Leadership and Business Environment: SWOT and PESTLE Analysis of Boohoo

This report provides a detailed SWOT and PESTLE analysis of Boohoo, evaluating the changes in pestle factors and analyzing its impacts on the opportunities and threats, recommending the suitable leadership style from Daniel Goleman's, and commenting on the corporate social responsibility of the company.

LEADERSHIP AND
BUSINESS ENVIRONMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Performing the SWOT and PESTLE analysis of Boohoo: .....................................................3
2. Evaluating the changes in pestle factors and analysing its impacts on the opportunities and
threats, also addressing the strengths in negotiating the threats, weakness, and opportunities.. .5
3. Recommending the suitable leadership style from Daniel Goleman's which helps in
achieving the business objectives, justifying with the appropriate literature and examples. .....7
4. Corporate social responsibility of the company.......................................................................8
PART2.............................................................................................................................................9
Reflection Report.........................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The global business environment is the environment of the different countries, consisting
of many factors of the organization influencing the decision-making on the use of the resource
and using the capabilities. Boohoo the British online retailer founded in 2006, which is growing
rapidly and the company is acquired with the brands and the online presence. The company
utilize the social media as their marketing strategy and encourage the manger in assisting the
team by contributing the messages.
This report will give the derails about the company SWOT and PESTLE analysis, also
evaluating the change in the pestle factors has influence the opportunities and the threat of the
business, also addressing the strengths and weakness affecting the business opportunities, also
recommending the suitable leadership style from Daniel dolmans which helps in meeting the
objectives of the business objectives, also commenting on the CSR and lastly the reflection
report.
MAIN BODY
1. Performing the SWOT and PESTLE analysis of Boohoo:
Pestle analysis is the tool which explains the environment of a company in which the
micro factors stand for political, economic, technological, legal and environmental factors.
These factors help in establishing the external factors which impacts the decision-making inside
the organization. PESTLE analysis of boohoo the company operates as the online fashion retailer
offering the various apparels.
Political factor
The political factors play the significant role in determining the long term profitability
for operating in the market within more than dozens of the retailers. The company is affected by
various political factors before entering and investing in the particular market incudes, The legal
framework required for contracting, trade regulations and tariffs related to the customer services,
taxation rates, level of corruption, political stability, product labelling, trading practices (Alves,
Ribeiro and Saravanan, 2020). The company was mainly affected by the sales that was

continuously rising the online fast fashion brands also causing the fall due to Brexit, also the
other companies paying less than the maximum wage.
Economical factor
The economic factors are those factors which the company should consider while
conducting the pestle analysis mainly are the inflation rate, saving rate, interest rate, foreign
exchange, rate, also the industry growth rate, consumer spending rate, labour costs, inflation
rates, unemployment rate, type of economic system in the country operating,
Social factor
Social factors are mainly for condensing the social culture which impact the organization
way of doing things, beliefs, attitudes, will play the key role for the company as it will help in
understand the customers of the given market in the retail industry. Main factors include: the
demographics, education level, attitudes, culture and interest.
Technological factor
For the Technical factors the company must do the technological analysis of the industry
(Flinchbaugh and Pierce, 2021).As the speed of the technology affects the firm also the recent
developments, the impact of the technological product offering, it also impacts the value chain of
the company.
Legal factor
Legal factors are the framework that the firm should carefully evaluate before entering
into the new markets and ca gain the competitive advantage (PESTEL Analysis of Boohoo Com
Plc. 2021). Some of major factors for the company must consider are the laws of the country and
the industry, copyright, patent, health and safety as, data protection.
Environmental factor
The company must also consider the environmental factors these factors impacts the
profitability of the organization (García-Medina, Pereira Correia and Alberola Amores , 2019).
With the different environmental laws and the other concerns includes weather, environmental
pollution act, recycling, waste management, support for the renewable energy, air and water
pollution.

