BPP MSc Management: Business Report on Amazon Organization

This report provides a comprehensive analysis of Amazon, covering its organizational structure, corporate objectives, and business model. It includes an evaluation using PESTLE, SWOT, and Porter's Five Forces analyses, examining environmental factors, strengths, weaknesses, opportunities, and threats. The report also recommends information systems for Amazon and discusses potential implementation challenges. The chosen organization is Amazon, and the report integrates the view of IT infrastructure and Knowledge Management Information System. The report is structured into sections that cover an overview of the organization, corporate objectives, structure, business model, and evaluation of the organization. The report concludes with a recommendation of information systems and a discussion of implementation challenges. The report is a submission for a BPP University MSc Management program.

1
BPP Coursework Cover Sheet
Please use the table below as your cover sheet for the 1st page of the submission. The sheet
should be before the cover/title page of your submission.
Programme MSc Management with Streams
Module name
Knowledge Management and Information Systems
Schedule Term II
Student Reference Number (SRN) BP0230541
Report/Assignment Title Business Report
Date of Submission
(Please attach the confirmation of any
extension received)
25/08/2020
Declaration of Original Work:
I hereby declare that I have read and understood BPP’s regulations on plagiarism and that this is
my original work, researched, undertaken, completed and submitted in accordance with the
requirements of BPP Business School.
The word count, excluding contents table, bibliography and appendices, is 3400
words.
Student Reference Number: BP0230541 Date: 25/08/2020
By submitting this coursework, you agree to all rules and regulations of BPP regarding
assessments and awards for programmes. Please note, submission is your declaration
you are fit to sit.
BPP University reserves the right to use all submitted work for educational purposes and may
request that work be published for a wider audience.
BPP School of Business and Technology

2
Table of Contents
Contents Page Number
1. Introduction 3
2. Organization Review 3
3. Evaluation 7
4. Recommendation of Information System 13
5. Challenges 18
References 19

3
1. Introduction
This report is about the organization which I have chosen. This report is also
integrating the view of IT infrastructure and Knowledge Management Information System.
Section 2 includes the overview of the selected organization, corporate objectives, corporate
structure and the business model. Section 3 involves PESTLE analysis, SWOT analysis,
Porter’s five force analysis. Section 4 explains the recommendation of information system
about the chosen organization. Section 5 point out the challenges while implementation of
the chosen organization.
2. Organization Review
1. Chosen Organization:
The name of the Organization which I have Chosen is AMAZON.
2. Overview of the Organization:
Amazon is an American company. Amazon headquarters is placed in Seattle,
Washington. Amazon.com is a huge internet based organization. The businesses includes
in amazon are selling books, movies, housing things, music, electronic items, toys etc., It
also act as a broker between other retailers and the millions of customers. Amazon web
services business involving of data storage renting and computing sources it’s also called
as “cloud computing” over the internet. Amazon’s e-book services are the major disruptive
force in book publishing market (Mark, 2020).
Amazon official website shows as “Amazon’s products and services are
Amazon.com, Amazon Web Services, Prime Video, Amazon Music, Fire Tablets, Fire TV,
Echo and Alexa and Kindle E-readers and books”.
3. Corporate Objectives
Amazon Staff States about the amazon objectives as:
Amazon’s four important principles are customer obsession rather than competitor

4
focus, passion for invention, commitment to operational excellence, and long-term
thinking.
The main objective of amazon which is quoted in the official website of amazon as
“We aim to be Earth’s most customer centric company. Our mission is to continually raise
the bar of the customer experience by using the internet and technology to help consumers
find, discover and buy anything, and empower businesses and content creators to
maximize their success”.
This mission is important for United Kingdom because of the empowerment of
digital for consumers and organization improves living standards for public up and down
the country and drives the competitiveness of economy and their productivity in the global
economy.
4. Corporate Structure
Amazon Corporate structure has: Senior management team which includes Three
CEO’s and Three Senior vice presidents for different business reports aspects directly to
the Amazon CEO Jeff Bezos (John D, 2020). The corporate Structure is depicted below:

5
Corporate Structure of Amazon
Source: Business Research Methodology
Amazon Corporate Structure has three important key features. They are
Hierarchical Corporate Structure: It is developed because of the vast business
size. Because of their revenue employs which has more than sixty thousand and seven
hundred people around the world, amazon become the biggest internet retailer in the
globe (John D, 2020).
Business Flexibility: If the organization is vast then that organization would not
follow the hierarchical corporate structure. But Amazon maintain that hierarchical
structure. Amazon is highly flexible to adapt continuous changes in the external
marketplace (John D, 2020).
Management Stability: Many largest internet company’s turnover is very little
among their power players. Amazon does not because of the stability in the management

