Leadership Styles at Amazon

This article discusses the different leadership styles at Amazon and their impact on business growth. It evaluates the strengths and weaknesses of each style and recommends the most suitable leadership style for Amazon's success.

Leadership and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
Main Body.......................................................................................................................................3
Explain the SWOT analysis and PESTEL model in the context of Amazon.............................3
Critically analysis the changes of PESTEL factors which affecting opportunities and threat
and how organisation strength, threat and weaknesses affecting opportunities.........................6
Evaluate the different leadership styles and comment on Amazon leadership style. ................7
Recommendations which leadership style is suitable for amazon and helps to successfully
grow a business...........................................................................................................................9
Examine corporate ethics and social responsibilities which using by organisation. ...............10
REFLECTION .........................................................................................................................11
CONCLUSION ..........................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Leadership and Business environment which refers to using various tools and techniques
in order to smoothly running their business operations. It includes various leadership style which
using organisation which result as achieving organisation goal and objective of company. The
report is about Amazon which are situated in United States. It providing wide range of products
and services to customer (Aldhaheri, 2017). The paper consist is the internal and external factors
which influencing business situations so analysed the PESTEL and SWOT model. It involves
leadership style as well as corporate ethics and social responsibility of company.
Main Body
Explain the SWOT analysis and PESTEL model in the context of Amazon.
SWOT Analysis
This is tool and techniques which utilising most of companies in order to examine their
strength and weaknesses on that basis organisation formulating new strategies which helps to
minimizing the weaknesses and threats of company as well as opportunities helps to gaining
competitive advantages. In relevance of Amazon, it utilised this tools in order to achieving
organisation goal and objective of company.
Strength Weaknesses
 It is one of the biggest online retailer
which providing wide range of
products and services.
 It includes using various pricing
strategies such as cost leadership,
differentiation and focus which helps to
attracting large numbers of customers
(Amayreh, 2020).
 Amazon is gaining competitive
advantage which result as using high
tech technology so easily beat their
competitors.
 It is one of the opportunity to expand
 The biggest weakness of organisation is
using diversification strategy in order
to focusing on retail store of books so it
is good strategy but organisation not
using this as core competency &
loosing strategic advantages.
 Organisation providing online booking
of products and services as well as free
shipping so it losing their margin and
affect the profitability.
 It is difficulty face to expansion of
business in order to single online

their business operations and increasing
large numbers of customers.
 It involves using effective distribution
and network system which easily
reached products and services to
customers.
retailer so emerging new market.
 Amazon is zero business model which
includes they operational cost
increasing but they cannot managing
their profitability properly.
Opportunities Threats
 It is one of the opportunity for E-
commerce company which accepting
online payment mode so most of
customers using because it is flexible
process and current scenario most of
individuals like online shopping.
 It providing various products and
service under its own brand name so
easily attractive large numbers of
customers.
 It expand their business operations so
organisation enhancing their product
portfolio in order to various offering for
customers.
 Amazon using global footprint and
easily access on different sites so
gaining competitive advantages.

 The biggest threat for an organisation
most of people cannot like online
shopping and security issue.
 Another weaknesses for organisation
using aggressive pricing strategy so
other competitor law suit against their
pricing and policy (Anderson, 2017).
 Amazon faces cut throat competition at
marketplace which affect their
productivity and profitability of
company.
PESTEL is frame work which helps to analysed the external environment in order to
prepared their strategies which result as gaining competitive advantages as well as enhancing
profitability and productivity of company (Christoffels, 2019). There are ample numbers factors
are included which are discussed below.

