Go Lean Commentary
Amazon is not just a giant on the internet, in the areas of electronic commerce. No they are emerging as a giant in the real world as well. The company has over 380,000 employees worldwide and 40,000+ at their Seattle, Washington USA headquarters. That is a BIG corporate presence. In fact, economic analysts had tabulated Amazon’s Gross Domestic Product (GDP) contribution to Seattle at $US 38 Billion. Wow!
Now, the company has decided to open a new supplemental headquarters facility – with the promise of another 50,000 job opportunities. Where will they place this second HQ facility – HQ2? They are open to offers.
Let the bidding begin …
See the Press Release in the Appendix below and the related VIDEO here:
VIDEO – American cities vie to be site of Amazon’s second headquarters – https://www.today.com/video/american-cities-vie-to-be-site-of-amazon-s-second-headquarters-1055053379904
Many U.S cities are competing fiercely to show Amazon why they should become home to the online giant’s second headquarters. NBC business correspondent Jo Ling Kent reports for TODAY from one of them: Los Angeles.
As related in this VIDEO, Amazon HQ2 would be a “serious jolt to any local economy”. Consider these prospective cities that are lining up:
|Atlanta||El Paso, TX||Nashville, TN|
|Baltimore||Gary, Indiana||Pittsburgh, PA|
|Birmingham, AL||Houston, TX||Phoenix, AZ|
|Boston, MA||Las Vegas, NV||Portland, OR|
|Chicago||Los Angeles||St Louis, MO|
|Cincinnati, OH||Miami, FL||Toronto, Canada|
|Denver, CO||Minneapolis, MN||Tucson, AZ|
The Caribbean is not represented on that list; notwithstanding the frontier city of Miami. (Miami thrives due to the presence of the Caribbean Diaspora).
But that’s OK…this time. We have our own plans.
As related in previous blog-commentaries by the movement behind the book Go Lean … Caribbean, Amazon is a model for the Caribbean’s own venture into electronic commerce. We have the design for www.myCaribbean.gov web-portal and the Caribbean Postal Union to perform a lot of the same functionality that Amazon does in the USA.
The book Go Lean…Caribbean serves as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU) and the Caribbean Postal Union (CPU). These entities are designed to address the “Agents of Change“ in modern society, but for a Caribbean scope only. The “Agents of Change” at play in the foregoing news source are as follows:
As related in the foregoing VIDEO, the business dynamics of Amazon will have a huge impact on some local community. That American city that lands HQ2 will have a lot to celebrate, as their societal engines will be elevated. An enterprise that can create that many high-paying direct jobs – 50,000 – will have a stimulating effect on the rest of the economy. This too is a feature of Amazon that “we” want to model in the Caribbean. The Go Lean/CU roadmap is designed to elevate the Caribbean’s societal engines starting first with economics (jobs, industrial development and entrepreneurial opportunities). In fact, the following 3 statements are identified as the prime directives of the CU:
- Optimization of the economic engines in order to grow the regional economy to $800 Billion & create 2.2 million new jobs.
- Establishment of a security apparatus to protect the resultant economic engines.
- Improve Caribbean governance to support these other engines. Governance will not grow the economy, commerce will.
One addition feature of Amazon that bears disclosing is their effect on stimulating other businesses. According to these words from the Press Release below, the home community of Amazon’s current headquarters – Seattle, Washington – has incubated many other Fortune 500 companies in the wake of Amazon’s rise and dominance:
Increase in Fortune 500 companies with engineering/R&D centers in Seattle: From 7 in 2010 to 31 in 2017
Incubation is a primary tactic addressed in the Go Lean book. It is explained (Page 28) as follows:
The Bottom Line on Incubators
Business incubators are programs designed to support the successful development of entrepreneurial companies through an array of business support resources and services, developed and orchestrated by incubator management. Incubators vary in the way they deliver their services, in their organizational structure, and in the types of clients they serve. Successful completion of a business incubation program increases the likelihood that a startup company will stay in business for the long term: studies found 87% of incubator graduates stayed in business, in contrast to 44% of all firms. [Incubators are common in the US, Canada and Europe]. In 2005 alone, North American incubation programs assisted more than 27,000 firms that provided employment for more than 100,000 workers and generated annual revenues of $17 billion.
