Contemporary Business Issues in Business Management: A Case Study of Amazon

This report discusses the contemporary issues faced by Amazon in the modern and technological business environment, focusing on artificial intelligence and workforce diversity. It critically evaluates the impact of these issues on Amazon and provides recommendations for effective strategies.

Business Issues in
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Five contemporary issues faced by Amazon..........................................................................1
Focus on two main issues.......................................................................................................2
Critically evaluate the impact of two issues on Amazon.......................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
The overall objective of report is to provide the understanding regarding the contemporary issues
which are being faced by the Amazon within the modern and technological business
environment. Business tends to opt the modern ways in terms of remaining within the
competitive business market (Miller, Wiklund and Yu, 2020). Company always needs to be sure
about all the external and internal factors that impact the business management of an
organisation. Here, Amazon is the large e-commerce company that sell wide range of products
and services all over the world. The company was established in 1994 in United States. It is also
known for the drastic technological innovation and mass media strategies in terms of regulating
the global business environment. Here, the company relies under the top five rates of US as it is
the top rated and valued brand across the world. Here, the current competitive environment while
having other top most organisations like Microsoft, Apple and Facebook. Further, Amazon tends
to face many contemporary issues which are discussed in the report. The two main issues are
artificial intelligence and workforce diversity that create barrier in terms of achieving the
organisational goals that may impact the future growth of an organisation.
MAIN BODY
Five contemporary issues faced by Amazon
Impact of artificial intelligence: Artificial intelligence is a fantastic tool to connect with
individuals all around the world and converse with them. Amazon is able to discover what its
customers are seeking for and how they may have established a simple way to reach the public
using AI technology. It is a type of machine learning solution that gathers data and improves
deep learning in a more efficient manner. It is utilised to figure out what people are seeking for
and what precise products they are shopping for (Clarkson and Miller, 2020). The company is
having problems with AI in terms of security, personalisation, delegation, and database
management. Personalization services are expensive, and most consumers cannot afford to pay
such a large sum. As Amazon collects data from customers, the issue of security is a major
worry. The assistants have access to people’s emails, social media accounts, galleries, and any
other electronic network they use, which violates their privacy. Amazon is also dealing with
issues of trust and delegation when it comes to sharing data, as this information might be hacked
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and used for a variety of purposes. As a result, innovative strategies are required to ensure a safe
future.
Workforce diversity: In terms of their working environment, an organisation must diversity
(Michael-Tsabari and et.al., 2020). Workplace diversity is ensuring that men and women are
treated equally in the workplace, with respect for differences in culture, language, colour, and
background. Amazon hires people from a wide range of cultures and backgrounds. Because
women make up 31% of the workforce, the corporation is having difficulty hiring more of them.
Internet security: The issue of Internet security is also causing Amazon a lot of problems.
Because of lax security protocols, hacker attacks are on the rise, resulting in a drop in customer
engagement and trust in the organisation.
Modern working practices: Modern workplace practises are becoming more modern
rather than conventional, resulting in a rapidly changing environment, investment modes, and a
variety of other activities, all of which contribute to financial stability difficulties.
Fast innovation: One of the key causes in today’s corporate environment is rapid
innovation. A transition to quick fashion will result in dead stock and frequent changes in
customer needs. This results in waste and resource deterioration.
Focus on two main issues
Artificial intelligence:
It is all about creating a platform that allows you to reach a large number of individuals at once.
Many current IT companies employ this technology to gain access to client data and search
histories (Long, Iñigo and Blok, 2020). It is a programming language, or more accurately, a
machine language, that collects data and provides insight into what people are looking for and
searching for on a regular basis. In today’s technology environment, it offers numerous
advantages and configurations to the organisation.
Artificial intelligence can help with issues like as engaging with buyers, getting their
evaluations or feedback, and responding to their questions. All of these can work successfully
and invisibly without the public's knowledge. It's a fantastic approach to make work easier and
find anything one want. Organizations are required to make proper use of these technologies.
