o7iozr2026 15:08 Final exam Performance Management Course MS Auditing 2024 Final exam Performance Management Course MS Auditing 2024 AMAZON CASE STUDY a Presentation of the case study from Question 55 to 59. Be careful no answers have to be provided in this section 55 1. From online bookstore to ... ‘everything store online’ "1-Click" technology, Amazon Prime, star-review, "Best-Seller" rank, Kindle reader, Amazon Fire tablet, and Echo smart speaker are what people most know about Amazon, one of the world’s largest companies by market capitalization, Founded in 1994 in Seattle, US by Jeff Bezos, Amazon has grown from an online bookstore based in a house garage to an ‘everything store online’. The company grows at the rate of 20% - 30% for years. Its revenue and net income reached at about US$230 and US$10 billion, respectively, in the fiscal year of 2018. Over about 20 years, its stock price went up from US$1.96 at Initial Public Offering (IPO) in May, 19971 to above US$2,000 in September, 2018. This case unveils Amazon's strategy and its management control system behind this extraordinary success. Entrez votre réponse 56 2. Value of trust and convenience bitpsforms. office. com/pagesitesponsepage.aspx7id=5gONt6L2_0yDvoRSGMRT-XCJTWItFLPOgjoKCdpRAMBURTZOOUSWVIVXNzowROKC.... 18o7iozr2026 15:08 Final exam Performance Management Course MS Auditing 2024 Amazon maintains competitive advantage against its rivals, such as e- commerce giant Ebay or traditional retailer Walmart, Target, and Costco by creating the superior value of trust and convenience to customers, i.e., friendly return policy and reliable ‘user-generated review’. Product review is a key to persuade shoppers to buy new goods, as buying new products poses many concerns and questions to buyers and new users. Since the early years, product review has been developed as one of Amazon's competitive advantage. However, their authenticity was not attained until product review is generated by real buyers. Also, recognizing that credit card owner's private information is another issue holding back online shoppers, Amazon employs Secure Sockets Layers (SSL) software to encrypt customer's credit card number, requiring two ‘keys’ to decode the encryption. If user's credit card information is hacked, card holder is only liable up to US$50. Also, to protect its customers’ credit card information from independent third-party sellers, Amazon allows its customers to charge, pay, and recharge its self-developed virtual wallet, called Amazon Payments. Besides, Amazon works inclusively to improve client experience by introducing the "1-click” purchase option, shortening delivery time, developing a real-time product recommendation system, and offering free shipping. The “1-click" technology once launched was a big game changer for Amazon to attract more hassle-free online buyers and to alleviate shopping-cart abandonment -- one of the biggest challenges of e-retailers Amazon improves its delivery services by using Amazon Air (its own air cargo jets) and Prime Air (delivery drones). Finally, launching ‘frequently bought together’, ‘customers who bought this also bought, ‘compare to similar items’, and ‘recommended for you’ option, the company applies algorithms and artificial intelligence to smooth shoppers’ experience and thus to increase purchase volume. QQ Entrez votre réponse 57 3. Employee performance measurement To keep growing fast for years, Amazon maintains high challenge culture, which reflects in its data-driven employee performance measurement. itp:fornsofteecomipagestesponsepage.aspxid-5GONIL2_OyDvoR@GmRT-XCJTHFLpOgioKCdpRAMBURTZOOUSWVIVXNZoHROEC... 26orioaenzs 15.04 Final exam Perormance Management Course MS Aucting 2024 Amazon is one of the last tech companies moving away from stack-ranking performance review system. In the ‘rank and yank’ system, the company ranks employees in curve to reward top performers and to lay off the bottom ones. Also, Amazon used an “Anytime Feedback Tool” for constantly channelling feedback (both praise and criticism) between employees to their respective managers. The content of feedback was known by employee's, manager, but unknown to recipient. This dreaded stack-ranking system is criticized as “purposeful Darwinism” and "bruising" work culture, creating an unnecessary ambiance of hate and anger. The work-life unbalance was portrayed as employee crying at their desks amid demanding work. Subsequently, Amazon abandoned the ‘rank and yank’ system, as it competes with other giant tech companies, i.e. crosstown rival Microsoft, Facebook, Google, and start-ups, to attract and retain talent workers. In 2017, it launched a new system called “Forte” which centres on employee strengths instead of weaknesses. Also, to increase employee engagement among its workforce of more than half-million workers, Amazon also rolled out a new feedback program, called "Connections". In the new Q&A feedback program, employees are asked to daily answer a question popped up on their screen, which ranging from their manager's leadership, the length of meeting, to sensitive questions, for example, how crowded is bathroom. Data collected from the answers are analysed closely by its Human Resource People Science team. Employees’ feedback on the “Forte is quite positive, but their reaction to the “Connections” is mixed due to concerns about the confidentiality of their answers. One of the mechanisms that Amazon uses to drive employee ‘constant learning,’ employee reward, and organizational innovation is white paper process. To propose any idea of a new product or service, employees are asked to write a paper which is later read and then discussed by a team. Constant performance feedback plays a key role to retain talent workers and ‘nudge’ people toward optimal work ethic behaviors. Also, this white paper process aligns with the bonus recognition. Once manager promotes anyone, they are asked to prepare a concise white paper about the employee's ‘superpowers.’ ius} Entrez votre réponse itpsforms. office. com/pagestesponsepage.aspx7id=5gONI6L2_0yDvoRSGMRT-XCJTWIKFLPOgjoKCdpRAMBURTZOOUSWVIVXNZowROKC.... 316o7iozr2026 15:08 Final exam Performance Management Course MS Auditing 2024 58 4. Key performance indicators Customer's sense of safety and trust is key to the success of Amazon -- one of the fastest growing and most innovative tech giants. To ensure its pioneering customer satisfaction, Amazon develops key performance indicators (KPIs) to measure performance of their independent third-party sellers. All sellers on the Amazon.com website must meet targets for every product they sell, precisely, “order defect rate: < 1%", "pre-fulfilment cancel rate < 2.5%", and "late shipment rate: < 4%". More strictly, failure to meet these KPls could result in the withdrawal of product selling. Besides, to declutter and to manage its warehouses more efficiently, Amazon launched new performance measurement metrics, called Inventory Performance Index (|P!). The IP! measures how well third-party merchants manage their inventory in Amazon's warehouses by synthesizing "three months of historical sales, inventory levels, and costs into a single metric,” ranging from 0 to 1,000. IPI below 350, between 350 and 500, and above 500 are ranked as poor, good, and great, respectively. Sellers with score lower than 350 could not rent unlimited storage anymore. Also, they are abandoned to send more goods to Amazon warehouses, and also have to pay monthly “overage fee.” 5. Budgeting Amazon secures a leading position in the race of fast delivery by applying artificial intelligence in its demand forecasting. Replacing time-series forecasting with artificial intelligence’s algorithms, the ‘anticipatory shipping’ technology pattern helps Amazon not only to store sufficient inventories in its warehouses but also to half-way deliver orders by the time customers actually click buy button. The technology is a major innovation that supports ‘Amazon moving from two-day shipping Amazon Prime to two-hour shipping Prime Now. Prime members in 50 cities globally, e.g. New York, Paris, and London, are able to get their household goods within two hours. For example, American prime members can get products from Wholefoods stores (now a subsidiary company of Amazon), delivered to their door within two hours for free or within an hour with a fee, and their French counterparts in the Paris area can get goods from Monoprix, Bio c’ Bon and Trauffaut bitpsforms. office. com/pagesitesponsepage.aspxid=5gONt6L2_0yDvoRSGMRT-XCJTWIKFLPOgjoKCdpRAMBURTZOOUSWVIVXNzowROKC.... 46orioaenzs 15.04 Final exam Perormance Management Course MS Aucting 2024 within two hours by just a click. Q Entrez votre réponse 59 6. Cost centers Amazon decreases its cost base by using robots in a number of its warehouses. The Kiva warehouse robots, which were once bought for $775 million, are expected to save Amazon up to $2.5 billion, or 22% of its operating costs. In addition, the robots can handle the same human job in warehouse in just a fourth time. While it takes humans an average of total 60 to 75 minutes to find, pick, and wrap an order, it takes Kiva only 15 minutes to do so. Also, tiny Kiva helps to save up to 50% inventory space, because it takes up less space. However, lowering cost base is always challenging when it comes to labor cost. In October 2018, Amazon announced that it would increase minimum wages for its US and UK workers to $15 and £ 9.50 following long-time critics, labor shortages, and changes in government regulation on both sides of the Atlantic. These floor salary limits benefit more than 350,000 permanent and seasonal workers in US and 40,000 ones in UK. In the US, unemployment rate falls to the generational low record following the economic growth rebound. In UK, it becomes harder for British companies to attract EU workers after the Brexit. Notably, the announcement came out within a couple weeks following tax rate increases in both US and UK. In US, a new legislation called Bezos Act was introduced to tax corporations for government subsidies, e.g. food stamps and healthcare benefits, that their low-wage employees receive. Also, in UK, a new digital tax on web companies was announced to put in place just a day before Amazon's announcement. After the announcement of increasing minimum wage, ‘Amazon said that it would now lobby to increase US nationwide minimum wage, which was set at $7.25 since 2009. q Entrez votre réponse bitpsforms. office. com/pagesitesponsepage.aspxid=5gONt6L2_0yDvoRSGMRT-XCJTWIFFLPOgjoKCdpRAMBURTZOOUSWVIVXNZowROKC.... 516o7iozr2026 15:08 Final exam Performance Management Course MS Auditing 2024 Hl Microsoft 365 Ce contenu est créé par le propritaire du formulaire, Les données que vous soumettez sont envoyées au propriétaire du formulaire, Microsoft n'est pas responsable des pratiques de confidentialité ou de sécurité de ses clients, y compris celles de ce propriétaire de formulaire, Ne donnez jamais votre mot de passe. 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