Global Strategy and Sustainability

Global Strategy and
Sustainability

Table of Contents
INTRODUCTION...........................................................................................................................1
MAINBODY....................................................................................................................................1
1.External Analysis of the Industry using 2 appropriate Strategic Models:...............................1
2.Internal Analysis of Amazon.com using 2 appropriate Strategic Models:..............................4
3.Critical analysis and evaluation of Corporate Social Responsibility (CSR) and
Sustainability:..............................................................................................................................5
4.Implications of the External Analysis, Internal Analysis, and Sustainability Analysis:..........7
5.Recommendations for Amazon.com’s Strategic Development:..............................................8
6.Recommendations for Corporate Social Responsibility (CSR) and Sustainability.................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Global strategy defines by a policies which covers the areas like global, multinational and
international strategies. These are the areas which refers to those strategies and tactics designed
with a motive to achieve the objectives of its international expansion which relates with setting
up of businesses through proper analysis of market globally. These strategies are useful in
distinguish between three types of international expansion that will arises from company's
resources, current international position and capabilities. Global strategy refers with a practises
which are follows by the organisation to implement in the international market. Sustainability
refers to the business approach which defines with creating a long term value by considering
how organisation operates its ecological , social and economic environment .The below report is
based on Amazon is an multinational technology industry having their headquarter in Seattle,
Washington. Which deals in e-commerce websites of its own, digital streaming and works on
artificial intelligence, was founded by Jeff Bezos in Bellevue. The report consists topic external
and internal analysis by particular models, critically analysis and evaluate CSR and implications
of this factors.
MAINBODY
1.External Analysis of the Industry using 2 appropriate Strategic Models:
Due to large expand business of Amazon in respect of their e-commerce along with the
different operations. They are currently dealing in Amazon Alexa, Amazon app stores so
international approach need to be analysed in respect of external environment. So here are two
models through which external analysis will cover by PESTLE and Porter's five forces model:
PESTLE Analysis of Amazon
This model is basically a method or tool by which an industry will determine and analysis
their external factor. This will impact organisation in their current as well as in future phase so to
build proper strategic plan industry will needs to do this model is that :
Political factor
This factor relates with indulgence of government as Amazon operates alongside with
political influence:
 Political stability in developed countries especially in the UK and other European
country will maintain value of organisation (Eyhorn and et. al., 2019).
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 Government supporting the business like e-commerce, this will be either considered with
threat and opportunities because they will support other organisations too.
 Lots of efforts by government in increasing cyber security for e-commerce site like
Amazon will leads to industry development.
Economic factor
This industry performance depends upon situation of economies which relates with
online as well as offline platform:
 Stability in economy of the country like UK will going to increase opportunities factor
for company.
 Increasing Disposable incomes in developing countries will attain the value of better
business of Amazon.
Socio-cultural factors
This factor will identify socio-cultural impact on organisation like Amazon by market
trends and society value:
 Through increasing in distribution of wealth and income will leads to become threat for
organisation like Amazon.
 In developing countries, the approach of increase in consumerism will provides Amazon
with lots of opportunities in expanding their market.
 Increase online purchasing habits of the people, generates more profits in business.
Technological factor
This factor will directly affect Amazon because of their high reach in customers across
countries will lead to generates more expectation by this industry:
 Rapid change in technological aspects will leads to create threats for this organisation.
This organisation are relates with e-commerce sites there are having more cybercrime
cases this will leads to become the threat for the company.
 By Increasing in efficiency of IT resources develops the opportunities for this industry
(Ng, 2018).
Environmental factor
This industry relates with process of online business, their operation will subject to
influence the environment:
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 Taking interest in lots of environmental programs will directly contributes in the natural
environment factor.
 Increase on the emphasis on sustainability aspects.
Legal factor
This organisation operation must adhere to their legal requirements, as all the business operations
work related with different countries as well.
 Increasing in the product regulation will leads to create complexity for company
 Change in the import and export regulation of e-commerce industry.
Porter five forces model on Amazon
This model assist organisation by understanding their strength and weakness of industry
by determining external forces relates with their threats by analysing outcome of this process:
Threat of new entrants
It’s easy to start new online business but difficult to take on a brand like Amazon industry.
 It’s easy for new entrant to enter into market because of low switching cost customer can
easily rely onto other industry product.
