Analysis of Leadership and Business Environment: Amazon Case Study

This case study analyzes Amazon's leadership and business environment, focusing on SWOT and PESTEL analyses to understand its internal strengths and weaknesses, as well as external opportunities and threats. The study investigates how changing PESTEL factors influence Amazon's opportunities and threats, providing insights into the company's strategic positioning. It explores various leadership styles, ultimately recommending the democratic style as most suitable for Amazon, emphasizing customer service and employee involvement in decision-making. The case study highlights the importance of adaptability and responsiveness to external environmental changes and provides recommendations for maintaining and improving Amazon's leadership approach to foster continued growth and success in the market. The study also includes a literature review and reflections on the leadership styles and business environment of Amazon.

LEADERSHIP AND
BUSINESS ENVIRONMENT
– CASE STUDY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Question 1........................................................................................................................................3
SWOT AND PESTEL.................................................................................................................3
Question 2........................................................................................................................................4
Opportunity and threat Influenced by changing PESTEL Factor................................................4
Question 3........................................................................................................................................6
leadership style............................................................................................................................6
Question 4........................................................................................................................................7
Recommendation.........................................................................................................................7
Literature Review........................................................................................................................8
Reflection.....................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Leadership and business environment refer to the process in which the organization works and
all then employ works in a guidance of leader who control and take decision-making power and
also make structure of working which all the employees follow a work. Amazon is one of the
leading business brands in the market, the report will explain the swot and PESTEL Of the
Amazon and also the factors of changes in the external environment influenced the opportunities
and threat of the business. Further the report will explain the style of leadership and the best
leadership style which is suitable for Amazon to grow further.
Question 1
SWOT AND PESTEL
SWOT analysis: - Swot analysis refer to the internal analysis of the organization and internal
environment factors of the Amazon. It includes Strength, weakness, opportunity and threats of
the organization (Islam, 2017).
Strength: - Strength of the Amazon is that it has the customer centric business initiatives, and
have one of the efficient delivery networks. They provide low cost models with strong brand
offering.
Weakness: - Amazon work in near zero margin and also are tax avoiding and mounting debt.
Opportunities: - Opportunities for the amazon are increasing the sale and own brand product
sale. They need to capture new emerged market.
Threat: - threats are the data security and the competition from the local player, and the lawsuits
from rivals.
Pestel analysis: - Pestel analysis are the external environment factor of the organization which
affect the business.
Political: - Political red tape and a tightening data regulation. All the political factor which can
affect the working of the company in business market.
Economical: - Strong GDP growth in emerging market of the business. Economy need to be
strong as it provides in good outcomes (Sarsby, 2016).
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Social: - Shift in retail and e-commerce market and changing food habits. Changing of trends
and fashion is also a factor in influencing of business of Amazon.
Technological: - Big data analytical transforming and the technologies apprising. Utilization of
new technologies and helping all the activities with total technology work.
Environmental: - a limited environment disclosure and initiatives & sustainability.
Legal: - all the legal factors of law and legislation. In this factor of the business environment
facto. The last factor shows that legal and law need to be care by the company in making sure
that the business works in best way.
Question 2.
Opportunity and threat Influenced by changing PESTEL Factor
Changes in the external environmental factors add one of the part of the business and external
environmental factors are closely linked to the direct and indirect affect on the business and the
business goal. it is very important to identify the PESTEL Factor so that The Amazon can make
the changes according to the working and the process of the organization it can get affected by
the external environment again make whose impact on the company and its business. changes are
the part of the business and it is important to make several changes while working in the
organization, external environmental changes are not in the hand of company as the external
environment factor can't be controlled.
Opportunity: Changes in external environmental factors provide a lot of opportunity as when the
economy price of the country and the political factors which includes the policies and working
help the business to develop in the best way so that Amazon can expand and work with gnu
strategies which can further help the organization in better opportunities and growth in the
market. Changes in the factor help Amazon in finding new markets and also new technologies
which can help in finding the better ways and opportunities to develop the business in new areas
and increasing the business profit to the maximum level (Shatskaya, Sycheva and Loktionova,
2017).
threat: changes in the PESTEL Factor can be a threat for the organization when the political and
economic changes directly affect the business and Amazon needs to understand the criticality of
environmental factors as they are directly linked to the business end can be read to the business
In Longer time. There are a lot of threads in the market as it is very important for the
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organizations to control the environmental factors and they can't harm the environmental and
need to make sustainability and different plans and strategies to improve the environmental and
also follow all the legal laws and legislation to work in better ways decrease the threat.
