Amazon's Jeff Bezos could reinvigorate AMD

CSU-Global Campus ORG-545Critical Thinking 1- Diversity Law/Regulation

Presentation

1Presented by: Kyle D. Von Jares

How Jeff Bezos could reinvigorate struggling Advanced Micro Devices (AMD)

2

History and background of AMD

• Founded in 1969 by Jerry Sanders & seven colleges formerly from Fairchild Semiconductor • Created high quality electronics such as the first mini-computer and modem• After 5 years of business had over 200 products and $25 million annually in sales

• Known for creating leading edge computer micro-processors

• By 2001 AMD’s products greatly exceeded performance of competitors

• AMD products can be found in most computers as well as Sony Playstation 4 & Microsoft XBox One

(AMD, 2013; Santa Clara Valley Historical Association, 2008)

3

History and background of Jeff Bezos

• Started as an engineer in the oil field • Worked in the atomic energy field• Created the first successful enterprise in e-commerce• Founder and CEO of Amazon.com• Succeeds where others fail

Jeffrey P. Bezos Born: Jan 12th, 1964Education: Princeton UniversityFounder and Current CEO of AmazonForbes 15th Most Powerful Person

(Academy of Achievement, 2013; Williams, 2003)

(Forbes, 2013)

4

Struggles of AMD

• In 2000, created one of the most successful microprocessor chips ever resulting in $1 billion in profits for AMD• Showman CEO, Jerry Sanders was free spending of company profits in the 2000’s• In 2012, AMD lost over $1 billion in company revenue wiping away 2010 and 2011 company profits of $960 million total

• Over the last 15 years lost over $7 billion in company profits• Company credit rating downgraded • In early 2013, had to sell its company headquarters in Austin, TX for cash

(Farivar & Cunningham, 2013)

5

Expertise of Bezos

• Innovator • Proven track record of success• Pushes and expands boundaries

• Understands the value of risk• Strong business-sense• Technology expertise

(Filloux, 2013; Maidment, 2013; Martin, 2013)

6

Bezos Leadership values

• Assertive• No-nonsense attitude• Demands excellence• Accountability• Confrontational• Optimism• Innovation• Sustainability oriented

(Anders, 2012; Dunn, 2013; Stone, 2013)

7

Bezos Leadership personality

• Intelligent• Dynamic• Rare• Original• Frugal• Opportunistic • Scrupulous gambler

(Deutschman, 2004)

8

Leadership-member exchange theory

• Increased job satisfaction• Satisfaction of supervisors• Employee commitment • Decreased role conflict & job turnover

• Strong emphasis on independent work• Greater individual responsibility• Latitude and Accountability

(Graen & Uhl-Bien, 1995; Lunenburg, 2010)

9

Situational leadership theory

• Utilizes directive and supportive behaviors• Directing behaviors in order to command control of an organization when it is necessary• Leaders can evaluate state of organization and implement best method• Used by managers properly would result in increased productivity

(Hersey & Blanchard, 1996; Northouse, 2013)

10

Theory E & Theory O

THEORY E: • Hard approach to re-organizing a company• Involves layoffs • Downsizing• Restructuring THEORY O:

• Soft approach to re-organizing a company• Obtaining feedback from employees, leaders, stakeholders• Reflecting• Making organizational changes

(Beer & Nohria, 2000)

11

Charismatic leadership theory

• Dominant and take charge during crisis• Strong leader who provides motivation and direction

• Provides organizational structure• Articulates a vision to their followers

• Charismatic leaders reinvigorate companies• Use communication• Great morals, ethics, and learn to adapt

(Bell, 2013; Conger & Kanungo, 1998; Eklin, 2009; Northouse, 2013)

12

Transformational leadership theory

• Effectively change an organization in a short time• Can have a varying moral compass

• Complete organizational and individual goals• Great transformational leaders separate themselves from other leaders

(Bass & Steidlmeiser, 1999)

13

Team approach leadership theory

• Organizations who don’t use team approach have problems• Utilizes 5-7 person working teams just like Google does

• 90% of leaders state teams are vital to success• Without teams vision and goals are not met

(Deutschman, 2004; Morgeson, DeRue, & Karam, 2010; Northouse, 2013)

14

Proven decision-making abilities

• Bezos increased net worth 6 fold in last decade• Innovative and inspiring organizational leader• Trend-setter

• Successfully restructured Amazon while the company was in debt• Heir apparent to Steve Jobs’ innovation and success• Fasting growing retailer in the world (Streitfeld & Haughney, 2013)

15

Recommendations to change AMD organizational structure

• Select a new innovative, charismatic, inspirational leader with a sound vision for the organization• Emulate the structure and leadership methods of Bezos

• Hold leaders accountable• Promote team building and independent thinking• Expect greatness, set high standards, and rethink goals of the organization

16

Conclusion

• AMD once was a highly successful semiconductor microchip producing company• AMD once boasted the accomplishment of over $1 billion in revenue in one year • AMD fell from their dominance due to disorganization, bad leadership, and missteps• Jeff Bezos created Amazon.com and is now one of the most distinguished leaders in the world• Bezos is innovative, decisive, and an expert leader in technology to turn AMD around

