SIM337 Contemporary Developments: Amazon's Business Strategies

This report provides an analysis of Amazon's business strategies, focusing on the external influences that shape its operational activities and decision-making processes, as well as the impact of Corporate Social Responsibility (CSR) initiatives on its effectiveness and sustainability. The report uses...Read More

Contemporary
Developments in
Business and
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
EXTERNAL INFLUENCE ON AN ORGANISATION................................................................3
PESTLE Analysis........................................................................................................................3
TASK 2............................................................................................................................................5
CORPORATE SOCIAL RESPONSIBILITIES AND SUSTAINABILITY..................................5
2.1 Influence and relevance of CSR on company........................................................................5
2.2 Critical evaluation about the effectiveness of Amazon’s response to CSR...........................6
2.3 Some areas of improvement and recommendations..............................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Contemporary development describes the procedure of arranging and arranging the business
choices for generally speaking achievement and development of an association. It portrays
approach to which an organization needs to make changes according to current pattern of
commercial centre (Renwick and et. al., 2016). For this reason, the board of a firm requires
distinguishing outside variables, for example, political laws, exchanging arrangements and so
forth which tremendously impact development of organization, with the goal that proficient
choices can be made. This report is based on Amazon which is an American multinational
technology company which focuses on e-commerce, cloud computing, digital streaming and
artificial intelligence. Moreover, it is known for the disruption of well established organisations
through technological innovation and mass production. Despite from this, it is classified under
two sections, first one depicts the external influence of operational activity and decision process
of Amazon and second one depicts how organisation is influenced by CSR initiatives to achieve
effectiveness and sustainability.
TASK 1
EXTERNAL INFLUENCE ON AN ORGANISATION
PESTLE Analysis
This framework is useful regarding the monitoring and analysing the macro factors that has
huge impact on the functioning of company and also helps in analysing the risk factor for it. In
terms of this, various external factors are evaluated below for the respective company:
Political: Amazon is an E-Commerce company that deals in various kinds of products over
the globe and also abide by political and legal regulations in each area. Moreover Amazon
depends on the Government support to execute distribute and profit of it. Away with this
company prominently depend on political stability and E-commerce support which is also
affected by cyber security bills (Pestle Analysis of Amazon, 2020). Instead of this Chinese
companies rice to compete against Amazon by offering their services to public and making it
cheaper and easier for them while Amazon services are getting neglected.
Economical: Retail Industry is the one that take the economic beating and also remain
profitable as people always need the prominent items sold by the retailers. But it develop tough
competition for the Amazon for example, Walmart is giving significant competition Amazon on

the online platform by offering more products that can be bought online and send to the home
through their stores (Pestle Analysis of Amazon, 2020). In terms of this, Amazon needs to focus
on the grocery sector in order to battle against Walmart.
Social: Many of the people does not believe that Amazon is negatively impacted on the
view of Public Health as obesity is increases among the youth ever before. In terms of this,
companies under pressure to enhance the lifestyle by launching new bills and changing the fast
food chains. Moreover in modern world online shopping is preferred by the adults because it is
easier who have difficulty in walking and driving (Ahmed and Ogalo, 2019). Despite from this
online shopping is popular because of its accessibility and ability as the customers’ just need to
pick and place order for their products and now it also provide quick shipping for their Prime
membership subscribers.
Technological: Amazon is the digital technology company and also hugely impacted by
the profitable factors. In terms of this it heavily relies on the prominent degrees of Technology in
order to distribute the products to their customers and also experiment the new and creative ways
for their customers to receive their packages. Now Amazon is considering new prominent
methods for shipping that clearly describe their creativity and technological skills (Pestle
Analysis of Amazon, 2020). Along with this Amazon has just doubled its staff in the UK situated
research and development centre in order to discover and manage the technological advancement
to make their customers happy and also improve the logistics behind the scenes.
Legal: Amazon need to comply its operations with various laws and regulations because
legal factors have huge impact on business considering discrimination laws, customer protection
laws, antitrust laws and many more. It is considered as an opportunity for the company to
enhance its prominent efforts to eliminate the counterfeit sales on the online platform (Zin and
Ibrahim, 2020). Moreover the products that are offered by the sellers of Amazon are authentic
and original and there are various customer privacy acts that can create thread in the external
environment for the Amazon. Moreover the sale of copied and imitated products on Amazon is
strictly prohibited.
Environmental: Currently Amazon also faces the pressure from the investors and
stockholders to show the relevant information regarding their environmental impact. Moreover it
becomes another challenge for Amazon to eliminate the organisational emissions because it is
difficult to analyse the emission from The E-Commerce business. Despite from this, ordering

