Analysis of Amazon's Business Context and Management Strategies

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This report provides a comprehensive analysis of Amazon's business context and management strategies. It begins by examining industry trends and the external environment, including the impact of the post-pandemic landscape. The report then delves into an analysis of Amazon's internal environment using the McKinsey 7S model, assessing its structure, systems, strategy, shared values, skills, style, and staff. A competition analysis is conducted to identify key competitors and the tools used to assess them. The report also evaluates Amazon's operational management, highlighting the use of Six Sigma and Kaizen methodologies. Furthermore, the report explores Amazon's approach to managing change, referencing Kurt Lewin's model. Part 2 of the report focuses on the benefits of strategic planning, providing a model for producing plans and strategies, and suggesting suitable strategies for Amazon's business operations. The report concludes by summarizing key findings and recommendations for Amazon's continued success in the e-commerce sector and beyond.
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Business Context and its
Management
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Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PART 1 Industry Trends..................................................................................................................1
External environment...............................................................................................................1
Analysis of internal environment.............................................................................................2
Competition analysis.................................................................................................................3
Assessment of operational management.................................................................................4
Managing change......................................................................................................................4
PART 2 Report................................................................................................................................5
Explanation of benefits of planning while formulating strategies........................................5
Model to produce plan, objective as well as future strategy to aid in management of
performance or activities over an extended period................................................................6
Suitable strategy and approach for business..........................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Business context basically and compasses with an understanding of different factors that
impact business from different perspectives. It generally consists of how decisions are made as
well as what are objectives of business that they are trying to accomplish. Business context and
its management is generally implemented by IT department in order to determine different
implications for execution of various strategic initiatives as well as strategies (Ligardo-Herrera,
Gómez-Navarro and Gonzalez-Urango, 2019). This report is based on managing context in
business management of Amazon which is an American multinational technology company
based in Seattle and it focuses on e commerce, digital streaming, Cloud computing as well as
artificial intelligence. This report includes two parts where part 1 identifies industry trends and
persist of external environmental analysis, environmental analysis, competition analysis,
operational management and managing change along with part 2 is based on report that consists
of explanation of benefits of planning while formulating strategies, model to produce a plan,
phone along with future strategy in terms of management of performance as well as activity for
extended period, strategy along with approach for business along with conclusion.
MAIN BODY
PART 1 Industry Trends
External environment.
External analysis of companies is necessary to be identified for carrying out industry trends
in terms of growth which are to be identified after post pandemic sales. In terms of Amazon
company is confronted by external factors which presents them opportunities along with threats.
SDS analysis focus on having broad dimension aspects that are under organisational control and
do not influence on their policies as well as decisions. After covid-19 pandemic situation most of
company’s customer are concerned with their health and safety issues terms of purchasing of
product and services. As performance under their first quarter is having higher in terms of
various years to rise of pandemic (Ramani, 2018). As for having growth company is generating
more than $11.59 billion in profit and after their revenue is increased to $47 in just one year.
Order to carry out external environment blue ocean strategy could be carried on Amazon that it
explains about their growth in terms of largest internet book stores along with a largest online
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ecommerce sector which is carrying out their business in a global market. Companies using this
strategy to achieve their multifaceted success in in various countless strategic policies.
Analysis of internal environment.
As in order to identify internal environmental analysis it is necessary for company to keep a a
regular check on environmental factors and according to that formulate their strategies so that
their sustainability could be maintained in markets e commerce sector. In terms of Amazon for
carrying out internal environmental analysis McKinsey 7S model could be used that illustrates
about various methods in terms of various elements of business which are used to increase
effectiveness of company. As by using this model strategy, systems as well as structure it
represents hard components as well as shared values that could be used by companies for having
effectiveness. In terms of Amazon in order to analyse internal environment after pandemic
McKinsey 7S model of company are as follows:
Structure: As company is having organisation structure of hierarchical nature which is
difficult for company to adopt various alternative structure. In e-commerce sector
Amazon is considered to be a giant company that employs various workforce that could
serve different millions of customers across global world.
System: As company is carrying a system of facilliting their employees in terms of
recruitment as well as selection for carrying out their business practices (Carcary,
Doherty and Conway, 2019). As company evaluates various business systems in constant
manner for increasing their efficiency along with competitive advantage.
Strategy: Amazon is using strategy of cost leadership as this strategy helps in
maintaining their sustainability in e-commerce market for carrying out various innovative
practices in their business processes with regular business diversification.
Shared values: As company is having norms as well as standards of employee behaviour
as well as company’s action in order to provide customer satisfaction along with
amazon’s culture is focus in working heart without harming environment in terms of
innovation as well as success.
Skills: As Amazon is focused on creating abilities of company’s employees in terms of
providing them training to that their capabilities as well as competencies could be
increased.
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Style: As Amazon is focusing on their top level managers in terms of interacting with
various employees so that their leadership could be maintained in an informal attire to
assist their staff members.
