Organisational Change Management: A Case Study of Amazon's Acquisition of Whole Foods

This essay critically analyzes the organisational change that Amazon experienced when it acquired Whole Foods in 2017. It highlights the importance of effective leadership, HR management, and strategic planning in managing change and achieving competitive advantage.

Management,
leadership and change

Contents
INTRODUCTION .....................................................................................................................3
ESSAY.......................................................................................................................................4
CONCLUSION .......................................................................................................................15
Lessons learnt...........................................................................................................................16
Appendix..................................................................................................................................17
SWOT analysis.........................................................................................................................17
PESTLE analysis.....................................................................................................................18
REFERENCES.........................................................................................................................20

INTRODUCTION
The leadership and human resource management are considered as two important
functions of the organisation which are effective in managing employees and human resource
management is most important one due to its functions (Armstrong, and Taylor, 2020). The
change management is also an integral component of the organisation that supports a
company to perform key functions according to the need of business. Strategic leadership is a
key concept which helps in designing policies and plans related to leadership and its
functioning. The different business organisations should focus on strategic leadership in order
to facilitate change management and development. The essay will also include focus on
SWOT analysis of the company to focus on strengths and weaknesses of a business entity. In
this essay, various approaches to management and leadership which are effective in order to
deal with different consequences related to employee management. This reprot includes
example of Amazon companu which is an e-commerce company operationg in different parts
of the world . The Amazon was founded in the year 1994 and its headquarters are situated in
United States of America. This essay will include organisational change which Amazon
experienced when it acquired Whole Foods in the year 2017.

ESSAY
Amazon is an online shopping app that helps its customers in reaching various goods
and products and other facilities to be available at their doorstep. Amazon has global reach
with availability of all kinds of goods and products, allowing its customers to have a large
variety of resources and choices. These choices are unlimited and allows its customers to opt
for their choices from all the available options. Amazon lets it’s all users to have anything
and everything from all over the globe as it has global reach and the availability of its
products at their doorstep makes its different and unique from other applications. Amazon is
founded by Jeff Bezos and is performing key operations related to e-commerce in various
countries. The change faced by Amazon is faced when it acquired Whole Foods in the year
2017. This bought major change in the operations and management of company. The
Amazon is getting prepared for facing the change and also managing change according to
current competitive surroundings. Strategic change is termed as key technique in order to deal
with future objectives and goals.
The HRM is termed as key and main body of an organisation, which is helpful in
increasing employee's management in a precise manner. Readiness to change is ability to deal
with situations and issues based on change. The HRM is also concerned with providing
motivation to employees (Role of HRM in a business, 2022). With the support and help of
motivation, HR manager can increase the mental strength in employees as well as can
develop emotional intelligence (Banfield, Kay, and Royles, 2018). The capability of a
company to face the change is strength of a company which is required to facilitate key
operations and development-based perspectives. Readiness for change should be there in the
employees of Amazon to face change with a strategic approach. In the business world, it is
key responsibility of a business to put emphasis on analysing major internal and external
factors for facing the desired change according to market demand. The Leadership is also one
of the important activity of an organisation supports a business to manage key operations
related to change with effectiveness (Beattie, and Wyer, 2019). In an organisation, it is key
role of management to facilitate leadership management using appropriate tools and
techniques. The human resource management also plays a major role in providing training to
employees for gaining competitive advantage. Conflict management is also facilitated by
HRM in an organisation in order to achieve key advantages in management of employee
problems.