online needs less energy rather than driving to the physical Store and picking up the grocery
(Pestle Analysis of Amazon, 2020). In terms of this Amazon have more than hundred million
Prime members that are eligible to get their delivery within two days.
TASK 2
CORPORATE SOCIAL RESPONSIBILITIES AND SUSTAINABILITY
Corporate social obligations are the training which is utilized in the joining of social and
ecological objectives inside the business exercises. It is characterized as the automatic business
structure which is valuable for organization so as to expand their general execution and for this
the general responsibility is of organization and it incorporates partners and society (Nudurupati,
Tebboune and Hardman, 2016). It is likewise valuable in controlling the costs, improving brand
of organization and drawing in top quality ability for the achievement of organization. CSR is
useful both organization and society as it helps in building up the brand picture and useful for
advancing comprehensive turn of events.
2.1 Influence and relevance of CSR on company
Amazon is top online business organization in world and include in dispersion of its
superior items across - regional. Additionally, organization has tremendous number of client
base, providers, purchasers and a lot more who put gigantic effect and immediate and
backhanded relationship with organization. Clients are considered as key point and determiner of
accomplishment of organization since they can without much of a stretch turn showcase as per
them inside a second.
CSR initiatives of Amazon
Sustainability: Amazon constantly put emphasis around the nearby issues in which local
networks are profited. Inclusion of local people individuals brings about the fruitful execution of
undertaking. Organization empowers the interest of nearby individuals in their undertaking
exercises as these individuals input an incentive in venture in light of their insight. For this, the
point of organization is to improve the nature of their training, infrastructural offices for local
network by giving perfect and safe drinking water (Myers, 2019). As far as condition,
organization is worried about to give something back or coming back to nature in a consistent
way. For this, organization can safeguard the accessible assets which are significant in securing
nature

Environment: Natural assurance activities are taken by organization to ensure their
privileges and it is likewise useful for their business reason as it helps in pulling in an ever
increasing number of clients which helps in improving the deals. Number of ecological norms
are taken by organization and for this, explanation for is expanded contamination, deforestation,
characteristic disasters and some more (Lange, Lenglet and Seyfert, 2016). For this Amazon take
numerous activities like planting more trees, use motor which is condition neighbourly and so
forth which put positive effect on the picture of organization and dispose of the carbon content
from climate, for example, forestation to decrease the an unnatural weather change.
Influence on CSR initiatives
The sustainability activity which is taken by organization is compelling on its social
obligations since it put accentuation on the nearby networks which are helpful and it brings about
advancement of organization. Along these lines, organization saves its accessible assets as they
are critical to ensure nature. Customers consistently settle on their choices so as to purchase any
item and at the time they generally think about certain models think about elective item, consider
nature of item which is offered by organization and furthermore consider goodwill and picture of
organization by which they are incredibly impacted (Chang, 2016). Picture of organization
effectively gets enormous measure of clients inside couple of seconds and due to that clients are
significant for Amazon compelling to them. In this manner, by considering every one of these
elements organization set up its showcasing procedure while contemplating benefits of clients.
Despite from this, organization additionally take activities for condition which impacts the
clients and financial specialists to ensure the organization at the hour of propelling its item on the
grounds that corporate social duties assumes a significant job in the improvement of notoriety of
organization in the market. Workers has a place from solid network which impacts achievement
of organization in with they are considered as most significant partners of organization which
expands profitability in measure of circulation of items (Dickmann, Brewster and Sparrow,
2016). For this workers are for the most part affected by choices and methodologies of
organization and it turns into the obligation of an association to make their representatives
fulfilled for advancement and achievement of both organization and workers.
2.2 Critical evaluation about the effectiveness of Amazon’s response to CSR
Community development and charity: Amazon makes healthy and strong relationship
with their individual clients. It is just path by which organization gets mindful about interest and

