Comprehensive Business Analysis of Amazon: Strategies and Leadership

This report provides a comprehensive analysis of Amazon's business operations. It begins with an introduction to the company, followed by a detailed examination of its strengths, weaknesses, opportunities, and threats (SWOT analysis), as well as an analysis of its political, economic, social, technological, environmental, and legal factors (PESTEL analysis). The report further analyzes different leadership styles, focusing on the styles employed by Amazon, and recommends a suitable leadership approach for the company's future growth. Additionally, it explores Amazon's social responsibilities and concludes with a reflection report summarizing the key findings and insights gained from the research and analysis.

Context of business

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Detailed examination of two analysis that is SWOT and PESTEL for the above mentioned
firm..............................................................................................................................................3
Identification and evaluation of the above analysis and its possible impact on the working of
the firm in both positive as well as negative aspect.....................................................................5
Analysis and evaluation of different types of leadership styles and elaboration of the styles of
management and leadership that the company follows...............................................................6
Recommending the firm a suitable style of leadership that will help it to grow and prosper in
the long run..................................................................................................................................7
Detailed identification and analysis of the responsibilities of the firm and its response to the
responsibilities towards society...................................................................................................7
Preparation of a reflection report from the above research, analysis, and evaluation.................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Amazon is a firm that is based in the United States of America since 1995 and its founder as well
as CEO of the company is Jeff Bezos and it is performing exceptionally well in the market and
thus has captured a larger share in the each and every market (Belás and Sopková, 2016). In this
report there is an analysis done that is SWOT and PESTEL for Amazon so that all the factors can
be assessed in detail that affects the working of the organisation. Apart from this the report also
covers elaboration of various types of management and leadership styles in general as well as
with the context of the firm. Further social responsibility of the company is also analysed in a
systematic manner and a reflection report is also prepared according to that in this report.
MAIN BODY
Detailed examination of two analysis that is SWOT and PESTEL for the above mentioned firm
SWOT Analysis- It is a analysis that is mainly based on internal aspects so as to evaluate
strengths, weakness, opportunity, and threat that a business possesses. Below is the analysis done
for Amazon-
Strengths Weaknesses
 Amazon is a company that relies on
giving quality product and services to
its customers and it is one of the
strongest points of the firm so that it
can grow and prosper in the industry
that is highly competitive in nature.
 Also it has efficient as well as effective
delivery channels and low cost network
that allows it to carter the needs,
requirements, and demands of each and
every sector in a precise manner
(Cherchata, 2019)(Dacko-Pikiewicz,
2019).
 Amazon faces many challenges from
the Chinese firms that are operating in
the similar industry and it is not able to
cope up with that in an efficient way
and thus it acts as its weakness.
 Apart from this the company’s margin
is too little that makes it even more
difficult to survive in the market as
Amazon has a long history of products
that are ineffective in the market and
thus regarded as flop products.
Opportunities Threats
 There are various opportunities that are  As Amazon operates worldwide it faces

prevailing in the market and the most
important one is using its own payment
gateway so that it can earn huge
amounts in the market and can stand
ahead of all of its competitors.
 Also it can use different marketing
tools to its advantage as there is an
open opportunity in other areas too and
the firm can exploit it in an effective
manner if it uses tools in a correct and
precise manner.
a number of threats from the local
players that are operating in that region
and thus it acts as a barrier to the firm
in increasing its sales and profitability
in the long run.
 As majority of operations have become
online so as the threat of a breach in
security looms for the company
because if important information is
hacked it can lead to differences in and
out the company which can prove very
dangerous from the firm’s point of
view (Geymonat, 2020).
PESTEL Analysis- It is a type of analysis that identifies and subsequently evaluates the
external factors that directly or indirectly affects and impacts the working of the firm. Amazon’s
PESTEL analysis have been done below briefly-
 Political- These are aspects that are related with political stability, interference, etc. and
as there are tights data regulation in the country in which Amazon operates so it directly
affects the business operations in a negative way.
 Economic- It is related with rates of unemployment, inflation, foreign exchange, etc. and
possesses a lot of importance in the long run for each and every company that is working
in the market irrespective of the industry in which it is operating. As the gross domestic
product of the country is very strong that acts as an advantage to Amazon to invest in the
market in an effective as well as efficient manner (Kaindl, Hoch and Popp, 2017).
 Social- These are related with the change in taste, preference, and trends of the society.
As there is a shift towards organic and healthy food as well as prioritising online
shopping Amazon can use it to expand its business in other sectors too which can prove
beneficial for the firm in the long run.
 Technological- It is related with the technological changes that takes place in the current
market scenario. As the industry is shifting towards advanced technologies and Amazon

