Business Leadership and Business Environment Case Study

This case study focuses on the Business Leadership and Business Environment of Boohoo, an online fashion retailer. It includes SWOT and PESTLE analysis, evaluation of changes in PESTEL factors, suitable leadership styles, and corporate social responsibilities.

Context of Business
Leadership and Business
Environment Case Study

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
SWOT Analysis and PESTLE Analysis of company..................................................................1
TASK 2............................................................................................................................................4
Evaluation of how changes in PESTEL factors has influenced the Opportunities and Threats
business. Critically comment on how the business is addressing their Strengths to negate
Threats and Weakness affecting their Opportunities...................................................................4
TASK 3............................................................................................................................................5
Recommending suitable leadership style from Daniel Goleman’s (2000) that will help in
meeting business objectives.........................................................................................................5
TASK 4............................................................................................................................................6
Corporate Social Responsibilities................................................................................................6
TASK 5............................................................................................................................................7
Writing a reflection report on experience in writing this report..................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
In present era, business concerns employ ample number of strategies for gaining
sustainable competitive edge over rivals. Business environment is totality of factors that are
external to company and influences its functioning greatly. Leadership is competence of a person
to guide and influence others for specific working. Many a times, outcomes of company are
influenced through strategies of competotos, dynamisms in business environment along with
potential of leadership influences on strategy and response. For the project, Boohoo is selected
company which is UK based online fashion retailer established in 2006. It is specilaised in own
brand fashion clothing having approximate to 36000 products (Boohoo, 2021).
The project highlight SWOT analysis and PESTLE analysis of the entity. It also includes
leadership styles from Daniel Goleman and corporate social responsibilities. At last, reflecting is
written about experince of writing the report.
TASK 1
SWOT Analysis and PESTLE Analysis of company
SWOT Analysis
Strategic planning and management technique employed by ventures to determine
strengths, weaknesses, opportunities along with threats concerned with future or competition is
SWOT Analysis (Fox, Davis and Baucus, 2020). It is also known as situational analysis which
provide visibility to managers about current position and measuring overall performance. In
Boohoo, managers uses SWOT Analysis so to analyse strengths that in turn assist in better
market penetration for meeting targets. SWOT Analysis of Boohoo is below:
Strength Weakness
 Automation activities has brought
quality consistency in products of
Boohoo.
 Boohoo has a broad list of products
which its business to cater demands
of its customers varying
demographics and age group.
 Boohoo has encountered a diminishing
liquidity position which impacts in
creating stress for company to evenly carry
forward its operational processes. This
limited liquidity has restricted company's
ability to expand its operations or to make
long term profitable investments for
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 Company has a strong build
network of dealers and distribution.
This is because company operates in
different regions of UK and various
countries of world.
business growth (Harrison, Burnard and
Paul, 2017).
 As Boohoo is mainly focusing in fashion
this makes company ignore its research
and development in investment which
results in not being capable to compete
with its competitor with regards of
innovation.
Opportunities Threats
 New taxation policy can create an
opportunity to earn more profits for
Boohoo.
 Changes in trends in customer
behaviour can create an opportunity
for Boohoo by developing new
product categories along with new
revenue streams.
 New environmental policy can create
stress for Boohoo because of its some
existing products packaging and
production process.
 Growing roots of local distributors is also
a threat as they provide goods at a low cost
which can impact in breaking customer
cycle of Boohoo.
PESTLE Analysis
PESTLE analysis is a framework used by companies to determine macro environment that
influence its business operations (HIDIROĞLU, 2020). Management of Boohoo uses this
analysis to identify external factors which affects its operational activities. Application of
PESTLE analysis in relation with Boohoo is as below:
Political: Political stability can be seen in UK. But with emergence of Brexit effect in trade
between UK and EU has affected businesses of UK. Boohoo has also been affected by this effect
as the entity had to stop its trading activities from EU which has impacted sales proportion of the
company. This resulted in decrease in turnover for this retail organisation.
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Economical: UK is a country with high consumer disposable rate. Growth rate of retail
industry can also be seen in UK. This creates positive as well as negative impact in operations of
Boohoo as increase in industry growth rate makes increase in its competitors in market. While
high disposable rate makes company to attract more customers in order to gain profit.
