Jeff Bezos - CEO Amazon

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The document discusses Jeff Bezos' leadership style and how he has led Amazon to success. It covers his background, leadership principles, organizational culture and how he overcomes challenges.

The document lists the 14 fundamental leadership principles of Amazon on page 8.

The document discusses some features of Amazon's organizational culture on page 10, including empowered employees and customer obsession.

JEFF BEZOS - CEO AMAZON

SRH Hochschule North-Rhine Westphalia

Department of Technology & Economy

Project Report

Winter Semester 2021-2022

Supervisor: Prof. Haridas Pamlke

Subject: Leadership

TOPIC – JEFF BEZOS - CEO AMAZON

Mr.Rohit Shinde
Name
Mr.Kaustubh Pawar
Mr. Shubham Ghogare
Mr. Mukundh Shivakumar
Mr. Karthik Venugopal

City Hamm, Germany

11015321
Matriculation Number
11015333
11015335
11015344
11015671

Semester III

11015321@stud.srhk.de
E-Mail
11015333@stud.srhk.de
11015335@stud.srhk.de
11015344@stud.srhk.de
11015671@stud.srhk.de
JEFF BEZOS - CEO AMAZON

Table of Content

Table of Content.......................................................................................................1

Abbreviations...........................................................................................................2

List of Figures..........................................................................................................2

Abstract....................................................................................................................3

1. Introduction....................................................................................................4

2. Who is Jeff Bezos?.........................................................................................5

2.1. Background of Jeff Bezos.......................................................................6

3. 14 Fundamental Leadership Principles by Amazon.......................................8

4. Organizational Culture & Jeff Bezos Leadership Style…………………....10

4.1. Features of Amazon’s Organizational Culture…………………….…..13

4.2. Leadership Styles ……………………………………………………...14

4.3. Skills & Competences …………………………………………………15

4.4. Team Management by Jeff Bezos…………………………..….………15

5. Challenges & Failures....................................................................................17

5.1. How to Overcome Challenges by Jeff Bezos.........................................19

5.2. Stepping Out of Negative Prespective....................................................20

6. Managing Chanhges in the World ................................................................22

6.1. Five Key Business Lessons from CEO Jeff Bezos.................................23

7. Conclusion......................................................................................................26

8. Bibliography...................................................................................................27

Declaration of Work......................................................................................29

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JEFF BEZOS - CEO AMAZON

Abbreviations:

AWS: Amazon Web Services


EC2: Elastic Compute Cloud
S3: Simple Storage Service
CEO: Chief Exceuctive Officer

List of Figures:

Figure 1: Amazon CEO Jeff Bezos


Figure 2: Jeff Bezos - The Leader in One Picture

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JEFF BEZOS - CEO AMAZON

Abstract:

In today’s society, to be a successful entrepreneur you must be able to adapt to the ever-
changing market conditions. To do this, it is important to utilize your resources to their
maximum potential to gain the best results possible. As such, an entrepreneur needs to
have very good leadership skills to mobilize his team to achieve the company's vision.
This paper aims to highlight the importance of leadership for organizational success in a
business environment. In specific, the paper is focused on the transformational kind of
leadership employed by well-known entrepreneur Jeff Bezos who has managed to grow
Amazon to the purpose that it is considered the largest online seller globally. The
methodology used is qualitative and is based on the research of secondary sources such
as articles, books, and interviews. The findings show that transformational leadership
could be a key solution that matches the needs of corporations finding themselves
having not only to strive to survive however to flourish during this fast-paced, ever-
changing environment of the business world.

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JEFF BEZOS - CEO AMAZON

1. Introduction:

Leadership study has a lengthy history in the wide and current field of leadership. It is a
field that encompasses different approaches and numerous various styles (Toma and
Marinescu, 2013; Toma, et al., 2016; Toma, et al., 2019). As the world is changing at a
very fast pace and as new challenges occur within the environment, companies,
institutions, researchers, and other stakeholders are confronted with an easy yet
complicated problem: finding out solutions to those challenges with adaptability
because the focal point and the right person for the task from the leadership’s
perspective.
This paper is dealing with the study of transformational leadership and how it has been
applied in practice, The concept of leadership is a common topic nowadays, studied
from multiple perspectives and, at the same time, represents a very desirable status.
Many people showed grit and have this powerful driver to work hard to gain those
skills, whilst others are naturally talented in this field and have relied on their instincts.
Whether one is born a leader or one can become one is still, one thing that can affirm
about leadership is that it is closely linked to change and progress. Under the right
circumstances, leadership can bring about growth at a fast and efficient rate. To explore
this concept in-depth, for this paper, it is important to start by defining the concept
(leadership), describing Jeff Bezos, and then placing it in context by approaching the
case of Jeff Bezos and Amazon.
"The ability to predict, visualize, develop contingency plans, and encourage others to
develop strategic change as needed" is how leadership is defined.

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JEFF BEZOS - CEO AMAZON

2. Who Is Jeff Bezos?

Recognized as the pioneer of e-commerce, Jeff Bezos founded Amazon in July 1994,
selecting Seattle for its abundance of technical talent, as Microsoft was within the area.
Mackenzie Scott was also a key figure in the company's inception, having driven across
the nation with Bezos to get it off the ground. Scott applied for a researcher coordinator
role at D. E. Shaw & Co., a statistical investment company in New York City, while she
was still in school to "cover expenses as concentrating on her novels." When Bezos,
then a vice president of the company, interviewed her, he reached Scott.

