Analysis of Amazon's CSR Activities and External Environmental Factors

This report provides a comprehensive analysis of Amazon's corporate social responsibility (CSR) activities and the external factors influencing its business operations. The report begins with an introduction to the concept of CSR and its importance for organizations like Amazon, followed by an examination of external influences using PEST and Porter's Five Forces analyses. The PEST analysis explores political, social, economic, and technological factors impacting Amazon's growth, while Porter's Five Forces assesses the competitive landscape. The report then delves into the relevance and influence of CSR activities on Amazon, considering consumer, worker, investor, competitor, self, and public influences. It evaluates the effectiveness of Amazon's CSR responses, identifies areas for improvement, and offers recommendations for enhancing its CSR strategies. The report concludes with a summary of findings and a list of references.

Contemporary Developments
in Business and Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
External influences to company and their value.........................................................................3
TASK 2............................................................................................................................................7
i) Relevance and Influence of CSR activities.............................................................................7
ii) Critical Evaluation of CSR response on its effectiveness......................................................9
iii) Improvement areas and recommendations..........................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
APPENDICES...............................................................................................................................15

INTRODUCTION
Occurring, existing, or living at the same period of time, this is required for organisation
which is required for the company manage and maintain the work in appropriate manner.
Corporate social responsibilities can help an organisation in meeting the competitive edge
through enhancing the goodwill and rendering new consumer base to the company. This is
essential for organisation to analyse various external environment in order to make relevant
marketing strategy (Alvarez, 2016). Amazon is an electronic American commerce as well as
company of cloud computing belong to Seattle which was founded in 1994 by Jeff Bezos. The
organisation is largest internet retailing organisation on the basis of revenues. The purpose of this
report is analysis various CSR activities and demographical factor that influences the company
policies along with their decision making procedures.
TASK 1
External influences to company and their value
As the company is one of the leading organisation in terms of internet selling and
retailing brand, the company share a large market and influence the terms of trading through
online. In order to understand the Amazon impact on the external organisational elements, this is
required to understand the external factors which is mentioned as below:
PEST ANALYSIS
This is significant for a retail organisation to evaluate the external environment of market
in order to expand and support the sustainability and growth of organisation. This is required for
an organisation to assess various different macro elements such as political, social, economical
and technological for meeting the desired outcome in effective way. Here is the brief of those
components which is briefed under:
Political Factor:
AMAZON operates its business alongside the influence of politics (Bučiūnienė and
Kazlauskaitė, 2012). These elements has influenced the organisational growth and development
in wide way. The new market strategy of Brexit affecting the business of Amazon as this has
become the biggest threat which can create uncertainty and upheaval for the economy of United
Kingdom. The EU leave implication has been executed which has created the inflation at the cost
and weakened the cost the Sound against the Euro and Dollar. Though, on the other hand, the
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support of government for the e-commerce and online/digital commerce have created a vast
opportunities for the company.
Social Factor
The social components determines the sales of products and services along with their
types. This is the framework which can impact on organisation in negative or positive manner.
According to the study of UK online buyer, people are shifting toward more smart phone
technology use while making decision of purchase (Carayannis, 2012). People like the online
purchase and opportunity of purchase as this is less time consuming task creating habit of online
purchasing among buyers. This can be considered as an opportunity of development for
company.
Economical Factor
Beside the Brexit, Amazon has claimed their expansion in the United Kingdom by
increasing more than 5, 000 workforce which is effective for both organisation and nation's
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Illustration 1: Growth of Amazon's Kindle, 2017

economy as people will be given job opportunities which can increase the per person income in
UK. And the major threat which the company is facing after the period of Brexit is new taxation
policies and enhancement in the existing one's rates. This is creating a bad working environment
for the people and consumer through deceasing the purchasing power of people. Also due to
economic stability of in the develop trade and market, this is rendering a better development
opportunities to Amazon as well.
Technological Factor
The big driver of business success is technologies. This presents various benefits which
create efficiency in the business activities so as Amazon. There is a big role of technologies in
the business of Amazon which has helped company is providing quick services to buyers.
Increasing efficiency of Information technologies has pace the growth of enterprise as this is
entirely based over the technologies in terms of ordering or tracking till distribution of products.
