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D a t e d : 1 5 t h D e c e m b e r , 2 0 1 5
Author: Sadia Rahat
EFFECTUAL IMPLICATION OF
TOTAL QUALITY MANAGEMENT
WITHIN AMAZON.COM INC.
EffectualImplicationofTotalQualityManagement
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TABLE OF CONTENTS
1.1 INTRODUCTION...................................................................................................3
1.2 FUNDAMENTALS OF TOTAL QUALITY MANAGEMENT (TQM) ........................4
1.3 CASE STUDY: APPLICATION OF TOTAL QUALITY MANAGEMENT (TQM)
WITHIN AMAZON.COM INC...........................................................................................8
1.3.1 TOTAL QUALITY MANAGEMENT (TQM) WITHIN AMAZON.COM
SUPPLY CHAIN...........................................................................................................9
1.3.2 VALUE PROPOSITION ................................................................................10
1.3.3 DROP SHIPMENT MODEL ..........................................................................10
1.3.4 STRATEGICALLY MANAGING SUPPLY CHAIN.........................................11
1.4 STRENGTHS, WEAKNESSES, OPPORTUNITIES AND
THREATS (SWOT) ANALYSIS.....................................................................................12
1.5 FACTS AND FIGURES .......................................................................................15
1.6 CRITICAL ANALYSIS OF TOTAL QUALITY MANAGEMENT (TQM)
WITHIN AMAZON.COM................................................................................................17
1.7 LESSONS LEARNED..........................................................................................18
1.8 APPLICATION OF TQM AT GLOBAL SCALE ....................................................19
1.9 CONCLUSION ....................................................................................................20
1.10 BIBLIOGRAPHY..................................................................................................20
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1.1 INTRODUCTION
Today’s marketing world have been advanced up to the production skies thru constantly
consuming lots of technological and management tools. Business with least risking errors
and maximum production goals used to be considered as the most productive one in
twenty-first century global markets. Here, each day is a new day of potential business
transactions in an exclusively build competitive race so as to grab maximum commercial
share. The technological advances also upgrade the concerned production race thru
novel commercial practices with integrated smart innovative ideas (Narendula 2012). The
justified channeling of this much business advancement is the core economic
understanding that enables even a laymen to produce maximum good with enough
marketing share, constructively. On the other hand, lack of understanding with such
business fundamentals proved to be a marketing disaster as well. International business
investors needed to comply all of the concerned business goals so as to produce,
compete, survive and succeed in such congested economic markets.
Business personnel’s tried to achieve the status of being independently unique and
innovatively productive in concerned economic competitive markets. In this regard they
produce some fundamental business practices to achieve this advance status. So, the
term ‘Quality Management’ coined in this context as quality management is itself a
productive parameter that enhanced not only the production compliance but also the
customer compliance (Soediono 1989a). Different scholars describe this term on different
explanatory spectrum but most of them are agreed on the inclusion of cooperative
business operations, error free commercial goods and customer satisfactory economic
status (Gold 2015). Later on, the term’s subjective grade improved from quality
management to simple total quality management encompassing wide spectrum of
business management fundamentals such as goods successive transportation, demand
and potential forecasting, customer service, inventory and respective innovative
measures, goods and product distribution, commercial procurement, strategic operational
planning, risk free production, barriers free business communication etc.
The process of implicative business total quality management rolled under the umbrella
of thoughtful managerial operations thru bunch of quality humanoid services in terms of
performance status up gradation (PR 2015). The relational aspect of this productive
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phenomenon approach is the cooperative integration of humanoid services with
applicative economic production. Additionally, there are some administrative guidelines
that used to improve individual compliance within the concerned business sector
(Soediono 1989b). If the individual capacity building didn’t involve in this commercial
advancements, the core task of total quality management became difficult and even
impossible to achieve.
Back in early days, the term quality management used for the justified understanding of
military based commercial orders for respective goods and services. In this way, quality
management was to improve the forces performance status with productive yield of
required military goods (Yang et al. 2015). However, the todays descriptive mean of this
term expand its explanatory wings from simple quality management to highly assimilated
total quality management logistics. Thru this physical up gradation not only the
administrative goals possessed to have a more successive potential but, also the
personal goals for the contracted task fulfillments (Kousha & Thelwall 2011). Usually the
production status of a business net operations statistically calculated after a certain time
period like monthly, quarterly, biannually, annually basis etc. So, to measure these
respective performance status, company’s tried to play thoughtfully with advance
managerial moves and technological innovative productions simultaneously.
1.2 FUNDAMENTALS OF TOTAL QUALITY MANAGEMENT (TQM)
As we have already discuss that the business performance status used to be upgraded
through appropriate total quality management implication within concerned business
sector (Topalović 2015). These quality management programs consist over a range of
certain phenomenon parameters. Such contributory fundamentals that needed to be
concerned substantially before introducing an appropriately fashioned constructive total
quality management in an organization so to be maximize business net profit share
(Cetindere et al. 2015). Some of these important parameter along with their respective
economic status are tabulated below:
Table 1.2.1- Fundamentals of Total Quality Management (TQM) and Their Respective
Economic Status
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Fundamentals of Total Quality Management (TQM)
and Their Respective Economic Status
TQM
Fundamentals
Status
Demand And
Forecasting
This process basically range over the spectrum of business
predictive demand for future products and respective contacted
items (Ritala et al. 2014). The demand and corresponding product
contract forecasting basically drive out from the current and past
business events. The past event dictate the need of future trendy
demands that helps managerial sector in fabricating their
marketing strategic layout.
Inventory Business inventory is another important production sector where
the assurance of quality is the major concern for the progression
of maximized production yield (Srima et al. 2015). Business
inventory is basically consider as the net share of overall business
profit from the current marketing assets that needed to be valued
and counted precisely so as to determine net yield production.
Most of the business inventories used to be account on daily
business benefit with precise loss count as well (Ahmad et al.
2014). That is why, business inventories and its respective
instruments considered as one of the basic total quality
management fundamental.
Transport The description of this phenomenon process is the successive
transportation of product from its raw form to the complete product
form, from manufacturing factory to the ultimate retailer or
customer, respectively. Transportation also fluctuate over the
dynamic field of transporting mediums such as air, water, road,
railways etc. (Benavides-Velasco et al. 2014). Total quality
management assures the cost of such transportation should
remain on its minimum however the product quality status that is
being transported should be maximum.
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Customer
Service
Customer care services are the absolute total quality management
sector that build up for the assurance of respective business
compliance. This helps company for the successive acquisition of
their potential customer trust and confidence.
Distribution Distribution is the prime fundamental of total quality management
process as it relates the constructive distribution of marketing
products among its potential buyer markets (Hertig & Davies
2008). The channeling of product distribution started from its
manufacturing origin and finally ended up over the lap of customer
satisfaction.
Procurement Procurement is a vast field of total quality management as it range
over the spectrum of business process and economic transaction
(Izvercian et al. 2014). The process basically covers the
purchasing of business goods thru major commercial transaction
in order to assimilate them in business potential assets and used
them constructively, afterwards.
