Analyzing Amazon using 7S Model

C OLL AP SE

The 7-S framework was first developed by two consultants, Tom Peters and Robert H.
Waterman who were working at McKinsey and Co in the late 1970s. (Peters & Waterman,
1980). In the Chapter 8, Amason talks about how the 7s Model connects the strategy with
various levels of implementation. (Amason, 2011)According to the McKinsey website, the 7s
model is a watershed model that addresses the critical role of co-ordination rather than
structure in organizational effectiveness. (Enduring Ideas: The 7-S Framework, 2008)
The framework consists of 7 elements and are divided in to hard elements and soft elements.
The hard elements of the framework would be Strategy, Structure and Systems. The Soft
elements would be Style, Shared Values, Skills and Staff.
The company I choose to apply the &-S Model is Amazon.
Strategy: The strategy of the company is to be able to sell everything on the website.
Amazon has increased its customer base by building and maintaining robust websites. The
company does business in 14 countries and has a separate domain for every country. The
company adopts country specific strategies and implements them. A lot of Amazons success
is attributed to the companys customer service which the company trains and maintains
efficiently. The company not only targets consumers but also sellers. Third party sellers are
encouraged to sell on the Amazon Marketplace. This increases the catalogue and choice of
products available to the customers. Amazon also boasts a great technological capabilities. Its
cloud services are a huge hit and also provide web service to customers.
Structure: Amazon is a well-structured company. Its hierarchy is a set of vertical lines with
the CEO- Jeff Bezos at the very top cascading authority and commands from top to bottom.
They have a series of levels denoting the persons current position in the company. For
example an L7 would be a Site Head at any of the companys site. An L1would be someone
who works at the warehouse. These hierarchies are maintained the same throughout
Amazons various Geographic locations throughout the world.
Systems: Amazon boasts of well-organized work place where both formal and informal
systems. All decisions are communicated from the top down via emails, verbally or in the
monthly magazine for employees. Amazon also has employee groups where employees with

similar interests can bond and discuss or do what the like. Amazon makes sure that
communicating important decisions is a priority as they do not want to lose the trust of its
employees. Amazon also has a set of 14 leadership principles to guide employees at all times.
Shared Values: One thing that everyone at Amazon talks about at Amazon is Customer
Obsession. It is also one of the companys Leadership Principles. (Leadership Principles,
n.d.)The companys vision is to become the earths most customer centric company. This also
drives a Customer First attitude at the workplace. The 14 Leadership principles are used as a
guiding light to make decisions or overcome hurdles at the work place.
Style: Amazons leadership follows the CEO, Jeff Bezos. Jeff Bezos is an extremely
customer oriented and result focused. He sets very high goals for himself and expects all the
employees to do the same. He is a task-oriented and transactional leader and is also known as
pragmatist style of leadership.. Though one might feel that the management style is
democratic it is in fact autocratic and hierarchical. (Murphy, 2015)
Staff: Amazon boasts of a workforce of 230,000 employees. These employees are spread
across all the Amazon sites across the world. The employees have set job descriptions and
responsibilities. However, thinking out of the box is encouraged and employees are free to
take up additional projects. The staff is well compensated and has a good leave policy.
(Amazon, 2016)
Skill: Amazons one of the leadership principles is Hire the Best and keep them well trained.
All employees are given job roles according to their skill set. Employees are also given
mandatory trainings. Amazon also holds workshops on various things which the employees
are free to attend. Top level managers are also very skilled and are great change motivators.
Some of the major skills Amazon possesses as an organization is its innovative approach and
readiness to adopt change.

References
Amason, A. C. (2011). Strategic Management from Theory to Practice.
Amazon. (2016, May). Retrieved from Forbes:
http://www.forbes.com/companies/amazon/
Enduring Ideas: The 7-S Framework. (2008). McKinsey Quarterly.

Leadership Principles. (n.d.). Retrieved from Amazon:

https://www.amazon.jobs/principles
Murphy, M. (2015). Would Your Leadership Style Fit At Amazon? Forbes.
Peters, T., & Waterman, R. H. (1980). In Search of Excellence.