The HR management of a company is also effective in making precise culture of the
organisation. With the help of culture management, a company can develop effective internal
environment which is good for employee management. The internal environment of an
organisation is essential to be maintained and developed with the help of major policies and
plans. In leadership, there are various activities and functions which are helpful in controlling
the employees. Change management is the important function of leadership which helps
employees to get more comfortable according to situtaion. All major business organisations
which are competing in the international marketplace like Amazon should take into
consideration key approaches to management and leadership. The management of a business
should include key considerations which are important for welfare of whole organisation.
Situational leadership and participatory leadership are also one of the major approaches
which helps a leader to act according to the situation (Clepper, 2018). All major business
organisations should develop a key approach in performance management to focus on
different aspects of business development. In the overall development of an organisation,
human resource management is also responsible for providing professional training and
development. This is one of the major roles of a company to include hiring of employees on
the basis of market demand and their qualifications. The Human resource management also
play an important role in increasing business strength by managing all the employees of
company.
The change strategy is considered as key approach which helps an organisation to
overcome change (Change strategy of a business, 2022). In the organisational development,
change strategy plays a key role by increasing organisational strength with the help of ethical
approach (Crosweller, and Tschakert, 2020). The planning of a company according to
situation of marketplace is also facilitated with management strategies related to change. In
order to facilitate change management, it is key duty of an organisation to put emphasis on its
strengths and weaknesses. It is major responsibility of a business to analyse all major factors
associated with internal and external environment in order to develop a precise and focused
approach in the business world. After acquiring Whole Foods company, Amazon should
implement change strategy with full control and supervision in order to achieve key results.
Company should also put emphasis on different business associated factors and its
surrounding environment to include positive business practises on key and major basis.
Policies, strategies and processes of an organisation should be changed or reviewed from time
to time for more growth and development of that organisation. These all are changed with the

motive of achieving goals and objectives effectively and efficiently. These changes also lead
the entities to be updated with all the new trends, innovations and inventions that are going
on in any economy. Amazon uses this change for keeping updates with new trendy things and
all other benefits that come with these changes. The strategic management and leadership are
two most important elements which are responsible for growth and development of company
(Doyle, and Brady, 2018).
The change in strategies and process are like putting people first. It is important to put
people first for overall growth and development, being people and customers as the most
important part for Amazon, it is necessary to fulfil all needs and wants of customers for
overall growth and development of it. With change in the management model, Amazon also
gets benefits in different ways as this change in model can reduce various costs and can
increase the overall efficiency of its staff members and employees. Amazon can also
empower its employees by making their communication as the strongest part or working
essential part of it. With more implementation and functioning of change related leadership
styles and more involvement of employees within its functions can also lead to more effective
working and operating of its functioning in between its staff members and employees The
preparetery leadership is considered as major approach which helps a leader to get ready for
the new change situation. The selection of transformational leadership is most appropriate for
a company in order to develop effectiveness in change management based approachhes
(Evans, 2020) Amazon should try to make all its changes more exciting to work and for its
usage among employees. With this, staff members will be working more fairly and honestly
for and with the organisation. When these changes are made, Amazon should make sure to
notice its high and low points or features or functions, making it weak points strong and
strong points a little stronger. Resistance should also be considered by the top-level
management as an important part of changing strategies and other process. This resistance
acts as a barrier for growth and development for Amazon. Keeping in mind all these
resistances, there solutions and other ways to implement them should be considered for
overall growth and development. The HR team and management should be responsible for all
human resources of Amazon, be it workers, delivery agents, employees or any other staff
members. It is necessary for a leader to be more ethical to employees in order to make
employees full of honesty and integrity. Leaders should get their work done from the
employees on proper time and HR team, manager should also fulfil all its duties and
responsibilities on proper time with great outcomes for the company. The transformational

