Leadership and Business Environment

This report explores the impact of leadership on the business environment, focusing on Amazon. It includes an analysis of Amazon's SWOT and PESTLE, a comparison of different leadership styles, and recommendations for leadership styles that can help Amazon's management to grow. It also discusses Amazon's social responsibilities and obligations.

Leadership and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
Task..................................................................................................................................................3
1. Amazon’s SWOT and PESTLE analysis.............................................................................3
2. Analysis of strength, weakness, opportunities and threats from PESTEL Analysis.......5
3. Comparison and Contrast of different leadership styles...................................................5
4. Leadership Styles which help Amazon Management to Grow..........................................7
5. Social Responsibilities, Response, and Obligations of Amazon.........................................8
6. Learning from the report......................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Leadership is the art in which the group of people are motivated and encouraged for
achieving the business goals and objectives and Business Environment refers to those
characteristic of surroundings of business organization, which effect or influence its operation
and determine its effectiveness. This report will help to understand Amazon Leadership quality
and how its effect on its business environment. Amazon is a e-commerce industry. It is world's
largest online retail store. This report present SWOT & PESTEL analysis and also show how
Amazon evaluate the changes in PESTEL factors which effected by SWOT analysis. This report
show different styles of leadership and recommend suitable leadership to Amazon to grow
further. It also present responsibilities, response obligation and social responsibilities in the
processes at Amazon. In the end of the report it will involve reflection report.
Task
1. Amazon’s SWOT and PESTLE analysis
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It is used to identify and
create right strategies for success of organization. It is generally used to analyse the impact
which the internal or the external factors have on an organization. Similarly PESTEL analysis is
use to measure external factor which affect organization. PESTEL stands for Politic, Economic,
Social, Technology, Environment and Legal (Gupta, Gupta, and Gupta, 2019.). It is used for
analysing and evaluating the micro factors of the environment which have some kind of
association with the business.
SWOT Analysis
Strengths: The company Amazon have effective leadership which helps in enhancing the
determination and focus for the betterment of the customers. It also leads the other companies in
gaining the competitive advantage regarding the use of IT services. Amazon is leading globally

and it is considered as the global recognition which helps in attracting large number of
customers. The company also makes use of the superior logistics.
Weakness: The operations of the company are contributing in the business margin of nearly zero
which becomes the weakness for Amazon. The strategy of diversification used by Amazon is not
giving it large profits instead ruining its progress. The company also gives free time shipping to
all the customers which is also becoming dangerous. The company also underestimates the
competitors which is hindering its progress and profitability.
Opportunities: Online payment is opportunity for Amazon it provides easier scaling for growth
in the business. The company can increase its productivity under its own brand and can spread its
business in different areas and can also expand in the global market which is also a great
opportunity for the company.
Threats: Amazon's biggest threat is competition from the local market. Aggressive pricing
strategy can be threat. Identify theft and hacking increase anxiety of online shopping.
PESTEL Analysis
Political: The government supports the operations and activities of the company Amazon
completely. Various cyber security options are provided by the government which makes the
company safer to perform all its operations thereby creating sense of trust and loyalty in the
company.
Economic: Amazon is economically stable in the emerging and developed markets. It is
increasing disposable income in the countries which are developing. The people across the world
are using the services of the company as it has products which can be afford by all class people
except China which is potential of economic condition, which is a threat to the Amazon.
Social: In market increasing in wealth inequality. Increase in customers in developing countries
it will effect to Amazon. Trend of online shopping in customers are increasing.
Technological: Technology is growing rapidly. Amazon increase in efficiencies in terms of IT
resource. Cyber crime rates is also increasing (Nekrasov, and Melnyk, 2017).
Environmental: Amazon is rising its interest in environmental programs. It also increase in
popularity of low-carbon lifestyle. It also rising importance on the property of the business.
Legal: Amazon has opportunity of rising product standard. Various regulations are imposed on
the various operations of the company especially the import and export which is referred as trade

