Business Contexts And Its Management Assignment Sample

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Business Contexts And Its Management

Introduction of Business Contexts And Its Management Assignment Sample

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PART 1 - Industry Trend Report

1.1. Introduction & Identifying Issues

Online retailers like Amazon and Flipkart are a significant factor in nations' increased income, GDP, and profit margins in the global economy. Accordingly, Amazon picks companies in the E-commerce business and provides an in-depth explanation of its current financial position. The decision made by Amazon's management may be explained by looking at both external and internal factors. In the same way, that business model are used to deduce economic cycles and market sizes. In addition, essential articles and references are provided for this company's formulation (Cusumano, 2017). By using suitable models, Amazon's management processes define and consider the implications of management changes. It is explained in this paper how Amazon's working culture has affected the corporation. There are several specialist tools used in this company's operational activities. Both internal and external stakeholders were involved in observing and summarising what was taken on during the meeting. Then, in the second section, the report's summary and conclusion are explained, along with the appropriate suggestion.

1.2. An Analysis of an Organization’s External Environment

  1. Determine the Components of the Industry Sector (External Environment) in Which Amazon Operates.

According to Ives, Cossick, and Adams (2019), external and internal variables directly impact staff productivity and total corporate success. In the event of a pandemic, “it might have a significant effect on the operations of this corporation." Furthermore, Cusumano, Gawer, and Yoffie (2019), noted that internal elements such as “employee and customer recognition” job “effectiveness, and the services supplied by enterprises to clients also impact total company success." Consider “Amazon's 280.52 percent revenue growth rate, which will rise to 386,60 percent in 2020 under the present economic conditions”. On the other hand, this coronavirus hasn't impacted Amazon's market expansion. Similar to this, it helps to show that Amazon accounts for around 45% of the US online retail sector.

  1. Analyze the sector by applying relevant model(s)

By using cutting-edge technologies and technical criteria, the technology acceptance model, say Reillier, and Reillier (2017), may assist in identifying a company's market size. Like “new technologies like machine learning and AI, new technologies like augmented reality and the Internet of Things are helping to expand the industry." Amazon, for example, “is offering online services for consumers in a coronavirus scenario to buy things." In addition, “Amazon's market share is expected to decrease by 15.9 percent in 2021, from 39.7 percent to 39.9 percent”. Additionally, “business cycle analysis helps to portray the economic analysis of businesses and shows the current financial position in a competitive market”.

  1. Suitable Industry Report

Amazon's quarterly data illustrates the linkage between “Amazon's net sales and stock prices, and we linked this correlation to changes in Covid-19 cases”. In today's society, this key indicator influences social behavior through using stock prices, but this time every week. Frank, (2021), used “Amazon sales and stock price data” to prove the favorable influence of Covid-19 on online shopping demand and generalize it (Peprah et al., 2022). Due to the “Covid-19 limitations (such as quarantine), fear of infection, and a shift in customer purchasing habits” e-commerce demand has risen. Increased consumer demand generated a surge in investors' interest, and stock prices rose with sales.

1.3. An Internal Environment Competency Analysis

  1. The Internal Factors Which Determine the Chosen Organization’s Competences in the Competitive Sector

Individual teams within Amazon are also taking care of critical services given to consumers even in a pandemic of Covid-19. “Safety and health play” an essential role for Amazon's workers and customers alike and Amazon's business and communities. According to Wu, and Gereffi, (2018), sustainability and environmental conditions, on the other hand, are always at the top of firm considerations. To assist “the environment and the health of its workers and other stakeholders in the digital marketing business, Amazon has set a net-zero carbon emission objective”.

  1. VRIO Framework

Analytical methods that aid in “developing, protecting, and discovering an organization's capacity to keep a long-term perspective on business is analogous to this framework”. According to Ogola, (2021), this framework's significant “aspects or questions are precious, unusual, unique, and well-organized”.


This framework asks questions about how to improve the lives of consumers and end-users (Ogola, 2021). They also examine the capacity or opportunities that workers are producing and assist in boosting the internal power of businesses. For example, “a yes-or-no response from Amazon may be one of the two possibilities available”.