need of client in light of their solid relationship with them by creating various kinds of altruistic
things. Because of this, Currently Amazon remote items by buying various kinds of network
improvement exercises creating social mindfulness among overall population with respect to
well known points, for this organization reacts it by making effort of those mainstream subjects
of society and spreading mindfulness among individuals (Leonidou and Hultman, 2019). The
talked about exercises are worried about the provincial improvement of country and wellbeing
and sanitation as it is successful for organization to build up its picture and notoriety in the
market.
Green business: Amazon right now focuses towards green industry and creating it all over
world by building up some Green activities and guidelines. By considering current ecological
circumstance it is redirected towards to a worldwide temperature alteration step by step and it is
reason by which organizations make some Green arrangements and plants which remember for
them system so as to draw in an ever increasing number of clients and make green business in up
and coming future (Davidsson, 2016). It is connected with keeping society unadulterated and less
populated and it incorporates decrease of waste it is valuable expanding reiteration and picture of
organization. By seeking after this green social exercises Amazon increase tremendous Goodwill
and make solid convictions society and open about organization in vehicle showcase. Here,
organization reacts in this by planting more plants which is utilized in lessening the worldwide
temperature alteration. Regarding this, the couple of reactions are created by organization, for
example, planting more plants and utilizing condition agreeable motor which is at present
utilized by organization and gainful for them in expanding the picture of organization in world.
2.3 Some areas of improvement and recommendations
Business condition of E-Commerce is dynamic in nature and for this organization needs to
make alterations in its operational exercises to pick up manageability in advanced industry and
pull in an ever increasing number of clients towards it. For this different suggestions are given to
progress of organization:
 Organization has an incredible commitment each progression of outer components which
is useful and dutiful to government so as to make a decent economic situation and
advancement for them. For this organization ought to consider political and lawful states
of various country so as to grow its business which is helpful in wiping out hazard factor
for them.

 Organization should give more consideration towards Global issues since it is significant
point and contribute more so as to take out CO2 gas in climate and for this they have to
grow progressively green and natural measures in their organization.
 Organization should recruit more representatives from overall population in various
divisions which is useful so as to wipe out issue of joblessness and for this organization
can make programmed commitment and satisfaction of CSR exercises.
CONCLUSION
Consequently, it is analysed that constant alterations and changes is significant for
organization so as to develop themselves and create them according to the necessities and
requests of clients. For this contemporary advancement assumes a significant job so as to make
progress for organization as per prerequisites of market. In this Amazon is profoundly affected
by various kinds of outside elements and furthermore need to break down them so as to make
association progressively satisfactory and worthy by clients in commercial centre. They likewise
advance global business so as to make progress from their confine and bring improvement for
network. For this reaction of organization additionally referenced and required upgrades are
likewise given regarding organization.

REFERENCES
Books and Journals
Ahmed, A. and Ogalo, H.S., 2019. From hrm to e-hrm: Contemporary developments from
scholarly work. Annals of Contemporary Developments in Management & HR
(ACDMHR)', Print ISSN, pp.2632-7686.
Chang, J.F., 2016. Business process management systems: strategy and implementation. CRC
Press.
Davidsson, P., 2016. The field of entrepreneurship research: Some significant developments.
In Contemporary entrepreneurship (pp. 17-28). Springer, Cham.
Dickmann, M., Brewster, C. and Sparrow, P. eds., 2016. International human resource
management: contemporary HR issues in Europe. Routledge.
Lange, A.C., Lenglet, M. and Seyfert, R., 2016. Cultures of high-frequency trading: Mapping the
landscape of algorithmic developments in contemporary financial markets. Economy and
Society. 45(2), pp.149-165.
Leonidou, C.N. and Hultman, M., 2019. Global marketing in business-to-business contexts:
Challenges, developments, and opportunities.
Myers, M.D., 2019. Qualitative research in business and management. Sage Publications
Limited.
Nudurupati, S.S., Tebboune, S. and Hardman, J., 2016. Contemporary performance measurement
and management (PMM) in digital economies. Production Planning & Control, 27(3),
pp.226-235.
Renwick, D.W and et. al., 2016. Contemporary developments in Green (environmental) HRM
scholarship.
Zin, M.L.M. and Ibrahim, H., 2020. The Influence of Entrepreneurial Supports on Business
Performance among Rural Entrepreneurs. Annals of Contemporary Developments in
Management & HR (ACDMHR), Print ISSN, pp.2632-7686.
Online
Pestle Analysis of Amazon. 2020. [Online] Available through <
https://www.marketingtutor.net/pestle-analysis-of-amazon/ >./