Question: A Wan Streef Journal article on Apsil 4, 2021, Amazon's Labor Unrest May Show af Faw 28 the Margins, descibed Amazon as having thin margins

A Wan Streef Journal article on Apsil 4, 2021,
A Wan Streef Journal article on Apsil 4, 2021, "Amazon's Labor Unrest May Show af Faw 28 the Margins," descibed Amazon as having "thin margins by tech standards," noting that Amazon's revende'cmployee was only about one-fith as large as "peers" such as Aphabet (Google) Apple. Facebook, and Microsoft. The Jounaw seemed to be suggesting that if unionization is successful at Amazon (on a significant scale, Le., beyond the one current location where a union organizing dive is taking placel, that Amazon's iabor costs will increase and it cannot afford that it its margins are already thin. Why would the Journaruse these tech companies as peers? isn' Wamart a better peer comparison? To get better insight, go to the most recent annual reports foem to-k., readily avaliable on the web, and compute revenue per employee for Walmart and Amazon. (At Amazon, Lse net sales as revenuej Aso, compute the ratio of opetating income to revenue by business ssyment for Walmart and Amazon. (Revenue per employee is not possible to compute based on the Amazon annual report.) Each compary has three business segments. QUESTONS: 1. How do the revenue'employee numbers conpare across companies? 2. How does the ratio of operating income to revenue compare acioss segments within and across the companies? Focusing on Amazon, how do these operating incomeinevenue ratios differ across its segments? 3. We will see that choosing peer companies to compare compensation includes those: that are product market competitors, as well as iabor market competitors. Based on the ratios you have computed and examined, who ace Amazor's product market competitors

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