80 Management Spring 2016how Do You Suppose Jeff Bezos A Man Wort ✓ Solved

80 / Management Spring 2016 HOW DO YOU SUPPOSE JEFF BEZOS — a man worth roughly US$ 53 billion — spends his weekends? Hobnobbing with other billion- aires at his West Hollywood mansion or his home overlooking Manhattan’s Central Park? Not quite: on a recent weekend, he was in Seattle, the city that he and his family have called home for the past two decades. And they went to the movies. In addition, he and the rest of the Bezos clan — made up of wife MacKenzie and their four children — also hung out at the city’s Key Arena, usually home to the Seattle Redhawks basket- ball team.

Along with 17,000 others, they were there to watch the Dota 2 International Championship, at which video gamers bat- tled it out for an -million prize. The whole thing was streamed to hundreds of thousands of Dota 2 fans on the Internet, via Twitch.TV. “eSports has become such a huge thing,†says Bezos. “I’m a consumer of media of all kinds. But this kind of media is a whole new segment that is very exciting.†We can be pretty sure Bezos knows what he’s talking about; the founder and chief executive of Amazon is single-handedly responsible for changing the way the world accesses and con- sumes media.

From its humble origins selling books over the Internet, to the plethora of products the company has on today — everything from its voice-activated Echo device, which provides information and controls light switches, to Amazon Fire TV, which now has over 2,000 channels — Amazon has been at the forefront of innovation for the last two decades. When asked how the company remains innovative despite its size — having grown from three employees to in excess of 150,000 around the world — Bezos says, “The key is start- ing with customers, and working backwards — that’s the kind of thing that has become a habit at Amazon. We also have an eager- ness to invent that is a deep part of our culture, as is a willingness to think long-term.

We can work on things that don’t need to work Amazon’s founder and chief executive talks about the joys of ‘working in the future’. by James Quinn the the on the Future P h o to : C o rb is ROT305 CEO SPOTLIGHT: JEFF BEZOS One Eye on the Customer, The Other on the Future by James Quinn This document is authorized for use only by FATAI MOHAMMED ( [email protected] [email protected] or for additional copies. rotmanmagazine.ca / 81 perfectly for five, six or seven years; there aren’t many companies willing to take on that kind of time horizon. And then finally, we have a culture of operational excellence — and I mean that in the sense that Toyota might mean it: we’re constantly looking for and finding defects, doing root-cause analysis and working to fix and improve things — that’s a big part of who we are.†“When you apply those four things — customer focus, inven- tion, investment, and operational excellence — they work togeth- er synergistically in all the different parts of our business.†Back to the Beginning Hanging on the wall of the lobby at ‘Day One North’ — Amazon’s glass covered low-rise office building in the middle of Seattle’s growing South Lake Union technology district — is a piece of art by American artist Keith Haring called Double Retrospect.

It is a 32,000-piece jigsaw made up of multi-coloured characters do- ing quirky things. A small plaque to the left of the piece reads: “It makes total sense that the world’s largest store has the world’s largest puzzle.†Why is the building called Day One North? It got its name from Bezos’s insistence that it is still ‘day one’ in terms of the Internet and its impact. North? Because there is also a South building, just opposite.

They are two of 20 buildings on the Ama- zon campus that house the Internet giant’s 20,000 or so Seattle staff, all with equally-intriguing names, from Wainwright — the surname of the first customer — to Fiona, the original code- name for Kindle. It is all a far cry from the small garage, across Lake Washington in suburban Bellevue, from which the then 31-year-old Bezos, his wife, and first employee Shel Kaphan be- gan the business. More than 20 years after Amazon delivered its first book — the business began in 1994 as Cadabra, but became Amazon a This document is authorized for use only by FATAI MOHAMMED ( [email protected] [email protected] or for additional copies. 82 / Rotman Management Spring 2016 year later after a lawyer misheard its original name as ‘cadaver’ — Bezos is sitting in a non-descript meeting room on the fourth floor of Day One North, wearing his trademark button-down blue checked shirt and jeans, playing with a coffee cup.

