Leadership and Business Environment

This document discusses the impact of leadership styles and the business environment on organizations. It covers topics such as SWOT and PESTEL analysis, different types of leadership styles, and the responsibilities and obligations in ethics and social responsibilities. The case study focuses on Amazon, a multinational e-commerce company.

Leadership and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Identifying the SWOT and PESTEL analysis of organisation.....................................................1
Determining the impact of changes on PESTEL factors.............................................................3
Types of Leadership style ...........................................................................................................4
Evaluation of suitable Leadership style.......................................................................................6
Responsibility, response along with obligations in Ethics and Social Responsibilities .............6
Reflection report .........................................................................................................................8
CONCLUSIONS..............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Leadership is concern with skills and quality that an individual possess in organisation or
any enterprises to lead the people effectively and handle them and influence them to work and to
motivate them (Arain and et.al., 2017). Business environment include all internal and external
factors such as employees, customers needs, suppliers and technology etc. In this report Amazon
is taken where it is American multinational company based in Seattle, Washington that deals in
e-commerce, cloud computing and artificial intelligence. Present report studied the dynamic and
changing nature and identify the needs and how micro and macro factors impact the business of
organisation. Apart from that different Leadership style and current style prevails in management
of company and discussed ethics and social responsibilities in company.
MAIN BODY
Identifying the SWOT and PESTEL analysis of organisation
In order to identifying the dynamic and changing environment of business organisation, it
is essential to analyse the certain strategies and used tools such as PESTEL analysis and SWOT
analysis to determine the internal and external environment of company.
PESTEL analysis refers to strategic tool that used to identifying the external factors like
political, economical, social and technological that helps in understanding of macro environment
of organisation (Becker, 2018). Amazon use this tool to identifying the most significant
opportunities and threats and reveals the importance to operations expansion and to compete in
market with full efficiency.
 Political factors- This refers to tax rate and political stability that focuses on government
activity impact the business organisation and their remote environment. Amazon is
working in developed countries like USA and other European countries and creates an
opportunities for company to diversify its business and expand its operation in other
countries. As amazon is well know organisation that will not impact the function and
working of company.
 Economical factors- This include the inflation rate, money and supply, interest rate and
employment condition of country. For the company Amazon, the situation of economies
directly impact the organisation as, company is operating in larger level where increasing
in disposable income in developing countries will give opportunities to them to perform
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in better way. Like china is big and operating market where company hopes in increasing
rate that will be useful for company.
 Social Factors- This refers to behaviour, taste and preferences of costumer in countries
and their standard of living that influence the business of company (Dima and Ghinea,
2016). In Amazon, this factor is most important to consider as comply is providing goods
and services online and according to their choices and habits. As in many countries
costumer were now start online purchasing that will be opportunities and good news for
company.
 Technological factors- This concern with technologies related trends and factor that
impact the organisation. Amazon is largest e-commerce company in world and enjoy the
larger operations that facilitates to invest in development of technological assets. Rapid
change of technology in environment will create the difficulty for company, so it is
important to emphasize in continuous improvement.
 Environmental factor- This concern with increasing in awareness of environmental
friendly business process and adopt the practices that influence the natural environment.
Amazon is improving its environmental impact and developing the interest in
environmental programs and misgiving the waste and energy consumptions.
 Legal factors- It include legal law, rules and practices and existing legal requirement that
impact the behaviour of company (Han, Wang and Yan, 2019). For amazon its
opportunities that it could expand its business in other countries through export as there is
positive changes in export regulations and policies.
SWOT analysis is identifying the internal factors such as strength and opportunities and external
factors like opportunities and threats. Amazon is also used this tools to determine its business
functions and operations.
Strength Weakness
 Company is enjoying brand value
across the world and counted in top five
company in US. So, this is advantages
where it strengthen its operations
 As company offers free shipping to its
customers, it will become quite difficult
to hold the margin at optimized level.
 The upcoming weakness is that
company is operating zero margin in
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strategies.
 It gains the costumer trust and belief
where all costumer generally prefer to
make purchase from this site
 Having superior distribution and
logistics system from other rivals.
business model as excessive offering of
many discounts and coupons and
generating more expenses.
Opportunities Threats
 Due to increasing of costumer habits of
online purchase and demand. This will
be opportunity for company to take
advantages of this.
 Everything is now being online and
digitalised, so it become useful for
company to grab this advantages and
increase its operational scale more.
 As, increasing in number of online theft
and danger in company will create
problem and also could lead to
consumer data in danger.
 There are many online local and
international retailer are giving tough
competition to company and this might
lead to losing the position in market.
Determining the impact of changes on PESTEL factors
PESTLE contains some factor that influence the environmental condition of business
organisation. To maintaining the proper functions and operational strategies, firm could identify
to what extent they are strength and weakness of organisation.
