Organization Introduction, Thesis Statement, and ConclusionTota.docx

Organization: Introduction, Thesis Statement, and Conclusion
Total: 4.00
Distinguished - Paper is logically organized with a well-written
introduction, thesis statement, and conclusion.
Proficient - Paper is logically organized with an introduction,
thesis statement, and conclusion. One of these requires
improvement.
Basic - Paper is organized with an introduction, thesis
statement, and conclusion. One or more of the introduction,
thesis statement, and/or conclusion require improvement.
Below Expectations - Paper is loosely organized with an
introduction, thesis statement, and conclusion. The introduction,
thesis statement, and/or conclusion require much improvement.
Non-Performance - The introduction, thesis statement, and
conclusion are either nonexistent or lack the components
described in the assignment instructions.
Describes How the Type of Culture Influences Organizational
Behavior
Total: 4.00
Distinguished - Comprehensively describes how the type of
culture influences the behavior of the organization in a negative
or positive manner.
Proficient - Describes how the type of culture influences the
behavior of the organization in a negative or positive manner.
The description is slightly underdeveloped.
Basic - Somewhat describes how the type of culture influences
the behavior of the organization in a negative or positive
manner. The description is underdeveloped.
Below Expectations - Attempts to describe how the type of
culture influences the behavior of the organization in a negative
or positive manner; however, the description is significantly
underdeveloped.
Non-Performance - The description of how the type of culture

influences organizational behavior is either nonexistent or lacks
the components described in the assignment instructions.
Describes How the Modes of Communication Influence
Organizational Behavior
Total: 4.00
Distinguished - Comprehensively describes how the modes of
communication influence the behavior of the organization in a
negative or positive manner.
Proficient - Describes how the modes of communication
influence the behavior of the organization in a negative or
positive manner. The description is slightly underdeveloped.
Basic - Somewhat describes how the modes of communication
positive manner. The description is underdeveloped.
Below Expectations - Attempts to describe how the modes of
communication influence the behavior of the organization in a
negative or positive manner; however, the description is
significantly underdeveloped.
Non-Performance - The description of how the modes of
communication influence the organizational behavior is either
nonexistent or lacks the components described in the assignment
instructions.
Describes How the Nature of Authority Influences
Total: 4.00
Distinguished - Comprehensively describes how the nature of
authority influences the behavior of the organization in a
Proficient - Describes how the nature of authority influences the
Basic - Somewhat describes how the nature of authority
influences the behavior of the organization in a negative or

Below Expectations - Attempts to describe how the nature of
authority influences the behavior of the organization in a
Non-Performance - The description of how the nature of
authority influences the organizational behavior is either
instructions.
Describes How Virtual Elements Influence Organizational
Behavior
Total: 4.00
Distinguished - Comprehensively describes how virtual
elements influence the behavior of the organization in a
Proficient - Describes how virtual elements influence the
Basic - Somewhat describes how virtual elements influence the
The description is underdeveloped.
Below Expectations - Attempts to describe how virtual elements
positive manner; however, the description is significantly
underdeveloped.
Non-Performance - The description of how virtual elements
influence organizational behavior is either nonexistent or lacks
the components described in the assignment instructions.
Describes How Areas of EQ (Emotional Quotient) Influence
Total: 4.00
Distinguished - Comprehensively describes how areas of EQ
positive manner.
Proficient - Describes how areas of EQ influence the behavior

of the organization in a negative or positive manner. The
description is slightly underdeveloped.
Basic - Somewhat describes how areas of EQ influence the
The description is underdeveloped.
Below Expectations - Attempts to describe how areas of EQ
positive manner; however, the description is significantly
underdeveloped.
Non-Performance - The description of how EQ influences
organizational behavior is either nonexistent or lacks the
components described in the assignment instructions.
Describes How Motivational Techniques Influence
Total: 4.00
Distinguished - Comprehensively describes how motivational
techniques influence the behavior of the organization in a
Proficient - Describes how motivational techniques influence
the behavior of the organization in a negative or positive
manner. The description is slightly underdeveloped.
Basic - Somewhat describes how motivational techniques
Below Expectations - Attempts to describe how motivational
techniques influence the behavior of the organization in a
Non-Performance - The description of how motivational
techniques influence organizational behavior is either
instructions.
Written Communication: Content Development
Total: 0.85

Distinguished - Uses appropriate, pertinent, and persuasive
content to discover and develop sophisticated ideas within the
context of the discipline, shaping the work as a whole.
Proficient - Uses appropriate and pertinent content to discover
ideas within the context of the discipline, shaping the work as a
whole.
Basic - Uses appropriate and pertinent content, but does not
apply it toward discovering or developing ideas. Overall,
content assists in shaping the written work.
Below Expectations - Uses content, though it may be unrelated
or inappropriate to the topic. Content does not contribute
toward the development of the written work, and may distract
the reader from its purpose.
Non-Performance - The assignment is either nonexistent or
lacks the components described in the instructions.
Integrative Learning: Connects to Experience
Total: 0.85
Distinguished - Creates meaningful correlations among
experiences outside of the classroom to deepen understanding of
field of study and to broaden own viewpoints.
Proficient - Compares life experiences and academic knowledge
to distinguish differences and similarities while acknowledging
perspectives other than own.
Basic - Recognizes correlation between life experiences,
academic texts, and ideas perceived as similar and related to
own interests.
Below Expectations - Briefly comments about connections
between life experiences and academic texts.
Written Communication: Control of Syntax and Mechanics
Total: 0.80
Distinguished - Displays meticulous comprehension and
organization of syntax and mechanics, such as spelling and

