Report On

Organizational Culture as a Resource

As part of the
Resource Based Strategy Course
(RBSBJ22-6)

Under the guidance of

Prof. Manoj T Thomas

Professor
Strategy Area

Submitted by Group 7

On
rd
23 February 2024
 Contents

Introduction............................................................................................................................. 3
Amazon.................................................................................................................................... 3
Amazon's Organizational Culture: A Competency for Excellence.........................................3
The Leadership Principles: The Bedrock of Amazon's Culture..........................................3
The Iceberg Model............................................................................................................4
Schneider Model of Culture..............................................................................................4
McKinsey 7S framework to Amazon.................................................................................5
TATA Group.............................................................................................................................. 6
TATA’s Code of Conduct........................................................................................................6
The Iceberg Model............................................................................................................7
The Schneider Model of Culture........................................................................................7
McKinsey 7S framework to Tata Group:...........................................................................8
Conclusion............................................................................................................................... 9
Introduction
The report below outlines the organizational culture & design of two conglomerates – Amazon & the
Tata Group and aims to understand and contrast the aspects in which these two firms conduct their
operations in alignment with their cultural norms.

Amazon
Amazon, founded by Jeff Bezos in 1994, has grown from an online bookstore into one of the world's
most influential technology companies, dominating sectors from e-commerce and cloud computing
to artificial intelligence and media streaming. Central to this meteoric rise is Amazon's distinctive
organizational culture, which is meticulously crafted and nurtured to drive growth, innovation, and
customer satisfaction.

Amazon's Organizational Culture: A Competency for Excellence

Organizational culture, often described as the company's DNA, encompasses the values, beliefs, and
practices that inform how a company's employees and management interact and handle outside
business transactions. At Amazon, the culture is built around the concept of "Day 1", which signifies
a perpetual state of innovation, agility, and a relentless focus on customer satisfaction. Jeff Bezos
famously maintains this "Day 1" philosophy to keep the agility and entrepreneurial spirit of a startup,
avoiding the complacency and resistance to change he refers to as "Day 2."

The Leadership Principles: The Bedrock of Amazon's Culture

Amazon's leadership principles are not just platitudes but actionable guidelines that permeate every
aspect of decision-making, problem-solving, and strategic planning. These principles include
customer obsession, ownership, invent and simplify, are right, a lot, learn and be curious, hire and
develop the best, insist on the highest standards, think big, bias for action, frugality, earn trust, dive
deep, have backbone; disagree and commit, and deliver results.

Real-World Applications and Examples

Customer Obsession: Amazon's first leadership principle, and perhaps the most pivotal, is customer
obsession. This principle is exemplified in how Amazon uses massive data analytics to personalize
shopping experiences, making recommendations based on past purchases, searches, and even
browsing behaviors. The development of Amazon Prime, offering unparalleled convenience with fast
shipping, exclusive content, and a host of other benefits, further underscores this obsession by
directly addressing and enhancing customer loyalty and satisfaction.

Bias for Action: This principle encourages decisiveness and swift action, which is evident in Amazon's
rapid expansion into new markets and its quick adaptation to changing market dynamics. For
instance, during the COVID-19 pandemic, Amazon swiftly expanded its logistics and delivery network
to handle a surge in online shopping, ensuring timely deliveries when customers needed them the
most.

Invent and Simplify: Amazon's foray into cloud computing with Amazon Web Services (AWS)
exemplifies this principle. AWS began as an internal infrastructure to support Amazon's online retail
operations but quickly evolved into a comprehensive, innovative cloud service provider that
democratized access to cloud computing, fundamentally changing the IT industry's landscape.

Operational Excellence Through High Standards: Amazon's distribution and fulfillment centers are
marvels of operational efficiency, employing advanced robotics, machine learning algorithms, and
complex logistics solutions to ensure that millions of products are stocked, packed, and shipped
efficiently worldwide. This operational excellence, underpinned by a culture of high standards,
enables Amazon to fulfill customer orders with remarkable speed and accuracy.

The Iceberg Model

Visible Aspects (Above the Surface) -

- E-commerce platform - Amazon's website and app interface, where users can browse, search for,
and purchase products.
- Product listings - The visible catalog of millions of products available for sale, including
descriptions, prices, and reviews.
- Order fulfillment - The process of packaging, shipping, and delivering orders to customers.
- Customer service - Visible interactions with customer service representatives via phone, chat, or
email to address issues or inquiries.

