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Student name: Student 17
Assessor name:
Adrian Burca / Collins Adarkwa
Issue date
Submission date:
27th Jan 2025
18th Apr 2025
Resubmission Date:
TBA
Programme: Pearson BTEC Level 4 Higher National Certificate in Business
Unit 1 The Contemporary Business Environment
Assignment number and title: Understanding How Different Organisations
Operate and Function in a Wider Business Environment
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Assignment Brief – BTEC Higher National Certificate
in Business
Key vocabulary – terms and definitions
Economy
Span of Control
Sustainability
Scope
Chain of Command
Transnational
International
Global business
Franchising
Transformational
systems
Income elasticity of
demand
Market share
Macro environment
The state of a country or region in terms of the production and consumption
of goods and services and the supply of money. And how carefully they
manage the available resources.
The area of activity and number of functions, people, or things for which an
individual or organization is responsible.
The ability to be maintained at a certain rate or level for now and future
generations, such as the "the sustainability of economic growth"
The scope of any business involves every activity performed by that
business including sales, services, product developments, marketing and
contracts. Scope refers to all daily operations of the business, particularly
those activities required to secure revenue.
This refers to a company's hierarchy of reporting relationships – from the
bottom to the top of an organization, who must answer to whom. This
establishes accountability, it lays out a company's lines of authority and
decision-making power.
An organisation that extends or operates across national boundaries,
outside their national country.
International organisations operate from working in at least three countries
with a formal structure.
Global business refers to international trade whereas a global business is
a company doing business across the world.
A franchise business is owned by another, offering a product or service with
a brand name that provides assistance in every aspect of the business, in
return for a combination of a flat fee, plus fees based on profits or sales.
In management it has been said that Business Transformation involves
making fundamental changes in how business is conducted in order to help
cope with shifts in market environment
This refers to the sensitivity of the quantity demanded for a certain good to
a change in real income of consumers who buy this good, keeping all other
things constant.
The portion of a market controlled by a particular company or product. "a
leading retailer with a 25 per cent market share"
A macro environment is the condition that exists in the economy as a whole,
rather than in a particular sector or region. This includes trends in gross
PESTLE analysis
SWOT analysis
domestic product (GDP), inflation, employment, spending, and monetary
and fiscal policy.
A PESTLE analysis is a framework to analyse the key factors (Political,
Economic, Sociological, Technological, Legal and Environmental)
influencing an organisation from the outside.
SWOT (strengths, weaknesses, opportunities, and threats) analysis is a
framework used to evaluate a company's competitive position and to
develop strategic planning. SWOT analysis assesses internal and
external factors, as well as current and future potential.
Pearson BTEC Higher National Certificate in Business Assignment Brief
Student Name /ID
Number
Unit Number and Title
Unit 1: The Contemporary Business Environment
Academic Year
2024/2025
Unit Assessor
Adrian Burca / Collins Adarkwa
Assignment Title
Understanding How Different Organisations Operate and Function
in a Wider Business Environment
Issue Date
27th Jan 2025
Submission Date
18th April 2025
IV Name
Date
Business Report on the impact of Micro and
Macro Environments on the Business
Operations of two organisations.
Student 17
Assignment Title:
Table of Contents
Introduction...................................................................................................................... 1
Macro Environment Impacts ............................................................................................ 2
PESTLE Analysis ............................................................................................................ 3
Internal and External Analysis ......................................................................................... 5
Strengths and Weaknesses of Macro Factors ................................................................. 7
SWOT Analysis and Decision-Making ............................................................................. 8
Critical Evaluation of Macro and Micro Impacts ............................................................... 9
Conclusion..................................................................................................................... 10
References .................................................................................................................... 11
Introduction
Two factors within the business environment influence organisational operations and
decision-making
activities.