On the other hand, questions about rarity aid in “identifying organizational challenges linked to capabilities and product requirements”. Some commercial issues, such as product inventories and online shifts, have arisen because of the pandemic (Wu, and Gereffi, 2018). However, Amazon's competitiveness is dependent on the availability of everyday items and services to consumers.


These Imitability questions are a great way to uncover the shady side of the company. However, “it aids in assessing the short-term benefits of a company's competitive edge” (Aversa, Haefliger, and Reza, 2017). In Amazon's case, “the temporary or competitive advantages include receiving rapid product deliveries and prior on-time items and home delivery facilities for clients that help boost the target customers and their needs for the specific company”.


However, there are issues with the administration of the organization structure in this area. This inquiry also considers a variety of other aspects, such as the working environment, company culture, and business procedure. Adding all queries from the VRIO framework, for example, may help Amazon maintain a competitive edge in its industry (Ross, Beath, and Mocker, 2019).

Table 1: VRIO analysis

(Source – Developed by the learner)

  1. Findings With of the External Scan of The Business Environment

According to Jiang, (2021), internal variables include physical and financial resources, which believes this combination is the key to corporate success. However, a “company's buildings, equipment, and location are all physical resources in business," but financing, income sources, and investment possibilities are all components of financial resources. A dominant brand, expansion, and enhanced technology are some of Amazon's internal strategy factors.


With an emphasis on “product costs and pricing” Amazon implements cost “leadership methods in its operations” (Aversa, Haefliger, and Reza, 2017). It also compares “the market worth to other companies and examines product pricing according to the customer's capacity to afford them”.


Similarly, “Amazon selects new personnel based on various criteria, including their aptitude for learning, their level of knowledge and expertise, their ability to lead, and their technical expertise” (Gassmann, Frankenberger, and Sauer, 2017). In this case, personnel must be able to use “SQL, Linux, cloud computing, product management, and the C+ programming language” just a few examples of the specialized knowledge required.


Since Amazon is so large, the company's business management favour hierarchical business structures over other alternatives (Lincoln, and Andrew, 2018). As a result of this organisational structure, Amazon's employees benefit from minimal turnover.


Amazon has a tendency to adopt the leadership style to expand or improve its business. On the other hand, Pragmatists have proved to help their companies create high standards (Broos, and Ramos, 2017).


According to their department, this organization employs a wide range of people to assist manage the marketing of goods and build a solid portfolio to attract a wide range of “potential clients”. According to “Amazon's IT standards, for example, there are a lot of software engineers and software developers” (Frank, 2021).


“Orientation, personnel selection, recruiting, customer relationship management, transaction processing, and business analytics are part of the Amazon business system” (Cusumano, 2017). Each of these systems is also assessed regularly to determine if it can enhance productivity and responsiveness to the company.

Shared Values

This corporation uses various methods to determine the value of its stock. Profits may be made in their firm, data can be capitalized, and share prices can be calculated by dividing the capitalizing value by several shares (Reillier, and Reillier, 2017).

Table 2: McKinsey 7-S Model

(Source – Developed by the learner)

1.4. The Impact and Influence of Change and Culture

  1. Assessing the Impacts of Change in the Business of Amazon Using Lewin’s Change m\Model

Furthermore, Aversa, Haefliger, and Reza, (2017) recommends a more significant role for change management in corporate growth. Successful change management shows that consumers and enterprises communicate often and clearly in a competitive market. In addition, “Lewin's change model illustrates Amazon's business concepts in this part”. This paradigm's three fundamental phases are discussed below: unfreeze, modify, and refreeze.

Figure 1: Lewin’s change model

(Source - Ogola, 2021)


In order to create or implement new business innovations, businesses must freeze and hold specific unnecessary or present procedures (Ives, Cossick, and Adams, 2019). “This pandemic condition around the globe has prompted Amazon to save the offline business process and, lately, begin online marketing methods”.


Businesses are attracted to an organization due to some improvements (Aversa, Haefliger, and Reza, 2017). Many changes are being made to Amazon’s operations, such as alterations to choosing a new CEO, upgrades to the company’s entertainment and sporting venues, and new payment alternatives.


Customers and staff benefit from the benefits of refreezing at this stage, as well (Ogola, 2021). As a result of this “coronavirus outbreak, Amazon’s online services are also unavailable”.