Swot analysis of the boohoo includes the strengths, weakness, opportunities, and threats.
These are the internal factors of the company. Which are considered as the macro challenges in
the international market.
Strengths
The strengths of boohoo are broad product portfolio which helps the business for
catering the demands of the various segments and the age groups (Kanai and Gill, 2020. This is
the greatest strength of the company which maintains the competitive edge, also the company is
highly innovative this helps the business in maintaining the leadership position in the industry
and help in sustaining the strong distribution networks also the strength of the company.
Weaknesses
Weakness of the company are diminishing the liquidity position and restricted focus on
investment research where the company is facing the difficulty in operating the day to day
operations (Kapoor,2020). further more the high investments in the new technologies, high
investments in the research and the developments projects and the gap in the product range will
result in the weaknesses of the company.
Opportunities
Opportunities of the company are the new customers from the Linton channel, emerging
the new trend of the consumer behaviour, economic up tick and increase In customer spending
will be there opportunity for the company, also technological advancement will provide
opportunity the company in differentiating the pricing strategy in the new market.
Threats
Threats for the company will be increase in competitors in the market, loss of the skilled
workforce in global market, fluctuation in the prices, irregular supply of innovative products,
new regulations imposing, fluctuation in laws regarding the standards of products, currency
fluctuations of the countries.

2. Evaluating the changes in pestle factors and analysing its impacts on the opportunities and
threats, also addressing the strengths in negotiating the threats, weakness, and
opportunities.
The changes faced by the company with the pestle analysis mainly resulting in the opportunities
and the threats for the businesses.
Technological up-gradation:Technological changes are the opportunities for the boohoo
company, as technological trends affect businesses at various levels. These changes make the
firm productive, it helps businesses in building the potential customers, by forming the strong
loyalty base. With the advancement in the technology strategic leader of the boohoo is evolving
the business and constantly developing the businesses for improving the operations. With the
advancement In technical aspects the information of the businesses are stored In the cloud and
the data servers. Also, with the technical advancement digital marketing has helped the business
and the companies in selling their products and services very smoothly. Technical up gradation
helps the boohoo in process of moving the businesses websites to a new platform and it had
helped a lot in reducing the operating cost while boosting the stability and flexibility. Also, the
companies came up with the automated planning tool which uses the analytics, records for the
female customers purchases and intro9duces the virtual wardrobe the platform allows the woman
to create looks from their Wardrobe and choose between the thousand shops.
With the technological changes it has given the opportunity to the boohoo as well as the
customer from tracking the real time experience. The customer need the specific keyword, and
uses the navigation pattens , price points. Where the intelligence and the search driven
technology helps to track the exact matches of the closet to the customer products, which provide
the invaluable insight about the differentiates (Powell, 2021). The company has also introduced
the range room the start-up platform for the technology which is mainly introduced to provide
the solution for the digital disconnect between the customers, retailers and the manufacturers and
also helps in the visual collaboration platform for the internal and satellite teams, which helps in
the transparency that caters to mainly conscious customers. This platform will drive the
innovation through industry and helps in addressing various challenges currently faced by
various factors.
Brexit (threats): Brexit is considered as the threats for the giant retail company boohoo,
as the company is warned by the slowing of sales growth, squeezing the profit margin as

disruptions to the deliveries and facing ore competition from the street which combines the
higher cost and rise in the wages at the warehouses. Also, the half year profit has being plunged
after hitting the Brexit rules, it has mainly increased the shipping cost and the heavy investments
despite the earning of the revenue. Brexit has generally it the profit which is mainly included in
the shipping cost, which were 26 million higher than the pre pandemic levels. The company also
has confirmed that the new rule of the Brexit reduces the profit margin from the 57.8% to the
53.7% manly because of the extra check bing required at the customs (Boohoo's profits plunge
thanks to post-Brexit rules and shipping costs - despite near £1bn revenue, 2021). The company
also revealed that there was the hit in the percentage of the garments which has returned the pre
pandemic level. The heavy level of the investment mainly included in marketing and integrating
the brands, including the various departments store.
Furthermore ,the company has also experienced in failing the online fashion system in the
supply chain in England due to Brexit, following the allegations about working conditions and
the low pay because of the fewer staff available form Europe. With the post Brexit Boohoo has
faced the charges of the custom and freight duty is not in their hands, it is out the company
hands, due to which the company is unable to predict the particular charges may be charged
regarding the duties. For all of these factors the company has implemented the operational
system which helps in minimizing the impact of the Brexit on the customers proposition in
Europe.
3. Recommending the suitable leadership style from Daniel Goleman's which helps in achieving
the business objectives, justifying with the appropriate literature and examples.
Leadership styles are mainly used for the leaders for providing the direction,
implementation plans and motivating people. These styles are the behavioural pattern that the
leader adopt for influencing the behaviour of the individuals also For the directions for
accomplishing the objectives. There are various leadership styles given by Daniel Goleman, the
best style suitable for the company will be authoritative style.
According to (Ali, Alshamsi and Jones, 2021). The authoritative leadership style of the
Daniel goleman is very effective for the company as it motivates the team members and
positively energizing the team to reach the objectives which contribute in achieving the
organizational goals. The authoritative leader also identifies oneself with most of the expertises.
In this the team members follow the lead of the authoritative leader as desired to achieve the

