Leadership and Business Environment

This report explores the impact of leadership and the business environment on the performance of companies. It includes a SWOT and PESTLE analysis of Amazon, examines how PESTEL analysis influences opportunities and threats, compares different leadership styles, and provides recommendations for suitable leadership styles. It also discusses ethics and social responsibilities in business.

Leadership and business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
SWOT AND PESTLE analysis of Amazon................................................................................1
Examine how PESTEL analysis has influenced the opportunity and threats of the business.....4
Compare and contrast the different leadership style...................................................................5
Recommendation for suitable leadership style...........................................................................6
Ethics and social responsibilities................................................................................................6
Reflection....................................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment refers to the sum collection of the all factors that influence the
performance of the company. These are not under the control of the organisation but can effect
the performance,profitability and even survival of the company at the market place. Every
business operates in the distinctive environment according to its nature, as it does not exit in the
isolation. With this such environment influence the business and also get effected by its
activities. Business are able to handle or respond to it effectively with the of effective leadership
in the company which has the ability to do the right things and also influence other to work
through the right direction. As leadership refers to the art of motivating the people or employees
within the organisation to work towards the desired goals along with handling the problems with
the effective solution which provides the higher productivity and sustainability to the
organisation (Becker, 2018). This report is based on the amazon which is an American
multinational technology company that deals in the e-commerce, cloud computing, digital
streaming and artificial intelligence. This is considered in the big five companies in information
technology industry in US. This report is consist of the SWOT and PESTLE analysis for
amazon, factors that influenced the opportunities and threats of the company, analysis on the
different leadership style and current style in the management. Moreover it includes the social
and ethics responsibilities in the process of business.
MAIN BODY
SWOT AND PESTLE analysis of Amazon
SWOT analysis refers to the strategic planning technique or tool which is used the company to
the analyse its strength, weakness, opportunity and threat.
STRENGTH:
Strong brand: Amazon has the strongest brand in the online retailing market. This strength is
responsible for the fast growth and success. This considered brand recognition and confidence in
the consumer to spend on the commodity available by the amazon.
Moderate and expanding business diversification: Amazon works on the diversified range
such as consumer electronics, online retail services, brink and mortar(non online), private label
goods and information technology services this diversifies operation provides the competitive
advantage to the Amazon.
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Rapid technological innovation: capability of rapid technology provides the advantage to
respond to trends effectively with the help of the advance technological process (Pruzan, and. et.
al., 2017).
WEAKNESS:
Imitable business model: Amazon has the business model is easy to imitate and other
companies can also established e-commerce that imposes the greater competition against the
company's e-commerce giant.
limited penetration in developing markets: Amazon has the limited penetration in the
developing market that prevents the business to get the benefits from the high econ0mic geoth
rates and developing markets.
limited brick and mortar presence: this is the barrier for the amazon to expand the non-online
market that influence the company image and in financial terms. As this has required the capital
to set up the non-online business.
Tax avoidance issue: Amazon has developed the negative publicity on account of tax avoidance
in countries like UK and US. Along with this, it most of the revenue is generated from these
well established markets.
OPPORTUNITIES:
Global expansion: amazon has the opportunity to expand its business operation globally
specially in Asia and developing economies that will help the company as these are market with
the low competition in e-commerce industry.
Acquisition: amazon can acquire the e-commerce companies it will help in to decrease the
competition level and can also able to use the specialized capacity of the other countries.
opening physical stores in new market: amazon has he opportunity to open the physical store
even outside the US. With his company is able to engage the customers with their brand that
results in increase in sales and loyal customer base (Rosenbach, 2018).
THREAT:
low entry barriers: this industry has the low entry barriers that effect the company performance
as in the means of tough competition. This will involves price wars, shrinking margin and losses
that will impact on the sustainability of the business.
government regulations: there no clarity on the issues related to FDI in multi brand retail, this
is the biggest threat in the success of e-commerce business in many developing countries.
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Competition: there many competitors in the market that are providing the tough competition and
taking away the market share. Such as Wallmart, Alibabaa and ebay.
