American multinational technological company

November 24, 2020

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Harleen Kaur –

Assessment 2 Topic 1

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I would like to work in Amazon company. which is an American multinational technological company founded by jeff bejas 26 years ago on 5th july 1994 . Amazon focuses on e-commerce, digital  streaming , cloud computing and Artificial intelligence.

 Location : Its headquarters are in Seattle, Washington, U.S ( housed in over 40 owned and leased buildings) spread throughout the neighbouring South Lake Union, Denny Triangle, and Downtown communities of Seattle.In Seattle’s Denny Triangle neighbourhood, Amazon is currently constructing a new four tower, four low-rise, complex to serve as the primary headquarters, although it will maintain several of the earlier purchased buildings to house its more than 45,000 Seattle area corporate employees.

Core product : Amazon offers more items than any person can count, but the true “core product” of the e-commerce giant is convenience, and how easily it can bring an order from the virtual shopping carts of consumers to their real-life doorsteps. The large network of fulfilment centres that are spread across the U.S. and shop and distribute goods to their final destinations is part of what makes it so convenient for Amazon to deliver two-day or even same-day delivery to consumers. Amazon, E. C. (2015)

Employees : In the United States andCanada, Amazon is hiring 133,000 new fulltime and part-time workers.Amazon’s hiring spree has been fuelled by the coronavirus pandemic, which causes customers to rely on e-commerce satisfaction.However, between 2016 and 2017, the company’s highest reported employee increase occurred.224,600 new full-time and part-time jobs were introduced by the e-commerce giant that year.

Amazon operates in : initially, this company was commenced as online marketplace for books but its expansion lead to the sale of furniture, electronics, software, video games, tools, toys, Jewellery, watches, garden items, musical instruments, sport goods, automotive items.Amazon.com has number of services available these are : Cloud, A. E. C. (2011).

Amazon fresh

Amazon prime

AlexaApp store

 Amazon studios

Amazon wireless

    Turnover : The U.S. retail industry had a turnover rate of 38.1 percent from March through August, seasonally adjusted, according to Bureau of Labor and Statistics data. The rate was 33% for the shipping, warehousing and service industries.Amazon UK Services: 2009-2018 turnover in the UK.In 201 8, Amazon UK Services Ltd recorded2.35 billion British pounds in turnover. The United Kingdom based company is responsible for the operation of the fulfilment centres of the e-commerce giant in the world. In each year between 2009 and 201 8, it increased its turnover, withestimates for the latter year being 21 times the amount seen in 2009.As of 201 9, the most valuable brand was Amazon.Annual turnover in the United Kingdom ( UK) of Amazon UK Services Ltd. from2009 to 2018 (GBP 1,000)

A Thousand GBP Turnover

2,345,057  (2018)

19,87.697 (2017)     

  1.462,0088 ( 2016)   . Phillips, O. L., Baker, T. R., Arroyo, L., Higuchi, N., Killeen, T. J., Laurance, W. F., … & Neill, D. A. (2004)

Outlet : Amazon Outlet is a section where surplus stock or excess inventory may be transferred by sellers. For many years, it has been on the e-commerce platform but is something of a secret, unknown gems.From cosmetics to home renovation, the products you can find in Amazon Outlet cover every genre. It’s a bit of a grab-bag, yes, but Amazon has to authorise all the items that sellers pass to the outlet.

.For just $45 on Amazon Outlet, one can find a 64-ounce Swell bottle, which is usually $55.


References:
Amazon, E. C. (2015). Amazon web services. Available in: http://aws. amazon. com/es/ec2/(November 2012).
Cloud, A. E. C. (2011). Amazon web services. Retrieved November, 9(2011), 2011

Phillips, O. L., Baker, T. R., Arroyo, L., Higuchi, N., Killeen, T. J., Laurance, W. F., … & Neill, D. A. (2004). Pattern and process in Amazon tree turnover, 1976–2001. Philosophical Transactions of the Royal Society of London. Series B: Biological Sciences, 359(1443), 381-407

Bezos, J. (1998). Amazon. com. Purdue University Public Affairs Video Archives.Kristensen, M., Penner, J., Nguyen, A., Moy, J., & Lam, S. (2017). Company Synopsis for: Amazon. com, Inc.