grammar. Written work contains no errors, and is very easy to
understand.
Proficient - Displays comprehension and organization of syntax
and mechanics, such as spelling and grammar. Written work
contains only a few minor errors, and is mostly easy to
understand.
Basic - Displays basic comprehension of syntax and mechanics,
such as spelling and grammar. Written work contains a few
errors, which may slightly distract the reader.
Below Expectations - Fails to display basic comprehension of
syntax or mechanics, such as spelling and grammar. Written
work contains major errors, which distract the reader.
Written Communication: APA Formatting
Total: 0.80
Distinguished - Accurately uses APA formatting consistently
throughout the paper, title page, and reference page.
Proficient - Exhibits APA formatting throughout the paper.
However, layout contains a few minor errors.
Basic - Exhibits basic knowledge of APA formatting throughout
the paper. However, layout does not meet all APA requirements.
Below Expectations - Fails to exhibit basic knowledge of APA
formatting. There are frequent errors, making the layout
difficult to distinguish as APA.
Written Communication: Page Requirement
Total: 0.85
Distinguished - The length of the paper is equivalent to the
required number of correctly formatted pages.
Proficient - The length of the paper is nearly equivalent to the
required number of correctly formatted pages.
Basic - The length of the paper is equivalent to at least three

quarters of the required number of correctly formatted pages.
Below Expectations - The length of the paper is equivalent to at
least one half of the required number of correctly formatted
pages.
Written Communication: Source Requirement
Total: 0.85
Distinguished - Uses more than the required number of
scholarly sources, providing compelling evidence to support
ideas. All sources on the reference page are used and cited
correctly within the body of the assignment.
Proficient - Uses required number of scholarly sources to
support ideas. All sources on the reference page are used and
cited correctly within the body of the assignment.
Basic - Uses less than the required number of sources to support
ideas. Some sources may not be scholarly. Most sources on the
reference page are used within the body of the assignment.
Citations may not be formatted correctly.
Below Expectations - Uses inadequate number of sources that
provide little or no support for ideas. Sources used may not be
scholarly. Most sources on the reference page are not used
within the body of the assignment. Citations are not formatted
correctly.
1
Forbes School of Business APA Style Standards

These standards are excerpted from the 6
th
edition of the Publication Manual of the American
Psychological Association, published in 2010. These standards
are intended to provide an
overview of APA formatting necessary for Ashford University
writing assignments.
o Manuscript Format
d be 1 inch.
-point font and is
double-spaced
throughout.
of each page, ½
inch from the top, and are consecutive from the title page
through any
appendices. Preliminary pages contain numbers in lowercase
Roman
numerals.
o Title Page

o The term “Running head: YOUR TITLE” appears on first page
(i.e. Title Page) in the header. All subsequent pages contain
YOUR TITLE, but do not include the words “Running head,”
which is only for the title page.
o The running head needs to be left justified and on the same
line
as the page number throughout the document.
o The running head can be the title of the manuscript or a
shortened version of it.
o The title should concisely reflect the main idea of the
manuscript.
o The title should be typed with initial capitalizations for
nouns,
verbs, adjectives, and any prepositions five or more letters in
length.
o The title should be centered between the left and right
margins,

and positioned in the upper half of the page.
o Recommended title length: no more than 12 words.
or
o Abstract
2
of the
manuscript and it allows readers to survey the contents of the
manuscript
quickly.
script is
longer than 15-double
spaced pages, excluding the title page and reference page.
–250 words.
(after the title page).

ould appear with initial capitalization
and lowercase
letters, centered, at the top of the page, like a title.
indentation.
o The Introduction
f an abstract is
included]) and the
full title of the paper is centered one inch from the top of the
page with initial
capitalizations and lowercase letters (not underlined, boldfaced,
or italicized)
and is double-spaced above the first paragraph of text.
the thesis, the
statement of purpose, the argument, or the specific problem
under study.
o The Body
part of the paper (i.e. biggest).
topic/argument/problem/idea and discuss

it.
o The Summary/Conclusion
er and
restate the main idea
or argument.
and draw
inferences and conclusions from the research.
“Conclusion.”
o Reference List (See below, Standard 3, for specifics on
creating the Reference List)
sources used in the
paper which enable readers to easily retrieve the
sources/materials that were
cited.
eference cited in text must appear in the reference list.

o Any ideas that are not your own or are not common
knowledge must have an author-
date citation within the manuscript.
3
o In-text citations must at least follow the APA 6
th
edition standards related to citation
structure, citation of work from multiple authors, citation of
works with no author,
citation of direct quotes, and citation of electronic sources.
o Common Format Examples:
-text citation: Goodson (2013) found that higher
concentrations of
sulfur increased the odor of the spring water.
or
Parenthetical citation: Significant variation from the mean
results in a

higher probability of failure (Baker, 2012).
-text citation: Lawrence, Patrick, Evans and Smith (2009)
found…
[Use as first citation in text.]
ound…
[Use as subsequent first citation per paragraph thereafter.]
th
ed.) says, “When a work has no
identified author, cite in the text the first few words of the
reference
list entry (usually the title) and the year. Use double quotation
marks
around the title of an article, a chapter, or a web page and
italicize the
title of a periodical, a book, or a report” (p. 176).
o Parenthetical citation: High temperature is a common
predictor
of decreased employee morale in certain work areas

