TITLE OF PROJECT: COMPANY ANALYSIS REPORT ON AMAZON

NAME: MEDI PAVANI

COURSE: MBA I
ACADEMIC YEAR: 2022-2024
HALL TICKET: 22MG201B40
NAME OF SUPERVISOR: P.Kalpana

Signature of student: Signature of Guide:

College Seal

ANURAG UNIVERSITY
JODIMETLA, HYDERABAD-TS.
 DECLARATION:

I hereby declare and certify that the Project Report Entitled“A PROJECT ON
AMAZON COMPANY.” Submitted to the ANURAG UNIVERSITY,
Telangana State, Hyderabad-500036. By the student MS.M.PAVANI MBA 1ST
YEAR,
English Medium and Mentor P. KALPANA, Anurag University, Jodimetla,
Hyderabad is a Bonafide Record of Research work carried out by us during the
Academic Year 2022-2023.
 ACKNOWLEDGEMENT:

We would like to thank the people who extended their immense help to
complete our project work title.

“A PROJECT ON AMAZON COMPANY”

We would like to express our sincere gratitude to the present principal for
giving us the opportunity to do this project. We would also like to thank our
guide and lecturer. P. KALPANA for guiding us throughout this project work
and helping us out with his valuable suggestions for this project Finally we
sincerely thank our family and friends for our time, support and encouragement,
without whose cooperation my team study would have been incomplete.

Name: M.Pavani

Roll No: 22mg201B40

 CERTIFICATION:

This is to certify that the project report title “A PROJECT ON AMAZON

COMPANY” submitted in partial fulfilment for the award of MBA,
Autonomous University, Hyderabad was carried out by N.
Medi Pavni under our guidance. This has not been submitted to any
other University or Institution for the award of any MBA certificate.

Name and addresses of the Guide Signature of the guide

P. Kalpana

Anurag University
Jodimetla, Hyderabad
 INDEX
TABLE OF CONTENTS

CONTENTS PAGE.NO

I. Introduction
I.1 What is Amazon?
I.2 History and timeline of Amazon
I.3 Objectives
I.4 Need to study 1-4
I.5 Scope to study
I.6 Research methodology
I.7 Limitations of the study

II. Marketing
2.1 Introduction
2.2 Products they produce
2.3 Services provided by Amazon
2.4 Distribution channels Amazon use to face

III. Human resource management analysis

3.1 Introduction
3.2 Human resource strategy
3.3 Recruitment procedure
3.4 Purpose and function of HRM 18-21
3.5 HR policies
3.6 Conclusion

IV. Financial Analysis of Amazon

4.1 Introduction
4.2 Amazon and E-Commerce
4.3 Amazon innovation 22-25
4.4 Sustainable Practice in the company
4.5 Amazon financial statement and Analysis

V. FINDINGS, SUGGESTIONS, & CONCLUSIONS

APPENDICES 26-28
 CHAPTER-I
INTRODUCTION:

1.1 WHAT IS AMAZON?

Amazon (Amazon.com) is the world's largest online retailer and a prominent cloud service
provider.Originally started as an online bookselling company, Amazon has morphed into an
internet-based business enterprise that is largely focused on providing e-commerce, cloud
computing, digital streaming and artificial intelligence (AI) services.Following an Amazon- to-
buyer sales approach, the company offers a monumental product range and inventory,
enabling consumers to buy just about anything, including clothing, beauty supplies, gourmet
food, jewellery, books, movies, electronics, pet supplies, furniture, toys, garden supplies and
household goods.Headquartered in Seattle, Amazon has individual websites, software
development centres, customer service centres, data centres and fulfilment centres around the
world.

1.2 History and timeline of Amazon:

Amazon has come a long way since it was founded by Jeff Bezos in his garage in Bellevue,
Wash., on July 5, 1994.

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The following is a brief history and timeline of events that have evolved Amazon from its
humble beginnings to a multinational business empire.

The 1990s

Amazon officially opened for business as an online bookseller on July 16, 1995.
Originally, Bezos had incorporated the company as Cadabra but later changed the name
to Amazon. Bezos is said to have browsed a dictionary for a word beginning with A for
the
value of alphabetic placement. He selected the name Amazon because it was exotic and
different and as a reference to his plan for the company's size to reflect that of the
Amazon River, one of the largest rivers in the world. Since its inception, the company's
motto has always been "get big fast."

The 2000s

In 2005, Amazon Prime This membership-based service for Amazon customers offered
free two-day shipping within the contiguous U.S., as well as streaming, shopping and
reading benefits. According to Amazon's website, current Amazon Prime membership
rates are $14.99 a month or $139 per year.

1.3 OBJECTIVES:
1. Defining organisational structure and driving productivity.
2. To know the current position of the company.
3. Future decision making.
4. Identify high value audiences.
5. Increase customer loyalty.

