Indiana Institute of Technology Amazons Self Interest Discussion
Description
Review all classmates’ posts, and choose two to comment on. Try to select classmates who do not yet have feedback so that everyone receives feedback.
In your response to each classmate, please answer the following questions:
What other microeconomic and macroeconomic factors not mentioned in the post may influence the company and its business operations?
Which factors will have immediate influence on the business operations vs. more longer-term effects?
How could the firm’s managers “identify assets in low-valued uses and device ways to profitably move them to higher-values uses?” (Froeb et al, 2018)
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Discussion Board Post 1
Company Pursuit of Self-Interest
D.Bailey
1. Choose a company to use for this discussion. The company can be a U.S. firm, or a
firm from any country that is easily researchable using Internet search engines.
Amazon.
1. Identify the name of the firm and provide a brief description of the goods and/or
services that the firm produces.
Amazon, founded in 1994 by Jeff Bezos, is an online retailer and is probably considered to be the
largest online retailer to date. While Amazon offers a line of their own products, they also offer a
platform for other companies and individuals to exchange goods with consumers. Currently, Amazon
employs nearly 1,298,000 employees and to date as earned $386.1B in sales. Amazon has also
expanded into an online video streaming service and has developed virtual assistant technology like
Amazons Alexa. Amazon has also partnered with companies like Ring and incorporated their Alexa
technology to work with Rings video surveillance equipment.
1. Using the web, identify a second recent news about the company related to the
company’s pursuit of a new product or new market opportunity.
https://www.wowo.com/official-amazon-confirms-plant-for-fulfillment-delivery-centers-in-elkhartcounty/
https://www.businesswire.com/news/home/20211007005184/en/Amazon-Announces-New-RoboticsFulfillment-Center-and-Delivery-Station-in-Elkhart-County-Creating-More-Than-1000-New-Full-TimeJobs
https://www.southbendtribune.com/story/news/local/2021/10/07/elkhart-county-wins-more-than-200million-new-amazon-projects/6037491001/
1. Report the news in your own words.
It was recently reported that Amazon will be building two new buildings in Elkhart, Indiana. These
projects are expected to create roughly 1,000 new jobs in the area with an average starting rate of
$18.00 an hour. The first building will be an 800,000 square-foot order robotics fulfillment center and
the second will be a 180,000 square-foot delivery station. This announcement was welcomed by
county leaders with the hope of adding some diversification to the local economy. Both of these
projects are set to launch in 2023.
1. Explain how that news relates to the company’s pursuit or economic self-interest and
ability to create wealth.
It is no secret that Amazon has made it their mission to be the largest online retailer in the world.
From the endless number of items that are available, to expanding into different areas of technology,
Amazons ongoing expansion seems limitless. While Amazon used to, and to some extent still does,
rely on parcel carriers such as FedEx, UPS, and the USPS, Amazon launched their own delivery
service to better sever their consumers and remove the need for a third party to be involved in the
deliver process. As Amazon offers more items to their consumers and that consumer base continues
to grow, the need for new fulfillment centers and delivery centers will also increase. Investing in
projects like the one mentioned above will allow Amazon to offer more items and services more
quickly to local consumers in that area. As they gain that ability, the ability for Amazon to increase
their wealth generating potential will also increase.
1. Explain how the company’s pursuit of self-interest has resulted in certain decisions
and outcomes.
As previously mentioned, Amazons development of its own delivery service was a decision made
purely out of self-interest. Amazon would be able to delivery goods to their consumers themselves
rather than rely on the services of third part carriers. Since that service was developed, Amazon
went from no delivery services of their own to one that seems to get items to consumers faster than
the carriers they used to use for deliveries. The idea of developing a delivery service would have
been a huge undertaking and would have required a massive investment to launch the project.
1. How would you evaluate the outcomes as being positive/negative?
Amazon would evaluate the outcomes by comparing the investment to the return on that investment.
The investment being the cost of developing their own deliver service and how much of that
investment was returned by no longer needing to rely of third party carriers. As Prime delivery is also
a perk of being an Amazon Prime member, Amazon could also see a rise in paid memberships to
their Prime service because of the quick delivery that is offered as being a positive outcome. I
personally would want to know if the investment had saved Amazon in the long run and if the overall
service being provided to Amazons customers was being enjoyed by the customers. Happy
customers come back and continue to spend money where unhappy customers will explore different
avenues.
