BABS Foundation: Leadership and Business Environment Case Study Report

This report provides a comprehensive analysis of leadership and the business environment, with a specific focus on Amazon. It begins with an introduction to the nature of business and then delves into SWOT and PESTLE analyses to evaluate Amazon's strengths, weaknesses, opportunities, and threats, as well as its political, economic, social, technological, legal, and environmental factors. The report identifies key changes and explores various leadership styles, recommending an appropriate approach for Amazon. Furthermore, it examines ethical and social management practices within the company. The report concludes with reflections and references to support its findings. The report aims to provide insights into effective leadership strategies and their application in a real-world business context, offering valuable information for students studying business and management. The report showcases the application of theoretical concepts to a practical case study, providing a holistic understanding of business operations.

LEADERSHIP AND BUSINESS
ENVIRONMENT

Table of Contents
LEADERSHIP AND BUSINESS ENVIRONMENT.....................................................................1
INTRODUCTION...........................................................................................................................3
NATURE OF BUSINESS...............................................................................................................3
SWOT and PESTLE Analysis..................................................................................................3
PESTLE analysis:......................................................................................................................5
ANALYSIS......................................................................................................................................7
Identification of changes...........................................................................................................7
LEADERSHIP STYLES.................................................................................................................7
Types of leaderships..................................................................................................................7
RECOMMENDATION...................................................................................................................8
Leadership style that can be employed for amazon...............................................................8
ETHICAL AND SOCIAL MANAGEMENT.................................................................................9
Ethics and social responsibility of amazon..............................................................................9
REPORT REFLECTION.................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
The world itself is a corporate lifestyle that is in view of the businesses and the retailers.
Marketing is conquering the entire entity of the people around, by creating many opportunities
that are worth conquering. In any organisation the major concern is the management. The
effective management will denote the company’s success rate (Daniëls and et.al, 2019). On an
average there are very few companies thar have achieve a mark of being the best by just
maintaining a perfect management structure that will avoid the confusion in the firm. The most
out of the businesses in world, the retailing sector is the one that is occupying almost every part
of the human existence. there id no back drop in the needs and requirements of the human
population and that is the stepping stone for the retailers around the world. The entire report
deals with the essence of leadership management in a business atmosphere and particularly the
Amazon retailer and its analysis is mentioned to bring out the perfect management structure that
is employed by the company.
NATURE OF BUSINESS
SWOT and PESTLE Analysis
Any business that is maintaining its marketing structure will first focus upon the essentials
that are required to put forth the management of the business. the SWOT and PESTLE analysis
will help to analyse every requirement that is essential in the competitive world. The Amazon
company is the largest retailer with an expansion of about the 80% of the world’s population
using the service (Oc, 2018). It started with a small and a petite conception of being a household
material provider and later extended to be the world’s renowned retailing service. The company
extended its trade both online and offline and made it accessible to everybody around. Now in
the present world, there is no person who is not aware of this service. So, what made Amazon
such a renowned retailer? Diving deep into the marketing document and knowing the basics of
what are the steps that are put forth by the management will help to analyse the success of the
retailer.
SWOT:
The swot analysis of a company will highlight the strengths, weaknesses, opportunities and
threats that are related with the trade. Analysing these will help to maintain the record by
improving areas and moving forward with immense opportunities (Rahdari and et.al, 2020). The
SWOT analysis of the company Amazon is as follows:

Strengths:
Strong background: Amazon started the business by being the book seller and later extended for
being the best seller of all the items ranging from clothes, materials, households, books, gadgets
and many other stuff. There is no product unavailable in amazon which is because of the
maintenance of the quality and quantity of the trade.
Customer centric: The robust CRM of the company will keep a check on the customer buying
behaviour. The recordings of the customers interests are maintained which will further help the
service to focus upon the things that are to be included with offers and many materials
(Dominguez and et.al, 2018). It is said that the 55% of the customers are the repetitive buyers of
the service and there is not a big deal in lowering the costs especially for them.
Cost leadership: The service amazon is in tie up with logistics who is responsible to minimise
the costs according to the customer demands. The cost effectives purchases will help the service
gain more customers. One f the best feature of amazon is its chain of supply which imports
quality products to the service which are in return delivered to the customers.
Weaknesses:
Shrinking margins: due to extensive price wards and the noticeable shrinking margins the service
is experiencing great losses (GNANADHAS, 2020). There was a tremendous loss in the
company which has resulted in sacrificing so many dollars.
Tax avoidance: there is a negative talk upon the service in the UK and US for avoiding the tax.
The company has most of the customers and the service is at its peak in these countries.
Product flops: there are many products in the service of all rates and of all the margins.
Sometimes the materials may not be of good sale and the money invested upon the materials will
be a great loss to the company. Every year there is a lot of stuff that is rejected by the customers
and that which is invested will be a back drop (Sarsby, 2016).
Opportunities:
Backward integration: the craze that the retailer developed among the customers is so high that it
can come up with its own brand house by satisfying the needs of those that are freaks of fashion.
Since there are already enormous repetitive customers there is not much drawback in the sales of
the personalised brands of the company.
Global expansion: the company has a greater scope of expansion mainly in the Asian and the
middle eastern countries were the e-commerce is not up to the mark. The service can end up