1.4 NEED TO STUDY:

1. To understand about the AMAZON company program.
2. To know the benefits about Tata Steels Company.

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1.5 SCOPE TO STUDY:
The present study is confined to the leading units in the steel industry namely
AMAZON COMPANY. The study covers a period of five years from 2013-14 to
2016-17.This period is enough to cover both the short and medium terms fluctuations
and to set reliability.

1.6 RESEARCH METHODOLOGY:

Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. So, the research
methodology not only talks about the research methods but also considers the logic
behind the method used in the context of the research study.

1. Research Design:

Descriptive research is used in this study because it will ensure the minimization of bias
and maximisation of reliability of data collected. The researcher had to use facts and
information already available through financial statements of earlier years and analyse
these to make critical evaluation of the available material. Hence by making the type of
the research conducted to be both Descriptive and Analytical in nature.

From the study, the type of data to be collected and the procedure to be used for this
purpose were decided.

2. Data Collection:

The required data for the study are basically secondary in nature and the data are collected
from the audited reports of the company.

A) Secondary Data: Secondary data are those data, which is collected in different browsers.
In this project, Websites and Books have been used for gathering required information.

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B) Sources of Data: The sources of data are from the annual reports of the company from the
year 2013-2014 to 2016-2017.

3. Methods of Data Analysis:

a) Analytical Tool Applied: The study employs the following analytical tools:

The data collected were edited, classified and tabulated for analysis. The analytical tools used
in this study.

• Comparative Statement

• Graph

• Trend Percentage

• Ratio Analysis

1.7 LIMITATIONS:

○ Not highly successful at integrating firms with different work cultures.

○ Days inventory is high compared to the competitors – making the
company raise more capital to invest in the channel.
○ Investment in Research and Development is below the fastest growing
players in the industry.
○ The profitability ratio and Net Contribution % of Amazon are below the
industry.

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 CHAPTER-II

Marketing analysis report of amazon:

2.1 INTRODUCTION:

In the final quarter of 2021, Amazon reported net sales of over $138.41 billion. This seasonal
spike is typical of Amazon's quarterly reporting , but the growth is undeniable as this was the
company's highest quarter ever. The following quarter, Q1 2022, Amazon reported a $116.44
net sales, the highest Q1 on record. After a rocky Q3, things are looking up.

There is no doubt that the e-commerce retail giant continues to lead the way in e-commerce
growth. The Amazon marketing strategy we are familiar with today has evolved since it was
founded in 1994.

From startups and small businesses to large international businesses, we can all learn from
their focus on the customer, particularly at this time, testing market opportunities made
available by digital technology, and their focus on testing and analysis to improve results.

Their focus on customer experience put Amazon in the role of a thought leader in e-
commerce experience. However, whether due to diminished customer service, or increasing
customer expectations, or a mixture of the two, fueled by a global pandemic - notably, 2020
was the first time Amazon's ACSI customer satisfaction rating dropped below 80 since
launch. What's more, it dropped from 79 to 78 in 2021.

Currently, Forbes rates Amazon stock as 'unattractive' on their Q-Factor score, closing at
$2,082.00 on 24 May 2022.

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Reach: Amazon's initial business growth based on a detailed approach to SEO and AdWords
targeting millions of keywords.

Act: Creating clear and simple experiences through testing and learning.

Convert: Using personalization to make relevant recommendations and a clear checkout

process that many now imitate.

Engage: Amazon's customer-centric culture delights customers and keeps them coming back
for more.

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Looking to optimise your marketing strategy? We've got marketing solutions for your
e-commerce business. From startups to retail giants, our bespoke marketing training
empowers e-commerce marketers to plan, manage and optimise their marketing
strategies, with marketing tools proven to generate growth. Find out more.

2.2 Products they produce:

Amazon produces a variety of different products, including books, food, and beverages.
The company also provides services such as an online shopping mall and an e-commerce
marketplace where small businesses and entrepreneurs can sell goods. Here's the info on
their main products:

Books: Amazon carries more than 111 million items in its catalogue of books either as
hardcovers or paperbacks. They offer thousands of new releases and bestsellers from
dozens of major publishers as well as many smaller houses too. Customers often come to
Amazon to find sellers that offer unusual or difficult-to-find items that may

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not be found elsewhere and avoid buyers' remorse because they know just about
everything is covered by the shipping service warranty called "A-to-z Guarantee.
Amazon produces their own line of batteries, tablets, and e-readers. They also sell other
people's products along with producing themselves.

The Amazon company is an online seller that manufactures mostly electronic devices
such as computers. They are known for being competitive with great prices, the customer
service they provide is at no cost to them so they reap these profits by not having extra
costs in providing this service to the customers who purchase from them. This makes it a
win-win situation for both parties in the transaction because without this additional cost
then they are able to afford lower prices which mean better quality for less money.

Companies like Amazon thrive off of their ability to offer high-quality goods made
by other manufacturers at a reasonable price.