Strategic
Planning
A thoughtfully designed business strategy lead the company
toward constant progression (F.F. & Pitard 2009). That is why
scholars focused on the mandatory processing of business
strategic planning so as to assure marketing development
proactively.
Risk Strategic business planning along with business risk assessment
are two major planning tools of total quality management (Militaru
et al. 2013). The business risks revolves under the umbrella of
potential profit and loss that substantially impact the business
productive outcomes (Dahil & Karabulut 2013). So the scholars
and other business experts suggested to have a thorough
business risk assessment analysis so as to extract probable risks
proactively and management them efficiently.
(Keblis et al. 2014)
All of the above discussed total quality management fundamentals are significantly
important for the productive maximization of business manufacturing yields. There is
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another economic term the Total Productive Maintenance (TPM) that found very much
important in this regard (Kahreh et al. 2014). But, the integration of total quality
management along with its widespread integrated fundamentals are of highly significant
in the context of its effectual productive outcomes. Total quality management provide
companies their way in to the competitive global leads with high profile TMP. The
potentialities of this process also debated within quality management literature as a
comparative production analysis (Martel 2015). Each debated fundamental has had
concluded with substantial standing values as all effected the business performance
status at any production level. Workforce capacity building, administrative and managerial
leadership training, customer satisfaction, confidence building and trust compliance are
some of the major management fruits that should be assured by the concerned total
quality management. In this paper, we have studied the Amazon.com Inc. productive
quality management supply chain tactics. So, the company’s focused on its net
employee’s count in terms of their net productivity with respect to the progressing number
of customers count (Suwandej 2015). As Amazon’s business network have had been
spread over the inter-continental boundaries, so its employees count along with its
customers count has also been increased. The number of Amazon’s employees
increased from 2007 to 2014 has also been tabulated below:
Table: 1.3.2- Amazon.Com Inc. Potential employees count from 2007 to 2014
AMAZON.COM INC. POTENTIAL
EMPLOYEES COUNT FROM 2007 TO 2014
Year Employees
Count
2007 17,000
2008 20,700
2009 24,300
2010 33,700
2011 56,200
2012 88,400
2013 117,300
2014 154,100
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(Statista 2015)
1.3 CASE STUDY: APPLICATION OF TOTAL QUALITY
MANAGEMENT (TQM) WITHIN AMAZON.COM INC.
Amazon.com Inc. was founded in 1995 by Mr. Jeff Bezos. It was one of the first e-
commencing website that not only started business online but also run it successfully.
There were lots of acquisitions occurred over the years but, the appearing activities of
this online e-shopping website is absolutely remarkable (Ding 2015). Washington, USA
considered to be its founding house where it was started its e-commerce for books
transactions, particularly. Amazon.com Inc., was initially started with online books
transactions but, as they get their foots established in e-commerce markets, they spread
their wings onto other domestic goods including furniture, DVDs, toys, CDs, video
players, jewelry household appliances etc. (Amazon 2015). According to one estimate,
amazon currently enjoys to have more than one-lac fifty-four thousand one-hundred
business employees. They active customers count also figured more than one hundred
and fifty-two millions with about more than forty-eight million annual revenue generation.
Its revenue generation rate recorded to be higher than world most renowned website
‘google.com’. Additionally, the concerned website rank over sixteenth, on the account of
global network trafficking (Amazon 1995). Amazon shipping spectrum also ranged over
the spatial boundaries of about two-hundred international countries. However, their main
branches along with package preparing centers spread within six main countries.
Amazon have a separate, independent website for particular countries enlisted below:
I. United Kingdom
II. Canada
III. France
IV. Unites States
V. Italy
VI. Germany
VII. Spain
VIII. China
IX. Brazil
X. Japan
XI. India
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Amazon.com Inc. covered a long progressing journey from the date it was established
to still the current business day. Their spectacular success is specifically regarded
with its strong strategic moves (Amazon.com 2015). They followed the keys of quality
management so as to assure product quality, transparent transaction and
performance status as well. Its total active customers count range from one-lac
eighty-thousand to about fifteen lac one thousand transacting customers. The
company used to make thousands of productive deals on annual basis. A proportional
enhancement share of Amazon.com customer count was about 738% (Amazon
2014a). Similarly, the company enjoys a relatively higher status of continues
customers range from 46% - 58% from 1996 to 1997.
1.3.1 TOTAL QUALITY MANAGEMENT (TQM) WITHIN AMAZON.COM
SUPPLY CHAIN
The implication of total quality management within Amazon business processing is
the prime success factor of company. The Amazon annual report- 2014 showed their
concerns for quality management practices (Amazon.com 2014b). The competitive
business strategy opted by Amazon.com Inc., is the total quality management along
with its effectual working factors that are enlisted below:
I. Thoughtfully fabricated Strategic policies and respective business moves
II. Quality assured successive product Distribution and respective product
channeling (Amazon 2014b)
III. Procurement and innovative transacting acquisitions
IV. Business risk assessment
V. Speedy product transportation
VI. Quality maintenance and respective reliability assurance
VII. Satisfactory customer care services
VIII. Accurate determination of product projective demands
IX. Contract forecasting within Amazon.com processing spectrum
X. Management of Amazon.com worldwide inventories
XI. Proactive risk management and thoughtfully fashioned risk minimization tactics
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All of these above mentioned factors have their own contributive effectual outcomes.
Amazon.com like to manage their inventories so as to assure maximum
manufacturing yields. Fulfillment by Amazon (FBA) is their marketing inventory as
they manage quality status at this inventory for their potential marketing sellers
(Amazon Web Services 1995). So, lots of international sellers used this inventory for
their product substantial transactions.
1.3.2 VALUE PROPOSITION
The amazon.com strategically aligned its value proposition into four major podiums
that are enlisted below:
I. Purchasing and time convenience
II. Variety to select with best specifications
III. Price suitability
IV. Customer friendly services
The four major value propositions made the company’s quality managing ventures
appropriately ensure. The significant quality management within twenty-four hours
online business is something very much difficult to accomplish. The e-books site also
made logically upgraded so to provide readers twenty-four hours uploading and
respective downloading facilities. Product recommendation, upgraded reviews,
contact service facilities etc. all are embedded within amazon.com quality assuring
value propositions. Amazon.com Inc. also recognized as one of the most procuring
networking business. Moreover, the nature of constant commercial procurement
leads this successful business on the peak of production maximization (Amazon Web
Services 2014).
1.3.3 DROP SHIPMENT MODEL
This model specifically implied by Amzon.com for the successful achievement of
quality based articles shipping to their ordered buyers. This strategic model played
as the retailer transfer the ordered articles to their manufactures or the provided
wholesalers so as to assure qualitatively managed article shipping to the potential
buyers, respectively. The price differences managed by the retailer and the
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manufacturer arranged in terms of retail based profit prices. The alliance based
inventory managing enhanced the Amazon.com constructive quality reputation.
