Leadership and Business Enviroment -Casa Study

LEADERSHIP AND
BUISNESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK...............................................................................................................................................3
SWOT and PESTEL analysis......................................................................................................3
Relationship between pestle and SWOT analysis.......................................................................5
Leadership style...........................................................................................................................6
Leadership theory of Amazon.....................................................................................................8
Corporate social responsibility of Amazon.................................................................................8
Reflection...................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
Books and Journals:...................................................................................................................12

INTRODUCTION
It is very well known that business environment is a dynamic nature that gives many ups
and downs to the organization (Fragouli, 2016). Because of the dynamic nature there are many
uncertainties can be happened with the organization that only deals with the help of their
leadership style? So it is very important for the organization that they have right leadership style
to deal with any type of situations. Leadership is the activity or quality that present in the leader
of the organization to motivate or encourage the employees to work as organizational goals and
objectives. In this context, Amazon is undertaken for analyzing the external environment that
influence of business organization. Amazon is the American company that has headquartered in
Washington. It is the e-commerce company that deals in electronic items, food items and many
more products and services offered to the customers. This report covers the macro environmental
factors which influence organization operations and their leadership style that has to deal with
external environment factor. It also covers the CSR policy of organization.
MAIN BODY
TASK
SWOT and PESTEL analysis.
SWOT is the tool that identifiers and analyses the internal factors influence the
organization structure and culture. There are many internal factors that affect the organisation
operations, it can be e better understand with the SWOT analysis of Amazon.
Strengths Weakness
 The biggest strength of Amazon is their
leadership style that makes strategies such as
cost leadership (Park and Seo, 2019).
 Amazon is the e-commerce business
that government support which helps to
 They serve free delivery that directly
reduced the margins or profits of
organisation.
 Antitrust charges already charged to
Amazon by European Union because of
the use of third party data.

grow their business.
Opportunity Threat
 Because government supports E-
Commerce business so they have a
opportunity to expand their business
globally.
 They have the strong market share that
helps to purchase other acquisitions.
 Day to day increase in the number of
cyber crimes, they have a threat of
security.
 E commerce business is raising very
frequently that raise competition which
becomes a threat for the organisation.
Another important moon that identify and analyse the external macro environmental
factors is PESTEL analysis (Fiaz, Su and Saqib, 2017). It can be better understand with the help
of PESTEL analysis of Amazon that mentioned below.
Political factor- it is one of the important factor in which the organisation that affects by
political stability of country. America is developed nation and has strong political stability that
positively impact on Amazon.
Economical factor- includes the economic condition of country that affects individual income
decide the purchasing power of products and services of Amazon. Amazon operates functions in
America which has better economic conditions as compared to other countries.
Social factor- It includes all culture and traditions of different countries and societies that affects
the urbanization decision making process of regarding products and services. Because of
Amazon is a multinational company they operates their business in many countries which
directly influenced by social factors (Esmer and Faruk, 2017)(Pretorius, Steyn).
Technological factor- It is a factor which that comes the negative effect on Amazon because
does organisation that works on internet. It means they need very high technology for make their
functions easy and smoothly but day-to-day up gradation in technologies become the mean issue
for frequent obsolete the technology.

Legal factor- It is the factor in which important laws and regulations are included that affects the
organisation function and operations. Amazon is large organisation that needs proper compliance
of laws and regulations.
Ecological factor- It refers to the factor which includes all environmental factor that affects
organisation. Amazon can handle this factor by fulfilling CSR policy and providing best quality
of goods and services to the consumer.
Relationship between pestle and SWOT analysis.
All people thought that PESTEL and SWOT analysis are different from each other but
there is some relationship exists in between both tools. To analyse the correlation between both
tools firstly it is important to understand and analyse the concept of both tools. Both which are
very important for the organisation success and failure (Alonso-Gonzalez, Alamo-Hernandez and
Peris-Ortiz, 2017). The growth and sustainability of organisation depends on identification and
analysis of their market. Identification and analysis of market is done with the help of these tools.
They are really important in the context of identification of those factors which affect the
organisation operations and functions. Amazon is the E-Commerce business which has some
physical stores and rest of the business is at online platform. It is very helpful for Amazon
because it is the organisation that needs proper identification and analysing those factors which
affect their growth and success. Both tools play an important role that can be understand with
explanation of each topic.
PESTEL analysis is the tool in which organisation finds external environment that cans
effective business operations and functions positively or negatively. It depends on many factors
such as the country of organisation in which they operate their business. So so when the
organisation do pestle analysis, they are required to analyse external environment that include
political factor, socio cultural factor, environmental factor, legal factor, technological factor and
economical factor. They are important factors that affect the organisation positively or
negatively. For example, in political factor Amazon gets positive impact because the political
stability of USA is strong. That means they have less chances for difficulties in taxation policy
and any other policies (Gupta, 2018).

