Hierarchical is the best way to describe Amazon’s organizational structure. Three CEOs and three senior vice presidents report directly to Amazon CEO Jeff Bezos and are responsible for several critical elements of the business. Amazon has an evident and efficient organizational structure. There are several exciting features of the organization, expressed in three fundamental aspects of Amazon’s organizational structure. The essential elements are a hierarchical organizational structure, company flexibility, and top management stability.
It’s worth noting that, despite its size, Amazon, unlike many other organizations with hierarchical organizational structures, is highly flexible in adapting to rapid changes in the external marketplace. Furthermore, the online retail behemoth that drives changes in the external business environment has sparked disruptive innovation in e-commerce and is about to do so in the global logistics sector (Meyer, 2019). This aspect is due primarily to Amazon’s founder and CEO’s imaginative and efficient leadership. Stability in the upper management ranks is also vital. One of Amazon’s most important characteristics is its stability. The largest online corporation by revenue has little turnover among its most essential power players, with many of them having been at the company for years, if not decades.
The organizational structure of Amazon.com Inc. allows for broad control over worldwide e-commerce activities. An organizational or corporate structure establishes the design and system of interactions among business members (Meyer, 2019). The organizational structure of Amazon, for example, dictates how managers control and influence operational activity across multiple business divisions. Amazon.com, as a top online retailer, must maintain an organizational structure that can support its growing market reach. Amazon benefits from a changing organizational structure by expanding its product line and diversifying its operations. This structure’s design complements the company’s technological core (Research Methodology, 2020). The organizational structure of Amazon allows for administrative oversight. Through this type of oversight, strategic management activities are implemented thoroughly (Solanki, 2019). As Amazon.com Inc. diversifies its activities, the characteristics of this structure offer the necessary support for new product launches in the e-commerce industry. Future corporate structure features are projected to capture business requirements based on new organizational components that reflect a more diverse firm.
The most vital feature of Amazon’s organizational structure is function-based groupings. A dedicated group or team and senior management exist for each significant business function. The strategic goal of having this structural attribute is for Amazon.com to manage effective e-commerce operations throughout the company (Research Methodology, 2020). As indicated in Amazon.com Inc.’s Generic & Intensive Growth Strategies, the firm expands due to this aspect of the corporate structure to ease starting operations in new markets.
The global hierarchy, a typical organizational structural characteristic, is also a highly essential component of the organization. Such a trait is described as a worldwide system of vertical lines of command and authority that impact the online retail organization in the example of Amazon.com Inc (Solanki, 2019). Senior managers’ directions, for example, are implemented across the corporation, affecting all relevant offices throughout the world. The strategic goal of this aspect of Amazon’s organizational structure is to make management control of the entire company easier.
These aspects characterize Amazon as a versatile and efficient international company. The business has a comprehensive management network, and besides, it is expanding every year. An efficient and high-quality approach to the hierarchy and delegation of tasks is the key to its success, which is reflected in its management structure. Amazon has an evident and efficient organizational structure, and the organization has a solid and stable system.
Meyer, P. (2019). Amazon.com Inc.’s organizational structure characteristics (an analysis). Panmore Institute. Web.
Research-Methodology. (2020). Amazon organizational structure: A brief overview. Web.
Solanki, K. (2019). ‘To what extent does Amazon.com, inc success be accredited to its organizational culture and ND Jeff Bezos’s leadership style? Archives of Business Research, 7(11), 21–40. Web.