 Having with customer loyalty Amazon gets the advantage of being a first brand player in
e-commerce industry.
Bargaining power of buyers
This industry is highly focus on providing the value and quality services to their customers.
 Customers generally relates with high bargaining power because of lots of large
competitors in the market.
 It’s difficult to reach at level of Amazon, so it’s tough for buyers to determine such
extend of experience (Nowotny and et. al., 2018).
Threat of substitute
This industry competes with their substitute relates with online retail as well as with the
offline retail market.
 Amazon faces low switching cost in the industry as customers will easily adopts from
Amazon to other retailers
 This industry does not deals in unique product when talk about e-commerce, they are
selling retail products of brands industry so they have to focus on that aspect too.
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Bargaining power of the suppliers
 Influence of suppliers is more in the e-commerce cause retailers will not be able to serve
their customers.
 This industry because of their brand value they are having upper hand on their suppliers.
Competitive rivalry
Amazon because of their large operation in the international market they are having strong
competitors and rivalry in online retail industry are high for Amazon (Ponte, 2019).
 Competitors of Amazon are Walmart, Alibaba, Flipkart etc.
2.Internal Analysis of Amazon.com using 2 appropriate Strategic Models:
Internal analysis defines with proper analysis of companies inner operations which relates
with the SWOT analysis of the company that depicts where the company stand right now.
Through its processes of their operations, analysing their strength weaknesses opportunities and
threats. So here are two models by which internal analysis will be formed for Amazon is that
Mckinsey 7-S framework and core competencies model.(Muñoz-Torres and et. al., 2018).
Mckinsey 7-S Framework
 Strategy:
This framework relates with organisation planning for enhancing and maintaining a competitive
advantage over their competitors. This industry places with the great emphasis on enhancing
communication among various components of its ecosystem, this are relates with the merchants,
writers, reviewers, apps developers so as to attain customer attentions and will focus on
Amazon leadership value .
 Structure:
A structure which follows by the organisation in relation to their different department. Amazon
by determining the value in respect of their aspect, how department and teams are structured and
how well you company is organized this approach defines this process.
 System
Daily activities and procedures which are apply by staff relates with system approach. This
approach deals in daily activities in which Amazon operates and practises and procedure which
is used by this industry as they are focusing more on their online retailing enhancement.
 Shared values
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This aspect is concerned with core value of the organisation which defines business culture and
ethic basically Amazon have value of providing with quality by taking care of the ethics
(Ranängen and et. al., 2018).
 Style
Style of leadership adopted by organisation. The leadership style in which this retail e-commerce
industry works is pragmatist which relates with high standards.
 Staff
General capabilities of employees .By looking into staff requirement in the industry, is there any
gaps in required competencies and what position needed to be filled are asked in organisation.
 Skills
Actual skills and competencies of an employees in the organisation. This aspect relates with if
there is any skill gaps in the industry, what aspect in which company present strongly are relates
with their products or services value.
 Core competencies of Amazon
As this industry works on principle of providing best services to their customers and
reach them in large number by adopting the value of their online strategy, Amazon thinks of
itself as earth most customer-centric company, by enhancing value of busying process, deliver
product quickly and efficiently (Durugbo and Amankwah‐Amoah, 2019). Leveraging technology
for the future, Amazon can innovate in their services quickly and consistently by common
method of software code writing and applying this at large in organisation .Having core
competencies of foster a culture of innovation, this industry are continuously moving towards
growth factor by working on their servicing pattern through improving delivery channel and
offers on products that relates to high standards.
3.Critical analysis and evaluation of Corporate Social Responsibility (CSR) and Sustainability:
 Amazon are having with largest e-commerce industry this value creates CSR and
sustainability factor in the industry in expand manner. To build the reputation in the
international market by sustaining for longer period of time with that approach. Amazon
are continuously moving toward the goals of attaining the corporate social responsibility.
(Arora and et. al., 2018).
This industry supporting the local communities
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In the year 2020, this e-commerce giant generates the Amazon relief fund, millions of initial
contribution. Focused on providing the support to their independent delivery service partner in
respect of the servicing and their stakeholders to handle the situation of coronavirus development
in the businesses.
 This industry also deals in donation program which relates with Amazon device donation,
in which electronic devices and gift cards are provided to schools near fulfilment centres.
