Energy Demand Management Strategies

This assignment focuses on the historical review of demand side management (DSM) in China by Ming et al. (2013). It requires a comprehensive understanding of DSM content, operation modes, results assessment, and relative incentives. Students will analyze DSM strategies, evaluate their effectiveness, and discuss potential improvements for energy efficiency and sustainability.

Management and
operations

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
a) Definition of leader and manager ......................................................................................1
b) Comparison of roles and characteristics of leaders and manager in TESCO....................2
C & d) explain the role of leaders and functions of managers with example in the organisation
................................................................................................................................................4
e) Applications of leadership model that are applied in the organisation by manager...........6
TASK 2............................................................................................................................................7
a) Key approaches to operations management.......................................................................7
(b) The role of leaders and managers in operation management ...........................................9
(c) Importance and values of operation management for attaining goals and objectives . . .10
(d) Environmental factors that impact on Amazon..............................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Operation management is related to production management in organisation so that easily
convert raw material and inputs into finished goods or services. This entire concern with
designing and controlling department of operation for better products or services which help
organisation in fulfilling customer’s needs and wants. Work done according to the plan, rules and
regulation help organisation in achieving its goals and objective in efficient along with effective
manner. Overall process include in operation management is watching, controlling, evaluate and
examine work of employees so that, there will be maximum productivity with minimum uses of
resources (Ale, Bowling, and et. al., 2010). The whole report is based on TESCO Company
which deals in grocery items founded in 1919 by Jack Cohen. The same organisation has 6,553
stores deals in Hypermarket, Supermarket and superstore. Below mention assignment define
leader roles and mangers function for development of organisation. Apart from this, case study is
given which is based on Amazon Company that is e-commerce industry dealing in various
products and services. Relevant to same case key approaches to operation management are
described. On other side, vale and importance of operation management are explained for
obtaining objective of Amazon. The report will be describe significance of operation
management in attaining goals and objectives of a business organisation.
TASK 1
a) Definition of leader and manager
Leaders- They are the person who influences team and individual for achieving
organisation goal. Leaders play important role in organisation for motivation personnel’s to work
for the mission and vision of company. Leaders are expertises in motivating and encouraging
employees and other staff for do work in effective manner that will help in their as well as
organisation growth. A mnemonic for the same definition can be explained with 3P’s Purpose,
Person, and People. Motivation can be in terms of money and other can be rewards, promotion
many more. Same are the person who having authority in organisation to tell other what do? And
how to do? Apart from this, other people in company follow leaders the way they work. Leader
makes team according to employee’s skills, ability and specialisation to work on common goal
for completing task efficiently and effectively (Baboli and et. al., 2014).
Managers- They are the person design and control various department tasks for smooth
flow of company. Manager is the person who play important role in firm for performing various
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task and gives proper guidelines or direction to employees who help them in achieving goals and
objectives according to planning done in advance. He/she is able to do planning, organising,
leading, co-ordinating, controlling various task and work performing in company. Every level in
organisation has their own managers so that this will help in time saving or reduce overlapping
of work and also help in achieving particular department goal. Main work of manager in firm is
managing and monitoring performance of personnel and company also because if brand is
having its image in market then it is good for sustaining in business environment. Performance
Appraisal is motivational tool conducted by managers in every month end for encouraging them
to perform work efficiently and effectively this is done on regular basis.
Leaders and managers both are important part of TESCO they play vital role in
motivating employees for doing work efficiently and effectively for maintain image of company,
brand image and continuous performance maintenance (Branch, 2012). The given company need
functions and role of leader and manger to perform their organisation work in efficient manner
for better productivity, maximum profit and to gain customer satisfaction.
b) Comparison of roles and characteristics of leaders and manager in TESCO
Managers and leaders both are the person help in TESCO future growth and success.
Both are changeable but work of there remains same for organisation in achieving its goals and
objectives. TESCO have its single goal but different ways and tools to achieve them and these
are explained by managers or leaders to employees so that they can perform work easily.
