Business Environment

This report discusses the key issues affecting the footwear sub sector, such as Brexit and unemployment, and explores the uses of the PESTLE model in the business environment. It examines the positive and negative impacts of these issues and also discusses the challenges faced and overcome during the preparation of reports.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Key issues affecting footwear sub sector ................................................................................1
2. Uses of PESTLE model...........................................................................................................4
3. Discussion................................................................................................................................5
a. Positive impacts.......................................................................................................................5
b. Negative impacts......................................................................................................................6
4. Challenges faced as well as overcome during preparing reports.............................................6
CONCLUSION................................................................................................................................7
REFERENCE...................................................................................................................................8

INTRODUCTION
Business can be formulate, but to run and sustain successfully, it needs various business
resources such as finance, place, shareholders, skilled employees etc. who are important to run
their business continuously. The business market is dynamic where number of businesses are
facing different issues and challenges to running their business activities. The changing needs of
customers, different culture and lifestyle and new innovation are consider as part of business
environment (Auz Vaca, 2018). This report is prepared by choosing sub sector of footwear.
LLOYD Shoe Co. Ltd UK is selected company within this sector that has headquarter in
London, UK. It provides boots, shoes, footwear, sandals, sneakers and so on. The report contain
different issues and challnges which can impact positively or negatively on business
organisation, PESTLE analysis and its impact which can affect the sub sector.
MAIN BODY
1. Key issues affecting footwear sub sector
Sub sector is a classification of sector where different types of businesses are exist and
running their business continuously. Footwear sub sector are comprises with manufacturing and
distributing the footwear that keep warm and safe people's feet. The main purpose of footwear
sector is to protect the feet from adversities and injuries (Peracek, Noskova and Mucha, 2017).
This is is growing sector which is creating a value for business and earning higher profits. As
population of UK is increasing continuously and their demand is also changing which is
impacting on business environment. Moreover, people are participating in sports which is
increasing the demand of shoes and raising organisational profits. Due to growing and increasing
demand this sub sector is facing different issues such as lack of sale, Brexit effectiveness,
funding issues, changing preference and perception of customers, lack of suppliers and
unemployment in country. The description of two factors which can affects the footwear sub
sector are de
The two key issues which affects footwear sub sector are as described:
Brexit: This is consider as major issue in every sub sector which also affected the
footwear sub sector. Due to Brexit the UK has withdrawal from European Union that affected the
footwear sector. Such as before this war and Brexit the footwear businesses are free where any
one can import and export the footwear by paying limited taxation rates (Issue that affects sub
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sector, 2018). It was easy for businesses to deal with other country and run their business
successfully that resulted good economic condition of country and high profitability in UK
business. All footwear business concern were importing and exporting their products easily and
earned profits. It has been seen that, after Brexit the every sub sector get impact under this issue
and the growth of business are going down due to this issues. After Brexit, free trade become end
and create a serious risk to growth. For instance, the import and export of footwear and shoes
and any other footwear styles become more difficult as new trade agreement are following by
organisations (Trisakhon, Onputtha and Peamchai, 2018). The currency value is also reduced due
to Brexit which affected the footwear sub sector, increased in taxation rates which limits the
import and export the goods in other union. For instance, if the value of pound are decreasing
continuously that means the prices of footwear and other accessories will increase automatically
which can reduce the sale of goods. As resulted the sale of foot wear sub sector is going down to
facing this issue.
Illustration 1:
Exposure of UK exports for Footwear styles to EU tariffs and quotas under no deal Brexit.
2019
Source: Exposure of UK exports for Footwear styles to EU tariffs and quotas under no deal
Brexit. 2019
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Unemployment: This is another concerned issue which is increasing in footwear sub
sector. In UK, many people are not having job opportunities which are creating the
unemployment issue. This is affecting the all businesses as well as UK's economy as the
economical condition of people are going down due to lack of employment. People are free and
finding the job but not able to get such opportunities be cause of recession which is reducing the
GDP rate also. As the taste and preference of people are changing which are reducing the sale of
business organisation (UK exports for Footwear styles to EU tariffs, 2019). In UK, each sub
sector and foot wear sector are producing producing products less, which is decreasing the needs
of workers as resulted unemployment in country. It is affecting business organisation as they
cannot accomplish their selling and production target which becoming a issue for footwear sub
sector and its affective business environment negatively (Lu, 2017).
Illustration 2: Unemployment in UK, 2018
Source: Unemployment in UK, 2018
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This graph represent the unemployment rate in UK that states the number of
unemployment in past years which is affecting economy badly (Graphs and stats of UK
unemployment, 2019). According to this presentation 4.1% are people are unemployment which
is lower than past years (Virglerová, 2018). Its rate is not constant, fluctuating continuously
which are affecting the sub sector.