 This organisation is also engaging inactivities to donate local and national non-profits
with cash and products.
Amazon educating and empower their customers
This organisation is having career choice program, by pre -paying the maximum percentage for
employees to take courses for their respected fields. This industry relates with the virtual contact
centre which allows there employees to the work from home by taking care of the work related
report.
Employees Health and Safety
 Because of the Covid -19 pandemic, Amazon industry allows their employees to do
work from home due to the risk of spreading. Provides working from home policies and
operates their employees by online basis.(Cai and et. al., 2019)
Gender Equality and Minorities
 This industry has 10 affinity groups in the company which is known as employees
resource groups, they are working in maintaining the value of CSR .
Sustainability on Amazon
 Energy consumption by Amazon, this e-commerce organisation are heavily investing in
the wind and solar. To reach the 80% of renewable energy across all the activity of
businesses operations by adopting the value of company aim by using the almost 100%
renewable energy.(Lu and et. al., 2018). They are deals in the district energy system-
recycling the heat from the nearby building to heat the office space this process is
operating at the head office of the Amazon in Seattle.
Water consumption by Amazon
 This organisation are well planned in their structure many of their fulfilment centres are
having the ability to collect and recycle water. This process will be done through
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rainwater collection and tanks. They are using direct evaporating the technology for the
cooling point of view and significantly reduce the consumption of energy and water.
Carbon emission by Amazon
 Organisation commits to deploy its technology and the people to reach at the point of
zero carbon across the company by 2040.They are investing highly in reforestation
projects internationally.(Alexander, 2018).
4.Implications of the External Analysis, Internal Analysis, and Sustainability Analysis:
 This industry relates with lots of implication on their internal as well as on external
analysis. Industry will going to implement the strategy related to the operational activities
through determining the sources which will going to assist the industry through future
sustainability. So here are the SWOT model of Amazon which defines impact of the
external a well as internal by adding competitive advantage through its specialised
activities are as followed:
SWOT Analysis
 It’s a process to determine the internal as well as external aspect of company where the
industry actually stand by taking the assistance of this model. Amazon will going to
analysis there strength, weaknesses. Opportunities and threats factor is that:
Strength:
 One of the most common key strength of this industry is that they are enjoying the top of
the mind recall from their customer internationally. Awareness helps this industry to
making efforts in new market it will become easy for this industry by that aspect.
 Organisation having the aspect of world's leading online retailer, they are depending upon
the three strategic process which deals in cost leadership , differentiation and focus.
(Zeemering, 2018).
Weaknesses:
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 They are dealing in free shipping to their customers, this approach will ultimately defines
the loss of margins. They will not be able to do cost optimization cause of this process of
dealing in the services.
 Amazon operates in zero margins model of business that will affect its profitability in the
long run. Company will face high volume and huge revenue this will not considering into
valuable profits.
Opportunities:
 By Rolling out the online payment system so they can attain the value to provide the
cyber security in regarding their online platform. For the customers by securing their data
and attain the value to be trusted company.
 By adopting value to introduce their own brand products in large will going to attain the
value instead of being forwarding site for providing third party products.
 By opening more websites related with their e-commerce handling websites leads to
generates the value for this company.
Threats:
 Because of their popular aspects and well known industry of online retailing e-commerce
website they are having the threats of being hacked. Risk of theft identity of their
customers by exposing their data. They have to make sure about the privacy policies,
online privacy and security.
 This industry deals in the aggressive pricing policy which will leads to problem face by
lawsuits from the publishers and rivals in the industry.
5.Recommendations for Amazon.com’s Strategic Development:
 This topic contains the internal and external analysis of the e-commerce retailing industry
which are dealing in online retailing shopping site.Providing with the quality services to
their customers and their contribution in the CSR and sustainable factor. Here are some
recommendation for amazon based on their strategic development is that:
 It has been recommended that Amazon should focus on investing in technologies.They
can enhance their logistics applications through several processes, and by improving its
web services through fulfilment capacity by implying R&D activities. AWS segment and
through experiment with fintech.
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 By introducing their own product branding into the online e-commerce site will increase
the value of their branding.
 By limiting the approach of free shipping over their delivery of the product to their
customer will going to provide profitability margins (Clapp, 2018).
