Context of Business: Leadership and Business Environment Case Study

This case study examines Amazon's leadership and business environment, focusing on its strengths, weaknesses, opportunities, and threats (SWOT) and political, economic, social, technological, legal, and environmental (PESTLE) factors. It analyzes different leadership styles, particularly transformational and democratic approaches, and assesses their suitability for Amazon's growth. The study also explores Amazon's ethical responsibilities, including corporate social responsibility (CSR) policies and ethical practices. The analysis includes the impact of PESTLE factors on business opportunities and threats. The study concludes with reflections on the company's leadership and its ability to adapt to changing market conditions. This assignment provides a comprehensive overview of Amazon's strategic choices and their implications for its long-term success. The case study explores different leadership styles, including autocratic, transformational, democratic, and laissez-faire, and recommends a democratic approach for Amazon's continued growth. Ethical considerations, including CSR policies and unethical practices such as worker exploitation and tax avoidance, are also addressed. The study concludes with a reflection on the company's ability to navigate challenges and maintain its brand image.

Leadership and business
environment- case study

Table of Contents
INTRODUCTION...........................................................................................................................1
SWOT and Pestel analysis of Amazon...................................................................................1
Evaluate the changes in Pestle factor influence opportunities and threat of a business.........3
Different style of leadership...................................................................................................3
Suitable leadership style that support Amazon to grow.........................................................5
Responsibility, response and obligation in their ethics..........................................................5
Reflection...............................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
To stay ahead in the competition it is necessary for the company to have effective
leadership style that promote business to improve the overall performance. In the same way,
current study is based upon case study of Amazon which is deal in online platform and offer
range of products. The study will conduct situational analysis of a firm and then provide detail
of different leadership style which is used by the company. Moreover, the study will comment
on responsibility, response and obligation in their ethics and social responsibilities.
SWOT and Pestel analysis of Amazon
SWOT analysis is used to examine the internal performance of the company. So it is as
mentioned below:
Strength:
 Amazon has a brand image and name.
 Customer oriented company which offer range of innovative products.
 Uses cost leadership as a pricing strategy to attract customer.
 Large number of acquisition, and considered as a market leader
 Superior logistic and distribution channel (Moro Visconti, 2016).
 Strong leadership style that helps to survive from “dot-com” bubble burst, 2001.
Weakness:
 Loss margin in few areas that affect the financial performance.
 Its Fire Phone's launch in US is fail
 Decline in consumer safety.
 Over dependence on distributor
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Opportunities:
 May expand its physical store
 improve its technological measure.
 More acquisition in e-commerce is another opportunity for a company
 May implement self-driven technology (SWOT analysis of Amazon.,2020).
Threats:
 Fluctuation in laws affect the business performance
 Strong competition
 Face products and economic recession
PESTLE analysis is used to determine the external environment and factor that affect the macro
environment of business. These is as mentioned below:
Political factor Political stability of the country affect the business in positive manner,
whereas fluctuation in the taxation may lead to cause negative impact
upon financial performance. It is so because business has complete
government support.
Economic factor Sudden fluctuation within the economy of the country affect the business
such that due to inflation rate, customer did not spend amount on their
purchasing and this in turn affect the profitability of a company. So
Amazon should make strategy to cope up with the problem and improve
business performance.
Social Factor Sudden change in the perception of customers will also affect the business
in negative manner. Though company offer door step delivery to their
customers and a s they prefer to purchase online product will help to
move the company towards positive direction.
Technological
factor
There is a rapid change in the technology factor and Amazon also uses
different innovative product that helps to improve the efficiency of a
business. While increase in cybercrime is also affected the business in
negative manner (Pestle analysis of Amazon, 2020).
Legal factor Amazon make sure that it comply with all the legal laws in order to
improve its business operations. Such that Employment law, Equal
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opportunity act that provide positive working environment to the
employees.
Environment
factor
Amazon keep comply with the sustainability act in which it is make sure
to use material which do not cause any negative impact upon business.
Also, it increase the popularity of a low carbon lifestyle.
Evaluate the changes in Pestle factor influence opportunities and threat of a business
Through the macro environment factor it is analyzed that company develop policies and
strategies that assist the firm to meet the opportunities. Such that by implementing advance
technology within a company will help the business to generate an opportunity that assist a firm
to cope up with many problem. Apart from this, social factor is also interrelated with the
people's point of view and that is why, Amazon keep trying to meet the need and offer same
product to them as well (Huertas-Valdivia, Gallego-Burín and Lloréns-Montes, 2019.).
Moreover, it is analyzed that due to sudden change in the economy of a country, company start
offering product at low rate and this in turn helps to balance the overall product line. Further it
will help to stay ahead in the competition and this in turn improve the overall business brand
image as well.
In addition to this, it is also analyzed that having a strong leadership style of a company,
it is analyzed that company is easily expand the business at different country which in turn
improve the productivity as well as profitability. Also, every country have their own rules and
regulation and that is why, Amazon should comply with the same that helps to improve the
business operations in better manner. For example, quoted firm is deal in online business and
having a brand image along with good financial performance will assist the company to establish
the physical store in different countries. This in turn help to generate best outcomes which
further take a business at further level of success too.
