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Project Report On A Study On Employee Welfare' at Amazon
Project Report On A Study On Employee Welfare' at Amazon
By
OsmaniaUniversity,
Hyderabad-500007
Certificate
This is to certify that the project work entitled
ROLL NO.:1051-20-401-030.
Chikkadapally, Hyderabad-500020.
Mrs. K. SUJATHA
Project Mentor ExternalExaminer
DECLARATION
I hereby declare that this project titled ‘A STUDY ON EMPLOYEE WELFARE’ submitted
by me to the Department of Commerce, Osmania University, Hyderabad, is a bonfide work
undertaken by me and it is not submitted to any other university or institution for the award
of any degree, diploma/certificate or published any time before.
CERTIFICATION
This is to certify that the Project Report titled ‘A STUDY ON EMPLOYEE WELFARE’
submitted in partial fulfillment for the award of B.Com GENERAL Programme of
Department of Commerce, O.U. Hyderabad, was carried out by Mohd Abdul Ashfaq under
the guidance of Mrs K Sujatha. This has not been submitted to any other
University or Institution for the award of any degree/diploma/certificate.
Mrs. K. SUJATHA
ACKNOWLEDGEMENT
This project work would not have been completed without the mention of following people.
We express our heartly gratitude to our principal sir Dr. VISWANADHAM BULUSU for
providing us the opportunity and platform to work on the project.
And our project mentor Mrs. K. SUJATHA who has supported and guided us throughout our
project.
TABLE OF CONTENTS
INTRODUCTION 1
RESEARCH METHODOLOGY 4
LIMITATIONS OF THE STUDY 5
INDUSTRY PROFILE 18
CHAPTER – 3
COMPANY PROFILE 23
BIBLIOGRAPHY 66
QUESTIONNAIRE 68
ABSTRACT
Employee welfare defines as “efforts to make life worth living for workmen”. “Employee welfare is a
comprehensive term including various services, benefits and facilities offered to employees & by the
employers. Through such generous fringe benefits the employer makes life worth living for
employees.”
Employee welfare is a term including various services, benefits and facilities offered to employees by
the employers. The welfare measures need not be monetary but in any kind/forms. This includes
items such as allowances, housing, transportation, medical insurance and food. Employee welfare
also includes monitoring of working conditions, creation of industrial harmony through infrastructure
for health, industrial relations and insurance against disease, accident and unemployment for the
workers and their families. Through such generous benefits the employer makes life worth living for
employees.
Welfare includes anything that is done for the comfort and improvement of employees and is
provided over and above the wages. Welfare helps in keeping the morale and motivation of the
employees high so as to retain the employees for longer duration. The welfare measures need not be
in monetary terms only but in any kind/forms. Employee welfare includes monitoring of working
conditions, creation of industrial harmony through infrastructure for health, industrial relations and
insurance against disease, accident and unemployment for the workers and their families.
Labor welfare entails all those activities of employer which are directed towards providing the
employees with certain facilities and services in addition to wages or salaries.
Organizations provide welfare facilities to their employees to keep their motivation levels high. The
employee welfare schemes can be classified into two categories viz. statutory and non-statutory
welfare schemes. The statutory schemes are those schemes that are compulsory to provide by an
organization as compliance to the laws governing employee health and safety. These include
provisions provided in industrial acts like Factories Act 1948, Dock Workers Act (safety, health and
welfare) 1986, Mines Act 1962. The non statutory schemes differ from organization to organization
and from industry to industry.
CHAPTER I
INTRODUCTION
1
INTRODUCTION TO EMPLOYEE WELFARE
Welfare in the border sense means well-being of the personnel working in the
organization. Welfare measures are the steps taken by the management to create a good
environment in which the workers feel satisfied both physically and mentally and in the end
produce best result by putting their maximum efforts.
Employee welfare defined as “efforts to make life worth living for workmen”. The
welfare measures are being implemented to win over employee’s loyalty and increase their
morale, to combat trade unionism and to develop efficiency and productivity among
workers ,to earn goodwill and enhance public image, to reduce the threat of further
government intervention and also to make recruitment more effective (because these benefits
add to job appeal).
Welfare includes anything that is done for the comfort and improvement of employees
and is provided over and above the wages. Welfare helps in keeping the morale and
motivation of the employees high so as to retain them for longer duration. The welfare
measures need not be in monetary terms it can be in any kind/forms. Employee welfare
includes monitoring of working conditions, creation of industrial harmony through
infrastructure for health, industrial relations and insurance against disease, accident and
unemployment for the workers and their families.
Employee welfare entails all those activities of employer which are directed towards
providing the employees with certain facilities and services in addition to wages or salaries.
PROBLEM IDENTIFICATION
2
NEED FOR THE STUDY
The admission personnel at AMAZON.IN, Hyderabad unit, where in the research had
undergone summer training program, wanted to know the perception of the workers regarding
the welfare measures that have been provided.
The top-management wanted the research to find out what are the employees needs over the
existing welfare schemes.
Further top management also wanted to find out the area where the management has failed to
satisfy the employee’s needs with regard welfare schemes.
SCOPE OF STUDY
The scope of the study covers all the welfare activities done for the intellectual, physical,
moral, and economic betterment of the workers.