Figure 1: Amazon CEO Jeff Bezos

Image Source: Circei, 2016

Amazon went public in May 1997. It started selling music and videos in 1998 and
began international operations by getting online sellers of books within the United
Kingdom and Germany. The subsequent year, it began selling products including video
games, consumer electronics, home improvement products, software, games, and toys.
In 2002 it launched Amazon Web Services (AWS), that provided information on
website popularity, Internet traffic patterns, and different statistics for marketers and
developers. In 2006, it grew its AWS portfolio when Elastic Compute Cloud (EC2), that
rented computer processing power, get Simple Storage Service (S3), and rented data
storage via the web, also became available. That year, Amazon also started Fulfilment
by Amazon which allowed individuals and small companies to sell items through the

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JEFF BEZOS - CEO AMAZON

company's Internet site. In year 2012, Amazon bought Kiva Systems to modify its
inventory management business. In 2017, it bought literally the entire foods
supermarket chain.
Jeff Bezos recognizes the importance of an impactful core company culture for
economic success, and his vision has undoubtedly achieved the desired outcomes for
him. The odds are stacked in his favour. In 2019, Amazon surpassed Apple as one of the
most profitable firm in B2B marketing, with a market capitalization of over $1 trillion.
His achievement has astounded the world, and it is imperative that the world learns his
guiding principles that paved the way for his success. Individuals from all over the
world are looking for the Amazon leadership principles today. These 14 key principles
from Amazon are game changers since they span it all from interview questions to
group interaction and corporate culture.

Amazon.com is immensely proud of the leadership ideals that have guided their
meteoric rise to professional fame. Who would ever have believed that a company that
started out selling books online 23 years ago has evolved to be the next fifth largest
retailer in The United States? Amazon leadership principles, led by Jeff Bezos, are a set
of guidelines for making a corporation work. They are, nevertheless, universally
applicable to any business or leader.

2.1. Background of Jeff Bezos

One inspirational leader and a very successful business entrepreneur and all time
favorite are Jeff Bezos, the owner and founding father of Amazon, Washington Post,
and Blue Origin Company. The pioneer of entrepreneurship and inventor of the online
e-commerce ideation, Jeff Bezos is that the leader and founding father of the famed e-
commerce company named Amazon, Company Executive of The Washington Post, and
the maker of Blue Origin, the astronomical investigation organization. Jeff Bezos
became one of the world’s wealthiest and richest leaders from his well known business
ventures.

Bezos was born in New Mexico in 1964; he loved and admired computers from birth.
Hence, he studied Electrical Engineering and Computer Science in the Princeton
University. At the end of his bachelor’s, he got employed in Wall Street. In 1990, Jeff
became the youngest senior vice president in D.E. Shaw, a well-known investment
company. After working for 4 years, Bezos left his job and set up Amazon.com, an
online bookstore. This e-commerce bookstore became one amongst internet’s biggest
financial sources and also the most outstanding success story on the internet. In 2013,
Bezos got The Washington Post, and later in 2017, Amazon got Whole Foods too under
its name. Amazon.com was set up by Bezos on July 16, 1995, think about the wavy
South American river. Before launching the website, three hundred acquaintances were

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JEFF BEZOS - CEO AMAZON

at the start tested to see its performance and effectiveness. (Jeff Bezos Leadership Style
and Management Analysis, 2022)

Jeff Bezos entrepreneurial story is like many we have heard, starting small with the
passion, commitment, zeal, and resilience to see their big dreams come true. His
entrepreneurial journey started from a very unlucky place, in his parents’ garage. He
launched Amazon in the year of 1995 as an web book store with a some workers as
members of his start-up team. Shortly when the launch of Amazon, Bezos began to see
profits in his business, a bit more than he expected. He recorded sales of $20000 in a
week only after 2 months of beginning of the business. Therefore, he was able to spread
his business specified that it gained public recognition in 1997. Like most people would
think of any start-up, people began to question if amazon could survive beyond the firs
few years. But, Jeff Bezos and his team were relentless. Thus, the business continued to
expand and outpaced its opponents. As an innovative entrepreneur, Jeff Bezos never
stopped looking for opportunities to expand the business and look for new ways to offer
unique services to his market. This is one of the many reasons Amazon is the huge
success it is today. (Jeff Bezos Leadership Style, 2022)

Considering Bezos’s leadership style, we will recognized that his leadership styles are
exceptional and distinctive. Jeff Bezos leadership style based on the Autocratic
Leadership Style, as he check and control everything in person. Additionally, he also
owns a Strategic Leadership Style through that he gave exceptional techniques and
different approaches which create his organization prosperous and profitable. From this
leadership style, he will decide the long term of the business and verify the standards
and objectives. Ever since he has several employees to work with, also follows a Cross-
Cultural Leadership Style, wherever he motivates both by his charisma, personality, and
zeal and visions of his business. Hence, his leadership styles change as per the need of
the circumstances and situations. (Jeff Bezos Leadership Style and Management
Analysis, 2022)

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JEFF BEZOS - CEO AMAZON

3. 14 Fundamental Leadership Principles by Amazon

These fundamental 14 principles are the values that govern the corporate and its staff.
Amazon tests its staff and candidates on the principles relevant to the role. Read on to
know everything concerning the amazon leadership principles impressed by number of
the foremost valuable leadership styles.

1. Customer Obsession – 100% customer-centric-


Leaders start with the customer and work backward from there. They are constantly
working to gain and keep the trust of our customers. Leaders keep an eye on the
competition, but the focus is always on the customer.

2. Ownership – taking responsibility-


Leaders are the owners of the company. They plan for the long term and do not sacrifice
long-term value for short-term results. They act in the interest of the entire company,
not just in the interest of their team. They never say, "that's just not my responsibility."

3. Invent and Simplify - New concepts and ideas-


Amazon employees challenge themselves and their teams to be innovative, imaginative,
and always find ways to simplify things. They know their environment, search
everywhere for new ideas, and are not influenced by whether innovations were
developed within or outside their team. When we tackle something new, we accept that
we may be misunderstood for a long time.

