Business and Business Environment: PESTLE and SWOT Analysis

This report discusses the impact of external factors on the performance of a business, including PESTLE analysis and SWOT analysis. It also explores the interrelation of strengths and weaknesses with political, economic, social, technological, legal, and environmental factors. The report concludes that internal and external factors have a significant impact on the operations of a business.

Unit 1 Business and business environment
(Part 2)

Table of Content
 Introduction
 PESTLE Analysis
 SWOT Analysis
 Interrelation of strengths and weaknesses with external factors
 Conclusion
 References

Introduction
The concept of business environment comprises of
such factors which arises within and outside the
organisation and direct impacts upon the
performance of such business along with its survival.
The factors could be micro or macro such as
company's internal or external factors.

PESTLE Analysis
PESTLE analysis refers to all such external
elements which has a crucial effect on the
performance of the company. Such
elements does not impact the single
organisation it effects the whole industry.

Political factors
This factor refers of the PESTLE analysis which includes taxation, governmental
policies, trade barriers, stability of the political government and many more.
 Positive Impact: Stability of the government is very high and the respective firm
is obeying all the policies in accordance to make their company successful.
 Negative Impact: Respective firm is not able to operate their business
appropriately as if there are any kind of the barrier in trade which occur because
of the governmental policies as well as instability of government.

Economic Factors
In this type of the element, it consists of the exchange rates, foreign exchange rate,
income, economy, rate of inflation etc.
 Positive impacts – The firm gives various reward as well as discount coupons on
their several products
 Negative Impact – In various places in the country, associates of the company
faces various issues which are linked to the inflations

Social factors
This element includes the population, dynamic needs, age, profile,
trends etc.
 Positive Impact – Admiral operates on the various methods at the
global level of the marker and as per the producer of the products
 Negative Impact – Nature of the customers are extremely delicate
as they change their wants and needs in accordance to their
economical status.

Technological factors
This factor refers to the adoption of the latest technology, automation or digital
methods, methods of innovation, growth in technology of the company.
 Positive Impact - By adapting new technology and digital methods such as
search engine optimisation of the website of the company,
 Negative Impact – Consistent adaptation of the technology is very much
costly and it can affect the profit margins of the company in a negative
manner.

Legal factors
This factor involves all the safety with legislation, rules and laws that are made
government.
 Positive Impact – Managers of the Admirals, follows appropriate laws which are
related to the labelling and packaging to decline the issues of health
 Negative Impact – If the associates of the respective company Admiral violates
any law or breaks any rule or does not obey the laws related to the protection of
the environment

Environmental Factors
It is the set of the rules of the environment safety with providing eco friendly circumstances.
 Positive Impact – Associates of the Admiral have initiated several campaigns in order to reduce
the carbon footprints
 Negative Impact – Earlier company has faced several legal issues by not following several
policies which are made by the government

Internal Analysis
Admiral is one of the leading sports brand of the
UK which operates in sports wear and accessories
and has several store around the world. In order to
examine the internal threats and weaknesses of the
company. In addition to this, analysing the strength
as well as grabbing the potential opportunities firm
so, in accordance to do that SWOT analysis is
mentioned below of the respective firm.

Strengths
 The firm is well known global sportswear brand with having
its appropriate brand recognition as well as several
diversified portfolio which can be consider as the strength of
the company.
 Admiral initiates several sports related events for like sports
matches of Manchester United and England national football
teams. Moreover they also sponsor several teams also which
is beneficial for them to gain more consumer base.

Weakness
 As because company works in the sports
industry so they are having very low
suppliers and because of this they are not
having more better choices.

Opportunities
 Firm can make several celebrities in order to market or endorse the
products of the company in order to attract more consumers.
 Usually people purchases sports wear goods and shoes for many
more activities apart from the sports so in order to market their good
company can also operate in selling more different products in the
market area.

Threats
 During the time of pandemic of Covid 19, all
the sports matches as well as major world
wide tournaments were not operating so, the
firm was not able to make more sales as well
as generate more profits (Degravel, and Tun,
C.H.M., 2021).

Interrelation of strengths and weaknesses
with political factors
 Strength: Government policies as well as norms of the UK is very
strong and stable for the working of the company (Davidson, and
Forsythe, 2021). So, execution of such legislation can assist the firm
effectually.
 Weakness: Drastic modification of the legislation can be very
complex for the company in order to adapt such changes in
accordance to smooth working of their operations.

Interrelation of strengths and weaknesses
with economic factors
 Strength: In the nation several individual are willing to invest their capital in
the company so management of the Admiral can get those investors to invest
their capital in the firm which is very much beneficial for their goodwill.
 Weakness: As due to the several alteration in the business cycle, modification
in the interest rates as well as foreign exchange rates and many more that can
hinders the achievement of their organisational goals (Cug, and Cugova,
2021).

Interrelation of strengths and weaknesses with
social factors
 Strength:In UK, customers commonly focuses on shopping from
the several online portals as because of the various options and
variety which are available there. Management of the Admiral
recruits highly skill employees for marketing who focuses on the
needs and wants of the customers

Interrelation of strengths and weaknesses
with technological factors
 Strength: With the help of Artificial Intelligence company can
provide several quality and innovative goods.
 Weakness: Advancement in technology is now becoming very
essential which is reducing the operational abilities and minimising
the profit margins.

Interrelation of strengths and weaknesses
with legal factors
 Strength: Respective firm is working by following
all the legal norms and formalities that is made by
the authorities and implement the same in effectual
manner
 Weakness: Company is restricted with various
governed norms that can negatively effects on their
working.

Interrelation of strengths and weaknesses
with environmental factors
 Strengths: Company Admiral is operating on adapting eco friendly
automation in their company which is beneficial for their long term
growth.
 Weakness: Production practices of the company can be their
weakness in this element.

Conclusion
From the above report it is concluded that, organisation have an effect
by its internal as well as external which are need to be linked with the
operations in the different manner. There are various kinds of the
organisations like public, private and voluntary which have the
different goals.

References
 Carracedo, P., Puertas, R. and Marti, L., 2021. Research lines on the
impact of the COVID-19 pandemic on business. A text mining
analysis. Journal of Business Research, 132, pp.586-593.
 Cug, J. and Cugova, A., 2021. Relationship between Earnings
Management and Earnings quality in the Globalized Business
Environment. In SHS Web of Conferences (Vol. 92). EDP Sciences.
 Davidson, D.D. and Forsythe, L.M., 2021. Business in the
Contemporary Legal Environment. Wolters Kluwer Law &
Business.
 Degravel, D. and Tun, C.H.M., 2021. Burma Drinx Group (A):
Strategizing for CEO Succession in a Family Business. FIIB
Business Review, 10(1), pp.16-32.