Question

Amazon: Identify the main stakeholder groups in your company. What claims do they place on the company? How is the company trying to satisfy those claims, and is it doing a good job? Why or why not?

Answer 1

The main stakeholder groups in the company are:

1. Shareholders
2. Employees
3. Suppliers
4. Customers

The claims placed by these stakeholder groups on the company are:

1. Shareholders- The shareholders are the group who provides fund for the company to operate and in return they want growth on their investment. In the case of Amazon Jeff Bezos, Andrew R. Jassy, Jeffrey M. Blackburn and John Seely Brown are the main shareholders. These people have invested a huge sum of money in the company and in return they want a positive growth on the money they have invested.
2. Employees- If funds are blood then employees are veins of the organization. Amazon has a huge workforce and these stakeholders want to have a fair pay, proper working hours, job safety etc. from the company. Employees are the ones on whom most of the success and failure of organization depends.
3. Suppliers- Since Amazon is a giant in e-retailing business it has to depend on suppliers who provides the goods Amazon sells, these group of stakeholders have claims on payments due on Amazon, fair price of the goods supplied by them and a relationship of mutual trust and understanding.
4. Customers- One of the key stakeholders are customers for any company, these are the people which purchases goods and services from any company. This group of stakeholders demand quality in the products and services from Amazon, fair pricing, after sales service, support after sales etc.

The company is trying to satisfy these claims in the following way:

The journey of Amazon as a company from its beginning till now is excellent. The investors in this company have benefited a lot as this company kept growing and is growing rapidly. The investors have got huge returns on the money invested by them. The company has continuously provided excellent pay and job security to its employees, the number of people working at Amazon is still growing and the overall work environment at Amazon is positive.

From its beginning the suppliers trusted Amazon as the size of Amazon kept increasing and the quantum of business they used to get kept increasing, Amazon is timely in paying its suppliers and this group of stakeholder is also satisfied.

The company is doing a very good job in satisfying the claim of its stakeholders. The very reason to prove this fact is the size of the organization which is increasing day by day, the presence and reach of Amazon is increasing throughout the world and the number of customers is also increasing.

Jeff Bezos, one of the key investors in the company very recently became world's richest man, the market share of Amazon in US as well as other countries like India is growing.

It can be concluded from all of the above facts that Amazon is successful in satisfying the claims of its major stakeholder groups.