Thus, enhancement and modification in technologies has created positive impact on development
of AMAZON (Coombs and Holladay, 2011). But on the other hand, increasing cybercrimes,
system hacking and scam is creating barrier or being the cause of less credibility which is the
biggest threat to enterprise.
PORTER'S FIVE FORCES
In order to evaluate the entire extent overall organisation among the competition, this is
required to imply five forces analysis. This forces law helps in managing the enterprise's growth
and development through determining and undertaking the major elements of enterprise which is
creating better opportunities of development in future. This also help in shaping individual
elements of Amazon along with considering elements of external elements which is mentioned
as below:
New Entrance Threat
Business of online retail is essential. In order to meet the desired reach, efforts, time, and
investment. The growth and expansion of the digital technology which has brought change in the
industry of supermarket and retail. This would require in logistics, marketing, distribution and
warehousing etc. There are many elements which brand and time reputation that trade issues for
new entrance is challenging for grabbing the share of market. Thus, there is a low competition
for Amazon of new entrance.
Supplier's Bargaining Power
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Amazon has always been dominating in regard of supply chain as the organisation has a
good reach in the market. The company is very large which has some definite rules and terms
laid by organisation. There is almost negligible probability of switching cost for the provider and
supplier. Huge supplier amount in trading their products and services through organisation.
Hence, no supplier is the potions to meet the product price influence of Amazon thus, the
bargaining power of supplier is low in context of Amazon.
Bargaining Power of Consumer
Amazon focus over the strategy of consumer satisfaction and quality of products which
ensures the proper delivery timing, replacement of order and attracting consumer for their
services and products (Denk, Kaufmann and Roesch, 2012). Thus, there is a strong bargaining
power of buyers or consumer for Amazon which control the price and availability of products.
Bargaining power of consumer determines the cost of products and services rendered by an
organisation which can lead a company toward success. Amazon need to formulate and manage
the consumer and products according to their preferences and interest in order to keep on a
control over them.
Threat of Substitute
There are various large online companies in UK which is delivering the substitutes of
same products in competitive cost such as Wal-Mart, Flipkart etc. The substitution threat is
higher for organisation as there is no effective USP of products of Amazon and one worse review
or experience of buyer can ruin the goodwill of organisation. Also there are still numerous buyer
which prefer to shop from stores rather than online which is also creating higher threat for the
enterprise.
Competitive Rivalry
In the industry of online retail, rivalry is very high. The amount of trader has been
increase from past years such as Alibaba, Flipkart, eBay and many others. This is a giant market
of online retailing companies along with small websites and apps which is growing their business
everyday. Thus there is intensive rival competition in the e-commerce market for Amazon.
Through understanding these external elements of environment, a company can manage
their growth and development in proper manner. Above analysis represents that there is large
opportunities of development in the digital world which can help in rendering various working
opportunities. On the other hand, huge taxation terms and policies is creating inflation along with
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facing competitors is required for the company. In order to manage that and creating huge
sustainability, company need to develop some more activities.
TASK 2
i) Relevance and Influence of CSR activities
CSR refer to the steps and thoughts which is undertook by an organisation in order to
play the responsibility of social development and social communities betterment which aid in
creating a consistence relationship and strong with the clients, stakeholder, communities etc.
along with purpose of making more benefits out of the operated or incurred activities.
Amazon is a the largest American online retailing organisation which is working over the
services providing activities through online services (Du and Vieira, 2012. The organisation has
been enlisted as the second largest revenues earning organisation along with second largest
company while it come to sales after Alibaba. The organisation provide wide range of services
such as streaming audio and videos, video games, software, fire tablets, consumer electronics,
cloud infrastructure, Kindle books app along with specific low-end products in their
AmazonBasics brand. As the organisation is a vast company of United Kingdom, thus, this has
the mass buyers, suppliers, consumer and other communities which has direct and indirect
relationship with the organisation.
Here are the key elements which is determined the success of CSR activities from the
implemented activities of Amazon elaborated as below:
Consumer Influences: Consumer make the decision according to the products and
alternative producer of services preferring more better quality as well as company reputation
among the market. An organisation has a great consumer significance which a reputed
organisation can attain within a specific time period through organising certain activities. The
organisation also prepare various productive marketing strategies for benefiting the buyers
including CSR activities as well.
