The Internal Organisational Environment in Amazon

Appendices

Appendix 1—Comparison on Reviews Taken from Amazon’s Employees

Former safety and logistics manager review	• Long working hours • Terrible management • Good Salary • High Stress • Highly political working place (Indeed, 2021a, 2021b, 2021c, 2021d, 2021e, 2021f, 2021g, 2021h) • No bonuses for extra work (Glassdoor, 2021a, 2021b, 2021c, 2021d) • Not a long-lasting experience (Indeed, 2021a, 2021b, 2021c, 2021d, 2021e, 2021f, 2021g, 2021h)	Current logistics manager review	• Long working hours • Highest paid job withing this sector (Glassdoor, 2021a, 2021b, 2021c, 2021d) • Poor management • High stress • Political place to work within (Indeed, 2021a, 2021b, 2021c, 2021d, 2021e, 2021f, 2021g, 2021h) • Benefits for extra work (Indeed, 2021a, 2021b, 2021c, 2021d, 2021e, 2021f, 2021g, 2021h)
Former Amazon operations manager review	• Health insurance, High salary, Job training (Indeed, 2021a, 2021b, 2021c, 2021d, 2021e, 2021f, 2021g, 2021h) • Poor career growth • Unreasonably high management/leadership expectations (Ambition Box, 2021) • Pathetic work balance • High Stress level	Current Amazon operations manager review	• Health insurance, Good salary • Job Training (Ambition Box, 2019) • Opportunities for international re-allocations • Shifting standards for performance (Indeed, 2021a, 2021b, 2021c, 2021d, 2021e, 2021f, 2021g, 2021h) • No work/life balance • High stress (Glassdoor, 2021a, 2021b, 2021c, 2021d)
Former Amazon logistics associate	• Best entry paying job (Indeed, 2021a, 2021b, 2021c, 2021d, 2021e, 2021f, 2021g, 2021h) • Long working hours • Physically/Mentally draining • Poor management • Customers’ satisfaction is at the cost of the employees (Indeed, 2021a, 2021b, 2021c, 2021d, 2021e, 2021f, 2021g, 2021h)	Current logistics delivery associate	• High salary + benefits (Indeed, 2021a, 2021b, 2021c, 2021d, 2021e, 2021f, 2021g, 2021h) • Long working hours • Poor management • Physically draining work • Easy work • Customers’ satisfaction is at the cost of the employees (Indeed, 2021a, 2021b, 2021c, 2021d, 2021e, 2021f, 2021g, 2021h)
Former Amazon marketing manager	• No better place to learn and improve • Amazing product and projects (Glassdoor, 2021a, 2021b, 2021c, 2021d) • Fastest-growing company • Heavy workload • Busy environment; Inflexible working hours (Indeed, 2021a, 2021b, 2021c, 2021d, 2021e, 2021f, 2021g, 2021h) • High Toxicity and Poor management (Indeed, 2021a, 2021b, 2021c, 2021d, 2021e, 2021f, 2021g, 2021h)	Current sales executive	• Poor leadership and management (Niche, 2021) • Busy environment • High salary • Opportunities to develop and improve (Glassdoor, 2021a, 2021b, 2021c, 2021d) • Bad quality products sometimes • Competitive, but fast-growing environment (Glassdoor, 2021a, 2021b, 2021c, 2021d)
Former technical sourcing recruiter	• Good salary • Too big company and sector to navigate (Indeed, 2021a, 2021b, 2021c, 2021d, 2021e, 2021f, 2021g, 2021h) • Overwhelming environment sometimes • Fully-featured and innovative centres • Good management	Current service engagement manager	• High amount of freedom to create, and contribute • Successful organisation, but zero value for employees • Customers are in front of everything (Indeed, 2021a, 2021b, 2021c, 2021d, 2021e, 2021f, 2021g, 2021h)

Appendix 2—Comparison on Reviews Taken from Amazon’s Employees

Former data centre infrastructure technician	• The biggest e-commerce infrastructure (Glassdoor, 2021a, 2021b, 2021c, 2021d) • Secure Infrastructure • Overwhelming environment sometimes (Glassdoor, 2021a, 2021b, 2021c, 2021d) • High stress, but high salary and benefits • Fully-featured innovative services and massive, global, equipped centres (Glassdoor, 2021a, 2021b, 2021c, 2021d)	Current data centre infrastructure technician	• Excellent e-commerce infrastructure (Glassdoor, 2021a, 2021b, 2021c, 2021d) • Secure Infrastructure • Overwhelming environment sometimes (Glassdoor, 2021a, 2021b, 2021c, 2021d) • High stress • High salary and compensation • Fully-featured innovative services and massive, global, equipped centres (Glassdoor, 2021a, 2021b, 2021c, 2021d)
Former human resource manager	• Great place to learn and grow (Indeed, 2021a, 2021b, 2021c, 2021d, 2021e, 2021f, 2021g, 2021h) • Terrible Management (Indeed, 2021a, 2021b, 2021c, 2021d, 2021e, 2021f, 2021g, 2021h) • Intense culture • Very Competitive Environment • High pay; Poor work/life balance (Forbes, 2015)	Current assistant manager—human resource	• Good working environment • Intense culture • (Indeed, 2021a, 2021b, 2021c, 2021d, 2021e, 2021f, 2021g, 2021h) • Strong leadership principles (Indeed, 2021a, 2021b, 2021c, 2021d, 2021e, 2021f, 2021g, 2021h) • Poor management sometimes and work/life balance (Indeed, 2021a, 2021b, 2021c, 2021d, 2021e, 2021f, 2021g, 2021h)
Former maintenance technician	• Plenty of advancement • Good pay, benefits and opportunities (Indeed, 2021a, 2021b, 2021c, 2021d, 2021e, 2021f, 2021g, 2021h) • Most of the managers care about number, not about workers • Long-working hours (Glassdoor, 2021a, 2021b, 2021c, 2021d)	Current maintenance technician	• High salary and benefits, as well as opportunities • Terrible management (Glassdoor, 2021a, 2021b, 2021c, 2021d) • Competitive environment • Long-working hours (Glassdoor, 2021a, 2021b, 2021c, 2021d)
Former procurement analysist	• Life-time achievements (Glassdoor, 2021a, 2021b, 2021c, 2021d) • Good nature of work • Growth chances are small (Glassdoor, 2021a, 2021b, 2021c, 2021d) • High pressure • Less benefits compared to the other departments (Glassdoor, 2021a, 2021b, 2021c, 2021d)	Current procurement analysist	• Excellent level of achievements (Glassdoor, 2021a, 2021b, 2021c, 2021d) • Small growth chances (Glassdoor, 2021a, 2021b, 2021c, 2021d) • High pressure and stress • Less benefits compared to other departments (Glassdoor, 2021a, 2021b, 2021c, 2021d)

Appendix 3—Operating Expenses (Amazon Annual Report 2015)

	Year ended December 31, 2015			Year ended December 31, 2014			Year ended December 31, 2013
	As reported	Stock-based compensation	Net	As reported	Stock-based compensation	Net	As reported	Stock-based compensation	Net
Operating expenses
Cost of sales	$ 71.651	$	$ 71,651	$ 62,752	$	$ 62.752	$ 54,181	$	$ 54.181
Fulfillment	13.410	(482)	12,928	10,766	(375)	10,391	8,585	(294)	831
Marketing	5,254	(190)	5,064	4,332	(125)	4,207	3,133	(88)	3,045
Technology and content	12,540	(1.224)	11.316	9,275	(804)	8.471	6,565	1603)	5,962
General and administrative	1,747	(223)	1.524	1,552	(193)	1.359	1,129	(149)	980
Other operating expense (income), net	171	–	171	133	–	133	114	–	114
Total operating expenses	$ 104,773	$ (2,119)	$ 102,654	$ 88,810	$ (1.497)	$ 87,313	$ 73,707	$ (1.134)	$ 72,373
Year-over-year percentage growth
Fulfillment	25%		24%	25%		25%	34%		34%
Marketing	21		20	38		38	30		30
Technology and content	35		34	41		42	44		44
Genera] and administrative	13		12	37		39	26		27
Percent of net sales
Fulfillment	12.5%		12.1%	12.1%		11.7%	11.5%		11.1%
Marketing	49		4.7	49		4.7	4.2		4.1
Technology and content	11.7		10.6	10.4		9.5	8.8		8.0
General and administrative	1.6		1.4	1.7		1.5	1.5		1.3

Appendix 4—Statement of Operations (Amazon Annual Report 2016)

	Year ended December 31
	2012	2013	2014	2015		2016
	(in million, except per share data)
Statements of operations
Net sales	$ 61,093	$ 74,452	$ 88,988	$ 107,006		$ 135,987
Operating income	$ 676	$ 745	$ 178	$ 2,233		$ 4,186
Net income (loss)	$ (39)	$ 274	$ (241)	$ 596		$ 2,371
Basic earnings per share (1)	$ (0.09)	$ 0.60	$ (0.52)	$ 1.28		$5.01
Diluted earnings per share (1)	$ (0.09)	$ 0.59	$ (0.52)	$ 1.25		$ 4.90
Weighted-average shares used in computation of earnings per share
Basic	453	457	462	467		474
Diluted	453	465	462	477		484
Statements of cash flows
Net cash provided by (used in) operating activities	$ 4,180	$ 5,475	$ 6,842	$ 11,920		$ 16,443
	December 31
	2012	2013	2014	2015		2016
	(in millions)
Balance sheets
Total assets	$ 32,555	$ 40,159	$54,505	$ 64,747		$ 83,402
Total long-term obligations	$ 5,361	$ 7,433	$ 15,675	$ 17,476		$ 20,301

Appendix 5—Operating Expenses (Amazon Annual Report 2016)

	Year Ended December 31
	2014	2015	2016
Operating expenses
Cost of sales	$ 62,752	$ 71,651	$ 88,265
Fulfillment	10,766	13,410	17,619
Marketing	4,332	5,254	7,233
Technology and content	9,275	12,540	16,085
General and administrative	1,552	1,747	2,432
Other operating expense, net	133	171	167
Total operating expenses	$ 88,810	$ 104,773	$ 131,801
Year-over-year percentage growth
Cost of sales	16%	14%	23%
Fulfillment	25	25	31
Marketing	38	21	38
Technology and content	41	35	28
General and administrative	37	13	39
Other operating expense, net	16	28	(2)
Percent of net sales
Cost of sales	70.5%	67.0%	64.9%
Fulfillment	12.1	12.5	13.0
Marketing	4.9	4.9	5.3
Technology and content	10.4	11.7	11.8
General and administrative	1.7	1.6	1.8
Other operating expense, net	0.2	0.2	0.1

Appendix 6—Liquidity and Capital Resources (Amazon Annual Report 2017)

	Year ended December 31
	2015	2016	2017
Cash provided by (used in)
Operating activities Investing activities Financing activities	$ 12,039 (6,450) (3,882)	$ 17,272 (9,876) (3,740)	$ 18,434 (27,819) 9,860

Appendix 7—Operating Expenses (Amazon Annual Report 2017)