Before examining, the welfare activities in AMAZON.IN an attempt made to explain the
concept, scope and importance of labor welfare in India. Hence, the study specially deals with
the labour welfare facilities of the AMAZON.IN Hyderabad.
RESEARCH METHODOLOGY
3
RESEARCH DESIGN:
QUESTIONNAIRE DESIGN:
The questionnaire formed is of both closed and open type. It was framed in a clear manner
such that it enables the respondents to understand and answer the question easily.
SAMPLE SIZE:
Sample size =100, variance and confidence methods are used for determining sample size.
Sampling technique (simple random sampling).
SECONDARY DATA:
The secondary data is collected through literature review, books, AMAZON.IN website and
also from the past records maintained by the company.
4
LIMITATIONS OF THE STUDY
1. This study is only limited to AMAZON.IN and is not applicable to other company.
1. Survey was done with the sample size of 100 as the employees of the company work in
shifts and as they are busy with their schedule.
2. Respondents are busy so could not have sufficient interaction with them and are not free
enough to share their ideas.
3. Due to the time limit the sample size was also limited, so the results may not be
appropriate to some extent.
5
CHAPTER II
REVIEW OF LITERATURE
6
Robert Strathdee (2004) concentrates on New Zealand’s welfare to-work policy and draws
on interview data to explore the impact of “outsourcing” on tutors who work with young,
unemployed people. Contracting independent organizations to provide services, or
outsourcing, as it is euphemistically known, has become standard practice in business and is
assuming a central role in social policy in many Western nations. He argues that outsourcing
is used to control the practices of those who work with unemployed people in New Zealand.
The data show that outsourcing achieves this control by creating uncertainty over the tutors’
own employment situation. In this respect, outsourcing helps to create a regulatory
framework in which the tutors seek to secure their own employment by improving their
tutees’ employability.
Rick Csiernik (2009) in his article explores labor welfare in Canada across three distinct
periods of occupational assistance: welfare capitalism that began with the Industrial
Revolution and persisted through the depression of the 1930s; occupational alcoholism
programming that emerged during World War II and the typically unreported domestic labor
strife of the 1940s, lasting through the postwar economic boom into the 1960s; and the
employee assistance programming era with the introduction of the broad-brush approach to
workplace-based assistance that also witnessed organized labor in Canada provide
fundamental supports to workers that were originally introduced by workplace owners during
the welfare capitalism period, though now to benefit workers rather than to control them.
7
Randhir Kumar Singh (2009) studied the welfare measures and its impact on manpower
productivity. He states that there is a difficulty in arriving at the homogeneity concerning
labor due to difference in scale, energy, training, environment, incentive, rates of pay etc. The
ratio of output to labor is universally acknowledged to have some uniformity. He has found
that there is a correlation between the welfare measures and manpower productivity i.e. if the
proper welfare measures are taken then the productivity of the employees will increase and
ultimately the profit of the organization will increase. The welfare measures increases the
productivity of the organization as well as it enhances the morale and motivation of the
employees which gives a positive impact on the efficiency level of the organization.
Venugopal, Bhaskar and Usha (2011) explain that human resources play a very important
role in the development of the business. They constitute the organization at all levels and are
regarded as a dynamic factor of production. The study was conducted with the main objective
of evaluating the effectiveness of welfare measures in industrial sector and to suggest
measures to make existing welfare measures much more effective and comprehensive so that
the benefits of the employees will be increased. In order to get best results from the
employees, management must be aware of what employees expect from their employees. It is
for the management to see that whether the workers get economic, social and individual
satisfaction and employee welfare activities.
Swapna (2011) addresses social responsibility of the business in light of labor welfare with
special reference to Singareni Collieries Company Limited. The linkages and the ethical
considerations involved in employee welfare have been addressed with implications for labor
welfare. The concept of social responsibility in its narrow contours has been equated with
economic welfare. Conceptually as well as operationally, labor welfare can achieve through
social responsibility, which in turn is closely linked to the concept of social welfare and the
role of the state. Hence in this way, it is understood the importance of social responsibility
towards labor welfare.
Vijaya Banu and Ashifa (2011) throws light on welfare measures followed in Public Sector
Transport Corporation. This study analyses the various dimensions of labor welfare measures
that are perceived to the labors. It highlights the perception and levels of satisfaction of the
labors regarding the various welfare measures and the methods to improve the welfare
schemes in Public Sector Transport Corporation.
Poongavanam (2011) explains that India’s labor force exhibits extremes ranging from large
numbers of illiterate workers unaccustomed to machinery or routine, to a sizable pool of
8
highly educated scientists, technicians and engineers, capable of working anywhere in the
world
world. He studied the labor welfare measures in Anglo French Textiles. He concluded that
welfare work in any industry aims, or should aim, at improving the working and living
conditions of workers and their families. The concept of labor welfare varies from time to
time, region to region, industry to industry and country to country, depending upon various
factors such as educational level, social customs, and degree of industrialization and the
general standard of socio-economic development.
Rama Satyanarayana and Jayaprakash Reddy (2012) carried out a research to know the
satisfaction levels of employees about labor welfare measures in KCP Limited (Cement
Division). For the purpose of the study, convenience random sampling method was adopted.