The current modern environment is primarily focused on increasing the use of robotics while
decreasing the usage of labour, which is not a sustainable or successful manner of working.
Human psychology, not robot psychology, will be better understood by humans.
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They are used to make work easier, but they are ineffective since they can only be
performed by employees who put forth considerable effort in providing the greatest possible
service to the organisation. Personalization trumps privacy, security, the agent helper, policies
trust and delegation, and database biasness on Amazon. All of these difficulties are related to the
data that Amazon collects through gaining access to people's personal accounts, which is not a
good approach for maximising the positive impact of technology.
People always want their personal information to be safe and secure, but artificial intelligence
doesn't always provide (Howorth and Robinson, 2020). Also, Alexa acts as an agent to answer
people's questions, but it makes it difficult for customers to discover answers to complex
problems, resulting in a lower level of satisfaction. All of this is machine and robotics jargon that
can change depending on the demands and circumstances of human existence.
Amazon needs to concentrate on artificial intelligence with more clarity and concept
clarity. The organisation has challenges with payment security, providing the greatest items for
customer happiness, and failing to be certain when analysing what their customers want. All of
these repercussions combine to create a poor impression of Amazon's business operations.
Changes in skills requirement:
Changes in the skills requirement is another important business that can have a potential impact
on the overall functioning of the company. This is because with advancements in technology,
there has been an impact on the level of skills as well as knowledge that are required to operate
artificial intelligence in an effective manner. the skills that are required by the candidates as well
as the existing employees to develop is that they should have an effective level of knowledge
(Howorth and Robinson, 2020). Apart from this, it is also required that they should have skills so
that they are able to operate the different technological soft wares that are based on the artificial
intelligence. This will make sure that the operations are conducted in an effective manner and
hence, this makes sure that the goals as well as objectives are achieved to a great extent. Thus, it
can be said that there is a requirement for the company, Amazon to hire or recruit people who are
experienced in the same or have effective knowledge. Otherwise this can lead to creating major
challenges for the company related to its performance as well as efficiency of the business
operations.
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Critically evaluate the impact of two issues on Amazon
As already mentioned, the two main issues that have been identified are workplace
diversity as well as artificial intelligence. These are the main issues that are being faced by the
company currently. There are a lot of companies that have implemented artificial intelligence in
their workplace to ensure that the business operations are conducted in an effective manner. the
company has implemented artificial intelligence in order to enhance the overall experience of the
customers. But most of the artificial intelligence that has been implemented, is focussed on the
internal functioning of the firm. It can be said that implementing artificial intelligence has helped
the company in providing the customers with an effective service (Ayodele and et.al., 2020).
There are various pros as well cons of artificial intelligence for the respective company.
Because of the introduction of artificial intelligence in the business, there have been
changes in the skills that are required for conducting the business operations in an effective
manner. This is because companies now mostly operate digitally and there is a need for people or
employees who can carry out the business tasks in an effective as well as efficient manner.
Because of the diversity in the workplace, there is a change in the skills requirement to ensure
that the operations are carried out in a smooth manner. There are various advantages as well as
disadvantages of implementing artificial intelligence for Amazon. One of the biggest blessings of
Artificial Intelligence is that it could significantly lessen mistakes and boom accuracy and
precision. The choices taken through AI in each step is decided by way of data formerly amassed
and a certain set of algorithms. When programmed well, those mistakes can be reduced to null.
