Student Name: Owais Ahmed / Ali Ejaz / Usman Student ID:16279 / 16284/16277

Tahir

Code: MGT-441 Class:BBA 2 years

Course: Strategic Management Max. Marks: 10 marks

Instructor: Miss Hina Amin Date: 25th November, 2021

Instructions Note:
 Students must attend all questions.
 Creativity and examples would be encouraged.
 Minimum word count for complete report is not less than 2500 words excluding
references.
 Write up should be in your own words. Submission of complete copy paste material
from any student or internet in the assignment will not count and marked as “0”.
 You can make this assignment individually or maximum a group of 3 students.
 Reference articles should be taken from known and authentic resources which must
contained author name and year of publication.
 Due date of assignment submission is 25th December, 2021 (Friday) before 9:00am.
Late submission will not be acceptable.
 Power point presentations along with questions answers will be on same day.
 It is mandatory for marking to submit your Assignment in hardcopy (proper file) and
via KASBIT LMS both.
 Your comments in the last of this report is required

Format of the assignment:

 Font style: Times new roman
 Size: 12
 Headings should be bold
 Main contents should be in justified alignment
 Must add page numbers (bottom of the page-right side)).
 Must attached this question paper in the start of your assignment after writing your
names and IDs.
 Assignment page, title page, table of content main assignment and references.

Question: You are required to prepare a report by meeting following criteria

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 1. Prepare a case study of any local or international company (who has at least 20 years
of existence).
2. Background of the company and sector.
3. Factors (internal or external) affecting this company.
4. Conduct IFE, EFE, CPM, SWOT, SPACE and QSPM matrix.
5. Identify strategies of different departments (selected company).
6. Suggest/ recommend strategies and policies of different departments.
7. Identify global and CSR practices of that company.
8. Concluding remarks.
9. Presentation

Refer official website, annual book, documentaries and other relevant articles.

All the best

 CASE STUDY

Amazon.com was started by Jeff Bezos at 1994, he started his business by selling online
books he sees that this is a good way to give start up to his business, at that time he started
this business, his mind set was like an entrepreneur, because no one at that time was couldn’t
even think about this market, in an year he moves up to the sale of about 6 Million dollars,
after seeing his great success in this market two rival have entered in his market, and they
also have captured most of his market and customers in a short time period, their shareholders
and financers were asking, questioning on him that what is going on in this way we will be
nowhere in the market after some time, but he didn’t give up and comes up with new and
innovative idea he thought that his biggest strength at this time is his company name he can
use his company name to sell out other things online, his company isn’t bound so he started
and increase his product line and make the most of it. He knew at one time his business was
about to close because so many businesses entered in this market and couldn’t sustain and left
the market but he didn’t lose his heart and now he is on the top of the market. We are going
to study how success kiss him.

 BACKGROUND OF AMAZON:

Amazon start their business at 1994 as an online text book selling business platform.
Gradually they started to increase their business, increasing their product, making thing easy
for their consumer, when they have started their business it wasn’t easy for their customers to
use but after time effort they make thing easy for their customers to use it to order it. Amazon
has transformed into the most diverse e-commerce, they are offering nearly every product and
services, Amazon wanted to be the “Earth most customer-centric company” where
customer can find, discover and shop anything they want.

 INTERNAL AND EXTERNAL:

ITERNAL FACTOR

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Amazon is strongly working on their internal factors because Amazon isn’t have much strong
competitors in the market but still they are working strong to their internal factors like they
are working on customers satisfaction, customers loyalty, after sale services, efficient
distribution etc. These all factors attract new customers towards them, Amazon provides
satisfaction to their customers for example they can change or return their product (30) thirty
days after selling due to which customer give their loyalty to the company and give their
favor to company customers can not gain or retained not only by cost cutting or by price but
also include these factors to their strategies because if customers is paying to you then in
return he wants not only product but also these favors as well, Amazon is providing these
favors to their customers and enjoying their position at market.

EXTERNAL FACTORS:
External factors or market scenario is the most important factor for business stand internal
factors are more for decision making but external factors are more for business stand, in
decision making we decide what will going to be your next 5 or 10 years strategy, but these
strategies and policies can be change due to external factors or market scenario, while making
decision we have to keep in our mind or keep our decision flexible for sudden change in
environment, at some stages we have to change whole strategies and policies but on several
occasions we just keep or internal decision flexible and sustain. External factors can include
Cost benefit, easily investment, easily launch new product, and many more these factors help
company in growing and Amazon is very good at their external factors because he started this
business not only started but fight and earn profit at that time when internet and other online
services isn’t started, internet doesn’t grow much at that time.

