Companies Merging Essay

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1. What potential organizational changes might result from the acquisition by Amazon? Organizational culture can be described as a set of core beliefs, values, and behaviors shared by all members of a company. It is influenced in many ways such as tradition, personal characteristics, interaction of employees, and more importantly, leadership. Zappos.com has proved to be so successful that Amazon.com has offered to take it over for $900million. Zappos will benefit from being in the Amazon fold and will be able to reduce its overhead and compete more efficiently for customers' dollars, says Jeff Savastano, founder of e-commerce advisory firm Trecuori Group (Parry 2009 para. 10). Zappos.com is just an example of one of the many organizations that have fostered their organizational culture in efforts to be a more successful business. This acquisition can lead to organizational changes within the business whether it is a new operations system or simply a new policy, but if the employees are not on board with the proposed change, it will not be effective. However, a culture that is made to work through people will react positively to any implementation no matter how many changes it will bring. Zappos.com has a proven low turnover rate and employees report being excited and challenged by their work. The director of the human resources department says that employees being happy and productive are related. She also feels that the relationship between employees reflects the relationship between customers and the employees. They encourage working together so if Amazon can continue this motto it will have a successful outcome. 2. Why do you think Zappos approach is not utilized more often? In other words, what are the challenges to these techniques? . Whenever a business is faced with the prospects of a merger, whether it is initiating the offer or another

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