A Report on Contemporary Business Issues in Amazon's Management

This report provides an overview of the contemporary business issues faced by Amazon, focusing on the impact of artificial intelligence and workforce diversity. It discusses five key challenges: artificial intelligence, workforce diversity, internet security, modern working practices, and fast innovati...Read More

Business issues in
business management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Five contemporary issues faced by Amazon..........................................................................3
Focus on two main issues.......................................................................................................4
Critically evaluate the impact of two issues on Amazon.......................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The report aims to provide an understanding about contemporary issue faced by Amazon in
current modern and technological environment. Business is largely adopting modern ways to
remain competitive in market. An organisation needs to be sure about all the internal and
external factors which impact on contemporary business management. Amazon is a large
platform of e-commerce with sell wide number of products and services across the globe. The
company was first established in 1994 in US. It is known for drastic technological Innovation
and mass media strategies to regulate business in in global environment. The company comes
under top five rated of US. It is the most valuable and top rated brand as being world’s largest IT
company. In the current competitive environment while having other top most companies like
apple Microsoft and Facebook (Atal, Berenguer, and Borwankar, 2019). Amazon facing many
contemporary business issues which are going to discuss in this report. The two main issues are
workforce diversity and artificial intelligence that creates hurdles in achieving organisational
goals and may impact on future growth of the company.
MAIN BODY
Five contemporary issues faced by Amazon
Impact of artificial intelligence: artificial intelligence is a great way to contact connect and
communicate with the people across the globe. Through AI Technology korma Amazon enables
to identify what their customers are looking for and how they could have built an easy way to
approach to the public. It is a kind of machine learning solution which collect data and improvise
deep learning in a faster. It gets used to understand identify what consumers are looking for and
what specific products are they searching. The company facing issues related to Ai in terms of
security, personalization trust and delegation and database this. Undertaking personalization
services charging high cost and people are unable to give such a big amount. The problem about
security is a big concern as Amazon collect data from customer’s end. The assistants get access
to emails, social media , gallery and any e network people are using which break the boundaries
of privacy (Brevini, and Swiatek, 2020). The trust and delegation about sharing the data is also
being an issue for Amazon as this data could be hacked and are used for different purposes.
Therefore, there is requirement of smart strategies to make secure future.

Workforce diversity: An organisation is required to be diversify in terms of their working
environment. Workplace diversity is all about creating no discrimination of men and women and
there should be same treatment for all is respect of different culture and language, colour and
background. Amazon recruit employees from diversified cultures and background. The company
facing issues in hiring more number of women employees as they are present 31% in number.
Internet security: The issue of Internet Security is also causing many problems for Amazon.
Due to less security protocol and hackers attack is rapidly increasing which lose customer
engagement and their trust over company.
Modern working practices: The modern workplace practices are getting modern rather than
traditional which brings fast changing environment, mode of investment and many other
practices which leads to create issues in term of financial stability.
Fast innovation: Fast innovation is one of the major cause in contemporary business
environment. A shift to fast fashion will lead to remaining dead stock and changing customer
demands frequently. This give rise to waste and degradation of resources.
Focus on two main issues
Artificial intelligence is all about building a platform to reach number of people simultaneously.
This technology is widely used by many modern it organisations in order to get access of
customer's data and their search history. It is a programming or can say machine language that
collect data and provide an inside about what people are looking for and search really often. It
provides many benefits and configuration to the organisation in today's technological
environment. Artificial intelligence resolve problems like connecting with buyers, reaching with
their reviews or feedback, reaching to their queries. All these can perform effectively and
indirectly without even making aware to the people. It is a great way of making work simpler
and find anything that an individual wish. Organisations are necessary to use these Technologies
appropriately ( Bryar, and Carr, 2021). Current modern environment largely focusses on creating
more use of robotics and less of labour which is not a sustainable and effective way of working.
Human psychology will be better understood by human itself not by robots. They are used for or
making the work simpler but not affective which can only perform by workers who contribute
great efforts in in giving best efforts to the company.
These issues in Amazon are about personalization over privacy, security, agent assistant,
policies trust and delegation and database biasness. All these issues are related to the data which

Amazon gather from accessing personal accounts of people which is not a great policy for
building a positive impact of technology. People always want safety and security of their private
information’s but due to artificial intelligence is not completely doing so. Also and the Alexa
works as an agent to solve people queries but it creates difficulty for Complex questions that the
customers would not find out and leads to lower level of satisfaction. All these are machine and
Robotics language which may vary from practical demands and situation of human life. Amazon
needs to work with more clarity and concept clarity over artificial intelligence. The company
find issues relating to securing payments, providing best products as per customer satisfaction
and sometimes fails to be sure while analysing what their customer exactly want. All these
consequences lead to show a negative Illusion of Amazon practices.
Workplace diversity: Workforce diversity is necessary aspect to look out for Amazon. As it is a
well reputed brand across the globe they contribute in large number of economic development.
Diversify and workforce culture create a fair environment for all the people to get an opportunity
for working in Amazon. There will be no biasness in respect of colour background culture of the
individual (Delfanti, and Frey, 2021). The Amazon has 31% of women workforce whereas 7% of
black and Latino workers. But the company provide lower plate jobs to these workers which the
company plans to make wide range of workforce diversity goal within next year. They decided to
agree on hiring black people more than the previous numbers in order to provide them corporate
rules as engineer, designers and managers. The company needs to provide fair treatment by
giving roles and responsibility as per their talent and capabilities. The company needs to identify
all the root causes which create any disparities at workplace. Organisations are required to
perform within diversified culture is it will provide benefits in making the organisation
multilingual. Through this way, employees will get new ideas and different workplace culture to
satisfy customer’s needs. The companies worked on global level deals with every kind of people
so that they need to adopt a diversify culture which is filled with diversify employees who can
bring Innovation and potential to work in international market.
Critically evaluate the impact of two issues on Amazon
The impact of artificial intelligence is in both positive and negative terms for Amazon.
Therefore, companies utilising this technology to provide those product and services which
customers are looking without making any direct communication. The technology is creating
software and products which are contributing in number of sales. Amazon is the largest AI