1.3.4 STRATEGICALLY MANAGING SUPPLY CHAIN
Amazon.com always played in a tactical fashion where each and every supply chain
bound under specially devised methodological measures. Amazon.com used to
manage their price friendly services through making specific strategic alliance with
other multinationals. In order to have an appropriate associate, company usually
followed the customer care services provided by its proposed ally independently.
Some of the most often recognized Amazon.com allies are enlisted below:
I. Pets.com
II. Greenlight.com
III. Della.com
IV. Living.com
V. Gear.com
VI. Drugstore.com
VII. Ashford.com
VIII. HomeGrocer.com
Amazon never resist to add new and potentially convincing products to their variety’s
list. Supplementary to such high profile business tactics, Amazon.com Inc. also
possessed to have a productive value conservation and individual dependability
assurance, quick and efficient articles transference, precise determination of artifacts
projective loads, contract predicting in the Amazon.com interior treating continuum,
adequate customer compliance etc. (Amazon.com 2014a). So, here we have enlisted
those tactical scale on which Amazon.com Inc. can positively access their potential
business quality management and performance improvement constructively.
Table: 1.3.1- Total Quality Management Implicated Fundamentals
Within Amazon.Com Inc.
Total Quality Management Implicated Fundamentals Within Amazon.Com
Inc.
Total Quality
Management
Fundamental
Status
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Administrative and
Managerial Controls
`Implication of goals oriented administrative tactics
`Task acceptance business models
`Decisive and determined managers
`Honest and efficient administration
Customer Compliance `Responsible administration in terms of public
satisfaction
`Consumer oriented service provision spectrum
`Barriers of communication channel so as to receive
constructive and destructive potential feedbacks
(Holmes 2015)
`Assure customer trust status for the efficient provision
of product repairing services
Task Management `Determined administration in order to assure existed
and predictive task
`Conductance of capacity building for the efficient and
progressive task oriented processing (Ziegel 2015)
Quality Enhancement `Upgraded service quality
`Assure delivered product quality
`Safety assurance and return facility
`Upgraded website technological features
Transportation and
Product Distribution
`Upgraded product distributive measures
`Quick and efficient product delivery
`Constantly make efforts to lower their shipping time
with progressively improved product quality
(Amazon 2014a)
1.4 STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS
(SWOT) ANALYSIS
Amazon claimed to comply all of the logistic total quality management potentialities
that have had been proposed from academic scholar and business experts,
proactively. They also welcomed the smart innovative ideas for the constant
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improvement of their production band. Similarly, Amazon.com is one of the best
international corporation that specially assured the establishment of a thoughtfully
fabricated company’s overall policy (Amazon Web Services 2015). This is the reason
why they have had implemented the total quality management program within their
managerial sector. Additionally, the business administrations suggested to have a
detailed risk assessment audit in order to extract out all of the destructive business
potentialities. So, the company used to conduct regular risk monitoring and proactive
risk management for the projective assurance of Amazon.com Inc. succession. So,
here we have presented a tabulated form of amazon.com detailed SWOT analysis,
below:
Table: 1.4- Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis of
Amazon.Com Inc.
STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT)
ANALYSIS OF AMAZON.COM INC.
PARAMETER STATUS
Strengths Thoughtfully administered Amazon’s technological up
gradation assure the quality managing services within
amazon.com Inc. The company offered twenty-four hours
facilitative services to their potential buyer along with a strong
critical product review so that the performance status of the
articles provided by the company could be transparently
ensured. Additionally, company offered quick contact services
so that the online transactions should never face the faulty
processing breaks. Being the first e-commerce website, it
possessed to have a wide and correspondingly strong product
distribution channel that specifically improved the customer
trust status, constructively (Chiles & Dau 2005). The product
offered by this website also very much fluctuating on the price
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scale so as to provide equal purchasing opportunities to all
ranks of the society.
Weaknesses Increased oil taxation along with constantly increasing fuel
prices increased the risk of shipping flaws within Amazon.com
productive delivery services. Along with this processing,
Amazon.com need to assure quality based article shipping for
which they have to rely upon contracted delivery companies.
This possessed to have a greater risk for the company as a
minute flaw within article shipping or the shipped product
quality could destroy the company’s honest repute.
Additionally, we have had discussed that the Amazon.com is
very much welcoming in terms of adding verity’s of brand’s
articles within this offered product spectrum. This
phenomenon attitude also posed a greater, quality based risk
potential for the company as the assurance of product quality
also guaranteed by the company that could also destroy its
repute.
Opportunities Being the first online shopping website, the company enjoyed
a greater distribution channel that means the company
enjoyed a highly expansive impact factor. Amazon.com is the
name of quick and efficient quality based shipping service that
included millions of product variety on its offered spectrum.
So, its net count of daily visitors also crossed the opponent’s
customer limits. This, not only enhanced the running capacity
of the company but, also the net share and respective
balance, successively. Additionally, company expanding their
inventories and respective spatial coverage spectrum so as to
assure greater revenue generation. Lately, Amazon.com also
working on to be established within Asian commercial
regimes.
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Threats Constantly increasing fuel prices used to be added up within
product shipping charges that gives the deliver a negative
impact. So, the customers preferred to visit the local markets
and purchased from them on price friendly rate. This, directly
impact the company’s overall business transactions. In this
regard, Amazon.com have to limit their delivery charges within
affordable price friendly range that sometimes become very
much difficult. Additionally, the competitive business pressure
also threatened the company’s viability, negatively.
(Sabitha 2014)
1.5 FACTS AND FIGURES
Amazon.com still found difficulties to tackle their net competitive pressure. Their
potential business competitors used to have greater number of resources, prolonged
marketing histories and a higher brand recognition. But, what Amazon.com Inc. got
is the availability of effectually implemented total quality management logistics that
make its number high in the hierarchy of competing world business leads (Keblis et
al. 2014). Although, the tactically adjusted aggressive pricing is a smart business
moves but, Amazon.com used to move with customer satisfactory demands so as to
make them permanent and enhance their predictive forecasting even more increased
in numbers, respectively. So, here we have tabulated some of the company’s
statistically aligned facts and figures that showed the net production of company thru
the effectual implementation of total quality management within business potential
processing, below:
Table 1.3.2- Total Quality Management and Productive Net Yield of
Amazn.Com Inc.
Total Quality Management and Productive Net Yield of Amazn.Com Inc.