4. Are Right, A Lot - Making the right decision-


Our leaders make the right decisions. They have excellent judgment and good
instincts. They seek different perspectives and never stop challenging their own beliefs.

5. Learn and Be Curious - Stay curious and never stop learning-


For leaders, the learning process is never complete because they want to constantly
improve. They encounter new possibilities with curiosity, are open-minded, and always
explore them.

6. Hire and Develop the Best – Hire and develop the best employees-
Leaders increase the bar with every hire and promotion. They recognize exceptional
talent and support transfer and development within the company Leaders groom leaders
of tomorrow and treat one’s duty as coaches sincerely. In the interest of our employees,
we develop mechanisms for career advancement, such as Career Choice.

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JEFF BEZOS - CEO AMAZON

7. Insist on the Highest Standards – Always apply the highest standards-


Leaders set relentlessly high standards — many may find those standards
disproportionately high. Leaders continually raise the bar and motivate their teams to
develop high-quality products, services, and processes. Leaders ensure that mistakes do
not spread widely and that their cause is finally eliminated.

8. Think Big – Think in a different way-


If you think small, you cannot achieve big goals. Leaders develop and communicate a
bold vision and inspire great results. They think differently and outside the box, looking
for new ways to serve customers everywhere.

9. Bias for Action – Act actively-


Acting quickly is important in business. Many decisions and actions are revocable and
do not need to be extensively investigated in advance. We value calculated risk-taking.

10. Frugality - Targeted use of resources-


Do more with less. Limiting yourself can also fuel resourcefulness, encourage financial
independence, and innovation. We don't applaud leaders who only increase headcount,
budget, or fixed costs.

11. Build and Earn Trust-


Leaders are careful listeners, speak honestly, and treat those around them with
respect. They openly criticize themselves, even when it seems uncomfortable or
embarrassing. Leaders know that they and their team are not infallible. They measure
themselves and their teams against the best.

12. Dive Deep – getting to the bottom of things-


Leaders work at all levels and never lose sight of the details. You regularly check
decisions and processes and react sceptically when expectations, intuition, and results
are not in line. No task is small for them.

13. Have Backbone, Disagree and Commit –


Leaders need to respectfully challenge decisions they don't agree with, even if it's
uncomfortable or tiring. Leaders have beliefs and stick to them. They do not accept
compromises if they are only made for the benefit of community cohesion. Once a
decision has been made, they fully support it.

14. Deliver Results -


Leaders focus on the key drivers of their business and deliver results of the right quality
and on time. Even if they face setbacks, they rise to the challenge and never give up.

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JEFF BEZOS - CEO AMAZON

4. Organizational Culture And Jeff Bezos's Leadership Style


To what extent does Amazon.com, Inc's success be accredited to its's organizational
culture and Jeff Bezos's leadership style?
Amazon has an extremely positive and welcoming organizational culture along with the
effective leadership style of Jeff Bezos which has led to the success of the company.
Organizational culture motivates the human resources of the company to give their best
efforts towards excellent customer services and customer satisfaction. CEO Jeff has
inculcated a warn culture by injecting his values and using a mix of Authoritarian and
democratic leadership styles which has led to the success of the company. Human
resources are the most important asset of every organization, and Amazon's strong
organizational culture has aided in the most efficient use of its human resource
resources.
The visionary leadership style of Jeff has inducted the long-term values in the
employees of Amazon. Amazon’s organizational culture can be depicted in the rituals,
stories, behavior, communication, style, workplace practices, celebrations, and dress
code of the employees and management. An understanding of the organizational culture
and leadership style of Jeff Bezos is the unexplored side of Amazon. Amazon surely has
a different culture and unique leadership style which is not very common in the
industry.
We will use the below 3 tools to answer the question ‘To what extent does Amazon.com,
Inc’s success is accredited to its's organizational culture and Jeff Bezos's leadership
style?

I. Mintzberg’s management Roles of managers- This approach will aid in the


evaluation of Jeff Bezos' leadership and management abilities.

A. The Interpersonal Role- The interpersonal role includes the role of a


Figurehead, Leader, and Liaison.

i. Figurehead: Jeff Bezos’s role as a figurehead is quite amazing. An example


is staffing at Amazon. Hiring is done based on the Bar Raiser
Program which aims at hiring candidates who can raise the customer
experience. Bar raisers are the interviewers from Amazon who are trained
and then nominated and then selected for the role of interviewer. They are
usually not from the same business area in which the candidate is applying
this enables him to be fair in identifying and suggesting the best suitable
candidates with the required KSAO. This gives fair chance for hiring to all.
Employees have the option of selecting a program of career choices that
enables them to go after the passion of their life or make a change in their
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JEFF BEZOS - CEO AMAZON

career by sending the employee for training, workshops, and university


sessions.
ii. Leader: Jeff Bezos’s role as a leader is excellent. He has adopted autocratic
leadership along with charismatic leadership. He compulsorily puts faith in
his employees and guides them in the right direction but does not do spoon-
feeding for the employee. The below-mentioned leadership quote says that a
‘person should not be proud of the gifts that he receives from others but
instead be proud of what he has achieved because of his hard work because
hard work was his choice’.
iii. Liaison: He should be able to communicate effectively with the internal and
external stakeholders of the organization including consumers, shareholders,
media, government officials, etc.
iv. Jeff Bezos’s role as a liaison- He writes letters to the company’s
shareholders, coordinates with the government ministries for getting
important permissions makes announcements in media about new products
and services of Amazon, and also gives interviews and updates to media.