leadership is considered as key approach which also results in managing a team with full
change in strategies and actions (Faupel, and Süß, 2019).
It is essential for a business entity like Amazon to focus on implementing best
practices related to strategic leadership and change in order to lead the marketplace. It is one
of the major roles of a leader to choose one of the major strategic theories of leadership for
facing the change. In the recent times, it is key role of a business to focus on implementation
of right approach to develop systematic leadership operations. The main leadership theory
which Amazon can choose to implement in the organisation is Trait theory. The trait theory
of leadership states that leaders are born not made. The trait leadership theory includes
different personality factors which play a key role in increasing leadership’s strength. These
personality factors are openness to experience, extroversion, Neuroticism and agreeableness.
Next is transactional theory which states that good leaders reward positive actions and punish
negative actions. The leadership should take assistance of strategic management to focus on
key plans and policies. In the transformational theory, the great leaders can stimulate their
employees to be more creative and reach their full potential. Change management models are
considered as key approach in handling key situations of the company (Galli, 2018) In order
to face the major change, it is crucial role of a leader to develop critical understanding of the
consequences and issues related to change and choose essential trait accordingly.
The change process at Amazon was led with full-fledged actions and goals which are
essential in increasing overall development of the organisation. The change was led by
leaders in the form of HR manager and top level manager which took all administrative
actions (Heathfield, 2019). This is one of the major role of a leader to focus on analysing the
current situation and act accordingly. Change which was faced by Amazon in acquiring
Whole Food company also made it more competitive and increased its market potential. The
training and development to different employees of Amazon was also a key The Acquisition
based change also created different business opportunities which were effective in making
company more dynamic. The supply chain management of the organisation should be also
controlled by leaders at Amazon after acquisition in order to gain effectiveness in major
operations. In order to deal with key consequences of the acuisition, it is crucial for a leader
to take assistance of transformational leadership for better results. First is Kotter’s Change
Management Model is used by Amazon management and this change model is most popular
in world. In this change model management focuses on employee’s response to change in
increase urgency in this management create some urgency between all employees in

organization so that employees of amazon become motivated and perform their task with
more responsibility and engage them in process only. Amazon’s management have to build a
team which have different types of skills and knowledge which help them organization to
perform different task. Vision which is set by an organization of Amazon must be realistic, it
is practically possible to achieve those objectives of organization and vision help employees
to motivate their work because they know that what they are working for to achieve so it is
important that organization must have clear vision. The main effect of transformational
leadership is, it increases the chances of handling the new situation in a precise manner.
Communicate with employees in organization and tell them about changes being
implemented so that they what is going in organization and they also prepare for that change
and plan the work accordingly. Performance management was also a key factor which was
very helpful in supporting the change (Kerber, and Buono, 2018). Selection of appropriate
leadership theory also created a good direction in order to make the change successful. The
change was very much successful with the support of essential strategy and approach. The
change was also successful as it increased profitability and revenue of company. The change
also helped Amazon to achieve competitive advantage and move ahead of competitors in a
well-defined manner.
HR involvement must be there related to a business in maximum manner in an
organisation for the development of key objectives and goals (Lee, 2018). Also, with the
support of HR involvement, an organisation can develop key approach at the marketplace and
face change in a precise manner. Leaders include various skills and competencies which are
important for leading the team in an organisation. Leaders at Amazon focus on development
of key skills in themselves as well as in employees to perform key operations. The time
management skills are important for a leader to be developed in order to facilitate key
operations and functions. Skill related to management of time helps a leader and employees
to manage day to day tasks with efficiency. It is also major duty of the human resource
management to consider environmental surroundings in order to perform sustainable
practices. All major companies focus on development of time management skills in order to
gain competency edge. In order to face the change, decision making skills should be also
present in a leader in order to develop effectiveness in key operations. The leader should also
have leadership skills and must choose the best leadership style to manage the employees
(Lumbers, 2018). Leader at Amazon use democratic leadership style to manage key
employees. Democratic leadership style is a major tool which helps in formulating key

decisions of the organisation. It is one of the major role of a leader to focus on
implementation of democratic leadership style to increase participation of employees. The
selection of appropriate change management models should be there in an organisation to
develop effectiveness. The leader at Amazon also focuses on development of employees by
rewarding them with key monetary and non-monetary benefits. Human resource management
of a business should also help employees by providing quick resolution of the problems
(Macke, and Genari, 2019). The main role of human resource management is to focus on key
functions of the company and achieve main aims and targets of the organsiation in a set
period of time. It is essential for the company to focus on goals and objectives and achieve
them with key focus on management-based approaches.
The leaders at Amazon also focus on implementation of best and suitable leadership
style in order to lead the marketplace (Marshall, 2019). In order to gain effective edge over
different competitors, it is essential for Amazon to focus on development-based targets. In
order to increase the competitive strength of a company to analyse the major factors which
are important for considering key approach to the organisation. Board of directors and top
level management should focus on analysing their needs and wants of employees to perform
operations in a better manner (Mantulenko, and Aleshkova, 2021) In the stiff competition era,
it is major role of a business to analyse the employee demands and needs which are important
for development of a company. The different companies should develop a systematic
marketing approach in order to gain competency edge. The support of executive is essential
for a leader in order to develop necessary approach in dealing with major situations. This is
one of the major roles of a business to focus on organisational growth with key emphasis on
tools and techniques for overall growth. The main function of a business at the marketplace
should be development of various factors that are required for company development. –
Leadership will lead to influence skills and capabilities of employees so that they can conduct
task and activities in effective manner (Mendez, 2020). The Amazon company regularly
focuses on implementing participative leadership style which increases the involvement of
employees in key functions of the organisation. The different employees of the company are
also motivated with the support of participative leadership style. Also the main functions of a
company are increased with the key focus on management styles and their implementation. In
the recent times, different business organisations support the participative leadership style to
take decisions with less involvement of risk. The Amazon company also issues key

