Context of Business: Leadership and Amazon's Business Environment

This report provides a comprehensive analysis of Amazon's leadership and business environment, covering key aspects such as SWOT and PESTEL analyses to identify internal and external factors impacting the company. It evaluates the influence of PESTEL factors and explores various leadership styles, including servant, coaching, and bureaucratic styles, with a focus on the transformational leadership style of Jeff Bezos. The report recommends the integration of coaching leadership to align with Amazon's management style. It also discusses ethical responsibilities and the importance of adapting to changes in the business environment. The report concludes with a personal reflection on the learnings gained from the analysis.

CONTEXT OF BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
SWOT and PESTEL analysis for Amazon..................................................................................3
Evaluation of the impact of changes in PESTEL factors............................................................5
Styles and leadership...................................................................................................................6
Suitable leadership style that will match the management style.................................................7
Responsibility, obligations and response in their ethics and social responsibilities....................8
Reflection.....................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Leadership and business environment are two different aspects to a business or a
company. Basically, leadership is a quality which generally exists inside a person who has an
excellent skill of leadership (Lima and da Silva Müller, 2017). On the other side, there is analysis
of business environment factors also very important to systematically deal with impact of these
factors. This report mainly discusses the leadership and business environment aspects of
Amazon. Basically, Amazon is the most popular American e-commerce venture which currently
serves in across the world. This report discusses impact of internal and external factors of
business environment on Amazon. Opportunities also has been discussed in this report which
upper management of company has generated through impacts of different factors. At the end, a
personal reflection also has been added in this report to describe the learnings.
MAIN BODY
SWOT and PESTEL analysis for Amazon
Currently upper management of each business have to consider both analytical tools and
frameworks within on workplace, named; PESTEL and SWOT, because these gives opportunity
to the management of a business for identifying key internal and external factors of the business
environment with their impacts. In this situation, these both tools have been used below for
Amazon.
SWOT analysis
SWOT analysis tool is generally used to identifying key internal factors of the business,
in which upper management of business have to use this tool (Schein, 2017). SWOT term shows
four major internal factors which has been discussed below;
Strengths: Currently Amazon is the most reputed e-commerce business in across the world, and
this is the actual strength of the business. On the other side, it has the biggest customer base also
in its respective industry, so this is another key strength of the business.

Weaknesses: Upper management of this business is able to expand its business operations only
in those countries or nations where most people knows about the technology and internet,
because app and website of Amazon always opens on the internet, so it cannot expand own
business operations in such countries where most people not knows how to use different
technological gadgets and software.
Opportunities: Currently the management of Amazon has an opportunity to highly attract many
customers in the market place by using digital marketing strategy in own marketing plan
(Hutchinson, 2017). On the other side, the business has opportunity to gain loyal customer base
by offering more quality services than other e-commerce ventures.
Threats: Existing higher competition is the main threat to busines. For example; eBay and
Alibaba give very tough competition to the business in market place. This is why huge
competition is main threat to business.
PESTEL analysis
This tool is also very helpful to different business and companies, because it gives
opportunity to businesses for identifying the impact of external factors of own business
environment (Wiggington, 2018). PESTEL term projects six key factors which has been
discussed below;
Political factors: These factors affect to Amazon in the market place, because no matters
company run in which market place, because it always has required to follow all guidelines and
rules & regulations which has formulated by the local government. For example; these factors
affect to company for fulfilling the obligation of taxation.
Economic factors: Economic factors also influences to business operations of Amazon, because
it highly grows in only such countries which has well-developed economic conditions. For
example; the UK’s current economy is facing a little slowdown, in which this factor can affect
business in negative way.
Social factors: Currently the UK’s social factors are positively affecting to Amazon, because
most people here like to buy products and services only from such ventures which provides
quality services, and there is Amazon has already provided many quality products and services.

