Leadership and Business Environment - Case Study

This case study focuses on the leadership and business environment at Amazon. It includes a SWOT and PESTEL analysis, comparison of different leadership styles, and a recommendation for a suitable style for Amazon's growth.

Leadership and Business
Environment – Case Study

Table of Contents
INTRODUCTION...........................................................................................................................3
Perform a SWOT and PESTEL analysis for Amazon.................................................................3
How the changes in PESTEL factors has influenced the Opportunities and Threats business.. .5
Compare and contrast the different styles of leadership. Comment on the current leadership
and management style at Amazon...............................................................................................6
Types of leadership......................................................................................................................6
Recommend a suitable leadership style that will match their management style and help
Amazon grow further. Justify your choice using appropriate literature. (10%),.........................6
Responsibility, Response and Obligations...................................................................................7
The second part of the project will involve writing a reflection report on your experience in
writing this report.........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCE.................................................................................................................................10

INTRODUCTION
Leadership refers to the ability of a leader to effectively lead a group of people towards
the attainment of the various types of goals and objectives (Becker, 2018). Business
Environment refers to the various external factors which are quite influential in impacting the
overall activities of the business. In this case study, focus will be made on Amazon. It is an
American multinational company which focuses on providing different types of products and
services to the various customers. In this case study, specific analysis will be made on
Leadership and Business Environment of Amazon.
Perform a SWOT and PESTEL analysis for Amazon
SWOT Analysis: This can be defined as tool which uses by organisation to identify their
strength, weakness, opportunities and threats. By using this, management can get information as
how they can maintain the activities and develop the programme which can help to increase sales
and profitability. The SWOT analysis of Amazon is defined below:
Strength: Weakness:
 Amazon is having strong brand name
as it offers variety of products by using
online and offline.
 This organisation is filling daily needs
that make customer oriented brand.
 Offering products and services at retail
prices.
 Larger number of third party seller by
using a platform.
 Losing Margin in few areas.
 The organisation has limited brick and
mortar presence (Bratton, ed., 2020).
 Unfair use of third party data by
engaging in unfair trade practices.
 Employees went on strike because of
unsafe working conditions.
Opportunities: Threats:
 To use self driving technology that
helps to improve the delivery network.
 To fill the customer demand and
provide products on offer on the special
occasion
 Government regulations that can be
threat for Amazon's business
proceedings.
 Increasing cybercrime
 Aggressive competition

 Expansion of physical stores that make
happy to customers while shopping.
 Bring innovation in products and
distribution process.
 fake products.
PESTLE analysis: This is a tool which uses by organisation to analyse the external factors and
know how they impacts on business. The PESTLE analysis of Amazon is defined below:
Political: This factor is related to government policies and regulation that need to
consider while operation and regulating a business. Amazon is running and expanding their
business activities by using brick – and – mortar operation that supports to operate business.
Moreover, government supports such organisation to expand their business in other country by
using online operation (Viana and et.al., 2019).
Economical: The economy of any country is needed to consider while operating the
business that can help to perform all functions. In U.S and other European countries economic
activities are stable that helps Amazon to minimize the economic issues and increase retail
business. The inflation rate of U.S is stable which supported chosen organisation to sale their
products in high range.
Social: This is related to needs and wants of people, life style and culture that need to
consider while running a business. Amazon is offering the variety of products and services as per
customer demand but sometime it does not fill the customer's desire which can be negative
points and might be affect business negatively (Putra and Cho, 2019).
Technological: The world is changing where it is important for organisation to use the
new technology as can help to increase sales and profitability. The Amazon is improving its
performance and profits by using new technology such cloud computing, online streaming
competing, AR, and VR that attracts the large number of customers and increases the number of
profitability ratio (Simões, 2020).
Legal: It is important for organisation to adhere with all legal requirements and
regulations in relation to business that can promote the business in macro environment. Amazon
is following rising product regulation, import and export, employment regulation, health and
safety standard that attracts large number of customers and increase sales.

