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Innovation Venture for Amazon

Code: D/508/0488


You are the Human Resource Manager for your chosen organisation and have been asked by the CEO to investigate the impact of leaders and managers on the operations within your ever-growing company.
You have been asked to produce a report for the senior leadership team which must include the following: An introduction to the chosen organisation and the management structure. It should also include definitions and roles of both managers and leaders, highlighting the differences between management and leadership. Furthermore the various roles of management and leadership in application to different organisational situations, supported by theories and concepts should also be included within the report. In addition there must be a discussion of how theories such as ‘chaos theory’ and ‘management by objectives’ apply to the organisation and how these have supported growth and sustainable performance. There must also be conclusions drawn on how managers and leaders have made an impact on your chosen organisation and recommendations for future improvements.

1) LO1-Differentiate between the role of a leader and the function of a manager.

1.1) P1 Define and compare the different roles and characteristics of a leader and a manager.

1.2) M1 Analyse and differentiate between the role of a leader and function of a manager by effectively applying a range of theories and concepts.

1.3) D1 Critically analyse and evaluate the different theories and approaches to leadership in given contexts.

2) LO2-Apply the role of a leader and the function of a manager in given contexts.

2.1) P2 Examine examples of how the role of a leader and the function of a manager apply in different situational contexts.

2.2) P3 Apply different theories and models of approach, including situational leadership, systems leadership and contingency.

2.3) M2 Assess and evaluate the strengths and weaknesses of different approaches to situations within the work environment.

2.4) D1 Critically analyse and evaluate the different theories and approaches to leadership in given contexts.


Executive Summary

In the Innovation journey of Amazon is highlighted along with a proposed business solution to increase the volume of sales of in order to generate profitability in the firm in a cumulative sense. It also encases a brief approach of e-commerce and cloud business to pacify the business process in a relevant manner and gain a stiff competitive advantage in the global retail market. It also focuses on the vision of Jeff Bezos to redefine the business process of the organization in a stimulated way.

Assignment 2: 

Introduction:- is a wholesale retailer, which was founded by Jeff Bezos in the year 1995. It is mainly centered at making a realistic shopping place for the book lovers and has achieved to reach a wide variety of customers worldwide. Amazon sustains the whole market by providing quality product in retails, grocery and other local needs as per required by the customers.  In this context, a creative strategy for innovation of a newer business model is highlighted through which the business can increase its base in overseas.’s  vision is to be the most accessible and largest bookstore in the whole world where the customer’s will have a wide range of choices for different variety of products along with proportionate costs for it. Amazon’s business model critically uses the feathers of modern technology in which the website process has enabled the business to attract huge number of customers globally. The annual selling report of Amazon dictates that it has gained nearly 3 million customers all over the world.

Innovation Journey- 

Vision of Jeff Bezos:

Bezos biggest vision that he unveiled is the integration of artificial intelligence in the state of business of his firm. He has created a simple business strategy in which the customers can choose any products through its official website and eventually buy it. This will curb out the involvement of third party vendor as such and therefore the customer’s satisfaction can be achieved at large rate. Customer satisfaction is an utmost parameter for Jeff through which he can strategize his business policies (Mezger, 2014). He always wanted to increase the number of customers for making the business successful in all fronts.

The basic reason for Jeff Bezos to adapt innovation strategy is to provide the customers a viable source that they can simply cannot make away with. The initial strategy adopted by Jeff Bezos is providing free CD/DVD’s along with books for gaining a competitive advantage over the other businesses. The next vision for Jeff Bezos is to attain a higher profitability margin and lowest productivity cost and meanwhile promoting brand image to the customer’s worldwide. Jeff wants to gain a high inventory in his business through excelling in three major stages that includes serving fewer needs of the larger number of customer, serving broader needs of smaller number of customers and serving broader needs of a large number of customers. The major segment that Amazon follows over the other competitors is customer care. After Sales service is also a major criteria that decides the stagnancy of the customer’s in a particular business (Mishra and Zachary, 2014). Jeff Bezos wants to include the trends of future technology in the business tradition along with proper brand promotion techniques for promoting the products of the company in an evident way. It also visualizes to encapture the global market in the next 25 years as a wholesale retailer. 