6
(John D, 2020).
4. Outline the Business Model
Amazon Model is an e-commerce one, but nowadays they are making business mol
portfolio and revenue streams by using their investments and diversification. Amazon
business model is initially based on e-commerce, but now it has changed to entertainment,
music, cloud computing, delivering meals etc., (Gary Fox, 2019) the business model of
Amazon is depicted below:
Amazon Business Model
Source: Gary Fox
Under Amazon Business Model, It has the following Streams:
Revenue Streams: Amazon Marketplace, Amazon Books, Amazon Music and
Videos, Amazon Gaming, Amazon Web Service, Amazon Fire Products, Amazon Prime,
Amazon Tickets, Amazon Patents. Amazon Advertising (Gary Fox, 2019).
Financial Streams: Online Stores, Physical Stores, Third-Party seller services,
Subscription services, AWS, etc., (Gary Fox, 2019).

7
3. Evaluation
1. Impact of Environmental Factors:
PESTLE analysis of amazon discussing the macroeconomic environment factors
which are affects its profits and growth.
How Political Factors affect Amazon
The organization has to face political and government activities which affect
amazon’s success. First impact is Political stability. Political stability can affect amazon’s
business. Political stability of some developed countries gave opportunity to amazon for
expanding their business in their region. Stable political governments can create threats
for the organization. The European Union is investigating amazon’s retailer’s data who
sells on Amazon Marketplace (Farooq, 2019).
Another factor is Government regulation for e-commerce businesses. In India,
Amazon and Flipkart was stopped by the Government they have equity stakes (Farooq,
2019).
Other factor is cybercrime. Every e-tailing business has to fight with cybercrime.
These political issues are affect Amazon business (Farooq, 2019).
How Economic Factors affect Amazon
If the economic conditions are positive then amazon will grow faster in those areas.
Customers buy goods from retailers in any economic condition and some retail business
growing stable even in the worst economic conditions (Farooq, 2019).
Customer’s disposal income is the main opportunity for Amazon which means,
customer will buy products of their choice. Example for Customer’s disposal income
companies are Amazon, Walmart and eBay (Farooq, 2019).
Another factor affect Amazon business is Economic recession. Chinese economy is
getting slower nowadays and it is considered as a threat for amazon business expansion
(Farooq, 2019).

8
Other factor which gives great opportunity to amazon is Flourishing retail industry
that is more competition for amazon. Walmart is the main competition for amazon
(Farooq, 2019).
How Social Factors affect Amazon
Social trending can affect the amazon performance both negatively and positively.
Because of the behaviors such as allow people stay at home and amazon delivery system
will do that jobs like streaming movies, foods and groceries, people are getting lazier.
Staying at home and eating junk food affect the people health (Farooq, 2019).
Positive impact is current generations are very interested in online shopping.
Because of the easy internet access and mobile devices, online shopping ratio is increased.
Amazon online shopping facility is very helpful for senior citizens who cannot able to walk
(Farooq, 2019).
According to SurveyMonkey/Recode Poll, amazon create positive impact when
comparing with other companies like Google, Apple, Facebook or Microsoft (Farooq,
2019).
How Technological Factors affect Amazon
Amazon’s main factor is Technology. Because of the technology, amazon become
the most profitable organization across the world. Amazon’s main technology is cloud
computing which uses amazon web service (Farooq, 2019).
For delivery purpose, amazon main usage is technology. Now amazon prime air the
trending delivery system (Farooq, 2019).
Cybercrime is a threat to amazon. Amazon website stores confidential information
like customer’s credit and debit card details. Several clients complained that they were
hacked and lost their monthly sales. So, Cybercrime is a real threat to amazon (Farooq,
2019).

