Everything CUEGIS – Amazon Exam Elaboration |Question and Answer| 100% Correct

Everything CUEGIS – Amazon Exam Elaboration |Question and Answer| 100% Correct Change Driving forces and restraining forces creates change in a business so that they can move forward and remain competitive. Culture the norms of an organisation, a country, or other social grouping. Culture shapes the values, beliefs, and customs of people. (Internal and External sections of the organisation) Ethics the socially accepted moral principles that guide decision making, based on the collective belief of what is right and what is wrong. Globalisation worldwide movement toward economic, financial, trade, and communications integration Innovation Innovation generally refers to changing or creating more effective processes, products and ideas, and can increase the likelihood of a business succeeding. Strategy devising plans to achieve the long-term goals of an organisation Changes in Technology - Amazon Prime Air - As time passes, the technology is developing at a high rate. This forces/allows amazon to change and develop some of their main products - Amazon Prime Air - This year the company created a new event called MARS. In which they introduced a new delivery system using drones (Prime Air Drone) which aims to reduce Amazon's 2 day shipping to one day - Delivery drones aren't widely available for US customers because of the need for regulatory approvals. But Amazon is hoping to use these devices to get customers items that weigh five pounds or less in about 30 minutes, helping it deliver products to shoppers much faster. - The company is already piloting drones in the UK and has permission to test drone deliveries in the US. Effect of amazon prime air ( - Getting drones approved could bring about an even bigger change in consumer shopping, pushing more purchasing to online stores like Amazon and away from local shops and big-box brick-and-mortar stores. - Prime Air is one of many sustainability initiatives to help achieve Shipment Zero, the company's vision to make all Amazon shipments net-zero carbon, with 50% of all shipments net-zero by 2030. When it comes to emissions and energy efficiency, an electric drone, charged using sustainable means, traveling to drop off a package is a vast improvement over a car on the road. Today, most of us run to the store because we need an item now. With a service like Prime Air, we'll be able to order from home and stay home. This saves tremendously on fuel usage and reduces emissions (Jeff Wilke) Who is jeff wilke? Amazon's CEO Worldwide Consumer since April 2016. He leads Amazon Stores, Prime, operations, technology, and marketing. He joined Amazon in 1999 to lead global operations. Changes in Amazon (Alexa and Amazon Web Services) - Amazon Alexa has been introduced which utilises voice recognition. Amazon have already sold over 20 million Alexa's, which would have generated a fair amount of revenue. As technology changes, Amazon has become a large B2C e-commerce giving customers a 24/7 access to purchase products as well as fast delivery. - Amazon Web Services, which reported $3.53 billion in revenue for Q4 2016, is another example of innovation, expanding Amazon's core offerings from e-commerce to the digital B2B space Change -Negative implications - Change in the laws (data protection): Amazon used to advertise most of its products using data they received from customers. However, now there is a law against this method, they must change their strategy. - Value increase has been fueled by declines in traditional retailers. The Amazon Effect has caused shares in companies like Sears Holdings, JCPenney, Kohl's, Macy's and many other stalwarts of the bygone era to be crushed. - Due to the Amazon Effect, the entire brick-and-mortar retail industry is slowly shutting down. Comparison between Wall- Mart and Amazon - In 2016 Walmart was worth $216 billion, and Amazon was worth $332 billion. The difference could be explained by realizing that Wal-Mart was the leader at brick-andmortar sales, which were shrinking, while Amazon was the leader in e-commerce, - Since then Wal-Mart's value has increased to $222 billion - up $6 billion, 2.8%. Meanwhile Amazon's value has increased to $403 billion- up $71 billion, 21.4%. - Over three years (starting 3/3/14) Wal-Mart's per share value has declined from $74 to $71 (down 4%,) while Amazon's has risen from $370 to $845 (up 128%.) (Forbes, Hartung) Culutre: (Negative Implications) - Jeff Bezos has received the Axel Springer Award 2018 for business innovation and social responsibility. - During the award ceremony, angry employees protested outside. - The Amazon boss has responded to criticism about poor pay and working conditions at Amazon. - However, it isn't just the pay with which Amazon employees are dissatisfied. Employees are also complaining about "chaotic conditions" in the workplace, stress and lack of occupational safety, amongst other things. - However, the noise wasn't coming from aggrieved employees; it came from journalists wanting a photo of Bezos.