SG7001 Managing strategy Operations and Partnership Sample
Activity 2a
Evaluation of opportunities and threats posed by megatrends
| Megatrend (Amazon company) | Key issues affecting the organisations | Impact and implications |
| Digitalisation | The digitalisation is affecting the organisation in terms of global reach increasing the pressure among the workforce to compete with other e-commerce companies.
The number of online stores in the local market is increasing. |
The impact is on the operation of the business as the competition for online business is only reducing the work productivity of the employees.
The threat is from the local online stores that will reach and will be prioritised by the local government to eliminate the international business competition in local regions. |
| Sustainability | The reduction of the carbon footprint in various countries has been increasing the challenge for the company.
The low use of plastic and various regulations by the government is challenging. |
The company will be highly affected by the regulation of reduction of carbon footprint as the company is giant with global reach (Doorly, 2020). The usage of electricity for digital operation, packaging of the goods, and own manufacturing units have various consequences and impact over the climate.
And this climate change concern has legal complications that can interfere with the company’s goodwill in future. |
| Demographic and urbanisation | The demographic constant changes in preferences and urbanisation has increased the volatility of the demographic segmentation. The customer changes in demand and expectation towards the services is a huge threat for the company. | The impact of demographic preferences over the company operation can be very challenging. The people’s expectations are increasing and the operation of the business requires changes from time to time (Esty and Lubin, 2020). However, with generation Z and generation Y change in preferences can decrease the profitability of the company.
The opportunity is in urbanisation the demand for convenience is increasing and with delivery strategy Amazon one day dispatch towards the customer door can increase the future sustainability of the company. |
| Technology conversion | This is a challenge for the company as the constant growth in technology for managing the operation can be challenging and expensive.
The adoption of the employees to constant change in technology for operation of business will be overwhelming. |
However, the implication of the technology conversion will benefit the company as Amazon has financial stability and technological expertise bringing changes that retain competitive sustainable advantage over local competitors in various regions across the globe.
The threat will be the workforce retention for the company with constant change in technology (Adebimpe and Arangasubramanian, 2018). The pressure over the employees for adopting into the operation of the technology can increase the employee turnover rate in future.
The government imposes huge taxes over the tech giants and Amazon has to follow the confidential policy, tech operational privacy for functioning in various countries. And the threat of huge imposition of penalty over small mistakes during the operation of the tech giants can be challenging. |
Activity 2b
proposed recommendation for the operation and evaluation of the impact of recommendation on stakeholders.
| Megatrend
(Sustainability) |
|
| Recommendation | The one change that is required to continue the operation for building a sustainability business process is to consider decreasing the carbon footprint with more usage of packaging that reduces the use of plastic.
The operation of transportation that runs from renewable energy. The electric vehicles across the globe for delivering the goods and also alliance with suppliers that follow the protocols of sustainability for reducing the carbon footprint to globally sustain in the operation of the business. |
| Justification | The impact and implication of sustainability over tech giant industry is very crucial for sustaining in the global market. The sustainability will improve the quality of the lives that can increase the brand recognition of the company. And with electric vehicles the usage of the non-renewable resources decreases; protecting the scarce resources to sustain for a longer period of time.
The Coca-Cola company alliance with suppliers that maintain the sustainability strategy with low carbon footprint operation is an example of global sustainability of the company with no government intervention (Schlagwein, 2018). The regulation of each country is different and supplier alliances matters for positive brand recognition. The Amazon with the sustainability strategy to alliance with supplier protecting environment will help to locally expand business for long term with government support. This will help to operate the business across the globe for longer period of time with higher profitability. |
| Potential Implications
Supplier, Investor and social groups (3 stakeholders) |
The sustainability concept can have a huge impact on the global supply chain process as the recommendation suggests alliance and merger with suppliers locally who follow the protocols of sustainability. The risk associated with the supplier sustainability is shortage of suppliers (Rakić and Rakić, 2019). However, with sustainability the investors will have an effective implication as the company. And will seek global support towards the solar energy usage, no plastic usage concept. The global support will increase the buyers improving the profitability of the company increasing better dividend rates.
The third stakeholder is the social groups that will support the company to encourage it to protect the environment. And social groups are the community that converts into loyal customers. with community protection concern shown by companies regarding the carbon footprint reduction; the support from the community will be high increasing the profitability and sustainability of the company globally. |
References
Adebimpe, A. and Arangasubramanian, D., (2018). Analysis of industry 4.0 and its impact in business operations.
Doorly, V.B., (2020). Globalisation: A Megatrend on Its Last Legs?. In Megatrends Defining the Future of Tourism (pp. 119-150). Springer, Cham.
Esty, D.C. and Lubin, D.A., (2020). Toward a Next Generation of Corporate Sustainability Metrics. In Values at Work (pp. 97-108). Palgrave Macmillan, Cham.
Rakić, M. and Rakić, B., (2019). The market power of digital consumers in 24/7/365 connected world. Megatrend revija, 16(2), pp.79-100.
Schlagwein, D., (2018). The history of digital nomadism. In International Workshop on the Changing Nature of Work (CNOW) (pp. 1-5).
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