1. Explain what microeconomic and macroeconomic factors influence the company’s
pursuit of self-interest.
Assuming that Amazons self-interest would be their continuing expansion and development of
wealth, microeconomic factors that could influence this would include the labor market where their
new facilities are being built in Elkhart, In. The consumer behavior in the area where these facilities
are being
Discussion Board Post 2 A. H
1. Choose a company to use for this discussion. The company can be a U.S. firm, or a firm from any
country that is easily researchable using the Internet search engines.
Huntington Bank
2. Identify the name of the firm, and provide a brief description of the goods and/or services that the
firm produces.
Huntington Bank offers full-service consumer, small business, and commercial banking, mortgage,
treasury management, wealth and investment, trust, brokerage, and insurance services. It is located in
11 states and has 1,100 branches that span mainly throughout the Midwest.
3. Using the web, identify a second recent news about the company related to the companys pursuit of
a new product or new market opportunity.
a. Report the news in your own words.
Huntington Bank recently launched a new product called Early Pay. This new product allows
customers who have qualifying direct deposits access to their paycheck two days early. This
product launched not long after another new product called Standby Cash which is a line of
credit given to qualifying customers with no interest or fees if the customer signs up for
automatic payments.
Reference: https://www.prnewswire.com/news-releases/huntington-launches-early-paygiving-customers-early-access-to-paychecks-at-no-extra-cost-301321359.html
b. Explain how that news relates to the companys pursuit of economic self-interest and ability
to create wealth.
This news relates to Huntingtons pursuit of economic self-interest and ability to create wealth
through the act of making banking services available to more people. Huntington Bank has been
actively pursing opportunities this for years with the creation of these products along with
others in the past like a completely free checking account and a 24-hour grace period for
overdrafts. Huntington Bank says that everyone deserves a shot at financial success and by
providing products more people have access to, they increase their available market of
customers and create additional wealth.
4. Explain how the companys pursuit of self-interest has resulted in certain decisions and outcomes.
Huntingtons pursuit of self-interest through creating a completely free checking account to open up a
new market of customers resulted in future decisions being made to create other products that will help
that same market. Throughout the creation of additional products to make banking more accessible to
more people theyve been able to grow their revenues.
5. How would you evaluate the outcomes as being positive/negative?
Initially, I would evaluate the outcome as positive because it allows for many more customers to be
helped. Although a completely free checking account might not seem like something that would bring a
lot of revenue in, those customers are likely to participate in other products that make the bank revenue
like loans, credit cards, and mortgages if Huntington Bank handles that customers primary bank
account.
6. Explain what microeconomic and macroeconomic factors influence the companys pursuit of selfinterest.
A microeconomic factor that could influence Huntington Banks pursuit of self-interest is competition
from online banks like Capital One, Ally, and Chime, as well as many others. Online banks are also
getting more savvy to offer things like free checking accounts and access to paychecks days early.
Consumer behavior also comes into play here because younger generations are starting to be more
attracted to online banks versus feeling like they need the comfort of going into a physical bank. If
online banks are able to offer them better rates and products, Huntington may be at a disadvantage to
have so many physical locations with so many costs. Macroeconomic factors could be unemployment
effecting peoples abilities to have direct deposits which would disqualify them from some of the new
products Huntington Bank has recently launched. It may also start to affect their customers ability to
pay back loans and losses from checking accounts being forced close due to negative balances.
7. Who are the stakeholders that are impacted by the firms pursuit of economic self-interest?
Huntington Banks owners and employees are impacted by the firms pursuit of self-interest through
opening up banking services to more people in their regions. If it goes well, the company does well and
grows. If microeconomic and/or macroeconomic factors introduce challenges that are long-term and
make them reconsider their entire business model of who theyre trying to attract, that could mean
losses and possible layoffs and closing of branches. I also believe their customers are stakeholders who
are being highly impacted by Huntington pursuit of economic self-interest. Whether or not these
products are growing revenues for the company, theyre also making banking services more possible for
more people. The ability to cash your paycheck without being charged check cashing fees can make a big
difference for a lot of peoples finances.
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business management
Amazon
Self Interest
Management Strategies
Business and Finance
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