Out of 925 employees, 90 were selected covering almost all the departments. A questionnaire
was used to collect primary data. The results of the research reveal that majority of the
employees are satisfied with all the welfare measures provided by the organization. The
overall satisfaction level of employees about welfare measures cover under study is
satisfactory. However, a few are not satisfied with welfare measures provided by the
organization. Therefore it is suggested that the existing welfare measures may be improved
further. Such welfare measures enrich the employees’ standard of living and their satisfaction
levels.
The above reviews show that most of the studies on welfare measures have been carried out
in public and private enterprises. These studies have not covered the entire measures of labor
welfare measures. Selection of limited samples and lack of studying the relationship between
demographic variables of the employees towards the labor welfare measures are the
limitations of these studies. No study has been undertaken so far to analyze the attitude of
employees towards the labor welfare measures of the sugar mills. Hence, a careful study is
essential in this regard. With this background, the present study is an attempt to fill in the
research gap in these areas. The study covers 3 sugar mills, namely, Chengalrayan
Cooperative Sugar Mills, Perambalur Sugar Mills Limited and Sakthi Sugars Limited with a
sample of 444 employees.
9
THEORETICAL FRAMEWORK
HUMAN RESOURCE MANAGEMENT
Every organization irrespective of its nature and size will have four resources via Men,
Material, Money and Machinery. Of these, men i.e., Human Resource is the most vital as they
give the cutting edge to the Organization.
Peter F.Drucker says that, “Man, of all the resources available can grow and develop”. This
gives genesis to the concept of Human Resource Management of all theSubsystem
Human Resource Management is a management function that helps the mangers to Recruit,
Select, Train and Develop People for the purpose of achieving the stated organizational goals.
The personnel Department is called the HR department. Human Resource Management has a
very vast and wide scope. It is concerned with activities starting from manpower planning till
the employee leaving the organization. The scope of Human Resource Management includes
Procurement, Development, Maintenance and Control of Personnel in the organization.
EMPLOYEE BENEFITS
Employee benefits and benefits in kind (also called fringe benefits, perquisites, perqs or
perks) are various non-wage compensations provided to employees in addition to their normal
wages or salaries. Some of these benefits are: housing ,disability income protection,
retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-paid),
social security, profit sharing, funding of education, and other specialized benefits.
FRINGE BENEFITS
The term fringe benefit refers to the extra benefits provided to employees in addition to the
normal compensation paid in the form of wage or salary.
11
The fringe benefits are classified as:
Industrial progress depends on the satisfied employee force, for that providing an adequate
welfare measure is important. The ancient industrial system was not as complex and
complicated as we find industries in modern world. The main industry of our ancestors was
agriculture. The modern industrial working grew up in India after the advent of industrial
revolution. Due to division of employee in the factory system, the workers could get required
satisfaction, the employers used to behave according to their whims and fancies. In the
factory system the worker had to live in overcrowded colonies with very poor sanitary
conditions, which adversely affect their health, social and family life. The work involved the
use of big machines, which exposed them to many hazards due to illiteracy and ignorance.
Earlier, employer regarded their workers as factors of production and did not give much
attention to their well being and satisfaction. On the other hand they cared more for machines.
The wages also were low and the employers dictated the terms and condition of service.
To protect the workers, the government interfered and laid down certain laws, rules and
regulations and made them binding on the part of employers who employee a certain number
of workers.
12
Employee welfare implies setting up of minimum desirable standards and the provision of
facilitates like health, food, clothing, housing, medical assistance, education, job security,
recreation etc., such facilities enable the workers and his family lend a good work and social
life.
3. The necessity for employee welfare is felt more in our country because of its developing
economy aimed at rapid economic and social development.
4. The need for employee welfare was strongly because of the commitment to industrial
work by factory workers and also harsh treatment they received from the employer.
5. The resolution passed by the Indian National congress for fundamental rights and
economic program, in 1931 emphasized that the state should safeguard the interest of
workers by suitable legislation, Healthy conditions of work, limited working hour,
suitable machinery and protection against the economic consequences of old age, sickness
and unemployment.
6. The workers should be equipped with necessary technical training and a certain level of
general education because of the high rate of illiteracy among the workers. The facilities
would also help in decreasing the number of industrial accidents and increasing the
workers efficiency
The purpose of providing welfare amenities is to bring about the workers social,
psychological, economic, moral, cultural and intellectual development to make him a good
worker, a good citizen and a good member of the family.
Employees are statutorily required to comply with the provision of various welfare amenities
under different employee welfare legislations.
Important Acts relating to Labor Welfare are:
S factory Act, 1948
15
S Mines Act, 1952
S Workmen’s Compensation Act 1923.
S Maternity Benefit Act, 1961
S Employee’s state Insurance Act, 1948
S Contract Labor (R&A) Act, 1970
S The Equal Remuneration Act, 1976
S A.P Labor Welfare Fund Act, 1987.
S Employee’s Provident Fund and Miscellaneous Provisions Act, 1952.
S Payment of Gratuity Act, 1972.
S The Minimum Wages Act, 1948.
S The Payment of Wages Act, 1936.
S The Industrial Dispute Act, 1947.