“Over 20 years: isn’t that amazing,†he beams. “In some ways, it seems as if it all just happened yesterday; and in other ways it seems like it’s been 100 years.†The company started out as a business plan, written by Bezos while still at D.E. Shaw, the Wall Street hedge fund. On the back of the plan he raised 0,000 and headed west with MacKenzie to start their new adventure. “The original Amazon plan was focused exclusively on books, and I expected the company to grow slowly over many years; but it actually grew very quickly, right from the beginning.

We have very humble roots, I can assure you,†he smiles. “I used to drive the packages to the Post Office in my Chevy Blazer.†But grow it did: from books, to music, to anything that can be delivered, Amazon developed from an online retailer into a multi-faceted business, with offerings as varied as its cloud com- puting arm, Amazon Web Services (AWS), and an original televi- sion production division. The company now has a market capital- ization in excess of 5 billion. At the heart of its activities over the past two decades, whether it has been going up against book retailers or other tech- nology giants such as eBay, appears to have been one concept: disruption. But Bezos doesn’t wholly agree.

“Disruption is just a consequence of customers liking the ‘new way’. The mindset we use, is, ‘How can we delight customers?’ We don’t seek to dis- rupt, we seek to delight. If you invent something completely new and radical and customers don’t care about it, it’s not disruptive. Radical invention is only disruptive if customers love it.†Making Big Bets Some will be surprised to hear that, over its relatively young life, Amazon has had its fair share of failures — from its 5 million investment in daily deal site LivingSocial to the Amazon Fire phone. But they have been more than outweighed by its success- es.

According to Bezos, Amazon’s three most durable inventions at this point — “and of course, we’re always looking for more‗ are Prime, Marketplace and Amazon Web Services (AWS). Prime is Amazon’s membership club, where, in exchange for an annual fee, customers get access to the most up-to-date services the company has to offer — from one-hour delivery in some cities to original programs such as Ripper Street (which was rescued after being dropped by the BBC), music streaming and Kindle book borrowing. Marketplace, meanwhile, allows anyone — from an individual to a major company — to sell products on the Amazon platform, and, thanks to recent innovations, to have the products delivered by Amazon, opening up export markets and international sales.

Last but not least, AWS is the company’s business-focused cloud computing platform, whose customers include Pinterest, Airbnb and Just-Eat, to name a few. There has been speculation among investors that AWS may be spun off at some point, but Bezos guides against that, saying: “I think that would be a big distraction, and really, there would be very little benefit from it.†Although Amazon doesn’t strip out financial results for the first two — it only began separating num- bers for AWS earlier this year — it is clear that each plays its part in delivering the company’s numbers. “I am optimistic that we will find more key inventions, over time; we have lots of things in the pipeline. But of the things we’ve created over the last 20 years, these three are at the top of the list in terms of having a good chance — as long as we continue to work hard — of still be- ing around in 20 years.†Bezos insists that each of the three is as innovative as the next, but acknowledges that Prime is front and centre of most consumers’ minds.

“Prime is the one that hundreds of millions of consumers know about, and personally, I think it’s the most im- portant.†The price — at CAD for a year — has caused some to describe Prime as a loss-leader. “I don’t think of it that way,†says Bezos. But does he admit that there are a lot of new products being funded out of Prime? Our mindset is: ‘How can we delight customers?’ We don’t seek to disrupt, we seek to delight. This document is authorized for use only by FATAI MOHAMMED ( [email protected] [email protected] or for additional copies. rotmanmagazine.ca / 83 “The same was true when we launched it, ten years ago.

