Impact of the macro-environmental factors (level I)
In the list of factors that affect a business operation, some of them cannot be controlled by the business owners. These factors however are considered when any business or organization is need of making decisions, and strategizing. In the end they have an influence on the success and performance of the organization. These factors are known as macro environment factors of the business. The level I of these factors is the global business communities which are rather external influencers of the business.
The first factor in the global business community is the demographics of the target market. Amazon which is the focus in the study is estimated to serve about 40 million residents of the United States that live in a range of five miles of the grocery store. A further 80% of those within the 10 miles ranges could also be reached with the grocery product. With the continuous and projected population increase in these locations, the revenues generated as also set to increase. As indicated, households with children are a better market in the Amazon’s Whole Foods Grocery as compared to the household without.
The society around the US, UK and Canada who are the major areas of operation of the Amazon grocery have accepted the online delivery of the grocery. Such is opposed to the traditional means in which the society only trusted the local retailers to fresh grocery. The society is easily getting to learn about the products offered and quality assurance levels of Amazon.
Technology is major factor which is in charge of the success of Amazon’s grocery store. While it is most cases only used in the online and delivery systems, more have added to include the grocery outlets. Technology has done away with cash payments in the stores, significantly reduced the staff and therefore enabling 24 hour operations. It is clear that organizations such as Amazon, from the inception relied solely on the online systems as purchase means.
Market factors (level II): Collaboration, competition, suppliers and regulators
Typically, a grocery serves about two miles radius from its locations. Such worked to the advantage of the local retailers. Such is the competition which exists for Amazon grocery chain. The online grocery store seeks to serve at least 5 miles of its radius and therefore have to work hard in ensuring they beat the competitors. In most cases, customers may go for the competitors who are closer them. More efforts to outdo all competitions will be important in making the business better and more viable.
Suppliers to the parent organizations also help in ensuring the success of business. While Amazon is working to gain control of all its production and production, it has not achieved total self-reliance. They therefore are in need of suppliers which bring out the importance of collaborations in the business. Suppliers are needed in ensuring that thousands of products are available for the clients to choose from.
Collaborations with customers have also help Amazon to maintain a customer base. Constant feedback, to and from the clients, which also ensures that products are corrected have enabled the organization to maintain clients.
Food industry, as important as the health sector, is an interest to a number of regulators. They are constantly interested in ensuring that the food safety standards are met to ensure the delivery of quality and healthy foods. The regulators are concerned with ensuring that Amazon products are examined for risks associated, and making sure of safety, such known safety methods have helped Amazon by clients gaining trust in the quality of their grocery.