An Analysis of Amazon's Leadership and Business Environment: A Report

This report provides a comprehensive analysis of Amazon's leadership and business environment. It begins with an introduction to leadership and the business environment, followed by a detailed SWOT and PESTEL analysis of Amazon, examining its strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, technological, environmental, and legal factors influencing the company. The report then explores the impact of these factors on Amazon's opportunities and threats. It contrasts and compares various leadership styles, ultimately recommending a bureaucratic leadership style for the company. Furthermore, the report discusses Amazon's social responsibilities and ethical considerations, concluding with a reflection on the research findings and recommendations. The report is a valuable resource for understanding Amazon's strategic position and leadership practices.

Leadership and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
SWOT and PESTEL analysis of Amazon. .................................................................................1
Effect of strengths on opportunities and threats of Amazon.......................................................4
Comparison between styles of leadership of Amazon. ..............................................................4
Recommendation of leadership style for Amazon. ....................................................................5
Social responsibilities and ethics of Amazon. ............................................................................6
Reflection of research, learning and findings. ...........................................................................7
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Leadership is define as practical skill which encompasses ability of group, individual and
organisation for influencing or guide other teams. Individuals or whole organisation. It is art of
motivate team members for achievement of common goals and objectives of company (Becker,
2018). In addition, business environment refers to factors or forces which affects ability of firm
which maintains and build successful customer relationship. It defines totality of social and
physical factors which directly taken into consideration in decision making process in
organisation.
Amazon is an American multinational technology company which have headquartered in
Seattle, Washington. It company mainly focuses on e-commerce, artificial intelligence and cloud
computing. This company is founded by Jeff Bezos on 5 July, 1995. Company started online
marketplace for books but now organisation expanded its business by selling software, video
games, apparel, food, toys and so on.
This report cover PESTEL and SWOT analysis & evaluation of changes in PESTEL
analysis which has influenced in opportunities and threats of organisation. In addition, this report
also covers contrast and comparison between leadership styles and which style of management
and leadership is used by Amazon. Furthermore, there is response, obligations and
responsibilities in ethics and social responsibilities in respective organisation.
MAIN BODY
SWOT and PESTEL analysis of Amazon.
SWOT Analysis: It is define as framework which analyse & identifies major strengths,
weaknesses, opportunities and threats which is linked with company. This analysis is used to
understand impact of micro and macro factors on viability for undertaking project of
organisation. SWOT analysis of Amazon is described below: Strengths: It is a internal factor which is considered as characteristics of project or
business which give advantage over others. In terms of Amazon, strengths are as
company is world's leading online retailer organisation which derives its strength from
three strategic thrust such as differentiation, focus and cost leadership (Strielkowski and
Chigisheva, 2018). Company mainly deals its competitive advantage from IT and use of
e-commerce which is easy to scalable at platform. As company uses distribution and
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logistics systems which helps in better customer fulfilments this leads as competitive
advantage over its rivalries.
 Weaknesses: This factor is considered as micro factors which place project or business at
disadvantage to others. In context of respective organisation, as Amazon provide free
shipping to their customers so this leads to situation of danger which loses margins and
also not able to optimise on costs because of strategy which is chosen by company.
Biggest weakness for firm is as it operates zero margin business models which leads to
dented in profitability factor which leads to huge revenue and high volumes which mainly not
meaningful as profit for organisation (Lechner and et. al., 2018). Opportunities: This factor is external factor which have direct impact on functioning of
organisation. This is a element of environment by which project or business exploits
advantage for business. In terms of Amazon, with help of using online payment system
this generates opportunity for company which helps in improving margin of company.
Furthermore, there is also opportunity for organisation as when there is innovation in
their own brand instead of focusing on third party products and services. This helps in
increase in number of products which enhances attraction of potential customers.
 Threats: This is a element of macro environment which creates trouble for project or
business. In context of Amazon, biggest threats for company which distracts success as
increase in concern about online shopping due to hacking & thefts which leads to data of
customers will be exposed (Iordanoglou, 2018). In addition, due to aggressive pricing
strategies company have to face laws from publishers and competitive rivalries. Amazon
also faces huge competition from local online retailers which are more nimble and agile
when there is comparison on their behemoth type of strategy.
PESTEL Analysis: It is Described as a framework which is primarily used by marketers
for monitoring and analysis of macro environmental factors which is associated with business.