guidelines which are important for development of appropriate leadership styles and also
ensures their implementation.
This is one of the major roles of top-level management and board of directors of
Amazon company to develop planning framework and strategy. In the recent times, many
companies focus on increasing business strength by taking into consideration key models and
theories.. The SWOT analysis will help Amazon to analyse its current situation and act
according to key market forces and demand. In the development of a company, it is essential
role of management to focus on analysing key factors which are associated with internal and
external environment. In the supply chain of the organization, it is essential to take into
consideration decisions made by leaders. The management of Amazon company should
perform SWOT analysis with the help and support of professional employees to maintain
optimum decorum at the marketplace.
In this section, example of situation where Amazon has acquired Whole Foods
company is taken into consideration. This acquisition bought major change in the company
and is demanding management roles in order to deal with situation.
Now Amazon apply of application key chain models in organization that is help management
to find out each potential areas of business and implement different strategies to reduce or
minimise those hurdles which come have to prepare before start the process. This change
model helps employees of organization to improve their communication and make effective
strategy in reference to organization survival in market for long term. There are various types
of change model which management of organization have to apply to become more effective
in making and implementing strategy and make organization sustain long term in market.
First change model is Kotter’s Change Management Theory is used by Amazon management
to motivate people for their work and their responsibility which they are assigned by
organization management (Mira-Bohigas, 2021). This will help to build change in team with
their leaders of different skills and ability of their each department of organization.
Management have to communicate every time with their change management process so that
they know the working status and they make sure that everyone knows there role to perform
in their organization. In this management of Amazon create a short-term goal to break their
change management into achievable steps towards their main primary objectives. Second is
McKinsey Change Management Model is used by Amazon’s management to plan strategies
and prepare structure of organization. In this also management have to examine how much

staff required and types skills required in employees to perform activity of organization.
Third is ADKAR change Management Model n this model Management of Amazon have to
examine all gaps which is arise while accomplishing the objectives and bridge all gaps so that
next time is not happened in organization while achieving objectives (Morin, 2018). The
change leadership is considered as key approach in maintaining operations of the business
firm. ADKAR stands for Awareness, Desire, Knowledge, Ability and Reinforcement
respectively. This all factors have to focus by management to accomplished organization
objectives. Fourth is Kubler-Ross this model is different from other models because in this
management have focus to employee oriented in Amazon Organization. In this loss of job,
change in work condition and more other health issues of employees in organization have to
understand by management. In this Denial stage where employees are not ready and willing
or accepting change in organization and next stage is and anger where employee lose their
patience level and become anger in organization. Fifth stage is Lewin’s change management
model in this management of Amazon is applied in organization to better understand of
change in structure and this model contain 3 main stages which are first is Unfreeze which is
for preparation stage where employees get prepared for change in organization. Second is
Change in this new strategies and plans is implemented by good leadership and effective
employee communication and third stage is Refreeze where employees are preparing their
mind set and back to their work in organization. Six stages is Bridges Transition Model in
which management of Amazon used for emotional scenarios in organization if employees is
suffering from any emotional stage due to their personal reason then management is
communicate with that employee and try to take out from their emotional state, so that they
able to perform their organizational responsibility which they assign to perform. This Bridges
Transition Model having three steps which help management of Amazon to help out their
employees from emotional stage . First Steps is Ending, losing and letting go means in this
management have to realise employee that which is gone this will never come again, so try
and work hard for next opportunity. Second Step is Neutral Steps in which employees are
stuck between new and old opportunity so for this management guide them in a right
direction to move. Third steps is New Beginning in this employees is finally out from their
emotional stage in their life and ready to accept changes and make comfortable in new
changes in organization (Outram, and Parkin, 2020).
HR leadership is very important aspect for management of organization. HR is pillars
of organization because it always helps management to examine all work forces which is