Table 3: Lewin’s change model analysis

(Source - Ogola, 2021)

  1. Explanation of the Influencing of Culture on the Decision of the Management of Amazon

An organization's culture has a significant impact on workers' behavior and the functioning of communities. Four types of organizational cultures are also available, including the "market," "clan," and "hierarchy" cultures. Similarly, A?imovi?, Mijuškovi?, and Miloševi?, (2020) concludes that “firms use the Edgar Schein model to characterize their corporate culture. Therefore, it is dispersing Amazon's company culture into three levels: artifacts level, assumed values, and values”.

  1. Illustration of Effective Operation Functions Using Selective Tools

Various management methods are used by businesses to perform management duties. Similar to this, Gassmann, Frankenberger, and Sauer (2017)'s “total quality management model (TQM)” may be used to explain and understand the management approaches that contribute to the long-term success of an organisation. Amazon, for example, incorporates Kaizen into its management procedures as a means of implementing lean management principles and micromanagement techniques like these.

  1. Identification of External and Internal Stakeholders

Furthermore, Ross, Beath, and Mocker (2019) feel that an organization's stakeholders directly impact the performance and functioning of the firm. Among Amazon's many stakeholders are the company's employees and its directors, executives, and stockholders. Stakeholders and the communities it serves benefit greatly due to these endeavors. There are also emergency relief efforts, such as healthcare and environmental preservation, that Amazon's corporate communities are involved in.

  1. Summary

Lincoln and Andrew (2018) claim that everyone in their firm is going through difficult times and coping with hurdles in today's competitive economy. In the COVD-19 scenario, Amazon has to deal with difficulties, including customer returns and a lack of consistency in its communications. Another problem is a lack of available funds. Such a move might include raising prices or engaging in a competition or rivalry with lesser competitors in the sector.

PART 2 - Client Report

2.1 Strategic Planning

  1. The Benefits of Planning

For example, e-commerce enterprises enjoy the benefits of digital and online marketing methods, as seen in the sections above. Financial success and revenue development are linked to external and internal factors such as employee appreciation and employee contributions to the company's culture and work performance (Broos, and Ramos, 2017). An overview of Amazon's business market is provided by the 7S model by McKinsey, for example. According to Amazon, the seven stages of this method are “strategy, personnel, skill, structure, system, shared value, and style”. A range of concepts and ideas are used to build Amazon's working system, which results in a “great working environment and highly productive employees”.

  1. PDCA


To the contrary, Amazon intends to make the workplace a better place to work for its workers by using various management and operational ideas. The appropriate models and approaches explain Amazon's current state and growth (Onyusheva, and Seenalasataporn, 2018). This approach of assessing an “organization's strengths, weaknesses, opportunities, and dangers is the best”. Another critical factor in an organization's success is the level of pleasure its customers have with the products and services.


Additionally, VRIO and other frameworks aid in “developing the consistency and efficiency of the company's workers and profits” in the present economic climate. Consequently, it advises Amazon's top executives to identify the situation's positive and negative coronavirus traits. Product development and market development are only a few of Frank, (2021)'s suggestions for market expansion: penetration and diversity. This may be done in several ways. Customers' needs must be identified, employees' main rights must be prioritised, in-service personnel must be trained in specific abilities, and a target customer must be retained. Comparing historical and current growth rates is common at Amazon's top management levels (Ross, Beath, and Mocker, 2019). Amazon's market and company management must thus embrace product development or expansion plans since this is being checked.


Change management's influence on Amazon's existing company and its workers may be examined in the last phase of the PADC method. According to this remark, the Forrester research has been employed in this company's operations. Increased competition in the online retail industry has made developing an on-site marketplace for product sales (Alsehaimi, 2021). Techniques like "frequently bought together," recommending items based on prior purchases, or delivering basket contents may all be used to cross-sell and up-sell to customers.


Change management's influence on Amazon's existing company and its workers may be examined in the last phase of the PADC method (Ghez, 2019). According to this remark, the Forrester research has been employed in this company's operations. It helps construct an on-site marketplace for the conversion of sales of commodities because of the rising rivalry in the e-commerce industry.