 CPM MATRIX

AMAZON WALLMART
PARTICULAR WEIGHTAGE RATING SCORE RATING SCORE
Product 0.09 4 0.36 2 0.18
Quality
Prices 0.14 4 0.56 2 0.28
Customer 0.10 3 0.3 2 0.20
Service
Varieties of 0.20 4 0.80 3 0.60
product
Loyalty 0.05 2 0.10 2 0.10
Delivery time 0.10 3 0.30 2 0.20
Market share 0.05 3 0.15 4 0.20
Brand name 0.09 4 0.36 4 0.36
Online 0.04 4 0.16 2 0.08
Marketing
Feed back 0.10 4 0.40 3 0.30
Market 0.04 3 0.12 3 0.12
absorption
TOTAL 1 38 3.61 29 2.62

IFE MATRIX
STRENGTHS WEIGHT RATING SCORE
Customer loyalty 0.05 4 0.20
Technology innovation 0.20 2 0.40

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Efficient Distribution 0.15 1 0.15
Pricing Schedule 0.03 4 0.12
Timely Delivery 0.07 3 0.21

WEAKNESS WEIGHT RATING SCORE

Margin shrinking 0.11 3 0.33
Product Failures 0.05 2 0.10
Work place conditions 0.15 2 0.30
Employees Strikes 0.12 3 0.36
No brick, motor 0.07 1 0.07
presence
TOTAL 1 25 2.24

EFE MATRIX
OPPORTUNITIES WEIGHT RATING SCORE
Open Market 0.20 3 0.60
Grocery Market 0.02 2 0.04
Global Expansion 0.06 2 0.12
New Partnership 0.12 2 0.24
Make private brand 0.12 3 0.36

THREATS WEIGHT RATING SCORE

Gov regulation 0.12 3 0.36
Competitive price 0.12 3 0.36
Competition from local 0.04 2 0.08
market
Cyber security breach 0.13 4 0.52
Competition in the 0.07 3 0.21
Global Market
TOTAL 1 27 2.89

SWOT ANALYSIS
STRENGTH AND OPPORTUNITY (SO)
Amazon biggest strength is they have stable position in the market which is creating threats
for their competitors, which is creating the best opportunity for Amazon to create even
stronger grip in the market. Currently Amazon offers roughly 7,217 privatelabeled products
with 86% of those listed under $50 with an average rating of4.04 out of 5. They have the
quality and pricing down to compete in the industry.Amazon's other private brands, products.
Wal-Mart, one of Amazon'sbiggest competitors, has an estimated 30,000 products across
their 319 privatelabel brands. By seeing and analyzing these figures Amazon should take
future more steps to increase their product listings tocompete with others in the industry
while maintaining the quality and competitivepricing they currently offer.

WEAKNESS AND OPPORTUNITY (WO):

Implementing new workplace culture at all levels from management to
warehouse employees. Not only will this decrease warehouse strikes and attrition
rates but also will provide good press and marketing for the company and a new
path forward with customers who otherwise think that Amazon is a corporate
company with no thought to its employees. The average turnover rate for
warehouse workers in places with fulfillment centers belonging to Amazon was
100.9% in 2017.

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Untapped markets domestically and internationally. Wal-Mart dominates both
online and brick and mortar, so Amazon has the opportunity to expand into
having full stores worth of products.

STRENGTH AND THREAT (ST):

Continue innovating network security systems to protect sensitive consumer
data. By doing so Amazon can build continued customer trust that their data is
protected while shopping on the platform. Specifically beefing up AWS. As
recently as March 2020 there was a database breach that left unsecured
customer records from the EU and UK on AWS. Amazon benefits from the
continued investment and focus on cyber security and big threat towards cyber crime.
Work towards a more environmentally friendly delivery process and packaging.
Implement new packaging material and limit the waste as well as fossil fuels
being used to deliver packages. Amazon has started to use electric cars instead
of gas, which is one implementation that will help reduce fossil fuels.

