Amazon's Global Business Environment: A Strategic Analysis Report

This report provides a comprehensive analysis of Amazon's global business environment. It begins by defining globalization and its driving factors, including economic integration, trade and investment, technological advancements, cost considerations, market dynamics, and environmental influences. The report then delves into a PEST analysis, examining the political, economic, social, and technological factors impacting Amazon's operations. Furthermore, the report addresses the complexities of strategic challenges faced by companies operating in a global environment, such as cultural differences, government regulations, and communication barriers. Finally, the report offers recommendations for Amazon to navigate these challenges and improve its performance in the global market. The report emphasizes the importance of understanding and effectively managing these factors to achieve organizational goals and expand market share. It concludes by highlighting the positive impacts of globalization and the need for efficient management of challenges.

GLOBAL BUSINESS
ENVIRONMENT

Table of Content
• Introduction
• Globalisation
• Driving factors of globalisation
• PEST analysis
• The complexity of strategic challenges
• Conclusion
• References

Introduction
Globalisation is very important for a business to increase its organisational activities as well
as expansion of company into different area. This will help in improve customer bases as it
is a linkage of between business and countries, people as well as global economy. Global
business environment is full of opportunities and it consist of various factors which can
have huge impact on organisation. Company chosen for this presentataion is Amazon. This
is one of the leading American multinational company which is dealing in E-commerce
market area.

Globalisation
Globalisation can be define as a process of organisation in which it is expanding its
operations in different part of the world. This is very helpful process which help in
attracting more customers as well as increasing market share (Wetherly, 2014).
Globalisation will provide aid to Amazon in developing its brand image. It refers to the
integration of different markets in global economy which lead to increase in interconnection
of market and business.

Driving factors of globalisation
• There are different factors which are considered as a driving force of globalisation. This
is very important for Amazon company to analyse as well as evaluate various driving
factor. So that they can perform business activities in more effective and efficient manner.
Different driving factors of Amazon company is mention below.
• Economic integration
• Trade and investment

Cont.…
• Technological advancement
• Cost
• Market
• Environment
• Competition

PEST analysis
There are different factors of business environment which can have major impact on
business. It is essential for Amazon company to identify and evaluate all factors of macro
business environment. So that company can develop better strategies and take right business
decisions.
• Political factor
• Economical factor
• Social factor
• Technological factor

The complexity of strategic challenges
There are various challenges faced by company when they are operating its operations to
different market area. It is essential to analyse as well as evaluate each and every strategic
challenges so that company can perform its business in effective manner. Globalisation is
very helpful for respective company in order to increase its market share as well as profits.
In order to successful conduct business operations in global market area it has to identify
various complexity of strategic challenges.

Cont.…
All of the major issues and challenges that is faced by organisation while conducting
operations at global environment is mention below.
• Unfamiliar culture
• Government rules and laws
• Communication

Cont.…
Recommendation
There are various recommendation for Amazon company which will help in
performing business activities in more effective as efficient manner. This will lead to
smooth functioning of organisation activities at global market. Amazon company needs to
follow all rules and regulation set by government so that they can operate its business
functions in effective and efficient manner.

Conclusion
From the above report it can be concluded that globalisation will have various positive
impact on organisation as it will help in enhancing overall performance of organisation.
This will be very helpful for company to increase its market share as well as expand
business operations. It is very important for a company to manage challenges and issues in
effective and efficient manner so that company can achieve desired goals and objectives.

References
• Smith, P.A. and Cockburn, T., 2013. Dynamic leadership models for global business:
Enhancing digitally connected environments. Business Science Reference.
• Wetherly, P., 2014. The business environment: themes and issues in a globalizing world.
Oxford University Press.