B. Informational Role- As a part of the informational role, the manager must


perform three roles- monitor role, disseminator role, and spokesperson role.

i. Monitor- He monitors the tasks done by the employees and ensures that all
the employees meet the goals in time, the performance of the employee is as
per the expectations if the performance is low then take corrective measures
to improve it by sending the employee for training.
ii. Jeff Bezos Monitoring Style- He believes that his managers should monitor
and accept external business changes. He believes in the personal
monitoring of his project teams and ensures that the bar of employee
performance is raised every year.
iii. Disseminator- The manager is responsible to communicate important
information, collecting information, and disseminating it to the concerned
people. Jeff Bezos’s role as a disseminator is fabulous in giving structured
and useful information to his employees and teams. He believes that no
matter how high you reach in your career it is important to be in touch with
people who you are serving in the market.
iv. Spokesperson- He is the spokesperson for the company who makes
important announcements and declarations officially on behalf of the
organization.
v. Jeff Bezos Role As A Spokesperson- He has made all the important
announcements like the launch of e-books sale in 1995, compact discs in
1998, cameras and FMCG products sale in 2000, Amazon prime service in
2005, amazon web services that rented the computing power and database
storage to small business in 2006. Amazon video service in 2006, Kindle e-

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JEFF BEZOS - CEO AMAZON

book reader in 2007, buys Zappos the e-commerce shoes retailer in 2009,
kindle fire in 2011, Amazon Echo the first smart speakers in 2015, the
whole food chain in 2017and plan to buy online pharmacy in 2018-19. Jeff
Bezos announced a new $2 billion fund for philanthropic efforts called The
Day One Fund.

C. Decisional Role- The manager must perform the following duties-act as an


entrepreneur, disturbance handler, resource allocator, and negotiator.

i. Jeff Bezos Is A Risk-Taker Entrepreneur - He took a risk of starting the


e-commerce business in 1992 when no one had an idea about it. All the
products and services of Amazon are the child of his brain. The
organizational structure and company vision and mission are decided by
him. AMAZON SCOUT, for example, is an automated parcel delivery
device service supplied by the corporation that uses automated equipment to
safely transport parcels. All scout machines will automatically follow the
delivery route but will be accompanied by an employee at first.
ii. Jeff Bezos Role As Disturbance Handler - He believes that handling
different opinions are a part of the day to day business, one should listen to
it and take decisions, In 1995, a book publisher informed him that Amazon
did not grasp the retail sector effectively and that this would affect their
sales but Jeff had a different opinion and said that the publisher had
misunderstood Amazon’s vision which aimed at making money not by
selling products but by making customer take a decision of purchase.
iii. Negotiator- He is an effective negotiator which can be seen in his decision
regarding the payment of Employees at Amazon. He gave 15%pay to
employees to be a leader. Since 2018 Amazon has been in negotiation with
various cities like Dallas, Crystal City, Virginia, and New York City to
decide the location of its new headquarter, and in the run and Amazon is
deciding the terms one-sided because whichever city they will choose it will
lead to the creation of 40000 white collar jobs and a 4 billion $ infusion in
the local economy, All the cities are trying to attract amazon by offering
generous benefits. it is a one-sided negotiation won by amazon in all
scenarios.

II. Blake and Moutons Managerial Grid model of Leadership- This model will
be beneficial in determining Jeff Bezos' leadership style and determining
whether it is successful.

III. Charles Handy’s Cultural Model- The cultural model will assist in the analysis
of Amazon's organizational culture and the factors that have an impact on the
organizational culture.

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JEFF BEZOS - CEO AMAZON

➢ Charles Handy’ S Organizational Culture Models


• Power culture
• Role culture
• Task culture
• Person culture

4.1. Features Of Amazon’s Organizational Culture:

• CEO Jeff Bezos has defined Amazon’s culture as a “gladiator culture” which
clearly defines the goals for each employee and ensures they meet them. A
high standard of work is the tool by which Amazon managers drive their
teams to deliver ever-increasing levels of service to customers. Amazon has
succeeded because of its evidence-based single, unified force that combines
the internal culture and its external brand.
• The internal culture nurtures HR innovation and the performance-driven work
environment that encourages the employees to innovate in rendering
outstanding and continuously improving customer experience and its brand
identity is based on providing an innovative customer experience.
• An important feature of amazon’s culture is the single-minded focus of all the
employees on excellence in customer services this feature has made the
company one of the most desired companies in the world in 2019.
• The company is an excellent example of Brand Culture Fusion which means
the full integration of the external brand image and the internal corporate
culture.
• Jeff Bezos’s core philosophy of Two Pizza Rule shows the corporate culture
which means every team should be small enough to be fed with 2 pizzas has
made the company agile enough. Small teams are more effective.
• The organization culture adores the veterans from armed services are
welcomes them by giving them work opportunities at Amazon.
• The organizational culture of Amazon can be considered as a mix of role
culture and task culture because the employees who hold important job titles
are able to significantly influence the culture on other hand Amazon has some
features of the task culture also because the team members who are more
skilled and knowledgeable are dominating and shaping the culture of the
work teams. This might sometimes have a negative impact on employee
motivation.
• Internship opportunities are an immense motivation for candidates to apply
for jobs on Amazon. They select candidates with creativity, problem-solving
capabilities, create simple, faster customer-satisfying experiences which
shows that the culture is supportive.

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JEFF BEZOS - CEO AMAZON

4.2. Leadership Styles


Leadership styles can be classified as
• Country club Manager.
• Impoverished Manager.
• Authority obedience Manager.
• Team Manager.
• Middle of the road Manager.
Jeff Bezos’s leadership style is very close to the team leader style. Although he is
autocratic in his work because he does not like to be taught by others and cannot listen
to others’ opinions, he prefers the employees to listen and agree to him on one hand but
on the other hand, he inspires his employees, acts as a role model, motivates them to
continuously improve the standard of performance by improving the customer services.
He leads the major work teams and is personally supervising the major teams
operational at Amazon Which means the decisions making is centralized in Amazon.
His personality is charismatic which has a positive impact on the employees of
Amazon. Inc. making the company ranked in the list of the top 3 successful
organizations in the world in 2018-19. Jeff Bezos follows the leader punchline of ‘’ the
customer is the king’’. He follows an Autocratic style of leadership which although is
not preferred by many but still is effective in Amazon. Visionary and Charismatic styles
of leadership are his supportive styles of leadership. He at times becomes a team leader
which enables him to set a clear future direction and purpose for the company, as a
caring leader Jeff provides health care insurance to all employees which is another
motivator in Amazon.
Some of the most important leadership qualities possessed by Jeff Bezos are:
• Priority to customer services
• Working in small groups
• Think long term
• Take a risk for market leadership
• Employees should think like owners
• Base the strategy on things that are static
• Focus on processes rather the on failing
• Give options to customers.

