Leadership and the Business Environment

This document explores the impact of leadership on the business environment, with a focus on Amazon. It includes a PESTEL and SWOT analysis of Amazon, compares different leadership styles, recommends a suitable leadership style for Amazon, and discusses the company's ethical responsibilities. The document provides valuable insights into the subject and is relevant for students studying business and management.

Leadership and
the business
environment

Table of Contents
Introduction ......................................................................................................................................3
1. PESTEL and SWOT analysis of Amazon ..........................................................................................3
2. Amazon PESTEL factors in relation with Opportunities and threats ..............................................6
3. Compare and contrast different style of leadership. Current leadership which have been
adopted by the Amazon.....................................................................................................................7
4. Recommend a suitable leadership style that will match their management style and help
Amazon grow further. Justify your choice using appropriate literature. ..........................................7
5. Comment on the Responsibility, Response and Obligations in their Ethics and Social
Responsibilities in the processes at Amazon using evidence from your research.............................8
6. Reflection ......................................................................................................................................8
Conclusion.......................................................................................................................................10

Introduction
Amazon is one of the American based e-commerce industry which has its headquartered in
Washington and it has been found in 1994. The discussion includes PESTEL and SWOT
analysis of Amazon (Carvalho and et. al., 2020). The PESTEL factors in relation with the
opportunities and threats. Compare and contrast different type of leadership and the
leadership style which have been adopted by the Amazon. In addition to this, a suitable
leadership style which have been adopted by the organization Amazon. The responsibilities,
response and obligations adopted by the organisation and at last, reflection based on an
individual research on AMAZON.
1. PESTEL and SWOT analysis of Amazon
Amazon is one of the American multinational companies that have its headquartered in
Sweden, Washington. It has a major focus in e-commerce, cloud computing and the artificial
intelligence. It is seems out to be as one of the major company in the IT sector as well. The
company has been referred as one of the most influential cultural force and economic
valuable brand in all over the world. The founder of the Amazon is Jeff Bezos and it has been
founded in July 5, 1994. The company is one of the online market place which has been
expanded the sale of electronic gadgets, video games, software, food, toys, Jewellery and
many others. Amazon prime have been majorly surpassed as a 100 million dollar subscriber
in world wide. At the time of Covid 19, Amazon is one of the company which has been rated
as one of the most valuable and trillion dollar company in all over the world. The PESTEL
and SWOT analysis has been mentioned below
PESTEL analysis
Amazon performance relates to the several issues that shows the PESTEL analysis of the
business and its macro environment factors. The analysis model is seems out to be the
strategic management tool for identification of some valuable and effective external factors
including political, Economic, social, technological, environmental and legal. The market or
segments have been effective seems out to be the largest players in the global market for the
technologies in information and some effective and related online services, company enjoy
some effective and valuable benefits to reach at the highest market place, high capitalization
and high effective popularity. Maintaining of the resilience and the competence in addressing
the challenges can be able to fulfilling the corporate mission and the vision statements.

Political factors
It refers to the government activity or the government intervention which ca easily effects the
businesses and remote the macro environment factors. In the case of Amazon, some political
factors which can affect the development of the company are the political stability, the
support of the government and the increasing efforts on the opportunity of cyber security.
Political stability simply helps the Amazon company’s in creating such opportunity that can
develop or expand the business in the developed countries. The same external factors simply
threatens the company because of the rising competition such that involving the retail firms
that are able to expand the operations. The aspect of the PESTEL analysis of the Amazon
show some major opportunities on the basis of company exploitation which helps in
increasing the information technological services and the e-commerce industry.
Economic factors
The performance depends on the economies in which the operation is simply based on the
online and the non-online services. The economic trends are majorly included in the PESTEL
analysis model. Economic stability, increasing the disposable incomes, the economic
recession are all included in the economic external factors. The economic stability helps in
increasing of the economic issue which can simply access the remote of the analysis model
and minimizing the rise of the economic issue in the remote scale on the online business
expansion. The growth opportunities, gives a major external analysis on the factor.
Social factor
The conditions of the social determinants are all included in the social factors which can
simply affect the organization. The socio trends or the performance of the company gives a
major information technology and the leading services.
Technological factors
Some technological factors which can simply affected the amazon organization includes
rapid technological behavior, increasing in the efficiencies and the increase in rate of
cybercrimes are some of the major factor which have been included in the technological
factors of Amazon (Tejads and et. al., 2020).
Environmental factors

