SWOT and PESTLE analysis for Amazon

This report provides a detailed analysis of the SWOT and PESTLE factors affecting Amazon's business environment. It discusses the political, economic, social, technological, environmental, and legal factors and their impact on the company. The report also compares different leadership styles and discusses Amazon's current leadership and management style. Additionally, it explores how Amazon addresses its strengths, weaknesses, threats, and opportunities to drive growth. The report concludes with a discussion on ethics and social responsibilities at Amazon.

Context of Business

Table of Contents
INTRODUCTION .........................................................................................................................1
MAIN BODY...................................................................................................................................1
SWOT and PESTLE analysis for Amazon.............................................................................1
2. Critically states how an organisation address their Strengths to deviate Threats and
Weakness which influence opportunities...............................................................................4
3. Compare and contrast the various styles of leadership. States the present leadership and
management style of Amazon. ..............................................................................................4
4. Suggestion of appropriate leadership style that will linked with their management style and
assist Amazon develop further. Justify with the help of appropriate literature. ..................6
5. Responsibility, Response and Obligations in Ethics as well as Social Responsibilities in
procedure at Amazon, states with the help of proof...............................................................7
6. The ordinal part of the project will includes writing a reflection report on experience in
writing this report. .................................................................................................................8
CONCLUSION ...............................................................................................................................9
REFERNCES.................................................................................................................................10

INTRODUCTION
The term business refers to an activity or practice that crests the lifestyle, or standards of
individuals or in other words business is comprises for generating money by selling goods. In
order to run business in effective manner, management team of company needs to perform
various activities and function so that the goal of company will be achieved within small period
of time. Whereas the term business environment means those factors which have power to
influence the function of company (Pratistha, 2016). The current report is based on the case
study of Amazon in order to explore all the factors of external environment. It is a multinational
E-commerce organisation. It majorly deals with the product and services by online mode. In this
project discussion about external and internal environment such as PESTLE and SWOT
framework is carried out along with its impacts. Additionally, comparison between different
leadership style and management styles. Responsibility, response and obligation as per the ethics
and social responsibilities is explained with respect to Amazon.
MAIN BODY.
SWOT and PESTLE analysis for Amazon.
Business environment consist two kind of environment assessment i.e. internal and external. In
which the external is carries out with the help of PESTLE framework and internal is carried out
by SWOT analysis. In order to scrutinize and evaluate the challenges of outside along with
opportunities, the PESTLE analysis will help them even that time also when company wants to
enter in new market (Kwilinski and et.al., 2019). In context of Amazon the following analysis is
carried out:
PESTLE Analysis:
Political- This elements is comprises about the level of government interference on business
unit according to the economy. It includes government rules, policies, and stability, instability
that operates foreign trades, tax policies, and laws related to employees with respect to the
specific country. In context of UK their political factors are enough stable by which amazon have
various benefits of political stability. It offers opportunity to them for expanding their business or
diversified it in more developed countries. On the other hand government is also provides its
support to pursue their expansion in relevance market. Along with it Amazon have to face one
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adverse effects too that is due to Brexit, in which the UK government is not allowed to trade with
EU market.
Economic- With the help of this factor company seeks how they can enhance their
profitability by economic growth, interest rate, forax rate, and so many other disposable income
with respects to buyers and their behaviours towards purchase. In context of Amazon, they are
well established and now they have opportunity to expand their business in other nation of UK
but due to the changes in inflation rate they have to face some problems in online dealing
business because of brexit market. Besides that, the positive factors that provides prospects to
them is demand of management in given economy (Niemimaa and et.al., 2019). The economy of
UK is higher as business expansion can be strategiesed according to their mechanism.
Social- This factor also have significant impact on the function of company. In this firm try
to measure those areas where attitude, lifestyle and beliefs is changes in aspects of population. It
can be on the basis of demographics, geographic age distribution or population growth. In
relevance to Amazon they have to consider all these factors of consumer before enter into new
market. It provides opportunity to Amazon to increase their productivity and profitability that is
affected by the Covid -19. And imitate into the market of online segments for reaching all
consumers and influencing them towards online shopping.