Worker's Influence: The employee of Amazon are the major asset of organisation which
company render the priority when it comes to benefiting their people. These influence the
productivity level of products and services which Amazon provide along with many other things
for which the company undertake various process for betterment of worker and satisfying their
employee.
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Investor Influence: Social organisational activities such as Amazon aid their investors
for making the enterprise determine about investing in organisation as well as they are impactful
for the large extent of company. The CSR duties operated through organisation impact over the
best organisational investment from various points of external environment and hence, the
enterprise have to prepared for the management plan and marketing all of their incurred
operations that should be clear while making the decision for investors (Eweje, 2014).
Competitors Influence: The organisation prepares planning of their management and
operations of strategies of organisation by where competitors which are threat for company of
organisation. Thus, organisation itself involve various activities in order to support the local and
national society and community to develop which can make them more different from their rivals
along and create a strong influence on their competitors. Through organising such activities, the
organisation not only be able to make a unique brand image and reputation along with increasing
sales of services.
Self-Influence: While organisation is making various different CSR activities in their
organisation, this make a big influence on the marketing strategies of company along with create
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Illustration 2: sales influence after CSR, 2017

and introduce a positive goodwill of organisation covering all negative influence and flaws of
Amazon which is better for the company as the organisation can highlight their best work and
duller their negative responses. This also create the people of Amazon more diverged and
innovative ideas and opinions which can create expansion opportunities for the company as well.
Public Influence: Digital world is the best media channel is the recent scenario which is
creating vast opportunities of development and evolution for the company as well. Any
information it is positive and negative, it create a wide impression over the public of United
Kingdom. The organisation is delivering various charitable operations such s funding their
products and revenues to American Red Cross, Boys & Girls Club, St. Jude's Children Research
Hospital etc. along with conditional charities such as natural disasters like Tsunami Hurricane
Katrina relief etc. When Amazon operates their business and coordinate any CSR activities for
gaining new consumer in United Kingdom which can help in making decision-making and
influential planning to Amazon for public involvement (Gilberthorpe and Hilson, 2016).
ii) Critical Evaluation of CSR response on its effectiveness
Amazon is one of the largest online retailing company which is distributing a huge
amount of devices and dominating the whole market after Alibaba. This is one of the major
evaluation technique which helps in evaluation of organised activities and their response:
Community development & Charity: Amazon builds a strong connection or relationship
among their clients or stakeholder in United Kingdom after which organisation aware them
arbour creation and value of establishments of strong relationship with their buyers through
investing in charitable trusts. The organisation recently is promoting various products and plan
through attempting various development and evolution work through which public get more
aware about the unaware topics. This is being attempted through the help of organising various
campaigns.
Green Business: The organisation is recently working over more green products, services
and green distribution activities which can help them in meeting success in effective manner.
The world is suffering from various issues such as global warming and many other. Through the
help of all CSR activities of development of environment and pollution reduction, Amazon can
make more concern of people and public with the help of proper marketing and promotion
techniques. Through using proper distribution and packaging techniques for their consumer and
environment betterment, the company has been able to attract a positive response of their buyer
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and other public. In order to create a better goodwill, this was the best activity which is making
the company more concern about the organised activities.
Consumer First and Keep Interaction: Amazon organisation knows that clients and
consumer the main communities of their achievement and Amazon through making few
alternation can make the changes in their features which help them in gaining the betterment of
system and business growth. Amazon has been enlisted as the company which have been able to
reward and satisfy clients with purpose of gaining more benefits from such sort of activities.
Waste Minimising Industrial: In the process of manufacture and distribution procedure
of services and products of organisation, Amazon is responsible for creating major waste and
negative environmental influence on business activities (Sturdy, 2011). Though, company has
organised various activities through hugely promoting transparency among the activities and
operations. Though, the company has been one of most popular activities which is popular for
their sustainability among the online retailing market. The company have changed their system
of packaging and working making it more reliable and functional according to the environment.
Thus, this has created a good response among consumer and market creating a unique reputation
of enterprise.
Structuring Consultative Community: Amazon has been contributed in development of
various communities for the fulfilment of their purpose. There are committee types which aid the
consumer and other social communities for rendering and retaining some constant interaction
and communication with the organisation in order to segment and eliminate any kind of
confusion and resolution with service and product distribution (Hodgkinson and Healey, 2011).
