Current PESTLE environmental analysis for the business

This article discusses the current PESTLE environmental analysis for a business in the field of business administration. It explores the political, economic, social, technological, environmental, and legal factors that can impact the business operations. It also covers the competitive analysis of the industry and the target market for the business.

Business Administration

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Current PESTLE environmental analysis for the business.........................................................1
Conducting complete competitive analysis of the industry........................................................3
Target market and justification for this choice...........................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Business administration is useful in supervising the operations of the business. It heps in
effectively carrying out the operations of the business in order to attain the goals and objectives
of the study. Visight Company tends to focus on delivering customized gifts and services to the
people. The company focuses on providing customized gift and decoration services to the
customers (Bean, 2015). The company tends to deliver happiness at the doorstep of the
customers by delivering the product which brings smile on their face. The personal expertise
have high degree of knowledge associated with the creativity and innovation of the gifts and
experience of the individual person in order to fulfil their requirements. The gap in the market
associated with the online delivery and booking of the order to the customers by providing the
utmost degree of flexibility to the customers. The business will be located in 48 Great Russel in
London, United Kingdom because it helps in attracting large number of customers. This study
will outline on the current environmental analysis for the business. It will also conduct complete
competitive analysis of the industry. This study will also focus on determining the target market
for the business.
MAIN BODY
Current PESTLE environmental analysis for the business.
PESTLE analysis is considered to be as one of the key significant factor which mainly
focuses on taking into consideration key factors such as political, economic, social,
technological, environmental and legal factors to evaluate the external business environment
which hampers the business operations.
Political factors
Influence of the government tends to largely affect the way business performs its business
operations (Kim, and Min, 2015). It mainly includes governmental policy, tax policy,
environmental laws, labour laws, political instability, funding initiatives, corruption, etc. are
considered to be as the key relevant factors which influences the way business works.
Ineffective government norms and policies can influence the operations of the Visight Company.
Economic factor
The key prominent factors which tends to largely influence the working of the Visight Company
mainly includes growth within the economy, change in inflation rate, exchange rate,
unemployment rate, disposable income of the consumers, wage rate, financial capabilities, etc.
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However, these, factors tends to have direct long term impact on the working of the business.
These factors also affects the price of the products and services which has been offered by the
Visight Company.
Social factor
This includes the attitude, belief and trend of the customers which has been changing at a
frequent rate on the market (Cooke, and Alcadipani, 2015). The key factors associated with the
social factor in turn tends to mainly comprise of population growth, health consciousness, age
distribution, image of the company, consumer confidence, review of the industry, buying trends
of the customers, population growth, etc. which largely influences the business operations for the
Visight Company.
Technological factor
In the current digital era where the technology has been changing drastically at a greater
pace. It is crucial for the Visight Company to evaluate the technological factors such as research
and development, innovation and automation within the technology, emerging technologies,
return on investment, technology awareness, etc. are considered to be as the key relevant factors
which affects the business outcomes (Scanning the Environment: PESTEL Analysis, 2016). The
use of technologies is growing significantly. Making a website and mobile application where the
customers can browse all the products and services offered by the company and also order the
same in just few clicks. This helps in creating high degree of flexibility for the customers.
Environmental factor
The ecological and environmental factors which in turn tends to mainly includes decline in
the raw material, reduction within the carbon footprint, environmental legislation, geographical
location, weather, climate, pollution, etc. are considered to be as the key relevant factors which
helps in carrying out the function in an environmental friendly manner which leads to higher
operational growth and sustainability (Prause, 2015). Making environmentally friendly products
allow business to sustain for longer time within marketplace and help to grab the attention of
consumers. Unavailability of the resources hampers the performance and productivity of the
company.
Legal factor
These factors in turn tends to mainly comprise of various laws and legislations with which
the organization must comply with such as labour laws, competitive legislations, equal
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opportunities, consumer rights, advertising standards, product safety, product labelling, safety
standards, etc. are key elements which affects the outcomes and operations of the Visight
Company (Stonkutė, Vveinhardt, and Sroka, 2018). The company not complying with the legal
standards is considered to be as one of the most significant issue for the company. The rules &
regulations of UK government regarding consumers and workers directly impact Visight
Company operations and business procedure.
Conducting complete competitive analysis of the industry.
Porter's five forces model
It is one of the key significant model which helps in evaluating the key competitors
within the sector. This way it helps in determining the most competitive landscape to evaluate
the key prominent measures within the business.
Threat of new entrants
The entrance of new competitors within the e- commerce industry is moderate. It is easy
to develop an online platform which puts Visight Company at risk because they tend to offer
same range of products and services within the competitive market. The profit margins earned is
considerably high which attracts large number of competitors to enter within the e-commerce
industry.
Threat of substitute services or product
The degree of this threat of substitute products and services is low within the e-commerce
industry (Ly, Vickers, and Fernandez, 2015). The Visight Company tends to offer wide range of
customized services, gifts, decorations, print, painting, sketching, etc. in order to deliver the best
quality services to the people. There are no such other alternative substitutes are available which
helps in putting Visight Company at a greater spot to carry out the business operations with
utmost degree of accuracy and efficiency.
Bargaining power of suppliers
The Bargaining power of suppliers within the e-commerce industry is considered to be
very moderate. There are large number of suppliers who are present within the market. There are
large number of suppliers who can deliver the raw material to the company. This in turn