Technological- Due to the advancement in technologies, competition at market place is
increases. This puts a huge impact on the performance and functionality of company. As in the
UK the scope of technologies is too much in that case the management team of Amazon need to
focus on three segments i.e. new way of distribution of goods and services in effectual way and
how to promote innovation and unique products to the consumers for influencing them. In
reference to Amazon, they itself have their advanced technologies like artificial intelligence kind
assets that increase their business mobility in productive way.
Environmental- It is one factor that mainly focuses on that factors which can affects the
sustainability of natural surroundings. In order to maintain the natural surrounding company
need to focus on that and opt those factors which save it. In context of chosen firm they have to
carry out their function by taking care of environment (Cherunilam, 2020). For that they involves
some external factors in their strategies formulation in order to maintain the ecological system.
In which they opportunity to increase their interest towards the maintenance of ecological
system. Which is a good initiate to them towards waste management.
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Legal- For this ecommerce business unit it is important to adhere the legal requirements
so that they will able to perform their task without any hindrance. The regulation that is
introduced by the government related to raising product regulation is an opportunity to Amazon
firm as it gives result of societal demands for the consumer safety and security. Along with it this
legal factor creates another opportunity for them towards reducing the counterfeit sales on online
retail websites (Hillary, ed., 2017). As well as they can expand and grow their business by
adopting the regulation of import and export at global level.
SWOT analysis- This is carried out after the analysis of PESTLE. It is a strategic planning
tool that helps company to identify its strength, weakness along with their opportunity and threat.
In context of Amazon the following SWOT analysis is conducted:
Strength Weakness
 In E-commerce business Amazon is one
of the leading company in that within
online retail industry. They applies
various strategies to lead their business
with the help of cost leadership, focus
and differentiation. The company
mainly focus on gaining the profits
from the action which benefits to
shareholder.
 They selected firm bring creative and
unique ideas of innovation addition
such as ambitious drone delivery
services gives them strength to maintain
their position at marketplace.
 The given firm faces so many
challenges in diversification such as
they try to meet the requirements of
consumer by launching mobile phone
but they fail.
 By offering products at low price or
free of cost, they have fear to lose of
profit margin.
 They are only focus towards the online
services which become very easy to
imitable for the other companies in this
common digital world.
Opportunities Threats
 They have opportunity to penetrate or
expand their business at new location.
 More acquisition of E-commerce firms
 The biggest threat for Amazon is
aggressive competition as well as
entrance of other company in online
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can enhance the market shares and
revenue of company by reducing the
competitive edge (Ricciardi, Zardini
and Rossignoli, 2016).
 Along with all, another opportunity that
they have is they can launch electric
rickshaw in developed countries which
is a good initiation towards
management of environment.
retail segment.
 In some critical countries, such as
Cuba, Iran etc. the government
regulation is another threat for this
company.
 Enhancement in cybercrime can affects
the network and security system of
company.
2. Critically states how an organisation address their Strengths to deviate Threats and Weakness
which influence opportunities.
In above section the internal and external analysis is carried out in context of amazon, in
which some favourable and unfavourable result are obtained. With the help of PESTLE analysis
it has been found that the most affecting factor for this firm can be political and economic due to
Brexit. This might be because of decrement in growth of revenues or shares and that can acts as
threat to them. And the opportunity that is driven from social factors is that at the same time they
can increase their productivity and profitability by covid-19 because after this pandemic situation
people are more preferring online shopping instead of going anywhere for offline.
In addition to this, a SWOT analysis is also conducted for identifying the strength,
weakness, threat and opportunity. In which, it has been examined that the biggest strength of
Amazon is that they have a large E-commerce technological business for online mode. They
possess high market shares (Akhtar and Sushil, 2018). And the opportunity to them is by
adopting the regulation of importing and exporting they can enhance their sales and profit margin
at global level. As well as it will become the threat for the other players at market place.
3. Compare and contrast the various styles of leadership. States the present leadership and
management style of Amazon.
The term leadership refers to an art of motivation that is given by leaders to their team
members in term of appreciation or guidance in order to accomplish the organisational goal. It is
the duty of leader to influence the team members in positive manner by communicating with
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them in effective way. So that they will able to abide all orders and perform their allotted task in
effectual manner (Hamilton and Webster, 2018).In perspective of Amazon, they have good
leaders with excellent leadership skills which help company in attaining their pre-determined
goal.