making profits that cannot be expected since people everywhere are found of the retailer and its
products (Pan and et.al, 2019).
Opening physical stores: right at the moment the service is only physically available to a
particular area or a region. Opening the stores physically in and around the more revenue
generated place like that of US will make people close to the brands and that will be a boon to
the expansion of the service.
Threats:
Low entry barriers: the low entry barriers refer to the shrinking of the margins and the subtle
means that are actually not taken care of by the company that will result in the loss of the service.
Local competition: there are many companies in the retailing sector of many countries some of
which include the Flipkart and the snap deal which will stand as a competition because of their
implementations and ideas. The service will have to come up with new innovations that will
make it unique.
Government regulations: the major issues pertaining to the e-commerce is the FDI policies
which are not clear in case of the services (Nurmi and Niemelä, 2018). These will somehow
impact the trade by sudden monitoring of the regulations.
PESTLE analysis:
The pestle analysis deals with the political, economic, social, technology, environmental
and legal factors that are associated with the company. The PESTLE analysis plays a crucial role
in the marketing world and its contribution to the company will enhance the growth of the
company. the PESTLE analysis of the company Amazon is as follows:
Political:
Political factors play a major role. These are nothing but the rules and regulations that are
employed by the government upon the usage of the services. In many countries like that of Chia
there is a less possibility upon the expansion of trade because there is no regulation that is
developed upon the usage of the online shopping and people shop from the internet sometimes
which is not accepted. This might affect the amazon trade. Although the company is extended in
140 countries dues to censorship issues few countries many not accept the expansion either
online or offline. By maintaining a proper plan the company can step ahead in the process of
political dealing (Fiaz and et.al, 2017).

Economic factors:
Economic factors are that related to the revenue of the trade. Whatever may be the business
or an idea that the company is working for, the economy and the profits generated are the major
concern. Many eastern countries are using the service on an immense basis that is developing a
havoc in the trade where as due to uncertainty in the economic condition of the US and EU there
is not much trade. The resources that are allotted to these regions might notice a loss because of
the effort and alliances that are put and expected may not reach the perk of the retailer.
Social factors:
Social factors are those that are related to the society and the issues that are adhered by the
society. Many people are fond of the online shopping and are very much towards it because of
the feasibility that online shopping inculcated amidst of the customers (Al Khajeh, 2018). This
had also created a revenue that is more that that of the expected one. Yet, there are many people
out there who would like to shop by physically analysing the brand. For them this will not be
service that is acceptable. If the service could extend as a physical store in many parts, then there
will be enormous amount generated upon the goods and services.
Technological factors:
Increasing technology has a greater demand for the extension of the service. As of now the
data of all the products that are stored in the base are said to be available online to many of the
users without much server issues. There is a greater scope to the service to extend in the strict
zones like the US and EU where the technological implementations are a bit confined. Some
server issues might result in loss of customers and that if maintained properly can boost up the
service.
Legal issues
There is an issue that is running on in the service pertaining to the tax that is to be assured
to the government. Issues like these will spoil the relation that the service will have to develop
with the government. The legal issues will result in land acquisition where the trade is carrying
physical. To avoid these, issues there must be a subtle alliance of bearing the allegations of the
government to that which is negotiating the service (Gandolfi and Stone, 2017).
Environmental factors:
The environmental factors influence the customers so much in the business. there will be a
number of industries evolving in the same sector which becomes difficult for the customers to

