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Evaluate How Each Category of Stakeholder Impacts the Overall Success of Amazon Company

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First, it may help to speak to the expectations that any stakeholders may have of a particular business or institution. It depends on particular stakeholders, of course, but we can safely say that all stakeholders expect a form of satisfaction from an organization

If these stakeholders are shareholders (stockowners), then they generally wish to see a high return on their purchase of company shares. If, on the other hand, they are employees, they typically hope for interesting tasks, a safe work environment, job security, and rewarding pay and benefits. If, yet again, the stakeholders are members of the community surrounding a business, they usually wish that the company not harm the physical environment or degrade the quality of life within it.

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Amazon.com, Inc.’s ability to satisfy stakeholders supports organizational growth in the e-commerce industry. In Archie Carroll’s model of corporate social responsibility (CSR), stakeholders are individuals or groups linked to the organization based on their stake in what the business does. The company affects its stakeholders, and vice versa

In the case of Amazon, stakeholders have widely varying interests, considering the global reach of the organization. This condition requires a broad scope for the company’s corporate social responsibility strategy, policies and programs. Satisfying stakeholders’ interests helps maintain Amazon’s market position as the leading online retail company in the world. Amazon.com Inc. maintains corporate social responsibility initiatives to target the interests of its main stakeholder groups. In general, the e-commerce organization experiences pressure from a variety of stakeholders and their interests. Nonetheless, Amazon’s corporate social responsibility programs are designed to address and satisfy the interests of the following stakeholder groups, arranged according to significance. Amazon’s corporate social responsibility strategy gives the highest priority to customers as the most important stakeholder group. The company considers customers as the primary determinant of its e-commerce business success, especially because these stakeholders significantly affect revenues. Such prioritization agrees with Amazon’s mission statement and vision statement, which highlight the centrality of customers in the business and its development. The interests of these stakeholders are fair pricing, convenience of service, and online security in transacting with the company. Amazon satisfies all of these interests through emphasis on service and technology. For example, the company uses advanced information and communication technologies for secure transactions and for efficient purchase and delivery processes. Amazon employees are also trained to maximize the benefits of these technologies and to ensure customer convenience. In addition, fair pricing is maintained through competition among sellers on the company’s online retail website and through the market-based pricing strategy [Read: Amazon’s Pricing Strategies, Marketing Mix]. Thus, Amazon’s corporate social responsibility approach effectively addresses the interests of customers as the primary stakeholder group. Amazon.com Inc. integrates stakeholders’ interests in its corporate social responsibility (CSR) strategy. The company considers these interests as significant influences on the e-commerce business. Such strategy supports Amazon’s mission and vision, which affect organizational development. It is appropriate for the company to prioritize customers as the primary stakeholder group, considering the online retail nature of the business. The inclusion of employees and communities is one of the strengths of the strategy. The company’s corporate social responsibility approach is also flexible because customers are free to choose their charitable organizations through Amazon Smile. However, the interests of governments and investors as stakeholders are not clearly included in the strategy. For example, Amazon’s corporate social responsibility efforts must consider investors’ interests on the financial performance of the e-commerce business. The company must also address governmental interests regarding consumer protection and international retail. These considerations show that Amazon’s corporate social responsibility strategy is satisfactory, but has room for improvement.

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Amazon is one of the first few companies that benefited the most from the early mover advantages in the dot com bubble in the early 2000s. It an online retailer that makes use of cloud computing to practice an integrated business model that allows it to function effectively in the advance, complex and ever increasing internet industry. Being a large company, Amazon has to address various underlying stakeholders (Saunders, 2001). Prime stakeholders that Amazon has to look after are: board of directors, investors, employees, customers, strategic partners and suppliers. Each stakeholder is not only affected by the company’s performance but in turn affects the company’s strategic decision making as well. The paper discusses the specific interests that each stakeholder has associated with the company and based on the objectives of the company, maps them on the Power Interests Matrix

The paper also examines in the light of the case of Amazon, how corporate social responsibility affects organisational strategy. Community constitutes the publics that are concerned with social well-being and social development (Spector, 2000). On the stakeholder map, community is low power and low interest. Amazon is, nonetheless, accountable for its carbon footprint especially with regard to the material used and disposed in packaging of the goods delivered to the customers and the means of transportation used. With the increasing green purchasing habits of customer, Amazon is now considering the impact that being responsible for the environment is crucial for the profitability of the company. Thus, this makes community a key stakeholder, considering the present situations, wherein, it constitutes high power and high interest with regard to responsible purchasers (Godelnik, 2011). Amazon takes community and environmental issues as least prior in making strategies. However, analysts and publics alike have raised ample concerns for the carbon footprint of Amazon in the making of Kindle and the packaging and delivery of the products customers buy online from the Amazon e-store. A source of concern is the fact that Amazon is yet to disclose its environmental impact reports. Such concerns are putting Amazon in a negative place in the minds of the ‘responsible’ consumers and thus, shaping a bad public image of the company. In order to avoid extenuating circumstances, Amazon will have to publish a CSR report in order to disclose its environmental impacts. This calls for taking into account the carbon footprint of the company and going ‘green.’ Thus, this indicates that CSR does not primarily affect the company but the company has stepped into a position where it will have to shape its strategy round CSR issues as a response to public appeal (Godelnik, 2011). The stakeholders of Amazon are managers, directors, strategic partners, employees, customers and community, wherein, key are customers and community at the time. In line with environmental pressures, Amazon is most likely to be affected with social responsibility and will have to shape its corporate strategy to disclose its carbon footprint and go green to suit its responsible customers’ demands and make good its public image.

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In conclusion, Amazon.com is a public owned company, which focuses on employees and excellent services. It is team oriented organized by product. Amazon’s web site offers the ability to present a broad range of merchandise

Well organized and easy to navigate help and FAQ pages make the difference in smooth shopping experience. Building a customer community helps to keep customers coming back to the site. It also helps shoppers identify with the brand. Amazon has built a loyal customer base of millions, thanks to a highly efficient web buying experience and outstanding customer service. With some controlling interest in popular Web sites, word-of-mouth from users, the ease of communication using e-mail and options such as gift certificates, Amazon.com has created one of the most popular home-shopping sites today.

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Saunders, R. (2001). Business: The Amazon.com. Capstone Publishing Limited

Spector, R. (2000). Amazon.com: Get Big Fast. Harper Collins

Godelnik, R. (2011). Why Amazon Needs to Come Clean about its Carbon Footprint. Triple

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