Organisational Change Management: A Case Study of Amazon's Acquisition of Whole Foods
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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.
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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 roleofmanagementtofacilitateleadershipmanagementusingappropriatetoolsand 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.
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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 whicharecompetingintheinternationalmarketplacelikeAmazonshouldtakeinto 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. Companyshouldalsoputemphasisondifferentbusinessassociatedfactorsandits 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 pointsalittlestronger.Resistanceshouldalsobeconsideredby thetop-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 increaseurgencyinthismanagementcreatesomeurgencybetweenallemployeesin
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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. Communicatewithemployeesinorganizationandtellthemaboutchangesbeing 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 managementtoconsiderenvironmentalsurroundingsinordertoperformsustainable 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).LeaderatAmazonusedemocraticleadershipstyletomanagekey employees. Democratic leadership style is a major tool which helps in formulating key
decisionsoftheorganisation.Itisoneofthemajorroleofaleadertofocuson 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 takedecisionswithlessinvolvementofrisk.TheAmazoncompanyalsoissueskey
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 theirleadersofdifferentskillsandabilityoftheireachdepartmentoforganization. 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
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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.ADKARstandsforAwareness,Desire,Knowledge,AbilityandReinforcement 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 performinAmazonorganization.FirstleadershipskillswhichHRhavetoplayin 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 anditwillcreateanotherprobleminorganizationanditwillaffectproductionand 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 responsibilityandtheyarefullypotentialtotheirwork.Ifsomeemployeesarenot 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 createproblem in organizationbecauseemployeesisnotgoinginarightdirectionandorganization 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 sothatorganizationcanachievetheirobjectiveswithefficientlyandeffectivelyin 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 sothatanemployeeisconfidentandmotivatedfortheirresponsibilityinAmazon organization.SecondisRecruitingandstaffingwhichHRhadtoplayinAmazon 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
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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.
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Lessons learnt Following are lessons learnt from the essay The leaders are supposed to develop key skills like decision making, team management,timemanagementandcoordinationinordertohandlethe 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 Amazonhas professionally trained andskilledemployeeswho play amajorrolein 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 companyneedstofollowtogaincompetitivestrength.Theleadershipandchange 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,
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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 relatedtolegalfactorsanddeveloppoliciesaccordingly.Amazonfollowsrulesand 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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