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JEFF BEZOS - CEO AMAZON

4.3. Skills and Competencies:

His skills and competencies include following mentioned abilities:

• Ability to Adopt New Challenges:

Having the skill to accept completely different challenges let Jeff Bezos assume
differently and raised the talent for new experiences, exposures, and inventions.
By taking the internet’s reference, he might find the business techniques of
delivering items and services. During this method, he created the most extensive
online bookstore, Amazon. eventually he comes up with an innovative concept
to change it into realism. Furthermore, Amazon became a very successful and
profitable bookselling web store, Bezos worked on making huge stores across
the country. His different test results in a big loss of the stock market, however
later, he changed the situation very fast by once again creating the organization
one of the major virtual discounted bookselling stores in the World.

• Influencing and Persuading Abilities:

Jeff Bezos is one of the world’s famous leaders, possessing the planned set of
values, beliefs, cultures, and standards for his company. After that, he guides his
employees to follow these guidelines. Also, he encouraged his staff to develop
and make their skills to boost their performance. Bezos has the persuasive skills
to influence his employees to develop different ideas & productive results for
matters related to company. He depicts his skills to lead and leading his staff to
increase their awareness of the results.

• An Individual with Social Skill:


Jeff Bezos possesses public social proficiencies that allow him work along with
his staff effectively. These skills led him to find the goal and perceptions of
individuals concerning varied matters. In 2012, it had been reportable in Forbes
that the CEO of Amazon tries to know the individual client’s necessity and
manages to satisfy them effectively. Being attentive to customers’ preferences,
Jeff Bezos became expert in developing the company’s objectives and goals to
meet customer needs. (Jeff Bezos Leadership Style and Management Analysis,
2022)

4.4. Team Management by the CEO


Team Building Process Jeff Bezos’s characteristic style of building various teams can
be analysed in five stages.

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JEFF BEZOS - CEO AMAZON

• Forming:
Bezos has set a unique ‘Two-Pizza-Rule’ for establishing teams in his
organizations, which means that a team should be sufficiently served with no
more than two pizzas. To put it precisely, regardless of the massive scale of his
company, he forms individual teams or task forces with a size typically around
8-10 members, to perform the tasks effectively and efficiently. If some task
needs more than this variety of people, then according to Jeff Bezos it's
imperative to possess an additional solid structure within the team in order to
achieve a much better communication and consequently provides a prolific
output.
• Storming:
He has created a culture that embraces criticism from teammates, as a result of
he makes his workers believe that being misunderstood by others implies that
you are really doing something innovative and distinctive, which can someday
yield great outcomes once being persistent with multiple experimentations.
Restricting the team sizes in forming stage, in fact, comparatively decreases the
issues arising in storming stage.
• Norming:
At each purpose within the team’s development and working, this vision
simplifies the methods of being collaborative during this third stage. Further,
Bezos has incorporated the ‘Disagree-and-Commit’ strategy in his teams to
establish an honest and supportive team culture; since he believes that decisions
can be made at twice the speed with this method by cutting down the argument
phase and getting quickly into action mode.
• Performing:
Effective communication is an essential element of team performance according
to Bezos. He expelled the use the PowerPoint presentations from all levels of
business meetings in his organization. He holds a firm view that people get the
message more precisely through storytelling method (memorandums) rather than
bullet points in PowerPoints. In every meeting, the members silently read the
memorandum together for first half an hour and hence everyone actually
becomes prepared for further process rather than simply pretending to be
prepared.
• Adjourning:
Jeff Bezos has adapted a ‘Pay to Quit’ model from Zappos, within which he
offers freedom of going away the organization to unhappy staff, with a liberty of
up to 1 month’s salary compensation. This approach has positive advantages on
the team’s performance, since it discards implicit human obstacles. (Jeff Bezos -
PDFCOFFEE.COM, 2022)

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JEFF BEZOS - CEO AMAZON

5. Challenges And Failures

I. Crucible
In May 2020, Amazon released "Crucible," its first AAA video game, but only
a month later, the game was moved to an invite-only closed beta. Development
had been paused indefinitely by October 2020.
"Crucible" was shut down because "the dev team is going on to concentrate on
"New World and other Amazon Games projects," according to an end-of-
development FAQ on the Amazon Games site. Customers might also request
refunds through the page.The amount of money Amazon lost on "Crucible" is
unknown, however Juego Studios estimates that AAA game development costs
range between $60 and $80 million.