Manager helps in deciding vision and mission of organisation. On other hand, leader
conveys that to other employees for working on them. Both also help in inspiring employees so
that they work properly for achieving mission and vision in appropriate manner. Leader take
conflicts as assets and promote changes whereas managers avoid conflicts for better results but
take changes as opportunities.
Manager and leader both have different characteristics and role in TESCO which support
given organisation in better results from inputs comparison are explained below-
Difference between leaders and managers: -
Managers Leaders
Managers are necessary part of organisation
because they help in setting mission, vision, goal
and objectives of company (Burke, 2013).
Leader is the one who monitor particular
team and work on the targets given by
managers.
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They take part in making company policies,
procedure, setting goal and after that
communicate these to leaders and other staff
members.
When manager give instruction to leader
after that work of leader start to
communicate these information to other
employees so that they get inspire to work
according to TESCO procedure and
policies.
They gives direction and guidelines to leaders or
teams which help in achieving TESCO goal’s
and target by them.
He/ she also carry out their mission by
provide most excellent instructions and
pathway to group members in the direction
of well define goals and objectives of
company.
Managers are the creator of new ideas and
innovations for organisation betterment and
improvement in services and products.
They apply those planning and idea for the
reason of product's enhancement. Leaders
mainly focus on implement the latest
innovation into realism (Chen and et. al.,
2011).
Managers are task oriented they mainly focus on
completion of assigned task in effective or
efficient manner.
Leaders are motivational tool of
organisation which helps employee’s
satisfaction and motivation. Apart from
this improvement in personnel
performance help company in many ways.
Main work of managers in organisation is to
achieve firm goal and increase profit. Generate
more and more profit from the employees
working in enterprise.
They only encourage and persuade
personnel behaviour to achieve task
assigned them and objectives of
organisation.
Manager work in TESCO is to assign target to
employees and give them direct to work on the
same.
Leaders inspire top level employees to
give their hundred percent performances
and enhance productivity of organisation.
They remain for whole organisation. Work for
overall benefits of TESCO.
Leaders are the person who takes
responsibilities of their own team or
department.
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Manager style is transactional. Style of leader is transformational.
They are the risk taker for growth and
development.
They minimise risk to perform task in
proper manner.
Manager and leader both have their different role and function in TESCO but both play
important role at their level in company. Hence, they are necessary parts for given organisation
to increase their productivity, profit maximisation. Because managers organise employees on
other hand leaders assign personnel.
C & d) explain the role of leaders and functions of managers with example in the organisation
Role of leaders- they are the person important for organisation and play crucial role in
managing team and its member also helps in encouraging or motivation employees for
companies benefits and increasing productivity. Hence, leader has various roles some of them
are explained below- Requires at every level: organisation have three levels top, middle and lower. At top
level, necessary for cooperation in implementation of policies and plan. In middle and
lower level leadership is required for implementation and formulation the decision taken
by top level (Cruz and Marques, 2011). These help in increasing production with the help
of employees working in it or also generate more and more revenue. Representative of organisation: leader is the one who present their company in front of
other through seminars, conference, general meeting and many more. Representation can
be for inside and also for outsiders. In the company they represent particular department
in which they are dealing. Whereas for outside can be for stakeholders and investors. Integrate and reconciles the personal goals with organisational goals: in company
every individual has assigned a particular goal in this leader role in to combine personal
goals so that they can gain organisation goal. Efforts of every person is combine for a
common purpose this can be done when employees are willing to do that or can be
influenced by individual. He solicits support: leader is a person who considers and request support and co-operate
of subordinates. Personality, intelligence and maturity which results them positivity. This
help them in solicit full support of employees which motivate them to do work and
increase productivity in effective manner (Expósito and et. al., 2016).
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 As a friend philosopher and guide: he/ she must acquire 3 dimensional characters.
Employees can feel friendly with leader and they can share the feelings, desires, opinion
and new ideas. Apart from this they are philosopher and guide for employees working in
organisation because they use experience and knowledge in guiding personnel so that
they can work efficiently and effectively in TESCO. Sometime leader play role of
councillor also for solving problems of employees.
