Global Strategy and Sustainability: An Analysis of Amazon's Operations

This report provides a comprehensive analysis of Amazon's global strategy and sustainability. It begins with an introduction outlining the objectives and scope, followed by an examination of the external environment using PESTLE and Porter's Five Forces models to assess political, economic, soci...Read More

Global strategy and
sustainability
Part 1

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
External environment analysis.................................................................................................................3
Porter’s five forces model-......................................................................................................................4
Internal environment analysis of Amazon...............................................................................................5
CSR and sustainability analysis of Amazon...........................................................................................7
Evaluation of analysis 200.......................................................................................................................8
Recommendation for global development...............................................................................................9
Recommendation for global sustainability.............................................................................................10
CONCLUSION.........................................................................................................................................11
REFERENCES..........................................................................................................................................12

INTRODUCTION
Main objective of this report is to better understand the concept of business strategies and
sustainability. Business strategies will provide clear direction to an organisation which help them
in achieving the goal and competitive advantage in market. Business strategies is a means by
which an organization will set out to achieve its desired goal. It will simply described as long-
term business planning (Ng, A.W., 2018). Sustainability is a business approach which assist in
creating long term value by taking into consideration how an organisation will operates its
different business operations in the ecological, social and economic environment. It was built on
the assumption that developing such strategies foster company longevity. Amazon is the
multinational company with wider range of product services and brand value. In this report
global strategy and sustainability recommendation is going to develop for the organizations
along with analysis of their current strategy and sustainability, and for developing this report
different tools and techniques of and this is going to be used such as PESTEL analysis and five
force analysis for external environment and then VRIO and value chain for internal analysis.
Along with this CSR model is implement for business suitability Activities- analysis.
MAIN BODY
External environment analysis
External environment refers to a set of all the exogenous forces that have the potential to
affect the performance, profitability and functionality of an organization. An organization has no
control over these factors. In context of Amazon, for analyzing the external environment two
important factors are used which are discussed below:
PESTLE Analysis
It refers to a framework which is used by an organization for analysis their external
environment. This framework will include various important external factor which affect the
business growth most. In context of selected company, various factors of external environment is
discussed below:
Political factor- This factor of external environment will focus on the government
activities & its effect on business. In context of Amazon, political factor will play an essential

role in the development of the e-commerce industry. Such as political stability of developed
countries will provide various growth opportunities to company and also government will
support the e-commerce companies (Sasagawa, Y., 2019.
Economical factor- It refers to an external factor which include economic condition of a
country and any change in it will direct influence the profitability of company. The performance
of Amazon will depend on the situation of economies. Such as good economic condition of U.S
and European countries will provide growth opportunity.
Social factor-This factor will identifies the impact of sociocultural changes or trends on
the company performance as a leading online retailers & provider of information technology
goods & services. In context of selected company the increasing consumerism in developing
countries and online buying habits of customers will help business to achieve higher growth.
Technological factor- this factor will define the change in technology which influence
the growth of business. In context of selected company, rapid technology obsolesces are can be
threats for company but their efficiency of IT resources and by quickly adopting new technology
will help them to achieve competitive advantage in market.
Legal factor- This factor will include various legislation of government such as health
and safety, consumer protection and so on. Legal factor will positively influence the business of
Amazon, such as rising product regulation, changing import & export regulation and rising
environmental protection regulations on business will various opportunities to selected company.
Environmental factor- This factor will play an essential role in growth of business
sustainability. In context of selected company, they will improve its environmental impact in
response to the rising interest in environmental programs.
Porter’s five forces model-
It refers to a tool which help an organization for analyzing the competitiveness in market.
In context of selected company various factors of this model is discussed below:
Competitive rivalry (strong force) – In context of selected company, they will
competes against strong competitors. There are numbers of competitors of selected company
such as Walmart, brick and mortar bookstores.
Bargaining power of buyers (strong force) – As because of low switching cost the
bargaining power of customers is more. This will affect the pricing strategy of company. This

will reduce the power of company and make them to charge their price according to customers
need and competitors pricing strategy.
Bargaining power of suppliers (Moderate force) – As because of small population of
suppliers they will control the availability of material which is needed for its e-commerce
operations such as hardware components for information system.
Threats of substitutes (Strong force) – Amazon company will competes with
substitutes in the online retail market. As because of higher availability of substitute and low
switching cost of their products will reduce the power of company which will influence the
growth of business.
Threats of new entrants (Weak force) – In context of selected company it was analysis
that the force of new entrants of business is low as because for entering into the market and
become the effective competitors it will require high amount of investment for set up the
business and for brand development ( Alshura, M.S.K. and Assuli, J.A.H.A., 2017).
Internal environment analysis of Amazon
Internal environment of the organization is involving the multiple factors of company
which consider internally to plan, develop and sell the services throughout the market. These
internal factors are employees, work culture, finance, resources, development and management
process etc. In order to become one of the most sustainable business organization and to develop
the global strategy for that. The most important thing is implementation of all essential tools and
techniques for the internal environment analysis which can help to measure the impact of
organization internal environment on global sustainability of business and at same time this helps
to make the strategic plan for improvement of internal environment in order to make it more
sustainable. Below application of some internal environment analysis tools for strategic planning
of global sustainability )( Bonsu, S., 2019).
VRIO- that is the most important internal environment analysis tool which helps to
analyze the capabilities and potential of the organization internal resources by comparing it with
certain traits. This is a framework having the four different factors to consider the resources
efficiency. And in this way the model is helping for the global strategic planning because it help
to analyze the sustainable values of resources along with their rare, inimitability and organized.
By the implementation of this tool organization can understand the internal factors efficiency and

