Description
III. Analysis (Week 6): This is a MEMO!
Note that this paper is in MEMO format. Look online for appropriate memo templates or use one that I have posted here.:
https://owl.purdue.edu/owl/subject_specific_writin...
your boss is having second thoughts about bringing Jack Harris and his firm, Crisis Consulting, on board. Before he makes his final decision he has asked you to provide him with a thorough analysis of the situation faced by your business. He asks you to prepare a memorandum to him (the CEO) analyzing the situation that your business faces as well as the resources that are available to it.
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Explanation & Answer
Hy buddy:) here is the final paper. Kindly go through it and get back to me incase of any concern!
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Impact of Government Action on Amazon
Student’s Full Name
Institutional Affiliation
Course Full Name
Instructor’s Name
Due Date
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Memorandum
TO:
FROM:
DATE:
SUBJECT: Impact of Government Action on Amazon
Business Environment
Through its activities and policies, the government plays a significant role in Amazon's
internal business environment. The range of political aspects that affect the company includes
political stability, the impact of home market pressure and lobbying groups as well as the
government's attitude towards the e-commerce industry within which Amazon operates
(Dudovskiy, 2020). Moreover, trade unions and their influence, the freedom of the press as
well as the degree of corruption are governmental factors with potential implications on
Amazon's business environment. Because of the scale and scope of its business operations,
Amazons indirectly influences politics in the USA and other regions in which it operates. The
government, therefore, has considerable stance towards the e-commerce giant.
The size and reach of Amazon's operations have pushed policy-makers to ensure appropriate
oversight, transparency, and protection for the American consumers. Government action and
political factors that have significantly affected Amazon include direct criticism by the US
President and political pressure from Congress, changes in taxation policies as well as efforts
by governments globally to increase cyber-security measures. The United States president has
frequently criticized the giant corporation through Twitter, Trump has accused the company
of inappropriate conduct, such as not duly paying its taxes and accepting a deal from the
United States Postal Services, putting thousands of retail stores out of business (Yglesias,
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2018). The president has also slammed the company for setting up the Washington Post as a
de facto lobbyist for the company. These comments are indications of the government’s
disapproval of the company’s internal operations. Moreover, the Trump administration refers
to Amazon as an ‘anti-trust problem’ and a ‘tax shelter’ (Mazumdaru, 2018). This presents a
significant threat for the company, since the government is likely to introduce stringent
policies that deal with these inadequacies, thus impacting the company’s general operations.
In 2017, the president emphasized the need to introduce internet tax, with specific reference
to Amazon (Cohen, 2017). This policy would enable state governments to force e-commerce
businesses such as Amazon to collect taxes from their customers. The internet tax policy
presents a substantial threat. Once this policy is implemented, the company will be forced to
increase the prices of its products thus pushing customers towards physical business
transactions. Moreover, it is reported that Trump’s advisors are encouraging him to cancel
Amazon’s awaiting multi-billion-dollar contract with the Pentagon to offer cloud computing
services. This would substantially erode the company’s profitability metric, that the company
seeks to increase in both the short and long run.
Amazon has also been widely criticized by Vermont’s senator, Bernie Sanders, for poor labor
practices and low pay. The Senator went to the extent of introducing a bill titled, Stop Bezos
Act, which taxes employers whose staff depend on government help programs such as rental
subsidies and SNAP (Griswold, 2018). The senator emphasized that Amazon’s CEO, Jeff
Bezos, is not paying his employees enough to sustain themselves and their families, which
pushes the government to use tax-payers’ dollars to implement assistance programs for such
employees
The increasing use of the internet to conduct business transactions has prompt the emergence
of cyber-crimes, negatively affecting e-commerce businesses like Amazon. Governments all
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over the world are actively fighting cyber-related crimes by implementing various measures
and policies (Cher...