Leadership and Business Context: An Analysis of Amazon's Strategies

This report provides a comprehensive analysis of Amazon's leadership, business context, and ethical and social responsibilities. It begins with an introduction to leadership and its importance in organizational success, followed by a SWOT and PESTEL analysis of Amazon, examining its strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, technological, legal, and environmental factors influencing its business. The report then delves into different leadership styles, highlighting the transformational leadership style employed by Amazon, particularly under Jeff Bezos, and its impact on employee motivation and organizational goals. Furthermore, the report discusses Amazon's ethical and social responsibility initiatives, including its CSR programs, and concludes with a reflection on the key findings and recommendations for future strategies. The analysis includes discussions on leadership styles, the impact of external factors, and the importance of ethical considerations in the e-commerce giant's operations. The report aims to provide insights into Amazon's leadership strategies and their effectiveness in the context of the company's business operations.

Context of Business

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
SWOT and PESTEL analysis of Amazon...................................................................................3
PESTEL factors that influenced the Opportunities and Threats.................................................5
Different styles of leadership......................................................................................................6
Leadership style of Amazon........................................................................................................7
Ethical and Social Responsibility of Amazon.............................................................................8
Reflection..................................................................................................................................10
CONCLUSION .............................................................................................................................11
REFRENCES.................................................................................................................................12
Books and Journal.....................................................................................................................12

INTRODUCTION
Leadership is the activity that motivates employees towards the organisational goals and
objectives (Gerstein and Friedman, 2017). It is the activity that performed by leader of the
company, it is not easy task. It requires lots of knowledge and experience for performing
leadership activity. Leader is the person who identify and analyse the problems of internal and
external factors which influence the business. It is the basic and most important activity that can
be done for the success and growth of the business. In this context, Amazon is undertaken for
analysing the leadership style in the business and how they impact on functions of organisation.
Amazon is the American company that deals in e-commerce business that serve all types of
goods and services, their headquartered located in Washington, US. This report covers the
SWOT and PESTLE analysis that how they influence internal factors and their impact on
opportunities and threats.
MAIN BODY
SWOT and PESTEL analysis of Amazon
SWOT is the tool that analysis the internal factors that helps to the organisation to know
their strengths and weakness and how to use opportunities and deal with threats. It is the most
important tool that helps in analysing their internal factors of the organisation (Hung, 2019).
Amazon is the most recognizable brand and popular company that deals in e-commerce business
such as sell electronic items, food and grocery items, etc. though online booking. Because
Amazon is the multinational company so they need to analysis their internal factors, it can be
done with the help of SWOT analysis that are explained in following table:
STRENGTHS WEAKNESSES
 One of the important strengths of
Amazon are their strategies which
include differentiation, cost leadership
and focus.
 They taking competitive advantage
because they serve IT services that
have low competitors in the market.
 Because they serving free shipping so
the lost their profits margins that
directly influence on their revenues
(Ngonini and Busari, 2017).
 The biggest weakness of Amazon is
they do business in zero margins that
affects their profits and survival of the

 Another important strengths of Amazon
is their logistics and distribution system
they have very fast delivery.
companies.
 They have mainly focus on retail
business that contracts their success and
growth of the business.
OPPORTUNITIES THREATS
 They serving online payment in which
they have a opportunity of serving best
privacy and security to the customers
so that they can easily rely on them
(Kyalo, Katuse and Kiriri, 2016).
 They has a opportunity to expand their
business through launching many more
sites in the market.
 One of the important threat of the
business is to serve online business and
it can be hacked by hackers because
they run their business very
successfully.
 Now e-commerce business get very
competitive because there are many
rivals that enters in the e-commerce
business that becomes the threats of
Amazon.
Another important tool that helps to analyse the external market that influence the
business very badly i.e. PESTLE analysis. The detail description is mentioned below in the
following points:
Political Factors: It include the factors that are related to political stability of particular
country. Amazon is the American company, in which political stability is good because it is the
developed nation. Because it is the e-commerce business that currently promotes by the
government that has a positive impact on the organisation.
Economical Factors: They are the factors that influence the economic growth and
individual income. Because USA is the developed nation that have very good economic
conditions so Amazon have very low chances of any conflicts and challenges related to the
economical factors.
Social Factors: Amazon is the multinational company that operates in many countries
because of that they face many challenges related to the social and cultural factors. They have
many challenges such as they have to satisfy each and every person of different culture and
traditions (Milenkovska, Markovska and Nikolovski, 2017).