2. Uses of PESTLE model
PESTLE analysis is a tool management that uses by business organisation in order to
monitor the forces which are exists in business environment and affecting the business's sub
sector and economy. The PESTLE model in context to sub sector are as defined:
Political: Different factors are involves in this such as political policies, tax rates,
government regulations etc. are affecting the businesses. Brexit issue is categorised in political
factor which is affecting the footwear sub sector. Such as due to Brexit the government of UK
has been changes who also changed the taxation rate which affected the footwear sub sector. The
sale volume of this sector is declined due to changes in government regulation and tax rate which
has reduced the import and export of footwear. Resulting low productivity and profitability of
businesses and weakness of UK economical conditions.
Economic: It involves interest rate, foreign exchange rate, inflation, unemployment rate
etc. which can affect the sub sector or economy of particular country. Unemployment is
categorised in such factor where people are not having job opportunities and spending less. For
instance, UK's economy are becoming service industry in which it adopting new technology
which is becoming a reason of unemployment (Côrte-Real, Oliveira and Ruivo, 2017).
Employees, who are in manufacturing and other function are loosing their jobs because of high
technology. And workers are not able to adopt the new technology which is creating the
unemployment issue. This is affecting UK's economy as people are not spending money which is
reducing the GDP rate.
Social: This constitutes changes in lifestyle, changes in demand and preference, career
attitudes, education level, cultural aspects etc. This also can affect the footwear sub sector as
changing demand of customers due to fashion which can reduce the sale of business.
Technological: This constitutes new technology and other innovation which can affect
the business sub sector. Such as taking experience of new technology by firm can be costly or
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difficult to implement within organisation which affect the working activities of organisation in a
nation (Gorla, Chiravuri and Chinta, 2017).
Legal: This legal aspect of business environment includes employment laws, health and
safety act, labour laws, equal wages etc. that can affect the business sub sector. If businesses are
not following such aspects then it can face the issue in their business. So it is important to follow
the legal factor or laws to run a business successfully.
Environmental: A business need to focus on environmental factor that are related to
environment and ecology, affecting the sub sector and UK's economy. Businesses need to follow
the environmental safety rules so they can sustain in competitive environment. Therefore,
business sub sector can face this issue while during their business activities.
3. Discussion
a. Positive impacts
Issues are faced by business organisation while their business activities that can impacts
positively also. In context to LLOYD Shoe Co. Ltd. UK, are facing different types of issues
such as Brexit deal and Unemployment which is affecting business industry positively (About
LLOYD SHOE CO LIMITED, 2018). Due to Brexit, organisation and country is able to build
relation with other that helps to attracts the business and increase the profitability. It helps
respective company to increase their sale by building relation which is possible through Brexit.
The selected organisation whose business was situated in European nation and bearing more cost
while running can be shut down and establish new premises in UK and other country that will
helps to save the extra cost and increase demand of footwear resulted positive impact. It helps
respective company to increase the brand position in business environment (Beaulieu and
Pasquero, 2017).
Similarly, Unemployment is also helpful for sub sector which can keep under control the
employees and get work done according to them due to lack of job opportunities. LLOYD Shoe
Co. Ltd UK taking advantages of this issue, as it can retain the employees at low wages and get
work done for long time. It helps to employers to leave the plan of switching the job by
employees which creates a high confidence to increase profits at low cost of business
organisation. It helps to recruit the employees who are having specialisation in business activities
and ready to work at low wages. So this impacts positively on business sub sector to have
unemployment issue (Alsghaier and et. al., 2017).
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b. Negative impacts.
Despite of positive impacts of issues, it has negative impacts also which are impacts
business organisation badly. For one organisation it may be positively but at the same time it
impacts negatively on other business. For instance, Brexit issue can create pressure for LLOYD
Shoe Co. Ltd UK, to shut down and sale their existing business which are situated in European
nation. To launch new footwear business in other country respective company can face problems
as cost of organisation can be increase in order to acquire land and resources which can be
difficult for organisation. Moreover, it remove the free trade strategy which are increasing the
expenditure of organisation and reduce profits (Stout-Rostron, 2018).
On the other hand, Unemployment is a big issue that increases the stress level of
employees, create mental health issue and low self esteem which are influencing businesses
negatively. For instance, due to unemployment LLOYD Shoe Co. Ltd UK can not recruit skilled
person and they do not work properly which can reduce the productivity of shoes and other
footwear in their industry. The sale of foot wear sub sector go down due to having high
unemployment. Such as people are having less money to spend on footwear that can reduce the
productivity and sale of business organisation, resulting affected negatively.
4. Challenges faced as well as overcome during preparing reports
Report is prepared by all individual after getting experience that states how many
challenges are faced to reach the goals and complete report. As I faced many challenges during
preparing this report that are as defined:
Searching authentic data : This challenge was faced by me at the time of preparing this
report. The data authenticity is paying a important role to get the relevant and appropriate data
the helps to make decisions. As I faced huge challenges in finding the relevant and authentic data
because many sources are in front of me and I was confused to use the relevant data.