(“Workplace Dynamics,” 2013).
or
In-text citation: The book The Managers Perspective (2011)
outlined the…
or
Parenthetical citation: Garbage output is a predictor of
economic health (Anonymous, 2008).
o Citing quoted information (Periodical):
"Quote" (Kotter, 2012, para. 2).
or
As stated by Deming (1991), "quote" (para. 5).
o Citing quoted information (Books, Reference Books, &
Book Chapters):
"Quote" (Hersey & Blanchard, 1993, p. 47).
or
As stated by Laudon & Laudon (2012), "Quote" (p. 47).

4
o Citing paraphrased information:
Paraphrased text (Mintzberg, 2002).
or
According to Mintzberg (2002), paraphrased text.
use paragraph
numbers (use the abbreviation “para.”). If the document
includes headings
but does not provide page or paragraph numbers, cite the
heading and the
number of the paragraph following the heading.
(Chandler, 2010, "Training Managers," para. 2).
into text and
enclose the quotation with double quotation marks. If the
quotation comprises
of 40 or more words, display it in a freestanding block of text
and omit the
quotation marks.

o All manuscripts must have a reference list which begins after
the
summary/conclusion of the manuscript, on a separate page.
o The title of the page (i.e. References) should be centered and
not underlined,
boldfaced, or italicized.
o Reference list entries should be double-spaced, with the first
line of each reference
beginning at the left margin, and the second and subsequent
lines indented one-half
inch or seven spaces (a hanging indent). Double-spacing is also
used between entries.
o Entries should be in alphabetical order by the surname of the
first author followed by
initials of the author’s given name.
o Alphabetize group authors, such as associations or
government agencies, by the first
significant word of the name (e.g. The American Psychological
Association would be
alphabetized by “A” not “T”).
o Only if the work is signed “Anonymous” would you begin the
entry with the word

Anonymous spelled out and alphabetize the entry as if
Anonymous were a true name.
o A reference should contain the author name, date of
publication, title of the work and
publication date.
o Format:
Author's Last Name, Initials. (Publication Year). Title of
article. Title of
Periodical, volume # (issue #), pp–pp. doi:xx.xxxxxxxxxx
Cohen, A. (2006, December 10). The entrepreneurial mentality.
International Business Times, pp. A1, A4.
5
Stewart, T, (2012, December). Stockholder vs. stakeholder: The
true
power struggle. Corporate Governance and Ethics, 45(6), 30–31.

If no digital object identifier (DOI) is assigned, include the
home page URL
for the periodical using this format:
Retrieved from http://www.xxxxxxxxx.xxx
Author's Last Name, Initials. (Publication Year). Title of book.
Location:
Publisher.
or
Retrieved
from http://www.xxxxxxx.xxx
or
doi:xxxxxxx
or
Editor's Last Name, Initials. (Ed.). (Publication Year). Title of
book.

Location: Publisher.
o These standards should be applied to all FSB written
assignments.
o Within discussion forums, APA citations and reference lists
may be required for all
posts. It is at the discretion of the faculty as to what the
requirement will be for each
course.
Links to supplemental APA citation, referencing, and formatting
examples from the Ashford
University Writing Center include:
APA Checklist: https://awc.ashford.edu/cd-apa-checklist.html
Sample Title Page:
https://awc.ashford.edu/PDFHandouts/sample_apa_title_page.pd
f
Sample References List:
https://awc.ashford.edu/PDFHandouts/APA_References_List_Sa
mple.pdf
Sample Formatted Paper: https://awc.ashford.edu/research-
papers-sample.html
Comprehensive APA Reference List Models:

https://awc.ashford.edu/cd-apa-reference-
models.html
https://awc.ashford.edu/cd-apa-checklist.html
https://awc.ashford.edu/PDFHandouts/sample_apa_title_page.pd
f
https://awc.ashford.edu/PDFHandouts/APA_References_List_Sa
mple.pdf
https://awc.ashford.edu/research-papers-sample.html
https://awc.ashford.edu/cd-apa-reference-models.html
https://awc.ashford.edu/cd-apa-reference-models.html
AMAZONFRESH IS JEFF BEZOS' LAST MILE QUEST FOR
TOTAL RETAIL DOMINATION
AMAZON UPENDED RETAIL, BUT CEO JEFF BEZOS --
WHO JUST BOUGHT THE WASHINGTON POST FOR $250
MILLION -- INSISTS IT’S STILL "DAY ONE." WHAT
COMES NEXT? A RELENTLESS PURSUIT OF CHEAPER
GOODS AND FASTER SHIPPING. THE COMPETITION IS
ALREADY GASPING FOR BREATH.
BY J.J. MCCORVEY
29 COMMENTS
EMAIL
The first thing you notice about Jeff Bezos is how he strides
into a room.
A surprisingly diminutive figure, clad in blue jeans and a blue
pinstripe button-down, Bezos flings open the door with an
audible whoosh and instantly commands the space with his
explosive voice, boisterous manner, and a look of total
confidence. "How are you?" he booms, in a way that makes it
sound like both a question and a high-decibel announcement.
MORE ON AMAZON
· Amazon CEO Jeff Bezos Agrees To Buy The Washington Post
For $250 Million
· Need A Job? Amazon Is Hiring 5,000 People