Fig: An example of visionary statement of Jeff Bezos

(Source: Bolman and Deal, 2015)

The marketing and brand promotion strategy catches an essential light in business development scenario along with customer acquisition. The promotion methodology of Amazon includes several processes like customer relations activity, web channel advertising, and television and mass media. Amazon has successfully incorporated features of customer Relationship Management for promoting business and revenue cycle management for increasing the customer’s base.

Customer acquisition also increases the company’s profile through a database management that procures a strong platform for international marketing for the business, which Jeff adopted for expanding his business. The innovative end of the Amazon associates followed a business to Customer model transforming the business level into a diversified scope where Amazon’s target market can be covered easily. The cloud-based platform of Amazon enabled it to boost the sales and revenue of the business in order to make a better partnership module for the business(Amazon Web Services Inc. 2017). Amazon also accepted commissions for the sale of each product to increase the revenue of the business. 

PESTLE Analysis of Aviation Innovation journey:

Political – Political factors includes the industrial trends in the global regulation for addressing conditions like passenger safety, passenger security and other important issues. The government regulation forms a major barrier in the revenue generation of aviation industry. The air transport complies of major bilateral regulation, which often hampers the growth of the industry.

 Economic- The recent recession deeply hampered the growth of the airline industry. The downturn mainly hampered the airline industry as it has lowered their market and the cost segregation for cheaper air transportation affected their journey.

Social- Airlines industry forms a major social value, as there are many other industries that align to the airline industry. The hospitality sector hugely depends on airline carriers and it creates a huge employment worldwide.

Technological- Several technological factors affect the heavy usage of transport carriers. The technology in aviation plays an important role in maintaining speed in their business process and it also generates higher profitability and revenues for the business. The larger integration of fuel efficiency along with speed forms the major category of business use.

Legal- There is several law related factors that aligns with the specific use of airline industry, which concerns with the safety and security of customers mainly. Several law related factors enhance the hospitality for the passengers.

Ecological- The major expedition in the ecological section of this industry is fuel. Due to heavy government regulations, now the airline industries spends much on fuel efficiency and manufacturing of environmental friendly carriers.

PESTLE Analysis of Amazon

Political Factors: The political factors mainly deal with the government legislation to analyze the macro economic factors of the concerned business venture. In the case of Amazon, the political factor that affects the e-commerce industry are given as follows:

  • It affects the e-commerce aspect of the business venture in a stimulated way
  • The political Stability and the government barriers for e-commerce are also adding to the political aspect of the deemed organization

Economic Factors: The retail outlets of Amazon are affected by the economic trends of the particular demography where the business operates. The macroeconomic changes affect the stability of the firm in a projected sense. The Economic Factors of are:

  • Economic Stability of the emergent markets
  • Disposable income of the country

Social Factors: The Social Conditions of the particular demography affects the business network of in a stimulated manner. The social factors are:

  • Threats due to increasing social inequality
  • Rise in consumerism in the developing countries

Technological Factors: The technological advancement in the recent times is increasingly affecting the business framework of Amazon by pacifying its business process. The technological factors are:

  • Obsolescence in technology
  • Increasing efficiency in IT

Legal Factors: The legal prospects that the business framework is facing in the recent times includes:

  • Increasing Product Regulation
  • Removing of Trade barriers
  • Loose Government Regulation

Ecological Factors: is an online retail business. Therefore, the threats to the environment are less in this schedule. However, the impact is given as follows:

  • It increases the interest in environment programs
  • Increasing Focus on Business sustainability

Blue Ocean Strategy for Amazon: 

The strategies adopted by consists of the following propaganda:

  • Expansion of deemed market space by creating a demand creation in the target market
  • Paving an opportunity for high profitability growth by optimizing the existing resource constraints of the company
  • This is set to create the market demand in such a way that the business gets an opportunity to expand
  • To manage the risks effectively

When it comes to the S-curve regarding the blue ocean strategy of Amazon, it mainly derives the fact that where the organsiation is standing in terms of innovative approach. Along with that, it also derives the fact that ewhat are the stages that the organisation can follow in order to manage the process of innovation in terms of their products and services.