required to perform an activity of organization. HR is responsible for that they help
employees in organization that they must feel comfortable and if any issue is faced by an
employee then HR have responsibility that they must have to resolve problems of employees
and provide them solution and this will make employee more sustain in organization for long
time (Peters, and Hopkins, 2019). There are different leadership skills which HR has to
perform in Amazon organization. First leadership skills which HR have to play in
organization is Transformational Leadership in this leadership HR have to work with unique
style in organization so that it motivates employees to perform their task with most effective
way (HR involvement, 2022). In Amazon organization HR has to make sure that each
employee is fully potential to perform their task with very unique style so that they influence
other workers to perform and enhance their performance.
Second is Participatory Leadership in this employee must have that skills to take out
themselves from any situation which arise in organization and HR of Amazon should take
care that employees are facing any issue in organization which will hamper their work then
HR should help employee to get out from this situation. Third is Situational Leadership in
which employees of Amazon make leaders according to situation arise and they believe that
this representative can resolve this problem and HR have to take care that this that issue will
not go longer and as soon as possible resolve this problem making good resolution from this
problem. Amazon can also take assistance of transformational leadership to include focus on
key functions of the organization (Philip, 2021). The main approach in leadership focus on
behavior of employees to formulate key regulations and objectives. HR responsibility
because if any issue is arising in organization then HR have responsibility to solve that issue
by making most effective decision so that employees will be motivated for their work and
responsibility in organization. It will enhance their work performance in organization and it
indirectly impact organization growth and achieved organization goal with efficiency. If
problem was not solved by HR, then employee don’t perform their task with full motivation
and it will create another problem in organization and it will affect production and
performance level of organization and employees too. Fourth is Transactional Leadership in
which HR have to motivate their hard worker employees by appreciating their work in front
of all organizational employees and giving rewards so that they also feel motivated for their
responsibility and they are fully potential to their work. If some employees are not
performing their task then HR have to communicate with them and ask about their problems
and make them comfortable so that employees don’t feel pressure for their responsibility and

they also perform their task with full potential. This is very important for organization that
they have to take care of all these in organization because of all these reasons organization
can achieve their goals if they go in right direction and sometime this create problem in
organization because employees is not going in a right direction and organization
management can’t accomplish their objectives. Five is Coaching Leadership in which HR
have to play very important role in organization because in this HR have to perform a task
like mentor in organization because they always communicate employees in organization so
that they know which employees is suffering from problem and they don’t have motivated for
their work, So for that HR guide all that employees in right direct for one common direction
so that organization can achieve their objectives with efficiently and effectively in
organization.
In organization HR have to play various roles in management for their smooth running and
their operations. Management of an organization totally depend and trust on HR that they
always help organization to improve their work performance and productivity level by
selecting skills employees which perform their task with more efficiency in organization.
This will help organization to enhance their work performance level in market and this will
easily compete their competitors in market. There are different roles which HR has to
perform in organization for development and growth in market. First role of HR in Amazon
organization are Compensation and Benefits to employees along with increasing sustainbility
of the company. HR is responsible for to decide that each pay role for each designation in
organization. Employees who should perform good task then HR should give extra rewards
so that an employee is confident and motivated for their responsibility in Amazon
organization. Second is Recruiting and staffing which HR had to play in Amazon
organization. HR is having responsibility that organization have to recruit the employees
according to their operation activity and it is important that employee must be have skills to
perform activity which they have to assign to perform in order to achieve objectives of
organization. This is most important functions that HR has to play because employees are the
most important asset in organization to perform their operational activity which helps them to
developed their business and grow their business in market. The emotional intelligence of
employees should be increased by leaders and managers to make them more responsible
towards the organisation (Saini, 2018) Amazon of HR have to play important role in
organization because it is important for Amazon that their employees must have ability to
perform activity of organization in most effective way which will help Amazon to achieve