Social: Increase in use of smart phones and internet made demographics of UK being
updated with latest trends in fashion (Hui, Phouvong and Phong, 2018). Boohoo comes up with
new trendy products over time to influence demographics of UK in order to gain long term
sustainability. Nowadays social media is one of the stronger influencer in retail sector. This made
Boohoo reach social media influencers to promote its products as well as attract more audience.
Technological: Technology expansion and update can be seen in UK as compared to other
countries. With technologies up gradation in country made Boohoo to innovate 3D printed
clothes in market which has attracted customers and many fashion industries in market.
Company has adapted latest techniques of marketing like promoting its products on social media
platforms as well as had a perfect use of digital marketing techniques.
Legal: UK is a developed country also known for its strong legislature. Strong laws has
been implemented by government to protect customers right as well as companies from fraud-
ism. Anti-trust laws have been implemented in retail industry to provide protection to offerings
of company. Boohoo has been into clash between its competitor USDAW over Covid-19 masks
that was launched by the company. Strong laws of UK helped company in getting justice over
the conflict with its competitor.
Environmental: UK looks after essential measures with regards to provide protection to its
environment like ban on plastic usage in country (Temelkova, 2017). Boohoo has adapted paper
made bags as well as 100% recyclable bags to protect environment from carbon emission.
Company is also adapted energy saving machines for its production process as well as other
operations.
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TASK 2
Evaluation of how changes in PESTEL factors has influenced the Opportunities and Threats
business. Critically comment on how the business is addressing their Strengths to negate
Threats and Weakness affecting their Opportunities.
From the analysis in TASK 1, it has been evaluated that changes in PESTLE factors has
influenced opportunities and threats for Boohoo like changes in taxation policy by government
of UK has created an opportunity for Boohoo to earn more profits. New taxation policy has
decreased rate of GST on cloths which impacts in increase in revenue for company (Joiner,
2019). Change in customers taste of different demographics has given an opportunity to Boohoo
to offer fashionable products to its target audience depending on age groups. Increase of social
media can also be beneficial for company if it looks after social influencer to promote its
products as well as social media marketing sites for its promotional activities. While new
environmental policy can be a topic to stress for Boohoo because of its some existing products
packages. Recent changes in environmental laws can impact company's profits as company
manufactures its products in bulk. Making changes according to new environmental law can
result in increase of its cost which can also result in increase in price of its product that can
affect sales proportion. Growing rate of retail industry is also a matter of stress for Boohoo as it
increases level of competition for company in market.
Boohoo is looking forward to negate its threat from its strengths by adapting automation
activities which includes use of latest technologies for manufacturing its products and packaging
products. This will help company to invalidate threats from new environmental policy by
producing goods by keeping environmental safety measures in mind. As well as with its strong
network of dealers and distribution company can compete local distributors by supplying quality
products at a reasonable rate to its target audience (Kim, 2019). In addition to this with its broad
list of products, Boohoo can meet customers needs and demands which will also impact in
lowering threats from local competitors for company. While weakness of Boohoo can negate its
opportunities as company mainly concentrates on fashion which makes it neglecting its research
and development unit. This can impact as unable to identify changes in trends in customers
behaviour which will result in decrease in sales proportion as well as profit generation for
company. Neglecting research and development in innovation can also make the company loose
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opportunity to take benefits of new taxation policy as company will be in capable to enhance its
sales and gain profit.
TASK 3
Recommending suitable leadership style from Daniel Goleman’s (2000) that will help in meeting
business objectives
Leadership style is said to the classification of the ways a person behaves while guiding,
influencing or leading an individual of group of people. All businesses require a leadership style
and great leadership role to take people towards common goals. Daniel Goleman has defined six
leadership styles that are also popular as six emotional leadership styles that are used by leaders
of company for ensuring healthy working environment. As per Daniel Goleman Leadership Style
framework, leaders should posses potentiality for dealing with dynamic environment on work
floor (Kim, 2019). Mahmud Kamani is Joint Chief Executive of Boohoo who inspires others and
have built a strong team as well as engendered loyalty from ample number of long serving
personnel. In aspect to Mahmud Kamani, mentioned below are certain leadership styles that
assist in meeting business objectives:
Affiliative leadership style: The leadership style is related to harmonising team in case of
negative ambiance is authoritative leadership style. If Mahmud Kamani of Boohoo adopted
authoritative style, they can make attempts for solving conflicts in group for making them
collaborate to contribute in attainment of business objectives.
