Business Environment: Key Issues in Footwear Company and Pestle Analysis Method

This report discusses the key issues faced by a footwear company in the business environment and analyzes them using the Pestle analysis method. It also provides insights into the positive and negative impacts of these issues on the company's economy.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
(1) Two key issues in footwear company....................................................................................4
(2) Pestle analysis method...........................................................................................................5
(3) Two key issues.......................................................................................................................7
(4) Reflection...............................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment refers collection of internal and external factors where external
factors gives impact on organization performance while internal factor gives impact in
organization. Internal factors are equipments, employees, management, financial funding sources
and corporate culture etc. gives values to employees behaviour and leads success in organization.
External factors are social, economical, political, technological and environmental factor etc.
gives impact on company performance and responsible for local economy, organizational culture
and reputation of company in community (Saleem, 2015). Thus, these factors essential for
organization. C&J Clark is a international shoe manufacturer and retailer company. Headquarter
of this company is England, UK. It is British based limited company where number of
employees approx 15,380.
MAIN BODY
(1) Two key issues in footwear company
Changes in demography
Demographical changes means population age, structure and preferences changes
according to living condition known as demographical changes. C&J Clark faces this issues it
gives negative impact on company economy. For example organization manufactures leather
footwear in industry but now facing number of problem like demand of leather becomes less
(Armeanu, Istudo and Lache, 2015). It causes company have to change their products which
raises the cost of product. It lowers customer purchasing power, cause this company comes in
loss rather to profitability. On the basis of customer demand, organization changes their product
and starts to manufacture plastic and rubber footwear which enhance cost of product. New
product enhance competition in market. Due to high cost company unable to gain competitive
advantage. Thus, C&J Clark faces demographical changes in market which leads less
profitability in company and company unable to meet customers needs due to regular changes in
footwear. C&J Clark is UK company where UK government takes high interest of borrowing
cost. Organization have to pay high interest of borrowing cost which gives impact company's
economy rather to profitability (Levi-Jakšić, Jovanović and Petković, 2015). This issue leads
less productivity of footwear as result company unable to fulfil customers large demand
regarding product. Thus, C&J Clark gets negative impact on economical scale.

Mode of purchase
Mode of purchase like cash payment, credit payment, online payment etc. are purchasing
methods. C&J Clark faces this issues in footwear industry. For example C&J Clark gives cash
payment facilities to customers where customer can purchase products from direct cash payment
method. New technology gives challenges in organization. Company is out updated regarding
new technology like online payment method (Bah and Fang, 2015). Through this inability
company unable to retail their footwear product in larger scale. Due to unawareness about new
transaction method company unable to take competitive advantage in business market which
gives impact on economical scale of organization. Company unable to take advantage of low
cost leather in good quality from urban and rural area because they give credit payment facilities
while organization is out updated which leads negative impact on company economy. Thus, new
technology gives negative impact on company profitability and organization unable to take
competitive advantage in market. C&J Clark incapable to retail their product in global market
due to less facilities of purchasing method.
(2) Pestle analysis method
Pestle analysis is specially organized to examine and monitor external factor which gives
impact on organization performance. external factors gives impact on profitability of
organization. External factor are political, technological, economical, sociocultural,
environmental and legal factors etc. these factor give impact on footwear company performance.
Political factor: Political stability, tariffs and non tariffs, trade restriction, labour law and tax
policies etc. are political factor which gives impact on footwear company. UK's government
supports to remove employment from country by recruiting job opportunity for unemployment
peoples where footwear company takes advantage of this support company recruits job
opportunity for peoples (Calabrese and et.al., 2018). Through this recruitment organization
enables to enhance product demand in market. Thus, company alleviates economical scale in
business market. Organization gets negative impact from high employee's productivity because
demographical changes enhance cost of product. Due to this purchasing power of customers
reduces. In that state organization unable to pay wages to employees. According to UK policies
retailer can't retail their products in various countries due to trade restriction. This policy gives
negative impact on company because C&J Clark can retail their footwear in limited market.
Thus, company unable to retail their product in various company.

Economic factors: Such as interest rate, tax, law, policies, wages and government activities etc.
gives impact on organization economy. This factor gives impact on footwear company's
economy where company gets advantage of economical factor. Organization manufactures
leather footwear. Leather gets in the lowest price from rural and urban area. Organization doesn't
have to pay extra tax on this product during purchasing. Organization sells their footwear in high
cost to customers (Cepel and et.al., 2018). Thus, company enables to take profitability in UK
market. Organization gets negative impact in recession period because footwear company unable
to sell their product in high cost. Due to high cost customers purchasing power also reduces.
Thus, company unable to takes profitability on footwear products. Demographical changes gives
negative impact on organization economy because company unable to gives values to customer's
according to requirement which gives impact on economy scale.
Sociocultural factors: Factors are cultural change, cultural identity and demographical change
etc. are sociocultural factors. Changes in demography is categorized in sociocultural factors.
Demographical changes gives negative impact on company. Due to regular changes in customer
demand enhance cost of product (Deasy and et.al., 2016). In that state organization unable to
retail their product at lower cost. This leads low purchasing power of customers because
company unable to meet customer's demand. Company gets negative impact on economical
scale.
Technological factors: Purchase method is categorized in technological factors where company
unable to retail their product due to unawareness of new technology which gives threat to
company. Company unable to poring leather from urban cities because remote or urban cities
prefer to purchase through credit facilities rather cash payment facilities (Prajogo, 2015).
Organization doesn't have such kind credit facilities which leads loss in organization's
productivity.
Environmental factors: Climate changes, natural and technological disaster etc. are
environmental factors. Due to demographical changes company gets loss from government
policies because organization starts to manufactured rubber and plastic footwear which sustain in
environment prolong time and release alkalise. This enhances pollution in environment, so
government bans suck kind material in footwear industry (Doh, Luthans and Slocum, 2016).
Thus, company unable to retail their new products to customer and doesn't get profitability in
business market.

