Presentation on Amazon: Business Environment Analysis and Factors

This presentation provides a comprehensive analysis of Amazon's business environment. It begins with an introduction to the business environment, highlighting both internal (micro) and external (macro) factors that influence a firm's operations. The presentation then delves into Amazon's specific context, examining its staff, organizational structure, consumers, financial performance, capital, suppliers, and competitors as micro factors. It also explores macro factors using a PEST analysis, covering political, economic, social, technological, environmental, and legal aspects. Key takeaways include the impact of teamwork on Amazon's operations and a concluding summary of the factors contributing to Amazon's success. The presentation concludes with a list of references used for the analysis.

Power point on Amazon

INTRODUCTION
 Business environment focuses on all the internal and external factors that
impact how the firm functions includes consumers, employees,
management, supply as well as demand and in addition to this focuses on
the business regulations.
 It gives several opportunities as well as improves the performance of a
business. Present Report focuses is known as the American multinational
technology firm relied in Washington that focuses on cloud computing, e-
commerce, artificial intelligence, digital streaming and many more.
 The founder of Jeff Bezos as it was founded by 5 July 1994, Washington
United States. It headquarter within Bellevue , Washington, United states.
It has various subsidiaries whole Food market , Audible , AbeBooks and
Audible and many more.

Micro
 Staff- this is also a factor which impact on internal culture of Amazon.
Here, staff of company is highly qualified and experienced. They are hired
on right job role at right position. Besides, that employee of firm work in
team. Moreover, there are diversified staff working in Amazon. They
belong to various caste, creed , religion, etc so, they respect dignity and
values of each other. Also, staff are loyal towards firm and remain
motivated.
 Organization- Here, it refers to group of people who are organised to attain
common goal. Thus, Amazon is a large organization and consist specific
structure and process which is followed. Any change in organization goals
affect on its operations. However, Amazon is having specific goals and
objectives which they want to attain.

CONT..
 Structure- it is also a factor of which affect on entire organization
operations. The structure of organisation shows how information flows
from top to bottom. Thus, the structure of Amazon is hierarchal. Here, Jeff
bezoz is CEO of firm and there are many senior management below him.
Senior management team include three CEOs and three senior vice
presidents responsible for various vital aspects of the business reporting
directly to CEO. It provide flexibility to them in communication and there
is transparency in it. So, there is positive impact on it.
 Consumers- The Amazon creates value for their consumers through
offering consumers broad array of goods in order to select from their
websites as well as assuring the timely delivery of goods in order to exhibit
high level of commitment towards business as well as Amazon. If the needs
of the consumers is changes then now the Amazon.

Cont..
 Finance- it is most important factor that impact on Amazon factors. The
finance performance of firm is highly stable and good. It is found that
company is having huge funds and they can invest in it. Moreover, the
market valuation of Amazon is $1 trillion which is highest is world.
Furthermore, revenue generated by firm in 2019 is $96 billion. Thus, there
is effective distribution of finance within all departments. Thus, there is
positive affect on company operations as financial performance is good.
 Capital- this factor is related to finance as capital gained by Amazon is by
finance. The capital refers to asset and other resources. Amazon is having a
large amount of capital which is invested in proper way. If there is less
capital then it impact on firm ability to invest and maintain their market
value. Besides it highly affect on overall goodwill as well.

CONT..
 Supplier- they ate those who supply products and services to customers. Amazon is
having a large network of suppliers that deliver products to large number of
customers. With this they are able to balance demand and supply. The company
depends highly on supplier for its delivery. Thus, there is great impact on Amazon
operations due to supplier. It may be either positive or negative depending on market
situation.
 Competitor- it is micro factor that impact on organization in negative way. In retail
sector there are many competitors of Amazon such as Walmart, Alibaba, etc. so,
there is stiff competition in it. With rise in competitors it will affect in negative way
to operations of Amazon. Also, in future there will be more companies that will enter
into this sector because of less entry and exit barriers in it.

CONT
 Shareholder- they highly affect on overall operations of Amazon. It is
because they are those who buys share of firm and invest in it. So, any
change in needs of shareholder impact on firm overall market value.
Furthermore, Amazon shareholder are its general public but they are mostly
owned by Jeff bezoz. Therefore, this micro factor will affect company in
positive way

PEST ANALYSIS
 Political Factors- Amazon is known as the e commerce offline the products online for
all of their consumers around the world. As Amazon abide through political and legal
regulations within each location. Amazon depends on the support of the government
in order to implement, distribute as well as profit. All of them to the internet and
now also they are expanding into physical locations. This firm lies heavily on the
political stability as well as e-commerce but also they are also impacted through
cyber security bills also.
 Economic factors- If the economic conditions are positive of the Amazon within
areas where it is operating. Retailing within a medium how producer offers their
goods as well as services to the costumers. The disposable income of the consumers
is enhancing that is considered as a great opportunity. No doubt Amazon is within
advanced Technology firm as well as facing for offering less job opportunities as
well as prefers to utilise new technology whenever it is possible. Economic recession
is considered as macro environment indicator that can impact Amazon.

CONT..
 Social factors, behaviour as well as trends can impact the Amazon’s
performance positively as well as negatively. Amazon made people lazy
enables them to stay at home as well as made them people lazy enables
them to stay at home as well as also takes of everything such as food items,
streaming movies, groceries. Staying at home as well as eating junk food
impacted the health of children and adults.
 Technology – Technology is considered as the backbone of Amazon as it is
the only one that makes Amazon more comfortable. Amazing is also
focusing such as cloud computing anvery system in order to satisfy the
requirements. Amazon is also utilising technology for the delivery system
in order to deliver their parcels. Also Amazon is working with several
different regulatory authorities in order to comply the needs as well as
design the sound traffic management system.

CONT
 Environment- Firm has also restricted pressure from stockholders and investors in
order to disclose information to the environment influence. Recently Amazon.com
also committed that it will disclose the data. Another challenge for firm is decreasing
firm’s emissions. It is also mentioned that ordering online needs less energy than
driving to the physical stores. By the year 2030, Amazon is looking for their
shipment emission free. As an outcome when a consumer needs to receives goods
within one or two days, the carbon emissions enhance.
 Legal factors- The business operations of Amazon must comply with several laws as
well as regulations. There are various legal factors that can impact Amazon such as
consumer protection laws, discrimination laws, antitrust laws for the ecommerce
businesses and data protection laws. There are various Consumer Privacy Acts that
creates a threat within the macro environment of the firm. Another legal factor that
impacts Amazon as well as those firms who collect emails, bank information. All the
consumer data also be protected. It is considered as Amazon’s threat.

TEAMWORK
 Teamwork is consider as a key pillar as it splits several tasks into the more
simpler ones and also work together in order to completes them more
quicker. It also developed various specialised skills in order to complete
tasks faster. Within Teamwork, several people have responsibility for the
same goals as well as objectives. It is the teamwork that creates a healthy
competition as when staff members work together goals are achieved in a
practical way. In Amazon there are various diversified teams that are
working in different departments they all work together in order to achieve
common goals as well as objectives of the firm so there is a positive impact
of team work on the operations of Amazon.

Conclusion
 From the above it had been concluded that there are various micro and
macro factors such as Staff is highly qualified and experienced, belong to
caste, religion, Organization, Structure Consumers. Organization refers to
group of people to attain common goal. Structure shows how information
flows from top to bottom and macro factors such as Political depends on
the support of the government, Economic factors are positive as disposable
income of the consumers is enhancing. Social factors as amazon made
people lazy as well as Staying at home, eating junk food and Technology
focusing such as cloud computing in order to fullfill the requirements