Beyond
organisational
control
exist
external
macroenvironment factors, which incorporate political, social, economic, technological,
legal, and environmental elements (Morrison, 2020). The microenvironment integrates
internal elements with direct external entities, which embrace customers, suppliers, and
competitors (Worthington and Britton, 2018). Amazon initiated its operation as a global ecommerce and technology corporation when Jeff Bezos established it in 1994. Since
entering UK operations in 1998, Amazon has developed into one of Britain's biggest
employment bases, employing over 75000 staff across multiple facilities. The UK
operations of Amazon generated more than £24 billion in revenue in 2022, demonstrating
its strong market standing (Amazon, 2023). This report examines macro and micro
environmental elements affecting Amazon operations while implementing PESTLE and
SWOT frameworks to assess its strategic standing as well as comparing its strategies
against Cancer Research UK operations before determining these elements' effect on
business goals and strategic choice Strategies to handle environmental obstacles are
suggested as part of the analysis' concluding section.
1
Macro Environment Impacts
The primary elements within the macroenvironment consist of political, economic, social,
technological, legal, ecological, demographical, ethical and regulatory components.
Macro environmental assessment operates to monitor significant industrial shifts and
upcoming organisational effects (Sammut-Bonnici, 2015). Amazon is a global ecommerce and technology leader that maintains significant UK business operations that
encounter various macro-environmental factors that substantially affect its operations.
Multiple external elements significantly influence Amazon's operational outcomes. This
analysis analyses which macro environmental elements promote or restrict Amazon's UK
market business operations.
NEGATIVE
POSITIVE IMPACT ON
IMPACT
MACRO ENVIRONMENT AMAZON’S BUSINESS
ON AMAZON’S
OPERATIONS
BUSINESS
OPERATIONS
Amazon has developed its The intense market
OTHER COMPETITORS
delivery services through
competition with Tesco
innovations such as Prime and Sainsbury's,
and same-day shipping
alongside specialised ewhile expanding into new
commerce providers eBay
business areas with cloud and Etsy, leads to higher
computing services (AWS) marketing spending and
to improve its business
price competition,
model and customer
resulting in reduced profit
margins for many product
appeal (Drew's, 2024).
lines.
With growing green
The implementation of
ENVIRONMENT
consumer demand,
environmental regulations
Amazon launched its
demands that companies
Climate Pledge program
invest in sustainable
to attract environmentally
technologies to meet
motivated customers who
carbon tax requirements,
support its commitment to packaging rule
becoming carbon neutral
compliance, and delivery
vehicle emissions
by 2040 (Amazon, 2024).
standards.
The company depends on Concerns of UK
LOCAL COMMUNITY
the local community's
communities about
workforce capabilities and workplace practices,
customer base, and
business displacement,
workforce recruitment
and traffic congestion
strategies and community caused delays in
collaborations ease
warehouse development
planning permission
2
requirements for facility
construction (Kelk, 2023).
TAXES
INFLATION
The UK tax framework
provides investment
incentives for Amazon's
technology development,
and predictable tax
arrangements allow the
company to make effective
financial decisions
(Amazon staff, 2022).
Consumers turn to online
shopping to find better
prices in response to
inflation, enabling Amazon
to set appropriate pricing
throughout its
marketplace.
projects throughout
various UK sites.
Tax authorities have
increased their scrutiny of
international taxation,
leading to higher
obligations for the
company, which reduced
profitability and required
price changes (Musa,
2018).
Substantial inflation has
led to increased
operational expenses,
which have eroded profit
margins and complicated
organisational prediction
capabilities.
PESTLE Analysis
As the leading UK-based e-commerce service provider and technology company,
Amazon generates essential economic impacts on the national scale. The company
operates in the UK through its £24 billion annual business and more than 70,000
employees who experience substantial impacts from PESTLE factors (Amazon, 2023).
Business operations become more straightforward to assess through a complete system
that monitors external environmental impacts provided by PESTLE analysis (Morrison,
2020). This analysis implements the framework to study Amazon UK and determine the
significant external elements impacting its strategic standing and operational capability.