Legal factors: Health safety and equal opportunity, consumer rights and law and product safety
etc. are legal factor which gives negative impact on company because demographical changes
requires such kind product which can impact consumers safety (Saleem, 2017). Leather and
rubber & plastic footwear's release dangerous chemical which gives negative impact on human
health. Through suck kind material company faces problem during retailing product. Thus,
organization unable to take profitability in business market.
(3) Two key issues
(A)Positive Impact
Livesey shoes is a wholesaler private limited company which wholesale's of clothing and
footwear's. This company gets positive impact from demographical changes because it enables to
change footwear products from continuous changes in fashion. Marketer of wholesale company
is marketed to understand demands of customers and keep a note of customer's expectation
regarding product quality and product services. Livesey gives values to customers by
accomplishing their expectation. Through these values customers retains prolong time with
company. Organization focuses on customer demand and to do changes in their product quality,
design and services (Huang-Horowitz, 2015). Continuous change strategy leads profitability in
company. Livesey takes competitive advantages through demographical change. Through this
strategy organization enables draw positive image in businesses market and customers mind.
There is another issue i.e. purchase method which gives positive impact on Livesey Shoe
company because organization has all payment facilities like credit payment and online payment
facilities. Through such kind technological method organization enables to purchase leather in
lower cost from remote areas which leads economical profitability in company. Organization
enables to wholesale their product in business market. Thus company gets positive impact from
these methods.
(B)Negative Impact
C&J Clark gets negative impact from above issues. These are changes in demography
and other purchase method. Organization gets negative impact from demographical changes.
Due to out updated regarding new fashion company have faced many issues. For example
customer's demands for rubber and plastic footwear's rather to leather footwear. In that state
company unable to give values to customer's, due to this purchasing power of customer reduces.
Reduction of purchasing power gives directly impact on organization economy scale. Company

unable to take competitive advantage in business market. Marketer unawareness about new trend
leads unsustainable situation in business market (Khan and Quaddus, 2015). In that state
company unable to retail their client with organization.
While other is purchase method which categorizes in technological factor. This factor
gives negative impact on company's economy, customer's and employees. Organization doesn't
have knowledge about new technology that how to operate (Kozubíková, Homolka and Kristalas,
2017). In that state company unable to retail their product to other countries and unable to
purchase raw material (leather) from other countries like remote areas. Thus, company unable to
get profitability in organization.
(4) Reflection
I faced many issues during preparing this report like time management, research
difficulties , confusion to interline with factor, find difficulties to choose footwear company etc.
there is two major issues which I faced during this report. First is confusion during interlining
with factors. I got too much confused during finding two key issues which occurs in company
during retailing in business market. I was too much confused to relate these issues with pestle
factors. To categorization of these issues from pestle factors. Thus type issues was coming
during preparing this report. I overcame these issues by understanding report by and by.
Through understanding, I enabled to interlink with pestle factors and easy to described about
factor and their impact within company. Another issue was research difficulties. I found too
many difficulties during research because I was searching footwear company for this report, but I
wasn't getting UK footwear's company. Another difficulty I was searching pestle analysis
method according to UK footwear's company. I didn't get. Thus type issues was coming during
searching topics. These difficulties were consuming my time. Due to inability of research skills I
took more time. Thus, I became unable to maintain my time schedule. I overcame research
difficulties by improving my understanding during research. I understand question in this report
then search which reduced my confusion and got right information regrading this report. Thus, I
got confidence while preparing this report. Thus, I overcame my issues to improve my
understanding which improve my research skills and supported to manage time.
Preparing this report I learned many things that how to remove confusion and how to
research in well- formed manner. I got good experience during preparing this report because I

learned about new footwear companies and I learned how to link with pestle factor with
company. I also learned how to give comparison with company regrading issues. During
preparing this report I got happiness because I was getting knowledge about UK company and
their laws. Through this report I understand my weakness which was giving me problem and I
also interpret how to overcome these difficulties. Through this report my research skills has
improved and confusion has reduced. Thus, I got good experience during preparing this report.
CONCLUSION
On the basis of above report has been concluded business environment. This report has
been covered about business environment and their importance in organization. This report also
has been covered two key issues which gives impact on company. Above report also has been
covered pestle analysis method where two issues is categorized from these factors. In this report
has been covered two companies arguments regrading above issues where has been explained
that how it gives positive and negative impact on companies economies. This report has been
covered reflection which addressed about issues and experience during preparing this report.

REFERENCES
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