2.3 Services provided by Amazon:

1. Amazon (Amazon.com) — The largest Internet-based retailer in the world by total

sales and market capitalization.

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2. Amazon Advertising — Connect your brand to Amazon customers wherever they
share, read, listen, purchase, research and download online, across devices.
3. Amazon Alexa — Amazon’s voice control system.
4. Amazon Appstore — Amazon Appstore for Android is an app store for the Android
operating system operated by Amazon.com.
5. AmazonBasics — AmazonBasics offers quality and value on everyday products
delivered straight to your door.
6. Amazon Blink — Blink is the completely wireless home security camera that sends
motion-activated alerts & HD video to your smartphone.
7. Amazon Books — Amazon Books is a chain of retail bookstores owned by online
retailer Amazon.
8. Amazon Build It — A new Amazon program lets you weigh in on which devices
they build next.
9. Amazon Business — Everything you love about Amazon. For work.
10.Amazon Core 10 — Online shopping from a great selection at Clothing,Shoes
& Jewelry Store.
11.Amazon Dash Button — Amazon Dash is a consumer goods ordering servicewhich
uses a proprietary device for ordering goods over the Internet.
12.Amazon Drive — Get unlimited online storage to backup, protect and share photos,
videos and files from any device.
13.Amazon Echo — Amazon Echo is a hands-free speaker you control with yourvoice.
Echo connects to the Alexa Voice Service to play music, provide information, news,
sports scores, weather, and more—instantly. All you have to do is ask. Also check
out Echo Dot, Echo Dot Kids Edition.
14.Amazon Elements — Amazon Elements is a line of premium everyday
essentials exclusively available to Amazon Prime members.
15.Amazon Essentials — Online shopping from a great selection at Clothing &
Accessories Store.
16.Amazon Fashion — Buy Footwear, Clothing and Fashion Accessories onlinefor
Men, Women and kids at low prices in India.

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17.Amazon Fire OS — An Android-based operating system by Amazon for itsFire
Phone and Kindle Fire range of devices.
18.Amazon Fire Phone* — A 3D-enabled smartphone designed and developedby
Amazon.
19. Amazon Fire Tablet — A tablet designed and developed by Amazon.
20.Amazon Fire TV — Amazon Fire TV is a tiny box you connect to yourHDTV.
It’s the easiest way to enjoy over 250,000 TV episodes and movies on Netflix,
Amazon Instant Video, and HBO NOW, plus games, music, and more.
21.Amazon Fire TV Cube — Fire TV Cube is the first hands-free streaming media
player with Alexa.
22. Amazon Fresh — It is a grocery delivery service by Amazon.
23.Amazon Games — Amazon Games develops games that harness the power ofAWS and
Twitch to create bold, new game experiences.
24.Amazon GameOn — Easily share amazing moments, epic fails, tips andtricks
and participate in fun weekly Challenges.
25. Amazon Goodthreads — Incredible clothes at affordable prices.
26.Amazon Halo — Amazon Halo includes body composition, tone of voice
analysis, sleep & activity tracking, and more. Science-backed tools to help improve
how you sleep, move, sound and feel.
27.Amazon Handmade — Discover genuinely handcrafted products created by
Artisans around the world.
28.Amazon Happy Belly — Happy Belly offers quality food and beverage
favourites, all at friendly prices.
29.Amazon Home Services — Amazon Home Services is a new and simple way to buy
and schedule professional services such as furniture assembly, house cleaning, and
plumbing directly on Amazon.com.
30.Amazon Hub — Hub by Amazon is a comprehensive solution that frees youand
your staff from daily package management, from high-rise buildings to garden-style
apartments.

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31. Amazon Go — Amazon Go is a new kind of store with no checkout required.
32.Amazon Key — Amazon Key is a service that will facilitate in-home deliveryto
Prime members in 37 cities and surrounding areas, across the United States, with
more locations available over time.
33.Amazon Kindle — Amazon Kindle is a series of e-readers by Amazon.com that
enable users to browse, buy, download and read e-books, newspapers, magazinesand
other digital media via wireless networking to the Kindle Store.
34.Amazon Kindle Direct Publishing — Self-publish eBooks and paperbacksfor free
with Kindle Direct Publishing, and reach millions of readers on Amazon.
35.Amazon Launchpad — Amazon Launchpad offers online shopping of products
from startups, with a great selection of new technology, innovative gadgets,electronics,
wearable tech, workout, style, and home products from startups.
36.Amazon Local Shops — Local Shops on Amazon is a program that allowsany
store to register on Amazon and serve more customers from the local area.
37.Amazon Locker — Amazon Lockers are secure, self-service kiosks where
customers can pick up Amazon.com packages at a time and place that is convenient
for them.
38.Amazon Luna — Amazon Luna Amazon’s cloud gaming service where it’seasy to
play great games on devices you already own. No waiting for lengthy downloads
or updates — just play.
39.Amazon Mechanical Turk (MTurk.com) — An on-demand scalable
workforce.
40.Amazon Merch — Merch by Amazon makes it easy for you to create,
promote and market your branded merchandise.
41.Amazon Music Unlimited — Amazon Music Unlimited is a premium music
subscription service featuring tens of millions of songs and thousands of expert-
programmed playlists and stations.
42.Amazon Pay — Amazon Pay makes it simple for hundreds of millions of
customers around the globe to check-in and check out using information already
stored in their Amazon account.
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43.Amazon Pharmacy — Allows customers to complete an entire pharmacy
transaction on their desktop or mobile device through the Amazon App.

