Business Environment Assignment

Running Head: BUSINESS ENVIRONMENT ASSIGNMENT 0
BUSINESS
ENVIRONMENT
ASSIGNMENT
student name
4/30/2019

BUSINESS ENVIRONMENT ASSIGNMENT 1

BUSINESS ENVIRONMENT ASSIGNMENT 2
Executive summary
 Amazon is leading ecommerce company offering almost all consumer goods across the
world.
 After analysing the external factors through PESTLE analysis it can be said that the
Political and legal factors can be major threat for the company.
 The threats of competitors are medium to high in nature because the company has gained
economies of scale and largest retailing company across the globe. Amazon major direct
competitors may be AliExpress, and Ebay. Some of the other competitors of the company
would be Wal-Mart through brick and motor retail business in various nations.
 Internal stakeholders of amazon included Employees, Shareholders / Directors, senior
management.
 External stakeholders of amazon included Suppliers or Distributors, Customers, Business
partners, National government, and Community.
 Employees, suppliers and community of amazon has high degree of interest but they
have low power, which reflect that their influence is very low in the company’s decision
 The customer are not seems to be interest in the business of strategic decision of amazon,
but the bower of customer are high, which reflect that the customers influence is very
high for amazon and they are kept satisfied by the company.
 The degree of interest and power are high for both these stakeholders of amazon. This
reflects that these have major influence over the business of Amazon.

BUSINESS ENVIRONMENT ASSIGNMENT 3
 Distributors have minimal interest in the company and have no power in company’s
decision-making or operations. Therefore, the influence of distributors is low or
negligible.
Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................3
PESTLE analysis.............................................................................................................................4
Porters..............................................................................................................................................7
Functional areas...............................................................................................................................8
Internal and external stakeholders and their roles 300..................................................................9
Internal stakeholders of amazon..................................................................................................9
External stakeholders...................................................................................................................9
Comparative industry analysis.......................................................................................................11
The nature and degree of main stakeholders’ interests, and implications of conflicting interests 11
The interests of main stakeholders include................................................................................11
Implications of conflicting interest............................................................................................12
Stakeholder matrix.........................................................................................................................13
The level of the main stakeholders’ influence...............................................................................13
Stakeholder dissimilarities and analyse the differences in stakeholder interests and influences
...................................................................................................................................................13
Conclusion.....................................................................................................................................16
References......................................................................................................................................17
Appendix........................................................................................................................................20
Appendix 1: PESTLE analysis..................................................................................................20
Appendix 2: Porter’s five force model......................................................................................21

BUSINESS ENVIRONMENT ASSIGNMENT 4
Introduction
Stakeholders of a company are the members or set of people associated with the organization and
are supporting the organization to pursue the organization or influencing the business in some of
the other way. It is relevant for the company to consider each stakeholder while conducting
business. However, the level of influence of the stakeholder depends on the priority of the
stakeholder in the company. Stakeholders of a company can be affected or can affect the
enterprise by the action, policies, and objectives of a company. For example, some of the
internal stakeholders of the company are directors, employees, suppliers, shareholders, unions
and creditors (Gross, 2018).
The report will include the stakeholder analysis while considering an organizational case.
Amazon is a leading e-commerce company offering almost all consumer goods across the world.
The company is working in a very dynamic environment and competitive retail industry
(Amazon, 2018). To analyse the stakeholders, the report will include business environment
analysis through tools like PESTLE analysis and Porter’s five-force model.

BUSINESS ENVIRONMENT ASSIGNMENT 5
PESTLE analysis
PESTLE analysis is a tool to analyse the external business environment of the company. The
external factors as per this tool include (As referred to Appendix 1):
1. Political factors
These factors include the factors related to governmental authorities and the political system of
the nation. The political factors for amazon can be major threats for the company as the company
is providing good around the world and need to abide by various political systems. Amazon is
depending on support from the government to distribute and implement the business in the
nation. Moreover, another political constraint that will affect the business would be the tax rate,
which will alter the profit margins of the company. For example, Australia’s corporate tax is
thirty percent and seems to be constant for various years as presented in the graph below
(theglobaleconomy, Australia/corporate_tax_rate, 2019). However, this could be different for
another nation, which could make a high profit margin for the business in one nation than
another.