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Table of Contents
1.0 Introduction...........................................................................................................................2
3.0 Analysis................................................................................................................................4
3.4 Relationship between Amazon.com development and Jeff Bezos’ Leadership Style...........7
References......................................................................................................................................10
1.0 Introduction
To date, Amazon may be regarded as the most customer-centric corporation in the world, and
Bezos is credited with changing the way customers across the world perceive e-commerce
purchasing. Bezos is regarded as a brilliant business leader in terms of value generation and
profitability, and Amazon has seen tremendous development under his direction. Newspapers
like the Times, Fortune, and Wall Street Journal have emphasized Jeff Bezos' leadership qualities
as a visionary and charismatic one (Cheung, Burns, Sinclair, & Sliter, 2017). Jeff Bezos'
leadership style will be examined in depth in this research. The next section will examine Jeff
Bezos' leadership style and how it compares to other leadership theories and concepts. According
to several media reports, Jeff Bezos has implemented an organizational culture within the firm,
which will be discussed next. This study will examine the relationship between Amazon's culture
and Jeff Bezos' leadership style and well-being to determine what implications can be derived
Nowadays, leadership is a hot issue explored from several viewpoints and, at the same time,
symbolizes a highly prestigious spot. There is a wealth of literature that speculates on the traits
required to reach such a prestigious position. While it's true that circumstances aren't always
accelerate progress. To fully understand this idea, we must first define it (leadership) and then
put it into perspective by looking at Jeff Bezos and Amazon as a case study.
Strategic change may be described as the "capacity to foresee and envisage" and "maintain and
empower others to create this as necessary" (Oviedo & Bursztyn, 2016). To understand what
makes a "good leader," one must first understand that there are several leadership styles and
methods. If you look in the academic literature, you'll find that James M. Burns, a leader studies
specialist, separated leadership into two opposed types in 1978 (Greve & Song, 2017). These are
transactional leadership and transformational leadership. In the first instance, leaders are looking
for a cooperative connection based on an exchange from their followers, and this relationship is
people are motivated to go beyond their interests to reach a higher goal (Blanco, Sena, Mesquita,
Nowadays, businesses choose the transformational leadership style to foster a greater degree of
growth, and this can even result in a competitive advantage. To make this work, a softer
leadership style and the associated abilities must be utilized. The reason for this is that, as the
definition provided above shows, leadership involves the capacity to empower those around you.
consistency, thoughtfulness, and contribution are all part of this leadership strategy (Tran, 2016).
Leaders don't need to have all of these qualities, but it's a good start if you have some of them.
This may be compared to Sam Walton, the man who founded Wal-Mart.
It is said that transformational leaders are those who bring about "ethical [and] attitudinal [as
well as] process alterations to followers" (Frederico, Zuanon, & De Marco Jr, 2016) and
therefore affect the creativity and performance of the employee; Jeff Bezos is attempting to make
Some businesses have implemented the organizational agility approach to deal with the
speed" (Chen, 2017). This is due to research showing that using a more methodical approach
might result in a greater success rate. Research from the Massachusetts Institute of Technology
(MIT) shows that agile businesses grow sales 37% quicker and earn 30% more profit than non-
3.0 Analysis
Noronha, & Pinto, 2017)characterizes Bezos as a micromanager who has high standards but is
unconcerned about what other people think. Transactional leadership is a word that describes this
kind of management. Transactional leaders, according to (Mergen & Ozbilgin, 2021), exert
influence because their subordinates have a vested interest in doing what their superiors desire.
Transactional leaders are also known to be highly effective in attaining operational objectives
and results, as well as in developing firms that survive in the current era of global competition.
Along with his transactional leadership skills, Bezos is also a change agent eager to
outcomes while also inspiring follower innovation. Transformational leaders are recognized for
presenting a compelling future vision that captures the attention and loyalty of their followers.
Transformational leaders motivate their teams to go above and beyond by connecting the
company's long-term aim with the values of its employees. Bezos has unquestionably excelled in
this area. This can be observed from the success of Amazon.com, which is probably due to his
ability to imagine, inspire and create even when rivals and investors did not believe his
Amazon's CEO demonstrates that he adheres to the seven transformative leadership principles by
Simplification: As an example, his team (business) has known their direction since they were
formed in their drive to become Earth's most customer-centric firm (Andrés, 2017), and he not
Motivation: Gaining support and loyalty is also reflected in their well-known internal slogan,
"Work hard. Have a great time. "Leave a lasting impression." He was known for his ability to
encourage and drive his employees without becoming excessively attached to them personally,
Innovation: Amazon's fundamental values include "nurturing enthusiasm for creation," one of
four key principles. As a result, Jeff Bezos strives to "create a culture of creativity and creation."
Mobilization: When confronted with turbulence "at the distribution centers, he came to rely on a
young executive called Jeff Wilke, whose intellectual and occasionally impatient managerial
style mirrored his own" is a job fit for a transformational leader. The renowned Carnegie's idea
of building the right team and motivating and equipping competent members of the team is also
Preparation: Instilling an "infinite student" mindset in his employees is a hallmark of Jeff Bezos'
leadership style.