17

Conclusion continued

• AMD could be brought back on track through different successful leadership theories• Leader-member exchange theory would change bad behavior through delegation and directing• Theory E & O would target the weak spots of the organization and eliminate them• A charismatic leader could invigorate AMD through a vision, setting goals and standards• Transformational leaders could help AMD once again separate itself from its competitors

18

In Closing

I think frugality drives innovation, just like other constraints do. One of the only ways to get out of a tight box is to invent your way out. – Jeff Bezos

19

References

Academy of Achievement. (2013, November 5). Jeffrey P. Bezos. Retrieved from

http://www.achievement.org/autodoc/page/bez0bio-1

Advanced Micro Devices [AMD]. (2013). Company Information History. Retrieved from

http://www.amd.com/us/aboutamd/corporate-information/Pages/corporate-info.aspx

Anders, G. (2012, April 4). Jeff Bezos’ top 10 leadership lessons. Forbes. Retrieved from

http://www.forbes.com/sites/georgeanders/2012/04/04/bezos-tips/

Bass, B. M., & Steidlmeiser, P. (1999). Ethics, character, and authentic transformational leadership behavior.

Leadership Quarterly, 10 (2), 181-217.

Beer, M., & Nohria, N. (2000). Cracking the code of change. Harvard Business Review, 78 (2), 133-41.

Bell, R. M. (2013). Charismatic leadership case study with Ronald Reagan as exemplar. Emerging Leadership

Journeys, 6 (1), 66-74.

Conger, J. A., & Kanungo, R. N. (1998). Charismatic leadership in organizations. Thousand Oaks, CA: Sage

Publications.

20

References continued

Deutschman, A. (2004). Inside the mind of Jeff Bezos. Fast Company, 85, 52-55.

Dunn, K. (2013, October 10). Case study: The management style of Amazon’s Jeff Bezos. The HR Capitalist.

Retrieved from http://www.hrcapitalist.com/2013/10/case-study-the-management-style-of-amazons-

jeff-bezos.html

Eklin, T. M. (2009). Charismatic leadership: A case study of Captain Bobby Hughes. Antioch University, OH.

Farivar, C., & Cunningham, A. (2013, April 21). The rise and fall of AMD: How an underdog stuck to Intel. ARS

Technica. Retrieved from http://arstechnica.com/business/2013/04/the-rise-and-fall-of-amd-how-an-

underdog-stuck-it-to-intel/

Filloux, F. (2013, September 15). Memo #2 to Jeff Bezos: Let’s talk about news products and design. Monday

Note. Retrieved from http://www.mondaynote.com/2013/09/15/memo-2-to-jeff-bezos-lets-talk-

about-news-products-and-design/

Forbes. (2013). World’s most powerful people: Jeff Bezos. Retrieved from http://www.forbes.com/profile/jeff-bezos/

21

References continued

Graen, G. B., & Uhl-Bien, M. (1995). Relationship-based approach to leadership: Development of leader-member

exchange (LMX) theory of leadership over 25 years. Leadership Quarterly, 6 (2), 219-247.

Hersey, P., & Blanchard, K.H. (1996). Management of organizational behavior: Utilizing human resources.

Englewood Cliffs, NJ: Prentice Hall.

Lunenburg, F. C. (2010). Leader-Member Exchange theory: Another perspective on the leadership process.

International Journal of Management, Business, and Administration, 13 (1), 13-18.

Maidment, P. (2013, August 6). The ad expertise Bezos brings to the Washington Post in one chart. Blouin News.

Retrieved from http://blogs.blouinnews.com/blouinbeatbusiness/2013/08/06/the-ad-expertise-bezos-

brings-to-the-washington-post-in-one-chart/

Martin, A. J. (2013, September 4). Why Jeff Bezos and the Washington Post is a match made in heaven. Silicon

Valley Business Journal. Retrieved from http://www.bizjournals.com/sanjose/news/2013/09/04/jeff-

bezos-perfect-for-washington-post.html

22

References continued

Morgeson, F. P., DeRue, D. S., & Karam, E. P. (2010). Leadership in teams: A functional approach to understanding

leadership structures and processes. Journal of Management, 36 (1), 5-39.

Northouse, P.G. (2013). Leadership: Theory and practice (6th ed.). Thousand Oaks, CA: Sage Publications

Santa Clara Valley Historical Association. (2008). AMD Corporation. Retrieved from

http://www.siliconvalleyhistorical.org/#!amd-company-history/csut

Stone, B. (2013, October 10). The secrets of Bezos: How Amazon became the everything store. Bloomberg

Businessweek. Retrieved from http://mobile.businessweek.com/articles/2013-10-10/jeff-bezos-and-

the-age-of-amazon-excerpt-from-the-everything-store-by-brad- stone?

utm_source=Triggermail&utm_medium=email&utm_term=10%20Things%20In%20Tech%20 You

%20Need%20To%20Know&utm_campaign=Post%20Blast%20%28sai%29%3A%2010%20Thi ngs

%20You%20Need%20To%20Know%20This%20Morning%20In%20Tech

23

References continued

Streitfeld, D., & Haughney, C. (2013, August 17). Expecting the unexpected from Jeff Bezos. The New York Times,

BU1-BU3.

Williams, S. D. (2003). Character and authentic transformational leadership. LeaderLetter, 3 (8), 1-4.