But the comply would not be able to make the credibility and trust among the buyers as there are
huge amount of consumer which are not satisfied which is ruining the brand image. But through
using effective communication and marketing tools, one business can meet their requirements so
as Amazon. The company is aiming more consumer emotion as the tool of attracting buyer for
making product and service purchase. Also through organising CSR activities, enterprise can
meet their desired outcome in effective manner.
Education Contribution: Amazon is one of the largest online retailing company which is
organising various types of CSR activities in different nation in order to support the growth of
organisation. Thus, the company is also contributing empowerment of children for which they
are contributing a huge amount of their revenues in the educational institution in order to
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improvement the social level of education and literacy. The company has a good reputation and
positioning in the world which is making them more beneficial.
Employment Betterment: Worker betterment is more significant for an organisation in
order to meet success which is required for the betterment including the services and facilities of
training, real and accurate wage, accommodation, share benefits amount and other activities
which can help them in meeting desired outcome. As the company have been facing the issues of
warehouse of Amazon, which was leading worker to various health and metal issues such as low
visibility etc. The company implemented million in the maintenance and better management of
their warehouse which have led them in better working and productive performance in their
company. This have led company to a better working styles which is assisting to organisation in
several ways (Mandhachitara and Poolthong, 2011).
Thus, the cause behind the major success of Amazon is proper advertising, promotion
and marketing techniques along with right choice of medium of working. The organisation is
helping their growth through implementing the activities of corporate social responsibility in
various sector which is the major cause behind the longer sustainability of enterprise.
iii) Improvement areas and recommendations
As this is prominent that enterprise is one of the largest organisation which is distributing
retailing products and services through various distributors. Through analysing the external
environment, the influence of macro elements can be assessed which United Kingdom has over
the organisation. Amazon has been increased rapidly in United Kingdom as people are more
likely to purchase the services and products through online. Through using proper tools of
marketing and promotion, Amazon can meet their target group which lead to long term
sustainability of company in the competitive industry. Though, there is a huge influence of
organization's CSR activities on the development and sustainability of enterprise, the
organisation need to improve some areas and factors in order to make the evolution for longer
time period and keep sustaining in the industry among the strong and numerous competitors
(Schneider and Spieth, 2013).
The first improvement area which Amazon need to focus over is to pay the more focus
over implementing activities upon CSR in environment and pollution sector. As the world is
suffering over more global warming issues each and every day, company have to come up with
operations or strategies which can directly help enterprise in reducing the CO2 from
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environment. Though Amazon have been contributing in several NGO's, disasters, coming over
from harm due to disasters and many other. They need to implement more effective technique
and methods through which more environment friendly activities can be executed. The company
have been enlisted as the major environment friendly organising activities which has been able to
create people's attention.
On the other hand, Amazon requires to be more solicited more about the community
situated in remote region and need to meet the priority in few employment extent for catering
them to new scenario or era of more rightful and happier society. Amazon has been actively
participated in anti-terrorism activities, man-made disaster, poverty reducing organisation,
contributing in trustee of health and children care etc.
In the whole time, competitors of business are the major threat which Amazon need to
manage in order to create strong sustainability in the workplace. There are various rivals and
competitors which are emerging in the working environment that can restrain the business of
Amazon as well. In order to keep managing the operation and develop as well as sustain in the
competitive marketplace, this is required for organisation to implement effective activities of
marketing and promotion to refrain in the market (Pompper, 2015).
A company need to balance their growth and development in order to manage their
position within an organisation. This is important for enterprise to create a better positioning in
the competitive marketplace which lead them in a great market positioning. In order to sustain
and develop, Amazon.com create a vast CSR activities in various fields which help them in
meeting their sustainability in business. Through the help of recommended areas, Amazon can
meet their outcome and refrain in their internet retailing industry. Though organisation is still
struggling with their offline buyers, and the competitors increasing in the online sector, through
the assistance of CSR activities, they can meet to the desired outcome in effective way along
with sustaining in industry for a longer period of time.
CONCLUSION
Above report summarise the value of corporate social responsibilities which can help an
organisation in meeting the competitive edge through enhancing the goodwill and rendering new
consumer base to the company. Digital world is the best media channel is the recent scenario
which is creating vast opportunities of development and evolution for the company as
well.Amazon builds a strong connection or relationship among their clients or stakeholder in
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