errors in prospect to the global sustainability and management effectively. That is also important
in order to analyze competitive advantage of resources.
Value- The factor used to analyze that how valuable the organization resources in
market. Amazon is successfully meeting the standard except the employment values because that
is known for its employees exploitation. But in all other aspects such as business marketing
network, product range, customers along with the best online shopping techniques amazon is
valuable.
Rare- The factor use to represent the rare resources of the company. Amazon is having
the higher competitive advantage in the market due to its rare marketing strategy, management
techniques, distribution network and brand value.
Inimitability- The factor represent unit and non imitability of resources. There are the
various resources in Amazon company which cannot be copied by other uh searches that
distribution network is very higher and it cannot be reach easily. Organization is having the best
research and development network which cannot be copied by other and that is why companies
having higher competitive advantages.
Organized- What is used to analyze the well-managed and organized resources of the
organization. All of the organization resources is well organized due to which they are at the
higher position in market suggest the product range management on the basis of customer is
managed by the organized human resources system and they are having the well organized
research and development practices (Aliekperov, A., 2021).
Value chain analysis- this is the type of tool which provide the framework for
Organization operation, activity, task and function management according to the importance and
value. This helps to arrange all these factors at right place for management and coordination.
This helps to analyze that which function and who that is valuable for the organizations
(Bhargava, A., Bafna, A. and Shabarisha, N., 2018). That is also used for the betterment of each
functions along with the extraction of new opportunities from that.
Primary Activities-
 Inbound logistic- That is the business function or activity which is involving the
collection of resources and its proper distribution to the right place of its requirement
within the organization operation system and task. The main operation task of the

Amazon such as storage and distribution is effectively done by the support of quality
control process and vertically integrated suppliers.
 Operations- For the Amazon the main operation activities are packaging of products,
software management and development of the interactive content for customers. So that
is very valuable function.
 Outbound logistic- That is the process in which all products are arranged according to
the customer order which finally store and distributed to its right place. In Amazon
product handling, fulfillment, dispatch and invoicing is important.
 Marketing sale- This is the process of customer awareness and lead generation. Amazon
is having very effective and valuable marketing strategy with the help of there different
channels such as Amazon prime and it’s attractive advertisement.
 Services- In context to Amazon this is the post sale services under which customers are
supported with the effective plan. Such as product warranty, education related to that
training and support.
Supportive Activities- That is involving some important internal functions such as finance,
procurement and technology. Amazon is having best information technology which help the
organization to manage effective infrastructure. There is the HRM finance and legal management
team for recruitment of talented employees and risk mitigation ( Flanagan, D.J., 2018).
CSR and sustainability analysis of Amazon
According sustainability standards of United nation corporate social responsibility is the
shelf business management model which helps the organization to make sustainable approaches.
This is also considered as the practices and policies taken by the organization in order to perform
sustainable at the environment. Sustainability means working and performing at the environment
by helping and benefiting each other, without any harm. Below the explanation of Amazon CSR
and sustainability practices level.
Carroll's pyramid- That is the theoretical framework which help to understand the importance
of sustainability and corporate social responsibility that why and how the organisation should
take corporate social responsibilities related to social goal and ethical activities (Arnett, J.,
Goldfinch, B. and Chinta, R., 2018).
 Economical responsibility- On the basis of this CSR principal each and every
organization should perform effectively by profiting the company and economy of the

nation. According to 2020 Amazon revenue is 75.5 billion dollar and added £45bn in
value- GDP. So that is in the good column of economic responsibility.
 CSR dilemmas- Earlier Amazon is considered as de arch tax avoider. Because the sailors
of the Amazon has avoided lots of taxes. But according to the current CNBC statement
Amazon pay on the Texas, their expenses over the last three year3.4 billion dollar in tax.
 Legal responsibility- According to this principal each and every organization have to
follow the government rules and regulations in relation to all their business activities.
Amazon is trying their best to meet the government rules and regulations but due to its
biggest size there is huge numbers of sellers in the amazon due to which that is become
difficult to monitor their activities for preventing the illegal activities. Such as some time
there is the huge case of tax avoiders.
 Ethical responsibility- According to the principal business entities have to meet some
other important values what is not mention in the legislative base of government. Such as
working in effective way with support the society, culture and moral. According to some
data that Amazon is not meeting the ethical responsibility because they are not following
the United nation definition of human right. There is a case over Amazon for workers
exploitation and not treating them as a human.
 Philanthropic responsibility- That is the final standard of this model what is involving
the responsibility for each and every organization in prospect to the society and
community welfare by donation and other essential support. Their is the charity page
which is known as the smile Amazon that is for the donation. (Aggarwal, P. and Singh,
A.K., 2019) .
Evaluation of analysis 200
SWOT analysis
In order to identify the global business opportunity and threat of the organization that is
important to make the evaluation of internal and external analysis for which SWOT analysis is
de best tool as it helps to compare the internal and external environmental factors for analyzing
strength, weakness, opportunity and throat. According to which organization can make action
plan.
Strength Weakness
For the global business development and The developing competition in the market