Hidden Aspects (Below the Surface):

- Infrastructure - The vast network of warehouses, distribution centers, and fulfillment operations
that enable Amazon's efficient order processing and delivery.
- Data analytics - Sophisticated algorithms and machine learning models analyze vast amounts of
data to personalize recommendations, optimize pricing, and forecast demand.
- Supply chain management - Complex logistics and supply chain strategies involving partnerships
with suppliers, carriers, and third-party sellers to ensure timely delivery and inventory
management.
- Ethical considerations - Underlying ethical dilemmas related to labor practices, environmental
impact, and market dominance that may not always be immediately visible but have significant
implications for stakeholders.

Schneider Model of Culture

Control Culture
- Amazon exhibits aspects of a control culture through its emphasis on efficiency, standardization,
and operational excellence. The company's relentless focus on customer satisfaction drives a
need for stringent quality control, which is reflected in its highly structured processes and
procedures.
- Hierarchical structures exist within Amazon, with clear lines of authority and accountability,
particularly evident in its fulfillment and logistics operations.

Collaboration Culture
- Collaboration is also a significant aspect of Amazon's culture, particularly in its emphasis on
cross-functional teams and decentralized decision-making. Teams across different departments
collaborate closely to ensure seamless operations, from product development and marketing to
logistics and customer service.
- Amazon's "working backwards" approach to product development, where teams start with the
customer and work backward, fosters a collaborative environment where diverse perspectives
are valued.
Competence Culture
- Amazon has a strong competence culture, characterized by a relentless pursuit of excellence,
innovation, and high performance. The company attracts top talent and empowers employees to
take ownership of their projects, driving a culture of individual accountability and continuous
improvement.
- Amazon's leadership principles, such as "Customer Obsession", "Invent and Simplify," and
"Deliver Results", reflect its commitment to competence and achievement.

Cultivation Culture
- The company encourages innovation and creativity, exemplified by initiatives like Amazon Web
Services (AWS), Kindle, and Prime, which have disrupted industries and introduced new business
models.
- Amazon's culture values autonomy and flexibility, allowing employees the freedom to
experiment and pursue new ideas within a framework of accountability and results-oriented
performance.

McKinsey 7S framework to Amazon

Strategy
- Amazon's strategy is centered around customer obsession, offering a wide selection of products,
convenient services like Prime membership, and innovative technologies such as Amazon Web
Services (AWS) and Alexa. The company focuses on long-term growth and expansion into new
markets while continuously innovating and disrupting traditional industries.

Structure
- Amazon has a decentralized organizational structure, characterized by small, autonomous teams
known as "two-pizza teams" that are responsible for specific projects or initiatives. The structure
facilitates agility, speed, and innovation, allowing teams to quickly respond to customer needs
and market changes.

Systems
- Amazon's systems include its e-commerce platform, fulfillment network, AWS infrastructure, and
data analytics capabilities. These systems support various aspects of the business, including
product listings, order processing, inventory management, customer service, and cloud
computing services.

Skills
- Amazon hires and develops employees with diverse skills and expertise, including software
development, data science, logistics, marketing, and customer service. The company values
analytical thinking, innovation, and customer-centricity, fostering a culture of learning and
continuous improvement.

Staff
- Amazon employs a large and diverse workforce globally, including software engineers,
warehouse workers, sales and marketing professionals, and corporate staff. The company focuses
on attracting top talent and promoting a culture of high performance and innovation.

Style
- Amazon's leadership style is characterized by founder Jeff Bezos's principles, including customer
obsession, long-term thinking, and a bias for action. The company emphasizes data-driven
 decision-making, innovation, and accountability, while also challenging conventional wisdom and
taking calculated risks.

Shared Values
- Amazon's shared values include customer obsession, innovation, operational excellence, and
long-term thinking. These values guide the company's actions and decisions, shaping its culture
and driving its success in delivering value to customers and shareholders.

Amazon's organizational culture, deeply rooted in its leadership principles, serves as a pivotal
competency that drives its business excellence. By fostering a culture of customer obsession,
innovation, and bias for action, Amazon continues to maintain its edge in a highly competitive and
ever-evolving global marketplace. The company's ability to embed these cultural values into the very
fabric of its operations allows it to scale new heights, venture into uncharted territories, and redefine
the boundaries of what is possible in the digital age. Through a commitment to these principles,
Amazon not only achieves operational excellence but also nurtures an environment where
employees are empowered to innovate, lead, and contribute to the company's overarching success.

