Amazon's Business Analysis: PESTEL, Ethical Considerations, Culture

This report provides an individual academic analysis of Amazon, focusing on its business environment. It includes a PESTEL analysis identifying key drivers for changes, a detailed analysis of Amazon's organizational culture, and an exploration of ethical dilemmas the company faces. The report discusses potential actions to resolve these dilemmas from an ethical standpoint. Key areas covered include political, economic, social, technological, legal, and environmental factors affecting Amazon's operations, as well as the company's core competencies, diversification into cloud services, and global expansion strategies. The analysis also delves into Amazon's culture, emphasizing customer obsession, innovation, and employee development.

Individual academic
report

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PESTEL Analysis and identify the key drivers for changes in the business environment.....1
A detailed analysis of the culture of selected organisation....................................................4
Explain the term, Ethical Dilemma and identify any two ethical dilemmas which need to be
resolved. Explain the choices of action you would have and justify your actions from an
ethical point of view...............................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
Appendix........................................................................................................................................10

INTRODUCTION
The workplace culture is representative of shared belief system, values and a set of
assumptions that is perceived by people working within workplace. It is being used to shape
individual upbringing, cultural and social belief with this working tendency and capability to
accomplish standardised outcome in certain period of instance is developed in progressive
manner (Banerjee and Mishra, 2017). The positive culture promotes the working belief and
attitude of employee so that level of involvement and engagement both get advanced on the basis
of both personal and professional develop in respect of favoured activities so that working
standard and its possibility both enhances on clear basis. The report below is based on Amazon
that is an American multinational technology business and it was established in 5 July 1994 and
its founder is Jeff Bezos. The business induces focus towards e-commerce, cloud computing,
digital streaming, and artificial intelligence. The report below comprised of Pestle analysis and
key driver that change business environment along with analysis of organisational culture.
MAIN BODY
PESTEL Analysis and identify the key drivers for changes in the business environment
The Pestle analysis defines the micro environmental basis that has both direct and
indirect impact over the business working performance and on daily regularities as well. The
performance and working consequences of Amazon is dependent over the PESTLE analysis so
that strategic management with this identification of different external basis is processed as per
shaping and remote various factors that affects working of e-commerce enterprise (Boretti,
2020). As Amazon is a largest player in global market as in terms of information technology and
online services with this company attain higher benefits in the extensive market with this
capitalisation and popularity both advances in timely constrained (Amazon.com Inc.
PESTEL/PESTLE Analysis, Recommendations, 2021). Amazon is constrained with the
maintaining of resilience and competence so that ability to get over from suitable market
challenge is processed as per making effectual decision making.
In support of Pestle analysis significant operations and functions get reveal with this
adequate support towards global growth is addressed as by involvement of aggressive
competition such as Walmart and with many other information technology firms as well such as
Apple, IBM, Microsoft and Google. The Pestle of Amazon is as clearly defined below as:
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Political: It is a basis that is dependent over the influence of governmental activity and its
effect over the working of business and that also get followed by the company to process easy
flow of services. The political stability in the developed countries such as USA and the European
countries develop more opportunity for company to process their function in easiest manner
(Bugmann and et. al., 2017). The support of government also makes opportunity for the e-
commerce business so that enhanced governmental efforts towards cyber security in this Amazon
expand its working and diversification in many other developed countries. The external basis
such as competition risk reduces the involvement in Chinese online retail firm for that
operational expanding.
Economic: It is a factor that is dependent over the economic condition and situation of
the business in this online and non-online business is operated as per controlling the economic
trends and changes. The economic stability is used to develop market and act as an opportunity
for US and European countries. The increased amount of disposal income also act as advantage
for the developed nations but the economic recession that processed due to COVID 19 pandemic
induce negative impact over profit generation of business. The reduction of risk and business
expansion is resultant over increasing disposal income so that developed market is processed to
boost financial performance. In order to compensate during pandemic Amazon worked to
provide employment to more people so that working tendency and market delivery get processed
with perfection.
Social: It is related to the customer preference and acceptance under which social
conditions and its determinants get in control so that impact over trends of socio-cultural is
induced as per variance of company performance (Dash, 2020). The online service provider of
information technology is being considered as emerging trends in the marketplace as it enhance
the consumerism within developed countries along with that the increases online buying habits
of people also be more attractive for the profitability of the company. Amazon assure to offer
many of the products and services as per consideration of wider marketplace thus assure to
provide different services and product and affordable prices in this working tendency and its
acceptance both enhanced perpetually.
