BUSI1683 Report: Evaluating Amazon's Internal and External Factors

This report provides a comprehensive analysis of Amazon, examining the external and internal factors that contribute to its success. It begins with an overview of the company's history and organizational structure, followed by an evaluation of its management styles, including servant and contingency leadership, and their impact on corporate culture. The report then utilizes PESTLE analysis to assess the impact of political, economic, social, and environmental influences on the business. Furthermore, it investigates Amazon's ethical and sustainable perspectives, highlighting its commitments to climate pledges and employee well-being. Finally, the report explores Amazon's strategic approach to future development, including its responses to economic challenges and its investments in renewable energy projects. The report concludes with a summary of key findings and insights into Amazon's ongoing success.

Report
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Contents
INTRODUCTION...........................................................................................................................3
Overview of the company – history and its organisational structure.....................................3
Evaluate the management styles and approaches adopted and access the impact these have on
their corporate culture.............................................................................................................4
Consider the impact of external influences on the business using “PESTLE” analysis........5
Investigate the organisation’s ethical and sustainable perspective.........................................5
The strategic approach to future development.......................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Internal and external factors have high influence on the success as well as failure of a business.
Organization owners cannot control external factors but they can adjust and anticipate such
factors in order to keep track of business. Along with this, companies leaders and owners have
important impact on internal factors which in turn influence on future of companies (Atkins,
2020). The present report will cover organizational structure and management styles used by
Amazon. In addition to this, there is a discussion about internal and external factors which
impact on business success. In the last, there is a discussion about strategic approach to future
development associated to chosen company (Uzonwann, 2017).
Overview of the company – history and its organisational structure
Amazon is an American multinational technology company which was established in year
1994 an headquartered in Washington, U.S. The company deals in e-commerce, digital
streaming, cloud computing, artificial intelligence and so on. Amazon business started as online
marketplace for books but at present it is now expanded to sell video games furniture, food,
jewelry, electronics, essential items and many more. It is the largest Internet company by
revenue in the world and is one of the world’s most valuable companies in 2020. Its prime
delivery and entertainment subscription service provided to more than 15 billion global
customers due to which it is growing revenue at a 37% clip to dollar 35 billion. The company has
around 98,000 staff members who performed activities properly, which is the main reason of its
success.
Amazon is one of largest e-commerce retailer in the world that has diversified business
portfolio. The organizational structure of company determines how its operational activities are
directed for attaining objects (Blackman and Veit, 2018). It is important for Amazon to have well
defined structure for managing every functional as well as divisional units. The structure adopted
by Amazon is vertical hierarchical approach and here in the chain of command travels from top
to bottom. It has clearly defined structure which ensure proper and seamless flow of information
between all the stakeholders of company. This also help company to execute activities and
control over them in an effective manner.
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Evaluate the management styles and approaches adopted and access the impact these have on
their corporate culture
It is analyzed at Jeff Bezos is it transactional, task oriented and transformation of leader. The
company believed that customer is King of market UN focuses on providing satisfactory and
timely services to them. The leadership style and approaches used by Amazon is mentioned
below:
Servant leadership style: It is referred as a management style which can assist an
organization to develop strong teams who are satisfied both professionally and personally and
contribute full potential and quality work for success of an organization (Braga and et. al., 2019).
This leadership style believe that if employees team members feel professionally and personally
fulfilled then they work with full zeal in order to achieve objective and meeting with the targets.
Jeff Bezos is an exceptional and proven business leader which is core Amazon’s business
practice. This leadership style help Amazon to execute activities effectively and providing
satisfactory service to customer which leads to attainment of competitive advantage and gain
success at marketplace.
Contingency leadership style: As per this style, leaders effectiveness is contingent and is
based on how leadership style matches with the situation. In addition to this, Jeff Bezos
leadership style has been characterized as cutthroat, demanding and harsh which is argued that
leadership style fitted the situation and strengthen its position rapidly. Moreover, adoption of this
style assist company to deal with issues and cope up with them easily which leads to
maintenance of performance as well as profitability at marketplace (Francis, 2017).
Apart from this, it is determined that Jeff Bezos is a task oriented leader and followed
transactional style of leadership. Along with this, it is also undertaken to be transformation a
leader as it gives great output and seeks innovation. All these assist company to achieve its
vision and gain success effectively at marketplace.
Amazon’s corporate strategy is considered as concentric diversification. In addition to this,
it is based on leveraging technological capabilities and following cost leadership strategy which
aim to provide products and services at lower price and gain success. By the assistance of servant
leadership style, the company is able to actively manage it’s a staff members and provide them
positive working culture which in turn bring out creativity of staff members. Along with this, it
also help company to save their costs of hiring new employees and easily cutting down the cost
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of products which attract large number of customers and is the source of attaining competitive
advantage. Moreover, the corporate strategy of Amazon is achieved because of its adoption of
contingency leadership style that allow business to deal with the situation in a proper and timely
manner (Bello, 2021).