II. Haven
Haven, a healthcare company founded in 2018, was a collaboration between
Amazon, Warren Buffett's Berkshire Hathaway, and JPMorgan Chase. Its goal
was to help these three corporations enhance healthcare services and lower
insurance costs for their employees and their families, with the possibility of
expanding to additional employers in the United States. (Jeff Bezos’ Most
Outrageous Business Failures, 2022)
Haven, while an innovative concept, struggled to realize its objectives and
experienced multiple changes in top leadership throughout its brief existence.
Haven announced in January 2021 that it would cease operations at the end of
February. The amount of money Amazon put into the company is unknown.
(Jeff Bezos’ Most Outrageous Business Failures, 2022)

III. LivingSocial
LivingSocial, a competitor to Groupon, received a $175 million investment
from Amazon in December 2010. However, as the daily transactions industry
slowed, the company's rapid expansion came to a halt. (Yahoo is part of the
Yahoo family of brands, 2022)
According to The Washington Post, LivingSocial tried to flip its marketing
strategy by selling tickets to local events and organizing its own — for which it
spent roughly $4 million remodelling a historic building in Washington, D.C.
However, these efforts were unsuccessful, and the company was eventually
acquired by Groupon in October 2016 for $0 in cash. (Yahoo is part of the
Yahoo family of brands, 2022)

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JEFF BEZOS - CEO AMAZON

IV. Amazon Fire Phone


The Amazon Fire smartphone, which was released in 2014, was a huge flop.
The phone's pricing was reduced from $199 to 99 cents with a two-year AT&T
commitment within months. Bezos seemed unfazed by the $170 million loss.
(Yahoo is part of the Yahoo family of brands, 2022)
“If you think that’s a big failure, we’re working on much bigger failures right
now — and I am not kidding,” he said in 2016 when asked about the phone’s
failure by executive editor of the Washington Post, Martin Baron. “Some of
them are going to make the Fire Phone look like a tiny little blip.” (Yahoo is
part of the Yahoo family of brands, 2022)

V. Pets.com and Kozmo.com


In an interview with Henry Blodget at Business Insider's 2014 Ignition
conference, Bezos noted, "I've made billions of dollars of failures at
Amazon.com." "Literally, billions of dollars in failures. You may recall sites
like Pets.com or Kozmo.com. It felt like I was having a root canal without any
anesthesia. None of them are enjoyable. They don't, however, matter." (Jeff
Bezos’ Most Outrageous Business Failures, 2022)
According to Newsweek, Amazon bought a 50% share in Pets.com in 1999 and
helped to a $50 million round of financing for the pet supply company. In
2002, the online retailer went out of business. (Jeff Bezos’ Most Outrageous
Business Failures, 2022)
According to The New York Times, Amazon invested at least $60 million in
Kozmo.com, but the online retailer that delivered goods within an hour only
lasted a few years before closing its doors. The company did, however,
resurface in 2018 with a revised business plan under new ownership. (Jeff
Bezos’ Most Outrageous Business Failures, 2022)

VI. Books Deleted from Kindles


In 2009, Amazon withdrew copies of George Orwell's "1984" and "Animal
Farm" from the Kindle accounts of customers who had acquired the books
from an unlicensed seller without their knowledge. The move provoked
controversy due to its censorship-like nature and the company's general
handling of the incident. Bezos was quick to acknowledge and apologize for
his company's error. (Yahoo is part of the Yahoo family of brands, 2022)
During a July 2009 earnings call, he said, "Our 'solution' to the problem was
stupid, thoughtless, and painfully out of line with our principles." "It is entirely
self-inflicted, and the criticism we have received is well-deserved. We'll
leverage the scar tissue left over from this traumatic mistake to help us make

18
JEFF BEZOS - CEO AMAZON

better judgments in the future, ones that are more in line with our mission."
(Yahoo is part of the Yahoo family of brands, 2022)

VII. Antitrust issues


On July 29th, 2020, Jeff Bezos and three other tech CEOs will testify on
antitrust issues after the world was flipped upside down last year. When third-
party merchants expressed their displeasure with how Bezos spoke about them
during the hearing, he came under fire. While Bezos noted that third-party
sellers are critical to Amazon's retail business, he also stated that the merchants'
success is due to Amazon's tools. They were irritated since it appeared that his
assertion was not genuine. While this may appear to be a minor issue, the
problem has been simmering for quite some time. (5 Failures of Jeff Bezos and
How He Overcame Them, 2022)
One seller's account was suspended as an example of this. There was a
breakdown in communication, which resulted in a 90 percent drop in sales in
just one day. The vendor openly expressed his displeasure by saying. "There
are certain times when I think, 'How does a trillion-dollar company fail to solve
certain parts of this puzzle?' They are used by a lot of genuine firms." — Scott
Needham, presenter of the podcast "The Smartest Amazon Seller". (5 Failures
of Jeff Bezos and How He Overcame Them, 2022)

5.1. How to overcome challenges by Jeff Bezos

It derives from the fact that one of the most significant business judgments are
frequently the most difficult, and those difficult decisions frequently result in a spiral of
new leadership problems. It's actually quite straightforward. If you choose between
numerous fair options in your organization, some of your associates or clients will
almost certainly believe you made the wrong call. But once you've made your decision,
they could find it difficult to accept it.

Here's a simple illustration. Let's imagine you're contemplating a new product's retail
pricing. While a cheap cost may result in more sales, a high price may perpetuate the
idea of a high-end product quickly. Your marketing department would rather advertise
something much more special. So you can make an argument for either option. You
must, however, make a decision.

How can you persuade team members who will certainly believe you made the incorrect
decision to put aside their differences? This is where Bezos and Amazon enter the
picture.

19
JEFF BEZOS - CEO AMAZON

5.2. Stepping out of a negative perspective

Let us just call the inability to resolve what it really is: a destructive mentality —
despite the fact that it represents such fundamental, humanistic, emotions that it's
difficult to hold individuals accountable for it. Realizing this, in his yearly proxy
statement on April 17, 2017, Bezos revealed a method for overcoming it. Bezos noted
that he prioritizes good decisions, which mostly involves take a choice prior having all
the facts you need. He says the biggest opportunity for responding would be when you
know 70% of the data you require.