is working mostly on online basis thus it has to update as well as upgrade its technology
so that it can add to the value of the business in the industry.
 Environmental- These are aspects that are related with the environment and its related
factors. Amazon has done many things to reduce its carbon footprints and also uses
sustainable as well as renewable sources of energy that helps the firm to reduce its costs
and to stand as a profitable firm in the market.
 Legal- It is related with the laws, rules and regulations, policies, and procedures, code of
conduct that a firm has to follow while operating in the industry. As there are strict laws
in the USA Amazon operates in an efficient manner and complies with all the legal
aspects so that it does not harm the operations of the business and thus it can perform
smoothly in the industry (Luu, 2018).
Identification and evaluation of the above analysis and its possible impact on the working of the
firm in both positive as well as negative aspect
As it can be seen from the above discussion that Amazon is doing pretty well in the market
but at the same time it has some limitations too. If there is a change in PESTEL factors it will
directly affects the working of the firm because if the government is not stable and inflation hits
the market it can give rise to many threats for the firm in the long run which becomes a burden
for the company. Whereas if the stability, and employment rate rises it will result in increase
income which will subsequently result in increased expenditure thus it will generate many
opportunities for the firm that can be exploited in order to earn profits.
As one of the most strong point of Amazon is that it has captured a larger share in the
market by providing quality products and services to its customers and thus it helps the firm to
expand it to new markets too as it has already made an impact on the minds of the customers and
it can earn profits in that area too because it has loyal customer base. It uses it as a very
important as well as crucial too in eliminating and negating the threats that other competitor
possesses for Amazon in the market environment that is highly dynamic in nature. Apart from
that there are many weaknesses that Amazon have and the most important one is that there is a
very little margin left with the company so it is not capable of exploiting the opportunities that
are available in the market if it needs or requires a huge investment and thus it binds the firm in a
limited space that acts as a barrier and hinders the growth and development aspects of the firm
that it can achieve in the long run (Melnyk, Melnychenko and Reznikova, 2019).

Analysis and evaluation of different types of leadership styles and elaboration of the styles of
management and leadership that the company follows
There are different leadership styles that are used by different personnel’s and
organisations in order to achieve its goals and objectives that have been set at the starting of the
company. Mainly there are three types of leadership styles and all of them are explained below in
detail-
Autocratic Style Democratic Style Laissez-Faire Style
 It is a style of
leadership in which
one person takes all the
decisions on the behalf
of everyone without
taking suggestions
from other workers
that are working for
the organisation.
 In it decision making is
pretty quick as only a
person have to take
decisions thus involves
very less time and
analysis and can prove
beneficial as well as
useful for the firm in
which time is one of
the constraints in its
operations (Pranjić,
2018).
 It is a type of
leadership in which
each and every
individual is involved
in the activities that are
performed by the
organisation and
suggestions of
everyone is taken into
consideration in this
type.
 It is very beneficial for
the firm as it helps in
building a sense of
belongingness towards
the company and due
to this employees work
with more enthusiasms
and zeal so as to
achieve the goals and
objectives within a
limited period of time.
 In this type of
leadership various
teams are made in
order to take decisions
and each and every
team has different
roles to play in the
organisation. In it team
members can take
suggestions of the
individuals that are
present in the team
itself.
 This type of leadership
style is very crucial as
it helps in building a
strong team work
environment within the
company that helps it
to grow and prosper by
earning suitable
amount of profits in
the market in which it
is operating (Torabi,