Technological: It is a factor that is dependent over the technological advancement that is
being used by Amazon as per centrality usage of technology. There are many consequences of
technologies that are related to the emerging trends with this Amazon and its management also
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being rapid obsolescence about technology and enhance efficiency of IT resources act as an
opportunity for the business. Moreover the increased crime rate act as threat for the business in
which most of the customer threaten to use and process online payment with this possibility to
produce higher productivity is affected (Mufeed, 2019). For this management of Amazon design
their own paying platform so that they are able to retrieve market attentiveness with this ability
to attract and process easy processing of service is processed over regular basis.
Legal: It is as aspect that is related to the rules and regulations of the different nations as
Amazon worked in many of the countries and has dealt with diverse range of product and
services. The rising product regulation, changing of import and export regulation as well as
environmental protection regulation brings suitable opportunity for the business in this working
possibility of Amazon is advanced systematically. The expand working of Amazon and its
operations is used to exploit the ability of seller so that access to expand global expansion and
oversees suppliers processed with adequateness. It ensure the Amazon to maintain long term e-
commerce success as per processing of regulatory compliance.
Environmental: It is even though inducing favoured amount of change within the working
correspondence of business as it is subjected towards influence of natural environment. It is an
aspect that is related to the remote or control towards macro environmental factors as it is also be
dependent over ecological change in this raised interest rate in environment program and
induction of program related to business sustainability processed favoured amount of changes
within the working attentiveness. The Amazon also increases the popularity about low carbon
lifecycle that boost corporate image and value of company in effective manner.
There are many key drivers for Amazon as for changes in the business environment in
this working consequences of the company get advanced in favoured manner for that possibility
to advance strategic working is processed in favourable manner (Shakil, Hassan and Qureshi,
2019). It also acts as a growth imperative in this need to grow, consistency and developed range
of resources usually leveraged the working possibility so that competitive advantage and its
possibility get developed as with profitability aspects. There are many key drivers of Amazon are
as described below as:
Identify Core Competencies and Refocus: Amazon used to process the market leadership
position all across the world in this adequate attention is processed as per indeed of long term
success and development. Thus management of Amazon assure to maintain clear focus towards
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own competencies for instance, the Kindle Fire device and foray into the Tablet computer market
is usually being a failure for the business thus there is a need to eliminate the fundamental basis.
In addition, the rule of thumb is used within this strategic basis such as product range, market
entry and an offered service is complementary towards core competency. Moreover, the
diversification of sale and profit is resultant over the core business strength under which profit
and sales margin controlled in balanced manner.
Diversify into Cloud based Services: The expanding and diversification of business is
dependent over cloud based service with this Amazon attain market leadership position they tend
to increases the effective utilisation of big data by marketers. It induces the effective business
model with this data management, hosting service, storage space and cloud base service drive
imperative growth and development. The technological trends return to process of sustaining
form for this capital investment and analytical learning is described in favoured manner.
Expand Globally: It is an aspect or driver with this quick and actualises economies of
scale is leverage as it also gets synergies the expansion of Amazon on wider level. For the
management of Amazon adopts glocal approach within this core global delivery within the local
condition as it used to merge with local or glocal basis. In addition, Amazon also maintains clear
focus towards the targeted marketplace in this higher rate of penetration and disposal income
govern adequate success and growth of business. Moreover the diverse range of products and
service assist the business to grab market attentiveness of wider marketplace so that profitable
range of benefit is attained over regular period of instance.
A detailed analysis of the culture of selected organisation
The culture reflects the unique style to pursue certain actions and working behaviour with
this adequate respect and honour is developed in between all the employees as on regular basis.
It reflects the pride of Amazon that seeks to attain higher and stronger customer base at global
level under which building of diverse community of creations as it develop a balanced relations
in between the customers (Harney and Dundon, 2020). The management of Amazon is
dependent over the operations that put all the work all together under which practical basis relies
on the maintenance of long term focus, innovation and obsessing over the customers. The culture
drives the deepen understanding about customers working under which rapid involvement of
innovation and creation is processed in clear basis. It induced a constant and curious working get
developed under which employee get worked with such as enthusiasm so that ability to
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accomplish all the standardised objectives is perceived in timely constrained. The customers are
heart of everything that a business can do in this Amazon always be smarter, passionate and
obsessed with the customers so that an innovative approach is induced. Thus company get invest
within the employee success and for this spend about $700 million to provide free skills training
to employees as it assist to make adequate career in terms of technology advancement in which
continuous development get processed with regularity.