· Think Your Office Is Soulless? Check Out This Amazon
Fulfillment Center
Each of the dozen buildings on Amazon's Seattle campus is
named for a milestone in the company's history--Wainwright,
for instance, honors its first customer. Bezos and I meet in a
six-floor structure known as Day One North. The name means
far more than the fact that Amazon, like every company in the
universe, opened on a certain date (in this case, it's July 16,
1995). No, Day One is a central motivating idea for Bezos, who
has been reminding the public since his first letter to
shareholders in 1997 that we are only at Day One in the
development of both the Internet and his ambitious retail
enterprise. In one recent update for shareholders he went so far
as to assert, with typical I-know-something-you-don't flair, that
"the alarm clock hasn't even gone off yet." So I ask Bezos:
"What exactly does the rest of day one look like?" He pauses to
think, then exclaims, "We're still asleep at that!"
He's a liar.
Amazon is a company that is anything but asleep. Amazon, in
fact, is an eyes-wide-open army fighting--and winning--a battle
that no one can map as well as its general. Yes, it is still the
ruthless king of books--especially after Apple's recent loss in a
book price-fixing suit. But nearly two decades after its real day
one, the e-commerce giant has evolved light-years from being
just a book peddler. More than 209 million active customers
rely on Amazon for everything from flat-panel TVs to dog food.
Over the past five years, the retailer has snatched up its most
sophisticated competition--shoe seller Zappos and Quidsi,
parent of such sites as Diapers.com, Soap.com, Wag.com, and
BeautyBar.com. It has purchased the robot maker Kiva Systems,
because robots accelerate the speed at which Amazon can
assemble customer orders, sometimes getting it down to 20
minutes from click to ship. Annual sales have quadrupled over
the same period to a whopping $61 billion. Along the way,
incidentally, Amazon also became the world's most trusted

company. Consumers voted it so in a recent Harris Poll,
usurping the spot formerly held by Apple.
RELATED ARTICLE
· Retail's Game Of Thrones: Citizens of these kingdoms know
the stakes--you innovate or you die.
Amazon has done a lot more than become a stellar retailer. It
has reinvented, disrupted, redefined, and renovated the global
marketplace. Last year, e-commerce sales around the world
surpassed $1 trillion for the first time; Amazon accounted for
more than 5% of that volume. This seemingly inevitable shift
has claimed plenty of victims, with more to come. Big-box
retailers like Circuit City and Best Buy bore the brunt of
Amazon's digital assault, while shopping-mall mainstays such
as Sears and JCPenney have also seen sales tank. Malls in
general, which once seemed to offer some shelter from the
online pummeling, have been hollowed out. By Green Street
Advisors' estimate, 10% of the country's large malls will close
in the next decade. It has become painfully clear that the chance
to sift through bins of sweaters simply isn't enough of a draw
for shoppers anymore. "It has been this way in retail forever,"
says Kevin Sterneckert, a research VP at Gartner who focuses
on shopping trends, and who lays out a strategy that should
blow nobody's mind: "If you don't innovate and address who
your customers are, you become irrelevant." And now that
means fending off threats from every phone, tablet, and laptop
on the planet.
Amazon's increasing dominance is now less about what it sells
than how it sells. And that portends a second wave of change
that will further devastate competitors and transform retail
again. It's not just "1-Click Ordering" on Amazon's mobile app,
which is tailor-made for impulse buying. It's not just the
company's "Subscribe & Save" feature, which lets customers
schedule regular replenishments of essentials like toilet paper
and deodorant. It's not just Amazon's "Lockers" program, in
which huge metal cabinets are installed at 7-Elevens and Staples

in select cities, letting customers securely pick up packages at
their convenience instead of risking missed (or stolen)
deliveries.
AMAZONFRESH IS REALLY A TROJAN HORSE. IT'S NOT
ABOUT WINNING IN GROCERY SERVICES. IT'S ABOUT
DOMINATING THE MARKET IN SAME-DAY DELIVERIES.
No, it's all this, plus something more primal: speed. Bezos has
turned Amazon into an unprecedented speed demon that can
give you anything you want. Right. Now. To best understand
Amazon's aggressive game plan--and its true ambitions--you
need to begin with Amazon Prime, the company's $79-per-year,
second-day delivery program. "I think Amazon Prime is the best
bargain in the history of shopping," Bezos tells me, noting that
the service now includes free shipping on more than 15 million
items, up from the 1 million it launched with in 2005. Prime
members also gain access to more than 40,000 streaming Instant
Video programs and 300,000 free books in the Kindle Owners'
Lending Library. As annoying as this might be to Netflix, it is
not intended primarily as an assault on that business. Rather,
Bezos is willing to lose money on shipping and services in
exchange for loyalty. Those 10 million Prime members (up from
5 million two years ago, according to Morningstar) are
practically addicted to using Amazon. The average Prime
member spends an astounding $1,224 a year on Amazon, which
is $700 more than a regular user. Members' purchases and
membership fees make up more than a third of Amazon's U.S.
profit. And memberships are projected to rise 150%, to 25
million, by 2017.
Nadia Shouraboura of Hointer, a new store that represents how
retail must adapt in the Age of Amazon
Robbie Schwietzer, VP of Prime, is more candid than his boss
when explaining Prime's true purpose: "Once you become a
Prime member, your human nature takes over. You want to
leverage your $79 as much as possible," he says. "Not only do
you buy more, but you buy in a broader set of categories. You
discover all the selections we have that you otherwise wouldn't

