Leadership and Business Environment

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