SHR017-2: Strategic HRM Context & Amazon's Best Practice Approach

This report provides a detailed analysis of Amazon's Human Resource Management (HRM) practices, examining both internal and external factors that influence organizational performance. It utilizes SWOT and STEEPL analyses to evaluate Amazon's strengths, weaknesses, opportunities, threats, and the impact of social, technological, economic, environmental, political, legal, and ethical factors. Furthermore, Porter's Five Forces model is applied to assess the competitive landscape. The report also explores key HR functions within Amazon, including recruitment, training, compensation, employee relations, and legal compliance, highlighting their impact on the company's success. The analysis concludes that Amazon's customer-centric approach and effective reward systems are critical for its global market leadership.

The Best Practice Approach

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
SWOT analysis............................................................................................................................1
STEEPL analysis.........................................................................................................................2
Porters five force of Amazon.......................................................................................................3
HR functions in different business context..................................................................................4
Critical analysis...........................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Human resource management is crucial part of business that will assist in effectively and
efficiently conducting organisational practices. It has been analysed that there are different
internal and external factors that will lead to affect functioning of business (Boyce, 2021). This
report is based on Amazon company. This is an American multinational technology company
that is performing its practices in cloud computing, E- commerce, Artificial intelligence and so
on. In this report internal and external factors has been analysed. porters five force model has
been identified in order to determine its impact. This report consist of different human resource
function that will affect organisational performance. Apart from this different factors associated
to business has been evaluated and analysed.
MAIN BODY
SWOT analysis
SWOT analysis in context of Amazon company is mention below –
 Strengths – Amazon company has very strong brand image that could be consider as its
major strength that will lead to enhance business practices. this company is considering
differentiation and innovation while conducting business practices that lead to increase
organisational performance. Amazon company is customer oriented that will lead to
attract more customers towards business.
 Weakness – There are different weakness of Amazon company which will lead to affect
its performance in market area. it has been analysed that easily imitable business model is
one of the weakness of respective company (Siswanto and et.al., 2021). This
organisation is losing margins in few areas that negatively impact over its sales. Product
flops and failure as well as declining customer safety is one of the crucial weakness that
influence organisational performance.
 Opportunities – There are different opportunities that is available to Amazon company
that will assist in improving business performance. Respective organisation needs to
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focus on expanding business operations in developing market for improving business
sales and profitability. Increase physical stores is also great opportunity for Amazon. By
considering safe driving technology Amazon company will be able to increase
performance in global market area.
 Threats – There are several threats that will lead to negatively affect functioning or
performance of respective company. it has been analysed that changes in government
rules and regulation of E commerce business will lead to have major impact on capability
of business.
STEEPL analysis
This is one of the effective model that is significant for planning marketing strategies for
business performance and productivity. STEEPLE stands for social, technological, economic,
environmental, political, legal and ethical. STEEPLE model in context of Amazon company is
mention below –
 Social factor – This factor includes social trends as well as perspective of customers
towards Brexit (Schleiter and Fleming, 2021). It is important for Amazon company to
consider online buying habits of customers in order to increase sales and profitability of
business.
 Technology factor – There are different new and innovative technology such as learning
management system, talent management software and social media platforms that will
lead to directly affect performance and functioning of business operations.
 Economic factor – This factor includes consumer spending capacity for the purchasing of
products and services offered by respective company. It has been analysed that high
customer spending will lead to increase sales or profitability of business.
 Environmental factor – This consist of different elements such as environmental
damages, volume of packaging and traffic related to emission. It is crucial for Amazon
company to consider environmental safety and protection while performing its practices.
 Political factor – This consist of government or political rules that affect functioning of
business. it has been analysed that government laws regarding E- commerce is the crucial
factor which influence business decision making.
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 Legal factor – There are different legal factors that needs to be consider by organisation
while performing practices such as health insurance portability and accountability act as
well as disabilities act. All of these should be collected followed by respective company
to attain desired goals.
 Ethical factor – It is crucial that ethical factors are consider by Amazon company for
accomplishing desired goals. This includes tax avoidance, exploitation of Chinese
workers, toxic environment for white collar workers.
Porters five force of Amazon
This is one of the effective model that is significant for providing information about different
forces of the industry. through this model it has been analysed that there are five major forces
that affect performance and functioning of business such as threat of new entrants, bargaining