have thought to look to Amazon for." And what you buy at
Amazon you won't buy from your local retailer.
Prime is phase one in a three-tiered scheme that also involves
expanding Amazon's local fulfillment capabilities and a nascent
program called AmazonFresh. Together, these pillars will
remake consumers' expectations about retail. Bezos seems to
relish the coming changes. "In the old world, you could make a
living by hoping that your customer didn't know whether your
price was actually competitive. That's a very"--Bezos pauses for
a second to rummage for the least insulting word--"tenuous
strategy in the new world. [Now] you can't convince people you
have the low price; you actually have to have the low price. You
can't persuade people that your delivery speeds are fast; you
actually have to have fast delivery speeds!" With that last
challenge, he erupts in a thunderous laugh, throwing his cleanly
depilated head so far back that you can see the dark fillings on
his upper molars. He really does seem to know something the
rest of us don't. We're still asleep, he says? The alarm clock at
Amazon went off hours ago. Whether the rest of the retail world
has woken up yet is another question.
Amazon's 1-million-square-foot Phoenix fulfillment center
produces a steady and syncopated rhythm. It is the turn of
mechanical conveyor belts, the thud of boxes hitting metal, the
beeping of forklifts moving to and fro, and the hum of more
than 100 industrial-size air conditioners whirring away. This is
the sound of speed--a sonic representation of what it takes to
serve millions of customers scattered across the globe.
In centers like this one, of which there are 89 globally (with
more to come), Amazon has built the complex machinery to
make sure a product will ship out in less than 2.5 hours from the
time a customer clicks place your order. From that click, a set
of algorithms calculates the customer's location, desired
shipping speed, and product availability; it then dispatches the
purchase request to "pickers" on duty at the nearest fulfillment
center. The system directs the new order to the picker who is

closest on the floor to that product, popping up with a bleep on
the picker's handheld scanner gun. These men and women roam
the sea of product shelves with carts, guided by Amazon's
steady hand to the precise location of the product on the color-
coded shelves. The picker gathers the item and puts it into a bin
with other customer orders. And from there, the item zooms off
on a conveyor belt to a boxing station, where a computer
instructs a worker on what size box to grab and what items
belong in that box. After the packer completes an order, the
word success lights up in big green letters on a nearby computer
screen. Then the package goes back on a conveyor, where the
fastest delivery method is calculated by scanning the box, which
is then kicked down a winding chute to the appropriate truck.
AMAZON-PROOF RETAIL
How one store merges digital and physical
If anyone can design a brick-and-mortar store for an e-
commerce world, it should be Nadia Shouraboura. She used to
be Amazon's VP of global supply chain and fulfillment
technology and has since created Hointer, a fully automated
store run on software algorithms and machinery. She calls it a
"microwarehouse" that marries digital's instant gratification
with in-store benefits. "In apparel, this will win," she predicts.
It works like this:
STEP 1. SEARCH
A customer enters the spare store, where there's only one of
every product in view. She pulls up the Hointer app, scans the
QR code on a pair of jeans she likes, and enters her size.
STEP 2. DELIVER
Within 30 seconds of scanning the code, a pair of jeans in her
size travels through a chute and lands in her dressing room. She
can scan as many items as she likes.
STEP 3. REFINE
Inside the dressing room, she tries on the jeans, but they're too
baggy. So she chucks them down another chute and selects a
smaller size from the app.
STEP 4. PURCHASE

The jeans fit! She pays on her phone or swipes her card at a
kiosk, and leaves the store with her purchase. No sales clerk
necessary.
The process is efficient, but still lower tech than it could be.
Although Amazon shelled out $775 million last year for those
orange Kiva robots, it says it's still "evaluating" how to deploy
the bots, and they're nowhere to be seen here. "Fulfillment by
Amazon" is still a very human endeavor--and the company's
creativity thrives within that limitation. A team at the Phoenix
center is constantly thinking of ways to chip away at the 2.5-
hour processing time. For instance, when products arrive from
Amazon's vendors and the 2 million third-party merchants who
sell their goods on the site, workers now scan them into
Amazon's inventory system (again, with a handheld gun) instead
of entering the details manually. Also, products have been
stowed on shelves in what otherwise might appear to be a
random way--for example, a single stuffed teddy bear might be
next to a college biology book--because it reduces the potential
distance a worker must trek between popular products that
might be ordered together. Small tweaks like these have an
impact: In the past two years, Amazon has reduced the time it
took to move a product by a quarter. During the past holiday
season, the company processed 306 items per second worldwide.
These centers aren't just about warehouse speed, though:
They're also about proximity. Over the past several years, Bezos
has poured billions into building them in areas closer and closer
to customers. The Phoenix warehouse, one of four in the region,
serves a metro area of nearly 4 million. Robbinsville, New
Jersey, is roughly one hour from 8 million New Yorkers.
Patterson, California, is an hour and a half from 7 million
people living in the San Francisco Bay Area. Three locations in
Texas--Coppell, Haslet, and Schertz--will serve not only the
nearly 9 million citizens of the Dallas and San Antonio metro
areas but also the other 17 million or so customers in the state
(and possibly neighboring states too) who live only a few
hundred miles away.