Technological factors: These factors will give opportunity to the business for improving its
productivity and performance in the market place. For example; digital marketing tool is also a
part of technological factors, so this marketing tool can add very higher value in the workplace
of Amazon.
Environmental factors: Upper management of business have to avoid conduct such business
practices which can negatively affect to natural environment (Abramson and Moran, 2017).
These factors encourage to Amazon for working in the welfare of nature.
Legal factors: Currently Amazon serves in many countries, in which these factors affect to
business for adhering law and standards all nations where currently it operates own products and
services.
Evaluation of the impact of changes in PESTEL factors
Different factors inside the PESTLE highly affects to strengths, weaknesses, threats and
opportunities of a business, and this is why upper management of Amazon have to systematically
manage each change of the PESTLE factors in own workplace. For example; political factors
influence to Amazon for fulfilling the obligation of taxation, in which this factor become threat
to company in many countries, because currently many of countries has imposed very high
taxation rates on different MNCs. However, there are well-developed economic conditions of a
country gives great opportunity to Amazon for gaining huge profit margins in the market place.
On the other side, if any upper management of business run its business operations in such
countries which has ineffective economic conditions, then this economic factor will become a
threat to Amazon, because it cannot achieve appropriate profit margins in countries which has
un-developed economy.
Upper management of Amazon always tries to make changes in its internal factors on the
basis of the impact of external factors (Franzolin, Garcia and Bizzo, 2020). For example;
currently Amazon is the most reputed and leading e-commerce brand in across the world, and
also has the largest customer base, so these are two key strengths of business. The management
of company have to use its strengths to overcome threats and weaknesses. For example;
company is not able to run its business operations in such marketplaces where local people not
know about how to use technological gadgets and tools, and this a weakness of Amazon. In this

situation, it should use fund to run different campaigns for motivating and encouraging people in
order to use technological gadgets and tools. At the end, Amazon will overcome its weakness
when almost all people know about how to use official app and website of Amazon. On the other
side, high competition in the global e-commerce industry is the main threat to company, so now
it has opportunity to use own effective brand value for influencing different customers to order
products and services online only from Amazon.com. The management of company also has
opportunity to use digital marketing strategy in very effective manner for dealing with current
threat of high market competition.
Styles and leadership
There are different types of leadership styles available in the market place, in which
upper management of each business have to take steps towards using various styles of
leadership, because it is very important to effectively lead different people in the workplace
(Ioris, 2020). Some major leadership styles have been discussed below with current leadership
and management style of Amazon’s upper management.
Servant leadership style
This is the first type of leadership style that is currently used by different people or
manager of ventures in the market place. Basically, this style of leadership teaches leaders and
managers of business about how to play a very productive role in the workplace to own
workforce. It motivates leaders for leading people by serving own very effective services, it
encourages to act like a servant in daily operations to take essential work from all employees as
well as team members.
Coaching leadership style
Coaching leadership style also gives great opportunity to managers and leaders of various
organisations for systematically leading their people by providing them proper coaching and
training. Basically, this style of leadership encourages leaders for offering some productive
coaching sessions to own employees, in which these sessions can help various employees for
improving their workability and capacity of efforts (Bennett and et.al., 2019). Currently there are
many successful business men has adopted this style of leadership for gaining better outcomes in
current highly competitive market place.

Bureaucratic style
This another major style of leadership that contributes in gaining a productive as well as
effective team in the workplace. In this dynamic world, many of people like to work as
employees only under the leaders who has used bureaucratic style of leadership. Basically, this
style is also considered as servant leadership, because when a person or leader adopts this style,
then its values of serving will be automatically improved. Currently upper management at
Amazon also knows about the importance of this style, and this is why it has used this style in
daily operations, when it is required.
These all are some major styles of leadership, in which upper management of a business
have to consider its daily operations. With the support of these styles, many of leaders gains very
positive outcomes in the market place.
Current leadership and management style at Amazon
Top-level manager or CEO of Amazon Mr. Jeff Bezos currently knows about the role of
leadership and management styles, and this is why it has used different styles of leadership and
management in its daily operations, it means he considers almost all-important styles in
workplace according to the requirement of the workplace (Koçak, 2019). However,
transformational management or leadership style is highly used by Mr. Bezos in its daily
operations, because this style of leadership helps in transforming own attributes and characters
on the basis of existing workplace situations. For example; when an employee does any mistake,
then he turns own behaviour as punisher, when employees performs very well in the workplace,
then he appreciates them, when employees requires for proper guidelines and ways of working,
then he became a coach. These are some main reason that why transformational leadership style
of very essential to the management or CEO of Amazon.
Suitable leadership style that will match the management style
Currently the transformational style of leadership has been used by upper management of
Amazon, and it is excellent thing, but it can be recommended that the management of company
should focus on using the coaching leadership also within its workplace, because it is a very
productive alternative option of leadership style. Basically, the coaching style of leadership
enables to managers and leaders of an organisation for being a coach to its different employees