Another big gain of AI is that people can conquer many dangers with the aid of letting AI robots
do them for us. Whether it's defusing a bomb, going to space, exploring the inner most
components of oceans, machines with metal bodies are resistant in nature and can survive
unfriendly atmospheres. Moreover, they can offer correct paintings with greater duty and not put
on out effortlessly. At this stage, the productivity of AI answers depends at the information that
they're fed. In addition to the preliminary price of putting in place an AI machine, businesses will
want to put money into and keep a strong data framework, and devote time to schooling the
software (Brooks and Dunn, 2020). The complexity of the software can even need a skilled
employee to preserve it. While we see that there are both professionals and cons of synthetic
intelligence, the pros seem to outweigh the cons. Therefore, large-scale AI adoption will become
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nearly inevitable, later, if no longer quicker. Therefore, for professionals meaning to construct an
AI profession, this is particularly a thrilling time to go into the enterprise.
It can be said that there were certain challenges that the company faced with changing
skills requirements. Both IT body of workers and choice-makers are overwhelmed with work
needs. It’s kind of a chicken and egg state of affairs—decision-makers are the use of increasing
workloads as an excuse no longer to authorize education, and workforce are struggling to
complete assignments because they lack the right abilities.
Changes in skill requirements have limited the options of potential candidates who can join the
company and work for it. It can be said that it is important for the company to analyse as well as
determine the key skills that will be required by candidates or employees to conduct the business
operations in an effective manner. This also makes sure that there is an improvement in the
overall efficiency and that business goals as well as objectives are achieved. It can be said that by
assessing the changes in the skills requirement, the company will be able to make effective
decisions as well as develop appropriate strategies (Easterby-Smith and et.al., 2021). It can be
said that the changes in the skills requirement is also because of the advancements in technology
and that it has to be the case that the skills should be possessed by the candidates to ensure that
there is an improvement in the overall efficiency of the outcomes (Tien and et.al., 2021).
Therefore, it can be said that it is important for Amazon to take these issues into account and
develop an effective as well as efficient strategies that can ensure that such business issues are
eliminated (Gremyr and et.al., 2021). This will have a positive impact on the ability of the
company to achieve its goals as well as objectives and conduct the business operations in a
smooth manner. Apart from this, it will also ensure that the company is able to attract as well as
retain employees for an extended period of time.
CONCLUSION
From the above report, it can be concluded that there can be various factors that should
be taken into account while developing strategies. This is because there can be different business
issues that an organization has to deal with various business issues and these can include remote
working, workforce diversity, changing skills requirements as well as artificial intelligence.
Business tends to opt the modern ways in terms of remaining within the competitive business
market. Company always needs to be sure about all the external and internal factors that impact
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the business management of an organisation. Therefore, it can be said that it is important to
develop effective strategies and implement them to achieve goals as well as objectives.
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REFERENCES
Books and Journals
Ayodele, F.O. and et.al., 2020. Are Ethical Issues Becoming Prevalent Among Business
Management Researchers?. Journal of Governance and Integrity, 3(2).
Brooks, L.J. and Dunn, P., 2020. Business and Professional Ethics. Cengage Learning.
Clarkson, K.W. and Miller, R.L., 2020. Business law: Text and cases. Cengage Learning.
Easterby-Smith, M. and et.al., 2021. Management and business research. Sage.
Gremyr, I. and et.al., 2021. The roles of quality departments and their influence on business
results. Total Quality Management & Business Excellence, 32(7-8), pp.886-897.
Howorth, C. and Robinson, N., 2020. Family Business. Routledge.
Long, T.B., Iñigo, E. and Blok, V., 2020. Responsible management of innovation in business. In
Research Handbook of Responsible Management. Edward Elgar Publishing.
Michael-Tsabari, N. and et.al., 2020. Uncovering implicit assumptions: reviewing the work–
family interface in family business and offering opportunities for future research. Family
Business Review, 33(1), pp.64-89.
Miller, D., Wiklund, J. and Yu, W., 2020. Mental health in the family business: A conceptual
model and a research agenda. Entrepreneurship Theory and Practice, 44(1), pp.55-80.
Tien, N.H. and et.al., 2021. Sustainable Development of Higher Education: A Case of Business
Universities in Vietnam. Journal of Hunan University Natural Sciences, 47(12).
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