WEAKNESS AND THEARTS (WT):

Form new partnerships and acquisitions to further expand on Amazon's diverse
product and service portfolio. Amazon has grown substantially through
acquisitions such as Whole Foods, Twitch, and Zippos to name a few. The
company could place itself strategically in many markets if it continues
diversifying itself through these acquisitions.
Practice better business practices and create PR plans to help with controversies
and prevent lawsuits. Example: Amazon using data from third-party sellers to
develop their private brands and is being sued and charged by the EU.

QSPM MATRIX
STRATEGY1 STRATEGY2
STRENGHT WEIGHTAGE AS TAS AS TAS
Customer 0.05 4 0.20 3 0.15
loyalty
Technology 0.20 2 0.40 3 0.60
innovation
Efficient 0.15 1 0.15 2 0.30
Distribution
Pricing 0.03 4 0.12 4 0.12
Schedule
Timely 0.07 3 0.21 4 0.28
Delivery

STRATEGY1 STRATEGY2
WEAKNESS WEIGHTAGE AS TAS AS TAS
Margin 0.11 3 0.33 3 0.33
shrinking
Product 0.05 2 0.10 1 0.05
Failures
Work place 0.15 2 0.30 2 0.30
conditions
Employees 0.12 3 0.36 2 0.24
Strikes

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No brick, 0.07 1 0.07 1 0.07
motor
presence

STRATEGY STRATEGY
1 2
OPPORTUNI WEIGHTAG AS TAS AS TAS
TIES E
Open Market 0.20 3 0.60 3 0.60
Grocery 0.02 2 0.04 3 0.06
Market
Global 0.06 2 0.12 2 0.12
Expansion
New 0.12 2 0.24 2 0.24
Partnership
Make private 0.12 3 0.36 3 0.36
brand

STRATEGY STRATEGY
1 2
OPPORTUNI WEIGHTAG AS TAS AS TAS
TIES E
Gov regulation 0.12 3 0.36 3 0.36
Competitive 0.12 3 0.36 2 0.24
price
Competition 0.04 2 0.08 1 0.04
from local
market
Cyber security 0.13 4 0.52 4 0.52
breach
Competition in 0.07 3 0.21 4 0.28
the Global
Market
TOTAL 5.13 5.26

SPACE MATRIX
Financial strength Ratings
(FS).
Net income A decrease since 2004 makes is a weakness: +3
Cash flow The cash flows have been constant side as sales have increased over
the years:+5
Earnings per share Earnings per share has gradually decreased and so can be a bit of a
problem: +2
Working capital The working capital management has been a problem with Amazon’s
currents ratios being below par: +2
Debt issued Debt position of Amazon is awful with most of its assets financed by
debt Amazon faces a high risk of default: +1

Competitive Ratings.
advantage (CA).
High shipment Amazon.com is perhaps the successful because of its high shipment

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 standards and security: -1
Market share. The amazon.com only holds around 15% of American book market
and has a very low market share as compared to its competitors: -4
Customer loyalty Amazon.com provides high customer satisfaction and thus hold higher
customer loyalty: -1
Technological know Amazon depends on quality personnel to maintain and improve its
-how. technology systems and handle customer issues: -2
Product quality. the product offered by Amazon is always high quality and better than
the product quality of its competitors: -2

Environment Ratings.
stability (ES),
Rate of inflation. The inflation rate has been constant since 2004 and is an indicator of
market’s financial soundness: -1
Technological The rapid technological improvement has been a key role in
changes developing Amazon’s business: -1
Barriers to the Being a corporation, Amazon encounters many entry and exit barriers
market by both the legislation of USA and also its own shareholders: -3
Risk Involved in As with any business there is risk involved with Amazon as well but
business as Amazon is expanding and treading into new business ventures.
Since 2006 Amazon’s business related risk is quite high:-4
Competitive Amazon’s competition in the form of eBay, Barnes and nobles, Book
pressure A Million are very influential in the market and hold a high market
share which is problematic for Amazon: -5
Market Since the dotcom industry collapse in early 1990’s the markets have
Sustainability shown remarkable stability and thus have led to many opportunities
for innovative businesses like Amazon: -1

INDUSTRY RATINGS
STRENGTH
Growth potential The dotcom market has great potential and as the online banking
market increases so will the online retailing: +6
Profit potential The profitably potential of online retailing is huge as advent of
Amazon and eBay has shown to the world: +4
Market entry barrier many legislations, cultural and social barriers that limit entry into a
market: +2
Technological The online retailer industry is based on the advent of technology and
advantage thus hold a significant edge over the traditional brick and mortar or
brick and brick firms: +5
Financial stability the fear of theft and fraud and a somewhat traditional approach has
retrained customers from buying online: +3