Whereas SWOT analysis is the tool in which the company analyse both external and
internal environment. Internal environmental factors are the organisations' strength and weakness
whereas external environment factors are threats and opportunity. This is the base of of
interconnection between SWOT analysis and PESTEL analysis.
The 'T' of SWOT analysis comes from external environment factors that becomes the
reason for inter relation with PESTEL analysis. The threats are factors that come from external
environment which affects organisation structure and operations. The connection base of SWOT
and PESTEL analysis is 'O' of SWOT analysis. Because of opportunities cannot make under
internal environment of business, it actually come from external environment. For example,
Amazon is is supported by government because they are promoting E-Commerce business that
become opportunity e for organisation to expand their business with the use of external
environment factor. So this opportunity comes from external environment which becomes the
base of interrelation between these two tools.
Leadership style
Leadership is the function that performed by leader for motivating and encouraging the
employees towards achievement of organisational goals and objectives. It is the factor that is
very important for the success and failure of the organisation. Leadership is the process in which
leader take care of all activities that is related to organisation functions and operations. It is the
important function for organisation if they want to achieve their targets and goals effectively and
efficiently (Liu and Liu, 2017) and Bond-Barnard, 2017)(Turner and Baker, 2018)(Henson and
Henson, 2016). In this process, leader adopts many styles of leadership that becomes theory
which can be understood in mentioned points:
Authoritarian leadership style
The name suggests the meaning that the leader imposes their thoughts and opinions on
employees. Because the leader wants to achieve their targets and goals so they impose their
expectations on employees so that employees can fulfil them by performing their duties
efficiently and effectively. It is suited for that organisation that has not much focus on their
labour. Because those organisations that are focus on their labour cannot adopt this style. As it

does not take care of the feelings of employees because leader only wants to accomplish their
target and goals at any cost (Al Hashmi, 2017).
Delegative leadership style
It refers to the style in which organisation delegates or divide the duties and responsibility
according to their knowledge and experience so that the task can be completed at time. It actually
increase efficiency of work because it is signed the duties according to the the employees'
knowledge and experience. It suited to large organisation because they need delegation for or
dividing the big task into smaller one so that they can achieve the targeted goals and objectives.
It does not suit on small organisations.
Participative leadership style
This style includes the employee’s participation in decision making process so that they feel they
are important for organisation success. It helps to motivate and encourage employees towards
achievement of organisational goals and objectives. This leadership style applies on that
organisation who wants to grow their business with the contribution of all employees that means
they wanted to inclusive growth. It is not fitted to, those organisation who do not think about
their employees.
Transformational leadership style
One of the most effective leadership styles in which organisation leader act as a role
model and set some visions for employees. So that employee has certain goals and objectives to
attain them effectively and efficiently. It is one of the important leadership styles which every
organisation wanted to apply so that they get maximum productivity and profitability. It is better
to those organisation which wanted to grow and success in the marketplace. This type of style is
definitely work on Amazon. Because the founder of Amazon i.e. Jeff Bezos is the leader of the
organisation can be act as role model dad sad song vision and mission for organisation's
employees.
Above-mentioned leadership style it is analysed that selection of leadership style is
depends upon situation and business nature and size. It is the important decision that takes by
leader (ONATOLU, AKWAOWO and ZOBISCH, 2016).