The outcome of PESTEL analysis is examining of threats and weaknesses in SWOT analysis of
company. In terms of Amazon, PESTEL analysis is described below: Political Factors: This element is describe about about what and how degree intervention
of government in economy. This involves political & instability in overseas markets, tax
policy, foreign policy and so on. In terms of Amazon, it mainly operates with political
influence. This aspect mainly focuses on governmental activity which affects business
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and their macro environment. Due to Brexit negotiations American and Business
government currently discussed about potential trade among two countries. This leads to
ease operate Amazon in UK which potentially reduces import taxes. Economical Factors: This element have significant impact on company which helps in
profitability forces. This generally involves economic growth, exchange, interest rates ,
disposable income of consumers and so on. In context of respective company, it has
economic stability in developed market segment which leads to increase in disposable
income of people. As economy is positive which flourishes business (Rosenbach, 2018). Social Factors: This element is also called socio cultural factor it involves share of
beliefs and attitudes of citizens. This mainly includes age distribution, population growth,
career growth and so on. In relation to Amazon, social factors are determinant of
company. In this aspect impact of socio culture trends and changes which leads to
increase in performance of online retailing stores (Dumas and Beinecke, 2018). Technological Factors: This aspect mainly considers technological changes in landscape
and in what manner these factors have impact that in what manner product is advertise. In
context of respective company, this factor have direct impact on organisation as there is
rapid obsolescence in technology. There is also enhancement in efficiencies of IT
resources. Due to logistics, there is increase in level of technology which is helpful in
effectively and efficiently deals with demand of highly complicated, globalised supply
chains. Environmental Factors:This factor is more important which is due to enhancement in
scarcity in raw materials, by setting targets towards deduction of carbon footprints which
is considered by government. In terms of Amazon, there is rising interest in programs of
environment. This emphasis of business in increase popularity of low carbon lifestyles.
With increase in pressure by government it is being placed on large company which
reduces organisation emissions.
 Legal Factors: This factor mainly includes equal opportunities, advertising, consumer
laws & rights and so on. According to this factor organisation have to know all legals
factors which are good for company or not. In context of Amazon, as organisation is
operating in e commerce should have to adhere legal requirements. Due to increase in
pressure from governments it reduces organisational emissions.
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Effect of strengths on opportunities and threats of Amazon.
There are various effect on strengths and opportunities & threats due to PESTEL analysis which
is describe below: Political Factors: In context of Amazon, due to political stability which is developed in
countries especially European and USA. Due to increase in governmental efforts on
cyber security it creates opportunities for Amazon. On other hand there is also threat such
as support of government for e-commerce. Economical Factors: Due to economic stability which is developed in market segment
creates opportunities for Amazon. In addition, when there is increase in disposable
income in countries such as developing this is opportunity for company. But on other
hand due to potential economic recession of china leads to situation of threat for
organisation (Kane and et. al., 2019). Social Factors: In terms of Amazon, there is opportunities as increase consumerism in
developing countries and enhancement of habit of online shopping. But on other hand it
is considered as threat for company this is due to increase in wealth disparity. Technological Factors: Due to rapid obsolescence in technology creates opportunities
and threats for respective company. There are also many opportunities such as increase in
efficiency of IT resources. But due to increase in cyber crime it leads to situation of threat
for company. Environmental Factors: When there is rise in interest of environmental programmes
which creates opportunities as increase in sustainability of business. In addition there in
rise in popularity in low carbon lifestyles it creates opportunities for company (Ruel,
Rowlands and Njoku, 2020).
 Legal Factors: In terms of Amazon, due to legal rules and regulations it create threat for
company. But due to change in export and import regulations it creates opportunities for
rising product regulations.
Comparison between styles of leadership of Amazon.
There are various types of leadership which are described below: Strategic leadership: In this type of leadership leader have responsibilities to plan for
growth of business. Leader identifies growth opportunities and business operations. In
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terms of Amazon, the strategic leadership style is very strong as they offers quality
products to satisfy customers which helps in increase in growth of company. Bureaucratic leadership: In this type of style there is policies, regulations and rules in
organisation. In context of respective company, leaders provide benefits and facilities to
their employees which is helpful in motivating employees of organisation .
 Transformational leadership: This type of leadership helps in guide employees for
working in right direction for accomplishment of organisational goals and objectives in
effective manner. As in current scenario, technology is important so it is a responsibility
of leaders for guide their staff members by providing them proper training facilities
(Bratton, 2020).
CURRENT LEADERSHIP STYLE OF AMAZON:
As from current trend or scenario in which company is operating as with help of
bureaucratic style of leadership. As organisation is totally depends on staff members as they are
working 60 hours in a week and with help of their working capabilities company leads to growth
and success in efficient manner. So for this company recruit more candidates which helps in
increase the profitability and productivity of company (Iqbal and Ahmad, 2020).
Recommendation of leadership style for Amazon.
Bureaucratic style of leadership is recommended for company because this is most
suitable form of style. As currently firm is working with autocratic leadership style. As this is a
reason for success of Amazon but on other hand company is also faces many types of criticism.
So for avoiding these type of criticism and for maintaining success for company managers and
leaders have to change leadership style of firm . When company uses Bureaucratic style of
leadership it is appropriate as it assist reason of success and also reduces criticism. By using this
type of leadership style as it is similar to autocratic but many bases are not same. Bureaucratic
leadership style is define as style which considers as company must work on policies, rules,
regulations, procedures and norms which is set by high authority of organisation. This leads to
formation of chain of command from high level to low level of authority or opposite. This form
of leadership style is consider as strict but not like autocratic leadership style as in context of
bureaucratic there are rules and regulations which are made as in terms of favouring in
employees and employers. As on other side autocratic leadership style is only considered as
favour element which is only for employers and all decisions are taken by superiors and team
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members have to follow these rules and strategies. So that why company should have to adopt
Bureaucratic leadership style which play significant role for firm which is helpful in success of
business as now company becomes consistent, organised and also have focused on work as this
become part of decision making as employees need not to work in company for 60 hours in a
week. By this employees are working in standard time which is mentioned in policies this helps
to motivate employees and increase in productivity of company (Javed and et. al., 2019).
