Key Issues Affecting Footwear Industry and PESTEL Analysis

This assignment discusses the key issues faced by the footwear industry, such as changing customer needs and lack of sales promotion measures. It also includes a PESTEL analysis of Barratts Shoes, examining the political, economic, social, technological, environmental, and legal factors affecting the business. The report concludes with a discussion of the challenges faced and overcome during the preparation of the report.

Business Strategy
Operations & Project
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Key issues affecting footwear industry...................................................................................3
2. PESTEL analysis categories two issues .................................................................................4
3. Discuss about key issues.........................................................................................................5
4. Discuss two challenges faced and overcome while preparing this report ..............................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................7

INTRODUCTION
Business strategies refers to those activities and plan of actions which are developed and
formulated by the management of the company form the effective operations and running the
business of the firm so that it can attain its set objectives in given time period in effective and
appropriate manner. This assignment is based on Stylo Barratts Shoes which is a shoes firm and
operates its business n different locations of UK and Ireland (Akter and et. al., 2016). This
company was founded in 1903 by William Barratt and headquartered in UK. This report will
discuss about key issues which are faced and suffered by footwear industry. Further, will be
explain about PESTEL analysis and positive or negative impact of key issues on business. The
challenges will also define which are faced during the time of preparing report.
MAIN BODY
1. Key issues affecting footwear industry
In UK there are several issues which are faced by the footwear industry like financial
issues, big size of defaulters, untimely sanction of loan, high rate of interest, irregular order,
delay in payments, changing customers needs & preferences, lack of sales promotions measures,
raw material related issues and others. But the major issues and problems which are faced by this
sector are change in consumers’ needs and lack of sales promotion measures which highly affect
the business of this industry in favourable and unfavourable manner. These issues affect the
business of the company in positive and negative way so the brief discussion of them is as
follows:
Change in customers’ needs- It is the main issue which highly affect the business of this
respective industry. Now these people are more knowledgeable and educated and as
consequences, they become more demanding. Due to change in fashion and trend the needs and
demands of consumers re change which affect the business of footwear organisations. The
manufacturer use different market analysis techniques like survey, market research and other to
monitor the change in target audiences needs. Now these people are not want products according
to fashion and trend but they also want good quality product that feel comfortable and would not
bring hazard for their health and they are ready to pay for it.
Lack of promotion measures- It is another issues which is highly affect the business of
footwear industry (Amran and et. al., 2016). In his sector, the promotional channels are not used

by the footwear companies’ at large basis so that they can aware and provide information to their
target audiences about their new or existing products. This negatively affects the business of the
company in term of profit and productivity. Because if the people are familiar with the company
they will not ready to buy or take the services of the sector and organisation (Boyd and et. al.,
2017). In this industry, companies mostly used TV and news paper for advertising of their
products.
2. PESTEL analysis categories two issues
PESTEL analysis
It refers to a tool and technique which is used the management of the company to monitor
the external environmental factors which create their impact upon the business of the company.
The PESTEL analysis of Barratts Shoes in context of its key issues is defined as below:
Political- This factor consider various factors like political stability, trading laws, foreign
trade laws, tax policy, labour laws, trade restrictions and others which affect the business of the
company in different manners. For example, if there is political stability in the nation then it
positively affects the business of the company in term of profit.
Economical- it is another factor which consist economic growth, exchange rate, inflation
rate, interest rate and others. For instant, if the interest of the country is increase due to
fluctuation in currency and instability in political condition of the company then it affect the
business of Barratts Shoes in negative manner.
Social- This dimension of the general environment indicates the demographic
characteristics, trends, culture, taste and preferences of individuals. For example, when there are
changes are occurred in the taste and preferences of employees needs and demands then it affect
the business of Barratts Shoesin negative manner because they demand product as per trend and
fashion,
Technological- It is another factor of this analysis which considers technical innovation
in the production & manufacturing process, distribution and promotional techniques (Chang,
2016). For example, if the management department of Barratts Shoes make innovation in its
promotional channels and starting to make promotion by using social media, Facebook,
Instagram, Twitter, web advertisement then it favourably affect the business of the company in
term of creating awareness about the products and services of it.