Leadership theory of Amazon
Leadership theory is main constraint of Amazon's success growth in the marketplace. Jeff
Bezos is founder of Amazon who adopt a transformational leadership style that set visionary
statements for the employees so that they can perform duties and responsibilities accordingly. In
transformational leadership the leader acts as a role model inside some visions which helps to
employees encourage and motivate towards organisation goals and objectives and worked
accordingly. Leadership plays an important role in the success of organisation because it is the
only way that helps to motivate employees to increase their productivity so organisation can
achieve their targets and goals. People thought that one style is enough for organisation success
and growth. But it is not true because different situation demands different leadership style. It
can be seen from the example of Amazon because its leader Jeff bezos different types of
leadership style at different situations and problems. But the main focus of one leadership style is
transformational leadership. Transformational leadership is the important leadership style in
which organisation focuses on set some visions that encourages employees.
Another type of leadership style that adopted by Amazon are toxic leadership style and
pragmatist leadership style. Both play a very important role in the organisation success.
Pragmatic leadership styles sets high standard for the employees and impose expectations that
they are fulfilling organisation leader’s demand and want timely and efficiently. It creates toxic
environment that the leader cannot hear about their employees. But Amazon leader is different
from others that they manage all activities and functions of organisation. The run their business
with millions of people sentiments and approximate 56,000 employees. It is not easy as it is the
big achievement for organisation. He focuses on contingency theory that means he thought no
single leadership style can give success and growth to the organisation. The best leadership style
is applied on the basis of situations (Ugbam and Okoro, 2017).
Corporate social responsibility of Amazon
Corporate social responsibility is not only the duty but also the fundamental right of
society that organisations need to fulfil them. Corporate social responsibility is very important in
the organisation faces a challenge of environmental factors. It is analysed that environmental
factors are those factors which include important laws and regulations regarding ecological.
Every organisation faces environmental issues because they did not think about environment

while doing their business. When the organisation uses natural resources of society then it
becomes a duty for organisation to provide best quality of products and services with green
environment to the society so that they give something in return back. Corporate social
responsibility is one of the part of giving something return back such as provide good quality of
products and services and compliances of all rules and regulations related to environment
healthy. Here are some important initiatives taken by Amazon related to CSR that are mentioned
below:
Supporting local communities
Amazon supporting local and national non-profit organisations through providing funds
and donations such as they host 'girls who code' in which organisation helps to those girls who
are interested in coding. They also make a separate relief fund in which the focus is on their
individual delivery partners that how they deal with corona virus disease.
Empowering and educating labour
It is very obvious that the organisation face success only because of their workers
capability and productivity. So it becomes the duty and responsibility of the organisation that
they develop and manage educating programs which helps to develop their workers to grow
more. Amazon already runs a program on their career site for employees in which they paid 95%
off tuition fees for employees so that they can achieve something and explore more
opportunities. They also provide work from home for employees through Amazon virtual
customer care services that mean any person who not able to come at office then they will go for
work from home (Elkington and et, al., 2017).
Health and safety of employees
The profitability is depending upon the productivity of employees which related to health
and safety of employees. In this respect, Amazon per form a very good activity in this pandemic
situation. Amazon give an opportunity to all employees that the work from home so that day will
not get affected by corona virus. It becomes a very good step taken by Amazon that gives
empowerment and motivation to employees towards organisational goals and objective (Nguyen,
Yandi and Mahaputra, 2020).

Gender equality
It is one of the important topics in concept in which organisation get fail. But Amazon
takes a very corrective action in this issue that they launched a CSR project that they name as
Business for social responsibility Hers project. It directly attracts women in organisation.
Amazon also develops ten affinity groups that only focuses on gender equality and minorities. It
is a very good initiative taken by Amazon for removing minority concept from organisation.
It is analysed from the above discussion that Amazon sound responsible and responsive
in relation with CSR. They are trying to fulfil CSR policy very effectively and efficiently so that
they become the leader of business world. They take good initiatives that are mentioned above
are very good for Amazon success and growth.
Reflection
In this report I analysed that there are many factors which affect the organisation growth
and success. It can be internal or external factors that can identify through main important tools
which are SWOT analysis and PESTEL analysis. I analyse that both tools please and important
role in determining internal and external factors that affect organisation success and growth. I
found some relation between SWOT analysis and PESTEL analysis. Earlier I thought they are
different concept but after the brief study of this report I found some similarities and correlation
between them. Threats and opportunity actually come from external environment that becomes a
relation with PESTEL analysis. Whereas strengths and weaknesses are the internal factors which
gives the ability to organisation to face these external challenges.
I found it that both are important because PESTEL analysis influence SWOT analysis.
That means without SWOT analysis, PESTEL analysis is not work on organisation success and
growth. For example, if the organisation faces political issues then it can be only deal with their
strengths. So that's why I found some relationship between these two concepts. Another
important concept that I found very crucial for success and sustainable growth of organisation is
leadership style. Leadership style plays a very important role to deal with external and internal
factors. I already know that business environment is dynamic but how to deal with them I did not
know about it. After the brief study of this report I found that it can be easily deal with
appropriate leadership style. I found that leadership style is very important for leaders to