Consider the impact of external influences on the business using “PESTLE” analysis
Political factor: In the present time, the political factors which impacting on performance of
Amazon is Brexit deal, trade tariff, Asian market and countries, dependent on government
support and many more. It is determined that Amazon could not seem to hold market share
within the Asian market as Chinese organizations such as Ali express and Alibaba is gaining
more share in Asian market (Assis Costa, 2018). In addition to this, Amazon is a global company
and is required to follow all the rules as well as regulations of different governments which raise
the cost of running business operations and impact on its revenue level in a negative manner.
Economical factor: it is stated that COVID-19 and economic lockdown has been
devastating for many organizations globally but Amazon seems to be different and gain positive
results. It is determined that companies efficiently fulfilling customer requirement of household
essential, news, entertainment and so on. On the other hand, it is analyzed that high labor cost
mainly in UK and USA affect on its profitability in a negative manner (Berkelaar, 2017).
Social factor: The behavior of customers is changing rapidly as they move towards online
shopping instead of offline. It is analyzed that Amazon is doing well as it is delivering
everything at their door steps that attract large number of customers and leads to increase in sales
and customer base level. On the other hand, the consumption of organic food is increased which
is considered as a negative factor for Amazon.
Environmental factor: It is analyzed that Amazon is contributing to environmental damage
as traffic related emissions, volume of packaging , environmentally dangerous products are the
main areas of criticism (Escobar Torio and Tam, 2018). For this, company aims to make 50% of
its shipments zero carbon by the year 2030.
Investigate the organisation’s ethical and sustainable perspective
Amazon is committed towards developing a sustainable business for its customers and the
planet. In the year 2019, CEO of Amazon founded the climate pledge that means a commitment
to be net zero carbon across business by the ending of year 2040. In addition to this, Amazon
vision is to make shipments net zero carbon which 50% of all shipment net zero by 2030 as the
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company focused on sustainable process improvements, Energy initiatives, investments in
electrification and recycled materials. The company stated that due to massive shift in 2020 with
the emergence of COVID-19, it double down their commitments associated to climate crisis. It
also ensure inclusive and safe workplace to operate staff members so that it is easy for every
employee to participate in making positive influence on the planet and society (Buell and
Kalkanci, 2021).
For instance, Amazon’s corporate carbon footprint quantifies the overall greenhouse gas
emission attributed to indirect and direct operational activities. It measured influence on climate
and use this data in order to develop meaningful carbon reduction goals.
In order to perform their job duties, the employees of Amazon act lawfully an ethically. It is
analyzed that staff members who are not sure about the code of conduct directly contact to senior
authorities so that they can work systematically and ethically in organazation. Therefore, it is
said that Amazon follow all the ethical and sustainable perspectives that help in working
systematically and properly within the marketplace (Gebara and et. al., 2019).
The strategic approach to future development
 For dealing with the economic issue which as a result of pandemic, Amazon announced
that it will temporary stop supply of deposits with non essential products from third party
sellers within USA. It said that the stock of third party sellers is blocked for more than a
month as they do not have right to sell. This strategy assist Amazon to continue the non
essential delivery of its own products and maintain its performance level in this
pandemic.
 Along with this, Amazon is launching four new renewable energy project globally which
is designed to supply green power for the information centers operated through each
cloud computing subsidy. In addition to this, it will be using solar energy to power the
initiatives within Spain, Australia and Virginia and it is analyzed that E-tailer is already
operating around 86 energy project globally in order to mitigate electricity demand of
data centers. In the present, respective organization also revealed plan to develop a new
solar farm in Virginia in order to powered a campus which is 100% renewable energy
(Rudke and et. al., 2020).
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CONCLUSION
From the above study, it has been concluded that it is important for an organization to
conduct internal and external analysis as it help in gaining knowledge about the factors that
impact on its operations and business activities. In addition to this, it is determined that in the
present time companies faces a lot of issues time to deal with them it comes with effective
strategies such as increase online market presence, offering customized products, focus on
customer satisfaction and many more. It is important for an organization to remain ethical and
sustainable in order to execute activities ethically and systematically.
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REFERENCES
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Berkelaar, 2017. How implicit theories help differentiate approaches to online impression
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Blackman, A. and Veit, P., 2018. Amazon indigenous communities cut forest carbon
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de Assis Costa, F., 2018. A Brief Economic History of the Amazon (1720-1970). Cambridge
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southwest of the Amazon: a GIS-and remote sensing-based assessment. Journal of
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