Stone, B. (2013). The everything store: Jeff Bezos and the age of Amazon. Random House.

Cutter, C. (2019). Amazon to retrain a third of its US workforce. Wall Street Journal.

Topic 2

Amazon is a multinational company and headquartered in Seattle, United States. The company focuses on ecommerce, digital streaming, cloud computing and artificial intelligence. Amazon has a range of external stakeholders, such as clients, internet vendors, competitors, local communities, and the government. For a business to develop and grow, efficiency, communication and collaboration with these stakeholders are essential.  External stakeholders are also known  as secondary  stakeholders as they do not participate in direct economic trade with the company, their activities (such as the general public, governments, activist organisations , business support groups, etc.) are influenced by or may influence their actions.Five most important  External stakeholders  and how they impact  the organisation:

Customers: Customer plays a very   important role in Organisation. As, customers  are affected  by the organisation as they purchase products  and services  manufactured and designed  by  the Amazon. Such clients and their online spending have built what Amazon is today. There are numerous types of Amazon customers such as, wholesale consumers, regular customers, customers dependent on needs and walking customers,  By taking their feedback and advice for the shop to achieve its objectives, they give the company ideas and plans about how to develop the goods and the interior of the shop. Duffy, D. L. (2003)


Sellers:  There are millions of vendors selling successfully on Amazon.com. These sellers send what they are looking for to Amazon’s customers. Amazon’s business model is impossible and unsustainable without them. Many observers, however, argue that the firm does not support its small sellers very much. Therefore, at a very early age, many small vendors leave the business. Sun, H. (2010).


Competitors: There are a variety of multinational corporations that Amazon competes with. The largest e-commerce rival is eBay. It also competes with Google Cloud Platform (GCP), Microsoft Azure, IBM Cloud, and several others in the web services industry. In the streaming industry, the top competitors are Netflix, Disney Plus, Hulu, YouTube and Apple TV Plus. This shows that, in all it does, Amazon is confronted by a variety of broad competitors. Awareness  is important  to deal with  competition  which affects  the success and failure of the business. 


National  Government  and Regulatory  Authority : Government collect taxes from the company (corporate income taxes), as well as from all the people it hires (payroll taxes) and from other expenditure that the company incurs (sales taxes), governments may also be considered a major stakeholder in a company. The overall Gross Domestic Product ( GDP) to which companies contribute is beneficial to governments.


Local community: Local communities are the people with staff and clients who provide the business or company. That is why they are really valuable individuals. The community gets jobs and profits from the services offered as well. The external stakeholders are local communities. This is because they are a collective outside the organisation, and they have an impact on the priorities and objectives of the company. Companies and the cultures in which they reside they’re in a two-way relationship as well. Many of the firm’s workers and clients may also be served by the local community. The company also delivers products Vital to the local area and facilities. The role of the local community as a stakeholder must be respected by all corporations. The business should be respected by the local community in order to function efficiently and be well received in the region and allow local residents to understand why the company is beneficial. Mendoza, E., Perz, S., Schmink, M., & Nepstad, D. (2007)

References:-

Morsing, M. (2006). Corporate social responsibility as strategic auto‐communication: on the role of external stakeholders for member identification. Business Ethics: A European Review, 15(2), 171-182

Morsello, C. (2006). Company–community non-timber forest product deals in the Brazilian Amazon: A review of opportunities and problems. Forest Policy and Economics, 8(4), 485-494.

Amazon, E. C. (2015). Amazon web services. Available in: http://aws. amazon. com/es/ec2/(November 2012).

Mendoza, E., Perz, S., Schmink, M., & Nepstad, D. (2007)Community vulnerability to the health effects of climate change among indigenous populations in the Peruvian Amazon: a case study from Panaillo and Nuevo Progreso. Mitigation and Adaptation Strategies for Global Change, 18(7), 957-978

Mendoza, E., Perz, S., Schmink, M., & Nepstad, D. (2007). Participatory stakeholder workshops to mitigate impacts of road paving in the Southwestern Amazon. Conservation and Society, 5(3), 382-407.

Sun, H. (2010). Sellers’ trust and continued use of online marketplaces. Journal of the Association for Information systems, 11(4), 2.

Duffy, D. L. (2003). Internal and external factors which affect customer loyalty. Journal of consumer marketing.