	Year ended December 31
	2015	2016	2017
Operating expenses
Cost of sales	$ 71,651	$ 88,265	$ 111,934
Fulfillment	13,410	17,619	25,249
Marketing	5,254	7,233	10,069
Technology and content	12,540	16,085	22,620
General and administrative	1,747	2,432	3,674
Other operating expense, net	171	167	214
Total operating expenses	$ 104,773	$ 131,801	$ 173,760
Year-over-year percentage growth:
Cost of sales	14%	23%	27%
Fulfillment	25	31	43
Marketing	21	38	39
Technology and content	35	28	41
General and administrative	13	39	51
Other operating expense, net	28	(2)	28
Percent of net sales
Cost of sales	67.0%	64.9%	62.9%
Fulfillment	12.5	13.0	14.2
Marketing	4 9	5 3	5.7
Technology and content	11.7	11.8	12.7
Genera] and administrative	1.6	1.8	2 1
Other operating expense, net	0.2	0.1	0.1

Appendix 8—Statement of Operations (Amazon Annual Report 2018)

	Year ended December 31,
	2014	2015	2016	2017(1)	2018
	(in millions, except per share data)
Statements of operations
Net sales	$ 88,988	$ 107,006	$ 135,987	$ 177,866	$ 232,887
Operating income	$ 178	$ 2,233	$ 4,186	$ 4,106	$ 12,421
Net income (loss)	$ (241)	$ 596	$ 2,371	$ 3,033	$ 10,073
Basic earnings per share (2)	$ (0.52)	$ 1.28	$ 5.01	$ 6.32	$ 20.68
Diluted earnings per share (2)	$ (0.52)	$ 1.25	$ 4.90	$ 6.15	$ 20.14
Weighted-average shares used in computation of earnings per share
Basic	462	467	474	480	487
Diluted	462	477	484	493	500
Statements of cash flows
Net cash provided by (used in) operating activities (3)	$ 6,976	$ 11,909	$ 17,203	$ 18,365	$ 30,723
	December 31
	2014	2015	2016	2017	2018
	(in millions)
Balance sheets
Total assets	$ 53,618	$ 64,747	$ 83,402	$ 131,310	$ 162,648
Total long-term obligations	$ 14,794	$ 17,477	$ 20,301	$ 45,718	$ 50,708

Appendix 9—Results of Operations (Amazon Annual Report 2018)

	Year ended December 31
	2016	2017	2018
Operating expenses
Cost of sales	$ 88,265	$ 111,934	$ 139,156
Fulfillment	17,619	25,249	34,027
Marketing	7,233	10,069	13,814
Technology and content	16,085	22,620	28,837
General and administrative	2,432	3,674	4,336
Other operating expense, net	167	214	296
Total operating expenses	$ 131,801	$ 173,760	$ 220,466
Year-over-year percentage growth
Cost of sales	23%	27%	24%
Fulfillment	31	43	35
Marketing	38	39	37
Technology and content	28	41	27
General and administrative	39	51	18
Other operating expense, net	(2)	28	38
Percent of net sales
Cost of sales	649%	62.9%	59.8%
Fulfillment	130	14 2	14 6
Marketing	5.3	5.7	5.9
Technology and content	11 8	12.7	12.4
General and administrative	1.8	2.1	19
Other operating expense, net	0.1	0.1	0.1

Appendix 10—Statement of Operations (Amazon Annual Report 2019)

	Year Ended December 31
	2017	2018	2019
Net product sales	$ 118,573 S	$ 141,915	$ 160.408
Nel service sales	59,293	90,972	120,114
Total net sales	177,866	232,887	280,522
Operating expenses
Cost of sales	111,934	139,156	165,536
Fulfillment	25,249	34,027	40,232
Technology and content	22,620	28,837	35,931
Marketing	10,069	13,814	18,878
General and administrative	3,674	4,336	5,203
Other operating expense (income), net	214	296	201
Total operating expenses	173,760	220,466	265,981
Operating income	4,106	12,421	14.541
Interest income	202	440	832
Interest expense	(848)	(1,417)	(1,600)
Other income (expense), net	346	(183)	203
Total non-operating income (expense)	(300)	(1,160)	(565)
Income before income taxes	3,806	11,261	13,976
Provision for income taxes	(769)	(1,197)	(2,374)
Equity-method investment activity, net of tax	(4)	9	(14)
Nel income	$ 3,033	$ 10,073	$ 11,588
Basic earnings per share	$ 6.32	$ 20.68	$ 23.46
Diluted earnings per share	$ 6.15 S	$ 20.14	$ 23.01
Weighted-average shares used in computation of earnings per share
Basic	480	487	494
Diluted	493	500	504