16
CHAPTER III
COMPANY PROFILE
17
THE INDUSTRY PROFILE
India has an internet user base of about 454 million as of June of 2020. Despite being the
second largest user base in world, only behind China (650 million, 48% of population), the
penetration of e-commerce is low compared to markets like the United States (266 M, 84%),
or France (54 M, 81%), but is growing at an unprecedented rate, adding around 6 million new
entrants every month. The industry consensus is that growth is at an inflection point.
In India, cash on delivery is the most preferred payment method, accumulating 75% of the
eretail activities. Demand for international consumer products (including tail items) is
growing much faster than in-country supply from authorized distributors and e-commerce
offerings.
• Increased usage of online classified sites, with more consumer buying and selling
second-hand goods
18
• Evolution of Million-Dollar startups like Jabong.com, Saavn, Makemytrip,
Bookmyshow, Zomato Etc.
India's retail market is estimated at $770 billion in 2023 and is expected to grow to $975 Bn
by 2025 and $1,050 Bn by 2030, – estimated CAGR of 10%. According to Forrester, the
ecommerce market in India is set to grow the fastest within the Asia-Pacific Region at a
CAGR of over 67% between 2020–2025.
As per "India Goes Digital”, a report by Avendus Capital, a leading Indian Investment Bank
specializing in digital media and technology sector, the Indian e-commerce market is
estimated at Rs 28,500 Crore ($6.3 billion) for the year 2020. Online travel constitutes a
sizable portion (87%) of this market today. Online travel market in India is expected to grow
at a rate of 22% over the next 4 years and reach Rs 54,800 Crore ($12.2 billion) in size by
2025. Indian e-tailing industry is estimated at Rs 3,600 crore (US$800 mn) in 2011 and
estimated to grow to Rs 53,000 Crore ($11.8 billion) in 2023.
Overall e-commerce market is expected to reach Rs 1, 07,800 crores (US$24 billion) by the
year 2025 with both online travel and e-tailing contributing equally. Another big segment in
e-commerce is mobile/DTH recharge with nearly 1 million transactions daily by operator
websites.
CLOSURES
Though the sector has witnessed tremendous growth and is expected to grow, a lot of
ecommerce ventures have faced tremendous pressure to ensure cash flows. But it has not
worked out for all the e-commerce websites. Many of them like Dhingana, Rock.in, and
Seventy MM amongst others had to close down or change their business models to survive.
INFRASTRUCTURE
There are many hosting companies working in India but most of them are not suitable for
eCommerce hosting purpose, because they are providing much less secure and threat
protected shared hosting. ECommerce demand highly secure, stable and protected hosting.
19
Trends are changing with some of eCommerce companies starting to offer SaaS for hosting
web stores with minimal onetime costs.
There could be various methods of ecommerce marketing such as blog, forums, search
engines and some online advertising sites like Google adwords and Adroll.
India has got its own version of Cyber Monday known as Great Online Shopping Festival
which started in December 2012, when Google India partnered with e-commerce companies
including Flipkart, HomeShop18, Snapdeal, Indiatimes shopping and Makemytrip. "Cyber
Monday" is a term coined in the USA for the Monday coming after Black Friday, which is the
Friday after Thanksgiving Day. Most recent GOSF Great Online Shopping Festival was held
during Dec 10 to 12, 2014.
In early June 2013, Amazon.com launched their Amazon India marketplace without any
marketing campaigns. In July, Amazon had said it will invest $2 billion (Rs 12,000 crore) in
India to expand business, after its largest Indian rival Flipkart announced $1 billion infunding.
Amazon has also entered grocery segment with its Kirana now in Bangalore and is also
planning to enter in various other cities like Delhi, Mumbai and Chennai and faces stiff
competition with Indian startups.
FUNDING
As of 2020, most of the e-commerce companies are yet to start making money. However, due
to their growth prospects, many venture capital firms such as Accel Partners have invested
considerably. In one of the biggest fund raising, Flipkart.com, till November 2020, has raised
about USD 2.3 billion. Entertainment ticketing website BookMyShow.com raised ₹100 crores
investment by Accel Partners.
On 10 July 2020, Flipkart announced it had received $200 million from existing investors
Tiger Global, Naspers, Accel Partners, and ICONIQ Capital. New investors making up the
additional $160 million include Dragoneer Investment Group, Morgan Stanley Wealth
Management, Sofina, Vulcan Inc. and more from Tiger Global.
In February 2019, online fashion retailer Myntra.com raised $50 million from a group of
investors led by Premji Invest, the investment company floated by Azim Premji, Chairman of
20
Wipro. May 2019 also witnessed an acquisition of Myntra by Flipkart reportedly for ₹2,000
crores.
In July 2020, price comparison service website MySmartPrice raised $10 million from Accel
Partners and Helion Venture Partners. In September 2020, PepperTap raised $36 million from
Snapdeal and others.
Started in 2012, Hopscotch India focuses on bringing thousands of brands to moms in India.
They have raised USD 12.8 Million in 2 rounds from 7 investors, including Facebook
Cofounder Eduardo Saverin
Started in 2011, voylla online first digital fashion jewelry, Jaipur-based fashion jewelry brand
Voylla has raised $15 million (About Rs 98 crore) in funding from private equity firm, Peepul
Capital.
