P1
Features of Amazon
Amazon was incorporated in 1994 by Jeff
Bezos, a former Wall Street hedge
fund executive. Due to the variety of technical
talent such as Microsoft in that area, the
company was opened up in Seattle.
On the basis of research Bezos conducted he
concluded that books would be the most logical product to sell online. Amazon
wasn’t the only business with that same idea however the company promised to
deliver any book to any reader anywhere. However, by the end of 1996 Amazon had
racked up $15.7 million in revenues, and in 1997 Bezos took the company public with
an initial public offering that raised $54 million. In 1998, Amazon extended beyond
books and started selling music CDs, and by the following year it had added more
product categories, such as toys, electronics and tools 1 .
Today Amazon's presence now spans 58 countries and reaches the greatest
international online population, 1.2 billion people, according to Website Builder
Expert (WBE), which used data from Amazon's Alexa Internet.2
Ownership
Private sector organisations are independently run without government funding or
help, whereas public sector establishments operate on the funds provided by the
government. Amazon would be referred to as a private sector organisation as it is
independently owned and doesn’t function on government funding. However, even
though Amazon is a private sector organisation it is still a public limited Company.
A public limited company is the largest type of business; it’s owned by shareholders
for example members of the public. The shares of the company are traded on the
stock exchange and directors are paid to run it.
Amazon is a public limited company, therefore many people own shares.
Even though Jeff Bezos is the CEO of Amazon, he only owns 16% of the company.
There are many advantages and disadvantages to being a public limited company.
One advantage of being a public limited company is that funds are easily accessible
and shares can be traded efficiently on the stock exchange. Another advantage of
being a PLC is that directors can be brought in as expert in certain fields and help run
that specialised task. As a result of the size, PLCs can dominate the market. Due to
1
history. (2015). Amazon opens for business. Available: https://www.history.com/this-day-in-history/Amazon-opens-
for-business. Last accessed 23/09/2019.
2
Dan Alaimo . (2018). Amazon dominates international marketplace reach. Available:
https://www.retaildive.com/news/Amazon-dominates-international-marketplace-reach/531926/. Last accessed
23/09/2019.
,this size PLCs can dominate the market as the public have access to shares of the
company therefore more exposure.
Liability
Liability refers to responsibility and accountability a business has for debt.
If a company had unlimited liability then the owners would be accountable for
any Debt Company falls into.
Limited companies are separate legal entities to the founder. These companies are
owned by shareholders and run by directors who are appointed by them. The
directors run the company in the interests of the shareholders. Shareholders
ownership of the company but they do not own the assets of the company therefore
they are not liable for the debts of the company. The company owns the assets and
pays the debt if the company becomes insolvent then the company will close.
Overall the importance of Limited liability for the shareholders at Amazon is that
they are not liable for any debts for the company.
For Amazon the biggest advantage of being a limited company is that it protects the
shareholders are also easier to raise finance through the sales of shares. However
being a limited company also has major disadvantages one of them being greater
admin costs. However having limited liability can be Contradictory to the company
finances as company accounts can be inspected by public competitors, who can take
advantage of this information as PLCS are obligated publish more information than
a private limited company would. As they are a public company anyone can buy
shares and is possible for an interested party to take control of the company very
easily.
Scale
International organisations are establishments that operate on a global scale.
Amazon would be referred to as an international business. Amazon is currently
present in 16 different countries beside the UK. However Amazon has stakeholders in
more than 100 countries.
They are many benefits being an international business.
One of those benefits is that there is increased revenue. Each country that Amazon
operates in adds to the long list of potential number of customers in addition to the
internal and external stakeholders that cause mass business growth and increased
profits.
Being international businesses allows for a lot of exposure, this influence benefits
Amazon as it boosts the company’s reputation. Success in one country can influence
the successes in another country which increases the company profiles.
In the event that Amazon has items that don't sell well in a nearby or regional
market, Amazon may discover a more prominent interest abroad. They don't need to
sell unsold stock at a discount. They can scan for new markets where their products
can sell at considerably greater expense than they did in the local advertise. Amazon
may discover new items to sell abroad that aren’t offered locally. They can provide a
, wider variety of items which they can market globally. However being an
international business has many drawbacks.