Technological Factors: It is very obvious that technological factors are get very rapidly
changes. That become a big challenge for Amazon because they operate their business online
which needs new technologies to ease the business. Technologies getting obsolete very rapidly.
Legal Factors: Legal factors include the rules and regulations related to the laws that
effect the business operations. Amazon selling goods through import and export in which they
face many types of rules and regulations that they should be follow. It becomes very tough for
sometimes when they sell goods to very far places, where the delivery sometimes not possible.
Environmental factors: Ecological one of the important factors in which Amazon have
to focus on making environment friendly. So that they complete their CSR policy of
organisation.
PESTEL factors that influenced the Opportunities and Threats
Macro environmental factors are directly influence ion organisations' threats and
opportunities. It can be better understand from the following mentioned points:
Political factor:
 Opportunity: Amazon is the USA company that have very strong political stability so
that's why it become opportunity for company to run their business successfully (Okupe,
2020).
 Threats: Because government supports online business that increase the threat of
competitors.
Economical factor:
 Opportunity: USA has strong economic conditions even after this pandemic situation so it
becomes opportunity for Amazon that they do not face much recession period.
 Threat: Amazon has deliver their products and services in China in which they face
recession period of China. That becomes threat for the company.
Social factor:
 Opportunity: In nowadays public are get habitant of online business that become a big
opportunity to increase their business at very large scale.
 Threat: It is known that the wealth disparity gap continuously increase that means poor
becomes more poor and richer becomes more rich. This becomes threat for Amazon that
they didn't covered all population (Semuel, Siagian and Octavia, 2017).
Technological factor:

 Opportunity: They focus on making best privacy and security so that they overcome with
cybercrimes.
 Threat: Cybercrime increasing at a very high rate as well as new technologies getting
obsolete very frequently that becomes the threat for the company.
Legal factor:
 Opportunity: They follow all types of rules and regulations that helps in increasing their
brand values.
 Threat: In present scenario there is no threat of legal factors in Amazon.
Environment factor:
 Opportunity: Amazon doesn't use too much plastic as they deliver goods and services in
cardboard that directly promotes ecological factor. That means they are focusing on
environment factor, so it becomes a opportunity.
 Threat: There is no such threat seen in Amazon business operations.
From the above discussion it is analysed that external factors get influence the company's
opportunities and threats. It is very obvious that if company have more strengths then they have a
capability to overcome with threats and weakness (Ghanem and Castelli, 2019). With more
strengths they convert their weaknesses into strengths so that they also try to convert their threats
into opportunities. That's why it is important for organisation that they should increase their
strengths so that they are able to overcome with threats and weaknesses.
Different styles of leadership
Leadership is the important factors that should be consider in the success and failure of
organisations. There are many types of leadership styles are present that used by leader, some of
them are mentioned below:
Authoritarian Leadership- It refers to the style where leaders allow to make expectation
and defining outcomes from their assigned task. In simple words what leader want from the
organisations' employees, they can impose their expectation on them (Xie and Pang, 2018).
Participative Leadership- It is one of the most effective style where the leaders involve
employees in the decision making process of that they feel they rae important for organisation
success.