Around 90 startups got funded in June 2016, 3.4% more as compared to last month (May
2016) and 18.4% more as compared to June 2020. This month ecommerce has levelled with
health-tech as the most favored funding sector, suggesting last month’s finding might have
just been a temporary dip in the trend. Furthermore, number of acquisitions has decreased by
13.3% as compared to last month and increased by 30% as compared to June 2020. 2
mergers, 4 acqui-hire, and 7 acquisitions were observed this month.
NICHE RETAILERS
The spread of e-commerce has led to the rise of several niche players who largely specialize
their products around a specific theme. As many as 1, 06,086 websites are registered daily
and more than 25% are for niche businesses.
During 2014, Royal Enfield sold 200 Bikes of special series Online.
Zepo compiled popular online niche brands in their list of Top 100 Quirky Brands in India.
Online apparel is one of the more popular verticals, which along with Computers and
consumer electronics make up 42% of the total retail e-commerce sales. Niche online
merchandising brands like Headbanger's Merch, Redwolf and No Nasties partner with and
even help sustain independent musicians.[31] Some established brands like Arvind are now
21
creating clothing lines just for the e-commerce markets. Some of the bigger online retailer
like VoxPop Clothing have secured multiple rounds of funding, the last round raising $1
million from Blume Ventures in 2014.
As these niche businesses get popular, they are slowly getting acquired by the big players.
BabyOye was acquired by Mahindra Retail, part of the $17 billion Mahindra Group. Ekstop
was acquired by the Godrej Group to complement their offline chain of Nature's Basket
stores.
HISTORY
The company was founded in 1994, spurred by what Bezos called his "regret minimization
framework," which described his efforts to fend off any regrets for not participating sooner in
the Internet business boom during that time. In 1994, Bezos left his employment as
vicepresident of D. E. Shaw & Co., a Wall Street firm, and moved to Seattle. He began to
work on a business plan for what would eventually become Amazon.com.
Jeff Bezos incorporated the company as "Cadabra" on July 5, 1994. Bezos changed the name
to Amazon a year later after a lawyer misheard its original name as "cadaver". The company
went online as Amazon.com in 1995.
Bezos selected the name Amazon by looking through the dictionary, and settled on "Amazon"
because it was a place that was "exotic and different" just as he planned for his store to be; the
Amazon River, he noted was by far the "biggest" river in the world, and he planned to make
his store the biggest in the world. Bezos placed a premium on his head start in building a
brand, telling a reporter, "There's nothing about our model that can't be copied over time. But
you know, McDonald's got copied. And it still built a huge, multibillion-dollar company. A lot
of it comes down to the brand name. Brand names are more important online than they are in
the physical world." Additionally, a name beginning with "A" was preferential due to the
probability it would occur at the top of any list that was alphabetized.
Since June 19, 2000, Amazon's logotype has featured a curved arrow leading from A to Z,
representing that the company carries every product from A to Z, with the arrow shaped like a
smile.
After reading a report about the future of the Internet that projected annual Web commerce
growth at 2,300%, Bezos created a list of 20 products that could be marketed online. He
narrowed the list to what he felt were the five most promising products which included:
compact discs, computer hardware, computer software, videos, and books. Bezos finally
23
decided that his new business would sell books online, due to the large world-wide demand
for literature, the low price points for books, along with the huge number of titles available in
print. Amazon was originally founded in Bezos' garage in Bellevue, Washington.
The company began as an online bookstore, an idea spurred off with discussion with John
Ingram of Ingram Book (now called Ingram Content Group), along with Keyur Patel who still
holds a stake in Amazon. Amazon was able to access books at wholesale from Ingram. In the
first two months of business, Amazon sold to all 50 states and over 45 countries. Within two
months, Amazon's sales were up to $20,000/week. While the largest brick and mortar
bookstores and mail order catalogs might offer 200,000 titles, an online bookstore could
"carry" several times more, since it would have a practically unlimited virtual (not actual)
warehouse: those of the actual product makers/suppliers.
Amazon was incorporated in 1994, in the state of Washington. In July 1995, the company
began service and sold its first book on Amazon.com: Douglas Hofstadter's Fluid Concepts
and Creative Analogies: Computer Models of the Fundamental Mechanisms of Thought. [28] In
October 1995, the company announced itself to the public. In 1996, it was reincorporated in
Delaware. Amazon issued its initial public offering of stock on May 15, 1997, trading under
the NASDAQ stock exchange symbol AMZN, at a price ofUS$18.00 per share ($1.50 after
three stock splits in the late 1990s).
Amazon's initial business plan was unusual; it did not expect to make a profit for four to five
years. This "slow" growth caused stockholders to complain about the company not reaching
profitability fast enough to justify investing in, or to even survive in the long-term. When the
dot-com bubble burst at the start of the 21st century, destroying many e-companies in the
process, Amazon survived, and grew on past the bubble burst to become a huge player in
online sales. It finally turned its first profit in the fourth quarter of 2001: $5 million (i.e., 1¢
per share), on revenues of more than $1 billion. This profit margin, though extremely modest,
proved to skeptics that Bezos' unconventional business model could
succeed. In 1999, Time magazine named Bezos the Person of the Year, recognizing
the company's success in popularizing online shopping.