Topic 3

Individuals or organizations that are personally and/or financially active in the organizational process are internal stakeholders. Employees and executives are internal stakeholders influenced by the policy and progress of the company, with some impact on the organization. Amazon’s internal stakeholder comprise of the board of directors, employees, shareholders, strategic partners and suppliers. 


1. THE DIRECTORS AND SENIOR MANAGEMENT  :The Executive Management and DirectorsThe board of directors and shareholders expect the business to expand and make more money. The board of directors and the management expect consumer innovation to be enhanced and cost-effective in the business model to increase the amount of income earned (Spector, 2000). 
2. EMPLOYEES  :Employees expect to secure employment, earn higher pay and see the business expand, which will help them improve their careers. In terms of their economic well-being, workers are mainly impacted as stakeholders. Employees have a common concern with respect to how much and how much the company pays them. For these stakeholders, the management decisions that impact these issues are particularly relevant.


3. STRATEGIC SUPPLY CHAIN PARTNERS  :Strategic partners and suppliers, on the other hand, expect the business to grow and develop so that they can benefit from higher sales of their goods in return; higher returns shape the business and benefit from the company’s brand affiliation. 


4. SUPPLIERS AND DISTRIBUTORS:They need to work to run the organisation with their partners. Many have important abilities that are missing in them. Building strong long-term relationships is easiest. The partners, however, still have their own agendas and if they underperform or a better partner emerges, most can be replaced. 


5. SHAREHOLDERS  :The shareholders own the company. They could well have put forward the seed capital that we need to start in order to make their needs significant. The board, acting on behalf of the shareholders, may eventually replace the CEO and the executive team. However, if we are generally on track in terms of income and benefit, the shareholders are normally happy and will leave us alone. They can only take action when things go horribly wrong, so we don’t necessarily have to act in order to appease.

References:

  •  de Castro, F. (2013). Between cooperation and conflict: the implementation of agro-extractive settlements in the lower Amazon floodplain. In Human-Environment Interactions (pp. 213-234). Springer, Dordrecht.
  • Strebel, P., & Cantale, S. (2014). Is your company addicted to value extraction?. MIT Sloan Management Review, 55(4), 95.
  • Gray, J. G. (1986). Managing the corporate image: The key to public trust. Quorum.
  • Lee, L. W., Hannah, D., & McCarthy, I. P. (2019). Do your employees think your slogan is “fake news?” A framework for understanding the impact of fake company slogans on employees. Journal of Product & Brand Management.
  • Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and supply chain management. Cengage Learning.
  • Werther Jr, W. B., & Chandler, D. (2010). Strategic corporate social responsibility: Stakeholders in a global environment. Sage.

Topic 4

Inc., Amazon company. Analysis of PESTEL is a strategic method to assess the organisation’s macro climate. PESTEL stands for political , economic , social, technical, environmental & legal factors affecting Amazon.com, Inc. ‘s macro climate.

POLITICAL FACTORS INFLUENCING AMAZON COMPANY :Before joining or investing in a certain industry, Amazon.com, Inc. should closely examine the following factors— 
[  ] Political stability and value in the economy of the country’s Catalogue & Mail Order Houses market

.[  ] Chance of invasion by the military.

[  ] Level of corruption-the level of control        in the service sector in particular.

[  ] Bureaucracy and government intervention in Catalogue & Mail Order Buildings.

[  ] Contract Compliance Legal System

[  ] Protective of intellectual property

[  ] Services-related exchange law & tariffs

[  ] Favoured partners in trading

[  ] Anti-trust regulations affecting Catalogue & Mail Order Houses

[  ] Pricing regulations: There is a pricing control framework for services.

[  ] Taxation-rates of taxation and benefits.

ECONOMIC FACTORS INFLUENCING AMAZON COMPANY:Economic considerations that should be considered by Amazon.com , Inc. when performing PESTEL analysis are- 
[  ] Form of economic system-what type of economic system there is and how stable it is in operating countries.