Amazon refers to the online business of the natural environment. The company’s support on
ecological factors relates with the ecological changes as well. The rising interest in the
environmental factor is one of the most effective factors. Apart from it, increasing of the
popularity and business sustainability are all included in the improvement of the Amazon. For
example, higher sustainability standards can further improve environmental impact and
strengthen the brand image of the e-commerce organization, based on the business strengths
identified in the SWOT Analysis of Amazon.com Inc. Furthermore, the increasing popularity
of low-carbon lifestyles provides opportunities for the company to boost its corporate image
as a leader in the e-commerce industry. The company could implement extensive energy-
saving policies in its operations for this purpose. This aspect of the PESTEL/PESTLE
analysis of Amazon shows the significance of a comprehensive corporate social
responsibility strategy to increase the company’s competence in addressing the ecological
concerns its remote or macro-environment.
Legal factors
The rise in the product regulation, change in the import and rise in the environmental
protection are all included in the legal factors that affected the organisation. Amazon can
simply expand the ability of sellers to access the overseas of the suppliers. Amazon can
expand its global operations to exploit the increasing ability of sellers to access overseas
suppliers. Moreover, the e-commerce company has opportunities to strengthen its brand
image through appropriate corporate social responsibility policies that address rising
environmental protection regulations. Such effort can increase business competitiveness in
the remote or macro-environment. Based on this aspect of the PESTEL/PESTLE analysis
model, Amazon can ensure long-term e-commerce success through regulatory compliance.
SWOT analysis on Amazon
Strengths
 Strong brand name which attract the consumers in number of ways including sales
and productions (Maretto and et. al., 2020).
 In 2019, the brand value of the Amazon is worth in billion (Tejads and et. al., 2020).
 Amazon simply gives the customer oriented services
Weaknesses

 Sometimes the products of Amazon are fail to attract the customers
 In few areas including India, Amazon faced several losses in their products and the
profits.
 Tax avoidance gives negativity in some areas including UK, US and the Japan.
Opportunities
 Physical or offline stores needs to be expanded so that there is a need to have an
improve in the competitiveness increase in future.
 There is a need to improve their technical measure and the policies that can simply
able to reduce the counterfeit sales.
 There is a need to have some more backward integration on the basis of expanding the
production in the house brands including Amazon basics to differentiate the offerings
and improving of the profit margins.
Threats
 Government regulations can simply threaten the proceedings n business in some
critical countries including Cuba, Iran and Syria.
 The cybercrime can increase simply affect the network security system.
2. Amazon PESTEL factors in relation with Opportunities and threats
Opportunities Threats
Political factors Political stability in
developed countries
The support of the politicians
Economic factors Developing countries have an
ability of increasing
disposable income based on
Amazon
Economic recession based on
China
Social factors Wealth disparity Online buying habits
Technological factors Increasing efficiency in the
IT resources
Cybercrimes
Environmental factors Business sustainability Environmental policies made
by the government
Legal factors Change in the imports and
exports
Environment protection

In above section internal and external analysis is carried out in context of amazon, so
some favorable and unfavorable outcomes are obtained. With PESTLE analysis it has been
found that economical & political factors affects more due to Brexit. This is because
declination in revenue generation and that acts as threat of company also. Opportunity that is
driven from social factor at same time could be increment in productivity and profitability
after covid-19 as after this consumers prefer more online shopping instead of offline.
Additionally, a SWOT analysis is carried out for determining strength, weakness,
threat and opportunity. In which biggest strength of Amazon is they have largest E-
commerce technological business for online services. They have high market shares.
Opportunity for them is by adopting all policies of government related to importing and
exporting in order to increase sales and profit margin of company at international level. This
will acts as threat for other companies.
3. Compare and contrast several style of leadership & Current leadership which have
been adopted by the Amazon
Autocratic style: some major decisions have been adopted and taken by the leader. There is
no input of other employees in any of the major decision taken by the autocratic leader. It
simply reflected out to be the command and control approach.
Authoritative style: The confident leaders who know more and have a greater knowledge of
their work are come under this leadership. In this type of the leadership style, the leaders can
be able to give authority of speaking and decision making process to others as well.
Pacesetting style: This type of leadership is simply and quiet effective in getting of the
things done at the right time and at the right place. But in this type of leadership style,
employees were getting more stressed and leadership works under the long run.
Democratic style: In the democratic leadership, information with the employees affects the
work responsibilities. Increasing trust, spirit cooperation can simply help team and employees
in the democratic type of leadership style.
Laissez faire style: It is a type of style which is quiet opposite with the autocratic leadership.
This type of the leadership quality suggest that there is a need to have a people let do on the
basis of their choices and in their suitable time period.

