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2.

Amazon is the American electronic commerce and cloud computing company based in Seattle, Washington, Founded by Jeff
Bezos in July 1994, Amazon is the second largest Internet retailer
after China’s Alibaba Group. Let us have a look at the Amazon Organizational Structure.

3. It is a vertical and hierarchical approach. Such a top-down model seems to be rigid that cannot be changed easily. But
Amazon has handled that effectively. The top-level executives take the main decisions making it look more like a
bureaucratic structure. Amazon was started as a simple lean structure but then turned into the hierarchical one.

Organizational Structure
1. At the top lies Jeffrey Bezos(Jeff Bezos), the President, Chairman, and CEO of Amazon.
2. Then there is a group of following senior employees:

3. This little team of top executives is directly answerable to Jeff Bezos. Along with Jeff, this team sets the goals for
the company, solves the problems, and shapes the future of the company.
4. These members are the heads of their respective departments
5. These highly experienced executives are not replaced regularly. They mostly continue to be in the same position
even for decades.
6. In this way, ‘diversification’ has played a vital role in enlarging the business.
7. Still, the size of a team has to be limited.

4. The Three Primary Components Of Amazon’s


Organizational Structure
1. Geographic Divisions And Subdivisions

 only two geographical divisions – International and North America whereas, the company is popular globally.

2. Global Hierarchy

 Jeff Bezos is at the topmost position and a team of particular members work directly under him.
 These important team members further affect the flow of the business.

3. Global Groups On The Basis Of Function

 Every major business consists of a senior manager such as the CEO or SVP and a committed team working under
the senior manager.
 This may also help the company to set up its operations effectively in new markets.

Following Some Main Function-Based Groups:  Finance.


 Corporate Affairs

 Accounting.
 Business Development.
5. The size of the teams working on the projects should
 Legal and Secretariat. be limited enough that the team can be fed only with
 Amazon Web Services two pizzas. The size of the team is limited to up to 8
 Consumer Business or 9 people.
 CEO office. This strategy is said to be the secret of Amazon’s
success that makes the meetings more effective.
Amazon was founded in July 1994 by a business tycoon named Jeff Bezos. The journey of this huge enterprise started
from a garage. It was meant to sell books online. Music and books had much demand at that time. However, its growth
has been irresistible since then.
Here comes the ‘Two Pizza Rule.’

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