Facts Figures
2010 2011 2012 2013 2014
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Net
Production
$ 1152
Million
$ 631
Million
$ 39.0
Million
$ 274
Million
$ 241
Million
Basic Profit
Per Share
$ 2.58
Million
$ 1.39
Million
$ 0.09
Million
$ 0.60
Million
$ 0.52
Million
Diluted
Profit Per
Share
$ 2.53
Million
$ 1.37
Million
$ 0.09
Million
$ 0.59
Million
$ 0.52
Million
Net
Business
Sale
$ 1152
Million
$ 631
Million
$ 39.0
Million
$ 274
Million
$ 241
Million
Operations
Based
Business
Income
$ 1406
Million
$ 862
Million
$ 676
Million
$ 745
Million
$ 178
Million
Weighted
Basic Profit
Per Share
$ 447
Million
$ 453
Million
$ 453
Million
$ 457
Million
$ 462
Million
Weighted
Diluted
Profit Per
Share
$ 456
Million
$ 461
Million
$ 453
Million
$ 465
Million
$ 462
Million
Net Cash
Flow
$ 3495
Million
$ 3903
Million
$ 4180
Million
$ 5475
Million
$ 6842
Million
Procurement
Cash Flow
$ 979
Million
$ 1811
Million
$ 3785
Million
$ 3444
Million
$ 4893
Million
Free Finance
Flow
$ 2516
Million
$ 2092
Million
$ 395
Million
$ 2031
Million
$ 1949
Million
Total
Business
Assets
$ 18797
Million
$ 25278
Million
$ 32555
Million
$ 40159
Million
$ 54505
Million
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Net
Business
Obligations
$ 1561
Million
$ 2625
Million
$ 5361
Million
$ 7433
Million
$ 15675
Million
(Amazon 2014a)
Though, the major source of revenue generation is the successive transaction of
Amazon.com deals that placed online. But, the network marketing played a role of
third party potential sellers that make the process quite complex. However,
Amazon.com constantly uplifting successive productive yield thru the effective
implementation of total quality business management. Gross net production used to
be estimated by overall website’s transactions (Statista 2015). Amazon.com Inc. also
build up to offer other customer friendly services to enhance quality assurance and
business performance simultaneously. Some of these customer friendly services
offered by amazon.com Inc. are enlisted below:
I. Amazon Web Services (AWS)
II. Articles Packaging and Respective Orders Fulfillment
III. Books and Novels Publishing
IV. Entertaining Digital Media Content
V. Commercial Advertising
VI. Brand Based Debit Cards
1.6 CRITICAL ANALYSIS OF TOTAL QUALITY MANAGEMENT
(TQM) WITHIN AMAZON.COM
After discussing all of the operational activities that have been conducting at and thru
Amazon.Com Inc. we found some of the limiting probabilities that possessed to have
a strong potential for probable business regression. Amazon.com Inc. itself found
these key contributory point that needed to be focused further advancements. First of
all, one of the most significant potential impacting factor is the quality maintenance
and consistent up gradation (Ritala et al. 2014). Though Amazon.com Inc. have had
implemented total quality management but, they still needed to hire best managerial
control to understand the management requirement and full fill them efficiently. The
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experienced administrative and managerial controls happened to be the best proactive
means that can helped to avoid any disrupting business event and also managing the
predictive economic risks, proactively.
Another major problem Amazon.com Inc. is facing today is to cope up with their novel
investments as it is part of Amazon’s strategic policy to welcome each of new
introducing products to their company. But, the investment profitability on the account
of such novel artifacts is not necessarily assured (Ding 2015). For that, they have had
introduced the total quality management but, the potential assurance of business
profitability in this particular articles inclusion sector is not substantially satisfying.
Although, Amazon.com also introduce technological advances to their website
constantly but, the management of such fluctuating advances is quite a complex
process. Total quality management provides control over product and all of its sale
related logistics implemented measures. But, the cloud of networking technology is
something that could not be properly manage up by this particular platform. For this
purpose, Amazon.com administration has had been hiring some kind of
technologically strong managing group like cloud computing etc. but then again the
point of total management application seems somewhat going to fail here.
1.7 LESSONS LEARNED
After discussing the application of total quality management within world famous
Amazon.com Inc. business we have found some significant business lessons that we
have enlisted below:
Strategic inclusion of fresh arrivals within existing e-commerce business is a
necessary pre-requisite so as to being recognized as an innovatively smart
business Inc.
Application of total quality management within any large and even small scale
business is very important progressive point as it helps enhance the quality,
profitability, and durability and performance status of company, respectively.
Tactically fashioned business moves is something that each and every business
economy should follow so as to assure their constant business succession.
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Despite the fact that the Amazon web services followed their methodological
tactics but, still the regular updates regarding these tactics should be included
within actual business moves.
Individual capacity building along with regular business auditing is another necessary
pre-requisite that not only Amazon.com but also the other networking and spatial
business economies needed to follow for their effective marketing succession.
1.8 APPLICATION OF TQM AT GLOBAL SCALE
Total quality management is a successful operating quality management process that
helped out various business economies in assuring and enhancing respective
business productivities. Potential marketing anomalies that we have just discussed
above should be specially consider but, the pros and cons analysis of this system
ranked it a successful progressing one. Amazon.com is a worldwide e-commencing
business and its marketing spectrum is quite an intercontinental one (Amazon 2014a).
Their business inventories enjoys a substantially large coverage area. This makes
their business productive and sophisticated at the same time. However, the regular
process monitoring, annual discussion meetings, managerial accountabilities etc. all
make the business a successive lead as a whole. Lots of other business economies
not only related to e-commencing but also the other social trading sectors like Proctor
and Gamble, Costco Wholesale, BMW, Berkshire Hathaway, Star Bucks, Coca-Cola
etc. All of these world leading business belong to a dynamic trading sectors but the
inclusion of total quality management helped them survive their potential competitive
pressure and to process successively.
In 2014, Duran and his co-workers conducted a study on organizational quality
management practices. In Eskişehir, dynamic business processing carried on with
relatively fluctuating commercial shares. So, the companies had applied the
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administrative and managerial total quality management protocols so as to assure
their progressive business performance (Duran et al. 2014). They have concluded that
the effectual implication of total quality management within the concerned business in
Eskişehir resulted in three major business productivities that are enlisted below:
I. The Progressive Quality Assurance
II. Improved Culture Based Business Quality
III. Enhanced Performance Quality Status
1.9 CONCLUSION
The study of total quality management within international Amazon.com Inc. produce
lots of qualitative productivities that enhanced their gross market share. Total quality
management includes various fluctuating parameters needed to be assimilated within
an organization so as to assure performance increment. Some of these factors didn’t
process positively within Amazon.com. However, after opting this phenomenon
management process, the company regularly monitor their profit performance on the
comparative scale. In this way, possibilities for productive business advancement
improved and produce major networking share. Additionally, Amazon.com Inc. have
reported that their management sector possessed to have a strong responsibility for
the constructive disclosure of net production share. We also have thoroughly
discussed the company’s financial business statistics in this paper. These progressing
statistics gave the clear beneficial impacts of total quality management within the
concerned organization. Hence we have concluded that the implication of total quality
management within Amazon.com Inc. brought lots of positivity’s for the company. So,
it is suggested that the further progression can be achieved thru constantly improving
this management sector as well.
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EFFECTUAL IMPLICATION OF TOTAL QUALITY MANAGEMENT WITHIN AMAZON.COM INC.

  • 1. D a t e d : 1 5 t h D e c e m b e r , 2 0 1 5 Author: Sadia Rahat EFFECTUAL IMPLICATION OF TOTAL QUALITY MANAGEMENT WITHIN AMAZON.COM INC.