provider as undertake all the customer queries and make research about customers need. The
company has launched many new speakers Alexa which is a smart AI platform to converse with
Google about what consumers wants to look and acknowledge. another example of AI
Technology is automated robots which are present in Amazon warehouse to transfer materials
and organised products in a well manner. The company used flywheel approach which is about
Converse energy and keep up momentum (Wu, and Gereffi, 2018). Through this approach,
Amazon plan to make less efforts in converting the energy to get start the artificial intelligence.
It is beneficial for long term existence. Apart from all the commitments and several use of
artificial intelligence in all over the store of Amazon, there are several issues which could not
neglect for future performance of company. Amazon has taken advantages of artificial
intelligence. As AI Technology give benefits in customer access, problem solving, serving the
best taste and preference, make their search worth. Whereas there are some disadvantages of for
Amazon as it eliminates Direct customer contact, privacy concerns and not solving problems up
to the requirement due to lack of communication and interpersonal knowledge. Therefore,
Amazon could resolve these issues by generating standardization protocol over privacy control
and create a platform for direct communication with customers (Canadian, 2017). It is necessary
for future growth of the company as competition is rising and people are becoming more
conscious about that choices and purchasing.
Workplace diversity: Workplace diversity create a fair environment for all the people of
society. It underpins and eliminate any business regarding caste religion culture background and
colour of candidate who wants to apply in Amazon. It is fact that Amazon is planning to make
their effective diversified culture within the next year but the company is really failed to do so.
As the number of black women’s are less in Amazon whereas white employees are more in
numbers which shows a negative abundance and create workplace issues in Amazon working
environment. The woman facing a lot of trouble in in solving problems due to unwanted
interference of managers who are not ready to listen the exact solution of the problem
(Srinivasan, 2021). The poor management and chain of command lead to negative impact
employee’s retention. Many women workers left the organisation due to underrepresented
backgrounds. They are not copying up with their work force and instead of taking forward
approaches Amazon stepping back in making best practices. Black employees often face many
biasness regarding their career options and personal lives. It has also revealed that Amazon

create discrimination in paying compensations and salaries to both men and women workers as
men have high salaries as compared to women. The company facing many struggle in
maintaining diversified culture but fails due to internal work practices. Therefore, the company
needs to make effective Strategies and policies for maintaining a positive work environment in
order to save future for organisation.
It has critically evaluated that workplace diversity create a negative impact when it come
discrimination and business among employees (Ceil, 2018) (Classen, 2020). Amazon is able to
read employees in the same way and provide independence to take decisions regarding any
problems. This shows how valuable the company is performing which safe and secure the future.
Artificial intelligence has its pros and cons positive and negative impact. Therefore, if this
contemporary Technologies utilise effectively by not harming security and privacy of others
could take a great lead in future economy.
CONCLUSION
The report has concluded that there are several contemporary issues create obstacles modern
it organisation. it has identified that modern technologies have generate many opportunities and
simplest way of working for that organisation. But they have in terms of practical situation. the
five issues identified are artificial intelligence what is diversity from our fast innovation modern
working practices and internet security. The main issue identified in Amazon are workforce
diversity and artificial intelligence that leads to create many negative consequences Amazon
performance. These 2 practices undertake a large economy and employee satisfaction. Amazon
sometimes fail to perform best of their practice due to bias and discrimination in internal
environment.

REFERENCES
Books and Journals
Atal, N., Berenguer, G. and Borwankar, S., 2019. Gender diversity issues in the IT industry:
How can your sourcing group help?. Business Horizons, 62(5), pp.595-602.
Brevini, B. and Swiatek, L., 2020. Amazon: Understanding a Global Communication Giant.
Routledge.
Bryar, C. and Carr, B., 2021. Working Backwards: Insights, Stories, and Secrets from Inside
Amazon. Pan Macmillan.
Delfanti, A. and Frey, B., 2021. Humanly extended automation or the future of work seen
through Amazon patents. Science, Technology, & Human Values, 46(3), pp.655-682.
Wu, X. and Gereffi, G., 2018. Amazon and Alibaba: Internet governance, business models, and
internationalization strategies. In International business in the information and digital
age. Emerald Publishing Limited.
Ceil, C., 2018. Sustainable Global Supply Chains at Amazon. Available at SSRN 3520424.
Classen, A., 2020. The Amazon Rainforest of Pre-Modern Literature: Ethics, Values, and Ideals
from the Past for our Future. With a Focus on Aristotle and Heinrich Kaufringer.
Srinivasan, R., 2021. Contemporary Issues in Platforms. In Platform Business Models (pp. 315-
328). Springer, Singapore.
Canadian, T.E., 2017. From 5 the Rockies to the Amazon. Untranslatability Goes Global, 27,
p.46.