Barnes & Noble sued Amazon on May 12, 1997, alleging that Amazon's claim to be "the
world's largest bookstore" was false. Barnes and Noble asserted, "[It] isn't a bookstore at all.
It's a book broker." The suit was later settled out of court, and Amazon continued to make the
same claim." Walmart sued Amazon on October 16, 1998, alleging that Amazon had stolen
Walmart's trade secrets by hiring former Walmart executives. Although this suit was also
24
settled out of court, it caused Amazon to implement internal restrictions and the reassignment
of the former Walmart executives.
2011
S LoveFilm,
S The Book Depository,
S Pushbutton,
S Yap
2012
S Kiva Systems,
S Teachstreet,
S Evi
2013
S IVONA Software,
S Goodreads
,S Liquavista,
2014
S Double Helix Games,
S comiXology,
S Twitch
2015
S Annapurna Labs, a chip designer based in Yokneam, Israel
2019
S Yes Network
INVESTMENT
S 2008: Engine Yard, a Ruby-on-Rails platform as a service (PaaS) company.
S 2017: LivingSocial, a local deal site.
S 2018: Acquire .buy domain in an auction for $4,588,888
25
S 2019 : Amazon Announces Additional US $2 Billion Investment in India in June 2014
SUBSIDIARIES
S 2015: A9.com, a company focused on researching and building innovative technology.
S 2017: Lab126, developers of integrated consumer electronics such as the Kindle.
S 2018: Endless.com, an e-commerce brand focusing on shoes.
S 2019: Brilliance Audio, the largest independent audiobook producer in the US. Amazon
owns over 40 subsidiaries, including Zappos, Diapers.com, Kiva Systems,
Goodreads, Teachstreet, and IMDb.
MERCHANT PARTNERSHIPS
Until June 30, 2006, typing ToysRUs.com into a browser would bring up Amazon.com's
"Toys & Games" tab; however, this relationship was terminated due to a lawsuit Amazon also
hosted and managed the website for Borders bookstores but this ceased in 2008. From 2001
until August 2011, Amazon hosted the retail website for Target.
On October 18, 2011, Amazon.com announced a partnership with DC Comics for the
exclusive digital rights to many popular comics, including Superman, Batman, Green
Lantern, The Sandman and Watchmen. The partnership has caused well-known bookstores
like Barnes & Noble to remove these titles from their shelves.
On November 2013, Amazon.com announced a partnership with the United States Postal
Service to begin delivering orders on Sundays. The service, included in Amazon’s standard
shipping rates, initiated in metropolitan areas of Los Angeles and New York due to the
highvolume and inability to deliver timely, with plans to expand into Dallas, Houston, New
Orleans and Phoenix by 2020.
26
On July 2016, Amazon.com announced a partnership with the U.K. Civil Aviation Authority
to test some of the technologies and may use delivery service via prime air drone in the
future.
FINANCIAL PERFORMANCE
During the past several years, the online giant's sales have grown dramatically -- from about
$15 billion in 2006 to $89 billion in 2014. In 2015, net sales increased by 20% due to higher
sales from North America segment.
27
The North American sales growth reflects increased unit sales (including sales by marketplace
sellers) driven largely by its continued efforts to reduce prices for its customers, including
from its shipping offers, and sales in faster growing categories such as electronics and other
general merchandise.
In 2015 Amazon reported net income of $596 million compared to a net loss of $241 million
in the previous year due to increased sales partially offset by higher technology and content
expenses.
Net cash provided by the operating activities increased by 74%.
According to the report, apparel and footwear sale has grown by 52 percent, from Rs 4,699 crore in
December 2014 to Rs 7,142 crore in December 2015. This segment is expected to reach Rs 72,639
crore by end of 2016. Investments in this sector support this claim – lingerie seller Zivame, fashion
marketplace Limeroad, and fashion social network Roposohad raised $40 million, $30 million, and
$20 million respectively in 2015 alone. Offline sellers like Shoppers Stop have, in fact, launched their
own online platforms to face this competition.
We are now well into 2020. If you are to develop a winning ecommerce marketing strategy you'll need
to start planning now. Ecommerce continues to grow rapidly, but with the huge market acting as a
magnet to brands large and small, competition will ramp up faster than the total growth of the market.
This means customers will be harder to win, easier to lose and fussier on price and user experience.
To avoid falling behind the ever more fierce competition, you will need to both be aware of and
benefit from the latest trends in ecommerce. These megatrends are global, have huge implications, and
are not going to go away anytime soon. Ecommerce marketers will have to integrate them into their
planning to be successful in 2017. And if any of you think you can get away without creating a
detailed plan - remember that 77% of marketing professionals think a planned approach focusing on
analytics and continues optimisation is the most effect way of managing Online marketing, whilst
only 14% thought a relatively unplanned, reactive approach was best.