regulations. Amazon also follows all the standards of the environmental pollution which makes
it legally safe and sound.
2. Analysis of strength, weakness, opportunities and threats from PESTEL Analysis
Political: Political factor is an strength for Amazon because it has complete governmental
support. It is also an opportunity for Amazon it can use its government implement for proper
cyber security. It help Amazon to increase their growth in market. International policies help
Amazon to growth in particular countries.
Economic: Amazon have stable economic and it is strength of the company it will help Amazon
to increase expendable income in developing countries. Economic recession in different
countries will be threat for Amazon. Currency fluctuation is also a weakness for amazon because
it deal in different countries. Customer prefer shopping from local market , paying the product
and getting instantly rather than going online shopping and it take time to progressing payment
and also take several days to deliver product it is a weakness of the company.
Social: Social wealth disparity is a threat for Amazon. In developing countries population is
increasing and it is opportunity for Amazon because it increase its customers. Online buying is
also an opportunity for Amazon it increase its profitability and growth in market. Ethical and
religious factor in society is a threat for Amazon.
Technology: Innovation in technology is opportunity for Amazon. It can launch new product in
market with respect to new technology (Hussain, 2019). Technology is also a threat for Amazon
because it increase cyber crime and hacking. Amazon is highly involves into the technological
field it is its strength and company achieved success from this strength from last couple of years.
Environment: Rising interest in the environmental program and increase in popularity of low-
carbon lifestyle are opportunities for Amazon. These will help company to increase their market
in the betterment of society and environment. Global warming or pollution westernness by less
car or any transportation service for shopping, by more online shopping.
Legal: In Legal factor rising product standard and environmental protection standard on the
business purpose is an opportunity for Amazon. Change in import and export will be an
opportunity in market growth.

3. Comparison and Contrast of different leadership styles
Leadership is integral part of management or organization. It play a important role in company.
It provide direction, guidance and confidence to the employee and helps organization to achieve
goals in easier way. It provide direction and vision for future to an organization. It is the process
of influencing and motivating for the activities of an individuals or a group on effort towards
goal or objective achievement. Leadership is the art of influencing and inspiring employees to
perform their task in better way to achieve objective of the company. Leadership is important for
such activities use of power, maintaining discipline, developing group morale and securing co-
operation etc.
Styles of Leadership:
Autocratic or Directional Leadership Style: In this style leaders do not involve or consult the
employees prior to the decision-making process. The leaders take the decision independently
which also is an advantage for the leader as they remain motivated to take the quick decisions for
the whole group. Employees only follow the orders of leaders. It is good in certain situations,
such as urgent task or military action. Disadvantages of this style is poor decisions, poor level of
employee motivation. Full potential of employees and their creative ideas are not utilize. If
leader is absent then organization continuity is threatened because employee gets no opportunity
for development.
Democratic or Participative Leadership Style: In this leadership style leader encourage
employees to take mart in decision making. In this style leader consulting with employees before
taking any decision. Advantages of this style is it improve the job satisfaction and morale of
employee. It helps in better decisions and employee motivation. It develop positive attitudes and
it multiply leader's abilities with their followers (Berraies, 2019). Disadvantages of this style is
delayed in decision making and take time in consultation. This style may not give positive result
when interaction of employees with leaders. In this style leader must need a strong
communication skills.
Laissez Faire or Free Reign Leadership Style: In this style of leadership, the leaders motivate
and encourage the leaders to give their contribution in the decision-making. Advantages of this
style is more freedom for employees. It also gave positive effect on job satisfaction and morale
of employees. In this style maximum possible scope for development of employees and full

utilizations of potential of employees. Disadvantage of this styles are few guidelines, little
incentive, poor motivation. Employee do not get the guidance and support of the leader and it
ignores the leader contribution just as autocratic leadership style ignore the contribution of
employees.
Current leadership and management style at Amazon: Current Amazon style has been
classified as Pragmatist. In this style leaders set high regulation and unapologetic expect those
standards to be met by themselves and by their employees.
4. Leadership Styles which help Amazon Management to Grow
Transformational Leadership Style: This leadership is also considered as the leadership of
understanding. The main aim of this leader under this style is the overall development of the
employee as it is basically the people-oriented style. Amazon CEO displays his leadership as
inspiring, energetic, passionate and enthusiastic. Undoubtedly he is highly recognized for his
leadership and work. The CEO influences the employees and basically empowers them so that
their performance can be improved. They are motivated to accept the challenges and perform up
to the mark so that they can be developed personally as well as professionally.
Transactional Leadership Style: Under this leadership style, the leaders monitor the
performance of the employees as well as train them along with making changes in their
performance. The employees are rewarded or punished according to their performance so that the
company’s expectations can be met. The CEO of the Amazon Company can be considered as the
true transactional leader who does not leave the employees on their own. He does not allow the
employees to be involved in the radical acts instead the high standards expectations are set by
him regarding the performance. This was also observed that the Amazon focuses on tracking the
performance of the employees so that they become able to achieve the measurable goals of the
company among which 80% are of the expectations of the customers (Fahlevi, 2019). The CEO
of the Amazon Company Bezos is considered as a true transactional leader.
Pacesetter Leadership Style: Under this style of Pacesetter leadership, the leaders aim to set the
performance standards so that the employees become able to carry out the vision. The employees
get motivated as they have to achieve the targets in the decided deadline or the timeframe. The
CEO of the Amazon Bezos proved to be very effective in this as he sets the measurable and