Function of managers- manager perform important function in deciding organisation
goals and objectives after making all these they communicate these to employees so that they
work according to that. Telecommunication sector needs daily new ideas and innovation so that
they can increase their business (Fayol, 2016). Manager continue monitor and control production
department so that quality of product and services TESCO is serving should be fine and help in
maintaining their brand image in competitive market. They have several function performed by
them in TESCO are explained below-
 Planning: this is the main function performed by managers plan should made in this
manner that it will be beneficial for TESCO. This is done for achieving organisation goal
and objective. It considers what to do? , How to do? , when to do? Many more things are
decided for future. Planning is dynamic in nature require changes according to
modification in business environment.
 Organising: this is the second step after planning, now manager make team according to
requirement to achieve pre determined objectives and goal. Manager of TESCO edge on
supervision people in the company so that they can attain pre determine targets.
Utilisation of resources should be in effective manner as well as partition of materials
between several tasks so that generate maximum revenues (Handschin and Petroianu,
2012). Some essential elements like handover work and giving authority to employees
working in organisation.
 Staffing: it is required when there is need of more employees or can be done with
existing personnel. Staffing includes various processes such as recruitment and selection
for vacant position apart from this training and development of new candidates as well as
existing for enhancing their skills and knowledge. Aim of this process is to utilise man
power in proper way and human resource management for achieving organisation goal or
task assigned to individual.
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 Leading: manager gives direction to employees and other staff member to work
according to set targets. Managers play various roles in TESCO like communicating
messages, motivating and encouraging, also guide personnel. Therefore, employees
perform well in proper manner and help in achieving objectives (Lindström and et. al.,
2012).
 Controlling; it simply means monitoring and controlling overall organisation that what is
going on in company and that is beneficial for the or not. TESCO company manager also
perform this for increase productivity with minimum utilisation of resources and this will
help in no wastage of funds or resources the same generate maximum revenue they can.
e) Applications of leadership model that are applied in the organisation by manager
Leadership theories and models are extremely helpful for building good working
atmosphere and the same also helps in control workforce in effectual way and give appropriate
guidelines for achieving objectives and goals. Key person of organisation are leader and they
leads whole group members or workers. They encourage and inspire behaviours of every person
in achieving pre determine goals or objectives (Lisi, 2010). Leaders focus on overseeing
individuals so that; output can be increased because they motivate them for performing whole
duty in adequate manner in the direction of TESCO goals. For generating most excellent
outcomes, leaders have to keep up relations as well as put up synchronization system. Leaders of
given company mainly focus on rising production and efficiency throughout adoptions of a
variety of leadership theories and styles. Some of them are explained below –
Situational theory: this is also called contingency theory this mainly focuses on
behaviour of leader in different situation and does not attribute or quality. This approach stresses
that a leadership behaviour which is effective under one particular situation may be ineffective
under the other. If a leader behaves in the same manner under all situations, he/ she may fall.
Thus, the same theory states that leadership is powerfully affected by the situation under
which a leader works. These situations are created by the following forces: leaders, subordinates
and condition. Apart from this there are various situational model of leadership have been
developed (Ming and et. al., 2013). Fildlers’s contingency model, Blanchard’s model and Path
goal model etc. The same approach emphasises that emergence and success of a leader is largely
determined by situational factors apart from the traits or behaviour of the leader himself.
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Behavioural theory: this theory mainly focuses on what the leaders do i.e. on the actual
behaviour of the same. Thus, behaviour approach of leadership attempt to emphasis actual
behaviour or dimension in order to identify leadership. It is based on the premise that effective
leadership is the result of effective behaviour of the leader. Hence, success of leadership depends
on the behaviour them and not on his traits. A particular theory pattern of a leader makes him a
successful and its opposite would reject him as a leader. The same approach asserts that
favourable or functional dimensions of behaviour of leader provide greater satisfaction to his
subordinates and hence, they recognise him as their leader.