motivate and encourage employees to work organisation goals and objectives. Leadership is time
is the way of leadership in which leader act according to the situation or the demand of situation.
I found much leadership style in which one of the most important leadership styles is
transformational leadership style. Transformational leadership style gives some vision to
employees that give the importance of role model. I analyse that it is one of the important
leadership style that can adopt by person. I also found that there is no one single leadership style
that suitable in all types of situations. After leadership style I found corporate social
responsibility is very important for organisation survival in the market place. Customer social
responsibility is the duty of every organisation in which they give something return back to the
society. It is very essential for the success and growth because if the organisation did not fulfil
CSR policy then they fees governmental issues. For example, a laboratory in which employees
make some experiments that reveal sum in toxic chemicals in the environment. The can be sue
by people for this issue because they failed to fulfil CSR policy. These are the important
concepts I found to discuss necessary.
CONCLUSION
It is concluded from the above discussion that swot and pestle analysis is very important
for discovering unexpected or possible outcomes from the business environment. It is also
analysed of found that boot tools are interrelated with each other. As shown in above section that
threats and opportunity comes from external environment which means it is related with pestle
analysis. In this report it is analysed that leadership style is important for success and growth of
business. The best leadership style is not stated because the applicability is only depending on
the situation. It means demand of situation decides which leadership style is apply on that
moment. CSR is another factor that is important when considering the organisation growth and
success. It is necessary to fulfil them because society gives some important resources.

REFERENCES
Books and Journals:
Al Hashmi, W. S. G., 2017. Environment, Health and Safety Governance and Leadership: The
Making of High Reliability Organizations. Routledge.
Alonso-Gonzalez, A., Alamo-Hernandez, P. and Peris-Ortiz, M., 2017. Guardiola, Mourinho and
Del Bosque: Three different leadership and personal branding styles. In Sports
management as an emerging economic activity (pp. 329-344). Springer, Cham.
Elkington, R., and et, al., 2017. Global leaders’ perceptions of elements required for effective
leadership development in the twenty-first century. Leadership & Organization
Development Journal.
Esmer, Y. and Faruk, D. A. Y. I., 2017. Entrepreneurial leadership: a theoretical framework.
Mehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 4(2),
pp.112-124.
Fiaz, M., Su, Q. and Saqib, A., 2017. Leadership styles and employees' motivation: Perspective
from an emerging economy. The Journal of Developing Areas, 51(4), pp.143-156.
Fragouli, E., 2016, September. Leadership, decision making and business development: what
should be considered nowadays to assist business development. In 2nd International
Conference on Institutional Leadership, Learning and Teaching (ILLT) (pp. 77-92).
Academy of Business and Retail Management.
Gupta, M., 2018. Developing Strategic Leadership in the Indian Context: Leadership. In
Management Techniques for a Diverse and Cross-Cultural Workforce (pp. 224-235). IGI
Global.
Henson, R. and Henson, R., 2016. Successful global leadership. Palgrave Macmillan.
Liu, H. J. and Liu, X. B., 2017. Relationship between paternalistic leadership and employee’s
voice behavior based on regression analysis. Journal of Discrete Mathematical Sciences
and Cryptography, 20(1), pp.205-215.
Nguyen, P. T., Yandi, A. and Mahaputra, M. R., 2020. Factors That Influence Employee
Performance: Motivation, Leadership, Environment, Culture Organization, Work
Achievement, Competence And Compensation (A Study Of Human Resource
Management Literature Studies). Dinasti International Journal of Digital Business
Management, 1(4), pp.645-662.
ONATOLU, A., AKWAOWO, E. and ZOBISCH, P., 2016. Business Strategic Leadership,
Marketing, and Cultural Competence in International Business. Journal of Business and
Human Resource Management, 2(2), pp.1-5.

Park, E. M. and Seo, J. H., 2019. A Study on Leadership Typology in Sports Leaders Based on
Big Data Analysis. Journal of the Korea Convergence Society, 10(7), pp.191-198.
Pretorius, S., Steyn, H. and Bond-Barnard, T. J., 2017. Exploring project-related factors that
influence leadership styles and their effect on project performance: A conceptual
framework. South African Journal of Industrial Engineering, 28(4), pp.95-108.
Turner, J. R. and Baker, R., 2018. A review of leadership theories: identifying a lack of growth
in the HRD leadership domain. European Journal of Training and Development.
Ugbam, O. C. and Okoro, E. A., 2017. A Strategic Study of the Nigerian Pharmaceutical Sector:
Organizational Leadership, Market-share, and Competitive Performance. International
Journal of Business, Humanities and Technology, 7(1), pp.1-10.