In Economical factors might give opportunities and threats for business in certain manner
such as Amazon is largest e-commerce company and its functions and activities are mostly
depends on working conditions of country like inflation rate, interest rate. It is opportunity for
company because of economical stability in developed countries and increasing in disposable
incomes in other developing nations (Iordanoglou, 2018). The threat could be potential economic
recession in China as it will create the problems in operational performance and activities on
large basis.
Social factor is major determinant that impact the company at bigger level as company is
concern with costumer driven as increasing in the habits of online purchasing among countries
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and consumerism is big opportunity for company. Also some people do resist in offline
purchasing due to improving in theft danger and other online problems. Enhancing in the wealth
disparity in developing and developed nation that will be upcoming threat that company must
consider.
Technological factors is also important factor that might create the big impact on
organisation and this needs to be taken into consideration as rapid technological obsolescence is
threat for company and at same time opportunities to grab it as fast as possible (Kane and et.al.,
2019). Other than that increasing in efficiency in resources of IT Sector bringing up new
opportunities and developing rates of cybercrime is also big threat for company as this could put
it danger zone for both business and costumer.
Companies has some strength that could help in avoiding threats and weaknesses and
affecting their opportunities in such a way like Amazon is successful in building trust that helps
in reducing the threat of online theft and fear of making purchase online. This could affect the
opportunities by increasing in the habits of consumer and being everything online and ensuring
the trust and belief in costumer will help the organisation to grow more in market. Another
important strength is big brand name in market that will help in reducing the making efficient
profit in organisation and handling major operational issues that are being faced by company.
This will also leads to affect the opportunities in positive manner as increasing in the
engagement on online and upcoming trend will help to cope up with certain issues.
Types of Leadership style
There are certain style that exist in corporate world and that depends on leader that what
it chooses according to the situations and type of organisation in which they are working
(Kramer, Page and Klemic, 2019). It greatly influence the work culture and environment in
which they perform their leadership style. Some of leadership style are as follows-
 Transactional Leadership- It basically concern with typical transaction like If you give
me this, I will do this in return. They praise them if employees has done good work and If
not will they it can impose some penalties or punishment, so this is kind of directive
leadership where they put instruction on team leader and bound with rigid guild lines.
 Transformational Leadership- They ask to transformation and seek for change in group
and inspire employees to innovate and creative ideas.
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 Servant Leadership- It has motto of helping other rather lead group by channelising the
majority of their energy into finding ways to motivate and prioritize needs of other
people.
 Democratic leadership- It actively participate in decision process of company and allow
employees to take come up with their ideas and it also encourage in contribution of
decision making.
 Autocratic Leadership- It is opposite of democratic style and where they thinks that
they are superior and holds majority power of decision making in organisation and does
not give importance to needs of individual. It make the employees ignorant and feel
demotivated because of the nature of leaders.
 Bureaucratic Leadership- They follow certain rules and responsibilities that mentioned
in books as they believe in hierarchy authority (Kunnanatt, 2016). This refers to power
comes from formal position rather than focusing on characteristics that they have.
 Laissez-Faire Leadership- It's French translation is “Leave it be” which shows that
leader does not actively involve in activities of company and leave it on its team workers
to do their work all alone. It provides necessary resources to its team member but let
them to accomplish the task and taking everything on hands.
 Charismatic Leadership- This refers to attractive personality and charismatic quality in
leader that able to influence through their behaviour and communication skills. They
inspire every person to whom they interact and employees were wants to be like them.
As there are many leadership style in corporate environment in which some of the styles are
become popular due to success they achieve in organisation. So, in Amazon leadership style and
management style is followed is Transformational Leadership style through which Jeff Bezos is
leading to new heights of success and remarkable work done by him. It has been observed that
leader has successfully followed this style as this is style involves a committed relationship
between leaders and followers (Miftari, 2018). This style is task-oriented and always gives
priority to its work and its main aim is to accomplish that to achieve the desired task. Many times
they were criticised by putting burden and pressure on them through expecting to work for 60
hours a week, but that was happened to contribute in growth of company in initial stage. Jeff
Bezos has the ability to recognize the opportunities and observe threats that helps in taking
advantages and face resilient challenges. To keep the company at top position and maintaining
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that reputation need dedication and lots of handwork in leader and proper leadership qualities to
overcome the managerial and operational problems in organisation. This leadership style is
concerned with giving the instruction to them and giving them rewards when they able achieve
the objectives, they believe in long term goals and has strong vision for its company (Palalić and
et.al., 2019). This emphasising on goals and direct the employees for the same and they were
quite strict towards objectives and believe in take decision for the betterment for whole
organisation.
Evaluation of suitable Leadership style
Leadership style is some thing which become quite popular as it define overall
environment and working conditions of organisation that will be helpful in achieving growth and
success. The Leadership style that is recommended is Democratic Leadership style as this allow
the employees to take participate in decision making process and make them feel motivated and
confident (Fiaz, Su and Saqib, 2017). This will help in future growth as increasing in the number
of many employees participation in every organisation and they would able to give suggestion in
any problem and provide better decision making. As, they are working in ground level and
regular interaction with costumer will help in providing better and valuable solution that could
company apply in their management.
