E-commerce giant Amazon (AMZN) is working to simplify its grocery operations by reducing the internal red tape that’s slowing things down. During a recent staff meeting, an employee asked how leadership plans to speed up decision-making, saying that “multiple levels of approval” were causing delays, according to a recording of the meeting obtained by Business Insider. Jason Buechel, Amazon’s VP of Worldwide Grocery and CEO of Whole Foods, responded by calling parts of the company’s internal process “ridiculous.” He admitted that time is being wasted on things like approval procedures and spending rules, and stated that this is holding back important initiatives.
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To address these issues, Amazon recently reorganized its grocery division under a plan called the “One Grocery” initiative. This effort brings teams from Whole Foods, Amazon Fresh, and Amazon Go under one structure to work more efficiently. As part of the changes, Whole Foods’ corporate staff was moved onto Amazon’s pay and performance systems to create a more consistent employee experience. Indeed, Buechel said that cutting down on overlapping work between teams is a top priority this year.
These changes are part of Amazon’s bigger goal of removing slow and unnecessary processes across the company. CEO Andy Jassy has encouraged staff to point out any rules that create delays, and Amazon has already trimmed management layers to move faster. While Buechel said that not all plans are finalized yet, he admitted there’s still “a lot of work ahead” and hinted that resources will shift to support new goals. He’s also staying focused on the competition, saying he regularly visits rival grocery stores to stay inspired and watch for trends.
What Is the Price Target for AMZN Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Amazon stock based on 47 Buys and one Hold assigned in the past three months. Furthermore, the average AMZN stock price target of $243 per share implies 12.3% upside potential from current levels.