and team members. There are always many factors exists inside the business environment of a
company, and these factors highly affects to employees in both ways, positively and negatively.
In this situation, coaching style helps leaders for teaching all employees about how to deal with
impacts of different factors (Hamid, 2019). In this dynamic world, each employee like to work
under the command of such leaders or managers who has followed the concept of coaching style
of leadership, because this style of leadership gives great growth opportunities to different
employees in workplace.
Coaching leadership style is very suitable for the management of Amazon, and it will
definitely match their management style, because the task of coaching is the part of managerial
function. This style will give opportunity to Amazon for highly growing in current highly
competitive market place. The main role of this style is to provide an excellent workforce to a
business, and with the support of this attribute, upper management of Amazon will be able to
gain huge competitive advantage in market place. Currently eBay and Alibaba give tough
competition to company, because they have large number of skilled and talented employees, in
which when upper management of existing business will use coaching style of leadership, then it
will be able gain many skilled and talented employees in own daily business operations.
Responsibility, obligations and response in their ethics and social responsibilities
A business or a company has always required fulfil different responsibilities, obligations
and response as well in their ethics and social responsibilities. In this situation, upper
management of Amazon also fully aware about the impact of various responsibilities and
obligations in different market places where it currently operates its business operations. This is
why the management always conducts such practices and activities in own business environment
which contributes in fulfilling social ad ethical responsibilities in the market place. For example;
Amazon runs different NGOs and foundations which totally works in the welfare of society. It
has provided huge funds also to governments of different countries for offering medical, college,
school services to local people (Moss, 2019). On the other side, CEO of company Mr. Bezos
works in the industry for the long time period, and this is why he knows the value of business
ethics, and that’s why currently this e-commerce company follows all ethical and legal
considerations within its workplace. Due to these attributes or traits of Amazon, currently there
are many of people very like to business in market place.

According to Mr. Jeff Bezos, business ethics gives opportunity to different business men
and women for ethically formed their ventures in the market place. On the other side, ethics
provides an effective framework to ventures for formulating a healthy society. Unethical
business practices always make a country’s business environment very ineffective, in which
upper management of Amazon always tries to fulfil its each response, responsibility or obligation
which has based on the business ethics and social responsibility. There is the concept of CSR
(Corporate Social Responsibility) always helps a business for doing such activities in the
workplace, which can very positively affect to people in the society (Muenjohn and McMurray,
2018). According to different business experts, when a business generates high employment
opportunities in market place, then it will indirectly work in fulfilling its CSR obligation,
because after gaining employment opportunities, people will be able to improve their living
standard.
Business ethics says, each business or company have to offer quality products and
services to people or customers in the market place, because it is very important in the terms of
making customers satisfied. Upper management of Amazon fully knows about this fact, and this
is why it has used different approaches of operations management within own workplace, like;
TQM, JIT etc.in order to maintain an excellent quality of its different products and services. On
the other side, currently climate change is very serious issue, and this is why upper management
at Amazon has taken steps towards reducing the negatively impact of climate change. Basically,
machines, vehicles and industries which releases very harmful gages and smoke are main reason
behind the climate change, in which Amazon now started to use electronic vehicles for
delivering its different products and services. In this situation, by using electronic vehicles in
daily operations to reduce the pollution is the best step of Amazon in order to fulfil its obligation
of corporate social responsibility (Ferdowsian, 2016). Basically, when pollution become reduced,
then the issue of climate change also can be controlled in the future. These all practices and
operations has conducted by Amazon’s upper management for fulfilling its social and ethical
obligations, responses and responsibilities.
Reflection
Recently I have completed a report on the topic of leadership and business environment,
and this report has added very positive value in my personal. For example; currently I have