Amazon has a brand image and as it operate in different countries, so its weakness
clearly reflect that company lower down its performance due to offering wrong products that
affect the brand image. Therefore, it is necessary for the firm to minimize the negative
controversies because it may affect the purchasing decision of customers which directly affect
the financial performance as well.
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Different style of leadership
Leadership style promote the business towards positive direction and in the same way,
company's CEO also uses the same which helps to encourage employees to meet the set target.
There are different leadership style used by the such that:
Autocratic style: In this, leaders make decision without involving others and even
employees are not considered nor consultant prior. This type is actually not appropriate for all
the situation, but it somehow helps to specific situations only (Choi,, Kim and Kang, 2017).
Hence, only leader have a great power to operate the situation and make decision for the welfare
of a company.
Transformational leadership style:The leader who follows this style are always motivate
and inspire their employees that helps to bring into a business towards innovative manner. This
style relies upon better workplace communication and also provide an excellent way to engage
workers. Therefore, it is analyzed that company is using this leadership style which in turn
improve the employee input and raise the career development opportunities as well (Different
leadership style, 2020).
Democratic style: One of the most common leadership style which is followed by
majority of the employees. In this type, leaders involve all the employees in decision making
process that helps to exchange their views and provide a valid results. This style actually
promotes empowerment, creativity and participation that helps to satisfy the employees.
Laissez-Faire style: This style actually provide freedom of work to employees because it
rejects micromanagement and allow employee to work as per their flexibility. This in turn
creates negative working environment in which overall working culture got affected (Khan and
Nawaz, 2016). That is why, it is not used by the firm because it leads to wrong results as well.
Among all, Jeff Bezos uses tranformational leadership style in which he commit to their
followers a well as leader to manage the work accordingly. In this, the founder always make sure
to keep complying with different changes that helps to move the business towards positive
direction. Such that he uses culture change in order to drive management and also communicates
powerful about the future along with developing a road map. This is clearly indicate that
company's founder uses strong leadership style in which they keep taking feedback from the
employees in order to identify the loopholes of a firm. Also this leadership style force better
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communication that helps to deliver the better results and that is why, company is able to sustain
the brand image.
In the context of management style, the founder of Amazon also make sure to transform
the company and always looked for different ways in order to become innovative which in turn
provide a better product to their customers (Łukowski, 2017). Therefore, through effective
leadership and management style, company is trying to opt different opportunities that assist to
meet the define aim and sustain brand image of a firm at different level. This is possible when
the company's leader uses effective leadership style, then company is able to manage the work
and improve the brand image of a firm as well.
Suitable leadership style that support Amazon to grow
It is identified that founder of Amazon uses transformational leadership style which helps
the business to survive in the complex situation. But to grow business in more better manner, it
is suggested to use democratic leadership style in which all employees share their views and
present the best possible decision which in turn help to improve the job satisfaction. Therefore, it
brings more viewpoint and allow each and every member of a company to take participate in
order to solve the problem. This further helps to build team relationships, along with job
satisfaction. As Amazon have already a strong and clear vision which means, company's leader
are focused and develop strategy to attain the define aim. Therefore it is analyzed that with the
help of such leadership style, company is able to generate different ways to improve the business
performance (Gandolfi and Stone, 2017).
In addition to this, company already have a brand image which means that business is
able to meet the define aim. Also, by complying with democratic leadership style, quoted
business is able to solve the complex situation and also improve the business operations. Though
leader of Amazon is already uses effective leadership style that assist to grab many opportunities
which in turn improve the brand image of a company along with financial performance
(Ferreira, Jalali and Ferreira, 2018). However, on the critically note it is also analyzed that in
top multinational companies there are many situations, where leader has to make decision alone
and this in turn affect the results, if they involve in decision making process. But instead of other
leadership style, it is recommended to the company to use democratic leadership which helps to
improve the communication as well as encourage group to attain the define aim.
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Responsibility, response and obligation in their ethics
Amazon have its own CSR policies that helps to let people know about its different
activities for the welfare of a society. Such that Amazon device donation program facilitates the
donation of electronic devices and also gifts cards to school which are located near the location.
Moreover, the company's program “pay to quit” also offer UDS 5000 for the warehouse workers
who actually quit to encourage employees to take moment in order to generate the best outcome
(Turyakira, 2018). This is clearly reflected that the company has a strong brand image and the
employees working within a firm also understand their responsibilities as well as obligation by
complying with ethical principles so that it will not cause any negative impact upon the business.
In addition to this, quoted firm also promotes safe and healthy workplace in which
premises is free from harassment and danger so that it promote the freedom for employees in
order to perform their duties. Also, company perform some unethical practices as well such that
worker exploitation and tax dodging that are also consider the unethical business practices that
affect the overall performance of a business in adverse manner. Beside this, some of the fake
products are also consider unethical practices within a business and this in turn creates negative
impact upon the business which needs to be improved (Navalta, Stone and Lyons, 2019).