Delegative leadership- In this type of leadership style, leaders delegate the authorities so
that they can distribute duties and responsibilities to ease the work and because of that
employees are accountable for their jobs.
Transactional leadership- This leadership styles basically refer to give and take
leadership in which leader makes goals and targets for employees and in return back employees
get some benefits and rewards to complete their task. It is helpful when the employees are money
minded, they getting motivate through rewards.
Transformational Leadership- This is the most effective leadership style in which
organisation leaders' are the person where they act as a role model. In this style they set some
visions that empowers and encourage employees to do the job effectively. Amazon us e this style
in which their founder Jeff Bezos acting as a role model (Dereko, 2017). Their success story
influence employees of the organisation that directly motivates the employees to accomplish
organisational goals and objectives. It becomes their success strategy to use this type of style so
that they enhance the growth of employees in their organisation.
It is analysed that Amazon found that transformational leadership style is most effective
style because it sets vision for employees. From which all employees know their goals and
targets and they work according to them. They focus on accomplishing their task so that they can
also become role model as their leader became. So that's why it is important for the organisation
that they choose leadership style that suits their organisation.
Leadership style of Amazon
Amazon works in a diversified working environment. For that the company have to
manage their workforce efficiently which will help them in utilising their skills at the right place.
Leadership style defines that how the leader of the company manages their working environment
by prioritising the customer value. The leadership style which is used by the founder Jeff Bezos
is transformational form of leadership style. This leadership style focuses on the importance of
introducing and managing change in the organisation (Parlar, 2017). The organisation is working
on the standards which prioritize the customer service on the top. For enhancing their workforce
and collaborating their work towards the attainment of the goals of the organisation the company
is introducing innovative methods of processing. According to this theory change will be
considered as an integral part of the working environment of the company. Amazon can also use
pragmatist leadership style which will suit their management. Pragmatist leaders are those who

set high standards for the company and motivate the workforce for achieving and maintaining
those standards. This style will define the core service of the company and serve value added
products to their customers. The leadership style of Jeff Bezos is unique in terms of contingency
and competitiveness. This leadership style follows various principle across the working
environment of the company. Customer obsession, ownership, invent and simplify, leaders are
right, learn and be curious and so on. These principles sustain the productivity and profitability
of the company and enhance their growth prospects. The company will deal the working
environment challenges thorough the adoption of this leadership style. Also, the company can
introduce process innovation, constantly entering into new segments and using human resources
up to their maximum potential. Furthermore, this style of leadership will depicts the long term
vision of the company towards achieving a leading position in the industry. The pragmatist
leaders are those who tends to take effective steps towards the achievement of the high standards
set for their team and for themselves.
Ethical and Social Responsibility of Amazon.
Amazon is a big giant company but was criticised for their promises regarding the
corporate social responsibility many a times (Peterlin, 2016). But after 2014 the company hire
their first sustainability executive Kara Hartnett which evaluated that the CSR of the company is
not good. For that the company have launched various CSR programs which includes the
following:
 Amazon Supporting Local communities: Due to the current ongoing pandemic attack
the company have taken many initiatives to help the communities. The company have
created a Amazon Relief Fund with an amount of USD 25 million contribution for
supporting the delivery partner who are working independently. It also help the
stakeholders to deal with the negative impact of coronavirus on the business. The
company have also introduce device donation program in which they donate the
electronic devices to nearby schools across the US. Moreover, the company have
introduced a program for “Girls who code” occasionally which will enhance their
knowledge. The e-commerce company supports the national and local non-profit
organisations.
 Amazon educating and empowering workers: The company have developed an
Amazon career choice programme which pre pays the 95% of the tuition fees for the