44.Amazon Prime — Enjoy fast free shipping, exclusive access to movies andTV
shows, ad-free music, unlimited photo storage, and Kindle books.
45.Amazon Prime Air — Amazon Prime Air is a future service that will deliver
packages up to five pounds in 30 minutes or less using small drones.
46.Amazon Prime Book Box — A subscription that delivers hand-picked
children’s books every 1, 2, or 3 months.
47.Amazon Prime Music — Ad-free and on-demand music service for AmazonPrime
members.
48.Amazon Prime Now — Prime Now offers household items and essentials youneed
every day plus the best of Amazon, with FREE 2-hour delivery.
49.Amazon Prime Pantry — Packages everyday (non-bulk) Non-perishablefood
grocery store items into a single box for delivery for a flat fee.
50.Amazon Prime Video — Enjoy exclusive Amazon Originals as well aspopular
movies and TV shows.
51.Amazon Prime Video Direct — Prime Video Direct helps content creators and
visual storytellers reach millions of Prime Video customers worldwide.
52.Amazon Publishing — Amazon Publishing is a leading trade publisher offiction,
nonfiction, and children’s books with a mission to empower outstanding
storytellers and connect them with readers worldwide.
53. 7dcAmazon Robotics (formerly Kiva Systems) — It’s all about robotics.
54.AmazonSmile — Amazon donates 0.5% of the price of your eligible
AmazonSmile purchases to the charitable organisation of your choice.
55. Amazon Storywriter — A cloud-based screenwriting app.
56.Amazon Studios — Amazon Studios is a subsidiary of Amazon that focuses on
developing television series, and distributing and producing films and comics from
online submissions and crowd-sourced feedback.

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57.Amazon Tap — A portable Bluetooth and Wi-Fi enabled speaker that givesyou
rich, full-range sound

58.Amazon Video Direct — Helping content creators and visual storytellersreach

millions of Amazon customers across hundreds of devices with the same
distribution options and delivery quality available to major motion picture and
television studios.
59.Amazon Vine — Amazon Vine is an internal service of Amazon.com that allows
manufacturers and publishers to receive reviews for their products on Amazon.
60. Amazon Wag — Amazon’s pet product brand.
61.Amazon Warehouse Deals — Deep discounts on open-box, and used
products from Amazon.
62.Amazon Web Services (AWS) — Amazon Web Services offers a suite ofcloud-
computing services that make up an on-demand computing platform.
63.Amazon Wickedly Prime — A new line of distinctive food and beverages,
available exclusively to Amazon Prime members.
64. Amazon Wireless — Cell phones with service powered by Amazon.com.
65.Amazon WorkDocs — Amazon WorkDocs is a fully managed, secure
enterprise storage and sharing service with strong administrative controls and
feedback capabilities that improve user productivity.
66.Amazon WorkSpaces — Amazon WorkSpaces is a fully managed, securedesktop
computing service which runs on the AWS cloud.
67.Amazon Your Garage — Find parts and accessories that fit your vehicle andask
other owners for tips and advice.
68.A9 — A9.com is a subsidiary of Amazon that develops search engine andsearch
advertising technology.
69.AbeBooks (AbeBooks.com) — Shop a vast selection of books, art and
collectibles from independent sellers around the world.
70.Alexa (Alexa.com) — An Amazon company that provides commercial webtraffic
data and analytics.
71.Audible.com (Audible.com) — Audible sells digital audiobooks, radio andTV
programs, and audio versions of magazines and newspapers.
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72.AWS Cloud9 — AWS Cloud9 is a cloud-based integrated development
environment (IDE) that lets you write, run, and debug your code with just a browser

