Applied Corporate Strategy

Applied corporate
strategy

Contents
Introduction......................................................................................................................................3
Main body........................................................................................................................................3
External analysis.....................................................................................................................3
Internal analysis......................................................................................................................6
Evaluation...............................................................................................................................9
Conclusion.....................................................................................................................................14
References......................................................................................................................................15
Books and journals...............................................................................................................15

Introduction
Corporate strategy is the encompassing the strategic plan which refers to the objectives and
goals and ways of achieving them within an organization. It is declared as the widely used
organization strategy which helps in controlling and monitoring of the business activities. This is
an effective way of allocating company resources and establishing business expectations and
improving competitive advantage of the company in market (Bender, 2020). In this report, the
organization which is chosen is Amazon. Amazon is the multinational technological company
which mostly focus on providing e- commerce, artificial intelligence and digital streaming. This
is considered as one of the biggest company of US. It was founded in the year 1994 by Jeff
Bezos. The total number of employees who are working in a company will be about 1,298,000
working currently. In this report there is a discussion of external analysis that are used to identify
opportunities and threats. Then it consists of key competencies of the organization. At last, it
consists of evaluation of the strategy which is given and chosen in the organization.
Main body
External analysis
PESTLE analysis
PESTLE analysis is the analysis which is being conducting by the company in order to
analysis external factors which can directly or indirectly could affect the business environment
and activities. There are some of the factors which can affect the company in direct and indirect
manner.
Political factors: political factors like political decisions that are related with controlling
of the business and government decisions that could directly impact on operations of the business
(Cunha, and Juen, 2020). These factors include taxation changes and corruption and business
policies.
Opportunities: Opportunity for the company is that company is becoming online and making use
of e- commerce platforms which can helps them in creating opportunity to enhance their
business.
Threats: The current threat which is becoming in the company will be that government is
concerning that they ae monopolize too much of the market. So, this may link directly to the
regulating competition.

Social factors: Social factors like demographics of the population. As increasing in
population can results in disposable income per person and on their buying behavior.
Opportunities: Amazon is continuously focusing on the shopping trends so this helps them in
cresting opportunities for their business enhancing and creating opportunities.
Threat: The threat for the company is that after this covid pandemic people are more saving their
incomes and keeping them a savings so this may impact the organizations and turns into their
decrease in profitability (Cuomo, and et.al., 2020).
Economic factors: Factors like interest rates changes, inflation rate and unemployment
rate could directly impact the business performance. As low employment could affect the
business operations.
Opportunities: Opportunity for a company could be when they could hire more local people from
the country so this results in increasing of their productivity and profitability both. Also, at the
time of recession, companies should have to focus on their pricing strategy. Because people
could not have that much amount to spend. So, if Amazon could reduce its price for essential
goods then it may lead to increase in their opportunity.
Threats: The major threat for the company is that in recent months there is less requirement of
employees and also now companies are firing employees from their company due to covid
reasons. So, this may impact the business environment and results in bringing threat.
Environmental factors: Usually environmental factors involve more towards more
sustainable business operations.
Opportunity: Amazon is focusing on reducing their impact on pollution environment by using
new techniques and new methods in green technology and delivery methods. So, this will create
opportunity for a company to become mor environment friendly and attracting customers.
Threats: Amazon is being criticized for it lack of suitable packages, as it provides excessive
number of packages in a delivering of an item. So, this becomes threat for a company.
Climate change: This is a global issue what is facing by company and this can impact its
overall business environment (da Cunha Bezerra, Gohr, and Morioka, 2020).
Opportunity: The major opportunity for the company will be that if there is a high requirement of
air conditioner then there could be high sale of air conditioner in the company ab this results in
increasing of the profitability of the company.