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Business Proposal: Amazon.com - Essay Example

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Name Date Proposal: Instituting Flexibility in System of Administration and Function As discussed in the evaluation, the standing of web-based businesses is quite unpredictable. While the internet is essentially only an interface of communication with the customer for Amazon.com, the company still heavily relies on online functionality to run its business…
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Out-of-the-box thinking is perhaps what separates online market leadership from less dominant success. However, to be able to execute extraordinary plans and implement alternate strategies quickly a corporation needs to be well organized, logistically agile and up to date with the latest business models and market trends. An old axiom suggests that there is opportunity in crisis; evidently, the opposite is true for web-based companies in that the potential of disaster is very great. Hence not only is there a lot of capacity for growth for online ventures, there is also inevitable confrontation with unforeseeable problems.

And if Amazon.com aims for sustainability in the market place, which will no doubt be a great feat for an online retailer, it needs to infuse a doctrine of adaptability into its working culture. Since this paper is to be presented at the quarterly caucus of the company's executive branch, it does not address any specific office-bearer at the organization. Instead it intends to make use of the fact that directors of all departments shall be attending the meeting; hence it is intended to be conceived as a memorandum of recommendations for the board of directors.

Employment, Organization and Structuring Integration of activities on the operational and technological front is essential for Amazon. Successful electronic enterprises cite the budding concept of synergy as the key to making progress in the fast-changing modern world (Gascoyne et al., 114). Area specifications for Amazon’s business should be reduced and it should move towards a line of products that have a constant utility value around the world, like how-to and instructional videos; hence integration of services and curtailing funds from market specialization plans is the way forward. Amazon.com is very much at an advantage compared to conventional retail storage because of its stocking features: It does not have to invest considerably in inventory, real estate or qualified personnel to deal with the customer. Table 1. Incentive for Virtual Stocking (2005 Figures) Additionally, Amazon.

com can provide a customer with a product of customized specifications without extra charge for customization. Still, Amazon does keep an inventory, and the return policy whereby a customer can return a product within thirty days is often a cause of major losses. The Acquirement department should employ a policy of prioritizing of services over retail products. For example handcrafting professionals should be employed instead of trading handcrafted goods. In 2005 Amazon had 2000 books in its warehouse and this number has since increased significantly as has the number of warehouses.

This is a model that the organization has to move away from and eventually sell out all of its material equity in order to reduce the pressures of managing, marketing, maintaining and prioritizing private inventory and shift its focus towards provision of services. Amazon.com outsources much its customer assistance service. This practice is recommended as it provides for very cost-effective employment. However, as evident from the recent labour departure from China, trends of labour utility in the developing countries keep changing and to keep a check on balances of payment in the outsourcing strategy either the HR department should be revamped with physical

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