Produce a PowerPoint presentation that includes a SWOT and PEST analysis for Amazon. Using the examples provided in the reading and the formatting provided below, you will create both a SWOT and PEST analyses for Amazon. To create your analysis, you will be expected to assess both the academic sources provided in the course for this week and other appropriate self-researched market sources as well. Upon completing your SWOT and PEST, you will take one element from each analysis and provide two slides presenting your recommendations for an internal strategy to address the noted factor.
Your presentation should consist of at least the following:
- 1 slide: Introductory slide with the title of the presentation, the name of the company, your name, class name, and date
- 1-2 slides: SWOT analysis in figure form or bullets
- 1-2 slides: Presentation of your strategic suggestions for addressing one identified SWOT element
- 1-2 slides: PEST analysis in figure form or bullets
- 1-2 slides: Presentation of your strategic suggestions for addressing one identified PEST element
- 1-2 slides for closing and references
To effectively plan and execute for sustainable strategic growth, business leaders must establish a baseline. The baseline serves as the measure of where a company is in relationship to its market domain, competitors, and expectations of performance.
One of the first tools used to create a baseline is the SWOT analysis or matrix. The SWOT elements are Strengths, Weaknesses, Opportunities, and Threats. A business strategist uses these elements to understand the internal and external factors that help identify competitive advantages, risks, and opportunities. For each of the components of the SWOT, there are questions you should ask. Please consider that these questions are guides to encourage thinking and are not inclusive of all potential elements.
Table 1. SWOT analysis
1. What does your organization do very well?
2. How do you differ from your competitor?
3. What knowledge, skillsets, or talents do you have that make you different than your competition?
1. What does your company not do well?
2. What does your competitor do better, cheaper, or more efficiently than your company?
3. What are your company’s resources, knowledge, or skills limitations?
1. What emerging opportunities can your company capitalize on?
2. What underserved markets can you reach?
3. What efficiencies can be improved to reduce operating expenses?
1. What new competitors, technologies, or trends are emerging that could erase a competitive advantage?
2. What political, social, or buyer trends exist or are emerging?
3. What if any changing consumer trends are cause for concern?
Once you have created a SWOT the next step is to conduct a PEST analysis. PEST stands for Political, Economic, Social, and Technological. Performing a PEST analysis helps strategic planners to assess those external factors, contributors, or impacts on the performance of an organization. For each of the elements of the PEST, there are questions you should ask. Please consider that these questions are guides to encourage thinking and are not inclusive of all potential factors nor all possible problems.
Table 2. PEST analysis
1. What regulatory, legislative, or political requirements exist or are changing that may affect the organization?
2. What governmental mandated requirements for exist that may affect competitive advantage?
1. What currency, inflationary, recessionary factors affect operations?
2. What if any effect does high or low employment or unemployment numbers have?
1. How do societal trends like generational preferences, aging, or environmental concerns affect the organization?
2. How do societal forces like social media influences affect the organization?
1. What is the impact of technology trends on productivity or as introduced by competitors?
2. Are there technologies that may affect manufacturing, production, or distribution?
The SWOT and PEST are not a one-time transaction. As trends change, companies are required to change to adapt. Thus, a SWOT and PEST are snapshot assessments of where an organization is, who an organization is, and what potential factors may be assessed at one moment in time. From a strategic planning perspective, company decision-makers may choose to make scheduled periodic reviews and updates to their SWOT and PEST analyses.
To facilitate a better understanding of the interconnected nature of the SWOT and the PEST, the image below provides a primary visual reference. The simple relationships or interconnected points are provided as a general guide because there are countless ways that the SWOT and PEST can be used as connected and indispensable strategy tools.
Figure 1. The interconnected nature of the SWOT and the PEST
It is important to note that while the SWOT and PEST are often used in for-profit enterprises, they are just as valuable in non-profit enterprises as well. Ultimately, non-profit entities should consider the use of these tools to ensure the most significant opportunity for meeting organizational goals.
Be sure to review this week’s resources carefully. You are expected to apply the information from these resources when you prepare your assignments.