BABS Foundation: Leadership and Business Environment - Amazon Report

This report provides a comprehensive analysis of Amazon's leadership and business environment. It begins with an introduction highlighting the significance of leadership and the business environment, followed by SWOT and PESTLE analyses to identify Amazon's strengths, weaknesses, opportunities, and threats, along with political, economic, sociological, technological, environmental, and legal factors. The report then examines various leadership styles, comparing and contrasting them, and identifies the transformational leadership style as currently employed by Amazon. It argues for the suitability of a democratic leadership style for Amazon, emphasizing its benefits in terms of employee involvement and long-term goal alignment. The report also explores Amazon's social and ethical responsibilities, discussing its obligations, responses, and responsibilities. Finally, it includes a reflection on the writing process and the practical application of the theories discussed, concluding with a summary of the findings and a list of references.

Leadership and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
1.Swot and Pestle Analysis for Amazon.....................................................................................3
2.The changes in Pestle factors affects the business in the following ways:.............................4
3.The various leadership styles and their comparison and contraction. The leadership and
management style that Amazon follow currently.......................................................................5
4.The leadership style that suits the Amazon and their management that help them to grow
further .........................................................................................................................................6
5. The obligations, response, and the responsibility in their social or ethics responsibilities in
the processes at Amazon.............................................................................................................8
6.The reflection report of my experience in writing this report and the advantages in applying
the theories to the practical framework of Amazon....................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Leadership plays a significant role in achieving organisational goals. Leaders guide, inspire
and lead an individual, group or whole organisation. Business environment includes all internal
factors (management, finances, processes, etc.) and external factors (social, political, economic,
legal, etc.) which affects business ability. The report is prepared in the context of Amazon. In
this report swot and pestle analysis is done for Amazon with different leadership style used by
Amazon. The responsibilities, response and obligations of Amazon in their ethic and social
responsibilities is also discussed. In present scenario of Covid-19 crisis, amazon used so many
opportunities in becoming a trillion-dollar company.
1.Swot and Pestle Analysis for Amazon
Swot analysis: It is a technique of strategic planning which helps in identifying strengths,
weakness, opportunity and threats of the company. Strengths and weakness are the internal
factors of the organisation whereas opportunities and threats are external factors.
Strengths of amazon are strong market share, diversification in other business lines like artificial
intelligence, cloud computing, etc., strong brand image and the great supply chain. (Majed,
Nuraddin, and Hama, 2018)
Weakness of amazon are- employees demanding better health protection while working in the
warehouses, focusing more on quality which leads to the shift of customers to other platforms.
Opportunities of Amazon are- introducing a new podcast service, increasing the Amazon
delivery network, introducing latest amazon fresh offers, opening a new venture in food industry.
Threats of Amazon are- competition by other e-commerce platforms, government regulations,
lack of accountability and supervision, rise in wealth disparity and rapid technological changes.
Pestle Analysis of Amazon

Pestle analysis- Pestle analysis is the analysis which is done for major key factors like
political, economic, sociological, technological, legal and environmental.
Political factors affecting Amazon are government rules and regulations, government support for
running e- commerce business, developed countries political stability.
Economic factors that affects Amazon are rise in disposable income of countries that are
developing, developed market economic stability.
Sociological factors affecting Amazon are- increase in wealth disparity, which is one of the
threat for the company, consumers online buying habits is increasing.
Technological factors affecting Amazon are- obsolescence of technology rapidly, IT resources
efficiency are increasing, cybercrime rates are also increasing.
Environmental factors affecting Amazon are- environmental protection interest rates are
rising, emphasis on business sustainability is rising.
Legal factors affecting Amazon- change in import and export regulations, environmental
protection regulations are rising for business.
2.The changes in Pestle factors affects the business in the following ways:
Political factors include the various laws made by government for e-commerce industry, which
majorly affect the working of business. (Matovic, 2020) The political stability of other countries
is the condition which creates an opportunity for Amazon to diversify its business operations in
developed countries. Amazon is facing competition from its rival firms, which is a threat for
them but they are getting an overall support from the government, which acts as an opportunity.
Economic factors have consumer’s disposable income which is rising and it the biggest
opportunity for Amazon. Rise in consumer’s disposable income will result in increase in
consumers spending, they will shop more for themselves and of their own choice and tastes.
Sociological factors can impact the Amazon both negatively and positively, because it includes
trends and behaviour, tastes and preferences of the consumers. (D'Agostino, 2018) Amazon can
make people lazy, by ordering everything online like food, groceries, clothes, live music at your
place, electronic gadgets, etc. Staying at home and sitting idle will causes health issues to adults
and children. It is one of the threat for threats but it an advantage for old people who can’t walk
out and purchase things on their own, can order online via Amazon, which acts as a strength of
Amazon. The rise in disposable income of consumers will increase the revenue of the Amazon