Table 4: PDCA

(Source – Developed by the learner)

  1. Suitable Strategies and Approaches

Adding “refreeze, unfreeze, and change” to “Lewin's change model, we may study the impact of culture on corporate growth and the working capacity of employees”. Additionally, the findings of this study “reveal that the current situation has an impact on firms across all sectors” (Gassmann, Frankenberger, and Sauer, 2017). However, Amazon is also dealing with several modern business difficulties, including increased scrutiny, retail threats, the expansion of the cloud, employee dissatisfaction, and a looming Bezos in the current period of Amazon. Consequently, a comprehensive quality management model is utilised to evaluate the efficiency and profitability of the company's activities.

3. Conclusion

In conclusion, it is clear that internal variables directly impact “many aspects of corporate management, including economic growth, earnings, sales of goods, product demand and revenue, and the growth rate curve”. Some experts believe that workers' IT and management abilities are helping to handle client requirements in the marketplace, allowing the company to serve its customers better. A quick explanation of “McKinney's 7S model for Amazon company is provided in the preceding section”. It is clear that Amazon needs to concentrate on improving its business strategy adapting to net technologies.


A?imovi?, S., Mijuškovi?, V. and Miloševi?, N., 2020. Logistics aspects of goods home delivery: the case of Amazon company. Marketing51(1), pp.3-11.

Alsehaimi, A.A.A., 2021. Sentiment Analysis for E-book Reviews on Amazon to Determine E-book Impact Rank (Doctoral dissertation, University of Dayton).

Aversa, P., Haefliger, S. and Reza, D.G., 2017. Building a winning business model portfolio. MIT Sloan Management Review58(4), pp.49-54.

Baboolal-Frank, R., 2021. Analysis of amazon: Customer centric approach. Academy of Strategic Management Journal20, pp.1-16.

Broos, S. and Marcos Ramos, J., 2017. Google, Google Shopping and Amazon: The Importance of Competing Business Models and Two-Sided Intermediaries in Defining Relevant Markets. The Antitrust Bulletin62(2).

Cusumano, M.A., 2017. Amazon and whole foods: follow the strategy (and the money). Communications of the ACM60(10), pp.24-26.

Cusumano, M.A., Gawer, A. and Yoffie, D.B., 2019. The business of platforms: Strategy in the age of digital competition, innovation, and power (pp. 1-309). New York: Harper Business.

Gassmann, O., Frankenberger, K. and Sauer, R., 2017. A primer on theoretically exploring the field of business model innovation.

Ghez, J., 2019. Case Study: Strategizing at Amazon When Globalization Comes Under Pressure. In Architects of Change (pp. 111-125). Palgrave Macmillan, Cham.

Ives, B., Cossack, K. and Adams, D., 2019. Amazon Go: disrupting retail?. Journal of Information Technology Teaching Cases9(1), pp.2-12.

Jiang, H., 2021, January. Strategy Decision Making in E-commerce: A Case Study of Amazon. In 2021 12th International Conference on E-Education, E-Business, E-Management, and E-Learning (pp. 355-359).

Lincoln, I.V. and Andrew, C.E., 2018. Porter Analysis: A Business Strategy of Amazon. Com Through a Value Chain and Comparative Advantage Analysis of Amazon’s Trademarks and Intangibles. Com Through a Value Chain and Comparative Advantage Analysis of Amazon’s Trademarks and Intangibles (November 27, 2018). Practical Guide to US Transfer Pricing,.


Onyusheva, I. and Seenalasataporn, T., 2018. Strategic analysis of global e-commerce and diversification technology: the case of Amazon. com inc. The EUrASEANs: journal on global socio-economic dynamics, (1 (8)), pp.48-63.

Peprah, A.A., Giachetti, C., Larsen, M.M. and Rajwani, T.S., 2022. How business models evolve in weak institutional environments: The case of Jumia, the Amazon. com of Africa. Organization Science33(1), pp.431-463.

Reillier, L.C. and Reillier, B., 2017. Platform strategy: How to unlock the power of communities and networks to grow your business. Routledge.

Ross, J.W., Beath, C.M. and Mocker, M., 2019. Designed for digital: How to architect your business for sustained success. Mit Press.

Wu, X. and Gereffi, G., 2018. Amazon and Alibaba: Internet governance, business models, and internationalization strategies. In International business in the information and digital age. Emerald Publishing Limited.

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