"What you see happening," Bezos explains, "is that we can have
inventory geographically near major urban populations. If we
can be smart enough--and when I say 'smart enough,' I mean
have the right technology, the right software systems, machine-
learning tools--to position inventory in all the right places, over
time, your items never get on an airplane. It's lower cost, less
fuel burned, and faster delivery."
The holy grail of shipping--same-day delivery--is tantalizingly
within reach. Amazon already offers that service in select cities,
what it calls "local express" delivery, but the big trick is to do it
nationally. And the crucial element of this ambitious plan is
revealed by something wonkier than a bunch of buildings. It is
something only an accountant could see coming: a cunning shift
in tax strategy.
"IN THE NEW DIGITAL WORLD," SAYS BEZOS, "YOU
CAN'T CONVINCE PEOPLE YOU HAVE THE LOW PRICE;
YOU ACTUALLY HAVE TO HAVE THE LOW PRICE."
If you were a competitor who knew what to listen for, you'd
practically hear the Jaws theme every time Bezos said the
word taxes. For years, Amazon fervently avoided establishing
what is called a "tax nexus"--that is, a large-enough physical
presence--in states that could potentially force it to collect sales
tax from its customers, something brick-and-mortar and mom-
and-pop stores had long argued would finally remove Amazon's
unfair pricing advantage. In states that dared to challenge
Amazon, the company would quickly yank operations. The
scrutiny even extended to its sale of products by other
merchants. "We had to be very careful, even with the third-party
business, about not incurring tax-nexus stuff," recalls John
Rossman, a former Amazon executive and current managing
director at Alvarez and Marsal, a Seattle-based consulting firm.
But Amazon has since changed its mind. It determined that the
benefits of more fulfillment centers--and all the speed they'll
provide--will outweigh the tax cost they'll incur. So it began
negotiating with states for tax incentives. South Carolina agreed
to let the company slide without collecting sales tax until 2016,

in exchange for bringing 2,000 jobs to the state. In California,
Amazon was given a year to start collecting taxes in exchange
for building three new warehouses. And at the end of 2011,
Amazon even threw its support behind a federal bill that would
mandate all online retailers with sales of more than $1 million
to collect tax in states in which they sold to customers. In 2012
alone, Amazon spent $2.5 million lobbying for issues that
included what's known as the Marketplace Fairness Act--the
same law, essentially, it had once moved heaven and earth to
eradicate. The bill recently cleared the U.S. Senate and awaits
passage in the House.
"The general perception is companies thinking, Oh, great,
finally a level playing field," Rossman says. "But other retailers
are going to regret the day. Sales tax was one of the few things
impeding Amazon from expanding. Now it's like wherever
Amazon wants to be, whatever Amazon wants to do, they are
going to do it."
There's yet another weapon in Amazon's offensive, and it's
ready for rollout. It's called AmazonFresh, a grocery delivery
service that has long been available only in Seattle. The site has
a selection of 100,000 items, and from my hotel room in that
city on a recent Saturday at 11 a.m., I gave it a try. I clicked on
chips, bananas, apples, yogurt, and a case of bottled water--
along with a DVD of Silver Linings Playbook and a Moleskine
reporter's notebook. After checking out and paying the $10
delivery fee, I requested my goods to arrive during the 7 p.m. to
8 p.m window. At 7:15 that evening, De, my AmazonFresh
delivery woman, showed up in the lobby. She helped carry my
bags up the elevator and to my hotel room, and tried several
times to refuse a $5 tip for the trouble I put her through in the
name of research. It was simple, easy--and for Amazon
competitors, very threatening.
De and the Kiva robots are central to what Amazon sees as the
future of shopping: whatever you want, whenever you want it,
wherever you want it, as fast as you demand it. AmazonFresh is

expected to expand soon to 20 more urban markets--including
some outside America. Los Angeles became the second
AmazonFresh market, this past June, and customers there were
offered something the folks in Seattle must wish they got: a free
trial of Prime Fresh, the upgrade version of Amazon Prime,
which provides free shipping of products and free delivery of
groceries for orders over $35. Subscribers will pay an annual
fee of $299. Considering that grocery delivery otherwise costs
between $8 and $10 each time (depending on order size), the
subscription covers itself after about 30 deliveries--which busy
families will quickly exceed.
Bezos, in his cagey, friendly way, seems more excited about my
Fresh experience than he is about describing Fresh's future. He
seems almost surprised that the service worked so well at a
hotel, given that it was designed for home delivery. "Thank
you!" he shouts. After peppering me with questions on how,
precisely, the delivery went down, he finally gets around to
addressing the service's business purpose.
WE WON'T INVEST IN A COMPANY UNLESS THEY CAN
TELL US WHY THEY WON'T GET STEAMROLLED BY
AMAZON.
"We'd been doing a very efficient job with our current
distribution model for a wide variety of things," Bezos says.
"Diapers? Fine, no problem. Even Cheerios. But there are a
bunch of products that you can't just wrap up in a cardboard box
and ship 'em. It doesn't work for milk. It doesn't work for
hamburger." So he developed a service that would work--not
because he suddenly wanted to become your full-service grocer
but because of how often people buy food.
AmazonFresh is actually a Trojan horse, a service designed for
a much greater purpose. "It was articulated [in the initial,
internal pitch to Bezos] that this would work with the broader
rollout of same-day delivery," says Tom Furphy, a former
Amazon executive who launched Fresh in 2007 and ran it until
2009. Creating a same-day delivery service poses tremendous
logistical and economic hurdles. It's the so-called last-mile