eventually tends to state that, there is low degree of control among the suppliers to have control
over the prices. This eventually has a high degree of positive impact which leads to growth
within the business.
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Bargaining power of consumers
The bargaining power of the buyers is considered to be moderate. There are only few
companies within this e-commerce industry who tends to offer wide range of customized
services, gifts, decorations, print, painting, sketching, etc. in order to deliver the best quality
services to the customers.
Rivalry among existing companies
The competition between the rivalry competitors is considered to be way too high
because large number of competitors has been offering the same range of products and services
at a highly competitive price. The rivalry competitors tends to engage themselves within the
competitive activities which helps in gaining high degree of competition to attain higher
sustainable growth and productivity.
Porter generic strategies
This strategy is very significant because it helps in developing the best possible strategy in order
to choose the best possible course of action in order to beat competition and gain key competitive
benefits.
Cost leadership
This is one of the key significant advantage which the company helps in the attainment of the
key competitive advantage to attain low cost of operation within the industry (Pindado and
Requejo, 2015). The Visight Company tends to mainly focus on keeping their price affordable in
order to provide the best quality customer service at their door step. The company also focuses
on increasing the efficiency and productivity by attaining economies of scale, eliminating waste
and controlling cost.
Differentiation
This is considered to be as one of the most significant strategy which helps in
differentiating the products and services from their key rivalry competitors (Stonkutė,
Vveinhardt, and Sroka, 2018). The products which has been offered by the company are high in
quality and also helps in creating varied degree of products and services to the people. This
company also focuses on providing huge discount on the offers which in turn leads to higher
operational growth and sustainability.
Cost focus
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The Visight Company tends to mainly focus on creating advantageous position in order to create
effective target market within this niche market (Kayl and et.al., 2017). The company also
focuses on keeping the cost low which helps creating effective set of features and attaining better
set of objectives.
Differentiation focus
The Visight Company tends to mainly focus on creating high degree of brand image and
loyalty among the clients. This helps in telling customers about the various set of unique feature
in order to provide the best possible services to the customers.
From the above carried out analysis, it has been investigated that, The Visight Company
tends to mainly focus on adapting differentiation and cost leadership strategy which helps in the
attainment of the competitive advantage.
Direct or indirect competition of the Visight Company
The key competitors of the Visight Company who offers range of personalized gifts and
services are Card factory, Shutterfly, Hallmark, American greeting cooperation, Etsy, etc. These
are the companies which creates threat to the business because they are the top established
business.
Target market and justification for this choice
Target market is considered to be as the group of people to whom the products and services
will be offered by the Visight Company. The target market of Visight Company will be the
people who are aged between 16 to 35 years. This helps in providing them with the customized
range of services and products. This group of people are highly interested in offering wide range
of customized services, gifts, decorations, print, painting, sketching, etc. This way it helps in the
attainment of the better operational performance and productivity to the people (Stonkutė,
Vveinhardt, and Sroka, 2018). The target market is helps in targeting those young adults who
wants to make the occasion special for the other person. This way it helps in better attainment of
the goals and higher operational growth and efficiency associated with the business. The Visight
Company tends to largely focus on providing the products and services to the customers at a
highly affordable price. This eventually leads to greater degree of sales and profitability for the
company. The Visight Company can targeted families of moderate means as their target
consumers, it has positioned itself as affordable market destination. The company focuses on
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providing highly personalized and customized services to the customers which helps in meeting
the needs of the customers and delivering the best quality services.
CONCLUSION
From the conducted study it has been summarized that, Ineffective government norms and
policies can influence the operations of the Visight Company. The preference of the customers
has been changing on a regular basis. Unavailability of the resources hampers the performance
and productivity of the company. The rules & regulations of UK government regarding
consumers and workers directly impact Visight Company operations and business procedure.
The entrance of new competitors within the e- commerce industry is moderate. The Bargaining
power of suppliers within the e-commerce industry is considered to be very moderate. It has been
concluded that, the products which has been offered by the company are high in quality. The
Visight Company tends to mainly focus on keeping their price affordable in order to provide the
best quality customer service at their door step. The target market of Visight Company will be
the people who are aged between 16 to 50 years. The Visight Company tends to mainly focus on
adapting differentiation and cost leadership strategy which helps in the attainment of the
competitive advantage.
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REFERENCES
Books and Journals
Bean, J., 2015. Big government and affirmative action: The scandalous history of the Small
Business Administration. University Press of Kentucky.
Cooke, B. and Alcadipani, R., 2015. Toward a global history of management education: The case
of the Ford Foundation and the São Paulo School of Business Administration, Brazil. Academy
of Management Learning & Education, 14(4), pp.482-499.
Kayl, I.I and et.al., 2017. Effective HR Management as the Most Important Condition of
Successful Business Administration. In Integration and Clustering for Sustainable Economic
Growth (pp. 23-30). Springer, Cham.
Kim, S.K. and Min, S., 2015. Business model innovation performance: when does adding a new
business model benefit an incumbent?. Strategic Entrepreneurship Journal, 9(1), pp.34-57.
Ly, C.T.M., Vickers, M.H. and Fernandez, S., 2015. Master of Business Administration (MBA)
student outcomes in Vietnam. Education+ Training.
Pindado, J. and Requejo, I., 2015. Family business performance from a governance perspective:
A review of empirical research. International Journal of Management Reviews, 17(3), pp.279-
311.
Prause, G., 2015. Sustainable business models and structures for Industry 4.0. Journal of Security
& Sustainability Issues, 5(2).
Stonkutė, E., Vveinhardt, J. and Sroka, W., 2018. Training the CSR sensitive mind-set: the
integration of CSR into the training of business administration
professionals. Sustainability, 10(3), p.754.
Online
Scanning the Environment: PESTEL Analysis. 2016. [ONLINE]. Available through<
https://www.business-to-you.com/scanning-the-environment-pestel-analysis/>
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