Behavioural approach to leadership assumes that a leader uses conceptual, human and
technical skills to influence and lead his subordinates. Several attempts have been made to
identify the basic dimension of leadership behaviour. This also helps overall improvement of
personality approach. It identifies the behavioural dimensions of leader that may contribute to the
success of the same (Neck and Manz, 2010). But this approach does not use scientific tests. It
uses questionnaire, observation and interviews to identify dimensions of behaviour. Hence,
dimension cannot be measured objectively.
Personality theory: This theory mainly focuses on the personal qualities or traits of
leaders. Such theories include the following: (A) Great man theory, and (B) Trait theory.
A) Great man theory of leadership- This theory of leadership claims that “leaders are
born, not made”. The same says that asserts that great leaders are born with necessary qualities.
There qualities are inherited or carried in genes. Leadership virtues cannot be acquired or
developed through formal education and training.
B) Trait theory of leadership- this theory is modified version of the above explain
approach. According to this the same is the largely function of certain traits or qualities. Apart
from this it also state that there are certain unique qualities or character essential for a successful
leader (Smith, Rahn and Wang, 2010). Any person who wants to be a successful leader must
possess those traits. Instead of all above it also emphasis that these behaviours need not
necessarily be inborn but may be acquire through practice, education and training.
TASK 2
a) Key approaches to operations management
Operation management basically manage department of products and services which are
produced by workers for the person who will consume these. As per the given case study
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Amazon Inc. also considers its management of production department for better outcome in
effective and efficient manner. This includes appropriate planning, controlling for converting
inputs into better output. Whereas, inputs can be money, labour, raw material and out are
finished goods. Operation management includes two terms are logistics management and supply
chain management so from all that Amazon can guide the company in suitable way and handle
its operations at worldwide stage.
 Lean manufacturing: this is the approach, used by Amazon Company’s manager
through which they can control or organize of the complete production system.
Implementation of the same helps in reducing wastages as a large amount as achievable
for effectual goods and services. Mostly this is applied for proper utilisation of available
resources and funds for producing better quality of goods (White, 2016). Amazon Inc.
must be focal point is minimising wastage of material available for production so that
help in improving productivity. Saving funds and resources can be helpful in future and
if minimum use is there then it will reduce cost of product this will help in easily
attracting customers or they become loyal towards Amazon services and products.
 Six Sigma: this is essential aspects along with key approaches for the reason that this is
useful in total quality control of given company. They have to spotlight on the products
and services quality they are serving instead of growing business so it is must be
requisite for getting better performance level of Amazon. This approach or theory is
ready to lend a hand in generating income and declining work expenditure. There is a
range of equipment and techniques that can be utilize in Six Sigma such as potential
defect calculation, trending chart, ratios and several more. Controlling quality is not
only for product but many other thing require maintaining their quality in organisation.
Lean and sigma both applied together in Amazon than these will be more beneficial for
the given company.
 Total quality management: TQM( total quality management) theory and approach is
focus on enhancement of presentation, worth of services and goods or other intrinsic
worth which helps in improved customers happiness the same is extremely useful in
taken as a whole quality supervision and manage of services and products. Total quality
management is appropriate for several department of Amazon Company and which built-
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in customers and employees. TQM is essential for every kind of company because
maintain quality helps is satisfying needs and wants of customers in many ways.
These key approaches of operation management help organisation in elimination of
wastage, managing quality and reducing chances of mistake from whole organisation as well as
also in total quality management of goods or services served by respective company.
(b) The role of leaders and managers in operation management
Leaders and managers both have a crucial role in managing working activities at
workplace so as to accomplish its goals and objectives in an effective manner. But there is a huge
differentiation between the roles of a leader and a manner that is described as under: -
Roles of a leaders Provide direction – In Amazon, leaders are liable to implement vision and emphasis on
its importance for everyone. For this purpose, they create certain activities so as to make
possible attainments (Winget and Thomson, 2010). Leaders also cope with the external
changes for which strategies have been produced. Align people – Another role of leaders is to align people with all activities or task as they
can work with proper coordination or cooperation. Business leaders have ability to
influence their subordinates and gain maximum output from them. If staff members are
properly aligned with working activities then will produce more and more. Motivation and encourage – Leaders are liable to organise training and development
sessions for their team members so as to boost up their confidence level to do a task
confidently. Beside this, they also sets some rewards for better performance; it motivates
people to work hard and effectively.