problem--you can ship trucks' worth of packages from a
warehouse easily enough, but getting an individual package to
wind its way through a single neighborhood and arrive at a
single consumer's door isn't easy. The volume of freight and
frequency of delivery must outweigh the costs of fuel and time,
or else this last mile is wildly expensive. You can't hire a
battalion of Des unless they earn their keep. So by expanding
grocery delivery, Amazon hopes to transform monthly
customers to weekly--or even thrice-weekly--customers. And
that, in turn, will produce the kind of order volume that makes
same-day delivery worth investing in. "Think of the synergy
between Prime, same-day delivery, and Fresh," says Furphy.
"When all of those things start working in concert, it can be a
very beautiful thing."
AmazonFresh is arguably the last link in Bezos's big plan: to
make Amazon the dominant servicer--not just seller--of the
entire retail experience. The difference is crucial. Third-party
sellers, retailers large and small, now account for 40% of
Amazon's product sales. Amazon generally gets up to a 20%
slice of each transaction. Those sellers are also highly
incentivized to use Fulfillment by Amazon (known as FBA).
Rather than shipping their products themselves after a sale is
made on the Amazon site, these retailers let Amazon do the
heavy lifting, picking and packing at places like the Phoenix
center. For the sellers, an FBA agreement grants them access to
Prime shipping speeds, which can help them win new customers
and can allow them to sell at slightly higher prices. For
Amazon, FBA increases sales, profits, and the likelihood that
any shopper can find any item on its website.
NOW YOU HAVE SMART BRICK-AND-MORTAR STORES
SAYING, 'WHY ISN'T OUR EXPERIENCE MORE
INTUITIVE, AS IT IS ON THE WEB?'
The burgeoning AmazonFresh transportation network will help
expand these numbers. In Los Angeles and Seattle, a fleet of
Fresh trucks delivers everything from full-course meals to

chocolate from local merchants. The bright green branded
trucks--with polite drivers in branded uniforms--let Amazon
personify its brand, giving it the same kind of trustworthy
familiarity that fueled the rise of UPS in the 1930s. "If you have
all kinds of fly-by-night operations coming to your door, people
don't like that," says Yossi Sheffi, professor and director of the
MIT Center for Transportation and Logistics. "It's different with
someone in a U.S. Postal Service or FedEx uniform. Those
brands inspire confidence."
As Amazon evolves into a same-day delivery service, its active
transportation fleet could become yet another competitive
advantage. By supplementing its long-term relationships with
UPS and FedEx with its own Fresh trucks, Amazon may well be
able to deliver faster than retailers that depend entirely on
outside services. "Pretty soon, if you're a retailer with your
online business, you're going to be faced with a choice," says
Brian Walker, a former analyst at Forrester Research who is
now with Hybris, a provider of e-commerce software. "You're
not going to be able to match Amazon, so you're going to have
to consider partnering with them and leveraging their network."
This shift could even turn Amazon into a competitor to UPS and
FedEx, the long-standing duopoly of next-day U.S. shipping. "If
Amazon could do it at enough scale, they could offer shipping
at a great value and still eke out some margin," says Walker. "In
classic Amazon fashion, they could leverage the infrastructure
they've built for themselves, take a disruptive approach to the
pricing, and run it as an efficiency play."
Amazon has been down this road before. Its Web Services began
as an efficient, reliable back end to handle its own web
operations--then became so adept that it now provides digital
services for an enormous range of customers, including Netflix
and, reportedly, Apple. It's not impossible to imagine Amazon
doing the same with shipping. Last year, the company cut its
shipping costs as a percentage of sales from 5.4% to 4.5%. As it
builds more distribution centers, installs more lockers, and
builds out its fleet, Amazon is likely to drive those efficiency

costs down even further.
So is Amazon Freight Services Bezos's next mission? When I
ask, the laugh lines vanish from his face as if someone flipped a
switch on his back. He contends that same-day delivery is too
expensive outside of urban markets and that it only makes sense
for Amazon to deliver its own products within the Fresh
program. In China, he explains, Amazon does in fact deliver
products via many couriers and bicycle messengers. "But in a
country like the United States," he says, "we have such a
sophisticated last-mile delivery system that it makes more sense
for Amazon to use that system to reach its customers in a rapid
and accurate way." When I ask whether he would consider, say,
buying UPS, with its 90,000 trucks--or even more radically,
purchasing the foundering USPS, with its 213,000 vehicles
running daily through America's cities and towns--Bezos scoffs.
But he won't precisely say no.
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Ebay Now Deliveryman
Rivals aren't waiting for an answer. EBay has launched eBay
Now, a $5 service that uses its own branded couriers in New
York, San Francisco, and San Jose, to fetch products from local
retail stores like Best Buy and Toys "R" Us and deliver them to
customers within an hour. Google, fully aware that Amazon's
market share in product search is substantial (now 30% to
Google's 13%), has launched a pilot service called Google
Shopping Express, which partners with courier companies.
Walmart--which has booted all Kindles from its stores--started
testing same-day delivery in select cities during the last holiday
season, shipping items directly from its stores. (Joel Anderson,
chief executive of Walmart.com, even suggested paying in-store
shoppers to deliver online orders to other customers the same
day. Come for a handsaw, leave with a job!)
These are the sort of ideas that retailers--both e-commerce and
physical, large and small--will have to consider as Amazon