Appendix 11—Results of Operations (Amazon Annual Report 2019)

	Year ended December 31
	2018	2019
Operating expenses
Cost of sales	$ 139,156	$ 165,536
Fulfillment	34,027	40,232
Technology and content	28,837	35,931
Marketing	13,814	18,878
General and administrative	4,336	5,203
Other operating expense (income), net	296	201
Total operating expenses	$ 220,466	$ 265,981
Year-over-year percentage growth
Cost of sales	24%	19%
Fulfillment	35	18
Technology and content	27	25
Marketing	37	37
General and administrative	18	20
Other operating expense (income), net	38	(32)
Percent of net sales
Cost of sales	59.8%	59.0%
Fulfillment	14.6	14.3
Technology and content	12.4	12.8
Marketing	5.9	6.7
General and administrative	19	19
Other operating expense (income), net	0.1	0.1

Appendix 12—Segment Information (Amazon Annual Report 2020)

	Year ended December 31
	2018	2019	2020
North America
Net sales	$ 141,366	$ 170,773	$ 236,282
Operating expenses	134,099	163,740	227,631
Operating income	$ 7,267	$ 7,033	$ 8,651
International
Net sales	$ 65,866	$ 74,723	$ 104,412
Operating expenses	68,008	76,416	103,695
Operating income (loss)	$ (2,142)	$ (1,693)	$ 717
AWS
Net sales	$ 25,655	$ 35,026	$ 45,370
Operating expenses	18,359	25,825	31,839
Operating income	$ 7,296	$ 9,201	$ 13,531
Consolidated
Net sales	$ 232,887	$ 280,522	$ 386,064
Operating expenses	220,466	265,981	363,165
Operating income	12,421	14,541	22,899
Total non-operating income (expense)	(1,160)	(565)	1,279
Provision for income taxes	(1,197)	(2,374)	(2,863)
Equity-method investment activity, net of tax	9	(14)	16
Net income	$ 10,073	$ 11,588	$ 21,331

Appendix 13—Statement of Operations (Amazon Annual Report 2020)

	Three months ended December 31		Twelve months ended December 31
	2019	2020	2019	2020
Net product sales	$ 50,542	$ 71.056	$ 160.408	$ 215.915
Net service sales	36,895	54,499	120,114	170.149
Total net sales	87,437	125,555	280.522	386.064
Operating expenses
Cost of sales	53,977	79,284	165,536	233,307
Fulfillment	12,192	18,474	40.232	58,517
Technology and content	9,740	12,049	35.931	42.740
Marketina	6,172	7,403	18.878	22.008
General and administrative	1,412	1,968	5.203	6.668
Other operating expense (income), net	65	(496)	201	(75)
Total operating expenses	83,558	118,682	265,981	363,165
Operating income	3,879	6,873	14.541	22.899
Interest income	211	100	832	555
Interest expense	(455)	(414)	(1,600)	(1,647)
Other income (expense), net	418	1,206	203	2,371
Total non-operating income (expense)	174	892	(565)	1,279
Income before income taxes	4,053	7,765	13,976	24,178
Provision for income taxes	(786)	(566)	(2,374)	(2,863)
Equity-method investment activity, net of tax	I	23	(14)	16
Net income	$ 3,268	$ 7,222	$ 11,588	$ 21,331
Basic earnings per share	$ 6.58	$ 14.38	$ 23.46	$ 42.64
Diluted earnings per share	$ 6.47	$ 14.09	$ 23.01	$ 41.83
Weighted-average shares used in computation of earnings per share
Basic	496	502	494	500
Diluted	505	513	504	510