organizational growth and performance. This leadership style make sure that everyone in the
organization is working hard on achieving the expected organizational standards.
According to (Diana, 2021). Authoritative leaders are the visionaries who set the goals
for the company and enable the individuals for experimenting, innovating and take calculated
risks. These leaders help in trusting the employees, these leaders mainly sets the clear
expectations the combined hands off approach results in the higher employee overall
effectiveness. These leaders are visionary and its most useful style when the new vision , or clear
direction is needed which helps in creating the positive strong environment leading In high self-
confidence and empathy the leader act as the change catalyst by drawing the vision and engaging
the tram for achieving the goals.
For example this style is most suited for the Boohoo company in achieving the
organizational goal. Where the vision of the company for the new direction designed for
achieving the standard goals. For instance, the company has decided for reaching at aggressive
sales goals in the retail sector. This style help in connecting the overall retail department with the
new clients for achieving the objectives. This leadership style will help the boohoo for making
the new processes in succeeding the company as the team will immediately picks up the
processes in the excitement for achieving those set goals with sincerity. It enables the leader to
make the team members in using their extra skills for adapting the new processes and will
promote the workforce in doing extra work in order to learn new things will help in achieving the
aggressive sales with the extra skills and the work. This will further help In achieving the desired
goals with the vision and hard work of the team members.
4. Corporate social responsibility of the company
Corporate social responsibility help the company on regulating the business model to be socially
accountable. This responsibility is practising the sustainability development by delivering the
economic, social and environmental benefits for all stakeholders.
For this the company has developed the sustainability plan UPFRONT. This plan is made
for the materiel assessment, stakeholder analysis and internal engagement it also includes the
sustainable clothing plan. The company has also strengthened the team members by recruiting
the various specialist in the sustainability, ethical trade, packaging and sustainable materials with
the climate change. The company has also used various sources the 300000 garments made with

the recycles polyester through as the oe supplier in the Leicester. The company has also donated
the £1million to the garment and textile workers rust. The company has also collaborated with
the various industries and the groups like the sustainable apparel coalition (Di Benedetto, 2017).
The company is now operating with the business having 13 brands providing products to the
customers of all the ages and committing with the UPFONT with the size and scale for reaching
ate the good. For the future the company is making smarter clothes in the smarter way, with
better and sustainable materials, designs, and less wastage with packaging.
In packaging the products the company is using the 80% recycled bags , also introducing
the swing tags from the recycled boards, lock ties made from the recycled polyester and also the
recycled labels. Furthermore, by using the sustainable design Boohoo will reduce the carbon
emission, which reduces in damaging the climate. The company has also taken swift decision
regarding the carbon emission (Bolton,2019). They have mapped the carbon footprint, in the
partnership and reducing the emission of carbon in its own operation will help in maintaining
and decreasing the carbon emission. The boohoo is mainly involved in promoting the CSR
through various media platforms.
PART2.
Reflection Report
My experience with this report had been full of knowledge and insight. Before working
on this report, I was worried about my knowledge on this topic and how I would be able
complete a case study. I could not give time to my studies because of time management issues
but this project was in my focus to get back to my studies. I decided to study about it before
commence the work and divided every question into different sections to make it easier to access
the information. To do this project, preparing for the topics was I my centre of focus to improve.
Before I started the work I realized I still had a lot to study and work on to excel in the
project. Faced some difficulty as I had to learn alone through the internet and provided notes, but
I was happy to work on my study and assignment on my own. At certain point while doing the
project I could feel that I lack in my research skills, hence I gave my extra time to research for
solid sources, which were at last became fruitful for the project completion. I am satisfied with
the work I put on in such short time.
The thing that worked in whole process of writing this despite all the problems I faced
was the knowledge and experience I gained. I got to know a lot about the company, how it works