73.Book Depository — A UK-based online book seller with a large catalogueoffered

with free shipping to over 160 countries.
74.Box Office Mojo — Box Office Mojo tracks box office revenue in a
systematic, algorithmic way, and publishes the data on its website.
75.Brilliance Audio — Publishes audio books for consumers, resellers, and
librarians in the United States.
76. Diapers* (Diapers.com)— An online specialty retailer for baby products.
77.Digital Photography Review — It’s all about digital cameras and digital
photography.
78.Goodreads (Goodreads.com) — Share book recommendations with yourfriends,
join book clubs, answer trivia.
79.IMDb (IMDb.com) — Find showtimes, watch trailers, browse photos, trackyour
Watchlist and rate your favourite movies and TV shows.
80.Junglee* — Junglee.com is an online marketplace by Amazon designed
uniquely for India.
81. LOVEFiLM* — A DVD rental and streaming video on demand service.
82.Ring (Ring.com) — Ring lets you monitor every corner of your property withVideo
Doorbells and security cameras.
83.Shopbop — Shopbop offers a comprehensive, hand-picked collection of apparel
and accessories from the industry’s foremost contemporary and designerlabels.
84. Souq (Souq.com) — It’s the largest e-commerce site in the Arab world.
85. Twitch (Twitch.tv) — A live streaming video platform by Amazon.
86.Whole Foods Market — A supermarket chain that specialises in selling food
products without artificial preservatives, colours, flavours, sweeteners, and
hydrogenated fats.
87.Woot — Daily Deals for Electronics, Computers, Home, Tools, Garden,Sport,
Accessories, Kids, Shirt, Wine, & more.
88. Zappos (Zappos.com) — An online shoe and clothing shop
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2.4 Distribution channels Amazon use to face:

Amazon’s business model follows both a B2C and B2-B distribution strategy. Indeed, on the
one hand, its e-commerce platform is consumer-facing, providing millions of products to
billions of users around the world. At the same time, its e-commerce platform is also used by
other businesses, called third-party stores, to sell their own products on top of Amazon.

Amazon's business model follows both a B2C and B2-B distribution strategy. Indeed, on the
one hand, its e-commerce platform is consumer-facing, providing millions of products to
billions of users around the world.

Amazon uses both distribution channels. It uses a direct distribution channel when it sells
products to consumers directly.

Distribution channels include wholesalers, retailers, distributors, and the Internet. In a

direct distribution channel, the manufacturer sells directly to the consumer. Indirect channels
involve multiple intermediaries before the product ends up in the hands of the consumer.

How many channels does Amazon have?

Amazon Prime Prime Video standalone

membership

Monthly price $14.99 $8.99

Annual price $139 N/A

Number of channels 100+ 100+

Popular channels Paramount, HBO, Paramount, HBO,

SHOWTIME SHOWTIME

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Amazon uses a variety of traditional marketing strategies, including print and digital
advertising, when promoting their products. The company also uses sales promotions,
product placement, and pay-per-click (PPC) campaigns.

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 CHAPTER-III
Analysis of Human Resource Management on Amazon:
3.1 Introduction:
The Human Resource Department of any company is an indispensable and important part of
its overall operational strategy (Daley, 2012). It has the potential ability of directly impacting
the results in outcomes of the company and can also make a significant difference between
the failure and success of the organizational strategies that are the objectives of an
organization, both in the short as well as long term. It is discussed in this amazon human
resource management that an efficient Human Resource Department should have the ability
of accessing, forecasting, predicting, designing and implementing its strategies directly in
sync with the objectives and strategies of the business of the company (Noe, et. Al., 2017).
Such ability of the HR department is directly synced with the business goals for a coherent
and mutual environment. Such a department can also entirely fail at one or more steps of
creating instability and an imbalance within the business organization. In the present
recession based economic cycle, it is crucial for the Human Resource Department for acting
in the form of a strategic partner of the organization, for making sure that the short term and
long term goals and visions of the company from the perspectives of the human capital and
finance are perfectly harmonious and aligned together (Bratton and Gold, 2017). At the same
time, an effective Human Resource Department can also help in significant and accurate
forecasting as well scanning of the environment and utilize its resources and knowledge for
setting near-exhausting scenarios for the company. This assignment deals with the HR
practices of Amazon and Microsoft corporation.

3.2 Human resource strategy:

According to this human resources management in microsoft performance cultural model has
been adopted by the Microsoft Corporation as the best approach for driving its success. All the
important human metrics have been measured and categorized in accordance with the growth
pyramid. The amount of investment made by the company in the internal and external surveys is
quite substantial and can raise the company in the form of a leader in this context across the
whole industry. In the contemporary times of organizational restructuring and reception, human
resource is expected by businesses for understanding and manpower needs of the organization,

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helping in the development of strategic plans in the context of the employees, identification of
issues and problems related to talent before the business of the organization is impacted by them
and very importantly, identification of new and emerging business strategies. At the Microsoft
Corporation, the Human Resource Department is made responsible and accountable for the
maximization of the value of its manpower asset for driving the success of the organization. The
core functions of human resource managers, and the practices and procedures of the same have
been divided among the structures of the vertical tower for making sure that the flow of
information is easier and transparent. The functions which are independently independent also
help the business needs of Microsoft to be more closely measured and aligned from the
perspective of a functional unit. The management of Microsoft often refers to its organizational
culture as facilitative. The company has made a significant amount of investment towards the
development of its workers and employees and provides a high amount of support for the
optimum career growth of its workforce.

