HRM and Global Business Environment Recruitment and PESTEL Analysis in International Company

This report discusses the recruitment strategies and PESTEL analysis of Amazon, a multinational company operating in 13 countries. It also analyzes the impact of cultural factors and provides recommendations to improve HR functions. The report includes a brief introduction of Amazon, its international operations, key approaches to recruitment strategies, environmental factors having an impact on policies and procedures of Amazon, and the impact of cultural factors of the country where the subsidiary is located.

HRM AND GLOBAL
BUSINESS ENVIRONMENT
RECRUITMENT AND
PESTEL ANALYSIS IN
INTERNATIONAL
COMPANY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Brief introduction of Amazon, the reason for choosing the organization and its international
operations.....................................................................................................................................3
Key approaches to recruitment strategies and factors that have an influence over them............4
Environmental factors having an impact on policies and procedures of Amazon.......................6
Impact of the cultural factors of the country where subsidiary is located...................................7
Recommendations to improve HR functions...............................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment is defined as the sum of all the internal and external factors which
have an influence over the business (Kumar, and Sharma, 2022..) It helps an organization in
identifying various opportunities for business, acquiring useful resources and improve the overall
performance and profitability of different organizations. The report will be based on Amazon, a
multinational company which offers its services all over the world and has a huge network of
buyers and sellers with a prominent experience in the industry. It will include a brief introduction
of the organization, key approaches to recruitment strategies, PESTLE analysis of the
organization, impact of cultural factors and recommendations on how to improve the
performance of the company.
MAIN BODY
Brief introduction of Amazon, the reason for choosing the organization and its international
operations
Amazon is a multinational technology company and one of the most valuable brands in
the world (Acikgoz, 2019). The organization offers various services to its customers by artificial
intelligence, digital streaming and e-commerce platform and may provide their customers with
best services than its competitors.
Aim :
The organization aims at becoming the most customer centric company in the world by
providing people with high quality customer experience with the help of technology and internet.
Objective :
 To increase customer satisfaction.
 To increase the productivity and profitability.
 To focus on long term growth by developing generic strategies.
 To improve the innovations in the company by working upon the research and
development of the products.
International Operations :
Amazon may have its operations in 13 countries such as the United Stated, United
Kingdom, Canada, Australia etc. and the organization may ship its products in more than a
hundred countries worldwide.

Reason to Choose the Organization :
The reason to choose Amazon as the proffered organization may be due to its popularity
in the world and as it may have a proper structure to conduct its operations. It may have a wide
network in the international market and require recruitment of highly skilled professionals
which may be beneficial to understand the way the company manages its operations globally.
The company may have recruited around 1.6 million employees globally which comes
from different backgrounds, expertise and experiences and are responsible for the success of the
e-commerce giant (Annicchiarico and et.al., 2022). The mission of the company is to offer
customers with the lowest prices for good quality products at their best convenience. The
organization may have a vision to develop the brand into a customer centric space where people
can easily discover anything they want to have. The company may have gained advantage over
its competitors like eBay and Alibaba by providing better services in the area of retailing,
entertainment groceries, delivery etc.
Key approaches to recruitment strategies and factors that have an influence over them
Recruitment strategies may be defined as an effective plan which may include the roles of
the workforce which needs to be recruited (Kwilinski and et.al., 2019). They are prepared by
considering with the objectives of an organization and may help in providing equal opportunities
to the employees. There may be two types of recruitment strategies such are internal and external
which are as follows :
Internal Recruitment :
This strategy may be used by an organization to source candidates already present in the
existing workforce. It may be a simpler way of recruiting candidates but may be limiting
sometimes. The approaches under this strategy are as follows.
 Internal job posting :
It may be used to provide the existing workforce to find promotional opportunities in the
company and respond to these openings according to their interests and skills.
 Nominations :
A company may ask its management to nominate high performing individuals for selection for
the internal opportunities. It may be an informal system which may be suitable for smaller
organizations.

 Succession Planning :
This approach may be used to establish development plans to help individuals to prepare for the
promotional opportunities and to identify the potential talent for the organization.
External Recruitment :
Under this strategy, marketing principles may be adapted by a company to provide
employment opportunities to the potential candidates in the external environment. The main
approaches in this strategy are :
 Targeting active or passive candidates :
According to this approach the ideal candidates among the job seekers may be identified by
organizations (Choi and Yi, 2018). The unsatisfied individuals in current employment or
planning to change for better income.
 Job Postings :
This approach may be used by an organization to attract candidates towards the vacancy
announced by preparing a proper job description and opportunities to grow in the global market.
 Developing recruitment partners :
HR professionals may look out for external resources for the recruitment process according to
this approach by including partners like third-party recruiters, counsellors and community based
programs.
Factors which influence these practices in various countries are :
Technology :
The advancements in the field of technology may help the organization in making the
recruitment process easier and reaching out to more people all over the world. This factor may
put a positive impact on the business by saving time and money for the organization.
Mobility :
It may be easier for the selected candidates to travel from their native countries to do job
in a different nations due to availability of many convenient travel options to move anywhere in
the world. This may put the HR in a better position to recruit the desired candidates from outside
nations.
Legal Structure of Countries :