Technological factors are one of the major important role player in success of Amazon, it is the
backbone of the company. Amazon is using vast technologies to satisfy their customers. Updated
and large technology are strengths of the Amazon. Amazon also introduced new delivery system,
it delivers packages to the consumers by drone which is also known as unnamed Aerial vehicle.
(Yoo, Yu, and Jung, 2018). The rapid changes in technology is threat to the Amazon but they
have huge IT team and resources which helps in coping up the changes that takes place.
Environmental factors: - Amazon interests are rising in environmental protection, which acts
an opportunity, they are focusing on waste management strategies and less energy consumption,
this will increase the reputation of the organisation and improves its strengths. This will also
enhance the corporate social responsibility of Amazon. (Goel, and et.al. 2020). The brand image
of Amazon is increased by following appropriate corporate social responsibility policies that
states increase in environmental protection regulations.
Legal factors: - Amazon has different rules and regulations. There are various legal factors that
affects the working of Amazon. Some of them are- antitrust laws, consumer protection laws, data
protection laws, laws related to ecommerce business.
There are some Consumer Privacy Acts enabled which is the threats for Amazon. These acts
imposed that what type of data Amazon is collecting from their consumers and how it is using it
and sharing it. The Amazon tries to follow all the rules and regulations given in the various Acts
and policies which then become the strengths of Amazon, by running coming legally and
ethically.
3.The various leadership styles and their comparison and contraction. The leadership and
management style that Amazon follow currently.
Leadership is a common practice that command group of people and should be followed in every
organisation. Leader is consider as role modal for all the employees. Lets discuss more in detail
about the styles of leadership in below paragraph -
Democratic –the leader form the decision on the basis of input of the member. This styles allows
the lower or middle level employees to perform authority although they need to hold this power
wisely in order to achieve the future positions they might hold (Choi,Kim and Kang,, 2017) . For
instance-a democratic leader might give some decision related options and then discuss about

each option. Later, the leader might take the board opinions and their feedback into
consideration.
Autocratic – the leader who follow this method does not take input of the member before
making any decisions. Employees are just expected to follow the decisions at a time set down by
the autocratic leader. A perfect example of this might be when a manager changes the shift hours
without even consulting any employees and their preferences.
Transformational – the leader constantly changing or transforming the decisions to improve the
company's protocol. Employees might assign the basic set of goals that they finish in the a month
or a week, therefore the transformational leader motivate them to complete those task.
In starting, the leader assign a list of goals to employees to perform with the deadlines (Essa and
Alattari,2019). Although the goals might seem easy at initial stage but at later stage, manager
give more complex or challenging goals as the company grows in future.
Strategic – this might consider most suitable form of leadership because its supports the thinking
of many employees at once (Cote, 2017). Although it can be set a dangerous example for the
strategic leader because with this way how may employees they support at once and what will be
the supervision of the organisation when everybody is getting their way all the times.
Strategic leader make the participation in the company's main functioning or their growth
opportunities as well and accepts the load of the executive interests while assure the working
conditions remain same for others.
The Amazon follows the transformational leader styles as its the most popular style to follow, it
leads the company into a new heights and shown a successful vision (Solanki, 2019). The
transformational leadership involves a strong or committed relationship between the leader and
his employees. The founder of the Amazon, Jeff Bezos has now managed to grow an huge
empire and operate one of the most successful companies in the world and now the company has
the over 565000 full-time employees. He is a leader who knows how to plan and deliver the
result with innovation and creativity.
4.The leadership style that suits the Amazon and their management that help them to grow
further
The democratic style or also know as participative or sharing style that best suitable for the
Amazon. It allows equal participation of decision making function in the management as a good

