SWOT + Analysis:
- Strengths: Innovation (Amazon Go & Prime), Demand Driven Supply Chain, Brand Recognition, $100+ Billion in Sales
- Weaknesses: High Employee Turnover Rate, Unreliable Sellers, Reliance on External Shipping
- Opportunities: International Expansion, Drone Delivery Technology, Vertical Integration
- Threats: Competitors, Cybercrime, Laws and Regulations
Amazon's cut-throat corporate culture creates very low employee tenure when compared to other big tech organizations.
Proposed Change + Rationale
- Change: Amazon and its employees will benefit if we terminate PIP (Performance Improvement Plan) and replace it by providing feedback through Strength Based Coaching.
- Strength Based Coaching: A positive organizational behavior approach to coaching and feedback that focuses on building and leveraging the employee's strengths rather than trying to "fix" his or her weakness.
- Theory: Action Research Approach for Organizational Change, helps organizations recognize what they need to change to adapt to the market. (Turnover Rate and PIP issue)
Kotters Change Model Analysis for the Proposed Change
- Create a sense of urgency
- Build a guiding coalition
- Form a strategic vision
- Enlist a volunteer army
- Enable (get rid of PIP)
- Generate short term wins
- Sustain recent gains
- Institute (Strength Based Coaching/Appreciative Coaching)
Conclusion: By instituting Strength Based Coaching in the place of PIP, Amazon will continue to improve employee loyalty, and contentment which in turn can lower Amazon's high turnover rate.
Have you or a family member shopped with Amazon Prime and how was your experience?
Do organizations who desire more positive corporate culture benefit from an encouraging feedback system like Strength Based Coaching?
Do you think Amazon.com can break into diverse markets like grocery and perishable foods despite supply chain limitations?
"So do not fear, for I am with you; do not be dismayed, for I am your God. I will strengthen you and help you; I will uphold you with my righteous hand" - Isaiah 41:10