Product Life Cycle-S curve: 

Figure : Technology life cycle path

(Source: Bolman and Deal, 2015)

There are predominantly four stages in the product life cycle, which are indicated as follows:

  • Research and Development phase: It happens when the income from the inputs becomes negative and the chances of failure becomes high
  • Ascent phase: When the internal costs have been recovered and the technology begins to gather some strength
  • Maturity phase: When the gain becomes high and goes towards saturation
  • Decline: Incurs after the point d

Fig: PESTLE analysis of Amazon

(Source: Gassmann et al. 2014)

Current business and ventures- 

Global Revenue: The given business has reached global customer loyalty levels through its repeatability factors that include its technical friendly terminology for achieving higher level of managerial authority all around the world. As per the annual report of 2013, the business may be able to expand into the international segment of market nominal by the end of 2020. The market segment of Amazon has been essential to thrive in the economic corporate to investigate the customer needs in an evident way. The e-commerce and website sales increased predominantly from 2005 to 2015 that aligned the revenue increase of Amazon from 108 billion dollars to 136 billion US dollars respectively. The net revenue of Amazon proportionately increased from 2008 to 2016 mainly due to the advent of technology and increasing social networking trends amongst the youth.

Regional Contribution: Amazon has been able to proportionately increase the employment and revenue margin in the local areas where its business has been established. This has created a sense of acceptability in the eyes of locals for social viability of the organization. It paves a way of regional integration to empower the business development in the corporate field of the organization.  It leads to a better understanding of the challenging factors in the particular areas to implement institutional gain in that particular area (Sedita and Grandinetti, 2014). Regional incorporation wipes out the differences between the insiders and outgoes to curb the difference of economy and financial improvement of the area. The regional contribution also leads to the creative engagement of locals in such a manner that it will develop a symbiotic relationship between the business venture and the local work force for improving the customer relationship management scene.

E-commerce: Amazon creatively uses e-commerce module for generating Business-to-Business Module and Business to consumer module. The e-commerce section enabled to generate huge profits for Amazon along with multiple retail channels for increasing the potential of the business to gather customers from overseas. The cloud based computing platform enabled the business expansion of Amazon for website-based services provided by the company in the verse of market module. The web content of business enabled online buying and selling aspects to the customers, which emerged as one of the major catalog for retail industry (Gómez-Uranga et al. 2014). The transactions have also been made easier due to the e-commerce module as it gives the prospective buyers to protect their account information in a reliable manner. The product information and customer’s review are also portrayed in predetermined way to relevantly startup the business features and increase the transparency of purchasing and selling method in order to gain a relative competitive advantage amongst the rivals.

Cloud Business: The cloud business section of Amazon has helped it to grow its revenue in a predominant manner for several business applications in all fronts. The different business application in this context uses Microsoft, SAP and Oracle, which make the business available to the customers on a 24*7 basis. The use of cloud-based platform emerged tom make a critical edge in the competitive market of the world. This helps to increase the business revenue of Amazon for its business development and web applications end to gain a global sustained infrastructure from the organization end. This will also help in coping the disaster and pacify the critical depth of application fronts for the business in a cumulative way.

Joint Ventures with VMware on IT: Amazon rounded up with VMware to develop the data software and web services in a cumulative front to develop data processing software tools for multiple sources. The software is related to stacking of products to which VMware has already contributed in order to make the base platform for it. Amazon has played an important role in strengthening and further increasing the hyperactive structure provided by VMware. It has enabled Amazon to immense into the features of open stack along with accessing the organization private database (Todri and Adamopoulos, 2014). The new software venture has creatively increased the edge of Information Technology by providing innovative software’s to the users. This is yet another strategy adopted by Amazon to increase its business in a significant way. The treaty was signed on a 20% partnership basis and a separate unit of amazon known as AWS (Amazon Web Services) did the partnership. It will lead to a significant and profound development of mixed cloud mobility which is the largest step taken in the cloud computing business.

Joint venture with Alibaba in China: It is a creative step taken by Amazon to boost the volume of sales and revenue in China. The company has opened a new sector in Alibaba for getting a competitive advantage in the global market. Amazon has opened a brand new store in Alibaba and also opened a site called for promoting the products of the venture in a consumer friendly way. The negotiation between two-business venture led to a strategic exposure of nearly 335 million buyers all amongst the market for internationalizing the creative brands of the wholesale market in an evident way (Bohnsack et al. 2014). The main interest of Amazon in investing in food product industry of China is to gain a huge customer base and to meet the rising appetite of China. In addition, the free trade zone in China will help to cut all the trade barriers for the business venture and boost a provision for tax relief to the business.

