Organisations in a Global Economy

Business
Organisations in a
Global Economy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Pestle analysis..............................................................................................................................3
Porter’s Five Force Model...........................................................................................................5
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
There are numerous changes in global business environment that adversely impact on
growth and sustainability of firm. Company that operates in multinational or different countries
needs to adapt to external changes such as legal law or regulation made by government,
preferences of customers, innovation in technologies to increases its profitability and sales
volume. There are numerous enterprise that are planning to expand their business operation by
entering into new market or country thus manager of firm needs to complete analysis changes of
external environment for achievements of objectives. This report is about Superdry that is public
company established in 2003, 17 years before in retail sectors to earn more profitability. It also
discussed about analysis of business environment in order to make foreign direct investment or
allocation of resources in Switzerland. Several model and theories have been used in report to
conduct internal and external analysis of global business environment so that accurate decision
can be made for foreign direct investment.
Business Overview
Superdry was founded in 2003 and employees close to 5000 distinct individuals on various
operational positions within its hierarchical organisational structure. Superdry conducts its
operations in 65 different countries around the world through approximately 768 retail
establishments (About Us, 2020). Superdry specialises in selling clothing and fashion apparels to
the customers. For the fiscal year of 2019, the total net income generated by the operations of
Superdry totalled up to 95 million pounds sterling, with the total revenue generated by Superdry
totalling to 871.1 million pounds sterling. The main competitors of Superdry include Nike,
Tommy Hilfiger etc.,
MAIN BODY
Pestle analysis
Superdry is one of the most famous brands of UK in retail sectors that provide
qualitative, fashionable and unique design clothing, footwear, cosmetic and accessories to large

number of people that are living in society. But company is recently planning to expand or
allocate its resources to Switzerland in order to attract more customers and enhance overall
profitability of firm. Pestle analysis is powerful tool or model that helps in effective analysis and
evaluation of external factors such as government policies, economic condition of country,
preferences of customers, changes in technology, environment issues and legal implication that
adversely influence business operation and strategy (Teece, 2018). Manager of Superdry by
conducting pestle analysis or macro environment factors is able to take correct decision
regarding company needs to invest or allocate resources in Switzerland or not. Such as:
Political factors: There are certain rules, regulation and laws that are made by government
which needed to be abided by organisation for smooth operation of business and achievements of
objectives. These policies or rules, regulations are made for safety and protection of employees
and customers so that no harm can be caused by firm. Switzerland have stable political situation
thus Superdry can take advantages of this opportunity to grow and expand its business
(Antikainen and Valkokari, 2016). Free trade regulation and globalisation have provided
opportunity to expand its business in new emerging markets such as Switzerland in order to earn
more market share and profitability.
Economical factors: Switzerland is one of the largest growing economies in world with GDP
$703.8 billion in 2019 so Superdry have great opportunity to expands its business in such
growing economic to gain competitive advantages. There are highly skilled, knowledgeable and
qualified employees or labour that helps in effective completion of task and satisfaction of
customers requirements. High infrastructure and more purchasing power of customers illustrated
that it would be great market for Superdry in retail sector in future circumstances.
Social factors: There are various changes in taste and preferences of customers and mostly
people like to be part of organisation that have strong brand image. Therefore, Superdry has
strong brand image and active presence in online sites thus it provides opportunity to company to
easily allocate or invest its capital in new countries for earning maximum market share and
profitability. Company is highly focused towards recent trend and changes in customers
preferences and fashion industry which provide chance to firms to easily meet individual
expectancy. It offers varieties of products and services that have unique design and pattern is
able to attract more customers to be part of organisation (Daniels and et.al., 2016). It also uses