Environmental: This factor is needed to consider as environment related to business is
most important that maintain economical changes. As Amazon is providing products online that
helps to save transportation and transaction cost which can help to increase the sales. This also
focuses on minimum wastages and low carbon styles that create opportunity for organisation to
attain high range of customers. Moreover, it has plans to deploy 10000 electric rickshaw for
delivery by 2023 that would build customer trust more and generate more income (Birasnav and
Bienstock, 2019).
The factors of macro environment are defined above in relation to Amazon that provides
somewhere opportunity and benefits to business as operate continuously and increase the
performance by generating competitive advantages. Social factor can be challenging for selected
organisation as it create different demand as per different culture that might be difficult for
organisation to consider while operation.
How the changes in PESTEL factors has influenced the Opportunities and Threats business
From the above discussion it has critically evaluated that stability in government and
inflation rate are related to political and economical factor that create opportunity for Amazon to
operate their business and sustain for long period. Technological activities such as cloud
computing, AR, VR, and online marketing is impacting positive on business and it create
opportunity for running business efficiently. This organisation also focuses on high quality and
minimum wastages of product that increases performance and build customer loyalty effectively.
Oppositely, social factor can be threat for chosen organisation as needs of customers are
continuously changing that create a challenge for organisation to understand and offer kind of
products (Villaluz and Hechanova, 2019).
The SWOT analysis states weakness of Amazon such as unfair use of third party data, losing
margin, and employees went on strike can be converted in strength by formulating effective
planning, using different marketing strategies and bringing the ethical standard in their activities
that will help to manage the business. The threats such as fake products, cyber crime, and change
in government regulation can be manage by dealing with global controversies, consolidating the
market dominance, entering in developing countries, and enhancing network security that would
change in opportunity (Li and et.al., 2019).

Compare and contrast the different styles of leadership. Comment on the current leadership and
management style at Amazon
Types of leadership
DEMOCRATIC LEADERSHIP- It is a type of leadership which is used more often as it is
very effective and efficient too (Paudel, 2019). In this the leader take opinion of all and then it
decide about the one that is to be chosen that'll fulfil the objective. If Amazon uses this it will
benefit it as all the employees must feel that they are an integral part of the firm when inputs
from all are taken so it will help in overall growth and profits. This will make a better
relationship between superior and subordinate.
AUTOCRATIC LEADERSHIP- This type of leadership is not commonly used as it is not
much effective and efficient. It is opposite of democratic leadership. If Amazon uses this type it
will hamper the growth and profit of the firm as in this leader does not consider others before
taking decisions neither it takes their inputs into consideration. It can make the system rigid and
the environment can become toxic because of it as subordinates might develop an ill feeling
regarding superior and this can lead to the downfall of an organisation. Amazon has a vast
number of workforce and it would not be feasible to use this approach.
TRANSFORMATIONAL LEADERSHIP- This type of leadership is effective as it has the
ability to transform things around. In it leader keep pushing employees to do their best. Amazon
can use it as it can be very helpful because of its large employee base. It can help a person to
identify the ability by doing the work in the given time limit. At first work seems to be simple
and easy but as time passes level of both the things are upgraded and employees are pushed to
get the work done. This ensures that the firm does not lack behind as well as it improves the skill
set of the person which helps in the long run.
LAISSEZ-FAIRE LEADERSHIP- In this style of leadership the organizations are
managed and run by people working in the lower-level management. The leaders who are
working in Amazon can make the use of this style by ensuring that they provide a free rein to the
workers in lower-level management thereby helping them in taking proper decisions. By
providing a free rein to them, their active participation in the decision-making process can be
ensured thereby leading towards the attainment of goals and objectives.
STRATEGIC LEADERSHIP- In this style of leadership, the organizations are set a
strategy by the leaders on which they have to work. The leaders of Amazon can adopt this

strategy as by making its use they can ensure that the work is handled effectively by the
employees of the company as they are given clear tasks, roles and responsibilities according to
their capabilities.
Justification- Transformational Leadership Style is the most recommendable style for
the Amazon's managers. By making its use, the management of the company will be able to
ensure that it can transform the entire working pattern of the company effectively and efficiently.
In this way they will be able to make sure that the decisions are taken according to the situation
within the organization and suitable changes are brought according to the requirement of the
company.
Recommend a suitable leadership style that will match their management style and help Amazon
grow further. Justify your choice using appropriate literature. (10%),
From the above defined many leadership Amazon is using Transformational leadership
style that is effective leadership style in order to manage the change and complete the work in
changing environment. Jeff Bezos who is the founder the the CEO of Amazon uses
transformational leadership style as it is very beneficial for the owner, company and for the
employees. It can benefit an individual as employees are pushed hard to achieve a set of goals so
it can help the person as the net worth of the company will increase by this due to which the
worth of individual will also increase. It is beneficial for the company as the objectives are
finished on time or well before time so it has the time to rectify any error if there are any. It can
help an employee to grow personally too as it can be beneficial for the skill set which can be
useful in his career.
It has recommended that Transformational leadership style is matches with democratic
management style in which when ever Amazon brings changes by using new technology then
work is divided between employees by understanding their skills and talent to accept challenges.
This can help to solve the problems and manage the activities in changing environment as
management and leader of chosen organisation thinks to introduce new changes and share with
their team that can help to respond properly and attracts larger number of customers. This helps
to increase the organisational sales and profitability in changing environment. The leader of
Amazon compete with other retail business and bring changes that can can help to expand their
business and maintain the sustainability. Therefore, transformational leadership style will help
Amazon to grow their business in upcoming period by improving existing product and providing