  • 2. EffectualImplicationofTotalQualityManagement WithinAmazon.ComInc. 2 TABLE OF CONTENTS 1.1 INTRODUCTION...................................................................................................3 1.2 FUNDAMENTALS OF TOTAL QUALITY MANAGEMENT (TQM) ........................4 1.3 CASE STUDY: APPLICATION OF TOTAL QUALITY MANAGEMENT (TQM) WITHIN AMAZON.COM INC...........................................................................................8 1.3.1 TOTAL QUALITY MANAGEMENT (TQM) WITHIN AMAZON.COM SUPPLY CHAIN...........................................................................................................9 1.3.2 VALUE PROPOSITION ................................................................................10 1.3.3 DROP SHIPMENT MODEL ..........................................................................10 1.3.4 STRATEGICALLY MANAGING SUPPLY CHAIN.........................................11 1.4 STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT) ANALYSIS.....................................................................................12 1.5 FACTS AND FIGURES .......................................................................................15 1.6 CRITICAL ANALYSIS OF TOTAL QUALITY MANAGEMENT (TQM) WITHIN AMAZON.COM................................................................................................17 1.7 LESSONS LEARNED..........................................................................................18 1.8 APPLICATION OF TQM AT GLOBAL SCALE ....................................................19 1.9 CONCLUSION ....................................................................................................20 1.10 BIBLIOGRAPHY..................................................................................................20
  • 3. EffectualImplicationofTotalQualityManagement WithinAmazon.ComInc. 3 1.1 INTRODUCTION Today’s marketing world have been advanced up to the production skies thru constantly consuming lots of technological and management tools. Business with least risking errors and maximum production goals used to be considered as the most productive one in twenty-first century global markets. Here, each day is a new day of potential business transactions in an exclusively build competitive race so as to grab maximum commercial share. The technological advances also upgrade the concerned production race thru novel commercial practices with integrated smart innovative ideas (Narendula 2012). The justified channeling of this much business advancement is the core economic understanding that enables even a laymen to produce maximum good with enough marketing share, constructively. On the other hand, lack of understanding with such business fundamentals proved to be a marketing disaster as well. International business investors needed to comply all of the concerned business goals so as to produce, compete, survive and succeed in such congested economic markets. Business personnel’s tried to achieve the status of being independently unique and innovatively productive in concerned economic competitive markets. In this regard they produce some fundamental business practices to achieve this advance status. So, the term ‘Quality Management’ coined in this context as quality management is itself a productive parameter that enhanced not only the production compliance but also the customer compliance (Soediono 1989a). Different scholars describe this term on different explanatory spectrum but most of them are agreed on the inclusion of cooperative business operations, error free commercial goods and customer satisfactory economic status (Gold 2015). Later on, the term’s subjective grade improved from quality management to simple total quality management encompassing wide spectrum of business management fundamentals such as goods successive transportation, demand and potential forecasting, customer service, inventory and respective innovative measures, goods and product distribution, commercial procurement, strategic operational planning, risk free production, barriers free business communication etc. The process of implicative business total quality management rolled under the umbrella of thoughtful managerial operations thru bunch of quality humanoid services in terms of performance status up gradation (PR 2015). The relational aspect of this productive
  • 4. EffectualImplicationofTotalQualityManagement WithinAmazon.ComInc. 4 phenomenon approach is the cooperative integration of humanoid services with applicative economic production. Additionally, there are some administrative guidelines that used to improve individual compliance within the concerned business sector (Soediono 1989b). If the individual capacity building didn’t involve in this commercial advancements, the core task of total quality management became difficult and even impossible to achieve. Back in early days, the term quality management used for the justified understanding of military based commercial orders for respective goods and services. In this way, quality management was to improve the forces performance status with productive yield of required military goods (Yang et al. 2015). However, the todays descriptive mean of this term expand its explanatory wings from simple quality management to highly assimilated total quality management logistics. Thru this physical up gradation not only the administrative goals possessed to have a more successive potential but, also the personal goals for the contracted task fulfillments (Kousha & Thelwall 2011). Usually the production status of a business net operations statistically calculated after a certain time period like monthly, quarterly, biannually, annually basis etc. So, to measure these respective performance status, company’s tried to play thoughtfully with advance managerial moves and technological innovative productions simultaneously. 1.2 FUNDAMENTALS OF TOTAL QUALITY MANAGEMENT (TQM) As we have already discuss that the business performance status used to be upgraded through appropriate total quality management implication within concerned business sector (Topalović 2015). These quality management programs consist over a range of certain phenomenon parameters. Such contributory fundamentals that needed to be concerned substantially before introducing an appropriately fashioned constructive total quality management in an organization so to be maximize business net profit share (Cetindere et al. 2015). Some of these important parameter along with their respective economic status are tabulated below: Table 1.2.1- Fundamentals of Total Quality Management (TQM) and Their Respective Economic Status
  • 5. EffectualImplicationofTotalQualityManagement WithinAmazon.ComInc. 5 Fundamentals of Total Quality Management (TQM) and Their Respective Economic Status TQM Fundamentals Status Demand And Forecasting This process basically range over the spectrum of business predictive demand for future products and respective contacted items (Ritala et al. 2014). The demand and corresponding product contract forecasting basically drive out from the current and past business events. The past event dictate the need of future trendy demands that helps managerial sector in fabricating their marketing strategic layout. Inventory Business inventory is another important production sector where the assurance of quality is the major concern for the progression of maximized production yield (Srima et al. 2015). Business inventory is basically consider as the net share of overall business profit from the current marketing assets that needed to be valued and counted precisely so as to determine net yield production. Most of the business inventories used to be account on daily business benefit with precise loss count as well (Ahmad et al. 2014). That is why, business inventories and its respective instruments considered as one of the basic total quality management fundamental. Transport The description of this phenomenon process is the successive transportation of product from its raw form to the complete product form, from manufacturing factory to the ultimate retailer or customer, respectively. Transportation also fluctuate over the dynamic field of transporting mediums such as air, water, road, railways etc. (Benavides-Velasco et al. 2014). Total quality management assures the cost of such transportation should remain on its minimum however the product quality status that is being transported should be maximum.