Leadership style: -
Participative leadership style:
It is also known as democratic theory. According to this theory, the higher authorities of
company will involve their employees too in decision making process so that they will fell
motivated and encourage and performed in better way their allotted task (Eling and Schaper,
2017).This will leads them towards better outcome.
Delegating leadership theory:
It mainly focuses on allotting the role and responsibilities to the peoples within team. As
it become successful theory if the members of company are able to manage and handle the
allotted role and responsibilities in effective manner.in context of amazon, the senior authorities
assign obligations to each members of team according their skill and knowledge so that they will
able to perform their task in effective manner.
Authoritarian leadership
In this theory all the decision is only taken by the leaders of the team instead of
involvement of all members. According to this theory an individual person will reflect out as
successful because of having good knowledge in specific areas for particular team (Müller. and
Hoppstadius, 2017).In context of Amazon their leader having authority and command to guide
their team peoples and can take all decision for a systematic measures activities and employees
performance.
Laissez-faire: This is another type of leadership style in which this approach permits
teams to explore creative strategies and drive innovations. In this entities usually figure out
various types of leaders in creative environments where deadlines are not crucial as well as team
members manages itself. In context of Amazon, entities provides obligation to team members
and provides information along with trust in order to gain a positive and effective outcome.
Transformational: Such type of leadership theory aids company to become flexible with
the changes as it helps entities along with team members to adopt changes easily when there is
require arises. Once leaders receive task from management, leaders pass to their team members
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and inspire them for attaining that goal and maximizes productivity. In context of Amazon, they
adhere this style in order to figure that all individual are motivated or not within firm
Basis Participative Delegating Authoritarian
Function In this leaders permits
to their employees for
taking part in
activities with
themselves.
This mainly emphasis
of assigning the role
and responsibilities to
each group members.
It majorly depends on
managing all activities
by own leader.
Decision making In this the decision
will be taken by the
leader but they
consider the view
point of their team
members also.
In this each and every
one has power to take
decision within team.
In this only one
individual possess
power to take decision
Current leadership style and management style that is used by Amazon:
In context of Amazon, they follows the visionary leadership style that mainly focus on
consumer related to service in order to provide motivation and encouragement for performing
better and sustain their profitability for long term. Jeff Bezoz, founder of Amazon follow the
contingency leadership style for meeting the critical of employees as well as involve them in
decision making process. The chosen firm adopt or use the theory according to the need and
situation like they set high standards with high expectation. The management style that is used
by this company is set according to the accomplishment of organisational goal. They adopt
employee consultation, trade union in order to maintain the workforce environment. So that
everyone of company will feel how important they are for the company and this will gives
strengthen them to perform better and achieve their goal with organisational goal within
stipulated time period. In addition to this they follows Paternalistic management style in which it
determines the better or effective decision making by considering all trust of consumers in order
to clear out their quarries in systematic approach.
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4. Suggestion of appropriate leadership style that will linked with their management style and
assist Amazon develop further. Justify with the help of appropriate literature.
From above discussed all leadership style, participative, authoritative and delegation the
best or the viable leadership for Amazon would be participate as it involves each members in
decision making process which is a good thought of leaders. Like in this each and every one has
different idea, knowledge, experience and thought related to task or any projects so that leader
will receives so many idea or options in order to compete the task. Along with it, this engages the
employees also in towards their task. And this leadership style will meet paternalistic
management style too. Where both focuses on the employees or staff betterment and provide
guidance or path to perform task in right manner.
Participative leadership style Paternalistic management style
According to this leadership style, the
management team or the leader of team will
consider the viewpoints of their team members
also before devising any decision.
In this the management team will provide
better and positive workforce culture in order
to perform task with full efficiency for gaining
competitive edge.
5. Responsibility, Response and Obligations in Ethics as well as Social Responsibilities in
procedure at Amazon, states with the help of proof.
Each and every business unit follows some obligation, rules and activities in order to
carry out the function of business in effective way. In context of Amazon, some of
responsibilities and ethics are discussed below:
Corporate social responsibility: It mainly depicts about the self-regulations in business
model which aids firm for social accountability to have concerns about stakeholders and public.