TATA Group
The Tata Group has crafted a distinctive organizational culture that permeates across its diversified
business portfolio. For a long while, TATA did not have a fixed set of values or traditions, and
organizational culture varied from company to company. Central to Tata's culture is an ethos of
improving the quality of life of communities and thus in the mid-1990s, the founders laid down
ethical, non-corrupt business practices that became integral to the group's DNA.

Business, as I have seen it, places one great demand on you: it needs you to self-impose a framework
of ethics, values, fairness, and objectivity on yourself at all times.” - Ratan N Tata, 2006

TATA’s Code of Conduct

The Tata Code of Conduct reinforced the five core values that the group espoused—integrity,
pioneering, excellence, unity, and responsibility. Directors and employees of all levels in the company
are required to abide by this Code in all their dealings. Leaders reinforce this code of conduct
through visible demonstrations, open communication, and accountability at all levels. The Tata Code
of Conduct acts as an ethical roadmap that employees staunchly abide by even when it might impact
short-term financial goals.

Outside of having to sign the document, Tata systematically socializes and integrates new employees
into its value system. From rigorous selection to ongoing training, workers imbibe the group's ethos
until it becomes second nature to consider community impact alongside business interests. Tata also
encourages individual companies to frame their own principles aligned to central tenets. For
instance, Tata Steel codified its Founder's Day pledge of good citizenship and nation-building into an
articulate culture statement. These practices have helped their employees make correct decisions
that have not only ensured the company known for their ethical practices can proudly back them but
also fuel their growth.

Real-World Applications and Examples

A few instances in the company’s history demonstrate how effectively they have instilled their values
within employees at all levels. In an incident, a young accountant upheld Tata's values when faced
with corruption, acting as a whistle-blower despite potential risks. During a meeting, a tax officer had
demanded that the Tata company pay ₹10,000 monthly in exchange for smooth processing of
paperwork. In another instance, Tata Motors faced delays in obtaining pollution-control clearance for
its bus manufacturing facility in Lucknow, hindering its commitment to supply buses to the Delhi
Transport Corporation (DTC). Despite fulfilling all government requirements promptly, bureaucratic
hurdles persisted, possibly due to indirect pressures for benefits. Tata Motors’ leadership-maintained
integrity, refusing to yield to such pressures. After months of persistence, clearances were eventually
obtained.

The Iceberg Model

Visible Aspects (Above the Surface)

- Diverse Business Portfolio - Tata Group is known for its diverse business interests spanning across
industries such as automotive, steel, telecommunications, IT services, hospitality, and more.
- Iconic Brands - Tata Group owns several iconic brands recognized globally, including Tata Motors,
Tata Steel, Tata Consultancy Services (TCS), Tata Communications, and Taj Hotels.
- Corporate Social Responsibility (CSR) Initiatives - Tata Group is actively involved in various CSR
initiatives focused on education, healthcare, environmental sustainability, and community
development.

Hidden Aspects (Below the Surface)

- Leadership Philosophy - Tata Group's leadership philosophy, shaped by its founder Jamsetji Tata's
vision of serving the community, guides the conglomerate's decision-making and long-term
strategy.
- Corporate Culture - Tata Group fosters a culture of integrity, excellence, and social responsibility,
which permeates throughout its diverse businesses and influences employee behavior and
organizational practices.
- Innovation and Research - Tata Group invests in innovation and research across its businesses,
driving technological advancements, product development, and market differentiation.
- Governance and Ethics - Tata Group upholds high standards of corporate governance and ethics,
adhering to regulatory requirements and best practices to maintain transparency, accountability,
and trust among stakeholders.

The Schneider Model of Culture

Control Culture
- Tata Group exhibits elements of a control culture through its emphasis on efficiency, stability, and
operational excellence across its diverse businesses.
- Hierarchical structures may exist within certain Tata companies, with clear lines of authority and
decision-making processes to maintain order and streamline operations.

Collaboration Culture
- Tata Group also fosters a collaboration culture, encouraging teamwork, cooperation, and synergy
among its various companies and business units. The conglomerate promotes cross-functional
collaboration and knowledge sharing to leverage expertise and resources across different
industries and geographies.
- Tata Group's decentralized structure allows individual companies to collaborate and share best
practices while maintaining autonomy and flexibility.

Competence Culture
- Competence culture is evident in Tata Group's emphasis on excellence, innovation, and
continuous improvement across its businesses. The conglomerate invests in talent development,
 R&D, and technology to drive innovation, stay competitive, and address evolving market
demands.
- Tata Group values individual expertise, meritocracy, and a commitment to delivering high-quality
products and services to customers globally.