Democratic leadership style: The leadership style through which a leader appreciates
contribution of each member of team by participating in processes of decision making (Kramer,
Page and Klemic, 2019). If Mahmud Kamani of Boohoo works by using democratic style then
they can engage employees to made proactive decisions to attain objectives.
Coaching leadership style: Leadership style which emphasises towards persona
development of members of team is termed to coaching leadership style. In Boohoo, if Mahmud
Kamani will work with coaching style, they will attempt to recognise strengths and weaknesses
of all employees along with encourage them for improvising their capabilities for achieving
organisational goals.
Coercive leadership style: It is command together with control style that relied in putting
force on employees for performing what they are told. If Mahmud Kamani adopts coercive
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leadership style at Boohoo then they will tell personnel to execute particcular tasks without
questioning and complaining so to reach desired business objectives.
Pacesetting leadership style: It is related to outcomes addition to high quality work
(Sangeetha and Kumaran, 2018). Within Boohoo, if Mahmud Kamani works with pacesetting
leadership style then they will expect the team to carry out working indepedently for delivering
excellent outcomes resulting to achieving business objectives.
Authoritative leadership stsyle: The style that is associated with positively energising
team for reaching objectives contributin to goal attainment is authoritative leadership style. If
Mahmud Kamani of Boohoo works with authoritative style they will motivate team members to
contribute in field, show empathy for employees and deal with variant emotions to lead team in
right direction of objective achievement.
In Boohoo, business objectives are achieved by Mahmud Kamani through working with
democratic leadership style. With this, Mahmud Kamani encourages involvement, engagement
as well as participation of team members. Workplace ambience with democratic leaders yield
employees with high morale that are motivated for generating together with offering creative
solutions to achieve desired business objectives (Lei, Leaungkhamma and Le, 2020). The leader
encourages workforce for establishing workable objectives and recognising achievements.
TASK 4
Corporate Social Responsibilities
A practice as well as policy that are undertaken by business concerns which are intended
for possessing positive influence on the globe are corporate social responsibility. In aspect to
Boohoo, corporate social responsibilities are bifurcated into mentioned types:
Environmental responsibility: It is a belief that business concerns must behave in
environmentally friendly manner (Loh and Lau, 2019). In aspect to Boohoo, the company is
responsible for putting efforts to reduce carbon emission, recycle products and give back to
environmental causes. The company shows that it care for improving together with preserving
environment and have build solid reputation as environmental leader.
Ethical responsibility: It is about ensuring that the venture is carrying out operations in
ethical and fair ways. Boohoo embrace ethical responsibility to attain fair treatment of all
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stakeholders comprising suppliers, leadership, customers, employees and investors. It sources its
materials to make clothes as per free trade standards.
Philantrophic responsibility: It is contribution of venture for actively making the society
and globe a better location. As per Benett (2018), it is analysed that owners of online fashion
brand that is Boohoo have donated worth of £500 K of toys to charity for disadvantged children
in Greater Manchester (Benett, 2018). Along with this, it also gives back to community through
campaigns and other forms.
Economic responsibility: It is practice of an establishment backling all of its decisions
based on finance in its commitment for doing good in all the areas. In context to Boohoo, end
goal of the business is not to maximise profits, despite, positively impacting people, society
addition to environment.
TASK 5
Writing a reflection report on experience in writing this report
Reflection writing is a practice wherein a person describes either a real or imaginery
event or memory to add meaning. My experince in writing the report that is “Context of Business
Leadership and Business Environment” is expressed through Gibbs Reflective Cycle so to give
structure to learning from my experience. My experience is covered in mentioned below six
stages of the cycle:
Description: For the report, I decided to divide all the sections so that I am able to
conduct research about all. I expected that I can just piece the assigment day before deadline,
meaning I have not scheduled time to sit as well as write it. I have collected information about
Boohoo, conducted its SWOT Analysis and PESTLE Analysis for analysing its micro and macro
environment. Further, I have also collected information related to leadership styles by using
Daniel Goleman so to analyse suitable leadership style that help in meeting business objectives. I
had given myself huge time prior deadline to write all sections, but I did not plan great deal for
rewriting it again, in case, something went to go not correct.
Feelings and thoughts: Before I realised that I still had huge workings to complete, I was
more happy as well as thought that I was smart that I bifurcated my working. But when I realised
that I could not hand in the project like it meant to be, I got frustrated. At same time, I was
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certain that it will work which brough little motivation for writing it. I also felt disappointed as I
faced complexities in collecting information from various number of sources.
