Entrepreneurial Strategy for Next: PESTEL and SWOT Analysis

ENTREPREEURIA
STRATEGY

INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
NEXT...........................................................................................................................................4
PESTEL analysis of Next............................................................................................................4
SWOT analysis of NEXT............................................................................................................8
Problem that can be faced by Next to sustain itself in the market...............................................9
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
Entrepreneurial strategy is that kind of strategy through which an organization establishes
and re-establishes its fundamental set of relationships with it environment. In other words these
are those strategies that are responsible for establishing of decision making process within an
organization and affecting the process involved in it. These strategies are related to various
aspects of business. Scope of this strategy is wider because it covers those things that is
important for an organization to grow itself. The following file is going to be based over Next
that is larger retailer in UK and has variety of products to sell. In these file things that is going to
cover is based upon PESTEL analysis, SWOT analysis and ANSOF matrix. Further in this file
problem that can be faced by an organization is going to be explained. Also appropriate solutions
going to be provided for problem face by an organization.
MAIN BODY
NEXT
Next is an British multinational clothing, footwear and home products retailer. It has its
headquarter in Ender by, Leicestershire. It has around 700 stores which circa 500 are in United
Kingdom and rest 200 is across Europe, Asia and Middle East. Next being a popular retailer it
has various wide ranges of products that are of various types. Next consists of two types of
factors within an organization. These factors can have very adverse affect over an organization
because of their tendency to affect overall working procedure of an organization. These factors
are responsible for growth of company. External factors are those type of factors that is
responsible for creating an impact upon a company through external forces. External factors are
those factors which affect an organization from inside. In order to mark these factors two
analysis are done that is SWOT and PESTEL.
PESTEL analysis of Next
PESTEL analysis is a strategic tool to analyze the macro environment of the organization.
PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors
that impact the macro environment of Next (Alayo and et. al., 2019). Changes in the macro-

environment factors can have a direct impact on not only the Next but also can impact other
players in the Retail. PESTEL analysis provides great detail about operating challenges Next will
face in prevalent macro environment other than competitive forces. For example an Industry may
be highly profitable with a strong growth trajectory but it won't be any good for Next if it is
situated in unstable political environment. The factors involved in this analysis has been
explained as follows:
Political factor: Political factors play a significant role in determining the factors that can
impact Next's long term profitability in a certain country or market. Next is operating in Retail in
more than dozen countries and exposes itself to different types of political environment and
political system risks. It has achieved success in such a dynamic Retail industry across various
countries and is also able to diversify the systematic risks of political environment. These are
some of the important factors that have to be kept in mind which can create drastic impact over
Next in relation to policies that are being formed by the government.
 Political stability and importance of Retail sector in the country's economy.
 Risk of military invasion
 Level of corruption - especially levels of regulation in Consumer Services sector.
 Bureaucracy and interference in Retail industry by government.
 Legal framework for contract enforcement
 Intellectual property protection
Economic factor: The Macro environment factors like inflation rate, savings rate, interest rate,
foreign exchange rate and economic cycle determine the aggregate demand and aggregate
investment in an economy. While micro environment factors such as competition norms impact
the competitive advantage of the firm. Next can use country’s economic factor such as growth
rate, inflation & industry’s economic indicators such as Retail industry growth rate, consumer
spending etc to maintain the growth of itself within growing competition of market within the
country. Such factor has an very important role to play for an organization and such factor can
impact a company in both positive and negative manner (Acs and et. al. 2017). If policies for is
going to increase the