Question

1. What type of management control system would benefit Amazon in achieving their operation goals across the world?  How might your operational budgets need to be different based on culture in USA vs. Germany vs. Taiwan vs. Lithuania?  

2. You are hired to help Amazon with their global strategy formulation, which they need to complete in the next 5 years with at least 6% return.  Given the capital investments summaries below, what project should Amazon undertake and why?  What are some of the limitations of the analysis you should consider in your answer

	payback period	Return on investment	Present value	Interest rate of return
Germany	4.5 years	.03	.01	.085
Lithuania	18 months	.10	1.7	.05
Taiwaneses distributor	7 years	.059	-2.1	.045

3. Regarding global performance evaluation, Amazon prefers to use the “Balanced Scorecard” method.  Fill in the table below.  Why would this evaluation method be important for a globalized company like Amazon?

How do we look to shareholders? Financial Perspective Goals: Measures: How do customers see us? Customer Perspective Goals: Measures: At what must we excel? Internal Business Perspective Goals: Measures: Vision and Strategy Innovation and Learning Perspective Goals: Measures: Can we continue to improve and create value?

Answer 1

1.Amazon is an American conglomerate and it is a well established company so I think it need to adopt a better management planning system which is oriented towards organisation of human resources in a better way because Amazon is often accused of mismanagement of the human capital because they are adopting very aggressive targets and they are not treating the human capital appropriately and hence it can be seen that the employee turnover of this company is a very high.

I think better human control management system should be adopted and better planning management system should be adopted in order to maximize its operation in an effective way without exploiting the interest of the stakeholders so Amazon should be trying to keep the stakeholders interest in its overall perspective and then it should be deciding upon maximizing its overall business and structure which will be helpful for various categories of shareholders and employees.

I think operational budgets needed to be different for cultures which are adopted in United States of America and Germany and Taiwan because all these countries are having different beliefs and different cultures and Amazon should be trying to synchronise their products with the beliefs of these Nations and they should be highly familiar with their culture so that should target all these domestic customers to have an inclination towards this product as they will feel familiar with it so I think Amazon should be trying to incorporate these cultural benefits into its products so it can help itself maximize its overall profits from various countries after synchronising its goal with the products produced in that country.