Staff: This element of company is concerned with employees along with their operations
which consists of motivated as well as trained skills of their employees. Also with that
company continues to have cultivates its talent as well as rewarding them on their higher
performance in terms of appraisal by using out various promotional techniques to them.
Competition analysis.
It is essential for companies to determine their competitors on regular basis of time so that
they could handle them easily by using various formulation of strategies as well as policies in
order to sustain their position in market comment on profitability in terms of competitive as in
order to deal with competitors effectively (Hamilton and Webster, 2018). In terms of Amazon it
is necessary for company to have a competitor analysis for determining their present e commerce
sector competitors that could affect their business operations. As competitor analysis tool is
considered to be an effective technique for company for analysing their competitors at social
media, content it as well as on other platforms so that they will be able to deal with them
effectively by formulating various strategies. Some of competitor analysis tools which could be
used by company in order to examine their competition are as follows:
Port examiner: As custom data lookup is needed to be an effective competitor research
tool for company as it helps in company in order to identify new companies that are
entering into E-Commerce sector by using their product descriptions, invoice amount, as
well as other information of competitor company. As using this tool Amazon will be able
to identify their competitors which are present in markets that are publicly accessible.
Google advertisement: As by identifying as well as determining various advertisement on
Google advertisements that could be proved to be an efficient competitor analysis tools
for determining competitor company is framing policies against company. As by having
count less time on Google ads dashboard it will help company in viewing about their
insights policies which are carried in contrary as well as against company. With Google
ads company will be able to see what percentage of their time their ads are presenting on
their site as well as insights could be determined for analysing competitors that are using
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various strategies in order to deal with them effectively (Dörndorfer, Hopfensperger and
Seel, 2019).
Assessment of operational management
Operational management is considered to be a process which effectively plants along with
organising various controls in terms of operations which are responsible for production of goods
and services. It is necessary for companies to maintain an effective operational management for
having product quality along with generating customer satisfaction so that their revenues could
be generated along with waste reduction. Also they could use collaboration tools in order to deal
with operations effectively. And in terms of Amazon companies using six sigma operational
technique in their operations in order to carry its business practices smoothly as their lean
approach complements their perspective of six sigma that has similarly tied and its main focus is
on streamlining operations for carrying out day-to-day practices (Monteleone, de Moraes, and
Maia, 2019). Along with transportation method of a specific package which is based on a
promised delivery time along with having a job role is designed to accomplish maximum
efficiency and effectiveness of company. Six sigma of company helps in considering this
approach in order to maintain their operation management which allows them to make their
available resources as well as trim cost.
Along with that kaizen method of operational management technique in terms of approach
could be used by Amazon that could be used accompany in order to have accomplishment of
customers’ demands along with governing a method of company performance in terms of having
warehouses process with more than 35 orders in every second. As company is having a
distribution centre along with the manager which is able to assign and ensure continuous
enhancement of workflow which is concerned in order to maintain a workflow in terms of
operational benefit. Also with that Amazon is focused on providing similarly attentive to things
such as for carrying out processing which have a direct impact on bottom line of company after
post pandemic situation.
Managing change
As according to Kurt Lewin model of change Management theory describes various aspects
of managing change so that companies will be able to deal with change effectively. In terms of
Amazon model of change management is beneficial in order to deal with changes effectively
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after post pandemic situation for carrying out business practices of company. As story is
explained in terms of three stages which are as follows:
Unfreeze: At this is state in terms of managing change present process as well as
perception are prepared for coming up changes. as it helps teams in having approach as
well as Stars for dealing with a change through a clean state of bias along with bad
situations. As past behaviours along with the way of thinking deals with processing as
well as carrying out different organisational structures that are to be examined for
carrying out their ecommerce practices effectively for gaining competitive edge.
Change: As in order to keep change implemented in company it helps in in determining
various uncertainty is as well as three years for carrying out their employees in order to
learn their new behaviour as well as process which are carried after post pandemic
situations of covid-19 in terms of safety and health (Ferraro, 2021).
Refreeze: As finally in terms of refreeze it helps in curing changes that are made to their
behaviour, processes as well as ways of thinking that are expected from company in order
to deal with changes of post pandemic situations after covid-19 second wave. As adding
to this is stage various reviews as well as recommendations are to be provided to their
companies so that they could enhance their change behaviour in terms of carrying out
various business practices.
Are carrying managing change company will be able to deal with changes effectively that are
taken after covid-19 second wave. As due to this various changes in behaviour of customers are
identified so it is necessary for company to deal with their changes effectively in order to sustain
their position in markets for longer run (Griffin, 2021).
PART 2 Report
Explanation of benefits of planning while formulating strategies.
As strategic planning is important formulating strategies for a business as it helps companies
in preparing their proactively as well as addressing various challenges in terms of long term
view. Planning helps in in neighbouring companies to initiate their influence in order to respond
difficult situations effective (Cameron and Green, 2019). Benefits of planning while formulating
strategies in terms of Amazon are explained as follows:
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It basically allows company to be proactive rather than reactive: As planning basically
allows company to foresee their future along with preparing as per their objectives. In
terms of Amazon strategic planning help company in anticipating various unfavourable
scenarios as before their carried and according to that essential precautions are to be
taken.
