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Module 2 Case Study

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30 views18 pages

Module 2 Case Study

Uploaded by

walvekaraishu2903
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Module 2 Case Study

What is the organisational


structure of Amazon?
History
• Online retailer Amazon has grown to be the biggest provider
worldwide in the field of e-commerce.
• Amazon revenues grew from $8490 million USD in 2005 to $232,887
million USD in 2018.
• The success of Amazon emerged from the rapid rate of digitisation
and was also influenced by its organisational structure.
Definition : Organisational structure
• The process of creating the company's organisational structure to
make it align with its culture and objectives is called organisational
design.
• Organisations are aimed to be designed in such a way that they
function as effectively and efficiently as possible.
• Amazon follows a tall hierarchical corporate structure.
• That means the organisation implements top-down control elements
used on their workforce, working at different units and levels.
Amazon Organisational structure
• There are three key components of Amazon's organisational structure:
• A global hierarchy - This means that Amazon's CEO Jeff Bezos makes strategic
decisions and has control over the entire organisation. All senior executives have
to report directly to the CEO, which allows Jeff Bezos to be in direct control of all
the organisation in terms of its functions, product lines, divisions, and service.
• Global groups based on functions - Amazon structures the organisation in a way
that senior-level executives make up an independent group which in turn are in
charge of each specific function. The direct control and division of each function
ensure smooth and effective operations.
• Geographical divisions have their subdivisions - Amazon's organisational
structure incorporates geographical divisions based on physical locations. This
structure assists the company in addressing and solving issues that occur in
particular geographical regions.
Netflix organisational structure
• The success of Netflix is partially influenced by the company's
organisational structure, which encourages innovation.
• Netflix's organizational structure has functional groups for the
organisation's online and offline operations.
• The company also implements geographical divisions to oversee
regional groups and markets.
• Finally, Netflix's structure includes product and operational divisions.
NetFix Organization Structure
Functional

Geographical
Netflix's organisational structure
Important elements of Netflix aś in Figure:
• Netflix has functional groups for the organization's online and offline
operations;
• The organisation incorporates geographical divisions to manage
various regional markets;
• Netflix incorporates divisions in product and operational types.
Functional groups
• Functional groups are divided into different business functions, and each
function has a senior officer responsible for managing it
The key functional groups of Netflix are:
• CEO
• Legal
• Talent
• Finance
• Product
• Content
• Communications
Geographical divisions
• Geographical divisions - This means that the organisational structure
allows for strategic decision making in different geographical regions.
• The geographical divisions remain controlled by the cooperative
structure, yet they are allowed to make changes and adjustments to
serve a customer base in a particular geographical location.
The segments' geographical divisions at Netflix are:
• Domestic streaming
• International streaming
Divisions for products and operations
• The Netflix organizational structure has divisions responsible for
different outputs including original programming and other content.
• The 'other content' division manages content by working with other
content producers and distributors to license their content and make
it available on the Netflix platform.
Functional Organization structure
• Examples of organisations that follow functional structures are Amazon
and Netflix, as these organisations are structured based on their
functions.
Amazon has functional divisions with regard to its:
• Web services
• Worldwide consumer functions, etc.
In Netflix case, functional divisions are:
• Legal/product
• Content
• Talent
• Finance, etc.
General example of a functional
organisational structure.
Examples of different organisational
structures.
1. Hierarchical organisational structure
2. Flat or horizontal organisational structure
3. Matrix organisational structure
Hierarchical organisational structure
Flat or horizontal organisational structure
Matrix organisational structure

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