  • 6. EffectualImplicationofTotalQualityManagement WithinAmazon.ComInc. 6 Customer Service Customer care services are the absolute total quality management sector that build up for the assurance of respective business compliance. This helps company for the successive acquisition of their potential customer trust and confidence. Distribution Distribution is the prime fundamental of total quality management process as it relates the constructive distribution of marketing products among its potential buyer markets (Hertig & Davies 2008). The channeling of product distribution started from its manufacturing origin and finally ended up over the lap of customer satisfaction. Procurement Procurement is a vast field of total quality management as it range over the spectrum of business process and economic transaction (Izvercian et al. 2014). The process basically covers the purchasing of business goods thru major commercial transaction in order to assimilate them in business potential assets and used them constructively, afterwards. Strategic Planning A thoughtfully designed business strategy lead the company toward constant progression (F.F. & Pitard 2009). That is why scholars focused on the mandatory processing of business strategic planning so as to assure marketing development proactively. Risk Strategic business planning along with business risk assessment are two major planning tools of total quality management (Militaru et al. 2013). The business risks revolves under the umbrella of potential profit and loss that substantially impact the business productive outcomes (Dahil & Karabulut 2013). So the scholars and other business experts suggested to have a thorough business risk assessment analysis so as to extract probable risks proactively and management them efficiently. (Keblis et al. 2014) All of the above discussed total quality management fundamentals are significantly important for the productive maximization of business manufacturing yields. There is
  • 7. EffectualImplicationofTotalQualityManagement WithinAmazon.ComInc. 7 another economic term the Total Productive Maintenance (TPM) that found very much important in this regard (Kahreh et al. 2014). But, the integration of total quality management along with its widespread integrated fundamentals are of highly significant in the context of its effectual productive outcomes. Total quality management provide companies their way in to the competitive global leads with high profile TMP. The potentialities of this process also debated within quality management literature as a comparative production analysis (Martel 2015). Each debated fundamental has had concluded with substantial standing values as all effected the business performance status at any production level. Workforce capacity building, administrative and managerial leadership training, customer satisfaction, confidence building and trust compliance are some of the major management fruits that should be assured by the concerned total quality management. In this paper, we have studied the Amazon.com Inc. productive quality management supply chain tactics. So, the company’s focused on its net employee’s count in terms of their net productivity with respect to the progressing number of customers count (Suwandej 2015). As Amazon’s business network have had been spread over the inter-continental boundaries, so its employees count along with its customers count has also been increased. The number of Amazon’s employees increased from 2007 to 2014 has also been tabulated below: Table: 1.3.2- Amazon.Com Inc. Potential employees count from 2007 to 2014 AMAZON.COM INC. POTENTIAL EMPLOYEES COUNT FROM 2007 TO 2014 Year Employees Count 2007 17,000 2008 20,700 2009 24,300 2010 33,700 2011 56,200 2012 88,400 2013 117,300 2014 154,100
  • 8. EffectualImplicationofTotalQualityManagement WithinAmazon.ComInc. 8 (Statista 2015) 1.3 CASE STUDY: APPLICATION OF TOTAL QUALITY MANAGEMENT (TQM) WITHIN AMAZON.COM INC. Amazon.com Inc. was founded in 1995 by Mr. Jeff Bezos. It was one of the first e- commencing website that not only started business online but also run it successfully. There were lots of acquisitions occurred over the years but, the appearing activities of this online e-shopping website is absolutely remarkable (Ding 2015). Washington, USA considered to be its founding house where it was started its e-commerce for books transactions, particularly. Amazon.com Inc., was initially started with online books transactions but, as they get their foots established in e-commerce markets, they spread their wings onto other domestic goods including furniture, DVDs, toys, CDs, video players, jewelry household appliances etc. (Amazon 2015). According to one estimate, amazon currently enjoys to have more than one-lac fifty-four thousand one-hundred business employees. They active customers count also figured more than one hundred and fifty-two millions with about more than forty-eight million annual revenue generation. Its revenue generation rate recorded to be higher than world most renowned website ‘google.com’. Additionally, the concerned website rank over sixteenth, on the account of global network trafficking (Amazon 1995). Amazon shipping spectrum also ranged over the spatial boundaries of about two-hundred international countries. However, their main branches along with package preparing centers spread within six main countries. Amazon have a separate, independent website for particular countries enlisted below: I. United Kingdom II. Canada III. France IV. Unites States V. Italy VI. Germany VII. Spain VIII. China IX. Brazil X. Japan XI. India
  • 9. EffectualImplicationofTotalQualityManagement WithinAmazon.ComInc. 9 Amazon.com Inc. covered a long progressing journey from the date it was established to still the current business day. Their spectacular success is specifically regarded with its strong strategic moves (Amazon.com 2015). They followed the keys of quality management so as to assure product quality, transparent transaction and performance status as well. Its total active customers count range from one-lac eighty-thousand to about fifteen lac one thousand transacting customers. The company used to make thousands of productive deals on annual basis. A proportional enhancement share of Amazon.com customer count was about 738% (Amazon 2014a). Similarly, the company enjoys a relatively higher status of continues customers range from 46% - 58% from 1996 to 1997. 1.3.1 TOTAL QUALITY MANAGEMENT (TQM) WITHIN AMAZON.COM SUPPLY CHAIN The implication of total quality management within Amazon business processing is the prime success factor of company. The Amazon annual report- 2014 showed their concerns for quality management practices (Amazon.com 2014b). The competitive business strategy opted by Amazon.com Inc., is the total quality management along with its effectual working factors that are enlisted below: I. Thoughtfully fabricated Strategic policies and respective business moves II. Quality assured successive product Distribution and respective product channeling (Amazon 2014b) III. Procurement and innovative transacting acquisitions IV. Business risk assessment V. Speedy product transportation VI. Quality maintenance and respective reliability assurance VII. Satisfactory customer care services VIII. Accurate determination of product projective demands IX. Contract forecasting within Amazon.com processing spectrum X. Management of Amazon.com worldwide inventories XI. Proactive risk management and thoughtfully fashioned risk minimization tactics