Collecting information: To collect the several and relevant information topic was very
difficult for me that had occur many challenges while preparing report. I faced problems to chose
the exact time, understanding about graphs statical data, managing the information and, poor
quality which make me feel some time to give up but I did not.
Challenges were overcome by me through following ways:
Taking other support: As I was faced many challenges to search the authentic data I
took support from my senior who helped me to search authentic data as well as report. My senior
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suggested me to use some websites, application, newspapers and others which helped to gather
the information (Sun and Smith, 2018).
Scheduling activities: At the time of collecting information, I need to make schedule
which priorities During collection of information, I made work schedules and prioritise between
activities which helps to understand all situati0on and make decision accordingly. With the help
of this all delegate my activities in to different time and work properly which helped to overcome
the challenges.
CONCLUSION
From the above report concluded that in business environment is the sum of internal and
external factors that are used in business and impacting on pertaining sector. It is important for
business organisation top deal with such factor and make efforts to overcome the issues.
Unemployment and Brexit are those issues which are affecting the business and impacting
positively and negatively. PESTLE analysis is used to control the business activities and
maintain profitability as well. Different challenged can be faced by an individual while
preparing a report such as data authenticity and collecting of information which are important to
overcome.
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REFERENCE
Books and Journal
Auz Vaca, J. G., 2018. The Environmental Law Dimensions of an International Binding Treaty
on Business and Human Rights. Braz. J. Int'l L.. 15. p.151.
Peracek, T., Noskova, M. and Mucha, B., 2017. Selected issues of Slovak business
environment. Economic and Social Development: Book of Proceedings, pp.254-259.
Trisakhon, C., Onputtha, S. O. and Peamchai, P., 2018. The Effect of External Business
Environment on Business Performance of Small and Medium Food Processing
Enterprises in Bangkok and Metropolitan Area. International Journal of Applied
Computer Technology and Information Systems. 8(1).
Lu, S., 2017, March. Study on Business English Teaching. In 2017 7th International Conference
on Education, Management, Computer and Society (EMCS 2017). Atlantis Press.
Virglerová, Z., 2018, September. The relationship between business environment and
innovativeness of SMEs in the Czech Republic and Slovakia. In European Conference
on Innovation and Entrepreneurship (pp. 867-XXII). Academic Conferences
International Limited.
Côrte-Real, N., Oliveira, T. and Ruivo, P., 2017. Assessing business value of Big Data Analytics
in European firms. Journal of Business Research. 70. pp.379-390.
Gorla, N., Chiravuri, A. and Chinta, R., 2017. Business-to-business e-commerce adoption: An
empirical investigation of business factors. Information Systems Frontiers. 19(3).
pp.645-667.
Beaulieu, S. and Pasquero, J., 2017. Reintroducing stakeholder dynamics in stakeholder
thinking: a negotiated-order perspective. In Unfolding stakeholder thinking (pp. 101-
118). Routledge.
Alsghaier, H., and et. al., 2017. The impact of big data analytics on business
competitiveness. Proceedings of the New Trends in Information Technology (NTIT.
Stout-Rostron, S., 2018. Business coaching international: Transforming individuals and
organizations. Routledge.
Sun, Y. and Smith, H., 2018. Supersonic business jet conceptual design in a multidisciplinary
design analysis optimization environment. In 2018 AIAA/ASCE/AHS/ASC Structures,
Structural Dynamics, and Materials Conference (p. 1651).
Online
About LLOYD SHOE CO LIMITED. 2018. [Online]. Available through:
<https://beta.companieshouse.gov.uk/company/01984976>
Issue that affects sub sector. 2018. [Online]. Available through:
<https://fashionunited.uk/news/fashion/6-effects-a-brexit-may-have-on-the-fashion-industry/
2016062020813>
UK exports for Footwear styles to EU tariffs. 2019. [Online]. Available through:
<https://marketrealist.com/2019/10/semiconductor-stocks-in-focus-amd-wdc-stx/>
Graphs and stats of UK unemployment. 2019. [Online]. Available through:
<https://www.economicshelp.org/blog/5695/alevel/unemployment-stats-and-graphs/>
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(Auz Vaca, 2018)(Peracek, Noskova and Mucha, 2017)(Trisakhon, Onputtha and Peamchai,
2018)(Lu, 2017)(Virglerová, 2018)(Côrte-Real, Oliveira and Ruivo, 2017)(Gorla,
Chiravuri and Chinta, 2017)(Beaulieu and Pasquero, 2017)(Alsghaier and et. al., 2017)
(Stout-Rostron, 2018)(Sun and Smith, 2018)
(Valero-Gil and et. al., 2017)(Huang and Lin, 2017)(Holubekova and Fordosova, 2017)(Crick
and Chew 2017)(Sheikh, Shahzad and Ishaq, 2017)
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