Amazon strength negating to the threat and weakness which affect the opportunities:
The strength of the organization Is the locus structure and one of the largest merchandise
selections with a huge number of 3rd party seller add providing great strength to the Amazon.
Amazon synergies between marketplace and other ways like web series services, prime and
subscription services which are helping and giving a huge strength to the Amazon and improving
their work and also in improvement to increase the audience and customer number.
The strength of the company providing a lot of opportunities for the organization as Amazon is
one of the biggest name in the market and they are working in all the Department and now one of
the biggest company in market helping in providing more opportunities for itself and are
eliminating the threats and weakness on regular development and training which is helping the
organization to fight the threats and weakness they used to face in the past. Amazon management
works in finding the issues which are causing business in the market and can be a threat do the
Amazon in the future needs to be eliminated and the management of Amazon works with
strategies and planning to improve the business in find more opportunities in the also change
their weakness in the opportunities. one of the best opportunities Amazon created with its
strength is the self-driving technology which day acquired in California based self-driving start-
up (LIU and LI, 2017).
Amazon utilize their strength and the brand value with huge market base creating more
opportunities in extending the business in many more countries and developing a regular change
in the planning with proper strategies and utilization of the planning to improve the business and
eliminate their rivals who are giving a close competition with product strategies and services
strategies.
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Question 3
leadership style
leadership style refers should the way in which the leader of the organization handles all the
teams and employees and all the management process with different styles of their own working
in the organization to improve the organization's performance. leadership styles are used by the
leaders who are handling a group of team our employees which work under the leader follows
the leader's style of working is known as leadership style (Xie and et.al., 2018).
Different leadership style:
There are a lot of leadership style ways in the business an organization. here are some of them as
follow:-
Traditional style: - Traditional style of leadership refer to the leadership approaches which were
used in the traditional ways to provide direction, implementing plan, and motivating people.
Autocratic style: - Autocratic style of leadership is the powerful style of leadership in which
leader commands and dictate procedure and policies to direct the work done by the groups and
employees even without looking for the input from them. this style of leadership reflects the
command and power in which the leader command and all the employee and group of people
follow the leader and works accordingly. It is one of the best leadership styles when the decision
requires to be fast and quick.
Participative (democratic) style: - participating style of leadership referred to the process in
which the leader includes all their group members and take their opinions before decision-
making. They needed to have all the rights to take the decisions but in the Democratic style of
leadership the leader include the group member and the employers who are working on that
particular task and who understand better with more detailed knowledge help the organization
and the leader in improving Decision-making and the organization with better results.
Delegative leadership: Delegative style of leadership is the process of soft leadership as they
offer little or no guidance to the group and people who works under them and leave all the
decision-making up to the group. This style of leadership works with high skilled workers and
creative team who often have the skills in quality and our kind of freedom. if the group of people
doesn't have the needed skills and motivation can be and negative impact on the business as they
will lead to poor performance and bad decision-making with lack of skills.
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Current leadership style at Amazon:
The current leadership style of Amazon is the visionary leadership focusing on customer service.
They focus on providing the best on the customer service and the leadership style they use are
the Democratic style of leadership. the working of the organization is done on the regions two
focusing on providing the customer service and improving the customer service quality in the
market so that the business can improve and develop the performance with better results and
high profit margin. Amazon utilize the process in development to Working off Amazon in
providing and including all the management and the employees in their decisions as whatever is
going on in the organization need to be addressed to the top management so that they can take
better decision which can help the organization and also the people working in the organization
gets better profit out of it. It is important to take a closer look in the management an as well as to
take advises from the middle and lower Department of the organization, feedbacks from them
can help in improvement of decision-making which can help the organization in taking the
decisions which provide positive effect on the workplace and improve the performance and
motivations of the employees towards the company and this will also help in making a good
relationship and born with the leader an employer and the management with the organization
(Yunarsih and et.al., 2020).
