By: Michele Morehouse Mouzawar Chami Olena Sadovnik

JULY 1994 What Is Amazon…? Mission Statement: “Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.” Headquarters: Seattle, Washington Amazon started as a large online bookstore and seller. Over the last decade Amazon has expanded its horizon’s. Website offers millions of books, movies, games, and music, electronics and other general merchandise categories,  including apparel and accessories, auto parts, home furnishings, health and beauty aids, toys, and groceries. For technology they offer: download e-books, games, MP3s, and films to their computers or handheld devices, including Amazon's own portable e-reader, the Kindle Products and Services offered: self-publishing, online advertising, e-commerce platform, hosting, and a co-branded credit card. JULY 1994

Philosophy: Long Term Our customers Investment Cash Culture Employees 1. It's All About the Long Term 2. Focus relentlessly on our customers Example: - AmazonVine Program: This program consists of consumer team members who review products. If they promise to write about the products, they can earn free products. Amazon does not eliminate the negative comments for review because this allows users to look for signs of bias. 3. Make bold investment decisions in light of long-term leadership 4. Focus on cash 5. Work hard to spend wisely and maintain our lean culture 6. Focus on hiring and retaining versatile and talented employees Example: Statistics As we stated in our 1997 Letter to Shareholders, "A fundamental measure of our success will be the shareholder value we create over the long term." From the very beginning, our emphasis has been on the long term and as a result, we may make decisions and weigh tradeoffs differently than some other companies. Accordingly, it is important for you, our shareholders, to understand our fundamental management and decision-making approach so that you may ensure that it is consistent with your own investment philosophy. We will continue to: Focus relentlessly on our customers. Make bold investment decisions in light of long-term leadership considerations rather than short-term profitability considerations. There is more innovation ahead of us than behind us, and to that end, we are committed to extending our leadership in e-commerce in a way that benefits customers and therefore, inherently, investors -- you can't do one without the other. Some of these bold investments will pay off, others will not, but we will have learned a valuable lesson in either case. Focus on cash. When forced to choose between optimizing the appearance of our GAAP accounting and maximizing the present value of future cash flows, we'll take the cash flows. Work hard to spend wisely and maintain our lean culture. We understand the importance of continually reinforcing a cost-conscious culture. Focus on hiring and retaining versatile and talented employees, and weight their compensation to significant stock ownership rather than cash. We know our success will be largely affected by our ability to attract and retain a motivated employee base, each of whom must think like, and therefore must actually be, an owner. We are firm believers that the long-term interests of shareholders are tightly linked to the interests of our customers. If we do our jobs right, today's customers will buy more tomorrow, we'll add more customers in the process, and it will all add up to more cash flow and more long-term value for our shareholders. As Amazonians, we thank you, our owners, for your support, your encouragement, and for joining us on this adventure. If you're a customer, we thank you again!

COMPANY PROFILE: CEO (CHIEF EXECUTIVE OFFICER): Jeffrey P. Bezos CFO (CHIEF FINANCE OFFICER): Thomas J. Szkutak Senior Vice President: Steven Kessel VP, General Counsel and Secretary: David A. Zapolsky

Consumer Merchant Vendor Supplier Investors Employees STAKEHOLDERS

AMAZON

Would you work for Amazon?

MICHELE’S PERCEPTION

PRO-AMAZON

Michele’s Main Points: Publishing Imprint Programs Social Media Innovations Corporate Social Responsibility

Livre - FRENCH Book - ENGLISH AmazonEncore use data, such as customer reviews to identify exceptional books and authors that show potential for greater sales. Examples: AmazonCrossing is a program that focuses on translating foreign language books into English Book - ENGLISH

I love this book! In Amazon’s newer Kindle editions: - Twitter - Facebook Amazon customer’s can post notes on the books they are reading

- Amazon raised $35 million in disaster relief > 10 years - Creates software for non profits to use to raise donations - Software enables non profits to generate leads & appeal to donors Some critique’s of Amazon state that Amazon is not truly giving. Another of Amazon’s Corporate Social Responsibility programs that refutes this is: False Amazon is a contributor to reducing the environmental impact: Kaizen Program: dedicated to identifying waste and design alternative solutions that are more energy efficient Example: Amazon’s Environmentally Friendly Packaging (100% Recyclable) $35 Million

+ 188 Local Contributions

100% Environmental Impact Another of Amazon’s Corporate Social Responsibility programs that refutes this is: False Amazon is a contributor to reducing the environmental impact: Kaizen Program: dedicated to identifying waste and design alternative solutions that are more energy efficient Example: Amazon’s Environmentally Friendly Packaging (100% Recyclable) 100%

Chami’s Perception

Amazon

Too Diversified in it’s online grocery Chami’s Main Points: Too Diversified in it’s online grocery Taxes & Physical Presence Lack of Corporate Social Responsibility As a PR person, I am less likely to work for Amazon.com for three main reasons.   the company is very diversified in its online grocery the company does not collect taxes in many states where it does not have physical presence the multibillion company is not generous enough towards its communities

Is this fresh? the company is very diversified in its online grocery   Claim: the company cannot control the quality of all the products it sells to customers in terms of trustworthiness and that can generate in crisis WHY? Can Amazon control the quality of the groceries they sell on their marketplace?

the company does not collect taxes in many states where it does not have physical presence   Claims: sales taxes losses on e-commerce is important in many states  Economical Stimulation the company has tax affairs in several countries around the world Where is Amazon?

the multibillion company is not generous enough towards its communities   Claims: it gives less than other companies to its communities in Seattle. Give MORE!!!!! It can harm the company’s reputation STINGY!

Olena’s Perception

ANTI-AMAZON

Aggressive Managerial Behavior Olena’s Main Points: Work Ethics Aggressive Managerial Behavior 1) Work ethics  2) Aggressive managerial behavior 3)Appalling online newsroom Appalling Online Newsroom

Principles… Values… Health & Safety 1) Work ethics - Poor treatment of employees  - Break of health and safety rules, staff work in temperatures as high as 114 °F (46 °C) in Allentown, PA Flaws in HR Part-time job contracts Example: What flaws? 1. Temporary Positions 2. New Hire Communications

Vs. 2) Aggressive managerial behavior Amazon vs Barnes & Noble over a one-click patent issue: controversy/ copyright infringement

2008 ??? 3)Appalling online newsroom No content, empty sub-pages No structure  - No information update since 2008 in many cases Example: Press Releases Corporate Giving 2008 ???

WHAT WILL YOU CHOOSE?