Evaluation: While writing the report, there were things that went good and worked well.
My good experince in report writing was I produced good quality of working for determined
deadline. The fact that information gathering was compelx which motivated me for harder work.
It contributed positively in my working ethic for the individual report. However, the thing that
clearly did not went well was using huge number of sources to collect content for the report
(Mehta, 2020).
Analysis: It is analysed by me that my initial bifurcation of working to write the report
went well as with this, I became aware about topics that I have to cover for report writing or
completion of project. I have divided the working as per the time I had to complete the report. I
have experienced writing the report prior and founded that when I work by myself, I enjoy
carring out practices in areas that matches my strength. I believe things in the working did not
went because of not managing time properly. Also, not planning how I will write and structure
the sections put me in such situation.
Conclusion: While writing the report, I learned that proper structuring and planning is
essential. From the report writing, it is concluded that sources plays great role in collecting
information and completing working through putting all sections together. I will continue to use
sources as per topics and identify my strengths to use roles effectively inn projects. I learnt that
many a time, we are bound to challenge decisions that are against pertaining situations. In
futurem to handle similar situations better, I need to develop time management and project
structuring.
Action plan: To improve my time management skill in future similar working, I will take
actions such as starting working early, prioritising tasks, organising resources, learning
productivity patterns and using technology for being accountable. At same time, to develop
project management skill, I will set objectives, create timelines and being proactive.
CONCLUSION
From the presented information, it is concluded that effective leadership style lies in
bringing out best from others. In an organisation, leader adopts styles to host wide range of
practices for taking care of venture and running it in success manner. By conducting SWOT
analysis and PESTLE analysis, business managers scan micro and macro environment for
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devising strategies to achieve objectives. In a company, increasing significance of corporate
social responsibility influences organisation like never seen earlier.
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REFERENCES
Books and journals:
Fox, C., Davis, P. and Baucus, M., 2020. Corporate social responsibility during unprecedented
crises: the role of authentic leadership and business model flexibility. Management
Decision.
Harrison, C., Burnard, K. and Paul, S., 2017. Entrepreneurial leadership in a developing
economy: a skill-based analysis. Journal of Small Business and Enterprise
Development.
HIDIROĞLU, D., 2020. Strategic leadership: Best practical leadership style to business
strategies in the period of COVID-19 Epidemic. Turkish Studies-Social Sciences. 15(4),
pp.1945-1955.
Hui, L., Phouvong, S. and Phong, L. B., 2018. Transformational leadership facilitates innovation
capability: The mediating roles of interpersonal trust. International Journal of Business
Administration. 9(3), pp.1-9.
Joiner, B., 2019. Leadership agility for organizational agility. Journal of Creating Value. 5(2),
pp.139-149.
Kim, S. L., 2019. The interaction effects of proactive personality and empowering leadership and
close monitoring behaviour on creativity. Creativity and Innovation Management. 28(2),
pp.230-239.
Kramer, M., Page, L. and Klemic, G., 2019. Evolving leadership: New clues and cues toward
environment and context. Journal of Leadership Studies. 12(4), pp.82-85.
Lei, H., Leaungkhamma, L. and Le, P. B., 2020. How transformational leadership facilitates
innovation capability: the mediating role of employees' psychological
capital. Leadership & Organization Development Journal.
Loh, K. L. and Lau, D. H., 2019. Blue ocean leadership in lean sustainability. International
Journal of Lean Six Sigma.
Mehta, M., 2020. Effect of leadership styles on corporate entrepreneurship: a critical literature
review. Organization Development Journal. 38(2), pp.65-74.
Sangeetha, P. and Kumaran, S., 2018. Impact of shared leadership on cross functional team
effectiveness and performance with respect to manufacturing companies. Journal of
Management research. 18(1), pp.44-55.
Temelkova, M. P., 2017. A Model determining Leadership in the Business Organizations under
the Conditions of the Fourth Industrial Revolution. In Current scientific research (pp.
188-192).
Online:
Bennett. L. 2018. Boohoo founders Umar and Samir Kamani donate £ 500,000 of toys to local
charity. [Online]. Available through: <https://ilovemanchester.com/boohoo-founders-
umar-and-samir-kamani-donate-500000-of-toys-to-local-charity>
Boohoo. 2021. [Online]. Available through: <https://www.boohoo.com/>
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