Leadership and Business Environment

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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