BUS FPX 4013 Assessment 5 Business Theories

Student Name

Capella University

BUS-FPX4013 Organizational Structure, Learning, and Performance

Prof. Name

Date

Business Theories

Business theories encompass principles used to elucidate markets, competition, innovation, and organizational culture. Often, when a business fails, it’s because the right actions are undertaken but prove unproductive due to misalignment with the evolving reality. Failure to adapt to changes in the competitive environment poses challenges to maintaining a competitive edge.

The key tenets of business theory revolve around three main components:

1. The Marketplace Defines Reality: Successful organizations keenly observe changes and recognize that determining what customers value today and in the future is paramount for success.

2. Focus is Achieved When Aligned with Reality: Few organizations possess the power to shape reality. Hence, to thrive, businesses must adapt to shifts in the marketplace and tailor their offerings to meet consumer needs.

3. Developing Skills for Long-Term Survival: Once aware of necessary changes, organizations must cultivate the skills and competencies essential for sustained success.

Constantly revisiting business theories is imperative to avoid stagnation.

Industry Description and Best Practices

Amazon exemplifies an organization with strong alignment between strategy and structure. With extensive control over global e-commerce operations, Amazon’s corporate structure effectively directs operational activities across various business domains. By continuously evolving its structure to accommodate expanding market reach, Amazon reinforces its competitive position.

Amazon’s strategy tightly aligns with its adaptable structure, enabling rapid market research and adaptation. As evidenced by its dominance in the e-commerce market, this alignment fosters success.

Enhancing Industry Performance

Based on a SWOT analysis, recommendations for Amazon’s performance enhancement include:

1. Strengthening marketing efforts to offer unique experiences.
2. Resolving tax issues and managing negative publicity effectively.
3. Expanding into developing countries through strategic entry approaches.
4. Addressing counterfeit sales through technological upgrades.
5. Transparently addressing workers’ concerns to enhance corporate reputation.

Business Mindset Shift and Performance

Amazon embodies several thinking habits, including connected seeing, collaborative teamwork, and courageous action. By focusing on the entire customer experience, fostering collaboration, and boldly adapting to ambiguous situations, Amazon continually enhances its performance.

Redesigning for Higher Performance

Amazon’s success hinges on core competencies such as cloud-based services and efficient logistics. To sustain market leadership, Amazon must continue focusing on these strengths while adapting its global business model to mimic local delivery and logistics supply chains.

References

Ambroise, L., Prim-Allaz, I., Teyssier, C., & Peillon, S. (2018). The environment-strategy-structure fit and performance of industrial servitized SMEs. International Journal of Service Industry Management, 29(2), 301-328.

BUS FPX 4013 Assessment 5 Business Theories

Aleksić, A., & Jelavić, S. R. (2017). Testing for strategy-structure fit and its importance for performance. Management: Journal of Contemporary Management Issues, 22(1), 85-102.

Milgrom, P., & Roberts, J. (1995). Complementarities and appropriate strategy, structure, and organizational change in manufacturing. Journal of Accounting & Economics, 19(2-3), 179-208.

Pauline Meyer (2019 February 16). Structure Characteristics (An Analysis). Retrieved from www.pnamore.com

Annie Palmer (2022 February 4). Amazon’s profit engines are humming. Retrieved from www.cnbc.com

Randall Rollinson (2021 January 29). Why does Amazon Succeed? Retrieved from www.Lblstrategies.com

Prachi Juneja (2020). Amazon’s Corporate Strategy. Retrieved from www.managementstudyguide.com

BUS FPX 4013 Assessment 5 Business Theories