Incubators differ from research and technology parks in their dedication to startup and early-stage companies. Incubators also differ from the U.S. Small Business Administration’s Small Business Development Centers in that they serve only selected clients. Most common incubators provide these services:
1. Help with business basics
2. Networking activities
3. Marketing assistance
4. Help with accounting/financial management
5. Access to bank loans, loan funds and guarantee programs
6. Help with presentation skills
7. Links to higher education resources
8. Links to strategic partners
9. Access to angel investors or venture capital
10. Advisory boards and mentors
11. Technology commercialization assistance
12. Help with regulatory compliance
13. Intellectual property management.
Amazon’s modus operandi is not to be an incubator, though they have invested in many other tech-related companies. No, the Seattle incubation resulted from more community synergy than direct planning. This is what is defined in the Go Lean book as “community ethos”:
1. The fundamental character or spirit of a culture; the underlying sentiment that informs the beliefs, customs, or practices of a group or society; dominant assumptions of a people or period.
2. The character or disposition of a community, group, person, etc.
We need this community ethos in the Caribbean!
Overall, in its 370-pages, the Go Lean book stresses the community ethos, strategies, tactics, implementations and advocacies to reform and transform the economic engines of Caribbean society. The required technocratic stewardship for the region’s economic engines was presented early in the book with these opening pronouncements in the Declaration of Interdependence (Page 13 and 14):
xxiv. Whereas a free market economy can be induced and spurred for continuous progress, the Federation must install the controls to better manage aspects of the economy: jobs, inflation, savings rate, investments and other economic principles. Thereby attracting direct foreign investment because of the stability and vibrancy of our economy.
xxvii. Whereas the region has endured a spectator status during the Industrial Revolution, we cannot stand on the sidelines of this new economy, the Information Revolution. Rather, the Federation must embrace all the tenets of Internet Communications Technology (ICT) to serve as an equalizing element in competition with the rest of the world. The Federation must bridge the digital divide and promote the community ethos that research/development is valuable and must be promoted and incentivized for adoption.
The points of effective, technocratic stewardship were further elaborated upon in previous blog-commentaries. Consider this sample:
|http://www.goleancaribbean.com/blog/?p=12291||Amazon – The Retailers’ Enemy|
|http://www.goleancaribbean.com/blog/?p=8823||Lessons from China – WeChat: Model for Caribbean Social Media|
|http://www.goleancaribbean.com/blog/?p=7991||Transformations: Caribbean Postal Union – Delivering the Future|
|http://www.goleancaribbean.com/blog/?p=3187||Robots help Amazon tackle Cyber Monday|
|http://www.goleancaribbean.com/blog/?p=2488||Model of an E-Commerce Fulfillment Company: Alibaba|
|http://www.goleancaribbean.com/blog/?p=1416||Model of an E-Commerce Fulfillment Company: Amazon|
|http://www.goleancaribbean.com/blog/?p=528||Facebook’s advances for e-Commerce payments|
Congratulation to the selected city – whoever is selected – for Amazon’s HQ2.
For the Caribbean, let’s pay attention to this bidding process. Let’s lean-in and learn how the economic incentives were structured by the winning city to attract this “whale” of a corporate investor – Amazon commits to spending $5 Billion to enhance local infrastructure in the selected city. This chosen city will make great progress in their attempts to elevate their city … to live, work and play.
The lessons learned can help the Caribbean in our solicitations of Direct Foreign Investors. We can learn so much from this process, since it is also our desire to make our homelands better places to live, work and play. 🙂
Sign the petition to lean-in for the roadmap for the Caribbean Union Trade Federation.
Appendix Title: Amazon Opens Search for Amazon HQ2 A Second Headquarters City in North America
New headquarters will be a full equal to Amazon’s headquarters in Seattle, and is expected to grow to 50,000 employees as part of the company’s ongoing job creation
Amazon plans to invest over $5 billion in construction and operation of Amazon HQ2
In addition to Amazon’s direct hiring and investment, construction and operation of Amazon HQ2 is expected to create tens of thousands of jobs in construction and related industries, and generate tens of billions of dollars in additional investment in the city where Amazon HQ2 is located
SEATTLE — (BUSINESS WIRE)
(NASDAQ: AMZN) — Amazon today announced plans to open Amazon HQ2, a second company headquarters in North America. Amazon expects to invest over $5 billion in construction and grow this second headquarters to include as many as 50,000 high-paying jobs. In addition to Amazon’s direct hiring and investment, construction and ongoing operation of Amazon HQ2 is expected to create tens of thousands of additional jobs and tens of billions of dollars in additional investment in the surrounding community. Amazon is opening the Amazon HQ2 Request for Proposal (“RFP”) now, and local and state government leaders interested in learning more about how they can bring Amazon to their community can visit www.amazon.com/amazonHQ2.