STRATEGY
Beyond being a best-in-class, low-cost and high-convenience online retailer, Amazon is
focused on expanding by increasing both product and service (e-commerce, etc.) offerings; it
also intends to continue its international expansion. In 2015, the company's Amazon Web
Services business introduced its AWS Marketplace for Desktop Apps and Amazon
WorkSpaces Application Manager products. That year it also launched its unlimited cloud
storage Amazon Cloud Drive platform, as well as its Kindle Direct Publishing EDU platform
that enables educators and authors to easily share eTextbooks and educational content via
28
tablets and smartphones. In 2014, Amazon launched its Fire smartphone and its Fire TV
streaming platform.
The Kindle Fire and Kindle Voyage are the latest in Amazon's line of Kindle e-readers.
Digital books have emerged as the fast-growing segment of the book market. In fact, Amazon
now sells more Kindle e-books than print books. The Kindle, Kindle Paperwhite, Kindle
Voyage, and Kindle with Special Offers (which sells for less but displays ads and sponsored
screen savers) comprise Amazon's e-book offering. Rival Barnes & Noble, which sells its
own e-reader Nook, emerged as a formidable competitor to Kindle, but has since faded. As a
way to boost its already robust e-book services business, Amazon in 2013 purchased online
book community Goodreads. Based in San Francisco, the social media site, which is used by
30,000-plus book clubs, provides the platform for its 30 million members to share book
reviews and recommendations.
Boosting its service sales, the company has inked a number of deals to expand into new
markets. In mid-2014, Amazon introduced its Zocalo service, which allows customers to
securely store and share files including documents, spreadsheets, presentations, and webpages
online. To boost membership in its Prime shipping and customer loyalty program, Amazon
has partnered with Discovery Communications. Discovery has agreed to sell the online-
streaming rights to some of its older programming, including episodes of the popular shows
"Dirty Jobs" and "Whale Wars," to Amazon's online-streaming service. Amazon's Instant
Video streaming service is a distant second to Netflix.
The company has grown Prime two-day delivery selection from 1 million items to over 30
million, added Sunday Delivery, and introduced Free Same-Day Delivery on hundreds of
thousands of products for customers in more than 35 cities around the world. It has added
music, photo storage, the Kindle Owners’ Lending Library, and streaming films and TV.
This year, it created a new program called Seller Fulfilled Prime. It invited sellers who are
able to meet a high bar for shipping speed and consistency in service to be part of the Prime
program and ship their own orders at Prime speed directly. It also created the Amazon
Lending program to help sellers grow.
India is another example of how the company globalizes an offering like Marketplace.
Amazon invented Amazon Tatkal, which enables small businesses to get online in less than
60 minutes. Amazon Tatkal is a specially designed studio-on-wheels offering a suite of launch
services including registration, imaging and cataloguing services, as well as basic seller
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training mechanisms. In 2016 Amazon announced plans for a new technology development
center in downtown Minneapolis.
To expand its menu of media and entertainment content, Amazon in October 2014 acquired
Rooftop Media, an online comedy service. The purchase of Rooftop, which produces audio
and video programming, furthers Amazon's foray into the digital content market where it
seeks to compete with Netflix and other online digital media services. Also that year the
acquisitive company purchased comiXology, a digital comic book platform; and Twitch
Interactive, a live video platform for gamers.
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COMPETITORS
S Apple Inc.
S Barnes & Noble, Inc.
S Best Buy Co., Inc.
S Costco Wholesale Corporation
S DIRECT BRANDS, INC.
S DSW Inc.
S eBay Inc.
S Foot Locker, Inc.
S Google Inc.
S Hastings Entertainment, Inc.
S HSN, Inc.
S IAC/InterActiveCorp
S Lowe's Companies,
Inc.
S Macy's, Inc.
S Netflix, Inc.
S Office Depot, Inc.
S OfficeMax Incorporated
S Peapod, LLC
S Sears, Roebuck and Co.
S Staples, Inc.
S Target Corporation
S The Finish Line Inc
S The Gap Inc S The Tjx
Companies Inc S Wal-Mart
Stores, Inc.
S Yahoo! Inc.
31
CHAPTER IV
DATA ANALYSIS AND
INTERPRETATION
32
Table 1
Are you aware about welfare
Particulars Response
yes 30
no 20
INTERPRETATION:
30 people which is 60% responded YES about the welfare.
The response is recorded in blue colour.
20 people which is 40% responded NO about the welfare.
The response is recorded in Red colour.
33
Table 2
INTERPRETATION:
40 people which is 80% responded YES to the welfare facility provided by Amazon.
10 people which is 20% responded NO to the welfare facility provided by Amazon.
The responses are recorded in the Red colour.
34
Table 3
Are employees satisfied with Tea break or coffee break provided by company
Particulars. Responses
Yes. 28
No. 13
Maybe. 9
INTERPRETATION:
28 people which is 56% are satisfied by the break provided by company.
The response is recorded in Blue colour.
13 people which is 26% are not satisfied by the break provided by company.
The response is recorded in Red colour.
9 people which is 18% are not sure about the break provided by company.
The response is recorded in Green colour
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.
Table 4
Appreciate and recognition given to employees for their excellence in company
Particulars Response
yes 30
no 5
Not up to the satisfaction 15
INTERPRETATION:
30 people which is 60% said YES about the appreciation and recognition given to
them by company.
5 people which is 10% said NO about the appreciation and recognition given to
them by company.
15 people that is 30% are not SURE about the appreciation and recognition given to
them by company.
