The effect of the particular external factors or forces might have extreme consequences for the specific department or divisions, also the analysis better helps companies in clarifying the needed or required changes, thus identifying the potential options (Norton, 2008). Amazon was the biggest Internet-based retailer in the United States and had frequently been featured on lists of the most admired companies. STEP 8: Generating Alternatives For Amazon as an Employer Case Solution: After completing the analyses of the company, its opportunities and threats, it is important to generate a solution of the problem and the alternatives a company can apply in order to solve its problems. October 16, 2018 June 22, 2018 admin Case Study Amazon Amazon E-business through its models helps reduce costs of doing business. HBR case studies provide anecdotal instances from managers and employees in the organization to give a feel of real situation on the ground. In addition, alternatives should be related to the problem statements and issues described in the case study. Did stress foster innovation, and, if so, at what point did that stress become destructive? These factors are important to be mentioned in the recommendation, in order to make itr strong and firm and allow the stakeholders/reader to connect the problem and solution, leading to better understanding.
In other words, the analysis keep focusing on the past performance evaluation in terms of profitability, liquidity, growth potentiality and operational efficiency. Cost of goods sold and gross margin analysis: in operational analysis the most commonly used ratios involves the calculation of the cost of sales as a percentage of sales. Prioritize the points under each head, so that management can identify which step has to be taken first. These weigtage are given based on most favorable to least favorable, and the option with most rating s ultimately selected. These forces refers to micro environment and the company ability to serve its customers and make a profit. The barriers can be both industrial and legal. Though in many cases, it is difficult to analyze the feasibility of the options especially the intangible factor, however, quantifying the maximum option is important, in order to develop a clear image and understanding of option that will address the problem. In addition to this it does not provide any solution or alternatives decisions. Perhaps, stating the problem statement is not just writing the fact, it’s more about the factors that are effecting or may affect the organization in long term, therefore, while developing the problem statement, the factors such as human resource skills innovation, technology, change resistance are considered, that have a direct effect on the organization or is hidden cause of the problem.
There percentages are most likely providing analysts or managers with the fast or rapid way for finding key issues or problems. And when there is no close substitute available for the products being supplied by the suppliers.
To write an emphatic case study analysis and provide pragmatic and actionable solutions, you must have a strong grasps of the facts and the central problem of the HBR case study. Current debt to equity ratio: it is the mix if the debt of an organization. The social factors includes safety and health consciousness, various demographics, population growth rates and cultural aspects. Nature if industry in which organization operates. In addition to this, the careful and deep consideration is given to the political, economic, social and other porter 5 forces and pestel model so to understand the alignment of right alternative with maximum value and weightage in resolving the problem.
Such is due to the fact, that it allows the management, stakeholder to quickly understand the finding and also look on the main problem, rather getting entangled in the symptoms of the problem. Another method used to evaluate the alternatives are the list of pros and cons of each alternative and one who has more pros than cons and can be workable under organizational constraints.
There may be multiple problems that can be faced by any organization. It is encouraged to be consider especially for a projects that are large and complex in nature.
It defines the areas in which the organization hold a command or is good at doing it and that provides the organization and important capability. However, when more than one few companies uses the same resources and provide competitive parity are also known as rare resources.
An organization should innovate and be compatible with the technologies. It is carried out to analyze the position of an organization in in the market compare to its competitors and the major factors that are affecting the competitiveness before crafting any business strategy. While the typical investor shows their greater interest in absolute change in shares value, the insights from the stock performance to the appropriate average and to the market for some industries are supposed to be helpful to assess the company’s particular trend (Rappaport, 2010). The potential factors that made customer shift to substitutes are as follows: Products substitute available in the market. Moreover, under the particular section, the decision criteria is also developed. Therefore to select the best alternative, there are many factors that is needed to be kept in mind.
While developing The Alternative, the following factor are taken in account, in order to develop the best alternative that may resolve the problem effectively. As a framework, SWOT does processes a value but it doesn’t provide the organization with any specific direction on how the key aspects can be identified. Effect on organization due to Change in attitudes and generational shifts. Once it is done, each alternate is compared against each other and with the decision criteria develop, and are given different weigtage. it only incorporates the aspects of the present day and only incorporate the events that took place within the short term period. Another way of understanding the external environment of the firm in Amazon as an Employer is to do a PESTEL - Political, Economic, Social, Technological, Environmental & Legal analysis of the environment the firm operates in. Leaders in the industry came to Amazon's defence, while employees at other organizations began to disclose their own experiences of toxic work environments. Amazon as an Employer Threats are the factors that prevent the organization from the actualization of an activity.
In addition, the compatibility of the option is also analyzed, in order to understand if the given option is aligned and compatible with the procedures of the organization. Such type of calculation needs very selective estimate or analysis of the variables and fixed cost or expenses of the company while taking into consideration the operating leverage effect. Until& unless, the organization critically examine the attributing factors, the analysis’s findings does not seem to be of greater value or consideration. And its ratio with corruption and organized crimes. These are the factors that are easily imitable by the organization (other players) and thus needs to be considered. All in all, the problem statement gives a direction to the organization in understanding the right solution path and also development of the solution sets in order to overcome the current issues that are deteriorating the organizational performance or productivity. In addition, the problem statement is a group process, and hence requires a detail understanding of the issues the organization may be facing, by all members in the team.
It provides the way of looking at the relative equity and debt amount that has been using by company in order to finance the assets. High threat of substitute leads to low profitability as it limits the industry profits by placing a price ceiling due to the fear of being substituted by other product. It is important to note, that the problem statement can cover tangible or intangible issue but it needs to have a clear relationship with the organization end goal.
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