Amazon is basically seems to be more emotional as per comparison with legal prospect
with this ability to process the company working is processed as with concern of truth in which
strong interrelation get developed in constrained manner (Amazon’s Corporate Culture – The
Balanced View, 2021). As CEO, Mr. Bezos has to defend his organization’s culture that
substantially attract and retain more of the talented employees with this wider competitive
advancement is taken in ordinate manner. The company always assure to make a productive
culture within competency and productivity both get processed as in parallel with all the certain
norms and condition. There are various considerations in respect of culture and that is as briefly
explained below as:
Choice is King: The Amazon provide or grant suitable opportunity under which working
culture and its attentiveness both get extend on clear basis. It induced an intensive range of work
with this favoured amount of change in induced within working environment with this intention
of company towards making of public centred basis is processed in support of friendly and
intense basis. It not only assist the employee to work accordingly but also get advance the overall
rating of the company through which market base and customer attractiveness both get
developed in favoured mode.
Know Thyself: The public and critics always get thrive a sustained environment with this
possibility to perceive an innovative and an effectual execution of logic is deprived on wider
scale. In this management get measured it on the basis high-risk, high-debate environment
(Sharma, Nigam and Sharma, 2020). Thus the employee get performance selective task so as to
make adequate judgment in this working tendency and possibility to clear all the queries and
feedback of customers get resolved systematically.
No Company Immune: It is an aspect with the “Best Place to Work” is provided to get
over from worst managers, process flaws, cultural misfires in which balanced range of
transparency is developed in between the working attributes. It makes an open culture under
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which possible range of benefit is achieved that is in reciprocate of power and a positive aspect
always make easy for all to work with this proficiency also get advanced in clear manner.
Explain the term, Ethical Dilemma and identify any two ethical dilemmas which need to be
resolved. Explain the choices of action you would have and justify your actions from an
ethical point of view
Ethical Dilemma is also be known as the ethical paradoxes or moral dilemmas as it is a
situation that is quite difficult to make perfect choice as in between the different course of
actions that might be entail with transgressing or a moral basis and principles (Delfanti, 2021)
(Greely, 2021). It is also be a conflict that is present in between the different alternatives as it is
comprised of the ethical basis. The ethical decision is also be involved with the analysis of
different options, eliminating the option that is unethical standpoint and after that the selection of
most appropriate one so that work processing is processed with perfection and with
productiveness.
Amazon also being facing the ethical problems or issue that induce negative impact over
the working practice and act as an unethical way with this pervasive range of height is developed
that is usually essential in today’s era (The Ethical Issues With Amazon, 2021). Amazon thrives
off convenience and low prices and it is for the certain members of the society and it is referred
as the valuable tool as of lacking in income and time outside of the work. It is basically a
systematic problem under which it is required to process and get addressed as per own right.
Moreover as in regardless of all hyper-consumerist and unsustainable environment within
business seems to reduce the market value and share both in this profit share also get reduces
with adequateness. There are many of the ethical dilemmas and it is required to resolve under
which working progressiveness and its productivity get affected on clear basis. Thus below are
the ethical dilemma and it is required to take adjusted actions for that and it is as briefly
summarised below as:
Tax Avoidance: The profit maximisation strategy of Amazon is surpassed according to the
avoidance of tax at several levels. For this vulnerable need and demand of the marketplace and
people get filled with attentiveness (Scuccimarri, Sutton and Fitzcharles, 2020). If higher earner
and businesses such as Amazon doesn’t pay tax than it apparently counted as unethical manner
as amount that is required to be invest for public and for better infrastructure doesn’t processed
with systematic manner. It was founded in Seattle by Jeff Bezos in 1994, that Amazon get create
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an exploit towards loophole as per collected sales taxes when selling online and at that time it is
only processed from the offline stores. In US also Amazon hardly pays any federal income tax
and that is due to the avoidance of both booking any profits for years as rather than investing
instead everything back within business, and from side to side aggressive tax planning. As per
according to Matthew Gardner at the Institute on Taxation and Economic Policy state that
Amazon doesn’t paid federal tax on $5.6 billion in U.S. profits. In addition in the past five years
paid a rate of 11.4% on its profits of $8.2 billion and its third part what they have to pay. To
make certain action the Tax payment is always is necessary and if the payable doesn’t pay
adequate tax than it is even more required as tax is basically the redistribute money to all the
public (Knox, 2020). In this the received amount of tax get received will get replicate in terms of
different service such as education, healthcare and better infrastructure as it processed to address
numerous issue related to income inequality and poverty.
Exploitation of temporary workers: It is related to change within the spreadsheet and
crunched as it is the cheapest way to get done suitable job. Amazon warehouses more often
staffed by frequent temp hired by outside companies as it also outsource Amazon too. The
company get hired the person for “peak season” and doesn’t even pay valid amount for extra
work along with this doesn’t offered any other benefit that is usually offered to the employees.
