Impact of Legal Framework and Political Factors on Amazon

Socio-Economic & Legal
Environment

Executive Summary
There are various socio-economic factors that can impact the business operations of a
company. Therefore, it is important for the management of the firm to develop strategies that are
beneficial for its overall growth. Apart from this, there can also be various political factors that
can influence the operations as well as position of the firm in the market. These can include
instability of the government and various rules as well as regulations.

Contents
Executive Summary...................................................................................................................................2
INTRODUCTION.....................................................................................................................................4
Literature Review......................................................................................................................................4
Impact of Legal Framework and Political Factors.................................................................................8
The influence of Political factors in the economic growth and future development of Amazon..............8
The long-term implications for the sector of Amazon...........................................................................10
A review of the formal and informal legal systems and anti-trust laws and their impact on Amazon....10
Conclusions and Recommendations.......................................................................................................10
REFERENCES........................................................................................................................................11

INTRODUCTION
The socio-economic environment of an organization comprises of various structures as
well as systems that can have an impact on various factors such as distribution of resources,
power as well as money. This impact and shapes the way in which communities as well as
individuals gain the resources which are needed to meet their basic needs(Azarova and et.al.,
2018). Amazon is one of the leading technology companies that is based in Washington, United
States. The company offers a range of products as well as services to the customers through its
website in order to satisfy their needs and wants. Amazon has operations across different
geographic locations in the world and has a large base of loyal customers. Various socio-
economic trends such as migration of the employer and workers, increased expectancy of life as
well as educational gaps can affect the business model of an organization. The respective
company, Amazon, has a platform business model along with several business units. Besides
this, the organization also maintains another business model that is subscription based. The
report explains the various drivers of economic change as well as socio-economic trends that can
affect the organization. There is also a description about the impact of legal frameworks and
political factors along with their influence on management.
Literature Review
The macro environment of a company includes various factors that are external to it and
can impact on its overall performance in the market. it can be said that the macro environment of
the company is linked to its business cycle closely. The various macro environment dimensions
are explained below with their impact on the business operations of amazon.
Economic Growth Rates – This is one of the major factors that can have an impact on
the business operations of Amazon in a significant manner. Gross National Product or GNP,
Gross Domestic Product or GDP are some economic growth rates that can be used by the
management of the company to measure overall growth. When the rate of sales changes due to
the economy, it is important for the businesses to respond accordingly. The owner of businesses
hires more employees when the economy of the nation is strong in order to gain competitive
advantage in the market.