Nevertheless, a lack of details makes difficult judgments much more difficult, resulting
in the above-mentioned leadership issues. To combat them, Bezos provided a simple
verbal strategy that halts the spread of problems by halting the spread of destructive
attitudes. This is only a three-word phrase, after all. "Disagree and commit," which
Jeff Bezos added. The term could help you save a great deal of time. It's useful to say,
even when there's no unanimity, if you already have confidence in a specific manner
"See, I think we don't agree on this, but are you willing to take a chance alongside me?
Disagree and make a commitment?"
None of us can know the right answer for certainty by the moment you get to this step,
so you'll definitely get a swift ok.This is something you must do as well if you're the
boss. I constantly disagree and commit.
Even the Kindle
Bezos describes in detail an instance in which his crew pushed for an Amazon
Productions series that he didn't realise was best possible way. "I disagree and
commit," he told them, “and I wish it will become the most viewed thing we've
done." Here's one more slightly elevated illustration that I adore: Jeff Wilke,
Amazon's "second most significant Jeff," told the tale of how he initially thought
the Kindle wouldn't be a good match for the company.
"I disagreed and committed, and I'm really glad I did," he told The Wall Street
Journal.
So, let's have a look at why I believe this three-word sentence is so beneficial.
➢ "Disagree ... "
This is where it all begins. How often at certain instances have you did hear
that "building confidence" is the goal of a growth and economic process?
However, this is incorrect: the purpose is to analyse data and make
quick judgement calls, not to persuade others.
You'll commit blunders from occasionally. You give public the choice to go
on record, record their opponents, and proceed on fast to aiding the group by
including "disagree" directly in the decision-making objective.

20
JEFF BEZOS - CEO AMAZON

➢ " ... and ... "


Indeed, it's simply a combination, but it emphasizes that this is not really a
"agree to disagree" technique. There seems to be a second element on the
way, and it's a lot more significant, to be honest.

➢ " ... Commit"


I'm growing up with a sense of this phrase the farther I thought about that.
Firstly, it emphasizes that the purpose here is determined, coordinated
effort, not trade deal.
Secondly, it's an implied commitment from your teammates who may have
disagreed: "If I were the final arbiter, I could have made a different choice.
But I know that we've taken a different decision, and I'll now devote my full
attention to it."
Acknowledging it helps to protect from all horrible attitude that lies at the
core of the problem. Commitment takes precedence over agreement. It's a
fantastic idea. But if it succeeds for Jeff Bezos and Amazon, it might just
work for anyone.

21
JEFF BEZOS - CEO AMAZON

6. Managing Changes in the World

Amazon wasn’t the first bookstore to sell online, but it wanted to be “Earth’s biggest.”
With a market value of roughly US$1.7 trillion, Amazon is the third most valuable
corporation in the United States, behind Apple and Microsoft. Its market capitalisation
is bigger than the gross domestic product of all but a dozen or so countries. (How Jeff
Bezos and Amazon changed the world, 2022)

I. Redefining Retail

Amazon, named after the world's largest river, has consistently improved shopping
convenience. Shoppers had to go to stores to explore and buy products before Amazon
was founded on July 5, 1994. Shopping used to be a chore: scouring many aisles for a
desired item, dealing with crying and demanding children, and standing in long
checkout lines. Today's retailers attempt to reach out to customers anywhere, at any
time, and via a variety of channels and devices. (How Jeff Bezos and Amazon changed
the world, 2022)
Shoppers began to expect two-day free shipping from every online merchant after first
experiencing it through Amazon's Prime membership program. In the United States, an
estimated 142 million people shop.

II. Amazon Prime

One-click ordering, tailored suggestions, parcel collection at Amazon hubs and lockers,
ordering products with a single push of a Dash button, and in-home delivery with
Amazon Key are all features that have made shopping easier.
Amazon has also played a role in the increasing closures of brick-and-mortar
establishments that are unable to keep up with the changing retail landscape. Stores
were closing at an alarming rate even before the pandemic, with pundits forecasting a
"retail apocalypse" on the horizon. Last year, Amazon benefited greatly when most of
the United States was put under lockdown, and more people decided to acquire items
online rather than risk their health by going to real stores. (How Jeff Bezos and Amazon
changed the world, 2022)
Even as over 11,000 retail outlets closed their doors, Amazon's stock price has nearly
doubled since the lockdown began in March 2020.

III. A major employer

Amazon's influence extends to other areas, such as smart consumer gadgets such as
Alexa, cloud services such as Amazon Web Services, and technology items such as

22
JEFF BEZOS - CEO AMAZON

drones.Amazon is now the second-largest publicly traded company in the United States
and the fifth-largest in the world. It employs 1.2 million people, with 427,000 of them
hired during the pandemic. It's no surprise that when Amazon held a competition to find
a location for its second headquarters in 2018, it made quite a stir. Arlington, Virginia
was chosen in the end.
The work culture at Amazon is demanding. It has a reputation for being a tough
workplace with a high percentage of employee burnout. It is automating as many jobs as
it can, mostly in the warehouse industry.
At the same time, in response to government criticism, Amazon increased the minimum
pay for its U.S. employees to $15 per hour in 2018.
Faced with increased criticism over the environmental impact of Amazon's boxes and
other packaging materials, the company has vowed to provide more information about
its environmental impact. (Murphy Jr., 2018)

6.1. Five key business lessons from Amazon’s Jeff Bezos

Jeff Bezos, the Founder of Amazon, has dedicated over half of his life creating and
innovating e-commerce, and he's still the world's fifth richest person in the world. When
Amazon came out publicly in 1998, his worldview, which enabled him turn the online
marketplace into a Goliath with a present market valuation of approximately $380
billion, may be derived from his statements to investors. No American business owner,
aside from Warren Buffett, CEO and chairman of Berkshire Hathaway, stuff and things
his yearly statements to investors with more financial insight than Jeff Bezos, who is
still 53 years of age.