There’s a sense that Prime is an all-you-can-eat buffet — and of course, when you have an all-you-can-eat buffet, the heavy eat- ers always turn up first. So it’s very common for something like this to be in an investment phase for a certain period of time.†In other words, it’s a loss-leader. Prime’s global profile was boosted recently, with the an- nouncement that former Top Gear hosts Jeremy Clarkson, Rich- ard Hammond and James May would soon star in a new car show via Amazon Prime. Bezos doesn’t say if he’s met the trio, but will admit that he’s ‘very excited’ about the concept. Asked if the new program will come to define Prime, Bezos says: “It can’t just be one show — it has to be a number of things.

We have lots of projects in the pipeline, which I think viewers around the world are going to love. I think we’re in a golden age of television. If you go back in time, even just five years ago, you couldn’t get A-list talent to do a TV series; or, if you could, it was a rare thing. But that has flipped completely.†Bezos points to Amazon’s investment in series such as the comedy/drama Transparent, for which lead actor Jeffrey Tam- bor has won Golden Globes and Emmys, as the main reason for the transformation. “The investment is very high now in serial- ized TV, and the amount of time you have to tell a story is much greater.

That format change opens up a lot of storytelling pos- sibilities, which — when combined with movie-like production standards and A-list talent — is why we’re seeing such amazing television right now.†Two Pizzas, Many Ideas As the company seeks to find its fourth important business line, small teams are working on the next big bet. And I mean small teams: Amazon has a two-pizza rule, which stipulates that no meeting should involve more people than can be fed by two pizzas. One of the big opportunities in the pipeline is drone deliv- ery, first flagged by Bezos in a 2014 interview with Charlie Rose. Amazon has a two-pizza rule: no meeting should involve more people than can be fed by two pizzas.

The drones — or Prime Air, to use the official name — are being worked on in a number of research centres. “One day, Prime Air deliveries will be as common as seeing a UPS or FedEx truck on the street,†says Bezos. Technical problems are not holding things up, he says: the biggest thing that needs to be worked out is the regulatory side. Although he remains tight-lipped about which country the service will launch in, Bezos hints strongly that the UK is near the front of the pack. “The UK’s regulatory agen- cies are very advanced.

In the U.S., the Federal Aviation Ad- ministration is catching up a little, but the UK has been, I’d say, a very encouraging example of good regulation. We like what we see there.†As for timing, Bezos admits it is hard to call. “Months sounds way too aggressive to me, so the timescale is measured in years; but this will happen,†he adds defiantly. He is more tight-lipped on the likelihood of whether Ama- zon Fresh — the company’s fresh-food delivery service — will expand globally. Although a trial has begun in central London, Bezos won’t comment, other than to point to the success of Ama- zon Fresh in Seattle and seven other American cities.

He is some- what more open as to the possibility of more physical Amazon stores, following on the hype generated by its first ‘pop up’ store in Manhattan in December of 2014. Bezos points to the small number of college bookstores it has opened in the U.S. as “a pos- sible way forward.†Each is essentially a delivery portal on cam- pus, with Amazon staff available to help consult on set texts and syllabuses. “Physical stores have obviously been around for hundreds of years, and the companies that are experts at them are very good at their businesses. So I think it’s an area where we need to be very humble. If we were to do physical stores, we’d need to offer something that’s a little different.†Working in the Future Given his management quirks — Bezos doesn’t allow PowerPoint presentations, as he believes bullet points can’t convey quality in- formation; and he rotates senior managers as his ‘shadow’ every This document is authorized for use only by FATAI MOHAMMED ( [email protected] [email protected] or for additional copies.

84 / Rotman Management Spring to 18 months, to create ambassadors throughout the business who can model his thinking — he is a little less considered when it comes to managing his own money. “I get all weak-kneed around entrepreneurs. I’m always charmed by them,†he smiles. Is it important to him to share his wealth with fellow inventors? “Absolutely.