choose. In these factors the service will be affected because of the change. It must be able to
adapt to every now and then situation that will define its bench mark.
ANALYSIS
Identification of changes
In personal opinion and in general context, the retailer is using every opportunity by
making the best out of everything. From the PESTLE analysis the point that is clear according to
my context is that, the political factors are screwing up the expansion of the service overseas
because of their strict regulations that are adopted. In order to manage the political factors, the
company will have to first focus upon building its relation with the officials of the government
by paying the tax dues on time that will help it to expand overseas. In countries were there is a
censorship board against the usage of online shopping services, the company will have to focus
on innovating measures that will reach the people in a less course of time without much
government’s intervention (Deepak and Jeyakumar, 2019). The strengths in the SWOT analysis
will help beat the weaknesses and threats. The customer centric approach of the service is so
high that it can conquer the liabilities in the e-commerce sector. This is not much seen in today’s
retailers and that will fetch opportunities to the company. the cost-effective goods with major
quality and the repetitive customer satisfaction will help the company overcome loss and threats.
LEADERSHIP STYLES
Types of leaderships
In any organisation the management is in charge of the measures that are to eb
implemented. Every effective management contains a manager, whose role is essential in
maintain the organisation. the leadership is a quality that is to be inherited by the mangers to
carryout the tasks of the work. The different types of leadership styles are as follows:
Autocratic leadership: in this type of leadership the manager will be the boss of implementing
decisions and the employees will have to work upon the policies that are made by the manager.
Democratic leadership: in this kind of leadership, the subordinates are involved in making
decisions along with the manager and everybody’s ideas are given equal importance in the
implementation.

Strategic leadership: this is a kind of leadership in which any person who has a strong grip on
the idea that is being elaborated can take charge over the implementation and that particular
person will be the leader for it.
Transformational leadership: in this kind of leadership the manager will encompass all the
objectives and decisions. Required motivation is provided to the employees upon doing the work
and any kind of assistance regarding work will be offered.
Team leadership: in this particular leadership every person of the team is responsible for the
work. Nobody is superior to the other. Everyone is equally prioritised and will every idea will be
taken into account.
Cross-cultural leadership: in this kind of leadership, it is a mandate to identify the front runners
of the organisation that are working under different cultures and ethics.
Facilitative leadership: in this kind of leadership, the manager is in charge of facilitating the
liabilities to the crowd that are in the organisation. it is not just about the way that is adopted to
the task, but is a measure of how the facilities of the organisation are granted to the people.
Visionary leadership: in this type of leadership, the manager and the staff and everybody
believes that success is achieved only through people.
The leadership style that is followed by Amazon is the visionary leadership style. The retailer
being one of the most prominent one with regards to the sales of the products believes that
although there are different streams that are employed in the management, the main part is
always the customers. Amazon has 9 members as board of directors. There are three different
committees in the organisation. The lack of diversity is being criticized by the authorities.
Amazon leadership is all about facing challenges that are related to sustainability.
RECOMMENDATION
Leadership style that can be employed for amazon
Amazon is a vast retailer service that is almost available in all the areas of the world. The
management of the company must be in a way that cannot be competed by other retailers and the
leadership must be such that there will not be any kind of drawbacks pertaining. The leadership
style personally that is preferred by me in context with Amazon is the flexible style or a
situational style. A flexible leadership will help to analyse the circumstances and can be able to
mould the ideas and decisions accordingly. In a retailing business where the decisions keep

changing under various circumstances, the only thing that can be relied upon is the change. The
manager with this particular leadership style will be adaptable to the methods and methodologies
that are pertaining in the world. The situational leadership will help to overcome the situations
that drastically change the entire trade like those of profits, losses and hurdles. When there is a
sudden loss like that happened in 2013-14, the leader must be able to cope up with a good set
back ideas. These two styles of leadership will enhance the business to greater heights.
ETHICAL AND SOCIAL MANAGEMENT
Ethics and social responsibility of amazon
Being the top retailers of the recent times, the company Amazon is said to be the most
authentic of all kinds. The ethics and social responsibilities are the stepping stones for growth.
Every organisation is said to maintain the pace out of which there is enough scope for
conquering the opportunities. The company Amazon follows the ethical principles that are
related to the customer centric and cost issues (Chión and et.al, 2019). The cost is such that it is
easily accessible to the people. this is because the company is in partnership with the logistics for
the cost related issues and there is minimising of the cost because of this. The customer approach
is such that the company strives hard to main the availability of goods according to their interest.
Their donations are spread through the non-profit organisations through the US. The
amazon.com is the search tab that is made accessible to the users.
REPORT REFLECTION
The entire report makes it clear about the leadership environment in any organisation.
Personally, I could understand the essence of management and how far a company can grow with
regards to maintenance and management. The leadership styles that are not know were learnt in
this context. The myths that are in disguise of the company Amazon with respect to the
marketing essentials is shown in the report. The SWOT analysis made every strength, weakness,
opportunities and threats known and what made the company move forward is their consistency
in the growth range. The PESTLE analysis shows the political alliances that are acting as a back
drop to the trade. The theories of leadership make it clear that the customers are a major target to
the company and they develop the aspects that are useful for the customers. The visionary
leadership style proves that the customer is the sole reason of trade as believed by the company