Political-: This is the most important factor which included government policy, rules and
regulation. It includes government imposed various rules and condition in order to organisation
adhered to follow such rules and conditions. The political condition of United states is strong
and stable so Amazon smoothly run their business operations. It followed government rules and
condition so easily expand their business in another country.
Economical-: It considered various factors which refers to inflation rate, interest rate, tax
rate and many other. The economic condition of United States is strong and stable so
organisation easily established their business (Ciulla, 2020). In relevance of organisation, it is
one of the leading retailer which easily managing demand and supply at marketplace.
Social-: This is third element of PESTEL model where it is beliefs, values, religion,
culture and attitude towards the product and services. In context of company, it conducting
research in order to know about customer taste, preferences and market trend on that basis
produce products and services which helps to enhancing profitability and productivity of
company.
Technological-: This is one of the leading information technology so easily using
advanced technology and serves the best services for customers. It utilised social media platform
in order to promotes the products and services as well as online services providing to customers.
It helps to increasing profitability of company and easily reached the products to customers.
Environmental-: Business model survive at longer period of time on the basis of using
eco-friendly products and services. Most of organisation utilising such tools and techniques
which cannot harmful for the environment. In relevance of Amazon, it utilised recycling,
biodegradable products and services which increasing sustainability of business.
Legal-: It includes various factors such as employment contract, wages act, labour law
act and legislation and many others (Çora, 2016). It involves various legislation so organisation
followed this laws and accordingly developing their policies. In reference of organisation, it
includes organisation adhered to follow such rules in order to easily expand their business
activity.
Therefore, it includes SWOT and PESTEL framework which helps to identifying
opportunities in order to enhancing profitability and productivity of company.

Critically analysis the changes of PESTEL factors which affecting opportunities and threat and
how organisation strength, threat and weaknesses affecting opportunities.
Organisation effectively using PESTEL factors in order to influencing business
profitability and productivity so essential to analysed and according planned the strategies. It
includes there are various factors which affecting opportunities and threats so which are
mentioned below.
 Political factors refers to those which government imposed such rules and regulation so
organisation adhered to follow so it is opportunity for company in order to they easily run
their business because policy are favourable which helps to enhancing business
profitability and productivity of company. Apart of that, the US political condition is not
good and stable so it becomes threats for company.
 Economical factors is important for organisation so US economic condition are good so it
is opportunity for Amazon they easily expand their business and gaining competitive
advantages (Farhan, 2018). On the other hand, it includes increasing tax rate so it
becomes threat for company due to paying high excise duty and affecting profitability of
company.
 Technological factors plays vital role because Amazon is IT company so using advanced
technology which result as opportunity for company in order to developing their brand
image at marketplace. Apart of that, it involves technology changes very fast and
government make unfavourable policy so it is threat for company because affecting their
business activity.
 Social factor include Amazon conducting market research in order to know the market
situation and condition on that basis serves to large numbers of customers so it is
opportunity developing brand image in the mind of customers. On the other hand,
customer taste and preferences are change so it is threat because affecting brand image
due to not fulfilled the needs and wants of customers (Ledbette, 2016).
 Environmental factors refers to business sustainability depends on this factor so Amazon
using techniques which producing eco-friendly products so it is opportunity for company
due to survive in the market for longer period of time. Apart of that, it considers as
organisation changes their policy and not using recycling products and wastage of

disposal so it is harmful for their brand image as well as losing their position at
marketplace.
 Legality is essential factors which refers to various laws and legislation so Amazon
analysed this factor and adhered to follow them so it is opportunity because easily
expand their business operations. On the other hand, organisation not considered such
laws so difficult to operate the business and becomes threat for company.
Amazon biggest strength refers to it is IT company so adapting advanced technology
which helps to minimizing threat for company in order to there are ample numbers of
competitors are available at market place because using technology so gaining competitive
advantages in the market and developing brand image as well as enhancing profitability and
productivity of company (Megheirkouni, 2016). On the other hand, it including various
weakness of company in order to biggest weakness is online serves to customer so there are
biggest challenges is security issue on that basis most o customer not prefer to purchase products
online so affecting opportunity because they cannot serves large numbers of customers and not
satisfy the needs and wants of customers.
Evaluate the different leadership styles and comment on Amazon leadership style.
Leadership is defined as the ability of the management within a company to accomplish
various objectives make vital decisions and motivate others to reach their highest potential in
order to maximise businesses growth. Organisations use various leadership styles to effectively
enhance the productivity of the enterprise. Details of several leadership styles in context of the
American online retailer firm Amazon are provided below:
Authoritarian leadership style: This style of leadership focuses on giving complete
control of leadership to one person. This type of leadership style is not concerned with receiving
inputs from the members of the team. This time of leadership style is time effective as it
eliminates the time consuming process of sharing employee viewpoints. The commanding
structure is clearly visible to all the members of a team (Prajogo, 2016). This leadership style
often results in unsatisfied employees and conflicts between the management and workers. The
restrictive nature of this leadership style destroys scope for creative solutions as it limits
opinions of the team members.