their objectives. The leadership and change are two important aspect of a business which
helps in recovering from a critical situation. Third is Safety and Compliance in which HR is
responsible that they must have to take all measure steps and precaution that will make
employees feel safe in organization like that management provide full secured of employee’s
job so that employees also work for that secure it place in organization for long-time by their
work performance in their assign task.
Amazon should provide full opportunity to all employees to secure their designation by
performing well in organization and organization also have responsibility that they have to
make feel all employees safe in organization until and unless employee do not perform aby
activity in organization which illegal. Fourth is Training and Development of skills and
knowledge of employees who joined new in company It is important that new employee is
must get training and they developed their skills so that they are able to perform their activity
which is assign in organization. HR have to take care that each individual employee who join
Amazon must get trained by their trainers and they developed their skills so that they are able
to perform their task in organization. It indirectly helps organization that they accomplished
their objectives with effectiveness in market and management of an organization are able to
generate more profits in organization, so that they expand their business. A leader should
focus on whole needs of companies and employees to develop key practices and approach
(Schell, 2019). It important that new employees must developed new skills and knowledge
which is given by trainer while training period then only it is possible that employee can
perform in organization and help management to attain their objectives with a given time
frame in market.
Role of HR by Ulrich and Story in Amazon organization are there to represents a model
change in the field of human resources. It is ideal for large or complex organizations with
multiple business units. According to the Ulrich model, HR must play four key roles in an
organization which is very important for organization because it help to accomplish their
objectives. First is strategic partner is the task of HR Management and HR Business Partners
to align HR activities and initiatives with the global business strategy. Strategic Partnership
may appear to be simple to implement at times, but it requires an important quantity of effort
on part of Human Resources. Second stage is change agent is a critical factor of Ulrich's HR
Model. Along with this strategic leadership is a major approach which will help the business
to grow according to the contemporary business environment. The role of a change agent is to
support with the change and transition of the business in the area of human capital in the

organisation. Human Resources role is to provide support for change activities in the change
effort area while also ensuring the capacity for the changes . Third Stage is administrative
expert role evolves over time. Initially, it was simply about ensuring the highest possible
quality of delivered services, but now the emphasis is on the ability to provide quality service
at the lowest possible cost to the organisation. Different perspectives of change should be
evaluated by HRM and leaders to develop critical approach in management of major
functions. Fourth stage is employee champion is a critical Human Resources role. Employee
advocates understand what employees require, and HRM should be aware of this. The
employee advocate is capable of looking out for the interests of employees and protecting
them during the organisational change process.

CONCLUSION
The mentioned essay, it is concluded that leadership and management approaches helps
an organisation to gain competitive advantage. This essay also concludes the effectiveness of
human resource management in order to increase the development of a company. This project
concludes the effectiveness of strategic and top level management to facilitate key operations
and functions related to business development. This project concludes the significance of
SWOT analysis in determination of internal strength and weaknesses that are faced by a
company while implementing the change. In the recent times all major companies in
domestic and global marketplace focus on developing strategic approach to deal with the
change. This project concludes the role played by human resource management to manage all
kinds of change. The essay reaches to a conclusion that leadership is a key approach which is
helpful in increasing competitive strength of a business.

Lessons learnt
Following are lessons learnt from the essay
 The leaders are supposed to develop key skills like decision making, team
management, time management and coordination in order to handle the
organisational change in an effective manner.
 In order to develop an effective approach in managing change, it is essential for
the project manager to focus on formulating and selecting strategic choices.
 The leader should be also future oriented and achieve all the targets of change
with the help and support of team members (Starr, 2021).
 In order to lead the change a leader should also focus on selecting most
appropriate leadership style like Democratic to increase employee engagement
and employee productivity.