PESTLE analysis:
PESTLE analysis is refers to the framework which is used to analysis the macro or external
environment of the company in which company operates and that has the direct impact on the
performance of the company.
Political factor: this is refers to the rules and regulation made by the government. It includes
political stability, taxations, foreign trade policy, labour law, environmental law and trade
restriction. UK has the good political stability that will be the advantage for the Amazon to
operate without interruption in the smooth running operation along with this government
provides the support to the e-commerce that could be a advantage and at same time threat as this
will increase the competition in the market (Swanson and Frederick, 2016).
Economic factor: this is refers to the goods, services, money and consumer confidence to spend
on the particular commodity. UK has economic stability and developed markets that provides
advantage to the company as its minimize the risk in retailing and expansion of the business, in
addition to this, borrowing and lending rates are dynamic that could be the threat or the
company.
Social factor: this factor is consisting of the family, friends, colleagues and social circle that
influence the individual’s perception, attitude and belief to buy the particular product.
Consumers in UK are very often to buy products online, as habits of online purchasing is
increasing that will be a advantage for the company and along with this, increasing in wealth
disparity witll be the threat for the Amazon.
Technological factor: it is describe as the all externally generated changes in the technology that
are used by the company in there process. UK is always stand first in the technology advantage
that will be the great advantage for Amazon to use them in order to attract the consumers and to
increase the productivity. At the same time this could be disadvantage as because this technology
becomes obsolete and new technology requires high cost in a certain period of time.
Legal factor: this is refers to the rules and laws made the government, which includes health and
safety, consumer right laws, product labelling and product safety. That has to be followed by the
every organisation (Arain, and. et. al., 2017). With the use of this rules Amazon will be able
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build the positive image in front of the consumers along with this it could also hamper the
productivity of the business as this is quite difficult to follow every rule and laws.
Environmental factor: this includes food, water, light, sound, pollutant and natural calamites
that influence the living beings. UK provides the compensation and subsidies to the companies
who are using eco-friendly process. As this could be the advantage for the company, with this
amazon can implement the new factor in the process of using recycled and non plastic materials.
Examine how PESTEL analysis has influenced the opportunity and threats of the business
From the above analysis of task one it has been seen that pestle analysis is consist of the various
factors that has provides the opportunities and threats (Burns, and Mooney, 2018). In which
economic and political factors both are good and adequate in the UK as political stability is there
with the adequate economy in which consumers has the high confidence to spend the money on
the particular commodity but there is one biggest threat as well which can Amazon face due to
the brexit impact that has influenced the trade of the companies negatively whether it is online or
offline trade. which has impacted the multinational companies who use to do the trades outside
the country’s boundary, this has increased the trade rates from which prices of the products
become high that results in to the low demand for the products and service. Moreover social and
technological still stands as the opportunity for the Amazon as UK has always stands forward in
terms of technology advancement and Amazon is 90% works on the e-commerce, cloud
computing, digital streaming and artificial intelligence that is totally based on the technology and
the advancement in it will provides the advantage and opportunity to the Amazon to use it in a
way that will provide it the success and the profitable outcomes. Along with this social factor is
also one of the aspect that has generated the opportunity for the company has UK is consist of
the culture where habit of online buying is increasing and customers are more preferred go for
the online shopping that has allow the Amazon to increase its sales to gain the highest
profit(Kane,and. et. al., 2019).
In the situation of covide-19 pandemic, almost every business get effected drastically, in
which there sales and revenue decreases and suffer losses. In this crises Amazon uses their
strength of being online multinational retailer and high brand recognition as opportunity and
becomes trillion dollar company. As because people are preferred to shop online rather than
going outside in the market as because of the government guidelines and worldwide lockdown.
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Compare and contrast the different leadership style
Leadership refers to the both research area and practical skills that encompasses the ability of the
individual or group to lead or influence others towards the right direction. Leaders help
themselves as well others to do the right things in order to effectively accomplish the objective of
the organisation. Therefore, mangers and leaders are consist of some traits and skills that are
important for any organisation in order to gain the effective outcome.