3.3 Recruitment procedure:

A set of procedures which is utilized by the human resource management of an organization for
managing the workers and obtaining the best potential out of them refers to Workforce planning
(Othman, Bhuiyan and Gouw, 2012). The primary goal of workforce planning of an organisation
is ensuring its success in the long run and realising maximum amount of profits and revenue from
its operations. Amazon utilises operational as well as strategic planning of workforce for
achieving its long term as well as short term objectives (Adogla and Collins, 2014). The planning
of the strategic workforce of the company helps in forecasting and planning for its workers in a
way which helps in ensuring that the right talents are hired at the right time for performing the
appropriate duties and responsibilities for achieving the organisational objectives and goals
(Armstrong and Taylor, 2014).

3.4 Purpose and function of HRM:In this amazon human resource management it is
discussed that human resource management plays a significant role in the success of any business
organisation of a company.

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Amazon understands the significance of having the necessary talent for performing various
responsibilities and duties for the success of the company. Amazon's strategic objectives are
closely aligned to the strategic objectives of the HR by the human resource management function
of the firm. The company believes that employees and workers are one of the greatest
contributing factors towards the success of any organization. In the case of Amazon, companies
committed towards improving and enhancing the skills of the workforce by means of efficient
development and training programs. As such, the self actualization and job satisfaction of the
employees in staff members would be enhanced. It has been discussed in this human resource
management in amazon company primary functions of human resource at Amazon includes
selection and recruitment, training and development, compensation management, maintenance of
good relationship among employees and ensuring legal and ethical compliance (McDonald and
Hite, 2015). These functions help in promoting a workplace environment for the employees that
is productive and helps the employees and workers in performing up to their potential. The
human resource functions of the company have held the employees in maintaining good attitude
and moral standards within the company. The purpose of the human resource management at
Amazon is promoting cordial and self respect working relationships with the workers and
employees. The HR managers of the company work towards the satisfaction of the individual
needs and requirements of all the workers by providing them with a coordinating environment.
The workplace environment of any business should help in promoting the group as well as
individual performances within the organization.

3.5 HR Policies:

Amazon's HR policy is designed to protect both the company and its employees. Amazon
is an equal-opportunity employer and does not discriminate against any applicant or
employee. They are committed to providing a safe and secure work environment for all
employees.

3.6 Conclusion:

It can be concluded from the human resources management in amazon human resource
management that an efficient human resource department not only acts in the form of a business
partner to the company, but also assists in the shaping of the overall business and operational
strategy of the firm. The manner in which the human resource practices and strategies have been

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intertwined at Amazon as well as Microsoft is an instance of how businesses of giant
organizations are run with common vision and objectives and how these organizations make
money for their employees and investors. The amount of investment which has been made by
Amazon and Microsoft for their employees and how well the cultures of work are aligned to the
business strategies of the two organizations by their human resource managers is clear from the
results which have been posted by both the companies, year after year. These are one of those
companies which are envied as well as admired by businesses, investors and even ardent rivals.
The recent changes and alterations which have taken place at both the companies, sometime due
to recession, indicate towards a move or plan which could potentially change the ways the
companies are looked at. The outcomes of these activities can be clearly observed only once the
economy is placed back in upward motion. However, in the current time period, the principles
and practices which Amazon and Microsoft stand by, can be acknowledged and admired in true
earnest. The loss of reputation and public image is a result of layoff exercises, however, a
business organization which aims at standing and surviving through such harsh times, must do
something significant and necessary which others might not have previously. HRM assignments
are being prepared by our human resource assignment help experts from top universities which
let us to provide you a reliable assignment help online service.

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 CHAPTER-IV

Financial Analysis of Amazon:

4.1 Introduction:
Amazon has been synonymous with. e-commerce from the get-go. The company originated
from Seattle Washington started as a bookseller but throughout the time it grew out to be the
most popular web-based service in the world. Amazon was created by Jeff Bezos, with the
internet becoming more accessible in the 90s, Bezos believed that there is a gigantic market
to capitalise on, even though he didn’t have any prior experience or knowledge about the
internet. (Krishnamurthy, 2002) But upon learning, Bezos had a vision that saw the world
interacting, shopping, and doing transactions virtually through E-Commerce.
(Krishnamurthy, 2002) Bezos’s Amazon went online in 1995, the company's march to focus
on the online market turned out to be a huge success. A consistent incline in revenue, going
from $150 million in 1997 to $3.1 Billion in 2001. (Krishnamurthy, 2002) The high
percentage of revenue and growth is due to the company innovation with their services, and
their ever wide expansion of subsidiaries platforms. Amazon continues to adapt and evolve
till this day. Henceforward in this report, we will discuss in detail how Amazon tackled e -
commerce initially and what was their business strategy that led to their success. Then we
will look at Amazon's financial statement; their mergers and acquisitions, and the ratio
analysis. Ratio analysis is critical in determining company liquidity and profitability (Al
Ahbabi and Nobanee, 2020).