Role of a manager Liaison role of a manager – The person has to execute these functions, such as-
motivation team spirit, communication etc. Managers of Amazon are also liable to cope
all liaison activities. It aids him to interact with other outsider managers so as to get
secure or accurate information (Ghosh, 2012). In liaison role employers represent their
organisations in very formal manner. Monitor role of manager – As wide network of contacts, managers can gather
information by analysing business environment, like peers, subordinates and superiors.
They seek information from internal and external aspects so as to understand
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organisational cultural. It can be done by interacting with other and reading journals or
newspapers in order to recognise the changes in customers' preferences. Hence, it can
said that managers have proper information about internal and external environment of
the company by monitoring them properly.
 Figurehead role of manager – In Amazon, managers performance perform their duties
in symbolic nature, like welcoming visitors, signing legal documentations, taking
imperative decisions etc. In other words, there are some social, legal and ceremonial
responsibilities of a manager; the person also gives direction to leaders for completion of
a specific task.
(c) Importance and values of operation management for attaining goals and objectives
Operations consists with manufacturing goods or services; its a process of adding values
in inputs so as to convert them into outputs. Operation management is the area of business which
is associated to ensure that all activities or tasks are done in proper manner or not. It also links
with maximum utilisation of available resources, distribution of products and evaluation of
queue system (Benitez-Amado, Llorens-Montes and Fernandez-Perez, 2015). In Amzaon,
operation management department is liable for managing, controlling and improvising all
business functions that include in manufacturing procedure. Its effectievness and efficiency can
be examined by the application of ISO 9001 quality system or TQM (total quality management).
Thus, it can be said that, operation management also helps in improving the quality of products
and services of a firm; if customers receives value added goods then it extend sales and
profitability of the company in a short time of span.
Furthermore, the field of study is emphasis on proper planning, scheduling and
controlling all working activities of a manufacturing organisation. It also encompass the study of
management information system, industrial engineering, production, quality and accounting
management which hinders the organisation.
Better customers' satisfaction – The prime motive of operation management is to boost
up the quality of services or goods so as to gain higher customers satisfaction level. If consumers
will attain and retain their interest within organisation then it can easily accomplish its goals and
objectives. But firms are needed to satisfy customers' wants in the best possible manner by
giving then new and innovative experience of online shopping (Poelmans, Reijers and Recker,
J2013). Amazon can adopt fast delivery options by making changes in its operations. Beside this,
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operation management also generate strong public relations by understanding their needs; it also
creates a loyal group of key customers who helps in enhancing sales revenues.
Building good brand image – Another role of operation management is to create a great
brand image of the company in target market. It helps firm to compete with rivals and obtaining
high competitive edge from them as it supports to deliver effective services, i.e. on time delivery
and easy return policies etc. The online market giant Amazon is focused on improving its brand
image across the world rather than business expansion.
Raising profits – If a business organisation focus on its operations and manage them
properly, then it aids in increasing the quality of its commodities by adding values in it. Thus it
increases sales and overall turnover the firm in a certain time period (Jiang and et. al., 2012).
Amazon highly concentrate on its working activities, it tries to provides better quality of services
to their end users. Thus the number of consumers' automatically increase towards the firm. It
raise financial capital for the company through which they can easily achieve desired goals and
objectives from target market.
(d) Environmental factors that impact on Amazon
In this competitive era, there are several factors that can affect on Amazon sales or
profitability in positive or negative manner.
Decision making factors: -
Owners – Business owners are the people who have invested in the company they also
have property rights on it; they can also claim on organisation. Along with this, a owner can be
an individual or a group of people who starts the firm. In some cases, owners bought company's
share and they have right to change the all policies of the organisation. Business owners of
Amazon also put a huge impact on its working activities; they help management in their decision
making process.