The Future of Amazon: 

Integration of feathers of Newer Technology: The Company Amazon is adaptive to the wings of modern technology means that aids technological friendly means in the promotion of products and planning the utilization of resource constraints through an empirical approach for better convenience in business expansion. The customer acquisition front is adopted by means of brand promotion through a wide range of audiovisual means that enabled to catch the eyes of the public from all aspects of the world (Belk, 2014). In the long run, it may give a creative competitive edge to the business in excelling in the promotion method to acquire the existing leads by other rivals that includes Flipkart, eBay and Snap deal. The  innovation in product segmentation is a brand new step that the company can adopt through the use of mass media selection which will help them to increase their volume of sales.

Product Innovation: The past trends of Amazon dictate the creative market strategies adopted by it for posing various challenging aspects to the competitors for better performance in the areas of sales and revenue. However, there are many lacunas in the business strategies of Amazon that has to be overcome in the coming years to gain a clear majority in the market for financial viability of the organization (Feldman and Graddy-Reed, 2014). The product innovation is a good step for the industrial automation aspects of Amazon. The customer's stagnation can be attained up to a certain point if old product segregation methodology is followed whereas the customer stagnation point can be increased one notch higher if there is a wide variety of product available in the venture. Therefore, Amazon has to develop newer products and cost efficient modules for maintaining the viability of the firm in all aspects in the society and to be in the edge for the next 25 years.

Market Extension: The global market of Amazon can be expanded through customer retention largely. The customers are the viable asset of a business. In this scenario, Amazon has been able to gain a huge importance in the global market over the past few years. On the other hand, to gain a competitive advantage and a viability factor for the business in the long run, it is important for the business to hold the customer base intact and enable proper communication between the customer and the dealer to wipe out the differences in transaction process (Burns, 2014). This will lead to enhanced productivity and retention of customer base in an evident manner. The market extension needs to be specific in managing the customer database in such a manner that the private data are kept intact and eventually lead to customer acquisition aspect of the business. A better relationship with the customer through customer relationship management will lead to the expansion of its business to overseas. It will cause an aspect of financial viability for the organization.

Product Segregation: Product segregation is an important part for the viability of the business organization. Product differentiation gives an essential viability factor for gaining a competitive edge for the business. The customer needs are highlighted in a schematic way to fulfill the product review and gain customer base all over the world. The product variety gives a huge option to the customers’ in maintaining a traditional brand image amongst the customers for maintaining customer relationship in an evident way (Gassmann et al. 2014). The promotion strategy takes a wide range of techniques, which differentiates one product from another product based on its quality. The target market is increasingly changing in the recent years and therefore it becomes very essential to retain the customer’s base through intensive advertisement and customer oriented programs in diverse aspects of society. By differentiating the quality and types of product, the business will eventually gain a competitive advantage over the market segment and thus increase the revenue cycle of the company in a profound way.

Customer Extension: The market place has become quite competitive for Amazon and thus the company has to segregate the competitor strategies in such a manner that it improves the business development scenario for the company (Brooks et al. 2014). It plays an important part in maintaining the sustainability of the business firm in fiscal market and helps in maintaining its business viability in the long run. The customer loyalty and global efforts can cause a wide competition in the global market through which the business can increase its feathers in the global market.


It is evident from the above assignment that the customer extension scenario has been able to improve the business module in a relevant manner to reach all dimensions of society. There has been an immense improvement in the society through the advent of technology and trends of social networking, giving a wide berth for the businesses like Amazon to attract a huge volume of customers. On the other hand, due to craze for e- commerce amongst the youth Amazon has been able to reach a global connectivity with users from all round the world. Moreover, the business alignment with several other parties gives a profound platform for Amazon to expand its business in other fields in order to increase the revenue and network of the business. The comparative business approach has led Amazon to overcome the throat cut competition from the rivals. The competitive advantage revolves around customer satisfaction and customer retention that will provide the business a viable network to thrive in the long run.

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