Autocratic leadership style Democratic leadership style
 Autocratic leadership style is also refers
to the authoritarian leadership which is
associated with the individual control
over the all decisions and had the little
input from the team members.
Autocratic leaders rarely accept the
advice from the followers and typically
made the choices based on their own
idea and judgments.
 Democratic leadership style is also
known as the participative leadership or
shared leadership, this is one who invite
other team members and make them as
a part of the decision making process.
In this every is encouraged to
participate in the decision making that
leads to the employee feeling of
involvement, recognition and
satisfaction
 In this authority is centralized, as leader
did not includes anyone in the process
of decision power and hold the power
and authority in their own hands with
the high level of control(Higgs and
Dulewicz, 2016).
 Here authority is decentralised, as
leaders involves the others in the
decision making process and also
delegate the authority and power to the
employees so that work could be done
effectively along with this there is low
level of control.
Amazon is the largest customer oriented online retailing company which is founded by jeff
Bezos and has led the company for the years successfully, yet whose current leadership style
transformational leadership style. In which leaders tends to encourage, inspire and motivate
employees in order innovate and creates changes that will help employees in to grow and shape
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the success for the company. With the help of this Amazon is able to transform the team member
into individual who can go above the self actualization and their own interest in order to map out
the success of the organisation with the effective performance affective decision making process.
Along with this transformational leadership style in Amazon makes the employees feel empower
and connect towards their company.
Recommendation for suitable leadership style
Leadership is refers to the skills and ability to do the rights and influence others other to work the
same as to achieve the organisational goals in a effective manner. Amazon is the multination
online retailing company which is consist of the thousands of employees that have to be
managing effectively so that objective and goals can accomplish in the effective a desired
manner. For this company is already is using the transformational leadership style which
adequate for the company but there is also a chance for the difficulty and risk of abuse as this is
more of personality traits. In addition this, affiliative leadership style will be suitable for the
organisation, this is often describe as the ‘people come first’ in this leaders get close and
personal with the employees, as they pay attention to support and provide emotional support to
the workers. This leadership style is about encouraging harmony and enhancing formative
collaborative relationship among the team members (Cote, 2017).
 With the help of this leaders in Amazon are able resolve the conflicts quickly so that
positive relationship can be built and encourages the mutual understanding with this
performance get enhance.
 This will provide support to the amazon leaders to reduce the stress level present so that
quality outcome can be produces.
 Feedback is refers to the critical component at the work place as to get the effective and
quality outcomes, affiliative leadership will help the amazon leaders in to get the
adequate and true feedbacks about the area that has to be improved and support in to get
the desired organisational objectives.
Ethics and social responsibilities
Social and ethical responsibilities refers to in which individual becomes accountable in order to
fulfilling their civic duty. Those actions must be benefited for the whole society. With the
support of this there is balance between economic growth and the welfare of the society.
Organisational responsibility and accountability is spreads into the areas of ethics, legality and
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regulations that have an impact on the economy and environment(Shafique and Beh, 2017).
Ethical responsibilities can be implemented through codes of conduct, civil rights, and social and
acceptable standards in many areas. Organisation strives to go beyond the legal requirements as
they take care to ensures workers are safe, treated with dignity and respect, offer reasonable
working hours, contribute in the welfare of the society is to be considered in the ethical
responsibility. Some of the ethical and social responsibilities are discussed below in context to
Amazon:
Philanthropic responsibility: philanthropic refers to the means of serve humanity. This factor
pays attention to the well being of needy people who are badly seeks for the support to sustain on
the planet companies fulfil this responsibility with the help of donation of time, money and
resources to the charity and organisations at the national and international level. Amazon has
perform this by donating in variety of worthy causes that includes human rights, human disaster
relief, clean water and education programmes (Bratton, 2020).