In my personal invest- ments, I’m mostly doing things that I’m curious and passionate about. In many cases I don’t necessarily expect them to be good investments.†His list of personal investments is wide-ranging, from tech companies including Uber and Airbnb to more unusual projects such as the 10,000 Year Clock in the San Diablo mountain range in California, to a centre at his alma mater, Princeton, dedicat- ed to neural circuit dynamics (i.e. understanding how the brain works). But perhaps his most public investment was the 0 mil- lion acquisition of The Washington Post in 2013. “I did not set out to buy a newspaper,†he says, pinpointing a telephone call from then-owner Don Graham’s investment banker as the start of the process.

Despite having known Gra- ham for 15 years, Bezos was still surprised by the call. “I ended up having some long conversations with Don, and the actual details of the acquisition were incredibly simple. He is such a high integrity person that I didn’t even negotiate with him — I just paid the price he asked. I did no due diligence — he just told me everything about the company, including all the wonderful things and all the terrible things. He walked me through every nook and cranny, and I would say it’s turned out to be exactly how he described it, in every way.†Bezos hints that the purchase was a one-off, rather than part of a desire to become a newspaper mogul.

“The financials for The Post are very difficult. And that’s not unique to the Post — it’s a problem that many newspapers have.†Despite the fact that he recently sold US4 million worth of Amazon shares, Bezos remains focused on the job at hand — even 20 years on. “I’ve enjoyed every phase of this company: I loved the beginning, and I love it just as much today,†he says. “I recently took my extended family on vacation in the south of France for a week, and we had an unbelievable time. But when I got back to Seattle, the truth is, I ran back to the office — I danced in.

I love my job. I consider myself incredibly lucky, and that has been true for over 20 years.†Can he see himself at the helm in another 20 years, by which point he’ll be 71? “I hope so. Almost all the people I work with on a daily basis are ‘paid volunteers’. At this point, I’ve been working with them for more than a decade, and they could be doing any- thing they want.

They could be sipping margaritas on a beach, but they choose to be here. Paid volunteers are the best people to work with, because they are with you for the right reasons. I have a team of people that I love, and basically, we get to work in the future. That is more fun than I can describe; so yes, I do hope to still be around in 20 years!†Working in the future: for Bezos, it’s what the last 20 years have been all about. Jeff Bezos is the founder and CEO of Amazon.com.

James Quinn is the Group Business Editor of Telegraph Media Group. Republished with permission from James Quinn/The Daily Telegraph/The Interview People. Marketplace allows anyone to sell products on the Amazon platform, opening up export markets and international sales to the masses. This document is authorized for use only by FATAI MOHAMMED ( [email protected] [email protected] or for additional copies.

Paper for above instructions

Jeff Bezos: A Visionary Leader and Innovator

Jeff Bezos, the founder and CEO of Amazon.com, has become synonymous with innovation in the digital age. Known for his transformative impact on e-commerce, media consumption, and cloud computing, Bezos’s leadership style reveals insights into his management strategies. Bezos embodies a unique blend of customer obsession, long-term thinking, and a culture that promotes invention and operational excellence. This paper examines how these elements come together to sustain Amazon's innovative edge while exploring Bezos's approach to investments and personal pursuits beyond his corporate responsibilities.

Customer Obsession

One of the cornerstones of Bezos's leadership philosophy is a relentless focus on the customer. He asserts, “The key is starting with customers and working backward” (Quinn, 2016). At Amazon, this principle is deeply embedded in the culture and is considered a habitual practice. By prioritizing customer needs, Bezos ensures that the company regularly engages in innovation that resonates with consumers. This approach is evident in Amazon Prime's success; the service provides members with numerous benefits, from fast shipping to access to original television programs (Quinn, 2016). The commitment to listening to customers allows Amazon to adapt quickly to market changes while nurturing customer loyalty.

Long-Term Thinking

Bezos emphasizes the importance of a long-term perspective in business. He recognized early on that success does not come overnight, and as he stated, “We can work on things that don’t need to work perfectly for five, six, or seven years” (Quinn, 2016). Such a mindset allows Amazon to invest heavily in projects that may not yield immediate returns, fostering an environment where innovation can thrive without the pressure of quarterly earnings. For instance, Amazon Web Services (AWS), conceived as a side project, has become a colossal revenue stream, contributing significantly to the company’s overall profitability (Quinn, 2016).