[  ] Intervention of the government in the private market and associated programmes

[  ] Exchange rates & host-country currency stability

[  ] Level of education inside the economy

[  ] In the market, labour costs and efficiency

[  ] The stage of the business cycle ( e.g. prosperity, recession, recuperation)   

–  Economic Pace of Growth    –  Discretionary sales    – Level of unemployment    – Level of inflation    – The rates of interest

SOCIAL FACTORS INFLUENCING AMAZON COMPANY:For PESTEL research, the social variables that Amazon.com, Inc. management can analyse are:—

[  ] The population’s demographics and ability level

[  ] The system of groups, hierarchy and control in society.

[  ] Level of education and quality of education in the company of Amazon.com, Inc.[  ] Community (roles of gender, norms of society, etc.)

[  ] The creative spirit of culture and its wider existence. Some cultures, although some do not, promote entrepreneurship.

[  ] Attitudes (health, awareness of the world, etc.

[  ] Interests in Leisure

TECHNOLOGICAL FACTORS INFLUENCING AMAZON COMPANY

Study of technology requires learning the following impacts-

[  ] Latest advances in technology by Amazon.com, Inc. competitors

[  ] The effect of technology on product offerings

[  ] Effect on cost structure in the sector of Catalogue & Mail Order Houses

[  ] Effect on the function of the supply chain in the service sector[  ] Technological Diffusion Rate



ENVIRONMENTAL FACTORS INFLUENCING AMAZON COMPANY: 
[  ] The Climate

[  ] Changing the Atmosphere

[  ] Laws governing emissions in the atmosphere

[  ] Catalogue & Mail Order Houses industry’s air and water emissions regulations

[  ] Recycling 

LEGAL FACTORS INFLUENCING AMAZON COMPANY:

[  ] Anti-trust legislation in the sector and overall in the nation with Catalog & Mail Order Houses

.[  ] Act on Discrimination

[  ] Copyright, patents / Rules on intellectual property

[  ] Security and e-commerce for customers

[  ] The Job Law

[  ] Law on health and welfare

[  ] Protecting Data

THREATS FACED BY AMAZON :Amazon is facing numerous threats related to its activities in various sectors and markets. In this aspect of the SWOT Analysis model, external factors are considered that decrease or restrict business development and efficiency, such as in e-commerce operations. In its industrial climate, Amazon.com Inc. must resolve the following risks. 
[  ] The growing concern about online shopping due to identity fraud and hacking, which leaves its customer data vulnerable, is one of the biggest challenges to Amazon ‘s growth. Amazon must also act rapidly to alleviate customer fears about its website and ensure that privacy and protection are guaranteed online. 

 [  ] The company has had to face litigation from publishers and competitors in the retailing industry because of its aggressive pricing tactics. Owing to the rivals becoming unhappy with Amazon taking away the company from them, the obsessive emphasis on cost leadership that Amazon follows has been a source of trouble for the company.

[  ] Finally, as opposed to its behemoth form of approach, Amazon faces considerable competition from small online retailers that are more flexible and nimble. This means that, in the pursuit of its global plan , the organisation should not lose sight of its local market conditions. Gaylord, S. W., & Haile, A. J. (2010)


References:-

  •  Arthaud, V. C. (1994). Environmental Destruction in the Amazon: Can US Courts Provide a Forum for the Claims of Indigenous Peoples. Geo. Int’l Envtl. L. Rev., 7, 195.
  • Morsello, C. (2006). Company–community non-timber forest product deals in the Brazilian Amazon: A review of opportunities and problems. Forest Policy and Economics, 8(4), 485-494.
  • Kimble, C., & Bourdon, I. (2013). The link among information technology, business models, and strategic breakthroughs: Examples from Amazon, Dell, and eBay. Global Business and Organizational Excellence, 33(1), 58-68.
  • Torres-Sovero, C., González, J. A., Martín-López, B., & Kirkby, C. A. (2012). Social–ecological factors influencing tourist satisfaction in three ecotourism lodges in the southeastern Peruvian Amazon. Tourism Management, 33(3), 545-552
  • .Gaylord, S. W., & Haile, A. J. (2010). Constitutional Threats in the E-Commerce Jungle: First Amendment and Dormant Commerce Clause Limits on Amazon Laws and Use Tax Reporting Statutes. NCL Rev., 89, 2011.
  • Morsello, C. (2006). Company–community non-timber forest product deals in the Brazilian Amazon: A review of opportunities and problems. Forest Policy and Economics, 8(4), 485-494.

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