Through Amazon's initial yearly survey as a commercial establishment in 1998 to the


statement he penned before of the firm's annual conference on May 17, this year, he's
maintained a constant style: develop ethos, take chances, and think about the future.
Amazon is on track to become a $3 trillion firm in a decades, according to Chamath
Palihapitiya, a tech entrepreneur and former Facebook employee, who spoke at the Sohn
Investment summit. If this is the case, it is owing in significant part to Bezos' strategic
planning. The so-called "Amazon Way" has sparked debate, yet it can be applied to
enterprises of all sizes.

Here seem to be five insights to learn from his achievement

23
JEFF BEZOS - CEO AMAZON

i. Obsess over clients, not rivals

Bezos proves the argument that technology companies are particularly obsessed with
rival companies: They stand to watch what opponents offer, then strive to replicate or
one-up it. Rather than, Amazon developed its Amazon Web Services (AWS) division
by understanding customer needs. AWS was created to address the issues with too-
expensive in-house program servers and fully accessible offerings that were not even
powerful enough to handle fast-growing or already-large businesses"Many firms
pretend to be consumer, but so few try to follow through," says AWS, that has evolved
to be a $10 billion corporation.The majority of large technological firms are
concentrated on their competitors. They watch what everyone else is doing then try to
catch up," he stated in a response letter 2015.

The overall message: In order to stay ahead of the competition, one must innovate for
self.

ii. Take chances in order to gain competitive edge.

Everything just took three efforts for Amazon to establish itself as a retailing and
fulfillment network. It started with Amazon Auction sites, which is essentially a carbon
copy of the idea which placed eBay on the globe. This evolved into zShops, and then
into Amazon Marketplace, that now accounts for approximately half of all Amazon.com
sales. "If you have a 10% possibility of victory 100 times your investment, you must
take that gamble each moment," Jeff Bezos stated in his first yearly statement (1997).

The overall message: Execute daring investing decisions instead of cautious ones. You'll
gain something because things do not really function properly out for next time

iii. Encourage staff to think like entrepreneurs.

Bezos had 614 workforce since he addressed anything in the first Amazon yearly
statement, up over 158 a year before. It currently employs 230,000 people and expects
to recruit 100,000 full-time workers within next 18 months. The utilization of stock
grants in recruitment has become a critical part of the strategy. In the 1997 message,
Bezos stated, "We shall keep focusing on recruiting and maintaining adaptable and
talented workers, and we will maintain to measure their remuneration to stock grants
instead of liquid assets." "We recognize that our efforts to bring and keep a passionate
personnel group, each who must behave like, and hence should be, an owner, will be
incredibly valuable."

The overall message: Offer employees a share in the organization's growth, whether
through equity, rewards, or benefit sharing.′′.

24
JEFF BEZOS - CEO AMAZON

iv. Establish atmosphere that works for your firm.

As befits a corporation which has made only a decent profit, or a deficit, under globally
acknowledged accounting rules for the majority of its tenure as a publicly listed
company, Amazon's atmosphere is infamously fast-paced and premium. "We don't ever
pretend that our approach is most appropriate — only that it would be genuine," Bezos
clearly mentioned in 2015

The overall Message: A company's objectives do not have to be the same. The goal is to
focus on just few key points, emphasize them frequently, and ensure everyone else is on
board.

v. Reach a point, motivate the team to prevent complexity.

According to Bezos, there really are two strategies that can be employed: He
distinguishes between irreparable defining moments that top officials must be part in
and a greater group of strategic moves that a corporation might revert if it problem
occurs, which he refers to as "Type 2 policy choices.""Excellent perception personnel or
small communities may and thus should make Type 2 policy choices quickly,"," Bezos
added in the 2015 statement. Recession and risks fear are the final results, he stated.
Company has been able to cultivate even itself out fits like Amazon Prime Video,
whereby the firm attributes for fueling both Amazon Prime and, consequently, the
group ’s core business investment.

The overall message: Push power down low inside the corporation to continue
inventing. (Mullaney, 2017)

25
JEFF BEZOS - CEO AMAZON

7. Conclusion

This article has resulted in the expansion of a theoretical framework in order to


demonstrate the role of leadership and how Jeff Bezos has used it to accomplish his
achievement. Jeff Bezos is described in this article as an unusual, imaginative, daring,
and creative leader. Amazon and Bezos' other companies have become one of the
world's most admired businesses thanks to Bezos' distinctive leadership style. He is the
world's richest man of all time thanks to his never-say-die attitude and exceptional
business brain, as well as excellent leadership qualities. Because he is a tenacious and
diligent individual, he needs his followers (workers) to be just as committed, which
might make him a demanding leader. This is, nevertheless, one of the most huge
benefits of his leadership, because he invests in motivated people and gives them with a
technical and economic framework on which to test their new ideas. Bezos's climb from
a stockbroker to the world's most prolific employer exemplifies his ability to 'Do-Right-
a-Lot,' and it can be inferred that he is not just a superb manager but also a leader in his
own way.

Visionary Unconventional

Innovative Demanding

Inspirational Relentless

Beliver Strategic

Figure 2: Jeff Bezos - The Leader in One Picture

Image Source: McCurdy, 2019

26
JEFF BEZOS - CEO AMAZON

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12. Pressfarm. 2022. 5 Failures of Jeff Bezos and How He Overcame Them. [online]
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JEFF BEZOS - CEO AMAZON

Declaration of Own Work

We hereby declare that the work for this research project was solely undertaken by me
and that no help was provided from other sources than those allowed. All sections of the
report that use quotes or describe an argument or concept developed by another author
have been referenced, including all secondary literature used.

Hamm, 28.01.2022_________________Rohit Shinde

Hamm, 28.01.2022_________________Kaustubh Dinesh Pawar

Hamm, 28.01.2022_________________ Shubham Ghogare

Hamm, 28.01.2022_________________ Mukundh Sivakumar

Hamm, 28.01.2022_________________ Karthik Venugopal

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