Vision and mission – The mission statement of Amazon is to leverage technology and
the expertise of our invaluable employees to provide customers best shopping experience on the
internet. Whereas the vision statement of the company to be the earth's most customer centric
company by build a place where people can come to find and discover anything they might want
to buy online. Therefore, it can be said that Amazon has effective vision and mission that direct
employees' to work in same manner. It helps company to spread at global level by reaching
maximum number of customers.
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Value system - The value system of Amazon is a coherent set of beliefs adopted by the
organisations; it acts as a standard which guides management how to behave in all situations.
Along with this, it helps managers to distinguish what is right and what is wrong. An effective
value system also helps in decision making process of business entities.
Employees – Human resource or workforce is the most essential component of internal
business environment. Employees are the person who perform all business functions. Thus, if
management is capable to manage workforce properly then it beneficial for company in terms of
increasing output level. It is also assistive in attaining and retaining staff members for long term
period. Apart from this, poor management of human resources can lead a catastrophic conditions
for the firm.
Board of directors – it consists with governing or administrative body who are chosen by
the shareholders of the firm. They have responsibility to overseeing top managers, i.e. general
manager (Cruz and Marques, 2011).
Organisational cultural – It entails with collective behaviour, values, believes, morals of
individuals who are working in an organisation. In order to maintain an healthy and positive
organisational cultural managers are required to respect all values or norms of employees so as
they can perform in an effective manner. Thus it can said that, organisational cultural of Amazon
gives shape to its growth and success at world wide.
Operation management or external environmental factors: -
Political factors – The politico-legal factors of external environment consists with laws,
regulations, tax duties, relationship of business and government and all legal or political situation
of the country. Laws or regulations of a nation sets dos and dont's' for a corporate association, it
a company works against with these laws then it can affect its sales and profitability in an
adverse manner. Amazon operates at international level so that it is fundamental for it manage
healthy relationship with government of all nations.
Economic factors – Such dimensions consists with status of economic system of the
nation in which it serves. Inflations, unemployment, poverty, bank rates etc. are the major
economic factors which highly affect performance level of an organisation. For example- if the
economic condition of UK is not so good then people will not capable to spend more money on
purchasing of luxurious products and services. Thus it can reduce the demand of products
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whereas while inflation organisations pay more for consuming effective resources as well as to
cover up the higher costs, for this they increase the prices of commodities.
Social factors – Custom, values and demographic features of the society within a
business operates. It is essential for companies to manage these social cultural dimensions by
analysing needs and wants of customers (Branch, 2012). In addition, these factors implies
products, services, facilities and standards that are valued as well as appreciated by society.
Technological factors – It denotes the ways that helps in transforming resources into
goods. Managers should be careful about all technical methods, they can use upgraded
techniques for production process. It is also assistive in taking important investment decisions. If
Amazon does not have proper knowledge new tools and techniques of operating then it cannot
survive successfully in market for long term.
Suppliers – These are known as the person who provides production or service materials.
Effectively deal with suppliers is the foremost task for administration. Thus, to keep positive
relationship with suppliers helps in getting quality input materials (Baboli and et. al., 2014).
Customers – Consumers are the market king, they high affect sales and profitability of
the firm. Customers satisfaction is one of the significant role of every commercial entity. In this
manner, managers should pay attention to recognise needs and wants of customers and serve
them the same.
CONCLUSION
As per the above discussion it has been analysed that operational management plays an
imperative role in growth and success of every business entity. The term operation management
is the process of converting raw materials into finished goods so as to sustain high competitive
edge. The main role of leaders is to provide direction to employees and influence them to do a
task or activity whereas managers are capable to plan, organise and control all working activities
whether they are able to accomplish firm's goals and objectives. Apart from this, in order to
retain higher performance and output put TESCO can chose situational, contingency and system
leadership styles. It helps managers to take imperative decisions for company's growth and
vitality at global level. Six sigma, Total quality management and just in time are the major
approaches of operational management. On the other hand, there are several internal and external
factors, i.e. customers, suppliers, organisational cultural, value system, political and
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technological dimensions etc. that can highly affect business activities or operations in direct or
indirect manner. Operation managers of Amazon are required to analyse these factors
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