BA70035E: Management Skills for Executives
Introduction (BA70035E: Management Skills for Executives )
The Decision-making process is one of the significant tasks that is needed to be taken up any official for any business, in case of amazon also the process of decision making is one of the complex ones, and several factors are associated with it. The decision-making process is the most challenging task and requires a great deal of judgment.
It can be said that unstructured decision involves the help of a lot of external support that is, in other words, it can be said that to process any unstructured decision or idea, there needs to be proper guidance which can help in creating a route for the processes (Bondar et al., 2021).
In Amazon, some executives help make the appropriate decision, and these people have very much experience of the market. They, therefore, can ensure that the decision that has been taken is best for the company.
This paper focuses on the factors that how the process of decision making is structured and not an unstructured one and therefore needs proper external guidance for implementation in an external environment (Nodehi et al., 2021). Further, this paper provides details about the risk mitigation processes used for the betterment of an organization.
Amazon’s Strategy Management of External Environment
In the retailing space, indeed online, the world’s largest online retailer is Amazon. Into selling anything that can be sold online, the success of Amazon to diversify spurred venture it but at first, it was started as an online bookstore and only sold books online. Now, around the whole world, Amazon operates, and also the company has expanded globally, followed by a combination of logistics platforms, globalized delivery, and localized portals. As concentric diversification, we can describe this as the generic corporate strategy of Amazon.
Prioritization, exploring the opportunities more, and including the identification are the main critical benefits of having a management strategy for a company like Amazon. In planning strategically, the firms indulge then newer forays into the business lines followed by the more unique markets, and the more unusual products are possible. Again, a cost-benefit analysis is looked out.
Hence, the firm achieves the most higher profit and is also noticed to take an objective view of the activities that the firm does, which is all allowed by strategic management. The administration of strategy defines Amazon’s strategy. For amazon, to achieve better performance, it can also be defined as selecting methods that the managers do. (Keding et al., 2021). There are four steps involved in strategic management, and these are as follows:
Scanning of the Environment: For the strategy, this step is scrutinizing and information required to provide, followed by collecting.
Formulation of Strategy:
For accomplishing the objectives of an organization like Amazon, this step is required for deciding the best course of action, and as a result, the purpose of the organization is achieved.
Implementation of Strategy:
In this step, the strategy that is chosen by the organization here is formulated into action.
Evaluating the strategy:
This is the last step of the strategy management process. The objectives of an organization like Amazon, implementation are well achieved along with the design of Amazon with the help of the Evaluation process. (Keding et al., 2021)
Mitigating strategic external environment
Every company has to face its internal and external environmental risks. Amazon Company also has to face some external ecological risks. These types of the external environment are generally divided into two parts. One is macro and microenvironment. Among the external dangers and economic phenomena can throw the company most risk. The company must always be prepared to solve any problem.
Economic risk in the market can affect the amazon company most. If there is a sudden downturn in the market, then the amazon company is likely to lose a lot in the revenue sector. The company has to be careful enough about this (Fiodor et al., 2021). The company needs to reduce its own cost further and try to suppress the process of its economic risk. The company needs to stop investing too much in a high-risk areas. This can reduce their risk to the business. The company must always be prepared to solve any problem.
The amazon company always needs to be more active than their capital division. In this way, they can be able to mitigate other storms. Various natural risks can also significantly affect the company. As a result, the company has to shut down operations. This increases the number of losses (BRUNO et al., 2021). So the company needs to be more aware of its external environment.
There is also the possibility of political harm to the Amazon company. Such political losses always affect the economic side of the business. These external environment risks can never be predicted before.
In that case,the amazon company always has to think of a different type of solution. This company can change its import and export system through new rules (Udgata et al., 2021). The company needs to make its funds more active and efficient. They have to deal with external unforeseen environmental risks through different strategies.
Conclusion
Thus concluding the topic, it can be said that the use of the strategic external environment analysis is one of the essential things that is needed to be done to make sure that there is a proper market flow in the market.
I.T. can be said that with the use of pestle analysis and other such methods, risks can be easily mitigated, reducing the process of growing above the rivalry from the others in the field. Further, it can also be said that with the use of proper external help how the better decision can be taken and how these can affect the regular activities of work.
Further concluding,it can also be said that with the use of a proper system from the external environment and understanding how the market is one of the most important things for the process of making a profit in business.
Also, it can be said that there are five primary metrics that can be used for understanding a market, competitive, regulatory, economic, consumer, and technological market. Therefore it can be said that market analysis is one of the essential things that is needed to be done in the case of Amazon.
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