Business Practices: External Environment Analysis of Amazon

This article discusses the importance of business practices and external environment analysis for Amazon. It covers the PEST analysis of Amazon, its impact on the external business environment, and the different internal factors that affect the company. The article also suggests ways in which Amazon can enhance its business practices and contribute to sustainable development.

Business practices
Introduction
Business practices are techniques and functions performed by a business
in order to achieve different objectives at the marketplace. Management
of a company should regularly train the employees for development of
different practices. In this project a brief analysis of external and
internal environment is performed in a precise manner. business
practices are important to be performed in a precise manner by a
business organisation to achieve different targets. This project
concludes that a company must analyse external and internal
environment for business development. In this report example of
Amazon Company is taken into consideration for better understanding
business practices. Amazon is a multinational e-commerce company
which was founded in the year 1994 and is headquartered in United
States.
Different ways in which Amazon can influence external
business environment
The company can perform corporate social responsibility which can enhance
condition of social environment that is present outside the business.
Company can contribute effectively to gross domestic product and national
income of the country in order to influence economy of nation. Amazon can
also enhance living standard of the society by performing different operations
in a precise manner. Amazon can develop effective strategy with the help of
professional and skilled management in order to perform sustainable business
which is good for external environment. The company can avoid use of plastic
for the welfare of environment of the country and should use green policy for
sustainable business.
Different internal factors and their impact on Amazon
The culture is main part of internal environment of a business which
directly impacts on different operations. It is essential for an
organisation to focus on culture development for increasing job
satisfaction of different employees. Amazon should maintain internal
environment of the business to achieve different goals and objectives in
a set time frame. The company should overcome different weaknesses
in internal environment to attract large number of customers from the
marketplace. Amazon should focus on different business expansion
opportunities available at the marketplace in order to achieve efficiency
in operations. It is also important for Amazon to perform SWOT
analysis with the help of professional management in order to analyse
internal business environment.
External environment analysis
It is important for Amazon to perform PEST analysis in order to
survive at the marketplace with maximum efficiency. The PEST
analysis of Amazon is mentioned below:
Political factors- Political factors are related to rules and
regulations formulated by government for development of
business entities in the economy. As Amazon is a multinational
e-commerce company it should comply with government
policies to conduct ethical business at the marketplace.
Economic factors- Monetary policy and gross domestic product
are two important elements of economic factors which impact
business functioning. The inflation and recession conditions in
different countries also impact on performance of Amazon.
Social factors- These factors are related to society which mainly
influence culture of an organisation. Amazon should take help of
professional strategic management in order to deal with different
social factors.
Technological factors- By the increase in the level of
competitive environment technology plays essential role for the
progress of Amazon. The digital technology Coniston of
websites, social media and computer system which are fast and
quick in performing different operations of the company. Now
days every e-commerce industry is moving towards application
of digital technology because of several benefits that are
effective in business development. The recorded data in
computer systems will help Amazon to formulate strategy and
plan for the development of the company.
References:
Ashton, W., Russell, S. and Futch, E., 2017. The adoption of green business
practices among small US Midwestern manufacturing enterprises. Journal of
environmental planning and management. 60(12), pp.2133-2149.
LeBlanc, M., 2017. ‘I can’t get no satisfaction!’Should we blame translation
technologies or shifting business practices? In Human issues in translation
technology (pp. 63-80). Routledge.