The response is recorded in the Green colour.
36
Table 5
Does Amazon provide all types of welfare facilities (Like safety, health, social
security)
Particulars. Responses
Yes. 22
No. 8
Not all types. 20
INTERPRETATION:
22 people which is 44% said YES to the welfare facilities provided by Amazon.
8 people which is 16% said NO to the welfare facilities provided by Amazon.
20 people which is 40% said that not all types of facilities are provided by Amazon.
The response is recorded in Orange colour.
37
Table 6
Does the company provide cultural program to the employees
Particulars. Responses
Yes. 22
No. 8
Sometimes. 20
INTERPRETATION:
22 people which is 44% said YES about the cultural program provided by company.
The response is recorded in Blue colour.
8 people which is 16% said NO about the cultural program provided by company.
The response is recorded in Red colour.
20 people which is 40% said sometimes the cultural program are provided by company.
The response is recorded in Green colour.
38
Table 7
Does the company provide counseling session to the employees in Amazon
Particulars. Responses
Yes. 28
No. 22
INTERPRETATION:
28 people which is 56% said YES about the counselling session provided by company.
The response is recorded in Blue colour.
22 people which is 44% said NO about the counselling session provided by company.
The response is recorded in Red colour.
39
Table 8
Are you satisfied with first aid and safety equipment and statutory welfare
measure which is provided by the employer
Particulars Response
yes 33
not much 17
INTERPRETATION
33 people which is 66% have agreed that the first aid and safety equipment and statutory welfare
measure provided to employer
17 people which is 34% said they are not much provided the first aid and safety equipment and welfare
measure
The responses are recorded in Red colour.
40
Table 9
Particulars Response
yes 37
not much 13
INTERPRETATION:
37 people which is 74% said YES about the recreational activities provided by employer. 13
people which is 26% said they are NOT MUCH satisfied with the recreational activities
provided by employer.
The response is recorded in Purple colour.
41
Table 10
INTERPRETATION:
22 people which is 44% said YES about the Intramural (Canteen, restrooms,
Uniform creches) facilities.
The response is recorded in Blue colour.
12 people which is 24% said YES about the Extramural (Housing, Child Education,
Travel, Less Interest or Free Loans ) facilities.
The response is recorded in Red colour.
16 people which is 32% said BOTH that is Intramural as well as Extramural
Facilities are being provided by employer.
The response is recorded in Green colour.
42
CHAPTER V
FINDINGS,SUGGESTIONS & CONCLUSION
43
FINDINGS
• From the Data collected, Employees feel that Welfare measures are required to enable
the employees to lead a comfortable work life.
• Employees feel that Welfare measures enhance motivation and commitment of the
employee.
• Most of the employees feel that Quality of food items need to be improved and variety
of food items need to be introduced in canteen.
SUGGESTIONS
S The analysis revealed positive response from almost all the employees. It is found that
better working conditions and welfare facilities are made available inside plant and
township. The employees are highly motivated. However, it is suggested to take the
following initiatives for further improvement.
S Even good education facilities must be provided in the township for intermediate students.
S The hospital facilities are good. Specialist Doctors in all braches needs to be posted for
better treatment locally to avoid outstation medical references.
S Maintenance of the parks and gardens needs to be improved.
S Canteen facilities are good. However, variety of food items may be increased and even the
quality.
S More number of employees should be involved to participate in the administration of
welfare programs by organizing seminars & presentations to create awareness among
employees abt various welfare measures & also they can form as a employees
associations & activity clubs.
CONCLUSION
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AMAZON.IN (RSTPS) is one of the best among the power generating companies in our
country. In the present scenario, the human resource management has to play a very important
role. For any organization, the employees are instrumental in executing the plans and meeting
the work targets of the company with greater responsibility. In this endeavor, HR dept, plays a
pivotal role to support and fulfill the needs of the employees.
The term ‘welfare measures’ refers to the facilities provided for the employees at the
working environment which are called statutory welfare measures and facilities provided for
them and & their family members which are called non-statutory welfare measures. The main
aim of providing these welfare measures is to satisfy and enhance the morale of the
employees.
The study reveals that both the statutory & non-statutory welfare measures provided by the
company are very attractive and employees are highly satisfied and motivated.
With all the above it is learnt that, they will go a long way in protecting the employees and
providing benefit to their families of the company.
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BIBLIOGRAPHY
46
REFERENCES
1. Books
i) Human Resource Management - Biswajeet
Mathur
iv) Labour Welfare, Trade Unionism and Industrial Relations - Punekar Deodhar
Sankaran.
v) National Safety Council, USA- Accident Prevention Manual for Industrial Operations
(Administrations & Programmes) Eighth Edition, 1982.
MANUAL
DOCUMENT
i) AMAZON.IN - Hyderabad; Emergency Preparedness & Response Plan.
INFORMATION
i) Various information collected from H.R. - Safety and other departments.
47
ANNEXURE
48
QUESTIONNAIRE
Designation/Grade:
Department:
3.Are employees satisfied with tea break or coffee break provided by company ?
a.yes
b.no
c.maybe
8.Are you satisfied with first aid and safety equipment and statutory welfare measure which is
provided by the company?
a.yes
b.not much