These workers are permanent for about 6 months only as it emphasis the adequate pattern of
working behaviour and also be known as dispatch workers. It is founded from the investigation
that the regular worker gets worked for five days in a week and only received 8 hour of training
as despite of legal stipulation. In this it is required to address this ethical dilemma in this
management get process an action that is completely dependent over the suitability of working
under which working tendency and its responsiveness get concerned in balanced manner (Fisher
and et. al., 2020). For this all the employee get equal benefit thus working culture get processed
with equality maintenance.
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CONCLUSION
It has been concluded from the above report that the workplace culture represents the
ability to perform task and with better competency within this probability to make adjusted
solutions and advancement is developed on regular basis. There is different measure that is
induced by the business so that capability to achieve standardised objective as with easiest form
is processed with attentiveness. In this sustained platform is provided to all the employees with
this probability to make continued range of benefit is processed in systematic manner. Moreover
the external analysis of the company is being used to make deliberate range of benefits so that
possibility make analyse the basis that induce direct and sustained impact over the working of
business is developed with adequateness. In addition working culture and ethical prospect also
plays an essential role and it is controlled by management with this positive culture get
developed that emphasis the rate of achievement of task with progressiveness.
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REFERENCES
Books and Journals
Banerjee, M. and Mishra, M., 2017. Retail supply chain management practices in India: A
business intelligence perspective. Journal of Retailing and Consumer Services, 34,
pp.248-259.
Boretti, A., 2020. COVID-19 effect on the research-innovation-commercialisation
phenomena. International Journal of Research, Innovation and
Commercialisation, 3(1), pp.73-82.
Bugmann, H and et. al., 2017. Impacts of business-as-usual management on ecosystem services
in European mountain ranges under climate change. Regional environmental
change, 17(1), pp.3-16.
Dash, S., 2020.Rewriting the HR Playbook for the Future. NHRD Network Journal, 13(4),
pp.442-453.
Delfanti, A., 2021. Machinic dispossession and augmented despotism: Digital work in an
Amazon warehouse. New Media & Society, 23(1), pp.39-55.
Fisher, J. and et. al., 2020. Collaborative governance and conflict management: Lessons learned
and good practices from a case study in the Amazon Basin. Society & Natural
Resources, 33(4), pp.538-553.
Greely, H.T., 2021. Human brain surrogates research: The onrushing ethical dilemma. The
American Journal of Bioethics, 21(1), pp.34-45.
Harney, B. and Dundon, T., 2020. Amazon: HRM and change in the house of neo-liberalism.
In Case Studies in Work, Employment and Human Resource Management. Edward
Elgar Publishing.
Knox, B.D., 2020. Employee volunteer programs are associated with firm-level benefits and
CEO incentives: data on the ethical dilemma of corporate social responsibility
activities. Journal of business ethics, 162(2), pp.449-472.
Mufeed, U., 2019. HR Practices in Managing Knowledge Workforce-A Perceptual
Study. International Journal of Knowledge Management and Practices, 7(2), p.25.
Scuccimarri, R., Sutton, E. and Fitzcharles, M.A., 2020. Hydroxychloroquine: a potential ethical
dilemma for rheumatologists during the COVID-19 pandemic.
Shakil, R.M., Hassan, M.A. and Qureshi, M.I., 2019. Understanding the Relationship Between
HR Roles and HR Effectiveness: A Conceptual Review. Management Research
Spectrum, 9(1), pp.78-82.
Sharma, V., Nigam, V. and Sharma, A.K., 2020. Cognitive analysis of deploying web
applications on microsoft windows azure and amazon web services in global
scenario. Materials Today: Proceedings.
ONLINE
Amazon.com Inc. PESTEL/PESTLE Analysis, Recommendations, 2021. [Online] Available
through: <http://panmore.com/amazon-com-inc-pestel-pestle-analysis-
recommendations>.
Amazon’s Corporate Culture – The Balanced View, 2021. [Online] Available through:
<https://www.corporateculturepros.com/amazons-corporate-culture/>.
The Ethical Issues With Amazon, 2021. [Online] Available through:
<https://ethicalunicorn.com/2019/01/12/how-ethical-is-amazon/>.
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Appendix
Questionnaire
Quantitative questions
Q1) Do you know conceptual knowledge about the requirement of culture within workforce?
a) Yes
b) No
Q2) Do you think working culture induced direct impact over the working standard of Amazon?
a) Yes
b) No
Q3) What are the different measure taken by Amazon to advance working culture?
a) Embrace transparency
b) Practice flexibility
c) Cultivate strong co-worker relationships
d) Inspire employee autonomy
Q4) What kind of difficulty measured by management of Amazon due to promotion of working
culture?
a) Increased employee turnover
b) Decreased motivation
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