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Analyzing Amazon using 7S Model

The 7-S framework was first developed by two consultants, Tom Peters and Robert H.

Waterman who were working at McKinsey and Co in the late 1970’s. (Peters & Waterman,

1980). In the Chapter 8, Amason talks about how the 7s Model connects the strategy with

various levels of implementation. (Amason, 2011)According to the McKinsey website, the 7s

model is a watershed model that addresses the critical role of co-ordination rather than

structure in organizational effectiveness. (Enduring Ideas: The 7-S Framework, 2008)

The framework consists of 7 elements and are divided in to hard elements and soft elements.

The hard elements of the framework would be Strategy, Structure and Systems. The Soft

elements would be Style, Shared Values, Skills and Staff.

The company I choose to apply the &-S Model is Amazon.

Strategy: The strategy of the company is to be able to sell everything on the website.

Amazon has increased its customer base by building and maintaining robust websites. The

company does business in 14 countries and has a separate domain for every country. The

company adopts country specific strategies and implements them. A lot of Amazon’s success

is attributed to the company’s customer service which the company trains and maintains

efficiently. The company not only targets consumers but also sellers. Third party sellers are

encouraged to sell on the Amazon Marketplace. This increases the catalogue and choice of

products available to the customers. Amazon also boasts a great technological capabilities. Its

cloud services are a huge hit and also provide web service to customers.

Structure: Amazon is a well-structured company. Its hierarchy is a set of vertical lines with

the CEO- Jeff Bezos at the very top cascading authority and commands from top to bottom.

They have a series of levels denoting the person’s current position in the company. For

example an L7 would be a Site Head at any of the company’s site. An L1would be someone

who works at the warehouse. These hierarchies are maintained the same throughout

Amazon’s various Geographic locations throughout the world.

Systems: Amazon boasts of well-organized work place where both formal and informal

systems. All decisions are communicated from the top down via emails, verbally or in the

monthly magazine for employees. Amazon also has employee groups where employees with

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