One of those disadvantages is, companies usually have to adapt the product and
packaging to suit the local culture, preferences and language of that market. An
example of this is on the Indian website for Amazon (see figure 1). Amazon has
modified their website to Cater to their customers in India. A way they have done
this is by creating an option for the customer where the language can be changed
from English to Hindi or vice versa. However this can be time consuming and
ineffective cost wise.
Amazon being an international company always will have political risks. A
government can change laws or create regulations that directly impact the
organisation.
Size
As of the 1st January 2019, Amazon had
647,500 Employees3. And organisation of this
size would be referred to as a large enterprise.
According to the 2017 organisational structural
chart there are many Managers and leaders of
different sectors of the business. Being a large
sized company have many advantages.
One of these benefits is for the employees.
Having a tiered structure with a lot of management allows for the employees to
receive much support, Guidance and feedback. There is also a lot of backup staff in
times of need. For example if one employee calls in sick there is always someone to
take it that persons place. Having more than 600,000 employees allows for a lot of
expansion globally. Therefore there are many chances to relocate in different
countries and regions. This is a benefit for employees as they have the opportunity to
see a new country and work in a new area of business within the same company
without having to redo any sort of training or application process. However being a
very large organisation has many drawbacks.
One of those drawbacks is that it’s very hard to communicate with other
departments as there are too many channels and processes to go through before
anything can get solved. Being a very large
Figure 2017 Amazon organisational chart, accessed 01-10-
company means there are many legalities and policies which need to be followed.
3
Amazon. (2019). Amazon employee. Available: https://www.google.com/search?
safe=strict&rlz=1C1GCEU_enGB869GB869&q=How+many+employees+are+there+in+Amazon
%3F&sa=X&ved=2ahUKEwjk8NTPmvvkAhVvRBUIHRiiAp4Qzmd6BAgNEAc&biw=1920&bih=969. Last accessed
01/10/19.
Features of Amazon
Amazon was incorporated in 1994 by Jeff
Bezos, a former Wall Street hedge
fund executive. Due to the variety of technical
talent such as Microsoft in that area, the
company was opened up in Seattle.
On the basis of research Bezos conducted he
concluded that books would be the most logical product to sell online. Amazon
wasn’t the only business with that same idea however the company promised to
deliver any book to any reader anywhere. However, by the end of 1996 Amazon had
racked up $15.7 million in revenues, and in 1997 Bezos took the company public with
an initial public offering that raised $54 million. In 1998, Amazon extended beyond
books and started selling music CDs, and by the following year it had added more
product categories, such as toys, electronics and tools 1 .
Today Amazon's presence now spans 58 countries and reaches the greatest
international online population, 1.2 billion people, according to Website Builder
Expert (WBE), which used data from Amazon's Alexa Internet.2
Ownership
Private sector organisations are independently run without government funding or
help, whereas public sector establishments operate on the funds provided by the
government. Amazon would be referred to as a private sector organisation as it is
independently owned and doesn’t function on government funding. However, even
though Amazon is a private sector organisation it is still a public limited Company.
A public limited company is the largest type of business; it’s owned by shareholders
for example members of the public. The shares of the company are traded on the
stock exchange and directors are paid to run it.
Amazon is a public limited company, therefore many people own shares.
Even though Jeff Bezos is the CEO of Amazon, he only owns 16% of the company.
There are many advantages and disadvantages to being a public limited company.
One advantage of being a public limited company is that funds are easily accessible
and shares can be traded efficiently on the stock exchange. Another advantage of
being a PLC is that directors can be brought in as expert in certain fields and help run
that specialised task. As a result of the size, PLCs can dominate the market. Due to
1
history. (2015). Amazon opens for business. Available: https://www.history.com/this-day-in-history/Amazon-opens-
for-business. Last accessed 23/09/2019.
2
Dan Alaimo . (2018). Amazon dominates international marketplace reach. Available:
https://www.retaildive.com/news/Amazon-dominates-international-marketplace-reach/531926/. Last accessed
23/09/2019.