Smart vision according to which the standards of the performance of the employees are set and
the employees are encouraged to achieve those targets. This can also be seen as an online book is
started by the company which was named as Kindle which consists of almost 20 million items
for the customers. Although the company was criticised by many people because of the rapid
expansion and the success but the standards set helped in making it the world’s largest online
store.
5. Social Responsibilities, Response, and Obligations of Amazon
Amazon is considered as a well-known retailer company regarding the online business. The
company started its business by selling the books in 1995 and this can be seen today that the
company is selling each and every thing . It is providing its services in more than 10 countries
such as UK, China, US, India etc. Recently Amazon has trying to improve their image in market.
According to Business Dictionary CSR refers to the corporate social responsibility which works
for protecting the environment as well as the community. Companies can follow the CSR by
taking various initiatives such as minimizing the waste in all its processes and also by organising
various social and educational programs so that equal return can be gained according to the
resources used by the employees (Advantage, 2020).
Earlier the company Amazon was much criticised as it followed the unethical behaviour in its
many practices but due to its aim to become the top company which follows all the ethical
practices, the company has now became the top coming with the amazing use of CSR. Amazon
is considered as the most ethical company now though it was once a famous company which
followed all the unethical practices. It was also a famous company which could earn much profit
unethically. Amazon position is customer centric in which people can easily find what they need.
The company uses a very basic rating tool on its official website which is helped to gain the
feedback of the customers through the rating regarding its products and services. Amazon is
trying to provide best and high quality services in best price to its customers. Amazon is now a
stable company having larger customer base and also becomes able to earn larger profits (Ye,
2020). Also, there are no reports for the financial condition and the CSR programs. Amazon also
donate electronics device to schools and organization such as 'Girls Who Code'. Amazon also
pre-pays for its employees to encourage them to develop their skills.

6. Learning from the report
From this report I got deep knowledge about the company called Amazon. Their style of
working, concept, vision and mission of the company along with the various countries in which
they are operating. While making this report I got to know the strength, weakness, opportunities,
and threat of the company and how the company dealing with these situations as I did swot
analysis of Amazon as well as the PESTLE analysis for the company. With the help of PESTLE
I got to know what are the political, economical, social, technological, legal, and environmental
factor are affecting the working of Amazon and how Amazon is using theses factor as a form of
new opportunity. Swot helps the company to utilize its strength to reduce the weakness and
threat, same as Pestle helps the company in cost reduction, exploring new opportunities because
while analysing Pestle I got to know various internal and external factors which can help the
company in expansion. As these factors are very important for any company to expand their
business across the national boarders. During the preparation of this report I got to know the
different style of leadership like- Autocratic, democratic, laissez-faire, leaderships and how
Amazon is using these stylers of leadership in its day-to-day operations and workings. This
leadership style plays a vital role in any business if the leader is supportive and always encourage
its team, it reflects on the profit of the company (Ives, 2019) I got to learn various leadership
styles like autocratic leadership in which the leader thinks that they know everything and don't
take suggestions and views of other people while in democratic leader believes that “what do you
think” this kind of leader take the point of view of the employees while taking any decision. In
laissez-faire style leader trust the team and believes that people know their work very well. From
this analysis I learned that a good leader is very important because leader distributes the right
work to right person and this benefits the whole company. I have learnt the corporate social
responsibility of the Amazon that they are doing various activities for the society, poor children,
welfare and development of women. Amazon provides study material, computers and laptops to
the schools which is nearby its go-downs and warehouses, it gives equal employment
opportunities to men and women. They do various campaign activities in the draught affected
areas to let people know how to save rain water. By writing this report I got imminence
knowledge about Swot, pestle, leadership style and CSR activities.

CONCLUSION
From the analysis of this report it can be concluded that it reveals the necessary information
about the company called Amazon, its product, major competitors etc. This report is based on the
Swot analysis for analysing the internal factors as well as the Pestle analysis for evaluating the
external factors of Amazon and by analysing these factors it shows that how amazon is
implementing it in the development and expansion of the business across the national borders
and territories. Swot and Pestle analysis helps the company to know the numerous factors which
affects the company in a positive and negative aspect as well. This repost describes the various
leadership styles and the current leadership style which is being followed by the company. This
report elaborates the corporate social responsibilities performed by Amazon for the prosperity,
welfare and development of the society and environment.
REFERENCES
Books and journals
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Strategies in Transitioning and Emerging Economies, p.65.
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Berraies, and et.al, 2019. Do leadership styles promote ambidextrous innovation? Case of
knowledge-intensive firms. Journal of Knowledge Management.
Fahlevi, and et.al, 2019. Leadership Styles Of Food Truck Businesses. Journal of Research in
Business, Economics and Management.13(2). pp.2437-2442.

Gupta, A., Gupta, N. and Gupta, M., 2019. British Airways-A SWOT and PESTLE Analysis-The
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Ye, and et.al, 2020. A bibliometric analysis of corporate social responsibility in sustainable
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