  • 10. EffectualImplicationofTotalQualityManagement WithinAmazon.ComInc. 10 All of these above mentioned factors have their own contributive effectual outcomes. Amazon.com like to manage their inventories so as to assure maximum manufacturing yields. Fulfillment by Amazon (FBA) is their marketing inventory as they manage quality status at this inventory for their potential marketing sellers (Amazon Web Services 1995). So, lots of international sellers used this inventory for their product substantial transactions. 1.3.2 VALUE PROPOSITION The amazon.com strategically aligned its value proposition into four major podiums that are enlisted below: I. Purchasing and time convenience II. Variety to select with best specifications III. Price suitability IV. Customer friendly services The four major value propositions made the company’s quality managing ventures appropriately ensure. The significant quality management within twenty-four hours online business is something very much difficult to accomplish. The e-books site also made logically upgraded so to provide readers twenty-four hours uploading and respective downloading facilities. Product recommendation, upgraded reviews, contact service facilities etc. all are embedded within amazon.com quality assuring value propositions. Amazon.com Inc. also recognized as one of the most procuring networking business. Moreover, the nature of constant commercial procurement leads this successful business on the peak of production maximization (Amazon Web Services 2014). 1.3.3 DROP SHIPMENT MODEL This model specifically implied by Amzon.com for the successful achievement of quality based articles shipping to their ordered buyers. This strategic model played as the retailer transfer the ordered articles to their manufactures or the provided wholesalers so as to assure qualitatively managed article shipping to the potential buyers, respectively. The price differences managed by the retailer and the
  • 11. EffectualImplicationofTotalQualityManagement WithinAmazon.ComInc. 11 manufacturer arranged in terms of retail based profit prices. The alliance based inventory managing enhanced the Amazon.com constructive quality reputation. 1.3.4 STRATEGICALLY MANAGING SUPPLY CHAIN Amazon.com always played in a tactical fashion where each and every supply chain bound under specially devised methodological measures. Amazon.com used to manage their price friendly services through making specific strategic alliance with other multinationals. In order to have an appropriate associate, company usually followed the customer care services provided by its proposed ally independently. Some of the most often recognized Amazon.com allies are enlisted below: I. Pets.com II. Greenlight.com III. Della.com IV. Living.com V. Gear.com VI. Drugstore.com VII. Ashford.com VIII. HomeGrocer.com Amazon never resist to add new and potentially convincing products to their variety’s list. Supplementary to such high profile business tactics, Amazon.com Inc. also possessed to have a productive value conservation and individual dependability assurance, quick and efficient articles transference, precise determination of artifacts projective loads, contract predicting in the Amazon.com interior treating continuum, adequate customer compliance etc. (Amazon.com 2014a). So, here we have enlisted those tactical scale on which Amazon.com Inc. can positively access their potential business quality management and performance improvement constructively. Table: 1.3.1- Total Quality Management Implicated Fundamentals Within Amazon.Com Inc. Total Quality Management Implicated Fundamentals Within Amazon.Com Inc. Total Quality Management Fundamental Status
  • 12. EffectualImplicationofTotalQualityManagement WithinAmazon.ComInc. 12 Administrative and Managerial Controls `Implication of goals oriented administrative tactics `Task acceptance business models `Decisive and determined managers `Honest and efficient administration Customer Compliance `Responsible administration in terms of public satisfaction `Consumer oriented service provision spectrum `Barriers of communication channel so as to receive constructive and destructive potential feedbacks (Holmes 2015) `Assure customer trust status for the efficient provision of product repairing services Task Management `Determined administration in order to assure existed and predictive task `Conductance of capacity building for the efficient and progressive task oriented processing (Ziegel 2015) Quality Enhancement `Upgraded service quality `Assure delivered product quality `Safety assurance and return facility `Upgraded website technological features Transportation and Product Distribution `Upgraded product distributive measures `Quick and efficient product delivery `Constantly make efforts to lower their shipping time with progressively improved product quality (Amazon 2014a) 1.4 STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT) ANALYSIS Amazon claimed to comply all of the logistic total quality management potentialities that have had been proposed from academic scholar and business experts, proactively. They also welcomed the smart innovative ideas for the constant
  • 13. EffectualImplicationofTotalQualityManagement WithinAmazon.ComInc. 13 improvement of their production band. Similarly, Amazon.com is one of the best international corporation that specially assured the establishment of a thoughtfully fabricated company’s overall policy (Amazon Web Services 2015). This is the reason why they have had implemented the total quality management program within their managerial sector. Additionally, the business administrations suggested to have a detailed risk assessment audit in order to extract out all of the destructive business potentialities. So, the company used to conduct regular risk monitoring and proactive risk management for the projective assurance of Amazon.com Inc. succession. So, here we have presented a tabulated form of amazon.com detailed SWOT analysis, below: Table: 1.4- Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis of Amazon.Com Inc. STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT) ANALYSIS OF AMAZON.COM INC. PARAMETER STATUS Strengths Thoughtfully administered Amazon’s technological up gradation assure the quality managing services within amazon.com Inc. The company offered twenty-four hours facilitative services to their potential buyer along with a strong critical product review so that the performance status of the articles provided by the company could be transparently ensured. Additionally, company offered quick contact services so that the online transactions should never face the faulty processing breaks. Being the first e-commerce website, it possessed to have a wide and correspondingly strong product distribution channel that specifically improved the customer trust status, constructively (Chiles & Dau 2005). The product offered by this website also very much fluctuating on the price
  • 14. EffectualImplicationofTotalQualityManagement WithinAmazon.ComInc. 14 scale so as to provide equal purchasing opportunities to all ranks of the society. Weaknesses Increased oil taxation along with constantly increasing fuel prices increased the risk of shipping flaws within Amazon.com productive delivery services. Along with this processing, Amazon.com need to assure quality based article shipping for which they have to rely upon contracted delivery companies. This possessed to have a greater risk for the company as a minute flaw within article shipping or the shipped product quality could destroy the company’s honest repute. Additionally, we have had discussed that the Amazon.com is very much welcoming in terms of adding verity’s of brand’s articles within this offered product spectrum. This phenomenon attitude also posed a greater, quality based risk potential for the company as the assurance of product quality also guaranteed by the company that could also destroy its repute. Opportunities Being the first online shopping website, the company enjoyed a greater distribution channel that means the company enjoyed a highly expansive impact factor. Amazon.com is the name of quick and efficient quality based shipping service that included millions of product variety on its offered spectrum. So, its net count of daily visitors also crossed the opponent’s customer limits. This, not only enhanced the running capacity of the company but, also the net share and respective balance, successively. Additionally, company expanding their inventories and respective spatial coverage spectrum so as to assure greater revenue generation. Lately, Amazon.com also working on to be established within Asian commercial regimes.