leader knows that it become hard to achieve the height of success without a productive or
effective workforce (Schein,2020). Even though that the leader or manager give the final word of
decision but they involve the equal input of the employee in their decision making process and
do consider their ways of ideas or innovation. Its the leadership style that anyone can adopts in
their organisation because the sharing of the information benefits the Amazon to succeed.
This styles helps in creating the maximum level of job satisfaction among the employees of
Amazon. As when the team knows that their decisions matter and they also have some power in
the decision making then it will not only give them the personal satisfaction but also boost their
morale. This process also derives the passion which automatically makes the improvement in the
quality or quantity of work. As the Amazon manages to expand its services or product every
year so its essential for every employees to understand the customer's experience and its
requirement and demand at the same time and it can only be achieved when the staff is
thoroughly involve in their work.
The Amazon always focuses on the long term goals or objectives as through this style it
become much convenient for everyone to see the actual direction or where the company is going.
Even when the management face the lack of coordination or some conflicts in the team but as far
as the aim of team is same, every member is working towards the benefit for the company
(Ryanand Turner 2020). It encourages an individual to examine and work on the more options,
creating a strong bond or further motivates them towards the future goals (Rivet, 2017). The
Amazon stresses on the fast delivery of the products, so its brings the efficiency within the
operations or accomplish the affordability for the buyers. Its also vital for the Amazon that how
the employees handle the consumers complaints and should be treated with carefully and provide
the apology note to make customers loyal.
Democratic leader most of the time make the most essential decisions on the basis of their
education background or with personal experiences and should keep their mind open because
their will be difference in the opinions every time. The leader at the end comes with very
authentic problem that need be resolve first as when the genuine issue is being implement than
the team member also feel that they should be more engaged with the process. This leadership
style create the level of equality in the management which is very crucial for the success of the
Amazon.

5. The obligations, response, and the responsibility in their social or ethics responsibilities in the
processes at Amazon
The social responsibility is form when the system of ethics is accomplished and the decisions are
only proceeding when it is ethically approved. It would be socially irresponsibility when the
action cause harm to the society and surroundings. The detail analyses of the responsibilities that
Amazon should posses-
Warehouse ethics - Amazon should maintain the warehouses and the employees that are
working in those warehouses while the Amazon did announce the that it would be raising the
wages for those workers . There are the multiple things done in the warehouse including the pick
and pack goods, transportation of the finished products etc. so the environment in which they
done its operation should be well maintained, must be electronically monitored and the
machinery and equipment need be pre-examined that they did not create any hurdle in the
running operations (Pope, S., and et.al 2018) . As in the UK, there are various warehouse where
are workers who face the anxiety and increased depression alongside harassment so this should
be maintain by the company beforehand.
Healthy and safe environment for white collar employees - Amazon promotes a safe
workplace for the workers which is free from any danger or problem. Its also provide the
e,employees to perform their duties with almost care and that is not hinders by any obstacles. In
Amazon the workers should be motivated to take part in the meetings and also sent the feedback
to their boss and those employees who are returning back from any serious injuries were put no
the performance improvement scheme and after that they all are monitored to make sure that
there focus is on their job.
Gig economy and drivers - Amazon uses the gig economy system which is necessary in
employment of its delivery driver and also refers as Amazon Flex. Just like the Uber, it also
become the source of the supplementary income but not suitable to make a living. Amazon
should follow the proper algorithms and do compensate the work of those drivers while Amazon
will pay for the driver if they deliver the products in less time estimated (Yazdanmehr,and Wang
2016) . Amazon should treat drivers as a independent contractors with providing the health care,
compensation plans if injured during the job process or other benefits.
Buyers or sellers – Amazon completely discourages those behaviours that are basically not in
the best interest of their employees including their suppliers or customers. The company should