and how all those theories are applied on the firm's working. Yet I regretted not giving enough
attention to my studies before these assignments. As a result I couldn't find balance between my
personal life and studies and my acquaintances had to suffer it. But when I needed support
assistance my classmates and friends give me assistance which made me complete this project.
I think why it really went well was because of my dedication and self-confidence which
pushed me to do better. I realized how much I like working on projects on my own. Searching
through google scholar and I read some literature according to the sections of questions. I read
about SWOT analysis and PESTLE analysis and how it is applied on the ventures' working.
Corporate Social Responsibility gave me insight about how companies compensate to the society
and environment through welfare programs and the strategies that is used to retain in the market.
Different leadership styles interested me a lot and I could relate to the real life situations where it
suited perfectly.
Learning during this process was that studying and gaining knowledge about the subject
is very interesting and I got to know how much I enjoy learning about new stuffs. I could
understand things better after dividing in sections, it became simpler to study step by step and
during the report it was even easier to apply. How businesses deal with their strengths and
weaknesses and how they deal with threats and opportunities made me realize the real
application of those analyses are possible and very effective. I realize consistency is the key in
learning is important and it helped in applying those theories to the practical framework.
CONCLUSION
In conclusion of this report, SWOT and PESTLE analysis was performed on the Boohoo
company. The company's strengths and weaknesses were found and the upcoming opportunities
and threats that could affect their operations were discussed. The political stability ensures
smooth working of a company, and economic stability increases the expense power of people
which generates opportunity for the firm. As the company exist in a society it is important for
them to understand it and perform better business practices. Furthermore, in the report,
recommendations of suitable leadership style was given to meet the business objectives.
Corporate social responsibilities are practices and policies that are undertaken by firms in
intention of positive influence of organization in the society through different acts, like,
conducting different campaigns, donations, reduction of carbon footprint, adapting sustainable

practices, purchasing fair trade products, volunteering, improving labour policies and many such
options that do social welfare and reserve environment.

REFERENCES
Books and Journals
Ali, M., Alshamsi, K. and Jones, A., 2021. THE RELEVANCE OF EMOTIONAL
INTELLIGENCE FOR LEADERSHIP–UAE CONTEXT.International Journal of
Management (IJM). 12(4).
Alves, S. R., Ribeiro, H. and Saravanan, R., 2020. THE DIGITAL TRANSFORMATION OF
TRADITIONAL FASHION RETAIL FOR SUSTAINABLE GROWTH.Economic and
Social Development: Book of Proceedings.pp. 236-245.
Bolton, R.N., 2019. Responsible research in retailing: is your research really useful?.Journal of
Retailing. 95(3). p.3.
Di Benedetto, C. A., 2017. Corporate social responsibility as an emerging business model in
fashion marketing.Journal of Global Fashion Marketing.8(4).pp.251-265.
Diana, C.M., 2021. EMOTIONAL INTELLIGENCE–AN ESSENTIAL COMPONENT IN
CREATING A MODERN LEADER.STRATEGIES XXI-Security and Defense
Faculty.17(1). pp.303-308.
Flinchbaugh, M. and Pierce, P., 2021.Biz of Digital—Transitioning to a New IR
Platform.Against the Grain.31(6). p.31.
García-Medina, I., Pereira Correia, P. A. and Alberola Amores, L., 2019. How the digital age has
changed the corporate communication world: the case of Digital Marketing in the
Fashion Business.IROCAMM: International Review of Communication and Marketing
Mix.2 (1). 87-94.
Kanai, A. and Gill, R., 2020. Woke? Affect, neoliberalism, marginalised identities and consumer
culture.New Formations.102(102).pp.10-27.
Kapoor, G. T., 2020. E-RETAILING BUSINESS IN INDIA: A SWOT ANALYSIS.NEWMAN.
p.35.
Powell, H., 2021. Spirals, spikes and spinning wheels: Temporal models challenging the
sustainability agenda in relation to fast fashion consumption.Fashion, Style & Popular
Culture. 8(4). pp.387-397.
Online
Boohoo's profits plunge thanks to post-Brexit rules and shipping costs - despite near £1bn
revenue. 2021. [Online]. Available through:
<https://www.manchestereveningnews.co.uk/news/boohoos-profits-plunge-after-post-
21719041>
PESTEL Analysis of Boohoo Com Plc. 2021. [Online]. Available through:
<https://www.essaypandas.com/essay/Boohoo-Com-Plc-8942-Pestel-Analysis>