BUS362: Formulate the Application of Organisational Strategy of Amazon by Assessing the Strategy: IT-Enabled Business Transformation Assignment, SUSS, Singapore

Case study

The textbook used: Pearlson et al. 2019, 7th edition Refer to “Case Study 1-1 Amazon in 2019?” on page 30-31 of the textbook. Answer the following questions.

Question 1

(a) Formulate the application of the organisational strategy of Amazon by assessing the strategy (red or blue ocean) adopted and examining how IS can be used to support the various organisation designs by explaining the organisational strategy as a managerial levers framework with respect to the two categories of organisational design variables (Organisational variables and Control variables). To do this, answer each of the three sub-questions below (providing case facts to back up your answer).

(i) Organisational Variables – Formal Reporting Relationship

Beyond the case study, also assume that decisions across Amazon are made fast. Amazon CEO would like to capitalise on the expertise of employees in decision-making.

Identify (with justification) the formal reporting structure (i.e., hierarchical, flat, matrix or networked). Demonstrate how IS can be used to support the formal reporting structure for Amazon.

(ii) Control Variables – Data

Describe the facts (data) collected, stored, and used by Amazon.

(iii) Strategy – Red Ocean or Blue Ocean

Assess if Amazon is using a red or blue ocean strategy. Explain your answer.

(b) Propose how Amazon can employ information resources—categorised by IT assets and IT capabilities—as strategic tools to facilitate strategic advantage. To do this, discuss the following type of information resource for Amazon supported with case facts:

• IT assets: Provide one example of IS infrastructure.
• IT capabilities: Provide one example of technical skills, one example of IT management skills and one example of relationship skills.

(c) Appraise the strategic use of information resources by determining which of Porter’s generic strategies does Amazon use for its online products. Justify your answer.