9
How Environmental Factors affect Amazon
Amazon has some pressure from investors and other stockholders for revealing
some information relevant to environmental impact. Recently, amazon committed that
they will reveal some relevant information about environmental impact later this year
(Farooq, 2019).
Another factor that affect amazon is reducing organizational emissions. Online
shopping requires less energy than going to the stores and buy the groceries (Farooq,
2019).
Amazon also committed for their half of its shipment will free by 2030. Amazon
have 100 million members for two days delivery. Because of that If customers wish to
receive goods in one or two days, then the carbon emissions will automatically increase.
This is the real environmental impact (Farooq, 2019).
How Legal Factors affect Amazon
Amazon business should follow different laws and regulations. Few legal factors
such as anti-trust laws, discrimination rules, consumer protection rules and data
protection regulations are affecting amazon business (Farooq, 2019).
Counterfeit product rules are important and it’s also demand from the consumers.
But amazon already has anti-counterfeit policy (Farooq, 2019).
There are some Consumer Privacy Acts should be followed. Amazon should require
to inform the customers about what type of data they are collecting and how they share
and use the data (Farooq, 2019).
Another legal factor is EU GDPR that is General Data Protection Regulations. It
affects amazon but not only amazon those companies who collect the customer name,
email address and bank information. The European Union is launched this investigation.
This is considered as a big threat to amazon (Farooq, 2019).

10
1. SWOT Analysis of Amazon
Amazon’s Strengths
Maggy S.G wrote about amazon strengths on Business Strategy Hub
Brand Name
Amazon has a successful brand image and strong position in the market because
of its e-commerce as global.
Brand Value
In 2019, Interbrand released a Global Brand Ranking. In that list, After Apple
and Google, Amazon placed at third and its brand value is 125 Billion Dollar.
Customer Oriented Brand
Amazon is necessary for huge number of customers for their daily needs at low
prices. Because of that Amazon is a customer oriented brand.
Innovations
Amazon often creating innovative ideas to their products and their offerings.
For example now they introduce ambitious drone delivery service and Aura Smart
Sleep System.
Go Global and Act Local Strategy
Because of its Go Global and Act Local Strategy, Amazon has more benefits.
Amazon develop their partnership with local supply chain organization. The local
supply companies understand the local needs and they providing services based on
their county culture.
Amazon’s Weaknesses
Maggy S.G wrote about amazon weaknesses on Business Strategy Hub,
Easily Imitable Business
Nowadays, online retail business is normal. Therefore, imitating Amazon’s
business model is easy. Because of this imitation, some companies giving amazon a

11
difficult times which includes Barnes and Noble, Oyster, Netflix, eBay, etc.,
Loses in Some areas
In some areas like India, Amazon has faced losses. Because of its free shipping
to customers, that expose the risk of loses in some markets.
Product Failures
Fire Phone’s launch and Kindle fire devices are the biggest flop for amazon in
the US.
Controversy of Tax Avoidance
Amazon avoiding taxes in Japan, UK and US which leads to the negative impact
on Amazon.
Limited Street Side Business
Amazon has very limited physical stores. It makes sometimes difficult to attract
people buy things which is not sellable on online stores.
Amazon’s Opportunities
Maggy S.G wrote about amazon opportunities on Business Strategy Hub,
Amazon can gain the opportunity to expanding their business in developing
areas
By expanding their physical stores, it can improve their business into
another level.
Amazon can improve their technological measures and organizational
policies. Because of this, counterfeit sales can be reduced.
By introducing Self driving technology, it can improve their delivery
network.
Amazon promises to make positive impact on environment. By that vision,
Amazon plan to implement 10,000 electric rickshaws for delivery in India by 2025.

12
Amazon’s Threats
Maggy S.G wrote about amazon threats on Business Strategy Hub
Controversies
Some controversies damage the Amazon’s brand image. People critically reacted
for Amazon selling the book which is names as “The Pedophile’s Guide to Love and
Pleasure: a Child-Lover’s Code of Conduct”.
Government Rules
Some regulations of Governments is the big threaten to Amazon’s business in some
particular countries like Cuba, Iran, North Korea, Sudan and Syria.
Increasing Cybercrime
By increasing cybercrime, Amazon’s network security system can be affected.
Tough Competition
Aggressive competition among Amazon, Walmart and eBay in the future. For now,
in video streaming services, Apple Tv+, Netflix, and Disney+ are the competition for
Amazon. In Logistics, FexEx is the main competition for Amazon. In Self Driving
Technology, Tesla, Uber, Ford giving tough competition to Amazon (Maggy, 2020).
3. Five Forces Analysis of Amazon
The intensities of external factors which are affecting amazon business is discussed
below:
Competitive Rivalry
(Strong Force)
Firms Aggressiveness is High
Substitutes availability is high
Low switching costs
Strong
Strong
Strong
Bargaining power of buyer
or customers
(Strong Force)
Information quality is High
Low switching costs
Substitutes availability is high
Strong
Strong
Strong
Bargaining power of Suppliers population is small Strong