Pest Analysis: The PEST Analysis Of Amazon

Introduction
Dynamic Business environment is explained by the ability to respond to changes in the environment. Furthermore strengthening the success is an important value by showing a serious business risk to organisations (Saransri, 2011). When an organisation is developing their strategy to achieve a long term goal it is important to consider the PEST analysis factors which are political, economical, social-cultural and technological. Going through these factors is useful because it helps to avoid actions that are likely to fail in the future (Mind tool content).
Furthermore the PEST analysis helps to spot an opportunity that a business can take an advantage off and threats it can face in the future. Looking at the PEST factors this essay
One important political factor that challenges Amazon UK faces and still facing is the impact of Brexit as the stability or insatablity in Uk can can affect Amazon. According to Douglas and Gross, (2016) is that if the move happens where UK leaves the EU it could cause political and economic disruption in the short term the least. Amazon is still expanding in the UK despite the Brexit taking their total workforce to 24,000 (Cox, 2017). Although Amazon is expanding in the UK Taylor (2016) argues that post Brexit will have an effect on the company due to Amazon relying to employee on low wages and often want immigrant workers for its fulfilment centres. There are many challenges from Brexit that Amazon has to adhere to such as inflation that has already happened due to brexit where the currency has fallen against the dollar and Euro furthermore Davies (2017) and Mintel (2016) both argue that challenges will get worse for Amazon if UK leaves EU before 2020 because there is no guarantee that the government in the future will increase the rate of corporation tax or remain the
Furthermore BBC NEWS, (2018) states that that the EU union and single market could cost the country half a million jobs also loss of £50bn investment by 2030. This is something that Amazon has to take into account as it can be beneficial or a threat. The second thing that Amazon needs to consider is the threat from Brexit in terms of taxation and its effect on the sellers. Johnson, (2016) argues that depending on what deal the UK signs With EU those consumers whose orders has to be sold by the fulfilment centres in UK could lead to an increase in taxation for Amazon. After the vote for Brexit the British currency fell to the lowest level in the last 31 years (Baggio, 2017). Furthermore this is something Amazon needs to be aware of, Taylor, (2016) argues that Amazon rely on immigrant workers for their fulfilment centres and those workers might find it harder to work in the UK due to the fact of the pound Dropping. The trading regulation between UK and EU is unclear at the moment; this means that it could have an impact on Amazons cloud based web service as this means the efficiency of data transfer between the UK and EU is unknown at the present (Anthony, 2016). The UK GDP is also expected to fall this means that Brexit could cause an increase in goods and services furthermore this could lead to costumers spending