Amazon estimates its investments in Seattle from 2010 through 2016 resulted in an additional $38 billion to the city’s economy – every dollar invested by Amazon in Seattle generated an additional 1.4 dollars for the city’s economy overall.
Details of Amazon’s Seattle Headquarters:
Direct1 Number of buildings 33 Square feet 8.1 million Local retail within Amazon headquarters 24 restaurants/cafes + 8 other services Amazon employees 40,000+ Capital investment (buildings & infrastructure) $3.7 billion Operational expenditures (utilities & maintenance) $1.4 billion Compensation to employees $25.7 billion Number of annual hotel nights by visiting Amazonians and guests 233,000 (2016) Amount paid into the city’s public transportation system as employees’ transportation benefit $43 million Indirect2 Additional jobs created in the city as a result of Amazon’s direct investments 53,000 Additional investments in the local economy as a result of Amazon’s direct investments $38 billion Increase in personal income by non-Amazon employees as a result of Amazon’s direct investments $17 billion Other Increase in Fortune 500 companies with engineering/R&D centers in Seattle From 7 in 2010 to 31 in 2017
1 From 2010 (when Amazon moved its headquarters to downtown Seattle) to June 2017.
2 From 2010-2016. Calculated using Input-Output methodology and multipliers developed by the U.S. Bureau of Economic Analysis.
With more than 380,000 employees worldwide, Amazon ranks #1 on Fast Company’s Most Innovative Companies, #2 on Fortune’s World’s Most Admired Companies, #1 on The Harris Poll’s Corporate Reputation survey, and #2 on LinkedIn’s U.S. most desirable companies list. Amazon was also recently included in the Military Times’ Best for Vets list of companies committed to providing opportunities for military veterans.
“We expect HQ2 to be a full equal to our Seattle headquarters,” said Jeff Bezos, Amazon founder and CEO. “Amazon HQ2 will bring billions of dollars in up-front and ongoing investments, and tens of thousands of high-paying jobs. We’re excited to find a second home.”
In choosing the location for HQ2, Amazon has a preference for:
- Metropolitan areas with more than one million people
- A stable and business-friendly environment
- Urban or suburban locations with the potential to attract and retain strong technical talent
- Communities that think big and creatively when considering locations and real estate options
HQ2 could be, but does not have to be:
- An urban or downtown campus
- A similar layout to Amazon’s Seattle campus
- A development-prepped site. We want to encourage states and communities to think creatively for viable real estate options, while not negatively affecting our preferred timeline.
Amazon HQ2 will be a complete headquarters for Amazon – not a satellite office. Amazon expects to hire new teams and executives in HQ2, and will also let existing senior leaders across the company decide whether to locate their teams in HQ1, HQ2 or both. The company expects that employees who are currently working in HQ1 can choose to continue working there, or they could have an opportunity to move if they would prefer to be located in HQ2.
To learn more about Amazon’s current Seattle headquarters, plans for Amazon HQ2, and to submit a proposal, visit www.amazon.com/amazonHQ2.
Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire tablets, Fire TV, Amazon Echo, and Alexa are some of the products and services pioneered by Amazon. For more information, visit www.amazon.com/about and follow @AmazonNews.
This press release contains forward-looking statements that are inherently difficult to predict. Actual results could differ materially for a variety of reasons, including, in addition to the factors discussed above, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products and services sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of legal proceedings and claims, fulfillment, sortation, delivery, and data center optimization, risks of inventory management, seasonality, the degree to which the Company enters into, maintains, and develops commercial agreements, acquisitions and strategic transactions, payments risks, and risks of fulfillment throughput and productivity. Other risks and uncertainties include, among others, risks related to new products, services, and technologies, system interruptions, government regulation and taxation, and fraud. In addition, the current global economic climate amplifies many of these risks. More information about factors that potentially could affect Amazon.com’s financial results is included in Amazon.com’s filings with the Securities and Exchange Commission (“SEC”), including its most recent Annual Report on Form 10-K and subsequent filings.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170907005717/en/
Copyright Business Wire 2017
Source: Posted September 7, 2017; retrieved September 26, 2017 from: http://www.nbc-2.com/story/36308962/amazon-opens-search-for-amazon-hq2-a-second-headquarters-city-in-north-america