This factor may put barriers for the candidate to relocate from their countries to the job
country as the legal structures of various countries may include many restrictions.
Environmental factors having an impact on policies and procedures of Amazon
The PESTLE Analysis may be defined as a strategic framework which may be used to
evaluate the external environment of any organization by dividing the risks and opportunities
into Political, Economic, Social, Technological, Environmental, and Legal factors to prepare an
effective corporate strategy for the business.
Political factor:
This factor may be put negative impact on the stability of the business as there are certain
nations which may have restrictions for the organization which may affect the growth of the
company. As many countries may support their local businesses it might affect the productivity
of Amazon.
Economic factor :
This factor may positively impact the organization as the company is fully linked with the
economic conditions of each country it may be operating in. People in these countries generally
have high income which may motivate the consumers to search for different products and buy
them.
Social factor :
This factor may have a positive impact on the organization as the customers are highly
attracted by the marketing strategy of the company as the brand has become a social symbol
especially for the youth (PESTEL Analysis, 2022). Customers may have trust for the brand which
may be beneficial for the organization to increase its market share.
Technological factor :
This factor may have a positive impact on the company as the technology, payment
modes, privacy policy developed by the company is convenient and rated good by the
consumers. The organization has worked upon barriers like cybercrime and online theft which
my give benefit to the organization.
Legal factor :
This factor may put negative impact on the business, as the laws and legislations of many
countries are different and the legal structure may have restrictions on the business which may

affect success of the brand in various countries. This may restrict the HR to recruit the potential
candidates from different nations.
Environmental factor :
This factor may impact the organization in a positive way as the management of Amazon
may make sure to respect the environmental legislation by reducing the negative effects of the
products and services on the environment. It focuses upon correcting the harm done on the
environment and prevent the issues around the business by adapting ethical business practices.
Impact of the cultural factors of the country where subsidiary is located
The cultural factors of the country may be examined with the help of Hofstede's model, it
may be defined as a framework for cross cultural communication (De Giacomo and Bleischwitz,
2020). It may depict the effects of a society's culture over its members and may include various
factors which are as follows :
Power Distance :
The score of UK under this factor may be 35 which is a lower ranking in the PDI it is less
than USA which may be 40 as the power distributed among the members at lower levels of
hierarchy may be less in the subsidiary nation (Pacilio,and et. al., 2022.).
Individualism :
UK scores 89 under this factor which may be considered to be among the highest and
USA being only 2 points ahead at 91. It shows that people in both the countries are highly
individualist and focus on their private lives.
Masculinity :
The score in this section for UK may be 66, which is more than USA which scored 62
only it may show that the society may be highly driven by competition and success (Luo, Chen,
and Zhang, 2022..)
Uncertainty Avoidance :
USA may have a score of 46 in this section and UK scored 35 which is very less which
shows that the people in the nation are carefree and like facing problems when they arise rather
than preparing for them in advance (Lestari and et.al., 2020).
Long term Orientation :

UK has high points in this section such as 51 and USA may be at 26 which may show
that the British people may take the pragmatic approach by encouraging modern eduction in
order to prepare for the future.
Indulgence :
UK with a high score of 69 in this factor may be ahead of the USA as it may have scored
68 which may indicate that British culture may be classified as indulgent where people may have
a willingness to realize their desires and having fun in life.
Recommendations to improve HR functions
Amazon may enhance its HR functions by preparing an effective strategy to conduct the
recruitment process in the organization at the global level. The company may assess its current
work force and identify areas which need to be improved and given more concern (Wolff and
Burrows, 2021). The company may focus upon the training and development of the existing
workforce to get the maximum output from them and get an effective response in their
performance. The performance of the employees in different countries should be evaluated, and
they should be rewarded for efforts towards the organization.
CONCLUSION
On the basis of this report it has been concluded that the organization use various
strategies and approaches for the international recruitment process which may benefit them to
select the desired candidates. The external and cultural environment of the organization has been
analysed by the management to get an idea of the impacts of these factors over the business in
the global environment. This has been beneficial for the organization to prepare an effective
recruitment strategy.

REFERENCES
Books and journals
Acikgoz, Y., 2019. Employee recruitment and job search: Towards a multi-level integration.
Human resource management review. 29(1). pp.1-13.
Annicchiarico, B. and et.al., 2022. Business Cycles and Environmental Policy: A Primer.
Environmental and Energy Policy and the Economy. 3(1). pp.221-253.
Choi, H. and Yi, D., 2018. Environmental innovation inertia: Analyzing the business
circumstances for environmental process and product innovations. Business Strategy
and the Environment. 27(8). pp.1623-1634.
De Giacomo, M. R. and Bleischwitz, R., 2020. Business models for environmental
sustainability: Contemporary shortcomings and some perspectives. Business Strategy
and the Environment. 29(8). pp.3352-3369.
Kwilinski, A. and et.al., 2019. Environmental taxes as a condition of business responsibility in
the conditions of sustainable development. Journal of Legal, Ethical and Regulatory
Issues. 22. pp.1-6.
Lestari, B. and et.al., 2020. The effect of recruitment and career development on the spirit of
teachers’ work performance in Mts Nurul Huda. Journal of Industrial Engineering &
Management Research. 1(3). pp.108-121.
Wolff, M. and Burrows, H., 2021. Planning for virtual interviews: residency recruitment during a
pandemic. Academic pediatrics. 21(1). pp.24-31.
Online
PESTEL Analysis. 2022. [Online] Available Through:
<https://corporatefinanceinstitute.com/resources/knowledge/strategy/pestel-analysis/>
Kumar, B. and Sharma, A., 2022. Examining the research on social media in business-to-
business marketing with a focus on sales and the selling process. Industrial Marketing
Management 102. pp.122-140.
Pacilio,and et. al., 2022. Ranking Love Numbers for the Neutron Star Equation of State: The
Need for Third-Generation Detectors. Physical Review Letters, 128(10) p.101101.
Luo, M., Chen, F. and Zhang, J., 2022. Relationships among port competition, cooperation and
competitiveness: A literature review. Transport Policy.

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