Revision
Failing = 4 or less
Requires Significant
Revision
Sources
Sources
are
scholarly,
accurate,
and
relevant
All
citations
are
listed
in
the
reference
section
and
all
references
are
cited
The
reference
section
is
accurate
Sources
are
often
scholarly,
accurate,
and
relevant
All
citations
are
listed
in
the
reference
section
and
all
references
are
cited
The
references
section
is
often
accurate
Sources
are
sometimes
scholarly,
accurate,
and
relevant
to
use
in
the
paper
Most
citations
are
listed
in
the
reference
section
and
most
references
are
cited
the
reference
section
is
sometimes
inaccurate
Sources,
when
used,
are
rarely
or
never
scholarly,
accurate,
and
relevant
Few
citations
are
referenced,
several
references
are
not
cited
The
reference
section
is
inaccurate
Above Standard = 5
Requires No Improvement
Standard = 4 pts
Requires Improvement
Approaching Standard
= 3 pts
Requires Revision
Failing = 2 or less
Requires Significant
Revision
Quotation,
Summary &
Paraphrase
Proper
use
and
relevance
of
quotation,
summarization,
and
paraphrasing
throughout
Proper
use
of
quotation,
summarization,
and
paraphrasing
is
often
used
throughout
Proper
use
of
quotation,
summarization,
and
paraphrasing
is
generally
used
throughout
Proper
use
of
quotation,
summarization,
and
paraphrasing
is
rarely
or
never
used
throughout
RCSD Points:
Comments or Notes:
Critical Thinking, Logic, and Reasoning -‐ Total Possible Points This Section _40_
Above Standard = 8
Requires No Improvement
Standard = 6.75 pts
Requires Improvement
Approaching Standard
= 6 pts
Requires Revision
Failing = 5.5 or less
Requires Significant
Revision
Thesis
Statement &
Research
Question(s)
Thesis
statement
or
research
question(s)
is
unbiased,
focused
and
clearly
stated
without
overstatement
or
hyperbole.
Thesis
statement
or
research
question(s)
is
unbiased
and
clearly
stated,
but
more
precision
is
needed.
Thesis
statement
or
research
question(s)
is
understood
or
implied,
but
lacks
clarity
and
focus
and
requires
improvement.
Thesis
statement
or
research
question(s)
are
not
clearly
stated.
Argument
Academic
argument
is
original
and
dynamic,
sound
and
well
developed.
Academic
argument
is
sound
and
developed,
however
is
less
innovative
and
dynamic.
The
implied
academic
argument
is
sound,
but
requires
development.
Academic
argument
is
not
developed
and
requires
significant
revision.
Evidence &
Support
Information
presented
is
relevant
and
accurate;
Core
concepts
are
expressed,
explained,
and
used
correctly;
author
uses
appropriate
sources
to
support
and
defend
veracity
of
argument.
Information
presented
is
accurate
and
most
often
relevant;
core
concepts
are
expressed,
explained,
and
used
correctly.
Information
presented
is
generally
relevant
and
accurate;
core
concepts
are
generally
expressed,
explained
and
used
correctly,
however
more
evidence
is
needed.
Information
presented
is
rarely
or
never
relevant
and
is
inaccurate;
core
concepts
are
rarely
or
never
expressed,
explained
and
used
correctly;
author
often
relies
on
statement
of
sources
to
defend
position.
Analysis &
Synthesis of
Data, Case, or
Argument
Author
is
sensitive
to,
explains,
and
responds
to
other
points
of
view,
limitations
and
assumptions
inherent
in
the
argument
or
logic
thoroughly
and
in-‐depth;
author
conveys
broader
significance
to
community.
Author
is
sensitive
to,
explains
and
responds
to
other
points
of
view,
limitations
and
assumptions
inherent
in
the
argument
or
logic.
Author
attempts
to
explain
and
respond
to
other
points
of
view,
limitations
and
assumptions
inherent
in
the
argument
or
logic,
but
does
so
inadequately.
Author
rarely
or
never
explains
and
responds
to
other
points
of
view,
limitations
and
assumptions
inherent
in
the
argument
or
logic,
or
may
do
so
inadequately;
author
may
rely
on
generalizations
to
do
the
work
of
solid
analysis.
Conclusions,
Recommendat
ions, &
Implications
Author
is
sensitive
to
the
implications
or
positions
taken;
conclusions
and
recommendations
are
explained
by
the
author’s
line
of
reasoning
which
has
addressed
all
thesis
statements
or
research
question(s)
proposed;
author
conveys
broader
relevance
to
community.
Author’s
conclusions
and
recommendations
are
often
explained
by
the
author’s
line
of
reasoning
and
often
responds
to
the
thesis
statement
and
to
all
research
question(s)
proposed.
Author’s
conclusions
and
recommendations
are
sometimes
explained
Author’s
line
of
reasoning
fails
to
respond
to
thesis
statement
or
all
research
question(s)
proposed
fully.
Author’s
conclusions
and
recommendations
are
explained
inadequately
Author’s
line
of
reasoning
fails
to
respond
to
thesis
statement
or
research
question(s)
proposed
fully.
CTLR Points:
Comments or Notes:
Total Points Earned:
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