Environmental responsibility: in today’s scenario, main focused is on the main two areas of the
environment that is limiting pollution and reducing green house gases. Companies are bound and
forced to fulfil their economic responsibility because now awareness of environmental issues
highly growing among the consumer as they want businesses to take the essential steps to save
the environment and to preserve all the lives in it. Amazon plays this responsibility with the
activities such as reduction in waste and increase the use of recycled materials, takes steps
towards the reduction of carbon emission as by ordering fully electrical delivery vehicles and
also water consumption with the help of Amazon centres that has the ability to collect and
recycle of water.
Ethical responsibility: this responsibility is about the welfare of the employees through ensuring
the fair labour practices that is associated with the fair wages, flexible working hours and health
and safety of the employees at the workplace. It also includes ethical labour practices for the
suppliers in which company will ensures the use of products that has been meeting the fair trade
standards. Amazon company with this responsibility ensures that there will be no gender and
religious discrimination among the workforce and each employees will be get the equal pay for
the equal work and provides better living wage compensations(Anning-Dorson, and. et. al.,
2017).
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Above analysis described some responsibilities that has been perform by the Amazon that
help in to enhance brand image in front of consumers so that wealth and goodwill could be
increased along with the productivity.
Reflection
From this analysis i have learned about the how to analyse the business environment so that a
opportunity can be grabbed and can respond and reduces the threats with the help of strength.
Pestle and swot analysis are two methods that are used as the framework to analyse the internal
and external environment that has come up with the various opportunity and threats. Along with
this I have learned about the various types of leadership style that has been used in the
organisation and that is taken into consideration as per the structure of the organisational
structure. That helps the team to get motivated and encourages towards the desired objectives of
the organisation. Moreover I gained the knowledge of the social responsibilities of the company
for the welfare of the society that will provide support to the organisations to maintain their
image and will increase the wealth and goodwill.
CONCLUSION
From the above analysis it has been concluded that business environment is refers to the sum
collection of the all factors that has the direct impact on the performance of the company and to
handle them effectively leaders plays the vital role as they have the ability to solve the problems
effectively and provides the clear direction to the team members as to achieve the goals. There a
have been various types of leadership style that has been used to by leaders to handle the team
effectively as according the organisational structure. Along with this organisations perform the
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social and ethical responsibility to maintain the image and to increase the productivity and
goodwill of the organisation.
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REFERENCES
Books and Journals
Anning-Dorson, T., Odoom, R.K., Acheampong, G. and Tweneboah-Koduah, E., 2017.
Innovation and organizational development: the role of organizational
leadership. African Journal of Economic and Management Studies.
Arain, G.A., Sheikh, A., Hameed, I. and Asadullah, M.A., 2017. Do as I do: The effect of
teachers’ ethical leadership on business students’ academic citizenship
behaviors. Ethics & Behavior, 27(8), pp.665-680.
Becker, G.K., 2018. Moral leadership in business. Contemporary Issues in Leadership, pp.237-
257.
Bratton, J. ed., 2020. Organizational leadership. SAGE Publications Limited.
Burns, D.J. and Mooney, D., 2018. Transcollegial leadership: a new paradigm for
leadership. International Journal of Educational Management.
Cote, R., 2017. A comparison of leadership theories in an organizational
environment. International Journal of Business Administration, 8(5), pp.28-35.
Higgs, M. and Dulewicz, V., 2016. Developments in leadership thinking. In Leading with
emotional intelligence (pp. 75-103). Palgrave Macmillan, Cham.
Kane, G.C., Phillips, A.N., Copulsky, J. and Andrus, G., 2019. How digital leadership is (n't)
different. MIT Sloan Management Review, 60(3), pp.34-39.
Pruzan, P., Pruzan-Mikkelsen, K., Miller, D. and Miller, W., 2017. Leading with wisdom:
Spiritual-based leadership in business. Routledge.
Rosenbach, W.E., 2018. Contemporary issues in leadership. Routledge.
Shafique, I. and Beh, L.S., 2017. Shifting organizational leadership perspectives: An overview of
leadership theories. Journal of Economic & Management Perspectives, 11(4), pp.134-
143.
Swanson, D.L. and Frederick, W.C., 2016. Denial and leadership in business ethics
education. Business ethics: New challenges for business schools and corporate leaders,
pp.222-240.
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