Global Business Environment

Global Business
Environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
PESTEL Analysis...................................................................................................................3
SWOT Analysis......................................................................................................................4
Impact on functional areas......................................................................................................5
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................7
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INTRODUCTION
Global business environment is defined as environment within the different sovereign
nations. Respective environment generally highly impact on the decision making of a company
and it is essential for them to understand these aspects (Andoh and Cantah, 2020). For
conducting respective report Amazon is selected which is operating in e commerce industry. It is
founded by Jeff Bezos in year 1994 and its head office is located at the Washington United State.
Topics covered in respective report are PESTEL analysis on which SWOT analysis is based.
Moreover it also include two key drivers which affect functional areas of Amazon.
MAIN BODY
PESTEL Analysis
PESTEL analysis is used by a company in order to conduct evaluation of external aspects
according to which they develop strategies and plans. The PESTEL analysis of Amazon is given
below:-
 Political Factors - Being an e-commerce industry there are so many political external
factors which are important in their development such as political stability of developed
countries, governmental support for e-commerce, Increasing government efforts to
increase cyber security etc. All these steps of government helps amazon to sustain (Cisko,
2020). On the other hand the same external factor create competition for the company
like involvement of Chinese online retail firms which are expending their operations.
 Economic Factors - Performance of Amazon depends on the situation of economy of a
country and the important economic external factors which affects the company are
economic stability of the developed markets and increasing disposable incomes. On the
other hand potential economic recession in china is a threat for the company.
 Social or Socio-culture Factors - Amazon faces various social changes which needs to be
verified. It can create opportunities for the company like increasing online buying habits
of the customer and increment in consumers in developing countries. But the way wealth
disparity id increasing day by day it is a threat for the company.
 Technological Factors - Amazon has centrality of technology in its business, so
advancement directly affects the company. As efficiencies of the IT resources are
increasing day by day which is an opportunity for Amazon to grow but on the other hand
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