Amazon Leadership and Business Environment Assignment (GC01965)
Table of Contents
1.0 Introduction.
2.0 Analysis of SWOT and PESTEL for Amazon.
SWOT.
PESTLE.
Impact of PESTEL issues on the opportunities and threats of Amazon.
Application of Amazon Strengths for mitigating its threats and weakness and using opportunities
3.0 Leadership styles at Amazon.
Different styles of leadership.
Current leadership and management style at Amazon.
4.0 A suitable leadership style of Amazon.
5.0 CSR practices at Amazon.
Corporate Social Responsibilities of Amazon.
Whether Amazon is practicing its CSR activities as responsibilities, response, and/or obligation.
6.0 Knowledge and experiences that I have achieved through this assignment and how they will help me in future
7.0 Conclusion.
References.
1.0 Introduction
Amazon is an American multinational technology company based in Seattle, Washington, which focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. In 1994, Jeff Bezos was started this business firm (McFadden, 2019). The key products of Amazon include Echo, Fire tablet, Fire TV, IOS and Kindle. The net income of this company in 2019 was US$11.588 billion (Amazon, 2020). This company has 1,125,300 qualified staffs serve worldwide customers. The present Covid-19 crisis has created challenges for every offline business. Now, Amazon has used it as an opportunity to become a Trillion-Dollar Company. Firstly, this paper analysis the SWOT and PESTEL factors of Amazon. Then, this paper identifies the Leadership and management style of Amazon. Then, this paper reveals the Ethics and CSR practices of Amazon. Finally, this paper shows my reflection on my experience from this report.
2.0 Analysis of SWOT and PESTEL for Amazon
SWOT
Amao (2019) stated that SWOT analysis indicates the analysis of the internal factors. This analysis is one of the ways of understanding the business position in the competitive market. Amazon is a worldwide company that has several strengths and opportunities in the market. However, this company has faced several weaknesses and threats in the market (McFadden, 2019). The SWOT analysis of this company is presented below:
Figure: SWOT analysis of Amazon Source: McFadden (2019)
Amazon has several strengths including brand equity, high financial performance, synergies, better customers relations, cost leadership position, high technological support, and better distribution channel (McFadden, 2019). The weaknesses of this company include low margin rate, fallers in new experiments, employee turnover, lack of physical stores and poor sustainable rate (McFadden, 2019). The opportunities of Amazon include developing markets in the Asian market, increasing physical stores, creating hardware partnerships, new products and market expansion (McFadden, 2019). The threats of Amazon include a higher level of competition, a lower brand image in the Asian market, and changes in government regulations.
PESTLE
Acevedo (2018) stated that PESTLE analysis of a business helps to understand the business position in the market on the basis of macroeconomic environment factors. Amazon is a large international business firm by which this business firm has faced several positive and negative issues from the PESTLE issues. The following figure represents the PESTLE analysis of Amazon.
Figure: Pestle analysis Source: Amao (2019)
In the case Political factors analysis of Amazon, the main issues are government regulations and trade & trade laws of the country in which this firm is operating the business. The main economic issues are the stimulus of the country’s economic position that brings an impact on the business system (Amao, 2019). The Social issues are the status of the customers, customer behavior and purchasing attitude of the customers in the market that bring a huge impact on the business growth and sustainability. The technological issues are using the superior production, delivery and customers’ services system that increases the business position of Amazon (Amao, 2019). The environmental issues are related to business sustainability. Amazon needs to protect the environment and practice CSR for increasing the brand image in the market. The legal issues indicate the international laws of business that have to be maintained by Amazon.
Impact of PESTEL issues on the opportunities and threats of Amazon
Amao (2019) noted that Political factors include government regulations and trade & trade laws. The changes in trade regulations and laws affect business opportunities and threats. The positive change in the political factors increases opportunities for business and decreases the threats of the business (Morley, 2018). The change in the economic position brings an impact on business opportunities and threats. The higher inflation rate increases the threats of the business. The Social issues including customers’ behavior and purchasing attitude bring an impact on the business growth and sustainability (Morley, 2018). The negative purchasing attitude of the customers increases the threats of the business and decreases the opportunities. The technological issues including superior production, delivery and customers’ services increase the business opportunities (Morley, 2018). Environmental pollution creates threats to business sustainability (Morley, 2018). The change in international laws creates challenges and threats to the business. In the case of Amazon, the PESTLE issues have generated several threats along with some opportunities in the global market. Therefore, this company needs to consider the main PESTLE issue in advance for diminishing the threats by using the opportunities.
Application of Amazon Strengths for mitigating its threats and weakness and using opportunities
The strengths of the business are the main tool of negating the threats and weaknesses and utilizing the business opportunities. SWOT analysis is one of the ways of addressing the business strengths, threats, weaknesses and opportunities (Amao, 2019). The strategic use of the strengths helps to negate the threats and weaknesses of the business. Amazon has strong brand equity by which this company can mitigate the weakness of lower margin and threats of competition (Amazon, 2020). Additionally, this business has high financial performance, synergies, better customers relations, cost leadership position, high technological support, and a better distribution channel (Amazon, 2020). The effective use of these strengths can mitigate the weaknesses of this company. The business has opened new physical and online stores in the Asian and African markets for new products and market expansion. The threats of Amazon including the level of competition can be mitigated by better pricing and distribution system. Amazon also needs to consider the change in government regulations for overcoming the sudden threats from these factors. The proper way of addressing strengths assists in mitigating the threats and weaknesses and covering the business opportunities.
3.0 Leadership styles at Amazon
Different styles of leadership
The leadership styles can be categorized under autocratic, democratic, laissez-faire, transactional, transformational, visionary, charismatic, servant, and moral and ethical leadership styles (Acevedo, 2018). The features of these leaderships are not the same. Amaeshi (2017) noted that autocratic leaders are the main boss and the followers only follow the guidelines of the leaders without any question. Democratic leaders are the opposite of autocratic leaders because the followers make suggestions to the leaders for bringing good outcomes (Amaeshi, 2017). Laissez-faire leaders offer freedom to the followers and the followers are taking decisions on the basis of circumstance. Transactional leadership is called managerial leadership and the leaders depend on the maintenance of group performance. The visionary leaders make long-term vision and strategies to attain the vision with the help of the followers. Charismatic leaders have some charismatic power and attitudes to influence the subordinates and attain the business targets (Toffel, 2018)………………………….
Full Documents Click Download Button