proper knowledge about the impact of a leader in the workplace. after completing this report,
now I know how different factors of business environment affects daily practices of a venture. I
have learnt that, Amazon is the leading e-commerce business right now, because it has succeeded
in highly expanding own business operations in the market place. While completing this report, I
was enabled to know that currently there are many types of frameworks and tools simply
available in the market place which upper management of a venture can use for knowing about
impact of the internal and external factors of the business environment. For example; there is
PESTLE analytical tool is highly used by many companies and businesses for identifying key
external factors of business environment (Berg and Knights, 2019). On the other side, I have
learnt that currently there are different types of leadership styles also simply available in the
market place which follows by many business leaders and managers. I have learnt, CEO of
Amazon Mr. Jeff Bezos also uses different types of leadership styles in his daily operations for
improving its productivity and performance of the business.
I have learnt that, currently upper management of Amazon main uses transformational
style of leadership, but it needs to focus on using coaching style of leadership as well, because
coaching style is one of suitable leadership styles which will help business for gaining huge
competitive advantage in the market place. This report work made me learnt that when upper
management at an organisation uses coaching style of leadership., then it will be able to teach
and train its different employees in workplace (Hynes and Mickahail, 2019). In this situation,
after gaining appropriate knowledge, learning and training from the leader or manager of
business, employees will be able to improve their workability, knowledge and competences in
the workplace. With the support of this report work, I have enabled to know that, Amazon
conducts different activities in own business operations for fulfilling its ethical and social
responsibilities and obligations.
CONCLUSION
It can be concluded that there are business environment represents that environment or
zone which gives opportunity to a person conducting town business operations as well as
activities. In this dynamic world, most businesses put their huge efforts for developing their
leadership aspects, because it is very necessary to stand against the high competition of the

market. It can be also concluded that Amazon’s upper management has an excellent leadership
style that contributes in properly leading different people in the workplace. On the other side,
there are many factors affects to business operations of company, so the management have to
make a specific plan to systematically deal with impacts of all factors. It can be also concluded
that, Amazon has highly required to fulfil its ethical and social obligations and responsibilities to
increase its brand value in the market.

REFERENCES
Books & Journals
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factors of innovation in businesses participating in the Local Innovation Agents
program in Rondônia (Amazon, Brazil). RAI Revista de Administração e
Inovação. 14(4). pp.290-300.
Wiggington, D. K., 2018. Amazon: David Becomes Goliath.
Abramson, N. R. and Moran, R. T., 2017. Managing Cultural Differences: Global Leadership
for the 21st Century. Routledge.
Franzolin, F., Garcia, P. S. and Bizzo, N., 2020. Amazon conservation and students’ interests for
biodiversity: The need to boost science education in Brazil. Science advances. 6(35).
p.eabb0110.
Ioris, A. A. R., 2020. Frontier Making in the Amazon: Economic, Political and Socioecological
Conversion. Springer Nature.
Bennett, A., and et.al., 2019. Smallholder oil palm production in the Peruvian Amazon:
Rethinking the promise of associations and partnerships for economically sustainable
livelihoods. Frontiers in Forests and Global Change. 2. p.14.
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Sustainable Competitive Advantage in the VUCA World. J. Hum. Resour. Manag.
Labor Stud. 7. pp.1-4.
Moss, G., 2019. Inclusive leadership. Routledge.
Muenjohn, N. and McMurray, A., 2018. LEADERSHIP AND DECISION
MAKING. Leadership: Regional and Global Perspectives. p.379.
Ferdowsian, M. C., 2016. Total business excellence–a new management model for
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Management.
Berg, N. and Knights, M., 2019. Amazon: how the world’s most relentless retailer will continue
to revolutionize commerce. Kogan Page Publishers.
Hynes, R. and Mickahail, B. K., 2019. Leadership, culture, and innovation. In Effective and
creative leadership in diverse workforces. (pp. 65-99). Palgrave Macmillan, Cham.
Hutchinson, K., 2017. Leadership and small business: The power of stories. Springer.