Barker and Stone House and Its Environment: SWOT and PESTLE Analysis

This study analyzes the internal and external environment of Barker and Stone House, a furniture brand in the UK, through SWOT and PESTLE analysis. It examines the company's strengths, weaknesses, opportunities, and threats, as well as the impact of political, economic, social, technological, legal, and environmental factors on its operation.

BARKER AND STONE HOUSE AND ITS ENVIRONMENT
INTRODUCTION
Every business organisation know the
importance of external and internal
environment, these environment include those
factor which impact firm in both positive and
negative manner. External factor may include
political, economical, social, technological,
legal and environmental factors whereas
internal factor include strength, weakness,
opportunity and threat faced by the
organisation in the market. This study is based
on Barker and Stone house, one of the largest
furniture brand in the market dealing in
furniture products.
PESTLE ANALYSIS
PESTLE analysis is performed to examine external factors and its impact over the
firm, external factors may include, these are:
Political factor: Political factor means involvement of government and their
decision which impact business organisation. The UK government took decision to
exit European Union which impacted business world, Barker and Stone house and
their operation will be affected by Brexit and policy provided by government.
Government also took measure to manage COVID-19 impact, Barker and Stone
house might face further challenges due to political decision, this company need to
design strategies after analysing this factor.
Economical factor: This is one of the most important factor in which business
organisation is impacted with stability of economy, after COVID-19 impact, UK's
economic stability is not favourable which means Barker and Stone house will face
challenges like high inflation rate increasing prices of raw material. Whereas, the
reduction is income and spending of consumer, unstable economy means they
consumer will not spend their money on decor products, more likely they will
consider FMCG products.
Social factor: Social factor means consumer factor in which consumer and their
behaviour in the market impact firm's performance, after COVID-19 impact, the
behaviour of consumer have changed. Barker and Stone house face challenges due
to social factor where consumer is not ready to spend their income on purchase of
furniture. However, consumer have changed their lifestyle which means they might
consider customize furniture provided by Barker and Stone house in the market.
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SWOT
SWOT analysis is tool to analyse internal factors that impact business
organisation and their operation, this consist of four factors, these are:
Strength: Strength of every organisation lies in the uniqueness and product
diversification, this factor impact firm in positive manner as strength is symbol
of growth. Strength of Barker and Stone house lies in uniqueness in their
product range, this company manufacture customize furniture with high quality
of woods and timber. Barker and Stone house is well known for diverse range
of product including traditional, modern, Rome, Indian and Italian furniture
design allowing consumer to consider Barker and Stone house.
Weakness: Weakness of every business organisation lies in those improvement
area which is avoided by the firm, Barker and Stone house have issue in their
supply chain management where they fail to deliver product on time. There are
cases in which consumer have received broken and damaged furniture, Barker
and Stone house do not have many outlet in the country, due to high demand
and low outlet in the country, the supply of furniture is limited impacting
revenue of the company.
Impact of company on external environment
Barker and Stone house is one of the most
stable organisation in the UK dealing in
furniture market, even in critical situation of
COVID-19, this company was stable and
providing furniture products. The political factor
impacted growth of every business including
Barker and Stone house, however, this company
able to manage their operation because Barker
and Stone house do not deal in European
market. On the other hand, economical factors
where examined by Barker and Stone house in
which they reduce their price of the product and
managed economical impact over the business.
Barker and Stone house knew the high rate of
inflation that will increase the price of the raw
material, with strong supplier change and other
strength, Barker and Stone house managed their
operation.