Hence, during bubble burst, it is also analyzed that company's leader effective cope up with the
challenge and that is why, it is the only firm who survived during the situation by responding
properly.
Reflection
My overall experience of writing this report is very good where I learn many things
along with improving the knowledge. Such that the report is based upon the case study of
Amazon and as the company has a brand image and that is why, it is easy to research on the
topic.
Through the research, I analyzed that I enhance my knowledge with regards to
theoretical concepts. Such that earlier I am aware with theoretical aspects but the research
provide me an opportunity to conduct research and apply the same on practical examples. This
in turn helps me to raise my research skills which in turn help me to improve the overall working
performance. In addition to this, I further analyzed that I also uses different concept and models
such that SWOT, Pestle practically. Through this, I analyzed that this factor assist me to gain
knowledge with regards to micro and macro environment factor that somehow affect the
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business in both positive and negative manner. Beside this, I also uses range of leadership styles
which assist me to improve the knowledge and thinking with regards to leadership and their
importance in the daily life. While conducting the research, I analyzed that leadership plays an
important role in the success of a company and through appropriate leadership style, company
improve the brand image at global level.
As the overall experience of writing the report and research is good because it provide
me an opportunity to raise my interpersonal skills that helps me in my near future. There are
some limitation of the study such that there are many sites which are access denied and that is
why, I am not able to get access of the same which somehow affect the results in opposite
manner. Further, this takes a lot of time and somehow creates negative impact upon the results
as well. The entire report I based upon the secondary research and that is why, it helps me to
improve the research skills and gain knowledge about some unethical practices performed by the
company which directly creates negative impact upon business brand image. Therefore, I learn
many concepts related to leadership and benefits of applying different leadership style within a
business as per the situation need. Earlier I do not have a deep knowledge about these terms but
the present research provide me an opportunity t conduct the results in effective manner manner
that helps to raise the knowledge as well.
Overall, Amazon uses different models and technique that helps the firm to improve the
brand image and attract the customers as well. This is shows from the secondary research in
which it is mentioned that it is the only company which is survived in 2001 during bubble burst
and that is because of strong leadership style opted by Jeff, founder of quoted firm.
CONCLUSION
By summing up above report it has been concluded that Amazon offers high quality
product to their customers and that is why, it sustain the brand image at international level.
Through swot analysis it is also concluded that company's promotional strategy is effective such
that it helps to attract range of customers. Also, study concluded that Jeff uses transformational
leadership style and tries to solve many complex problem that may affect the business in
opposite manner. Moreover, it is also recommended to the company to use democratic
leadership style and it keep comply with ethics so that its business operations do not affected.
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REFERENCES
Books and Journals
Choi, S.B., Kim, K. and Kang, S.W., 2017. Effects of transformational and shared leadership
styles on employees' perception of team effectiveness. Social Behavior and Personality:
an international journal.45(3). pp.377-386.
Ferreira, J.J., Jalali, M.S. and Ferreira, F.A., 2018. Enhancing the decision-making virtuous
cycle of ethical banking practices using the Choquet integral. Journal of Business
Research. 88. pp.492-497.
Gandolfi, F. and Stone, S., 2017. The emergence of leadership styles: A clarified
categorization. Revista De Management Comparat International.18(1). p.18.
Huertas-Valdivia, I., Gallego-Burín, A.R. and Lloréns-Montes, F.J., 2019. Effects of different
leadership styles on hospitality workers. Tourism management. 71. pp.402-420.
Khan, I. and Nawaz, A., 2016. The leadership styles and the employees performance: A
review. Gomal University Journal of Research [GUJR].32(2). pp.144-150.
Łukowski, W., 2017. The impact of leadership styles on innovation management. Marketing of
Scientific and Research Organizations.24(2). pp.105-136.
Moro Visconti, R., 2016. Healthcare public-private partnerships in Italy: assessing risk sharing
and governance issues with PESTLE and SWOT analysis. Corporate Ownership and
Control.13(4).
Navalta, J.W., Stone, W.J. and Lyons, S., 2019. Ethical issues relating to scientific discovery in
exercise science. International Journal of Exercise Science.12(1). p.1.
Turyakira, P.K., 2018. Ethical practices of small and medium-sized enterprises in developing
countries: Literature analysis. South African Journal of Economic and Management
Sciences.21(1). pp.1-7.
Online
SWOT analysis of Amazon. 2020. [Online]. Available through: <.https://bstrategyhub.com/swot-
analysis-of-amazon-amazon-swot/>
Different leadership style, 2020. [Online]. Available through:
<https://www.americanexpress.com/en-us/business/trends-and-insights/articles/the-7-
most-common-leadership-styles-and-how-to-find-your-own/>.
Pestle analysis of Amazon. 2020. [Online]. Available through: <https://pestleanalysis.com/pest-
analysis-of-eretail-leader-amazon/>.
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