Impact of Covid 19 on Financial Performance of Amazon

Research project
(To determine the impact of Covid 19 on
financial performance of Amazon)
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INTRODUCTION
Overview of the topic and company
Financial performance of the company is a subjective measure which tells the
organisation about the use of their assets. It helps the business to know whether their primary
assets are used in valuable manner and are generating revenue for them. Financial performance is
the term which also assist the organisation to know their overall financial health and wealth of
the company within a given time (Crema, 2021). At the time of Covid 19 many organisations
have suffered a lot in maintain their financial performance. The time was so worst that it become
impossible for the company to generate revenue and expand their business. But in the current
investigation the chosen organisation Amazon has managed a lot and their financial performance
at that time was excellent (Lawson, Piel and Simon, 2020). Amazon is an American
multinational company which provides Ecommerce and cloud computing service to their buyers.
The organisation is founded by Jeff Bezos in the year 1994. It is also one of the world’s valuable
brand.
Research aim
To determine the impact of Covid 19 that had on financial performance of an organisation:
A study on Amazon
Research objective
 To understand the concept of financial performance in context of retail industry
 To determine the impact of Covid 19 upon financial performance of Amazon
 To evaluate the ways used by Amazon for overcoming the impact of Covid 19 on their
financial performance
 To examine the benefits that Amazon could be gained by overcoming the impact of
Covid 19 on their financial performance
Research question
 What is the concept of financial performance in context of retail industry?
 What is the impact of Covid 19 upon financial performance of Amazon?
 What are the ways used by Amazon for overcoming the impact of Covid 19 on their
financial performance?
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 What are the benefits that Amazon could be gained by overcoming the impact of Covid
19 on their financial performance?
Research rational
The main reason for the present research is to gain deeper insight about the financial
performance of the company at the time of Covid 19 pandemic. This research is carry to
understanding about the ways that is used by organisation to overcome from the challenges faced
at the time of pandemic (Coombs, 2020). Another reason for conducting the existing
investigation is to fulfil dual objective that are personal and professional. In respect to the
personal objective, the research will enhance my knowledge about the methods and tool used for
completing the investigation in scientific manner. On the other side, with perspective to
profession I will know about various job position available in the field of Human resource. This
aids in building the professional career in sound manner.
LITERATURE REVIEW
What is the concept of financial performance in context of retail industry?
According to the opinion of Aguinis, Villamor and Gabriel (2020), Financial performance
is the subjective measure for the company. It is used by the organisation to know how their assets
are being used in order to generate high revenue and profit for the business. Financial
performance also aids in showing the overall health of the company within the given accounting
period. It is one of the quantifiable metrics that helps the business to know whether their business
operation and function are conducted in superficial manner or not. There are four elements
through which company can measure their financial performance that are assets, liabilities,
shareholder equity and debt. It is very important for the company to utilize and allocate their
finance in sound manner so that they can enhance their profit and leverage adequate capital to
various department. During Covid 19 most of the company are facing the issue of financial
health due to various restriction imposed by legal authority of different nation.
What is the impact of Covid 19 upon financial performance of Amazon?
As per the view of Calvimontes and et. al (2020), the time of Covid 19 has positively
impacted the financial performance of Amazon. During the Pandemic the sale of the company
was large as compared to any other retail industry. The financial performance is good because
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the brand operates their business through online mode where buying and selling of goods and
services in through internet. The impact of Covid 19 are as follow:
Higher revenue: The first impact is the company has gained higher revenue due to
ecommerce. As local shopping at the time of Covid 19 was not there so buyers are purchasing
goods and service through online mode. This helps the company to increase their sale and earn
more revenue. Their revenue rises up to 49 percent as compared to other (Karen Weise, 2021)
Higher profit: Another advantage that they gained at the time of Covid 19 is high profit.
Amazon continue reap their profit as compared to other years. Their profit at the time of Covid
19 soars 220 percent due to drive in the online shopping. At the time of pandemic, the profit
margin was triple as of past years (Aditi Gautam, 2022)
What are the ways used by Amazon for overcoming the impact of Covid 19 on their financial
performance?
In the view of Morello (2021), there are various ways that is used by Amazon to
overcome from the impact of Covid 19 and maintain their financial health and performance.
Some of the ways that they used are:
Proper sanitiser facility at various warehouses: to face the situation of pandemic and
work in effective manner the company has acquired proper sanitising facility. This helps them to
safeguard and protect their employee from the risk. On the other hand, this assist in working in
safer manner by reducing the fear and increase the productivity.
Increasing the wages and salary: Another measure that is acquired by the company is
increasing the salary and wages of their workers and employee. This helps them to retain their
employee where in the world employee turnover was high. This result in attracting various
buyers towards the company.
What are the benefits that Amazon could be gained by overcoming the impact of Covid 19 on
their financial performance?
As per the view of Kaplan and et. al. (2020), it is very necessary for companies to take
effective measures during pandemic. The measures which is taken by Amazon has provided
various benefit which aid in improving financial performance.
High employee retention: The foremost advantage that is acquired by the company is
high employee retention rate. Due to increasing the wages and salary employee retained in the
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