power of buyers, bargaining power of suppliers, threat of substitute products or services,
competition of among rivals (van Nistelrooij, 2021). Impact of these forces of Amazon is
mention below in detail
 Threat of new entrants – Amazon is well established company that is providing its
products and services form many year. This company has developed its strong image in
market area due to which new entrant business will lead to have low impact.
 Bargaining power of buyers – There are different types of buyers of Amazon company
and this is customer oriented organisation. the bargaining power of buyers will have high
influence over organisation and its sales.
 Bargaining power of suppliers – there are large number of buyers that are providing raw
material and other resources to respective company. it has been analysed that Amazon
company is gaining supply form different suppliers due to which bargaining power of
suppliers is low.
 Threat of substitute products or services – This is one of the crucial forces that will lead
to affect performance of respective business (Moewaka Barnes and et.al., 2021). there
are different products and services in market area that could be consider as the threat of
substitute products and services. This force will lead to have high impact on organisation
and its practices.
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 Competition of among rivals – Amazon company is conducting business practices in high
competitive environment that will lead to higher the threat of rival companies. Online and
e- commerce marketing in growing with various strong organisation such as Ebay and so
on. due to this potential of Amazon company will be low and affect business decisions.
HR functions in different business context
There are different human resource function that will lead to affect overall performance
and productivity of respective organisation. It is essential that all human resource functions are
correctly and accurately performed in order to accomplish desired goals. Different HR function
in context of Amazon company is mention below in detail –
 Selection and recruitment – This is one of the crucial function of respective business and
in this Amazon HR team is recruiting employee from different sources with the motive of
selecting the most accurate employees. it is essential that selected employee is highly
skills to perform business practices and needs to be placed correctly.
 Training and development – In this function, Amazon company is providing training to
its employees with the motive of developing current skills as well as potential to conduct
organisational practices (Aquilina, 2021). It has been analysed that training and
development human resource function play important role for improving performance
and productivity level of respective company.
 Compensation management – It is important that right and accurate compensation is
provided to all employees. Amazon company is considering proper compensation
management system that will include salary and pays to employees as per the their work
and performance within organisation.
 Employee relationships – It is important that respective organisation have strong and
effective relationship with employees that is significant for performing business practices
in accurate manner. Human resource function is to develop effective relationship with
employees by resolving their problems as well as motivating them to conduct
organisational task successfully.
 Legal and ethical compliance – Human resource function has to perform different legal
and ethical compliances in order to correctly and ethically conducting business practices
(Bradbury, Mitchell and Thorn, 2021). It has been analysed that by performing this
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human resource function in appropriate and accurate manner respective firm is able to
smoothly and effectively conduct organisational task.
Critical analysis
It has been analysed that Amazon company is selling different types of products and
services in order to meet with the need and demand of customers. This organisation is selling
everything apart from animals, houses or cars. Amazon company is considering effective
rewards system for its employees such as private health package, health insurance, cover
bonuses, pension and so on. all of these are crucial for motivating employees. the main goals of
respective company HR and management team is to work together as well as find solution in
people sector so that issues could be timely resolved. It has been identified that crucial factor for
the success of Amazon company is its customer focused or obsession. This company is
conducting different practices in order to meet with the requirements of customers. Amazon is
one of the largest global company that is providing its products in worldwide market area.
CONCLUSION
From the above report it has been identified that SWOT analysis is effective for providing
internal information about capabilities of business. STEEPLE analysis will focus on evaluating
external factors of business. it is important to determine different forces that affect business
performance. There are different human resource function that will affect performance of
business.
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REFERENCES
Books and Journals
Boyce, R., 2021. Using organisation as a strategic resource to build identity and influence.
In Managing and Leading in the Allied Health Professions (pp. 85-99). Routledge.
Siswanto, J. and et.al., 2021. Identifying talent: public organisation with skewed performance
scores. Journal of Management Development.
Schleiter, P. and Fleming, T.G., 2021. International best practice and the Constitution,
Democracy and Rights Commission. The Political Quarterly, 92(1), pp.74-79.
van Nistelrooij, A., 2021. Beyond Organisation Development. In Embracing Organisational
Development and Change (pp. 129-167). Springer, Cham.
Moewaka Barnes, H., and et.al., 2021. Indigenous-led environmental research in Aotearoa New
Zealand: beyond a transdisciplinary model for best practice, empowerment and
action. AlterNative: An International Journal of Indigenous Peoples, p.11771801211019397.
Aquilina, E., 2021. Embodying Authenticity: A Somatic Path to Transforming Self, Team and
Organisation. Troubador Publishing Ltd.
Bradbury, T., Mitchell, R. and Thorn, K., 2021. Moving forward: business model solutions for
amateur sport clubs. Managing Sport and Leisure, 26(3), pp.189-205.
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