 STRATEGIES OF DIFFERENT DEPARTMENTS:

Amazon’s strategy is “concentric diversification” this strategy is based on technological
capabilities of a company that how much company is technological equipped, almost all
department are technologically equipped and well balanced, and the staff is highly qualified,
they know that our company policy is to deliver parcel lower than market cost, there strategy

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is they are providing each and every product to its web page on lowest price so any customer
couldn’t left page without buying anything.
A department is there working and watching every single person on social networking site
that what are people suffering on internet, the very next time Amazon will showing the same
thing or related thing which customer couldn’t resist buying, these are some techniques which
Amazon is playing and enjoying due to online market that each and every person is on his
watch not only this there delivery strategy is also responsive to fulfill customer needs and
demand because they know if they aren’t going to fulfill customer needs and demand there
are so many other in a que to fulfill customer needs and demand.
As we all know that Amazon is the world largest online store which is offering almost
everything for their valuable customers and most of the businessman knows that every person
knows about Amazon, big brands are offering discount to their customers through Amazon so
most of the businessman are investing in Amazon and earning profit through Amazon.
Amazon return policy is also simple we just have to link our account with Amazon it will
develop our slip online purchasing and return as well, we can return our merchandise within
30 days of purchasing, these strategies or mind set thing differ Amazon from others.
Amazon biggest strategy is he provide product in lowest cost to their consumers and also
Amazon is tax exempted company so he can also provide further low rates to their consumers
and he focus more and more to customers satisfactory and seamless as possible as he could.

 SUGGESTED POLICIES AND STRATEGIES:

Al though Amazon is doing more than any other online industry is doing but everyone know
if you are stop means you are going back, your strategies and policies will be called outdated,
so by time to time you need to change your policies and strategies. I can suggest Amazon
some strategies and policies which can help them in increase their sale and their number of
customers as well.

MAKE LISTING BETTER:

Listing is one of the most important part for any kind of business, in any business internal or
external depart having communication gaps can create problems for business and for
customers as well, so to avoid this kind of problem remove communication gaps listen to
every single person carefully what he is trying to tell what he is informing, what kind of
problem he is facing, what will cause will provided to factory with his information.

KEEP A BALANCED INVENTORY:

One of the more important suggestion which I believe through my knowledge is to never get
out of stock, out of stock means straight away loss and company name and reputation is on
the mark which means so one thing which not only this company but each and every
company should remember is to never get out of stock. Now days it is so easy to get your
inventory managed by using inventory management software which Pepsi and coca cola
using it to manage their inventory.

GET REVIEWS AND FEEDBACK:

Always get tons of feedback from your valuable customers which will help them in
maintaining your standard not only standard but also it will help you in increasing your
company worth and also help you in increasing customers satisfaction and fulfilling need of
customers as well.

7. GLOBAL AND CSR PRACTICES OF THE COMPANY

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  In 2020 after corona virus Amazon issued a relief fund of 25million dollars as an
initial contribution towards the impact of corona virus, not only this Amazon also
supports the local and international nonprofit organization with cash and product
donation.
 In 2020 company recommend all his global employees to work from home due to the
risk of Covid-19.
 Gender equality is placed at the core value of Amazon, Amazon made 10 affinity
groups in the company which were named employee resource group, not only this
company launched business for social responsibility named HERproject which
attracted more than 8000 women in its supply chain.
 Amazon is also working on waste reduction and recycling process, the company has
started packing free programs, means no additional packing the parcel will have
shipped in his original packing, in 2017 company claims that they have reduced
665000 tons of packing which they have celebrated at their 10 anniversary.
CONCLUSION:
At the end of my project I would just conclude that “striving for success without hard work
is just like to harvest some where you haven’t planted for ages” Jeff Bezos if he doesn’t
strive if he doesn’t do hard work and on that time when his company was about to close he
just give up on that time so he wouldn’t be here at this time or should I say nowhere in the
market.

REFRENCES:
https://www.managementstudyguide.com/analysis-of-amazon-corporate-strategy.htm
https://www.edesk.com/blog/amazon-customer-experience/
https://research-methodology.net/amazon-corporate-social-responsibility-2/
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