workers. The workers can choose the various programs namely nursing, air plane
mechanic (Leitch and Volery, 2017). This program was attended by 10000 employees
across the globe. Furthermore, amazon have allowed the employees of customer service
department to avail the facility of work from home. The company have an innovati9ve
thinking which can get evidence from the launch of their scheme of pay to quit offer. Due
to this many workers of the warehouse quit their jobs and think what they really want to
do.
 Amazon Gender equalities and Minorities: Gender inequality is a major concern for a
developed company. So for managing this issue the company have adopted CSR
initiatives (Beehner, 2020). This involves the induction of 10 affinity groups in the
company which are known as employee resource groups. In 2019, the company have
launched a social responsibility project namely “ HER project” which have motivated
8000 women to enter the supply chain department of the company.
 Waste reduction by amazon: The company have also initiate to reduce the waste in
their external environment. For ensuring this company have started a free packaging
programme. Under this programme the customers will receive their ordered products in
their original packaging and the company will exclude the secondary packaging. The
company have celebrated their victory of eliminating more than 665,000 tons of
packaging materials in 2017.
 Carbon Emission by Amazon: The company have recorded their carbon footprints
44,40 million metric tons in 2019. also, due to their achievement the company have taken
a pledge to coordinate their workforce towards achievement of zero carbon by 2040
across the company (Samul, 2020). The company have also developed a target of
achieving zero carbon for 50% of their shipment products by 2030. furthermore, the
company have recorded 100,000 fully electric delivery vehicles which will enhance their
operations across the globe.
 Water Consumption by Amazon: The centres of the company have the ability to collect
the rainwater in their tanks which will be further utilised for the production process. Also,
the company have introduced direct evaporative technology which will cool their data
centres resulting in minimum consumption of energy and water resources. This initiative
is achieved through the use of recharge wells and rainwater collection tanks.

Hence, these are the ethical and social responsibilities fulfilled by the company for the
betterment of the employee, customers and for well being of society groups (Dalati,
Raudeliūnienė and Davidavičienė, 2017). The company focused precisely on each of the
developed programs and records their working and impact on the internal and external
environment of the company. Also, the company control and monitor the working of the CSR
programmes which will follow their steps towards the successful leading giant brand.
Reflection
This report basically provided me an effective experience of learning. The PESTEL
analysis have informed me about the various factors which effects the working environment of
the company. Furthermore, it helped in understanding the various types of leadership styles. The
main one include the transformational leadership style which helped me in understanding the
importance of change management in my own life. I fear to adopt the change but this theory have
explained me that change is a vital factor which will enhance my personality in the business
environment. This will also helped in shaping my career in business sector which will enhance
my knowledge in organisation context. Due to this study I have initiated my career towards
achieving my leadership goals. This is an effective report which provides an understanding CSR
for a company. There are numerous ways which can be initiated by the companies for the well
being of the society. I have learned a lot thorough this research study about the importance of
CSR and why it is necessary to maintain it in the organisation. There are many resources which
are used by the company for managing their workforce effectively. I gained knowledge of the
leadership concepts and the strength and weaknesses of the organisation.
There are many theories of leadership which can be applied across different organisation
the leadership style is based on the selection of the leader and the requirements of the working
environment of the company. Starbucks is an American MNC which operates chains of coffee
houses and roastery reserves. The company was founded in 1971 headquartered in Washington.
The company adopts the transformation leadership style as they have a vision of introducing
innovative change in their working environment. This leadership style will encourage motivation
among the workforce of the company. It will establish a leading position of the brand in the
competitive industry. Due to this strategy the company have developed certain standards which
involves think big, dive deep, earn for trust and so on. Theses standards will enhance their
productivity and profitability through effective maintenance of CSR policies. The company have

also initiated CSR policies which involves the ethical sourcing of tea and coffee materials from
their selected farmers. For this the company have have build LEED certified stores for recycling
purpose. The company is committed towards their farmers and suppliers which shows their
ethical standards effectively.
CONCLUSION
From the above report it can be concluded that the business involves a number of
concepts which will help the organisation to grow in the competitive environment. Also, this
report the concepts of PESTEL framework which will evaluate the external environment of the
company. This report have also analysed the internal environment of the company with the help
of SWOT analysis. This approach will define their threats and opportunities due to which the
company will be able to make effective use of resources. A leader performs the duty of
managing the work of employees towards the attainment of organisational goals. This report will
cover the various leadership styles out of which it focus on the leadership style adopted by the
above mentioned company.

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