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Unit 1 Exploring Business Assignment 2
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UNIT 1 EXPLORING BUSINESSThe Effects of the Environment on a Business
Assignment 1.2
C: Examine the environment in which business operate
D: Examine business markets
,Contents
P4 The internal, external and competitive environment on Amazon....................................................2
P5 Situational Analysis of Amazon.........................................................................................................5
P6 Market Structure and influence on supply and demand affecting the pricing and output for
decisions for Amazon.............................................................................................................................9
M3 The effects of the business environment on Amazon....................................................................13
M4 Amazon reacting to market changes.............................................................................................16
D2 To what extend does the business environment affect Amazon....................................................17
D3 How the market have impacted on Amazon and how can Amazon react to feature changes.......20
Conclusion...........................................................................................................................................22
, P4 The internal, external and competitive
environment on Amazon
Internal Environment
Corporate Structure: Amazon’s structure is bold, customer centred and peculiar. They
promote boldness among their workers as it is seen in how the company pioneered to sell a
wide array of items online, even though they originally started with just books. Amazon’s
employees are encouraged to take risks while doing different tasks, such as considering new
ideas to the business. This company also facilitates openness toward new ideas based on an
organizational diversity policy which enable them to identify the best possible ideas to solve
problem or improve the e-commerce business. They are also highly customer centred and
their works mainly focus on the customers’ needs and demands. Amazon continually strives
to determine trends and changes in consumer preferences and applies these in their online
retail and related services. Their peculiarity is also a key factor within their corporate
structure as it refers to the idea of challenging conventions. Amazon motivates its workers to
view themselves and their work as different from conventional was of doing business. The
company believes that conventions impose limits on potential business growth.
Corporate Social Responsibility: Amazon has many ways to have an impact on society. They
have been supporting many local communities. An example would be, that in 2016 Amazon
launched its first nationwide initiative with Feeding America in its U.S. fulfilments centres to
donate excess food to Feeding America. Also, over 1,000 volunteers, service providers, retail
vendors and customers have participated in a Local Love event where the company has
donated over 1,600 volunteer hours and USD 65,000 in products to non-profits. Amazon also
focuses in educating and empowering workers which motivates people to work with the
company. For example, Amazon Career Choice Program pre-pays 95% of tuition for
employees to take courses for in-demand fields, such as airplane mechanic or nursing,
regardless of whether the skills are relevant to a career at Amazon. Amazon also puts a lot of
work into Energy Consumption. For example, the Amazon Wind Farm in Texas, launched in
017, generates more than 1,000,000 megawatt hours of clean energy annually from over
100 turbines.
Ethics: Amazon supports and facilitates strict enforcement by a variety of standards within
its Code of Ethics with local, state, federal and international legislation. We direct any
employee who is in conflict of interest to their legal department and usually identify any
circumstances requiring that department to be called. Clear of abuse and danger, Amazon
supports a safe and secure work environment that facilitates the clear movement of workers
in their work. The organisation actively discourages behaviour which is not in Amazon or its
customers, suppliers or staff's best interests.
External Environment
Political: Amazon receives Government Subsidies. Since the early 2000s Amazon has quietly
received more than $1.5 Billion in government subsidies, in exchange for bringing new jobs
to cities and states across the country. Amazon benefits from political stability as it increases
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