Question 4
Recommendation
The best suitable leadership style for the organization is the Democratic leadership style which
they are using in the current leadership and it is one of the best ways to improve and grow the
business further in the market. Democratic leadership style is one of the best way to focus on
customer service and the decisions which are the most important part of leadership can be
improved with discussions to the lower departments and the higher Department in detail and
depth knowledge about the process and operations which are working in Amazon helped in
better knowledge to take decisions accordingly (Dedahanov and et.al., 2016). Decisions
sometimes affect the employers and group members performance as if the leader take powerful
decisions which can affect the mentality and performance of the employees or which can
decrease the employee’s motivation skills and performance can impact negatively on the
organization’s overall objective. It is very important for the organization an Amazon tried to
improve the relations between all the department’s and management so that the decisions can be
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took in connection to the betterment of the organization and the employees as well. This provide
a good confidence among the employees and they felt renowned and they also feel the
importance in the organization for which they are working it also helped in the development of
the confidence and improve the performance of the employees and group members towards the
leaders decision which further help and improve the business objective and in achievement of the
goal The Amazon looking for.
Democratic style is the best style for the working of Amazon as they are in the service sector and
they need to focus on more customer services so that they can improve the performance of the
organization and Democratic style is one of the best style to maintain the decorum and culture at
the workplace and it also helps the employees get motivated towards the workplace and improve
performance (Nguyen and et.al., 2017).
Literature Review
Transformation leadership style is one of the best and most popular leadership
stylebecause it conjure a vision of a charismatic leaders and makes powerful CEO of the
company to take company on new heights. Transformation leadership style is a theory of
leadership wherein team leader works with the teams to determine needed change, developing
vision to guide the change through inspiration and leading the change with committed team
members of the group. It is considered one of the most essential part of the full range of
leadership model. Transformation leadership serves as to improve the motivation, morals and job
performance of individuals through wide range of mechanisms in which includes being role
model for the follower and influences individuals to identify their strengths and applies them
while dealing with different project or tasks. With the support of transformation leadership, a
transform leader can inspire group of employees to strive beyond needed expectations to work
towards the shared vision. This leadership style oppose reality by portraying on intellectual
capital. It influences organizational performance and innovation in the business market.
According to Hoch and et.al., (2018)an effective leadership style is become the reason of
organization success. transformation leadership is properly based on four elements of
transformation leadership such as idealized influence, intellectual stimulation, inspiration
motivation and individualize consideration. These four aspects of transformation leadership
make individuals a ideal transformer leader which supports company to take in new height. A
effective transformation leadership has goal to motivate and enable employees. This leadership
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style supports leaders to motivate it’s staff to commit themselves towards organization’s
projected objectives and realize performance outcomes themselves, which exceed beyond of
their expectations. Sahu, Pathardikarand Kumar, (2018) said in books that a ideal transformer
leaders always focuses on transforming others by providing support time to time. While
employees of the transformer leader respondby feeling, admiration, loyalty and respect for the
leader and they are more willing to work harder as compared originally expected.A ideal
transformation leader always inspires employees to achieve remarkable results.
It has been evident that transformation leadership is one the best leadership style. This
leadership style must follow by CEO of Amazon Inc. that will totally match with
theirmanagement style because Jeff Bezos have implemented different management style to
manage overall business activities in the company in effective manner. So, it will be beneficial
for the CEO to adapt transformation leadership style without leading advance change in their
performance. With this leadership style, Jeff Bezos can support Amazon Inc. to deal with all
complex projects through which company can achieve a good level in the business market. It
also support managers of the Amazon to create a new spirit in their staff members to put more
efforts beyond of company’s expectation so that mutual benefits can be achieved by both one.
With the support of transformation leadership style, Jeff Bezos can develop a innovative working
environment in the workplace which ultimately influence individuals to create some creativity
through which company can improve level of customer’s experience and brand image as well in
the business market.
Reflection
I got a good and healthy experience during working over this project. I got to know more
about the significance of the leadership in context to the work place and working environment.
