Chapter 12 blog post-Amazon and organizational structure
This week in Chapter 12 we will discuss Amazon’s organizational structure. The book talks about the M-form or multidivisional structure that will help in implementing a corporate diversification strategy. Where top management can set clear goals for the
company’s divisions that they will so suffer little to no less control loss. The
multidivisional structure is as follows:
Board of Directors
Senior Executive
Finance Legal Accounting Research and Development Sales Human Resources
Division General Manager A Division General Manager B Division General Manager C
Division A Division B Division C
Senior Executive
Corporate staff: Finance Legal Accounting Human Resources
Division General Manager A Division General Manager B Division General Manager C
Division A Division B Division C
Shared Activity: Research and Development Shared Activity: Sales
There is also a U form organizational structure whereby the firm is managed centrally as a
Amazon.com uses a functional organizational structure.
Business Development
Amazon Web Services (AWS)
Finance
Legal and Secretariat
North America
International
Amazon's corporate structure is a critical factor in the company's ability to withstand
the effects of is competitors. Amazon.com organizational structure must be adequate enough to support its expanding market place. Their corporate structure also benefits Amazon as the company adds new products and complements the technological foundation of the business, which in turn gradually diversifies its brand into different sectors.
There is also a U form organizational structure whereby the firm is managed centrally as a
single unit specialized along functional lines of marketing, production, finance, and personnel.
However, in Amazon’s case, the organizational structure is entirely different. Amazon.com uses a functional organizational structure.
Amazon’s Global function-based group organizational structure allows each primary business function to have a dedicated group/team, with senior management. The strategic objective is to have a structural characteristic that will empower Amazon to facilitate effective operations management throughout the entire business.
Office of the CEO Business Development
Amazon Web Services (AWS)
Finance
International Consumer Business
Accounting
Consumer BusinessLegal and Secretariat
Global hierarchy is a traditional organizational structure. In the case of Amazon.com, this organizational structure is best in terms of a global system of vertical chain of command and authority that influences the e-commerce market place.
Amazon’s Geographic division's organizational structure separates each group in geographic regions and related business goals. North America
International
Amazon's corporate structure is a critical factor in the company's ability to withstand
the effects of is competitors. Amazon.com organizational structure must be adequate enough to support its expanding market place. Their corporate structure also benefits Amazon as the company adds new products and complements the technological foundation of the business, which in turn gradually diversifies its brand into different sectors.
1.Barney, J (2011). Gaining and Sustaining Competitive Advantage (4th ed). Upper Saddle River,
NJ: Pearson.
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