,this size PLCs can dominate the market as the public have access to shares of the
company therefore more exposure.
Liability
Liability refers to responsibility and accountability a business has for debt.
If a company had unlimited liability then the owners would be accountable for
any Debt Company falls into.
Limited companies are separate legal entities to the founder. These companies are
owned by shareholders and run by directors who are appointed by them. The
directors run the company in the interests of the shareholders. Shareholders
ownership of the company but they do not own the assets of the company therefore
they are not liable for the debts of the company. The company owns the assets and
pays the debt if the company becomes insolvent then the company will close.
Overall the importance of Limited liability for the shareholders at Amazon is that
they are not liable for any debts for the company.
For Amazon the biggest advantage of being a limited company is that it protects the
shareholders are also easier to raise finance through the sales of shares. However
being a limited company also has major disadvantages one of them being greater
admin costs. However having limited liability can be Contradictory to the company
finances as company accounts can be inspected by public competitors, who can take
advantage of this information as PLCS are obligated publish more information than
a private limited company would. As they are a public company anyone can buy
shares and is possible for an interested party to take control of the company very
easily.
Scale
International organisations are establishments that operate on a global scale.
Amazon would be referred to as an international business. Amazon is currently
present in 16 different countries beside the UK. However Amazon has stakeholders in
more than 100 countries.
They are many benefits being an international business.
One of those benefits is that there is increased revenue. Each country that Amazon
operates in adds to the long list of potential number of customers in addition to the
internal and external stakeholders that cause mass business growth and increased
profits.
Being international businesses allows for a lot of exposure, this influence benefits
Amazon as it boosts the company’s reputation. Success in one country can influence
the successes in another country which increases the company profiles.
In the event that Amazon has items that don't sell well in a nearby or regional
market, Amazon may discover a more prominent interest abroad. They don't need to
sell unsold stock at a discount. They can scan for new markets where their products
can sell at considerably greater expense than they did in the local advertise. Amazon
may discover new items to sell abroad that aren’t offered locally. They can provide a
, wider variety of items which they can market globally. However being an
international business has many drawbacks.
One of those disadvantages is, companies usually have to adapt the product and
packaging to suit the local culture, preferences and language of that market. An
example of this is on the Indian website for Amazon (see figure 1). Amazon has
modified their website to Cater to their customers in India. A way they have done
this is by creating an option for the customer where the language can be changed
from English to Hindi or vice versa. However this can be time consuming and
ineffective cost wise.
Amazon being an international company always will have political risks. A
government can change laws or create regulations that directly impact the
organisation.
Size
As of the 1st January 2019, Amazon had
647,500 Employees3. And organisation of this
size would be referred to as a large enterprise.
According to the 2017 organisational structural
chart there are many Managers and leaders of
different sectors of the business. Being a large
sized company have many advantages.
One of these benefits is for the employees.
Having a tiered structure with a lot of management allows for the employees to
receive much support, Guidance and feedback. There is also a lot of backup staff in
times of need. For example if one employee calls in sick there is always someone to
take it that persons place. Having more than 600,000 employees allows for a lot of
expansion globally. Therefore there are many chances to relocate in different
countries and regions. This is a benefit for employees as they have the opportunity to
see a new country and work in a new area of business within the same company
without having to redo any sort of training or application process. However being a
very large organisation has many drawbacks.
One of those drawbacks is that it’s very hard to communicate with other
departments as there are too many channels and processes to go through before
anything can get solved. Being a very large
Figure 2017 Amazon organisational chart, accessed 01-10-
company means there are many legalities and policies which need to be followed.
3
Amazon. (2019). Amazon employee. Available: https://www.google.com/search?
safe=strict&rlz=1C1GCEU_enGB869GB869&q=How+many+employees+are+there+in+Amazon
%3F&sa=X&ved=2ahUKEwjk8NTPmvvkAhVvRBUIHRiiAp4Qzmd6BAgNEAc&biw=1920&bih=969. Last accessed
01/10/19.