Democratic leadership: This leadership style is centred around the basic concept of
maximum employee involvement. This type of leadership style is opposite of authoritarian
leadership style in the sense that it encourages employees to come forward with their viewpoints
and values everyone's opinion equally. As the employees feel valued in this leadership style,
they work diligently and engage with the management regularly. This increases employee
productivity and enhances firm's performance.
Transactional leadership style: This type of leadership style concentrates on improving
productivity of the workplace by giving employees rewards for their work. A clear relationship
is emphasised between employees and their output (Sarkar, 2016). This type of leadership
encourages employees to complete their work in the most efficient manner so they receive
benefits from their leaders. One of the drawbacks from this leadership style is the leading
qualities are not transferred to the employees rather herd mentality is generated among
employees.
Transformational leadership style: This leadership style's most important element is the
presence of a mental imagery for the future of the organisation. A transformational leader uses
their goals and dreams for the enterprise to motivate and encourage the employees. The leader
aims to continuously transform develop their employees all the while securing stable growth for
their company. This leadership style is adapted by those organisations which aim to continuously
grow and expand the responsibilities of their employees.
Leadership style used by business tycoon Jeff Bezoz to run online retail giant Amazon is
transformational leadership style. This style has helped the company overcome various
drawbacks and improved the overall productivity of the company (Sengupta, 2019). The
management of the company contentiously inspire their employees to share their opinions and
engage in unfiltered debates with their employees to remove any imperfection and provide the
company employees with impeccable skills. The company values truthful employees and
involves their inputs even if they are outspoken about any negative aspects of the workplace.
The organisation includes such inputs from their workers into decision making process.

Recommendations which leadership style is suitable for amazon and helps to successfully grow a
business.
Amazon owner and business tycoon Jeff Bezoz is using transformational leadership style
in order to easily managing business activity and smoothly run their business operations because
it helps to successfully established E-commerce business model at marketplace. Jeff Bezoz is
iconic personality because they are ability & capability to reduces the drawback of company.
There are various numbers of others leadership style which essential to using Amazon in order to
enhancing profitability and productivity of company so follows.
First recommendation is organisation using authoritarian leadership style which helps to
grow the business and gaining competitive advantages (Thomas, 2020). This style refers to
centralised decision making system in order to team members view and opinion are not consider
and all the major decision taking by top management so it is less time consuming process which
helps to decreasing confusion and conflict between the employees.
Second leadership style is democratic leadership which is opposite from autocratic
leadership because it high involvement of employees and consider the team members ideas,
view and opinion which result as effective and efficient decision making process. Most of
organisation using this system because employees valuable asset of company so encouraging and
motivating employees due to increasing profitability and productivity of company.
Third leadership style most important transactional leadership style which refers to
improving performance of employees as well organisation. It includes employees performed
well so accordingly providing reward and effectively established reward system which result as
enhancing productivity of company (Wajdi, 2017). It is way to encouraging and motivating
employees which refers to employees accomplishing their work within the specific time frame.
Further recommendation is organisation using hierarchical organisation structure which
including information flow from top to bottom and vice versa. It includes subordinates reporting
mangers and employees faces any problem so informed to mangers in order to smoothly
conducting business activity. It involves smoothly communication flow which result as
elimination confusion, conflicts and smoothly run their business activity.
Examine corporate ethics and social responsibilities which using by organisation.
Amazon is one of the leading E-commerce company which providing safe, secured,
healthy and hygiene working environment to its employees. It is conducting business on the