Amazon. The aspects related to tax issues if sorted out properly and the government
communication if maintained correctly, then there will probably not be a drawback in the
company trade and growth will be ensured.
CONCLUSION
The entire report deals with the leadership management of the company. a leader is the one
who is in charge of the work that is being adopted by the firm or an organisation. In a retailing
company there are many things that are to be taken care about. The report brings forth the
marketing of the company Amazon and its approach in making the success in all the fields. The
swot analysis brings forth the strengths, weaknesses, opportunities and threats that are involved
in the company. it also explains how the strengths will help to prevent and grow over the
weaknesses and threats. The PESTEL analysis will help to realise the political, economic, social,
technological, environmental and legal factors that are very important to be tackled in the
organisation. the overview about the different leadership styles are explained and the leadership
style that is employed by the company Amazon is portrayed in the context. The style of
leadership that can be used to develop the application even more is also shown in the report.

REFERENCES
Books and journals
Al Khajeh, 2018. Impact of leadership styles on organizational performance. Journal of Human
Resources Management Research, 2018. pp.1-10.
Chión and et.al, 2019. The impact of organisational culture, organisational structure and
technological infrastructure on process improvement through knowledge sharing. Business
Process Management Journal.
Daniëls and et.al, 2019. A review on leadership and leadership development in educational
settings. Educational research review. 27. pp.110-125.
Deepak and Jeyakumar, 2019. Marketing management. Educreation Publishing.
Dominguez and et.al, 2018. Information sharing in supply chains with heterogeneous retailers.
Omega. 79. pp.116-132.
Fiaz and et.al, 2017. Leadership styles and employees' motivation: Perspective from an emerging
economy. The Journal of Developing Areas. 51(4). pp.143-156.
Gandolfi and Stone, 2017. The emergence of leadership styles: A clarified categorization.
Revista De Management Comparat International. 18(1). p.18.
GNANADHAS, 2020. SWOT Analysis of Goods and Service Tax (GST) on Small Retail
Business. Studies in Indian Place Names. 40(18). pp.697-700.
Nurmi and Niemelä, 2018, November. PESTEL analysis of hacktivism campaign motivations. In
Nordic Conference on Secure IT Systems (pp. 323-335). Springer, Cham.
Oc, 2018. Contextual leadership: A systematic review of how contextual factors shape leadership
and its outcomes. The Leadership Quarterly. 29(1). pp.218-235.
Pan and et.al, 2019. PESTEL analysis of construction productivity enhancement strategies: A
case study of three economies. Journal of Management in Engineering. 35(1). p.05018013.
Rahdari and et.al, 2020. Exploring global retailers' corporate social responsibility performance.
Heliyon. 6(8). p.e04644.
Sarsby, 2016. SWOT analysis. Lulu. com.
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Online
Ethics and social responsibilities: [ONLINE] Available through: <
https://www.pachamama.org/social-justice/social-responsibility-and-ethics#:~:text=The
%20theory%20of%20social%20responsibility%20and%20ethics%20applies,an%20effect%20on
%20other%20persons%20and%2For%20the%20environment.>
Leadership management: [ONLINE] Available through: <
https://www.ripublication.com/gjmbs_spl/gjmbsv3n3spl_14.pdf>
Leadership styles: [ONLINE] Available through: <
https://www.indeed.com/career-advice/career-development/10-common-leadership-styles>
PESTEL Analysis: [ONLINE] Available through: <
https://pestleanalysis.com/pest-analysis/#:~:text=PESTEL%20analysis%20is%20an
%20extension%20of%20PEST%20that,PEST%20analysis%2C%20but%20they%20would
%20include%20the%20following%3A>
SWOT Analysis: [ONLINE] Available through: <
https://www.mindtools.com/pages/article/newTMC_05.htm>
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