Environmental- This factor consist ecological and environmental aspects like weather,
climate and environmental laws which affect atmosphere. For instant, if the company will not
properly follow environmental laws like pollution act, carbon emissions and others then it
unfavourably affect the business of the company in negative terms (Higgins, Omer and Phillips,
2015). If the company will not effectively follow the pollution acts then it effect the environment
of the company because a firm is established in a society so this affect the community and create
negative impact upon the business of the company.
Legal- This factor of pestle analysis consider laws, rules, regulations and legislations
which are formulated, developed and framed by the national authorities so the organisations can
run and operate their business in effective or efficient manner. For example, if Barratts Shoes
operate its business internationally then it is essential that it have intellectual rights. Then it can
operate it business in effective manner, If the organisation will not follow labour and equality
law and do not provide equal right to employees who are working on same position then
unfavourably affect the business of the company in negative manner.
3. Discuss about key issues
(a). Positive impact on business organisation
In respective company, there are two major issues which influence the business of this
company. The one problem is faced by the company is change in consumer needs and
preference. This favourably affect the business of the company because when there are
modifications occurred in taste and preferences of target audiences of the company. Then the
organisation aware with the trends and fashion which provide a growth opportunity to the firm so
that they can manufacture products as per the trend and help in fulfilling the needs and demands
of their potential enantiomers. Change in customer needs driven innovation so the firm consider
their needs and produce goods as per their requirement. Another issues is promotional measures
which also create opportunity for the business of the firm. If the management of the company is
not using advance promotional tools like social media, internet, web advertising and others then
by using them, they can provide information about their business, goods and services to their
international customers (Johnson, 2016). This will help in maximizing the productivity of the
firm when target audiences aware with the products of this company and purchase them as per
their needs and requirements.
(b) Negative impact on business organisation

The two key issues which are suffered by this company in footwear business sector are
unfavourably influence the business concern of respective company. The main issues is lack
utilization of promotional tools which negatively affect the business of this organisation. If the
company will not use effective promotional and advertisement tools and channels then it
negatively affect the business of the company because people have not informations and familiar
with the products like shoes which are offered by it (Malerba and et. al, 2015). When they are
not aware with the brand, they will not purchasing the products. This negatively affect the
company in term of productivity and profitability. The another problem which is also faced by
the company is change in customers needs and demands. If the management of the company will
not conduct market analysis to aware with market trend and customers needs then they will not
manufacture products as per consumers needs and not able to satisfying their demands by
offering goods as per requirement. This negatively affect the business of the company in term of
productivity and profitability because when the sales of the company will not increase, profit
margins will not be maximized.
4. Discuss two challenges faced and overcome while preparing this report
During the time of preparing this report, I faced various challenges like lack of resource,
time management, lack of fund and various others. But lack of cost and time management are the
major challenges which are faced by at high basis. When I was working regarding this project,
due to lack of fund, I did not gather and collect information by different sources like internet,
social media,online channels and others. So I gather and collect information through books,
journals, articles and others. So I can not collect sufficient information and collect information
form these sources and d could not make my report more attractive and knowledgable. If i collect
information form social media and online websites then they are cost effective so I did not gather
information form them. So it is the major issues and challenge which I faced by my during the
time of preparing report. Another problem and issues is time management which highly impacted
my work unfavourably. Due to no time administration, the work is not divided in parts so that I
can complete it in a structured manner (Moseley, 2017). Due to no time management, the report
did not complete on right time which is set by me to finished because there is limited time so the
effective information could not put in it. If there is some more time then it can be effective and
can be more attractive in term of knowledge.

These issues and challenges can be resolve and overcome in different manners. Lack of
cost issue and problem can be resolve by using secondary method of data collection. In it, data
and information already gathered and collected by someone else for their personal use. So by this
information as per the requirement of the report, the issue of lack of cost can be minimise and
reduce. Because in this method, information is searched by someone so there is no need to
research about it. Another issues is time management which can be overcome by prioritising the
task of the report (Nohria, 2017). The task and wok can be prioritize on the basis of importance
and urgency. Another thing can be set time limits to complete task. Setting time constraints for
completing tasks assists in more focusing on the work. Before starting to work on the project,
plan can be make and formulating regarding task that which is important on propriety and
important to complete firstly. By removing the issues and problems like lack of confidence and
motivation, the challenge of time management can be reduced and minimised. During the time of
working in the project when the person can be encouraged to own self so that the work can be
completed on time.
CONCLUSION
As per the above information, it can be analysed that business strategy is an essential
aspect for the effective running of the company. Because they are those actions and activities
which are formulate and developed by the management of the company so that the firm can
operate its business actions and activities in appropriate manner. Pestel analysis is effective find
out the external environment factors that create impact upon the business of the organisation in
different manner. There are several issues which affect footwear industry and originations’ in
positive and negative manner. The main issues like promotional measures and change in
consumers needs and demands are highly affect the business of this firm. These issues can be
resolve by using different promotional channels like social media, internet and others so that
people can aware with the products and services which are offered by the company. By
manufacturing goods and services according to consumers needs they can resolve the problem of
change in customers needs.

REFERENCES
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