Appendix
SWOT analysis
The SWOT analysis is a major framework which helps and assits a company in order to know
strengths and weakness. With the help of SWOT analysis, a company can also know opportunities
and threats that are available at the marketplace. The SWOT analysis also helps the leaders to
understand culture of the organization and develop major transformational leadership to deal with
key issues and challenges. The SWOT analysis includes the description of strengths, weaknesses,
opportunities and threats which are important for systematic development of a company. Amazon
must perform SWOT analysis in order to compete at the marketplace and face desired change
(SWOT analysis of Amazon, 2022). The SWOT analysis of Amazon will help the company to perform
key operations with increased responsibilities and approaches.The SWOT analysis of Amazon is
mentioned below:
 Strengths- The human resource management and financial management are key strengths
of Amazon which helps in increasing strength of company. Human resource management of
Amazon has professionally trained and skilled employees who play a major role in
management of employees. Financial management of Amazon helps in maintaining financial
transactions of the company in a well- defined manner. The financial management of a
company also helps the business of Amazon to access financial strength and position of
company.
 Weaknesses- Main weaknesses of Amazon are its research and development department
and information and technology management. The research and development department
of Amazon focuses on development of innovation and responsible for the market survey and
research (Xenikou, 2022). The human resource management of a company should be
involved in social work in order to overcome various issues. Information and technology
department of Amazon should take into consideration usage of advance computer systems
and software to perform key operations.
 Opportunities-The opportunities are termed as scope available to Amazon for performing
new operations and functions. For Amazon expansion and growth are considered as two
major business opportunities which are available. Growth and expansion help a company to
increase its revenue and profitability at the marketplace.
 Threats- Threats creates risk for the company to perform all operations in a systematic
manner. It is important for a company to take into account all threats and develop a

competitive strategy to deal with the same. Amazon has major threat from all competitors
which can impact on its functions and organisations. The digital transformation of leadership
is also important for a leader to develop effective approach in dealing with major threats
(Threats for Amazon company, 2022). The company should face all its major competitors
with strategic choices and actions to deliver best business practices. Major companies like E-
Bay and Ali Baba are giving tough competition to Amazon and is demanding for major
change.
PESTLE analysis
The PESTLE analysis is considered as key tool which is used by a company to analyse the
external environment. In the recent times due to increased competition, it is important for a
company to focus on PESTLE analysis for development of business (PESTLE analysis of Amazon,
2022). The PESTLE analysis of Amazon is mentioned below:
 Political factors- The political factors are associated with rules and regulations formulated by
government of a country. It is also crucial for a business like Amazon to take into
consideration all major political factors to conduct legal business. The emotional intelligence
of employees and organisation is important for dealing with major issues which arise due to
political interference.. The political factors also include corporate laws developed by
government of a country to control business organisations.
 Economic factors- Economic factors are related to inflation, recession, deflation rates which
impact on revenue and profitability of Amazon. The economic factors also impact on Gross
domestic product and national income of a country (Economic factors that affect amazon,
2022). Amazon should consider all major economic factors in order to conduct and develop
successful business.
 Social factors- The social factors are considered as key factors which impact on functioning
of Amazon. Social factors are related to culture and traditions of the society which a
company needs to follow to gain competitive strength. The leadership and change
management based strategy can deal with social factors and their approach in a precise
manner. The Amazon company develops social environment in order to create effective
environment for the employees.
 Technological factors- Technological factos include information and technology based tools
and techniques. In order to adopt focused technology based approach it is important for the
change manager to implement new practices (Technological factors in a PESTLE analysis,

2022). The Amazon company use advance computer systems and software to deal with key
operations. Company also use customer relationship management software to move ahead
of competitors.
 Legal factors- Legal factors are related to laws and regulations formulated by local authority
to control busineness in the economy. The leader of Amazon consider future perspectives
related to legal factors and develop policies accordingly. Amazon follows rules and
regulations developed by local authorities in order to conduct legal business.
 Environmental factors- The environmental factos are related to sustainable development
which is beneficial for company and future generations. The culture of the organization
should be according to sustainable factors in order to conduct ethical business. Amazon
follows environmental policy developed by government in order to conduct ethical business.

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Technological factors in a PESTLE analysis, 2022[Online]Available
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