4.2 Amazon and E-commerce:

We have established that Amazon is one of the first organizations to start an online retail
business. But how does this online business function and operate? A study made by Sameer
Kumar, Jessica Eidem, and Diana Noriega looks out how Amazon.com works in terms of
technicality. Amazon.com provides a variety of services to customers from music to books to
electronics. It acts as an online supermarket and has been accredited as the most reliable
service by customers worldwide. Part of Amazon's success is due to its operating system.

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Amazon has a sorting system where they divide their consumers into 3 categories.
1)Customer: This group is attended by regular users who are there to shop online. This
system allows users to see the available prices, sales, and the expected delivery dates for the
products. This option also allows the users to subscribe to Amazon Prime. A prime member
will have more frequent discounts and will get the two-day shipping option for free2)Seller
Customers: This option allows the user to sell their product through the Amazon website.
There is a distribution service for users who are about to sell their products. This group gets
revenue for its product in the form of a fixed fee.
3)Developer Customers: Developer customer is for the group who are actively developing
and creating products. Amazon provides a platform for these users through their technology
infrastructure and Amazon application software.

4.3 Amazon Innovations:

Bezos knows that people love Amazon service but realize that people won’t stay loyal to
Amazon if the service becomes stale. Bezos states that “Our customers are loyal to us right
up until the second somebody offers them a better service.” Bezos fully recognizes this and
believes it encourages the company to stay motivated and be creative in their services to keep
the consumers engaged. Products and services like “Alexa” the voice control artificial
intelligence. Audible the online bookstore where you can listen to the audio version rather
than reading. Twitch the online gaming streaming service. These are just a few of the many
services that Amazon provides. (Robischon, 2017). Amazon also innovates in different
productions, as they also partake in manufacture. One of the biggest Amazon manufactures is
Amazon Prime Air. This massive production is a drone delivery service, it is a work in
progress; currently being tested in the United States and the United Kingdom. However, once
it's launched, the goal is to operate a GPS to fly packages to the customers' location. No more
than 30 minutes after the order has been placed.
4.4 Sustainable practice in the Company:
Some scholars believe that there is a positive correlation between sustainable business
practices with sustainable development and financial management. Financial management
plays a role in developing a great deal for the financial growth of a company. The research
explains how an organization can have a sustainable approach in their operations, and how
sustainability can add value to the organization.

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4.5 Amazon Financial Statement and Analysis:
From this point on, the report will focus on Amazon's financial statement. How well the
company is performing year by year. The report will analyze Amazon's ups and downs from
2016 to 2019.
Data Methodology:
Table 1: Financial Data (Amazon)

Item/Year 2019 2018 2017 2016

Current 96,334,000 75,101,000 60,197,000 45,781,000

Assets
Current 87,812,000 68,391,000 57,883,000 43,816,000

Liabilities
Inventories 20,497,000 17,174,000 16,047,000 11,461,000

Cash 55,021,000 41,250,000 30,986,000 25,981,000

Receivables 20,816,000 16,677,000 13,164,000 8,339,000

Total Assets 225,248,000 162,648,000 131,310,000 83,402,000

Total 163,188,000 119,099,000 103,601,000 64,117,000

Liabilities
Total Equity 62,060,000 43,549,000 27,709,000 19,285,000

Sales 280,522,000 232,887,000 177,866,000 135,987,000

Cost of Goods 205,768,000 173,183,000 137,183,000 105,884,000

Sold
EBIT 14,541,000 12,421,000 4,106,000 4,186,000

Interest 1,600,000 1,417,000 848,000 484,000

Net Income 11,588,000 10,073,000 3,033,000 2,371,000

We collected the data here from Yahoo Finance from 2016 till 2019. All items in Table 1
were available in the Income statement and the balance sheet. As you can see every factor
and item shows an increase from one year to another. The figure illustrates the growth
Amazon displayed from year to year. However, one can’t help but notice that even though the
assets in every year are high, the net income is shockingly low.

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Results and Discussion:

The table below provides the ratios of current, quick, and cash. The current ratio reveals if
companies can pay their debts. Any current ratio value that is less than 1 indicates the
company might struggle to pay off its debts. Amazon from 2016 to 2019 has a current ratio
above 1. While the quick ratio shows company capabilities to pay for its current liabilities
without worrying about selling its inventory. The higher the ratio the better for the company.
The cash ratio shows if the company can look out and deliver their short-term requirement
like paying for the salary. 0.5 to 1 is the preferred cash ratio. Amazon has shown in the table
between those numbers every year.
Figure 1: Current Ratio of Amazon

As discussed above, these graphs are associated with the ratios. All current ratios above 1
indicate the company is in good condition to pay out its debts. The ideal quick ratio should be
1:1, unfortunately, Amazon in every year is less than 1. Indicating Amazon couldn’t be able
to pay out its full liabilities in the short term. Whereas they are in good condition in Cash
ratio, placed between 0.5 and. 0.6.Inventory turnover between 4 to 6 is considered the ideal
ratio of turnover. Below 4 indicate a company might be overstocking. In Amazon cases, they
have a high inventory level, meaning that they have good management skills. (Wilkinson,
2013). Receivable turnover shows how well the company is collecting their debts. A higher
ratio means companies are collecting their debt faster. Interestingly, Amazon has a ratio
decrease; from 16.3 in 2016 to 13.5 in 2019. Total asset turnover is the company's integration
of its assets to generate sales. The ratio for total asset turnover for Amazon in the 4 years.

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The return on equity is the company's ability to generate income from their equity. A ratio
from 0.15 to 0.20 is considered to be good. Amazon has managed to get that in both 2018 and
2019. Return on Assets is related to how much success the company is having based on
assets. The year 2018 has the highest return on assets with 6%. The profit margin is when
sales revenue is greater than the cost of production. With Amazon's growth, we can see 2018
and 2019 have a higher ratio than in 2016 and 2017.

4.6 Conclusion:
To sum up, Amazon has been the top online retailer due to how they operate their strategy
efficiently. Ever since the move to online, Amazon has seen consistent increases year by
year. However, the low net income and the increased liability is alarming to many. But I
believe that is due to Amazon's commitment to investing in long-term projects and acquiring
big enterprises. More expenses come when there are more obligations and responsibilities,
but in the long term, Amazon can make up for the expected losses. There is no denying the
progress Amazon has made, with the new project plans ahead and new manufacturing
production they are creating, Amazon has shown no sign of slowing down.

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 CHAPTER-V

FINDINGS, SUGGESTIONS AND CONCLUSION

FINDINGS:
▪ 99% of respondents know about AMAZON.
▪ More than 50% of respondents came to know about AMAZON through friends, family, and
relatives.
▪ It is one of the TOP Steel Companies.
▪ AMAZON has manufacturing operations in 26 countries.
▪ It is a multinational company.
▪ It is one of the leading steel companies of India.

SUGGESTIONS:
● All operational and related activities should be performed efficiently and effectively.
● Both companies have to utilise their capital assets in a proper way so that they have to
purchase less capital assets in the coming year.
● The stability of the Amazon has declined from base year 2017 to the current year
2020.
● Amazon have sound solvency position but the company have to avail on the benefit of
trading on equity and has to use cheaper debt capital.
● The government intervention in promoting ‘Make in India’ in public procurement has
resulted in Indian companies garnering over Rs 50 billion in projects.
Conclusion:
Amazon is a company that has grown exponentially from their eBookstore beginnings.
The internet boom certainly contributed to the success of Amazon. However, the company
has found ways to stay innovative and relevant; Amazon has used their internet marketplace
to help consumers and third party retailers buy and sell goods conveniently from the comfort
of home.The company has a goal of same day delivery, that way buying something on
Amazon will have no drawbacks. Amazon Prime Air will make it possible to send items out
of the fulfilment centre the same day without a third party delivery service which will be cut
down.

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BIBLIOGRAPHY:
Following books are referred for carrying out the project:-
1. Amitabha Basu, Financial Accounts, Volume – 3, Edition - August2017, accounting ratios
for financial statement analysis, page – 829 – 835.
2. Annual reports of AMAZON.
Following websites are referred:-
1. https://www.ibef.org/industry/steel.aspx
2. http://www.tatasteel.com/
3. http://www.jindalsteelpower.com/
4. https://www.wikipedia.org/
5. https://money.rediff.com/index.html
6.http://www.business-standard.com/article/companies/make-inindia-in-public-procurement-
companies-bag-rs-50-bn-govt-contracts-118040301360_1.html

Reference:
Robischon. (2017). “Why Amazon Is The World’s Most Innovative Company Of 2017”
https://publicaffairs-sme.com/PatriotFamily/wp-
content/uploads/2015/01/Why_Amazon_is_most_innovative_company_13_Feb_2017.pdf
Edward and Lincoln. (2018). “Porter Analysis: A Business Strategy of Amazon.com Through
a Value Chain and Comparative Advantage Analysis of Amazon's Trademarks and
Intangibles” https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3234380
“Parry. (2008). “Jeff Bezos and Amazon.Com”
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1280551
Hong, Bhattacharyya and Geis. (2012). “The Role of M&A in market Convergence: Amazon,
Apple, Google and Microsoft” https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2165444
Kumar, Eidem and Perdomo. (2012). “Clash of the e‐ commerce titans: A new paradigm for
consumer purchase process improvement” https://www-emerald-com.adu-lib-
database.idm.oclc.org/insight/content/doi/10.1108/17410401211263872/full/html

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APPENDICES:

BALANCE SHEET OF AMAZON COMPANY:

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