Cultivation Culture
- Tata Group demonstrates aspects of a cultivation culture through its focus on adaptability,
creativity, and personal development. The conglomerate encourages entrepreneurship, risk-
taking, and innovation among its employees, empowering them to explore new ideas and
initiatives.
- Tata Group's commitment to corporate social responsibility and sustainability reflects a
cultivation culture that values ethical conduct, social impact, and long-term thinking beyond
financial performance.

McKinsey 7S framework to Tata Group:

Strategy
- Tata Group's strategy encompasses diversified business interests across various industries,
including automotive, steel, telecommunications, IT services, and hospitality. The conglomerate
emphasizes long-term sustainable growth, innovation, and social responsibility, aiming to
address societal challenges while delivering value to shareholders.

Structure
- Tata Group operates through a decentralized organizational structure, allowing individual
companies within the conglomerate to maintain autonomy while benefiting from synergies and
shared resources. Each Tata company has its own leadership team and governance structure,
with Tata Sons serving as the holding company overseeing strategic direction and coordination.

Systems
- Tata Group's systems include operational processes, supply chain management, research and
development (R&D) capabilities, and corporate governance frameworks. These systems support
various business activities, including product development, manufacturing, distribution, and
compliance with regulatory requirements.

Skills
- Tata Group employs a diverse workforce with expertise in engineering, manufacturing,
technology, finance, marketing, and other fields. The conglomerate invests in talent development
and skill-building initiatives to foster innovation, leadership development, and continuous
improvement across its companies.

Staff
- Tata Group employs a large and geographically dispersed workforce globally, spanning different
industries and functions. The conglomerate values diversity, inclusivity, and ethical conduct,
promoting a culture of integrity, respect, and professional excellence among its employees.

Style
- Tata Group's leadership style is characterized by its core values of integrity, excellence,
understanding, unity, and responsibility (I-E-U-R), which guide decision-making and behavior
across the organization. Leaders within Tata Group demonstrate a commitment to ethical
leadership, stakeholder engagement, and long-term thinking, aligning with the conglomerate's
legacy of trust and social responsibility.
Shared Values
- Tata Group's shared values are deeply rooted in its founding principles and heritage, emphasizing
ethical business practices, community development, and environmental sustainability.

Tata Group's strong emphasis on ethics and integrity has set them apart. By consistently upholding
high ethical standards, they earned trust and credibility among stakeholders, which facilitated
business growth. Tata's culture prioritized long-term sustainability over short-term gains and this
approach enabled them to make strategic investments and decisions that might not yield immediate
profits but contributed to sustainable growth and resilience over time. Their firm adherence to
values makes investors, JV partners and suppliers assured that Tata will make decisions upholding
ethics. This confidence facilitates alliances, funding for new ventures and tolerance in difficult times.
Partners are willing to solve issues collaboratively than walking out due to faith in Tata's intentions.
Adhering to highly ethical principles and philanthropy even at the risks of lower margins has earned
Tata high trust in civil society and local communities. This has allowed them to operate smoothly,
open facilities in offbeat locations, and win support during controversies. Thus, this investment in
ethical leadership has created long-term value for them over multiple decades and instilling their
employees with the same values have helped them maintain consistent efforts in pursuing paths that
ensure resilience and a long-lasting legacy.

Conclusion
The comparative analysis of organizational culture between Amazon and the Tata Group reveals
distinct yet effective approaches to fostering excellence, sustainability, and stakeholder trust.
Amazon's culture, epitomized by its leadership principles and "Day 1" philosophy, emphasizes
customer obsession, innovation, and agility as drivers of success in a rapidly evolving market
landscape. This culture enables Amazon to maintain its competitive edge, scale new heights, and
continuously redefine industry standards. On the other hand, Tata Group's culture, rooted in its
values of integrity, excellence, and social responsibility, prioritizes long-term sustainability and ethical
leadership. By upholding high ethical standards and prioritizing community impact, Tata Group earns
trust and credibility among stakeholders, fostering resilience, longevity, and enduring value creation.

In essence, while Amazon's culture thrives on disruptive innovation and customer-centricity, Tata
Group's culture prioritizes ethical leadership and societal impact. Both approaches demonstrate the
importance of aligning organizational culture with strategic objectives to drive sustainable growth,
foster stakeholder trust, and create long-term value in a dynamic and competitive business
environment.