expands. Guys like Jeff Jordan, partner at well-known venture
firm Andreessen Horowitz, will make sure of it. His firm
follows and invests in direct-to-consumer businesses. "We won't
invest in a company," he says, "unless they can tell us why they
won't get steamrolled by Amazon."
Given the astounding growth of Amazon, and the seemingly
infinite ways it has defied the critics, Bezos may have proved
himself the best CEO in the world at taking the long view. But
he doesn't like talking about it. "Did you bring the crystal ball?
I left mine at home today," he quips. He does, however, like
discussing what the future might bring for his customers. In
fact, he likes talking about his customer so much that the word
can seem like a conversational tic; he used it 40 times, by my
count, in just one interview. "It's impossible to imagine that 10
years from now, I could interview an Amazon customer and they
would tell me, 'Yeah, I really love Amazon. I just wish your
prices were a little higher,'" he says. "Or, 'I just wish you'd
deliver a little more slowly.'" In Bezos's world, the goal of the
coming decade is a lot like the goal of the past two: Be cheap.
Be fast. That's how you win.
There is, naturally, no guarantee that Bezos will simply win and
win and win. The bigger Amazon gets, the greater the number
and variety of stakeholders required to make the Amazon
machine hum. Many seem to be getting increasingly frustrated.
Consider Amazon's third-party sellers--that group making up
40% of the company's product sales. Earlier this year, Amazon
issued a series of fee hikes for use of its fulfillment services,
ranging from as low as 5 cents per smallish unit to as much as
$100 for heavier or awkwardly shaped items (like a whiteboard,
say, or roll-away bed). Many sellers took to Amazon's forums to
complain, and others threatened to go to eBay, which mostly
leaves fulfillment to its sellers. "I think Amazon is a necessary
evil," says Louisa Eyler, distributor for Lock Laces, a shoelace
product that sells as many as 3,000 units per week on Amazon.
After the price hike, Eyler says her total fees for the $7.99 item

went from $2.37 to $3.62. She says Amazon now makes more
per unit than she does.
Or consider the frustrations of Amazon employees, who are
striking at two of its eight German facilities in an effort to
wrest higher wages and overtime pay. At the height of the
conflict, on June 17, 1,300 workers walked off the job. (It is
one of Amazon's largest walk-offs in its biggest foreign market,
and could result in shipping delays.) Meanwhile, Amazon
workers in the U.S. have filed a lawsuit claiming that they've
been subject to excessive security checks--to search for pilfered
items--at warehouses. The suit alleges their wait could last as
long as 25 minutes, an inconvenience Amazon would never
subject its customers to. "It means there's a broken process
somewhere," says Annette Gleneicki, an executive at Confirmit,
a software company that helps businesses capture customer and
employee feedback. "[Bezos] clearly inspires passion in his
employees, but that's only sustainable for so long."
The company could be vulnerable on other fronts as well.
Target and Walgreens have "geo-fenced" their stores so their
mobile apps can guide customers directly to the products they
desire. Walmart and Macy's have begun making their stores do
double-duty, both as a place to shop and a warehouse from
which to ship products. (The strategy seems to be paying off for
Macy's, which recently reported a jump in first-quarter profit
and is now fulfilling 10% of its online purchases from its
stores.) They're proving that retail won't go away--it'll learn and
adapt. "Now you have smart brick-and-mortar stores saying,
Why isn't our experience more intuitive, as it is on the web?"
says Doug Stephens, author of The Retail Revival: Re-
Imagining Business for the New Age of Consumerism. "We
should know a consumer when they walk in, and what they
bought before, in the same way as Amazon's recommendation
engine."
Bezos won't admit to any deep concern. While Amazon's paper-
thin profits continue to perplex observers (the company netted
only $82 million in the first quarter of 2013), the three primary

weapons in its retail takeover--fulfillment centers, Amazon
Prime, and now AmazonFresh--are coming to maturity. If the
next year tells us anything about Amazon's future, it should
reveal whether Bezos's decision to plow billions back into these
operations will give the company an end-to-end service
advantage that might be nearly impossible for its competitors to
overcome.
The sun seems to be setting on Bezos's big Day One. Before we
part ways in Seattle, I ask him what we can expect to see on
Day Two. "Day Two will be when the rate of change slows," he
replies. "But there's still so much you can do with technology to
improve the customer experience. And that's the sense in which
I believe it's still Day One, and that it's early in the day. If
anything, the rate of change is accelerating."
Of course, Bezos is the accelerator.
[Photo by Pari Dukovic, grooming: Erin Skipley; José
Mandojana (Shouraboura)]

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