Deals with global challenges:
 This industry can face the issue of cybercrime which relates with security and privacy of
the customers by exposing their information’s and by duplication of sites. Industry are
well focused on their privacy issue through having the professional IT teams with them
which are continuously commanding the sites and do changes if needed.
 Because of their large e-commerce customers handling they are having the responsibility
to cope up with the change. Which will be occur due to change in technological
advancement in relation to the new offering. So they have to continuously manage this
aspect through their valuable market players in an international markets across the
countries (Njoroge, Anderson and Mbura, 2019).
6.Recommendations for Corporate Social Responsibility (CSR) and Sustainability
 As this industry already contributing in field of corporate social responsibility and aspect
of sustainability process in organisation. So here are some of recommendation which can
be implement by industry like Amazon by adding this value too:
 If this company will adopt strategy of proper business code of conduct by avoiding
approach of dealing their employees through implement work pressure on them.
Approaches related with extra time or over time so by adopting specific policies of
welfare of their employees by avoiding this aspect and provide them with fair work
environment.
 Amazon can improve their value of work place health and safety program by taking care
of operational work which are deals on ground level. All process related to dispatch and
packaging of the product are comes under that by making health of employees as priority,
 This industry can work on their commitment of protecting the environment by allowing
proper utilization of their remaining raw materials through process of recycling.
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CONCLUSION
It has been concluded from the above report is that every organisation needs to adopt the value of
determining and analysing the internal as well as external forces which will impact the
organisation in the long run. Maintaining core competencies and continuous growth in the
industry in respect of their operations, models like SWOT,PESTLE and Mckinsey 7-S
framework. Allows the organisation to adopts the new strategies if needed in the future by
contributing towards the corporate social responsibility and maintaining the sustainability of the
industry with the view to attain the objectives in future.
REFERENCES
Books and Journals
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Alexander, R., 2018. Sustainability in global production networks–introducing the notion of
extended supplier networks. Competition & Change.22(3). pp.255-273.
Arora, N.K. and et. al., 2018. Environmental sustainability: challenges and viable
solutions. Environmental Sustainability. 1(4). pp.309-340.
Cai, W. and et. al., 2019. Promoting sustainability of manufacturing industry through the lean
energy-saving and emission-reduction strategy. Science of the Total Environment. 665.
pp.23-32.
Cavaleri, S. and Shabana, K., 2018. Rethinking sustainability strategies. Journal of Strategy and
Management.
Clapp, J., 2018. Mega-mergers on the menu: corporate concentration and the politics of
sustainability in the global food system. Global Environmental Politics.18(2). pp.12-33.
Durugbo, C. and Amankwah‐Amoah, J., 2019. Global sustainability under uncertainty: How do
multinationals craft regulatory policies?. Corporate Social Responsibility and
Environmental Management. 26(6). pp.1500-1516.
Eyhorn, F. and et. al., 2019. Sustainability in global agriculture driven by organic
farming. Nature Sustainability. 2(4). pp.253-255.
Lu, Y. and et. al., 2018. Major threats of pollution and climate change to global coastal
ecosystems and enhanced management for sustainability. Environmental Pollution.239.
pp.670-680.
Muñoz-Torres, M.J. and et. al., 2018. An assessment tool to integrate sustainability principles
into the global supply chain. Sustainability. 10(2). p.535.
Ng, A.W., 2018. From sustainability accounting to a green financing system: Institutional
legitimacy and market heterogeneity in a global financial centre. Journal of Cleaner
Production, 195. pp.585-592.
Njoroge, M., Anderson, W. and Mbura, O., 2019. Innovation strategy and economic
sustainability in the hospitality industry. The Bottom Line.
Nowotny, J. and et. al., 2018. Towards global sustainability: Education on environmentally
clean energy technologies. Renewable and Sustainable Energy Reviews. 81. pp.2541-
2551.
Ponte, S., 2019. Business, power and sustainability in a world of global value chains. Zed Books
Ltd..
Ranängen, H. and et. al., 2018. From global goals and planetary boundaries to public
governance—a framework for prioritizing organizational sustainability
activities. Sustainability. 10(8). p.2741.
Zeemering, E.S., 2018. Sustainability management, strategy and reform in local
government. Public Management Review. 20(1). pp.136-153.
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