It took initiation to balance the programmes of communities (Prajogo and Oke, 2016).The
esteemed stakeholders of the company are very distinct personalities as they highly influence
consumer perception on the goods and services of the company.
CSR activities of amazon:
Consumers: Amazon CSR strategy gives highest priority to consumers as a important
stakeholder groups. In which it considered end users as a primary determinants of their E-
commerce business in successful. Especially, because these stakeholders affects the revenue
generations of company. For instance company uses advanced informations and communicate
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technologies for secure transactions as well as for efficient purchases. This is their responsibility
to considered priority.
Employees: In relevance to selected firm, they values their employees as significant
determinants of company performance and CSR policies along with program. This stakeholder
group is interested in competitive compensation and career development which is their
obligations. Employees of company are very much important as they supports competitive
advantage based organisational culture. It supports main trusts in Amazon' CSR strategy to
considered the interest of this stakeholder group.
Responsibilities:
Better cost saving benefits: Sustainability through business practice that can benefit the
environment as well as company at a lower level. By developing products that are classification
for low energy or low packaging. Amazon takes its packaging as recycling goods which easily
becomes renewable for the betterment of society
Increased employee loyalty: According to CSR, it supports company as well as attract &
retain the effective quality talent. Workforces seek wards only to enhance ethical behaviour and
have optimal values that align within themselves. The firm effectively highlights corporate social
responsibility. Amazon provides additional incentives to workers as well as better recognizing
talent by behaviour based on companies.
Ethics:
Ethical obligation: It describes a number of common job roles and relates to employees
hiring duties in terms of liability in business, balancing a safe and healthy work environment that
primarily serves a healthy and positive environment (Kumar and Pradhan, 2016). Similarly,
Amazon faces enormous conflicts in terms of recruitment and selection, where it is not
appropriate to hire some, it is not the best qualification for an applicant in which the applicant is
a relative to the business owner. Thus, such a relationship brings about obstacles.
6. The ordinal part of the project will includes writing a reflection report on experience in writing
this report.
On the basis of above discussed the term of business environment or during making this
report I have analyzed and gather so many information related with the e-commerce business
background in effective way. As amazon is one the leading brand in online retail industry, and
they uses various kind of leadership style for managing the workforce culture as well as for
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increasing the efficiency of workforce. So I was very enthusiast to explore the workforce culture
of this company. At the same time the analysis of PESTLE and SWOT provides my so much
knowledge and information like what are the threat of this company and what acts as opportunity
for them to enhancing their business success and growth in which the expansion and the
diversification that I found would be the viable opportunity for them. Along with it the Amazon
is very well known and established brand and this given strengthen them to perform better and
gain competitive advantage at marketplace from other players. In addition to this the factors that
can influence the function and activities of this company that I have analyzed are the Brexit and
covid -19. In which the covid -19 offers them an opportunity for promoting their business more
as people prefer more online shopping rather going to anywhere for safety and security. Whereas
the Brexit is not allowed them to trade with EU nations.
Moreover, Amazon is suing participative leadership style and according to me they are
following the right path and right direction for managing their workforce culture. This will
provides several benefits not only employees but also company like employees will get
opportunity to give their suggestion and viewpoints to leaders before devising any strategies and
this motivates & encourage them to perform better as well as give them chance to fell how they
are important for the company and without employees company is nothing. At the end of this
report the Amazon is more focused towards CSR and ethics along with response & obligations
that permits to collects or simulates the outcomes and principles in effective manner. So all these
things that I have experienced from this report.
CONCLUSION
From above discussed report, it has been analyzed that the aim of carrying out PESTLE and
SWOT analysis is to understand or measure the threats and opportunity for the given company as
they are expanding their business at new location of UK. In which some of the strength help
them to reduce the threats and weakness which may not raise uncertainty for them. Amazon,
Company are well known and established this proves that they are using very effective and
excellent leadership style which is perspective leadership theory for managing and performing
task in effective way as it provides systematics way as well as it allows team members too in
decision making process. Additionally, a management style is adopted by them which facilities
more friendly and positive workforce. Different working business environment like CSR which
provides understanding about unethical work regulation is studied.
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REFERNCES
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