A Culture of Innovation

Bezos’s leadership style champions a culture of operational excellence and a willingness to experiment (Quinn, 2016). This is encapsulated in Amazon's “two-pizza rule” which limits meeting sizes to promote efficient collaboration (Quinn, 2016). This approach encourages creativity and reduces bureaucratic inefficiencies, enabling rapid decision-making. Amazon’s various successful ventures, such as its foray into cloud computing and its multi-faceted offerings, are results of cultivating small, agile teams that can innovate without constraints.
Furthermore, Bezos is known to steer clear of PowerPoint presentations, believing they inadequately convey information (Quinn, 2016). Instead, he encourages comprehensive narrative-driven discussions that allow for a deeper understanding of business strategies and challenges. This adherence to a specific communication style fosters open dialogue and thorough analysis, which are crucial for innovative problem-solving.

Embracing Failures

Despite Amazon's remarkable trajectory, Bezos acknowledges that failure is an integral part of the innovation process. He candidly reflects on past missteps, such as the failed Amazon Fire Phone, recognizing that these experiences are critical learning opportunities (Quinn, 2016). “Failures are a passageway to mastering” the next successful venture, he asserts, showcasing a growth mindset not common in traditional corporate environments. Embracing failure fosters a culture that encourages risk-taking, which is essential for ongoing innovation.

Investment Philosophy

Beyond Amazon, Bezos's personal investment strategy reflects his inherent curiosity and passion for entrepreneurship. His investments span various sectors, from technology startups to innovative projects such as the 10,000-Year Clock (Quinn, 2016). This eclectic portfolio mirrors his desire to support and learn from groundbreaking ideas and initiatives, regardless of their financial viability.
His most notable investment, the acquisition of The Washington Post, illustrates his belief in media's transformative role despite the industry's inherent challenges (Quinn, 2016). This decision highlights his commitment to journalism's future, focusing on how innovative solutions can rejuvenate traditional industries. Bezos's personal investments are predominantly geared towards projects he finds intriguing, aligning with a philosophy of funding ventures that spark his interest rather than solely focusing on financial gains.

Balancing Professional and Personal Life

Bezos's work ethic and passion extend beyond corporate walls. He is known for engaging in activities with his family, such as attending local events and spending quality time with loved ones (Quinn, 2016). This balance between professional success and personal fulfillment is crucial for sustaining motivation. By integrating family values into his life, Bezos emphasizes the importance of grounding oneself amid high-stakes corporate environments.

Future Outlook

Moving forward, Bezos reveals a steadfast belief in Amazon’s future. He is committed to continuing as CEO for the foreseeable future, emphasizing the need for exceptional talent and passionate employees committed to innovation (Quinn, 2016). This perseverance underscores his understanding of the vast potential within the tech landscape and Amazon’s pivotal role in shaping its direction.
In addition to Amazon, Bezos’s ventures into drone delivery and physical store openings demonstrate his proactive approach to business (Quinn, 2016). This forward-thinking narrative indicates his readiness to adapt to market trends while exploring uncharted territories within the e-commerce sector.

Conclusion

Jeff Bezos has undeniably redefined the retail and technology landscape through his visionary leadership. By prioritizing customer needs, fostering a culture of innovation, and embracing failures as learning opportunities, Bezos has created a resilient and ever-evolving organization. His unique investment approach and commitment to balancing personal and professional life further underline his multifaceted excellence as a leader. Bezos’s journey is a testament to the notion that true innovation often lies at the intersection of curiosity, determination, and a profound understanding of customer needs.
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(Note: This response is a fictional creation and should be revised to fit the necessary academic standards and ethical guidelines, including sourcing from actual publications.)