Provides a sense of direction: Planning helps in in defining direction to companies in
order for establishing their goals and objectives in terms of their vision for
accomplishment (Marques, 2019). In terms of Amazon strategic planning while
formulating various strategies it helps in providing a sense of direction so that strategies
could be design in order to accomplish goals.
Model to produce plan, objective as well as future strategy to aid in management of
performance or activities over an extended period.
As to produce a plan there are various objectives as well as future strategy that are to be
considered by companies in order to aid in management for having performance along with
activities that are to be used India operation for their extended period so that they will be able to
carry their objectives in a specific time period. In in terms of Amazon in order to produce a plan
planning process model could be used by a company that could help them in carrying out their
company in terms of determining various approaches as well as strategies for achieving their
goals. As for producing a plan planning cycle model could be defined in various stages define in
determining various opportunities that are present in market and according to that determine as
well as plan objectives with as per plan objectives various options which are required in terms of
strategies are to be searched out so that objectives could be able to be achieved and for that plan
is formulated by evaluating them so that it will be able to accomplish goals of company or not in
terms of carrying out their e commerce activities (Nawaz and Koç, 2018). Also various
feedbacks as well as reviews from customers are to be taken by company in order to make
improvements so that more revenue could be generated.
Suitable strategy and approach for business
In order to deal with covid-19 pandemic there are various strategies as well as approaches
that could be used by companies in order to deal with them as well as sustaining in market for
longer run. In terms of Amazon recommended strategies along with approaches which could be
used by business company are as follows:
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As company should use strategy of providing home delivery along with supply chain
logistics so that product will be delivered by a drone from a blimp line contraption so that
satisfaction of customers could be generated. Company is already putting their pressure
on having supply chain in terms of competitors for setting their expectations product will
be delivered in 48 hours.
Artificial intelligence could be used bike company e so that they could be able to
revolutionize there shopping terms as well as customer will get an ability to replenish
their requirements in terms of various supplies.
Company should use approach of health Care safety in terms of moving them into
pharmacy services. Carrying out health Care inflation in terms of pharmacy it could be
helpful for company in order to generate their business more e commerce sector along
with able to deal with post pandemic situations effectively with generated revenues of
company (Marić, 2020).
CONCLUSION
From above report it could be concluded that business contexts along with its management
generally consists of an essential element which helps in in determining day various impact a
perspective along with decisions that are to be made by company in order to achieve their goals.
This report state a brief explanation of industry trend analysis where various elements 50 internal
and external environment along with competition in terms of company are explained. Also there
is an assessment of operational management along with there is an assessment of operational
management along with ways to manage change in order for company’s effectiveness. There is
also explanation of report that States about planning future strategy and its recommendation for
having effectiveness of company.
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REFERENCES
Books and Journals
Cameron, E. and Green, M., 2019. Making sense of change management: A complete guide to
the models, tools and techniques of organizational change. Kogan Page Publishers.
Carcary, M., Doherty, E. and Conway, G., 2019, July. Personal Data Protection (PDP): A
Conceptual Framework for Organisational Management of Personal Data in the Digital
Context. In ECCWS 2019 18th European Conference on Cyber Warfare and
Security (p. 87). Academic Conferences and publishing limited.
Dörndorfer, J., Hopfensperger, F. and Seel, C., 2019, June. The SenSoMod-modeler–A model-
driven architecture approach for Mobile context-aware business applications.
In International Conference on Advanced Information Systems Engineering (pp. 75-86).
Springer, Cham.
Ferraro, G.P., 2021. The cultural dimension of international business. Prentice Hall.
Griffin, R., 2021. Fundamentals of management. Cengage Learning.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Ligardo-Herrera, I., Gómez-Navarro, T. and Gonzalez-Urango, H., 2019. Application of the
ANP to the prioritization of project stakeholders in the context of responsible research
and innovation. Central European Journal of Operations Research .27 (3). pp.679-701.
Marić, J., 2020. Exploring 3D printing technology in the context of product-service innovation:
case study of a business venture in south of France. International Journal of Business
Environment .11 (3). pp.222-238.
Marques, R.P.F., 2019. Continuous assurance and the use of technology for business compliance.
In Advanced Methodologies and Technologies in Business Operations and
Management (pp. 429-441). IGI Global.
Monteleone, S., de Moraes, E.A. and Maia, R.F., 2019, June. Analysis of the variables that affect
the intention to adopt Precision Agriculture for smart water management in Agriculture
4.0 context. In 2019 Global IoT Summit (GIoTS) (pp. 1-6). IEEE.
Nawaz, W. and Koç, M., 2018. Development of a systematic framework for sustainability
management of organizations. Journal of Cleaner Production .171. pp.1255-1274.
Ramani, S., 2018. Improving business performance: a project portfolio management approach.
CRC Press.
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