Giahi and
Sahebjamnia, 2016).
Amazon uses pragmatist style of leadership in which standards that have to be fulfilled are
kept a little higher than its competitors and it is expected that it will be achieved by all the
persons that are working for the firm and that too well within a limited time period by using all
the resources of the company in an effective as well as efficient manner. This type of leadership
style has proved very crucial and important for Amazon as it has drastically increased the sales
and subsequently profits in the market conditions that are highly competitive in nature.
The management style that Amazon uses is participative style of management as all the
individuals that are working in the company works in a participative manner. All the workers of
the firm work in a team manner so as to achieve and accomplish all the goals of the company and
that too well within a limited period of time so that it can add to the value of the firm in the long
run.
Recommending the firm a suitable style of leadership that will help it to grow and prosper in the
long run
Leadership style possesses a lot of importance in the current scenario as it can help the firm
to gain advantage over others and can also help the company to increase its sales and profits but
at the same time it carriers the potential to damage and destruct the reputation, image, and value
of the organisation if it is not used in a correct and precise manner. The most suitable type of
leadership style for Amazon according to its management style is Laissez-Faire Style as in it
teams are specifically made according to the tasks. As Amazon is a firm that operates on a large
scale and thus it is the best suited style of leadership that the company can implement as it will
help it to delegate powers according to the roles and responsibilities of the team that can further
lead to achievement of the tasks within the deadline and thus it will prove beneficial in
improving the performance as well as environment of the business. As Amazon is performing
exceptionally well in the market and after implementing this type of leadership style it can
further improve its value in the industry as a whole (Uusitalo and Laine, 2020).
Detailed identification and analysis of the responsibilities of the firm and its response to the
responsibilities towards society
Social responsibility is one of the most important as well as crucial aspect for each and every
firm to fulfil as it helps in gaining the trust of the customers as well as it proves very useful in

gaining various subsidies and concessions that government gives to a firm if it fulfils all its
responsibilities towards the society in an effective and efficient manner. Amazon is one of the
biggest company that is operating in the market and thus its responsibility also becomes much
more as compared to other organisations. There are various factors that are included in it like
giving quality products and services to the citizens, giving employment opportunities to the
society, etc. and all of them help the company to achieve growth as well as profitability in the
market and that too within a limited period of time frame. As Amazon is operating mainly in
providing products and services to its prospective customers so there are many responsibilities
that comes with it like giving full value to its buyers according to the amount that they have
spend while purchasing the firm’s product or services, giving quality goods at a cheap rate so as
to increase the standard of living of the individuals residing in the society (Wiedl, 2020).
The above mentioned firm that is Amazon’s response in this regard is commendably
good as it giving millions of employment opportunities to persons that are able and willing to do
work for the company. Apart from this the organisation also reduced the carbon footprints as
well as uses sustainable sources of energy so that it can lead to increased life expectancy among
people that can further result in a development of balanced society. Also it keep a minimum
margin of profit with itself and thus makes the products and services that it provides heaper to
the final customers that is the society which helps in increased savings that will subsequently
result in improved standard of living of the people living in the society.
Preparation of a reflection report from the above research, analysis, and evaluation
As in this report there is a summarised explanation about a company that is Amazon and its
related aspects that impacts its working in the long run. While researching and evaluating this
topic there are various things that I learned as a person that can prove very handy in increasing
my potential. As there are many leadership as well as management styles that are explained in
this report and after detailed analysis of these aspects I came to know the importance of
implementing these styles in the business so as to add to the value of the organisation so that it
can perform well in the market that is highly competitive as well as dynamic in nature. Apart
from this I gained various types of knowledge that will act as an advantage in further research
and analysis that I will do in my future as this report helped me in building an overview about
various aspects that I lacked previously (Zwienenberg, 2018).

Amazon is one of the biggest firm that is operation in the current industry and after a
detailed analysis of this firm I gained ample knowledge as well as experience that will definitely
help me in my future projects and as a person too because both management and leadership is
required in normal life too just the different is the implementing size. Also a lot of experience
and knowledge I gained from Jeff Bezos style of doing business and it act as an inspiration for
me to do and achieve something really big in the industry as well as in personal life too.
CONCLUSION
From the above it can be concluded that the firm Amazon is one of largest multinational
company that is based on the United States of America which is a trillion dollar organisation. Its
CEO that is Jeff Bezos started this company in the year 1995 with a small capital investment and
currently it is one of the most valuable firm in the market and is working in almost each and
every part of the world. Apart from that it can be concluded that there are many leadership as
well as management skills that are used by different organisations in order to be successful in the
competitive market and to leave a mark on the industry and the company that is Amazon uses
Pragmatist style that helped it a lot to succeed in the industry by cutting down competition by the
way of improving its performance. Further it can be concluded that the firm is performing
exceptionally well in the current market, though there are some areas of concern from the
company’s point of view but as the organisation is heading in the current scenario it can be
believed that Amazon can pass all hurdles in an effective as well as efficient manner so as to
grow and prosper in the long run.

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