training to employees so they would easily accept the changes and maintain higher performance
(Bartsch, Weber, Büttgen and Huber, 2020).
Responsibility, Response and Obligations
Amazon gives utmost importance to its Ethics and Responsibility (Paulienė, 2017). It
follows the ethics in the following manner-
 Respect towards law- Amazon ensures that it is able to follow the different types of laws
which have been set by the government (Schoemaker, Heaton and Teece, 2018). In doing
so it fulfils its responsibility in a highly effective manner.
 Safe workplace- Amazon has to ensure that it is able to create a safe workplace for all.
By doing so it is able to ensure that it is able to provide its response to the problems
which are faced by employees while working in the workplace.
 Creation of value- Amazon ensures that it creates sustainable value for the people of the
society. By doing so it is able to fulfil its different obligations in a highly effective
manner.
In the way it follows ethics, Amazon also ensures that it fulfils its social responsibility in
a highly effective manner. It fulfils its social responsibility towards the following-
 Customers- The customers are quite important for Amazon (Swanson and Frederick,
2016). This is so because their entire business is dependent on them. Thus, the company
fulfils its social responsibility towards the customers by providing them with the right
products and services which can be beneficial for them. Also the company ensures that
the appropriate value is provided to the customers for these products and services so that
the customers get value for the price which they are paying. In this way it fulfils its
responsibility.
 Employees- The employees are also very important for Amazon. This is so because they
are the ones who manage the work of the company. Thus, the company fulfils its social
responsibility towards them by ensuring that they are provided with appropriate facilities
at the workplace. In this way, it ensures that it is able to keep the employees highly
satisfied and motivated. It provides an effective response to the problems faced by the
workers in this manner.
 Communities- The community is also important for Amazon. This is so because it is
required to provide the desired value to the people of the society through the products and

services which are offered by them. Therefore it makes sure that by providing the right
products and services to the customers and being environment-friendly it is able to fulfil
its obligation towards the society.
The CSR activities of Amazon were fulfilled as a part of its Responsibility. This is so because as
it operates within the society it makes use of the resources which are available in it. Thus in this
way the management of the company ensures that by fulfilling its responsibility it can contribute
towards the society.
The second part of the project will involve writing a reflection report on your experience in
writing this report
As I study and researching about leadership and management of Amazon I improved my
knowledge and experience that would help to make future plans and complete the task on time.
Leader is important for organisation who understand the needs of employees and provide them
many benefits which can help to retain them and increase the organisational profitability. While
research I noticed that my team work and customer relationship bonding is very good where I
allotted work between my team members and I personally contacted with customers to know
what are their expectation regarding products (Feng, Wang, Lawton and Luo, 2019). By using
the Gibbs refection model I increased my knowledge in research area that helped me to feel that I
am able to handle the problems, providing good solution, changing threats in to opportunities,
maintaining positive attitude and delivering right information which is highly important to be a
good leader and becoming a business concern. While using model I gained my leadership and
management skills that will help me to take any projects effectively that is related to Description
phase. In Feeling stage I realised that I had lot of work to complete research buy my work
division quality solve the major problem where I felt good. In third stage, I evaluated that is
work done in proper situation that helped me to maintain quality of work and proper structure. In
the stage of analysis, I analysis my own skills and talent that helped to do things well and
complete the work. In conclusion, I was nearing to getting results of research which was done by
me and curious to know what skills I have improved in myself. As I learned problem solving
skills, managing work, task allocation etc. that could help to handle each situation. Moreover,
Action plan I uses to implement smoothly all changes and do work differently by developing
required skills that supported to complete my research and maintain high performance. These all
skills of my will help Starbucks to increase their sales and profitability in typical situation and

completing the project on time. As a leader I would handle all problems and provide better
quality of products that will encourage customers and retain them regularly.
CONCLUSION
From the above report, it can be concluded that Leadership and Business Environment are
very important for an organization. Therefore it is crucial for the organizations to take them into
consideration. SWOT and PESTEL can be done to know about Internal and External
Environment. Changes in PESTEL factors can create an impact on the Opportunities and
Threats. There are different styles of leadership which can be used in an organization. A leaders
has to select a leadership style which can be helpful in effectively leading the company. There
can be Responsibility, Response and Obligations in Ethics and Social Responsibilities of a
business. The use of a Reflection report can be made in providing a detailed experience in
writing of the report by reflecting back on the experience.

REFERENCE
Books and Journal
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Bratton, J. ed., 2020. Organizational leadership. SAGE Publications Limited.
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performance: The joint moderating effects of ethical leadership and competitive
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behavior in sustainable organizations: Test of mediation and moderation
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