basis of corporate ethics and also performed the various social corporate responsibility.
Employees and customer both are important for company so they plays vital role in order to
fulfilled the corporate social responsibility which are mentioned below.
Amazon supporting local communities-: On that basis organisation supporting that
business model which are affecting COVID-19 because it is pandemic situation and most of
business unit are shut down so they supporting service partners as well as Amazon's device
donation programme which refers to donate electronic device and gift cards to schools (Walker,
2018).
Educating and empowering workers-: Organisation started Amazon career choice
programme which including providing tuition for employees in order to various education
programmes such as air plane mechanic, nursing, other skills. It includes providing Amazon's
customer service employees at work from home and encouraging workers towards the work.
Providing healthy and safety environment-: After pandemic situations COVID-19 providing
healthy, hygienic and safety environment in order to effectively perform and most of employees
continuing their work from home.
Gender equality and minorities-: It involves organisation working for minorities in order
to initiative to corporate social responsibility which refers to 10 affinity groups in the
organisation and known as employees resource group. It consider as providing chance to female
under the organisation launched business for social responsibility HER project which attracting
large numbers of women.
Energy consumption programme-: Amazon is IT company which dealing in cloud
computing so huge amount investing in wind and solar energy which helps to smoothly run their
business operations (Farhan, 2018). It includes main purpose of company using renewable
energy and investing in solar system.
Therefore, Amazon plays vital role in order to effectively and efficiently work for the
society as well as conducting various programmes under corporate social responsibility. It
includes corporate ethical practices which code of conduct is followed by company.
REFLECTION
I feel on this research report and case study about the Amazon which refers to it is one of
the famous brand and developing good brand image in the mind of customer. CEO of company
Jess Bezoz is a using great leadership and management style. He is great and iconic personality

for each and everyone. They face lot of challenges and hurdles but accepting and move forward
so it is successfully establishing business model. He starting with small retail online book store
and they faces lot of challenges and failures but after that dedicated and honest towards the work
so becomes successfully and grow organisation. I have learn various thing from his life such as
skills, ability, capability. Knowledge and various leadership style in order to help in career
development as well as successfully achieving career goal (Ledbette, 2016). The organisation
dealing in various aspect such as cloud computing technology, grocery business and many
others. There are ample numbers of competitors present at marketplace due to using various
tools and techniques in order to easily analysed the environment as well as developing new
strategies. I am learn various thing with the help of this report and helps to enhancing various
skill such as critical and practical thinking as well as conducting proper research on that basis
providing adequate facts and figures. I have done various research and then preparing this report
in order to learn about Jess Bezoz life and career. It consider has I learn about the
transformational leadership style which utilising by Jess Bezoz in order to motivating and
encouraging their team members and conducting smoothly run their business operation. I am
also conducting research about the various tools and techniques which Amazon utilisation in
order to enhancing their profitability and productivity of company. They utilising various
management style so this helps to increasing performance of company (Thomas, 2020). I have
learnt this style and adapting effectively in order to easily achieving career goal and objective as
well as various measure helps to move forward in career and accordingly developing my
scheduled and strategies for the development of career and achieving success in life.
CONCLUSION
From the above report it has been concluded that, it includes the various tools and
techniques which utilising by company helps to analysed the external and internal environment
such as PESTEL and SWOT model. It involves Amazon using this model because it easily
examine the market condition and accordingly developing new strategies in order to enhancing
profitability and productivity of company. On that basis organisation critically analysed the
PESTEL factors as well as various leadership and management style. It involves
recommendation and organisation participated in CSR activity.

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