This project could support me in identifying what is the key aspect about the leadership in the
organisation. They key learning I took from this project is in respect to the leadership and its
roles in context to the organisation. The beigest learning I took from this project is in respect to
identifying how effective the leader in the organisation play role in achieving the overall
functional objectives and the overall objectives behind the business operations of the company.
This project has been proved as the key learning opportunity associated with me as an individual.
I get to know about the different aspect associated with the leadership and organisation
behaviour. How important a leader is for the overall success of the organisation. Irrespective to
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how much aggressive the market competition and volatile the business environment is leader
play the significant role in overall achievement of all goals and objectives behind the business
operations of the organisation (Silva, 2016). I also got to know different ways in this project
through which leader get to motivate all employees part of the organisation in order to contribute
in fulfilling the overall growth and business objectives of the company. Leader play a key role in
solving different issues associated with the organisation both with the internal stakeholders of
company and they contribute in dealing with the issues against the external stakeholder
associated with the company. The overall contribution of the leader in dealing with different
hurdles company face is massive which all the leaders to influence the every single aspect about
the organisation. II got to know all different approaches that can be channelizes as a leader to
perform the best possible roles and policies in the organization. Different approaches such as
motivation theories and its significance. Ho motivation theories allow the leaders to guide the
employees of company to perform the best possible operations and functions of the organisation.
This is key learning I tool from this project. I could identify all possible aspect about the leaders
and how they can contribute in the overall success of the organisation. Effective leader also
improve the overall work culture of the organisation. I got to know that they implement different
polices which significant influence the overall work culture of the organisation. I can state that
my learning form this project has been great. I got to know all about the leadership and its role in
the organisation. I am very keen that the overall learning of the project would support me in the
overall growth and development of my career. In both professional and academic life this project
would prove as a guiding role.
CONCLUSION
The report conclude that it is very important to have the good leader in the organization so that
the leader can take better decisions for the workplace and control the working of the
organizations by the people working under the leader. The report will further conclude the
responsibilities and obligations and I think all social responsibility which amazons utilize.
leadership is 1 of the most important way to improve the business and the report concluded the
external and internal environmental which are affecting the business of Amazon.
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REFERENCES
Books and Journals
Dedahanov and et.al., 2016. Entrepreneur’s paternalistic leadership style and
creativity. Management Decision.
Hoch, J.E and et.al., 2018. Do ethical, authentic, and servant leadership explain variance above
and beyond transformational leadership? A meta-analysis. Journal of
Management, 44(2), pp.501-529.
Islam, M.A., 2017. SWOT Mix and PESTEL Analysis: Effective Tools of Risk Management of
Leasing Companies. The Millennium University Journal, 2(1), pp.1-18.
LIU, X.T. and LI, J.H., 2017. SWOT and PESTEL Analysis on the Coordinated Development of
New Urbanization and Agricultural Modernization in Heilongjiang
Reclamation Area. DEStech Transactions on Economics, Business and
Management, (eced).
Nguyen and et.al., 2017. Effect of transformational-leadership style and management control
system on managerial performance. Journal of Business Research, 70,
pp.202-213.
Sahu, S., Pathardikar, A. and Kumar, A., 2018. Transformational leadership and
turnover. Leadership & Organization Development Journal.
Sarsby, A., 2016. SWOT analysis. Lulu. com.
Shatskaya, E.Y., Sycheva, N.S. and Loktionova, O.S., 2017. SWOT-ANALYSIS AS A BASIC
TOOL IN MARKET RESEARCH. In EUROPEAN RESEARCH:
INNOVATION IN SCIENCE, EDUCATION AND TECHNOLOGY (pp. 39-
41).
Silva, A., 2016. What is leadership?. Journal of Business Studies Quarterly. 8(1). p.1.
Xie and et.al., 2018. Leadership style and innovation atmosphere in enterprises: An empirical
study. Technological Forecasting and Social Change, 135, pp.257-265.
Yunarsih and et.al., 2020. Develop Leadership Style Model for Nurse in Indonesian
Hospital. Systematic Reviews in Pharmacy, 11(8), pp.352-361.
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