From all the mentioned leadership style, the adopted leadership style by Amazon is laissez
faire leadership quality and authoritative style. On the basis of increasing more and more
productivity and profit, there is a need to have authoritative style. The founder of the
company simply suggests that there is a need to have a employees attraction and their ability
to work in the organization.
4. Suggest a suitable leadership style that will meet their management style and aid in
Amazon growth further. Justify with appropriate literature.
A management style that has been adopted by the Amazon is Pragmatist style. Pragmatist
leaders can be able to high standards and unapologetically expect those standards to be met
by themselves and by their employees. The company founded and the CEO of the company
Jeff Bezos is an exceptional and proven the business leader. Several principles which have
been found including consumer obsession, ownership, invent and simplification, think big
and many others. Transformational leadership style is one of the most popular leadership
style is one of the popular leadership style whose CEO is quiet powerful, named as Jeff
Bezos leading the Amazon to reach at the high pace. The transformational leadership style
includes as one of the committed relationship between the followers and the leaders. It simply
gives an ability to transform their skills and knowledge to others so that the other team
members also able to work with the best of their ability. The effectiveness of the
transformational leader can simply refers to an ability in creating big and shifts in the
behaviour that can simply motivates the people in achieving the bigger and the extraordinary
results. There are some good and effective qualities of the transformational leader including
confidence, motivation, sense and purpose so that leader can be able to convey their tagets to
articular and reflect the future phase.
5. Responsibility, Response and Obligations in Ethics along with Social Responsibilities
in the processes at Amazon with proof.
Responsibility: Amazon simply able to satisfy the stakeholders in supporting of the organizational
growth in reference with the e-commerce industry. In case of Amazon, the stakeholders have varying
interests, and the global reach in an organisation. The conditions require some major and the
favourable broad scope for the company’s corporate social responsibility that gives strategies,
programs and the policies. Amazon maintains the corporate social responsibility to target the interest
of main stakeholders and the groups. The corporate social responsibility target various stakeholders
including customers, employees and the communities (Nascimento and et. al., 2020).

Response: Responses refers to consumer understanding, effective application and major surveillances
of the consumers in achieving some effective and the measurable targets. The technology must be
extra effectible so that there must be proper maintenance and efficient work structure.
Obligations: Obligations refers to the course of action that someone can be able to required and take
legally and morally. It is very important in an organization because it is simply a part of it. People or
employees who are under the obligations may able to choose and freely act under the obligations as
well. Obligations can simply vary to person and person. The Amazon company includes employers on
the basis of important labour statues which have been systematically arranged on the basis of every
act. Even a layman an find out some appropriate and obligations at the glance. The penalties are also
enumerated to enable the employers on the basis of avoiding the violations.
CSR actvities of Amazon:
Consumers: Amazon CSR activuties gives highest prioprity to consumers as an important stakeholder.
It has been considered that consumers are the main sources of earning for company as well as primary
determinant of their E-commerce business for the growth and success as theses are the sources of
revenue generation.. for example company uses advance and updated information in order to secure
transactions and efficient purchases. This is the responsibilities of enties of company as considered the
main priority.
Employees: in context of chosen firm, they values for employees are address as important determinant
in order to analyse the performance of company along with CSR policies with programs. These
stakeholder are more emphasis in offering career development and competitive advantages as their
authority. It has been found that these are the most significant factor for gaining competitive
advantages based on culture of company. It assist in amazon CSR activity to address the interest of
stakeholders group.
6. Reflection
According to me, I personally believed that Amazon is one of mine favourite e-commerce company
and the reason behind that is the popularity of the company. The products I had buy from Amazon are
seems out to be the best and very effective because of his service quality. At today, Amazon prime
has been substantially making out the best of it in terms of well and effective knowledge of the
consumers. I could have never imagined Amazon will become the first most favourable e-commerce
company in the world. On the basis of my research the only think that makes me feel to consume my
time on effective and understanding on Amazon is to understand the leadership style which should be
used by the Amazon on the basis of policies and procedures adopted by the organisation (Watson,
2019).

Also the leadership style should be transformational leadership because I believe that for every
business and the organisation there is a need to have a team work and if a person knows several things
then there must be an ability and effective procedure to transform the skills of single person to
another. My personal opinion will never understand about the autocratic leadership once adopted by
the Amazon. It was so difficult to even have a growth of product but thank fully they have been
changed the ideology and principles based on the organisation. Apart from it, I personally believed
that Amazon should have a great amount of access in some good and effective places including Cuba
and many others to reach at the higher place. The company’s opportunity is simply brings the best of
it and Amazon can be able to achieve the best growth in the future (Varella and et. al., 2019).
from above written report i have analysed and gather so information related with E-commerce
business background in effective manner. Amazon is one of the leading brand in online retail industry
and that uses various leadership styles in order to provide effective guidance to employees so that they
will increases the operational efficiency at workplace. So i was very enthusiast to explore the culture
of this company. Additionally, PESTLE and SWOT analysis improves my skills and knowledge
related with the Amazon company. So before opening or expansing business it is vital to analyse the
business environment for smooth running of business. In addition to this I have assessed that there are
two main factor which affects the business operation of company more while operating business
activity at UK and EU nation. Also Brexit is not allowed to trade them with EU nations.
Besides that amazon is using participate leadership and according to me that they are following right
path and right direction in order to gain success and development by managing culture of workforce
& this offers various benefits to not only employees but also company.

Conclusion
The following discussion is based on Amazon research. PESTEL and SWOT analysis has
been done to analyses the external and internal factors. Different types of leadership style
have been mentioned above from which laissez faire and autocratic leadership is adopted by
the Amazon. The company should start using transformational leadership because of
matching the pragmatist leadership style. In addition to this, responsibilities, response and
obligations based on ethical principles of Amazon also mentioned above. At last the
discussion includes reflection based on the research and it has been mentioned above.

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