Amazon faces benefits and obstacles in its overseas business
POLITICAL
operations because of the new trade framework introduced by
the UK following Brexit (Sam Armstrong, 2023). The
government's digital infrastructure development programs
enabled Amazon to build its delivery network infrastructure and
data centres. Amazon faces substantial compliance hurdles
regarding its dominant market position because of increasing
political surveillance of technology giants.
Amazon benefits from operating in the UK due to its stable
ECONOMIC
economic system worth £3.3 trillion, which provides ample
consumer demand for its retail activities (The World Bank,
2023). The present inflation rate is increasing operational
costs, yet attracting customers to Amazon's value propositions
in economic instability has driven UK consumers to adopt e-
3
commerce at a 12.6 per cent annual growth rate, strengthening
Amazon's basic business structure (Trade, 2023).
Customers who shift toward digital solutions and convenienceSOCIAL
oriented shopping practices support Amazon's business
model. As 87 percent of UK consumers use e-commerce
(Daggar, 2022), the rise of environmental awareness has
compelled Amazon to adopt sustainability commitments that
involve electric delivery vehicles.
The rapid pace of technological evolution helps Amazon
TECHNOLOGICAL
maintain superiority in artificial intelligence, robotics, and cloud
computing through AWS. However, to combat accelerating
technological transformations and secure its market position,
Amazon must devote large sums of money to data safety
measures and advance its innovation capabilities.
Local business stability within the UK exists through its
LEGAL
established legal framework. The GDPR data protection
regulations create requirements that involve major expenses
for building data management solutions (Wolford, 2018).
Product safety laws influence how Amazon tracks marketplace
sellers, while employment regulations determine labour-related
expenses.
The environmental regulations implemented by authorities
ENVIRONMENTAL
impact how Amazon organises packaging materials, handles
waste products, and controls carbon pollutant release
throughout their operational spaces. The national policy
regarding net-zero carbon emissions by 2040 drives Amazon
to invest in sustainable renewable energy sources as part of its
sustainability plan (Amazon, 2024).
Positive and Negative Impacts of PESTLE on Amazon
Amazon benefits from numerous positive factors stemming from its PESTLE analysis,
which supports competitive advantage through technology advancement, social ecommerce adoption, and economic backing for digital infrastructure. These factors have
driven Amazon toward increased market expansion and product variety throughout the
UK. The company faces three key adverse effects: rising regulatory attention in multiple
areas, wing operational expenses from inflation, and increased social and environmental
responsibilities.
4
Internal and External Analysis
Amazon and Cancer Research UK operate in different sectors yet face interconnected
macro and micro environmental challenges. This analysis examines how these
organisations' strengths and weaknesses position them to respond to these
environmental factors.
Firstly, for Amazon:
MACRO
MICRO
STRENGTHS
WEAKNESSES
ENVIRONMENT ENVIRONMENT
LOCAL
WORKING
Amazon's extensive Inspecting fulfilment
centre work
AUTHORITIES
CONDITIONS
size enables it to
negotiate effectively conditions generates
regulatory
with local
government entities compliance problems
to obtain necessary and unfavourable
public relations.
infrastructure
development
permissions.
The company can
RECESSION
PAY
Pressure to maintain
sustain operations
competitive pay rates
through downturns
during a recession
because of its
reduces profitability,
sizeable financial
especially with
reserves.
70,000+ UK
employees (Amazon,
2024).
Price optimisation
INFLATION
TRAINING
Operational
systems enable
expenses suffer
automated margin
because inflation
protection through
raises expenditures
instantaneous price for training,
modifications during particularly at the
inflation.
technical level.
Digital infrastructure The remote work
PANDEMIC
CAREER
enabled business
DEVELOPMENT
transition created
continuity and
career development
growth during
challenges,
COVID-19, when
particularly for
physical retail
warehouse staff
suffered.
without advancement
opportunities.