be specific in their policies, if any customer search for something on their website than the price
shown should be uniform according to the products and should not exceed the minimum selling
price (Dignam, 2020). Amazon also launch the programme called the 'fulfilled by Amazon'
because of the increased competition occur in the marketplace and forced sellers to participate
and the fees for the programme is 10-15% of sales.
6.The reflection report of my experience in writing this report and the advantages in applying the
theories to the practical framework of Amazon.
In writing this report I will obtained the information regarding the Swot analysis in which the
strength, weaknesses, opportunities or threats examine. The strength analysis is useful as I can
reduce the chances of failure by go through the whole process in analysing where I am lacking
while eliminating those hazards. Through weaknesses, the chances of improvement increases and
what sort of practice should be avoided. The opportunities are the sign of arising new chances
and show that something positive is going to happen. So, should be thinking about those
opportunities that can be spotted constantly. By examine the thereat, the analysation that
something wrong or negative is going to happen so should be need to prepare in advance about
those problems. Moreover, thinking about the obstacle that might appear in future.
The Pestle analysis is useful tool in brainstorming the changes that is happening around. It helps
in the spot the best business where I have so many options available and also helps in scanning
the business environment while providing the warning threats in advanced. This is also very
beneficial in changing the opinions and shapes that what actually be done so that I work
according to that changes and not against it. Whenever entering in new country, market or place,
as the accidental assumption is automatically occur so it helps in the development of the
objective view of this fresh environment. If their any obstacles or hurdles issue arises than should
take appropriate action.
The leadership styles helps in understanding the various techniques of handling the people. Its
very easy to understand and even simple in implementing in real life. Its modal is very versatile
in nature and involves very authentic representation of how people actually work and can be
applied to not only examine the leader but also people in company, a project or even the whole
managerial process.

The social responsibilities or ethics is very essential function to follow. As through this,
accountable for the civic duty should be fulfilled and the action of this will definitely bring the
harmony in the whole society. If the social responsibilities is maintained than it will bring the
economic growth along with the welfare of the society and the degradation of the environment is
reduced.
CONCLUSION
It has been concluded that, the report go in detail about the Amazon company and explains the
Swot and Pestle analysis. The evaluation of the PESTLE factors and the influenced of its main
factor that is opportunities and threats of Amazon is critically explained. The report also
explained about the various leadership styles and overview of the management style that
Amazon is following. The recommendation of the leadership styles is also explained that actually
match the management style of the Amazon and assist the company to grow further. Further, the
report explain the ethical or social responsibility that the Amazon functions in their management.
Lastly, the other part of the report include the reflection of the overall report and the knowledge
it develop.

REFERENCES
Books and Journals
(Choi,Kim and Kang,, 2017) (Cote, 2017) (Essa and Alattari,2019) (Solanki, 2019)
(Schein, 2020) (Rivet, 2017) (Pope, S., and et.al 2018) (Yazdanmehr,and Wang 2016)
(Dignam, 2020) (Ryanand Turner 2020.)
Chen, M. and Sun, Y., 2017. Sentimental Analysis with Amazon Review Data.
Choi, S.B., Kim, K. and Kang, S.W., 2017. Effects of transformational and shared leadership
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Cote, R., 2017. Vision of effective leadership. Journal of Leadership, Accountability and
Ethics.14(4).
Dignam, A., 2020. Artificial intelligence, tech corporate governance and the public interest
regulatory response. Cambridge Journal of Regions, Economy and Society. 13(1). pp.37-
54.
Essa, E.B. and Alattari, A., 2019. The Relationship between Followership Styles and Leadership
Styles. Research in Educational Administration & Leadership.4(2).pp.407-449.
Goel, P., and et.al. 2020. Customer Experiences, Expectations and Satisfaction Level Towards
Services Provided by Amazon. International journal of Tourism and hospitality in Asia
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Majed, S. Z., Nuraddin, S. H. and Hama, S. V. S., 2018. Analyzing the amazon success
strategies. Journal of process management. New Technologies. 6(4. pp.65-69.
Matovic, I. M., 2020. PESTEL Analysis of External Environment as a Success Factor of Startup
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Pope, S., and et.al 2018. The pyramid of nonprofit responsibility: the institutionalization of
organizational responsibility across sectors. VOLUNTAS: International Journal of
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Rivet, D.J., 2017. Amazon's Superior Innovation: A Study of Amazon's corporate structure,
CEO, and reasons behind why it has become the most innovative company in today's
market.
Ryan, L. and Turner, T., 2020. Corporate social responsibility and independent employee
representation: an ethical contradiction?. Employee Relations: The International Journal.
Schein, A., 2020. Organisational ambidexterity, hard power management and smart power
management at Amazon, a case study. Global Business and Economics Review.22(1-2).
pp.27-40.
Solanki, K., 2019. ‘To what extent does Amazon. com, Inc success be accredited to its
organizational culture and ND Jeff Bezos's leadership style?. Archives of Business
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Yazdanmehr, A. and Wang, J., 2016. Employees' information security policy compliance: A
norm activation perspective. Decision Support Systems. 92. pp.36-46.

Yoo, W., Yu, E. and Jung, J., 2018. Drone delivery: Factors affecting the public’s attitude and
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