  • 15. EffectualImplicationofTotalQualityManagement WithinAmazon.ComInc. 15 Threats Constantly increasing fuel prices used to be added up within product shipping charges that gives the deliver a negative impact. So, the customers preferred to visit the local markets and purchased from them on price friendly rate. This, directly impact the company’s overall business transactions. In this regard, Amazon.com have to limit their delivery charges within affordable price friendly range that sometimes become very much difficult. Additionally, the competitive business pressure also threatened the company’s viability, negatively. (Sabitha 2014) 1.5 FACTS AND FIGURES Amazon.com still found difficulties to tackle their net competitive pressure. Their potential business competitors used to have greater number of resources, prolonged marketing histories and a higher brand recognition. But, what Amazon.com Inc. got is the availability of effectually implemented total quality management logistics that make its number high in the hierarchy of competing world business leads (Keblis et al. 2014). Although, the tactically adjusted aggressive pricing is a smart business moves but, Amazon.com used to move with customer satisfactory demands so as to make them permanent and enhance their predictive forecasting even more increased in numbers, respectively. So, here we have tabulated some of the company’s statistically aligned facts and figures that showed the net production of company thru the effectual implementation of total quality management within business potential processing, below: Table 1.3.2- Total Quality Management and Productive Net Yield of Amazn.Com Inc. Total Quality Management and Productive Net Yield of Amazn.Com Inc. Facts Figures 2010 2011 2012 2013 2014
  • 16. EffectualImplicationofTotalQualityManagement WithinAmazon.ComInc. 16 Net Production $ 1152 Million $ 631 Million $ 39.0 Million $ 274 Million $ 241 Million Basic Profit Per Share $ 2.58 Million $ 1.39 Million $ 0.09 Million $ 0.60 Million $ 0.52 Million Diluted Profit Per Share $ 2.53 Million $ 1.37 Million $ 0.09 Million $ 0.59 Million $ 0.52 Million Net Business Sale $ 1152 Million $ 631 Million $ 39.0 Million $ 274 Million $ 241 Million Operations Based Business Income $ 1406 Million $ 862 Million $ 676 Million $ 745 Million $ 178 Million Weighted Basic Profit Per Share $ 447 Million $ 453 Million $ 453 Million $ 457 Million $ 462 Million Weighted Diluted Profit Per Share $ 456 Million $ 461 Million $ 453 Million $ 465 Million $ 462 Million Net Cash Flow $ 3495 Million $ 3903 Million $ 4180 Million $ 5475 Million $ 6842 Million Procurement Cash Flow $ 979 Million $ 1811 Million $ 3785 Million $ 3444 Million $ 4893 Million Free Finance Flow $ 2516 Million $ 2092 Million $ 395 Million $ 2031 Million $ 1949 Million Total Business Assets $ 18797 Million $ 25278 Million $ 32555 Million $ 40159 Million $ 54505 Million
  • 17. EffectualImplicationofTotalQualityManagement WithinAmazon.ComInc. 17 Net Business Obligations $ 1561 Million $ 2625 Million $ 5361 Million $ 7433 Million $ 15675 Million (Amazon 2014a) Though, the major source of revenue generation is the successive transaction of Amazon.com deals that placed online. But, the network marketing played a role of third party potential sellers that make the process quite complex. However, Amazon.com constantly uplifting successive productive yield thru the effective implementation of total quality business management. Gross net production used to be estimated by overall website’s transactions (Statista 2015). Amazon.com Inc. also build up to offer other customer friendly services to enhance quality assurance and business performance simultaneously. Some of these customer friendly services offered by amazon.com Inc. are enlisted below: I. Amazon Web Services (AWS) II. Articles Packaging and Respective Orders Fulfillment III. Books and Novels Publishing IV. Entertaining Digital Media Content V. Commercial Advertising VI. Brand Based Debit Cards 1.6 CRITICAL ANALYSIS OF TOTAL QUALITY MANAGEMENT (TQM) WITHIN AMAZON.COM After discussing all of the operational activities that have been conducting at and thru Amazon.Com Inc. we found some of the limiting probabilities that possessed to have a strong potential for probable business regression. Amazon.com Inc. itself found these key contributory point that needed to be focused further advancements. First of all, one of the most significant potential impacting factor is the quality maintenance and consistent up gradation (Ritala et al. 2014). Though Amazon.com Inc. have had implemented total quality management but, they still needed to hire best managerial control to understand the management requirement and full fill them efficiently. The
  • 18. EffectualImplicationofTotalQualityManagement WithinAmazon.ComInc. 18 experienced administrative and managerial controls happened to be the best proactive means that can helped to avoid any disrupting business event and also managing the predictive economic risks, proactively. Another major problem Amazon.com Inc. is facing today is to cope up with their novel investments as it is part of Amazon’s strategic policy to welcome each of new introducing products to their company. But, the investment profitability on the account of such novel artifacts is not necessarily assured (Ding 2015). For that, they have had introduced the total quality management but, the potential assurance of business profitability in this particular articles inclusion sector is not substantially satisfying. Although, Amazon.com also introduce technological advances to their website constantly but, the management of such fluctuating advances is quite a complex process. Total quality management provides control over product and all of its sale related logistics implemented measures. But, the cloud of networking technology is something that could not be properly manage up by this particular platform. For this purpose, Amazon.com administration has had been hiring some kind of technologically strong managing group like cloud computing etc. but then again the point of total management application seems somewhat going to fail here. 1.7 LESSONS LEARNED After discussing the application of total quality management within world famous Amazon.com Inc. business we have found some significant business lessons that we have enlisted below: Strategic inclusion of fresh arrivals within existing e-commerce business is a necessary pre-requisite so as to being recognized as an innovatively smart business Inc. Application of total quality management within any large and even small scale business is very important progressive point as it helps enhance the quality, profitability, and durability and performance status of company, respectively. Tactically fashioned business moves is something that each and every business economy should follow so as to assure their constant business succession.
  • 19. EffectualImplicationofTotalQualityManagement WithinAmazon.ComInc. 19 Despite the fact that the Amazon web services followed their methodological tactics but, still the regular updates regarding these tactics should be included within actual business moves. Individual capacity building along with regular business auditing is another necessary pre-requisite that not only Amazon.com but also the other networking and spatial business economies needed to follow for their effective marketing succession. 1.8 APPLICATION OF TQM AT GLOBAL SCALE Total quality management is a successful operating quality management process that helped out various business economies in assuring and enhancing respective business productivities. Potential marketing anomalies that we have just discussed above should be specially consider but, the pros and cons analysis of this system ranked it a successful progressing one. Amazon.com is a worldwide e-commencing business and its marketing spectrum is quite an intercontinental one (Amazon 2014a). Their business inventories enjoys a substantially large coverage area. This makes their business productive and sophisticated at the same time. However, the regular process monitoring, annual discussion meetings, managerial accountabilities etc. all make the business a successive lead as a whole. Lots of other business economies not only related to e-commencing but also the other social trading sectors like Proctor and Gamble, Costco Wholesale, BMW, Berkshire Hathaway, Star Bucks, Coca-Cola etc. All of these world leading business belong to a dynamic trading sectors but the inclusion of total quality management helped them survive their potential competitive pressure and to process successively. In 2014, Duran and his co-workers conducted a study on organizational quality management practices. In Eskişehir, dynamic business processing carried on with relatively fluctuating commercial shares. So, the companies had applied the
  • 20. EffectualImplicationofTotalQualityManagement WithinAmazon.ComInc. 20 administrative and managerial total quality management protocols so as to assure their progressive business performance (Duran et al. 2014). They have concluded that the effectual implication of total quality management within the concerned business in Eskişehir resulted in three major business productivities that are enlisted below: I. The Progressive Quality Assurance II. Improved Culture Based Business Quality III. Enhanced Performance Quality Status 1.9 CONCLUSION The study of total quality management within international Amazon.com Inc. produce lots of qualitative productivities that enhanced their gross market share. Total quality management includes various fluctuating parameters needed to be assimilated within an organization so as to assure performance increment. Some of these factors didn’t process positively within Amazon.com. However, after opting this phenomenon management process, the company regularly monitor their profit performance on the comparative scale. In this way, possibilities for productive business advancement improved and produce major networking share. Additionally, Amazon.com Inc. have reported that their management sector possessed to have a strong responsibility for the constructive disclosure of net production share. We also have thoroughly discussed the company’s financial business statistics in this paper. These progressing statistics gave the clear beneficial impacts of total quality management within the concerned organization. Hence we have concluded that the implication of total quality management within Amazon.com Inc. brought lots of positivity’s for the company. So, it is suggested that the further progression can be achieved thru constantly improving this management sector as well. 1.10 BIBLIOGRAPHY Abdallah, A.B., 2013. The Influence of “Soft” and “Hard” Total Quality Management (TQM) Practices on Total Productive Maintenance (TPM) in Jordanian Manufacturing Companies. International Journal of Business and Management, 8(21), pp.1–13. Available at:
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