ENVIRONMENT SUPPLIERS
Establishing an
A large supplier base
environmental
within strategically
5
Secondly, for Cancer Research UK:
MACRO
MICRO
ENVIRONMENT ENVIRONMENT
LOCAL
WORKING
AUTHORITIES/P CONDITIONS
OLITICAL
promise and
investing in over
three thousand
electric vehicles
showcase Amazon's
dedication to its
clients and
shareholders
(Darley, 2025).
extensive supply
chains presents
significant
environmental
compliance risks to
the company.
STRENGTHS
WEAKNESSES
Strong political
relationships enable
policy influence and
research funding
advocacy.
Reliance on the
volunteer workforce
creates inconsistent
service quality
across locations.
The donationdependent model is
vulnerable during
recessions when
discretionary
spending decreases.
Limited training
budgets compared to
the commercial
sector affect
specialist recruitment
capabilities.
A distributed
operational model
creates supply chain
inefficiencies
compared to
centralised
commercial
operations.
The aging donor
demographic
requires significant
investment in digital
RECESSION
CUSTOMERS
Diversified funding
streams provide
resilience during
economic
downturns.
TAXATION
TRAINING
LOCAL
ENVIRONMENT
SUPPLIERS
Charitable status
provides tax
advantages on
income and property,
maximising funds for
research.
Community
embeddedness
through 550+ shops
creates strong local
awareness and
volunteer
recruitment (Cancer
Research UK, 2019).
MARKET PLACE DEMOGRAPHICS
The charity efficiently
raises funds across
different population
groups because UK
6
residents recognise
its brand.
engagement
strategies for
younger supporters.
The findings show how Amazon uses its technological capabilities and financial resources
to solve market obstacles while handling personnel management issues and
environmental regulations. Community engagement programs managed by Cancer
Research UK help overcome economic problems, but the organisation faces operational
limitations due to its high reliance on volunteers (Cancer Research UK, 2024).
Strengths and Weaknesses of Macro Factors
Amazon effectively handles UK macro-environmental factors that directly influence its
success in Britain. This analysis evaluates how Amazon's internal strengths and
weaknesses combine with fundamental external macro factors.
MACRO ENVIRONMENT STRENGTHS AND
WEAKNESSES IN DEALING
WITH THESE IMPACTS
OTHER COMPETITORS
Amazon's extensive product range and logistics system
offer a business advantage that helps it compete against
conventional retailers. UK subscribers of Prime
membership function as a loyalty tool that decreases
customer price concerns. Amazon's comprehensive
nature prohibits its ability to compete against specialised
retailers specialising in the fashion and electronics
sectors.
ENVIRONMENT
The Climate Pledge Alliance, which is dedicated to
decarbonisation projects, presents Amazon with
leadership in sustainability. Amazon's operating efficiency
generates less waste than conventional retail stores. The
company faces significant carbon pollution from its
extensive delivery operation, even though it has
introduced electric transportation.
RECESSION
Customers who prioritise value choose product offers
from Amazon during economic decline. Multiple revenue
streams, including e-commerce services, AWS, and
advertising programs, protect Amazon from market
downturns (Hivelr Business Review, 2025). However, the
company faces profit risks from enduring recessions
since its fulfilment centres have high fixed costs.
LOCAL AUTHORITY
The Amazon operation in Britain, employing more than
seventy thousand people, has a substantial financial
effect on local authorities, who must respect facility
construction negotiations. Because of the company's
7
TAXES
large size and scale, local planning authorities
systematically monitor it and impose excessive
regulations (BURNS, Lecturer and University, 2023).
The company uses complex tax planning methods to
maximise international tax benefits. Because of their
controversial nature, tax companies also must deal with
inconsistent tax policies across various platforms, which
is challenging (Amazon, 2025).