Furthermore, there is also benefits such as promotion of creativity, no favouritism, familiarity
encouragement and also generate high level of security. From above analyse it is recommended
as company should have to follow Bureaucratic style of leadership .
Social responsibilities and ethics of Amazon.
Ethics and social responsibilities towards Society:
 Amazon relief fund:
Amazon also start relief fund which is conducted for help of their stakeholders and
business partners in internally and externally way. As due to pandemic situation like Covid-19 so
company take initiatives for help needy people by conducting Amazon relief fund. IT Girls:
In context of Amazon, managers and leaders organise many types of programmes for
girls as those who are working in Coding and IT sector. So for this it leads to generate and create
need for information technology in girls for increase learning and code in technical things so
they have to future growth and development in their staff and also for organisation (Le and Lei,
2019).
Ethics and social responsibilities towards workforce:
 Career choice program:
Amazon also provide career development and skills by conducting various
programs and also pay fees for their skills as up to 95%. So for this company includes many
courses which is helpful in increase personal growth and professional enhancement like
mechanics, nursing and so on.
 Work from home:
Respective organisation offers many employees which are handling the department of
virtual services as they can do work from home. As due to Covid-19, organisation allows many
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team members as they can do there work from home at certain time period and also helps in
maintaining health and safety of their staff members.
Ethics and social responsibilities towards environment:
 Water consumption:
For sustainability in environment respective company use many methods and techniques
by which there is minimum use of water. Organisation also use rain water harvesting system and
recharge wells which is helpful in water consumption. In addition, company also uses
technology such as evaporative solution which helps in consumption of energy.
 Carbon emissions:
Amazon start working on invested for minimum use of carbon footprints in their services
and products by taking initiative with use of green technology. So by this there is a reduction in
use of carbon emissions products which helps in maintaining the sustainability in surrounding.
So by this organisation have many ways in their enterprise which helps in achievement of
success at next level (Kerber and Buono, 2018).
Reflection of research, learning and findings.
From above report there is Amazon is choose which have there operations which enhance
me in very effective manner. As by learning PESTEL and SWOT analysis which may affects
organisation in many ways. I also studied many leadership approaches and also recommended
Bureaucratic leadership style for respective organisation. In my past I did not have proper
knowledge about social responsibilities and ethics which have been use by company and also
helps in analyse things. I also gain so much knowledge about Amazon and their operations. So
from this there are many leadership styles which have to be understand by corporate sector.
CONCLUSION
It has been concluded from above report as it is considered as important for every
organisation for examine internal and external factor which have direct impact on decision
making process of organisation so with help of SWOT and PESTLE analysis this may be
consider. These analysis also assist organisation for analyse threats and opportunities which may
affect the operation of company. Furthermore, there is also many types of leadership style which
is considered by every company. Moreover, it also includes suitable practices which is
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considered with ethics and social responsibilities. These factors are consider as important forces
for examine every function of company.
REFERENCES
Books and Journals
Becker, G.K., 2018. Moral leadership in business. Contemporary Issues in Leadership, pp.237-
257.
Bratton, J. ed., 2020. Organizational leadership. SAGE Publications Limited.
Dumas, C. and Beinecke, R.H., 2018. Change leadership in the 21st century. Journal of
Organizational Change Management.
Iordanoglou, D., 2018. Future trends in leadership development practices and the crucial
leadership skills. Journal of Leadership, Accountability and Ethics. 15(2).
Iqbal, Q. and Ahmad, N.H., 2020. Sustainable development: The colors of sustainable leadership
in learning organization. Sustainable Development.
Javed, B. and et. al., 2019. Impact of inclusive leadership on innovative work behavior: The role
of psychological safety. Journal of Management and Organization. 25(1). pp.117-136.
Kane, G.C. and et. al., 2019. How digital leadership is (n't) different. MIT Sloan Management
Review. 60(3). pp.34-39.
Kerber, K.W. and Buono, A.F., 2018. The Rhythm of Change Leadership. Organization
Development Journal. 36(3).
Le, P.B. and Lei, H., 2019. Determinants of innovation capability: the roles of transformational
leadership, knowledge sharing and perceived organizational support. Journal of
knowledge management.
Lechner, C.M. and et. al., 2018. What drives future business leaders? How work values and
gender shape young adults' entrepreneurial and leadership aspirations. Journal of
Vocational Behavior, 107, pp.57-70.
Rosenbach, W.E., 2018. Contemporary issues in leadership. Routledge.
Ruel, H., Rowlands, H. and Njoku, E., 2020. Digital business strategizing: the role of leadership
and organizational learning. Competitiveness Review: An International Business
Journal.
Strielkowski, W. and Chigisheva, O., 2018. Leadership for the future sustainable development of
business and education. Springer proceedings in business and economics. Springer,
Cham.
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