Determination: To reach the objective, one must have the perseverance to go to considerable
lengths to get there. Then the employees may easily see that hard effort does pay off. Amazon's
business style is infused with Jeff Bezos's "charismatic" transformational leadership qualities.
Work Environment: The working atmosphere at Amazon may be quite demanding. Amazon, is
one of the most demanding and rigid workplaces in the high-tech industry. Amazon, according to
(Head, 2017), has the second-highest employee turnover of all Fortune 500 firms. Amazon
employees have also said that CEO Jeff Bezos berates them and expresses his opinions
frequently, never missing an opportunity to remind anybody who challenges him that he is the
CEO of the firm. As a result, Bezos' transactional management approach may lead to dissatisfied
Amazon employees.
Company Growth: Shares of Amazon.com are worth a lot of money and are expected to rise in
value in the future. Citi Bank raised Amazon’s stock from “Neutral' to 'Buy' on January 13th,
2015”. This shows that Wall Street's financial experts are confident in Amazon's growth
prospects soon, and the firm is making progress. It's important to keep in mind that most share
“upgrades focus on the top line rather than the bottom line”.
The firm also claimed again in customers and an increase in Prime Members in the final quarter
of 2014. According to (Charry, et al., 2018), despite the price hike, “Amazon gained 10 million
new Prime members and saw a 25% rise in sales. The firm continues to expand admirably in
terms of revenues, client base, and reach, which may be attributable to Bezos's vision and drive”.
Although Amazon's revenues and sales have grown and Wall Street's monetary outlook has
improved, Amazon has been dropping money for years. Rendering to (Athayde, Silva-Lugo,
Schmink, Kaiabi, & Heckenberger, 2017), despite a 23% rise in revenue, Amazon recorded a
loss of $123 million. A thorough investigation may reveal that Bezos' management approach is
to blame for both the company's losses and the sales and consumer growth that have occurred.
3.4 Relationship between Amazon.com development and Jeff Bezos’ Leadership Style
Amazon's development over the previous two decades has been made possible by Bezos'
transformative leadership style. With Bezos' vision and devotion, the firm evolved from a book
retailer to a retail force that threatens both online and offline competitors (Cheung, Burns,
Sinclair, & Sliter, 2017). “Indeed, his thirst for change and innovation is a leadership trait that
has resulted in huge revenue and sales for Amazon as well as a devoted consumer base”. Despite
his admirable efforts, Bezos' transactional leadership style may have contributed to a difficult
workplace where staff lacks the confidence to warn the extraordinary leader about his irrational
company development ambitions. According to (Tran, 2016), Amazon's enormous losses despite
revenue and sales growth might be attributed to the company's insatiable need for extending its
already massive portfolio. Bezos's desire to grow at any cost and a rapid pace is probably the
depending on how people measure effective leadership. Amazon has become one of the most
recognizable brands in the world because of Bezos' unconventional management style, which
defies standard leadership ideas in the area of innovation. To summarize, Jeff Bezos is a task-
revenues, sales, and stock price research because of its management style, but it falls short when
it comes to having a pleasant workplace and making a profit. It's important to remember that
Bezos' leadership style displayed both positive and bad qualities. Bezos is a brilliant and
compelling leader, however, he is as customer-focused as he can tolerate the human limits of his
workers, and thus it is an extremely unsympathetic leadership style. Because of Bezos' exacting
standards and callous work methods, the company may develop an exploitative culture in which
workers are expected to perform according to their ideals. Bezos should tone down his
transactional leadership style to promote a more pleasant and adaptable work atmosphere at
Amazon.
Recommendations
Amazon has neglected to create a good company culture in its quest to boost productivity,
revenues, be more nimble, and anticipate the requirements of customers. “To increase
productivity, decrease employee turnover, and increase employee engagement, Bezos should
focus on developing a transformational leadership style, creating a culture that also puts the
focus on employees, and aligning the organization's structure with these new values and
cultures” (Chen, 2017). Increased earnings and a better reputation will follow as a result. In the
end, everything comes down to culture as the problem that has to be solved. it's a critical
component of a company's success since it affects how well it performs and how efficiently it
Amazon CEO Jeff Bezos places the needs of his customers ahead of those of his workers. As a
result, a culture develops in which employees are treated with contempt and subjected to
unreasonable expectations. Despite its financial success and year-over-year growth, Amazon has
low levels of employee happiness and engagement. Amazon's income may increase by investing
in its culture and people, which is connected to productivity. Amazon's founder and CEO, Jeff
Bezos, is a visionary leader who has led Amazon to its current position. Other leaders have
learned from Bezon's creative initiatives (Oviedo & Bursztyn, 2016). It has been demonstrated
that former Amazon workers continue Bezos' beliefs. Many CEOs have been able to transfer and
build on Amazon's success and culture, having started as workers there. What these CEOs have
done well is to keep the good things and get rid of the bad. Amazon should learn from its ex-
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