Key Issues affecting House Hold Furnishing

Business

Table of Contents
INTRODUCTION ..........................................................................................................................1
Key Issues affecting House Hold Furnishing .............................................................................1
PESTEL Model ..........................................................................................................................2
Categorisation of issues in relation to PESTEL analysis............................................................3
Positive Impact of Issues............................................................................................................3
Negative impact of Issues...........................................................................................................4
REFLECTION ................................................................................................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES ...............................................................................................................................6

INTRODUCTION
Business is defined as an enterprise or an economic system in which products and
services are exchanges in terms of money. A form of investment is required in every business for
investment in order to earn a profit (Clinton and Whisnant, 2019). This report is based upon
house hold furnishing sector and the way in which this sector is overcoming from various
factors. It covers analysation of two different issues that can affect this sector and PESTLE
analysis is used to determine the impact of these two issues. Further, it covers positive and
negative impact of these issues upon business entity. At the end, a reflection is made regarding
experience of preparation of this report.
Key Issues affecting House Hold Furnishing
To run a business in an appropriate manner, there are various issues which an
organisation can face. The business have to overcome from these issues for running its business
activities smoothly and effectively. There are various challenges and set of issues that can make
it difficult for house hold furnishing sector in upcoming years (Werhane, 2019). Some obstacles
applied to manufacturing industry generally, manufacturing of furniture industry is highly
sensitive towards price fluctuations, competitive environment, customer demand, and so on. For
instance, changes in technology is also having large impact upon house hold furnishing sector as
due to increased innovation and technology, this sector also have to cope with it which is
negatively affecting its cost of production. It is important for an enterprise to cope with these
changes in order to bring improvement in its productivity and operations and to achieve better
results. The two main issues which can be faced by house hold furnishing sector in today's times
are-
Fluctuations in Customer's demand- The basic issue that is affecting household
furnishing is that changes in tastes and preferences of customers. Furniture industry's demand is
largely dependent upon trends of customer housing. Around 37% of households had rented their
own homes in the year 2016, which is marking high level renters since 1965 (The Top 4
Challenges Facing Furniture Manufacturers, 2019). As per the year 2015, the homes of single
person has been expected to increase over next upcoming 15 years. Moreover, individuals are
preferring small households like small houses and apartments. This fluctuation in demand of
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