Question: conclude/ summarize with Headings and bullets the text. The characteristics of Amazons organizational structure play a significant role in maintaining the companys success. Amazon's organizational
conclude/ summarize with Headings and bullets the text.
The characteristics of Amazons organizational structure play a significant role in maintaining the companys success. Amazon's organizational structure is functional, focusing on several company operations and components. These serve as the foundation for determining the interactions and reporting relationships between these various components. The chart consists of three primary components including:
An overarching global hierarchy
Global groups based on function
Geographic divisions with their own sub-divisions
The hierarchy is portrayed in terms of a global system of distinct lines of authority that have a significant impact on the company's operations. At the top, Jeff Bezos holds ultimate control over all senior executives and managers. These individuals then enforce directions through the sectors they manage, either independently or on Jeff Bezos's instructions. These directives apply to all relevant offices of the organization worldwide. With numerous product lines, services, and divisions, its overarching hierarchies provide total management control over the entire organization. The function-based global group is the strongest component in the structure. Each main business function has its own dedicated group led by executive-level management like a CEO or SVP. Amazons primary global groups include:
Office of the CEO, headed by Jeff Bezos
Amazon Web Services, headed by CEO Andy Jassy
Business and Corporate Development, headed by SVP Jeff Blackburn
Finance, headed by SVP & CFO Brian Olsavsky
Worldwide Consumer, headed by CEO Jeff Wilke
Legal, headed by SVP David Zapolsky
Worldwide Controller (Accounting), headed by VP Shelley Reynolds
Corporate Affairs, headed by SVP Jay Carney
With this framework, Amazon can manage its e-commerce activities across the entire company and easily develop operations in new and expanding areas. Geographic divisions are also part of Amazon's organizational structure. Groups are formed based on physical geographic regions and linked commercial goals. The company has two geographic divisions which are North America and International. The company's e-commerce department uses these divisions to make it easier to run the e-commerce operation based on the characteristics of these locations, their legislative framework, and any logistical issues.
The company's top competitors, Walmart and Target, have their own ways of creating their organizational chart. Walmart's organizational chart is designed in the form of a matrix. It combines the organization's multiple functional hierarchies and divisional structures. Each Walmart store runs under a standard hierarchical structure, with different levels of supervision reporting up the chain until it eventually reaches the CEO. In addition, employees are organized in the company's functional structure based on their talents, competencies, and functional departments. Walmart is divided into different subsidiaries, each of which operates in retail and e-commerce. Because the corporation also includes specialized stores, Supercenters, and Walmart Estate, they utilized a hybrid strategy with distinct organizational structures used to manage different components of the company. Walmart benefits from a matrix structure because the hierarchy provides clarity and assists decision-making, while the functional aspect provides productivity and responsibility.
On the other hand, Target's organizational structure is designed into corporate and stores level. The store management is made up of numerous store team leaders who oversee operations at the various stores. Top management makes up the corporate level and include the:
CEO (also doubles as the director)
CFO (who also acts as the CAO and EVP)
Relationships Chairman
President of Target Sourcing Service
President of Target.com
President of Target Financial Services
President of Community Relations and President of Target Foundation
Senior VP of Merchandising
Executive VP Corporate Secretary and General Counsel
Senior VP of Target Sourcing Services of Regions II and III
The top management is involved in developing the strategies within the company. They are in charge of expansion, personnel sourcing, standard development, financial control, and merchandise purchase. In addition, Target's store management is involved in the handling of consumer needs by ensuring that the appropriate strategies and standards are executed. Target prefers a tight range of control since it provides the organization with flexibility and control over all processes. This also tightens the power circles, allowing for decision-making and planning to take place without obstructions. These aspects make up Targets organizational structure chart.
In comparison to the two main competitors, Amazons HR organization chart seems to be the most successful and effective. The primary benefit of Amazon's overall hierarchical structure is that it allows them to rapidly and efficiently address and implement directives from senior managers, executives, and stakeholders across the organization. At the same time, global and geographic divisions are beneficial in supporting the attention on various aspects of the business and geographic regions, each with its own set of challenges and economic situations. Amazon's organizational structure works because it effectively supports worldwide expansion in a wide range of markets. The company's continuing success in expanding and growing its many areas of operation is evidence of how well it works, and therefore do not recommend any changes to the current organization's chart.
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