SWOT Analysis and Decision-Making
SWOT analysis helps Amazon use strategic decision-making as the leading online retailer
of UK revenue despite intense market competition. Analysing internal and external
company factors will determine how they affect strategic Amazon business decisions.
DECISIONS MAKING TO
SWOT
AMAZON
DEAL WITH
SWOT
STRENGTHS
Recognisable brand identity,
unmatched product variety,
extensive logistics network,
advanced technological
capabilities through AWS, and
financial resources.
WEAKNESSES
Dependency on third-party
sellers. The workplace
controversies related to
employee conditions might
hinder the Company's
recruitment efforts. Thin profit
margins in retail operations.
Regulatory scrutiny across
multiple jurisdictions.
OPPORTUNITIES Emerging markets expansion
potential, technological
developments in AI and
automation, healthcare and
pharmacy market entry,
expanded grocery and physical
8
Invests in further automation
and AI to leverage
technological advantage.
Continuously extend its
product range to preserve its
market leadership and
financial resources to execute
strategic acquisitions of
complementary companies.
The Company implemented
thorough verification
procedures for its sellers. To
resolve employee issues,
workplace automation
technologies received financial
funding. Amazon is expanding
into higher-profit service areas,
including AWS and advertising.
Strategic investment in AI
research. Targeted acquisition
of healthcare technology
companies. Development of
payment processing and
financial service offerings.
retail presence, and financial
services development.
Diversification beyond core eIncreasing e-commerce
commerce into services and
competition, regulatory
entertainment. Proactive
intervention regarding market
engagement with regulatory
dominance, international
authorities. Implementation of
tensions creating supply chain
comprehensive data
breakdowns throughout the
governance frameworks.
market, changes in data privacy
legislation, and impacts of
climate change on operations.
The SWOT analysis demonstrates how Amazon bases its decision-making strategy on
environmental evaluations (Amazon Annual Report, 2023).
THREATS
Critical Evaluation of Macro and Micro Impacts
Available academic studies confirm that environmental elements are significant in
determining organisational success. Macro-environmental disturbances need
organisations to develop agility in their strategies (Johnson, Scholes and Whittington,
2009), while Porter shows how micro-environmental forces shape competitive positions
(Porter, 2008). These perspectives yield important business implications when applied to
Amazon.
Amazon faces both benefits and challenges from environmental factors concerning its
organisational goals. Amazon benefits from digital advancement to expand its market
reach but must manage the heightened cybersecurity threats that accompany these
advancements. The expansion of e-commerce helps businesses earn more revenue,
although inflationary conditions function to reduce profit margins. Supplier relationships
within micro-environmental variables lead to product expansion opportunities, yet they
present difficulties in ensuring product quality.
Three strategic actions emerge from analytical research that demand Amazon face
environmental impacts. Supply chain resilience can be achieved through geographic
diversification methods that decrease political disturbances. Better stakeholder relations
would emerge from trustworthy sustainability reporting as ecological concerns rise. The
combination of fast automation implementation and workforce development initiatives
would help Amazon balance operational efficiency with corporate responsibility standards
(Amazon Annual Report, 2023). These strategic methods will help Amazon capitalise on
environmental prospects and manage its related risks better across the complex business
environment.
9
Conclusion
The analysis examines how macro and micro environmental elements influence
Amazon's business functions. Analysis of PESTLE factors demonstrated that
technological innovation and changing customer behaviour provide significant business
prospects, yet regulatory controls and environmental demands create difficulties.
Technological capability and financial capacity give Amazon an upper hand over
competitors, but the company needs to tackle labour-related challenges. Reliable,
competitive positioning for Amazon requires better relationships with regulatory bodies,
more transparent environmental reporting, sustainable shipping innovations, and
strengthened workforce development initiatives. These implementation strategies will
handle the essential environmental elements and simultaneously enhance Amazon's
future goals: market leadership and operational excellence.
10
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