Entrepreneurial Strategy for Next: PESTEL and SWOT Analysis

ENTREPREEURIA
STRATEGY

INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
NEXT...........................................................................................................................................3
PESTEL analysis of Next............................................................................................................3
SWOT analysis of NEXT ...........................................................................................................7
Problem that can be faced by Next to sustain itself in the market ..............................................8
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................10
...................................................................................................................................................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
PESTLE analysis is that kind of tool which deals with factors related to macro
environment within an organization. Factors included in this analysis are political, economic,
social, technological, environmental and legal which affects formation of strategies in an

organization like 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: These factors have important role to play within an organization like Next. It
helps in attaining profitability in long term within certain country or market. Next has been
performing operations in various kinds of market and has deal with different political
environment. This has helped them in understanding risk associated and paved way for 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 has to keep in mind certain points and they are as follows:
 It makes political stability with importance of Retail sector country's economy.
 Invasion of military risk is involved.
 Corruption risk is involved within Customer Service sector.
 Bureaucratic interference is involved in retail industry.
 Framework of contract is used in retail sector to form legal contract.
 Intellectual property laws has an major role to play within it.
Economic factor: In this majorly economical factors are involved that directly affects economy
of an organization. It includes inflation rate, savings rate, interest rate, foreign exchange,
unemployment and various factors are involved within it. Micro economic factors plays an
effective role within an organization which helps in gaining of competitive edge to an
organization like Next. It uses these factors like growth and inflation rate in order to make sure
that economic stability is indicated. It helps in understanding 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). ceratin
things are to be kept in mind by Next to deal with this factor that is explained as follows: