Management Decision-Making and Control in Amazon and Alibaba

 

Focus on management decision-making and control in two companies, American corporation Amazon.com, Inc. and Chinese company Alibaba Group Holding Limited.
Decision-making and control are two vital, and often interlinked, functions of international management. Strategic evaluation and control are the processes of determining the effectiveness of a given strategy in achieving the organizational objectives and taking corrective actions whenever required. Control can be exercised through formulation of contingency strategies and a crisis management team.
For your discussion, use the Decision-Making Process (stages 1-9) outlined in the textbook (Fig 11-1) and this Module’s content. Visit the corporate websites of two companies, Amazon and Alibaba, and examine what these firms are doing relating to the strategic evaluation and control process definition in the process above.
For example:
• Stage 1: What is one problem perception for each company?
• Stage 2: What is the problem identification for each company?
• Repeat for stages 3-9.
What overall assumptions can you make using this decision-making process?

 

Sample Solution

s of the people involved in the organization, Lush does an excellent job of creating an environment for employee satisfaction. Consequently, customers tend to have high regard for in-store experiences. Furthermore, the Lush company’s motto is “Happy People, Happy Soap” (Lush, 2018). As a result, the organization has built all of their operations and goals around the idea of both being happy and improving the lives of others around them. The organization most definitely has developed the commitment and satisfaction of employees into a core competency. Furthermore, a lower turnover rate allows the organization to better develop employees, save money on recruitment costs, and improve customer satisfaction (Zuber, 1997).

Understanding the Lush SWOT Analysis

In terms of a Strengths, Weaknesses, Opportunities, and Threats analysis (SWOT) (Figure 1), Lush appears to be in a both complex and opportunistic position. Some noted strengths the organization has includes products, brand ambassadors, sustainability, and its handmade concept (Lush, 2018), (Saltzman, 2018). Weaknesses impacting the Lush company includes high retailing costs and low sale volumes (Trotter, 2017). Opportunities for the brand are the growing organic movement and fear of harmful chemicals in products (Lush, 2018). Growing threats to the organization are competition and brand loyalty (Loeb, 2017). All of these factors will definitely play a role in the development of the Lush company in the near future.

The Lush company’s strengths of products, brand ambassadors, sustainability, and handmade products most definitely have placed it in a leadership position in the industry. To begin, Lush’s products offered are unlike any other in the industry (Jones & Manktelow, 2017). As a result, there is no direct competition in terms of product alternatives. Another strength the organization has is its vast numbers of brand ambassadors through organic marketing. Because of their strong orientation to social media and use of younger individuals in terms of advertising, they have successfully grown their market share while spending nothing on advertising (Jones & Manktelow, 2017). Estée Lauder, one of Lush’s competitors, spent 965 million USD on advertising in 2017 (Statistica, 2018). As a result, Lush has quite the comparative advantage in terms of advertising costs resulting from organic marketing. Sustainability is a growing concern for younger generations. Specifically, as generation Z begins to get more involved in the consumer space, they are beginning to ask more of businesses in terms of sustainable operations (Sulima, 2018). Lush is doing an excellent job of taking advantage throu

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