sustainability, organization brand value,
marketing and distribution network along
with the well organized management
system is Amazon strength.
of e-commerce Amazon weakness.
Because there is the highest votes of,
buyers, competitions, suppliers and
substitute.
Opportunity Threat
Organization adaptation to with the new
innovation and the developing trend of
innovative, healthy products and services
along with the trend of online shopping is
opportunity for Amazon.
Impact of covid-19 this can be anything
which is the threat for organization and
along with this developing information
technology is increasing the chances of
hacking (Beck, C., Frost, G. and Jones, S.,
2018).
Recommendation for global development
Make more sustainable approach- for the effective global development organization need
the positive, moral and sustainable values in the market which help them to get accepted by
different countries for the development of Amazon business over there (Lu, J., Ren, L., Zhang,
C., And et. Al., 2020).
Expend business - For the global business development at the highest level Amazon can
make other more effective strategies such as they can expand their business in New Market with
the new product. For example cooked food delivery services, and along with this organization
can increase or expend their business effective strategy of partnership at each and every location
of the world including village. This is strategies can be successful because the trend for the
online shopping is very higher.
Make more innovative business practices - Due to the higher competitive force in the
market is already working very smart by focusing on the innovation, and they can make it more
effective by using the innovation in each and every steps of business because this can make the
organization unique from other and help it to meet competitive edges. Amazon half to make a
further more innovative approach for their tax management an employee satisfaction which will
help the organization to grow at global level with the positive support of employees.
Grab partnership opportunities- For developing globally and reducing the competitive
force organization can make more partnership with the online business organization. What is the

most effective way of reducing the competitive by making them partners. Partnership can also
help to develop business in different countries with all essential resources support ( Kim, M.,
White, C. and Kim, C., 2019).
Recommendation for global sustainability
Success in the global sustainability practices helpful for everyone for society for industry.
Because this help the organization to meet society needs and requirements along with this at
have the company to improve their brand value and make it more effective in the market. Which
help the organization to grow. Below recommendation for the organization sustainability. The
United nation tenability standards have to be fulfilled by the organization to retain the market
(Ng, A.W., 2018).
Follow the sustainability standards- United nation half developed important
sustainability standard which have to be followed by the organization in order to become one of
the best valuable and sustainable business association. Amazon to follow all those sustainability
standards effectively with the best strategy and plan in order to become more sustainable.
Pay all taxes – Amazon I have to work on there text management because the
sustainability values get affected by their tax payment status, as it goes to the welfare of society.
Soap for improving their global sustainability they have to to make some effective tax payment
practices.
Make donation – Donation is the part of sustainability approaches as it helps the
government and NGOs to make people welfare practices by the help of all those money which is
collected from the donation of business organization. All the Amazon is having one charity
website but that is not contributing as much as it requires. Amazon half to make improvement on
the donations strategies ( Moldavska, A. and Welo, T., 2019).
Develop new environment protection approaches - At present in the market there is
very address impact of business activities on environment suggest higher emission cause global
warming. And other pollutant of the business operations and activities are destroying the
environment resources. Amazon can become one of the best sustainable organization by
developing the Innovative CO2 control process and activities along with the development of
some pollutant prevention technologies.
Improve employment strategy- Employees are the important resources of organization
strict strategy of company can help to get effective outcomes but this can lead to the loss of

employees and also affects the sustainable value of organization. Amazon have to improve their
employment strategy and effectively satisfy Their employees forgetting the valuable sustainable
image in the in that context ( Dyllick, T. and Rost, Z., 2017).
CONCLUSION
From the above study it has been concluded that global strategy and sustainability is can
be effectively managed by the proper implementation and application of environment factor
management tools such as PESTEL analysis, five force analysis, VRIO, value chain and SWOT.
These are the tools which helps analyze the present capabilities of organization environmental
factors and resources in context to the global development and sustainability. For the analysis of
organization sustainability potential Carroll's pyramid model use, and by following this model
organization can make more sustainable business approaches which help them to grow globally
with positive brand value.

REFERENCES
Books and Journals
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expectations of CSR. Journal of Communication Management.
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