Responsibility, response along with obligations in Ethics and Social Responsibilities
Ethics and Social Responsibility are management concepts through which businesses
integrates social as well as environmental concerns in operations, process and interactions with
stakeholders. All organisations have responsibilities and obligations that are executed in their
business processes. In case with Amazon, various processes including production, operations,
warehousing and so on are carried out by the enterprise in ethical manner (Paudel, 2019). The
entity maintains its corporate social responsibility programs in all processes so to improvise
efforts for the purpose of satisfying changing interests addition to expectations of all
stakeholders. Moreover, the business have responsibility for providing quality and safe
commodities as well as contribute proportion of revenues in development of society through its
processes. The e-commerce retailer is also responsible for carrying out all practices for
maintaining corporate social responsibility initiatives for giving highest priority to society. In the
process to address expectations of stakeholders, it is prime responsibility of Amazon is to
maintain relationships addition to understand their requirements. While connecting and
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interacting with clients, employees and other, it is role of Amazon to generate confidence among
business and stakeholder so to overcome barriers. Basing the relationship on values including
honesty, confidence and transparency is key for company to make processes a socially
responsible so to earn more and develop society. Moreover, there are multiple ways for an
organisation to perform responsibilities in social projects ethically. Amazon have developed a
widget that permits to donate small proportion of money in particular projects to meet social
responsibility.
Top priority of Amazon is to ensure health as well as safety of employees in business
processes (Paulienė, 2017). In the pandemic situation of COVID-19, the entity responded
through investing around $10 billion for initiatives so to keep its manpower safe as well as
deliver products to customers by performing processes by taking appropriate measures. Addition
to this, the company responds towards social responsibility through updating its processes such
as enhancing cleaning at stores, distributing personal protective gears, executing disinfected
spraying and so on so that customers get hygiene environment to shop at its store. At same time,
employees of Amazon have received comprehensive health benefits and its partners as well as
seasonal associates have contributed around $25 million relief funds in order to respond towards
protecting citizens of the society. It also supports various local addition to national non profit
entities with commodity and product donations across society of US and other nations. It also
respond towards communities in which its customers and employees live by contributing through
relied campaigns which are host at its home pages, grants which makes writing community, Web
Service credits which it provides to educators and hence forth (Seattle Times Staff, 2020).
Obligations are said to course of practices which an organisation is required to undertake
legally and morally. For Amazon, managers are obliged for building trust, encouraging social
changes, raising awareness, etc through organisational processes so that all the responsibilities
towards society are met ethically and legally. One of obligation of Amazon in ethics and social
responsibility is to improve labour practices through training and development so that workers
become specialised to carry out processes effectively and makes efforts in the manner that leads
to improving growth of society (Sharma, Agrawal and Khandelwal, 2019). Moreover,
professionals of Amazon are obliged for devising corporate policies which provide advantages to
environment of society. For example, the company is emphasising towards reducing impacts on
planet for decades. Amazon is obliged for purchasing energy supplier that permits business
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processes to reduce pollution while delivering products through using renewable or economical
alternatives to transportation. With this, the company continues to use renewable energy
alternatives with objective of procuring nearby 100% of energy requirements from renewable
sources (Renewable alternatives in Amazon. 2020). All types of companies have moral
obligations as they are responsible to perform something on the basis of perceptions of right or
wrong in business operations. In relevance to Amazon, it have an obligation to perform processes
in the aspect that meets responsibilities towards society in ethical or moral manner. All business
processes needs moral considerations. It is moral obligation of the entity to follow set regulations
while operating in society.
Reflection report
In this report we learned about Business environment such as internal and external factors
and how they impact the functions of business organisation and the way it influence strength,
Weaknesses, Opportunities and threats that will help in analysing the factors (Syed and et.al.,
2016). Like in PESTEL, I have studied that how they external factors like Political, economical,
technological and social and legal, environmental will help the organisation to know their
external factors. In SWOT I learned about the way in which strength, weaknesses, opportunities
and threats will help in determine that to what extent they could influence the operational
strategies of company. Apart from that how Leadership style impact the business operation and
which style could recommended for future growth. I studied the social responsibilities in
response to response and obligation in the context is being learned.
CONCLUSIONS
It is concluded from above report that Leadership is quality and attribute that individual
posses to regulate and handle people in organisation or in any workplace. Business environment
is refers to different factors like internal and external factor that impact the business
performance. In this report it has been discussed about PESTEL and SWOT analysis and their
impact on organisation and how it gives influence the strength and weakness and opportunities of
company by identifying their factors. Apart from it different leadership style and recommended
suitable style that will be useful for future growth.
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REFERENCES
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