Global Business Environment
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This report explores the impact of the global business environment on Wilko Retail Ltd, a British retail chain. It includes a PESTEL analysis of the company, as well as a SWOT analysis. The report also examines the key drivers that can impact the company's marketing and HRM functions.
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
PESTEL analysis of Wilko Retail Ltd........................................................................................1
SWOT analysis of Wilko Retail Ltd...........................................................................................3
Examine the ways in which these key drivers can impact on Wilko Retail Ltd........................3
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
PESTEL analysis of Wilko Retail Ltd........................................................................................1
SWOT analysis of Wilko Retail Ltd...........................................................................................3
Examine the ways in which these key drivers can impact on Wilko Retail Ltd........................3
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5
INTRODUCTION
Global business environment can be define as the environment of different country and
and their business. Factors of global business environment could affect the decision making on
resources and use and capability of local organization. Global business environment can be
classified into two factors internal environment and external environment. This report includes
various topics in the context of respective company Wilko Retail Ltd, company is British retail
chain that deals with home ware and house hold goods. Company was founded in 1930, by
James Kemsey Wilkinson. There are various topics that included in this report such as, PESTEL
analysis of respective company, SWOT analysis and key drives of SWOT analysis which could
affect the business of Wilko Retail Ltd (Ferraro, and Briody, 2017).
TASK
PESTEL analysis of Wilko Retail Ltd.
PESTEL analysis helps organizations to examine macro environment that have an impact
on the decision making process of company. This analysis is use in understanding of corporate
strategies planning process of an company and pros and cons of corporate strategies. In the
context of Wilko Retail Ltd, to examine external factors of company PESTEL analysis is used
below:
Political factors: This factors refers to how government policies intervene in the
company and other factors affect business of particular organization. In the terms of respective
company Wilko Retail Ltd, as one of the established retailer in the world company must follow
policies and regulation in other to protract its products. Changing political instability could affect
businesses but as company is already well known and established so it could not effect the
business of Wilko Retail Ltd (Hakanen, Helander, and Valkokari, 2017).
Economical factors: This factors includes various aspects of economy and change in
economy affect the business of company. In the context of respective Wilko Retail Ltd,
economic factors plays major role in the retail business of company. It is very important of
company to have eye on all economical changes in counties that can affect their decision making
process. To deal with economy factors Wilko Retail Ltd must price their product according to
economy inflation so that they can increase their sales of production.
1
Global business environment can be define as the environment of different country and
and their business. Factors of global business environment could affect the decision making on
resources and use and capability of local organization. Global business environment can be
classified into two factors internal environment and external environment. This report includes
various topics in the context of respective company Wilko Retail Ltd, company is British retail
chain that deals with home ware and house hold goods. Company was founded in 1930, by
James Kemsey Wilkinson. There are various topics that included in this report such as, PESTEL
analysis of respective company, SWOT analysis and key drives of SWOT analysis which could
affect the business of Wilko Retail Ltd (Ferraro, and Briody, 2017).
TASK
PESTEL analysis of Wilko Retail Ltd.
PESTEL analysis helps organizations to examine macro environment that have an impact
on the decision making process of company. This analysis is use in understanding of corporate
strategies planning process of an company and pros and cons of corporate strategies. In the
context of Wilko Retail Ltd, to examine external factors of company PESTEL analysis is used
below:
Political factors: This factors refers to how government policies intervene in the
company and other factors affect business of particular organization. In the terms of respective
company Wilko Retail Ltd, as one of the established retailer in the world company must follow
policies and regulation in other to protract its products. Changing political instability could affect
businesses but as company is already well known and established so it could not effect the
business of Wilko Retail Ltd (Hakanen, Helander, and Valkokari, 2017).
Economical factors: This factors includes various aspects of economy and change in
economy affect the business of company. In the context of respective Wilko Retail Ltd,
economic factors plays major role in the retail business of company. It is very important of
company to have eye on all economical changes in counties that can affect their decision making
process. To deal with economy factors Wilko Retail Ltd must price their product according to
economy inflation so that they can increase their sales of production.
1
Social factors: This factors are related to culture and demographic trends of society. This
treads changes according to the culture and beliefs of country. In the terms of respective
organization, Wilko Retail Ltd, in current scenario people if following tread of buying product in
bulk, company is planed out about its stores to facilities this services to their customers. The
choice of product also depend on different culture of country, Wilko Retail Ltd (Hamilton, and
Webster, 2018) is focus on this factors so that they can provide actual services and product.
Political factors: This factors refers to how government policies intervene in the
company and other factors affect business of particular organization. In the terms of respective
company Wilko Retail Ltd, as one of the established retailer in the world company must follow
policies and regulation in other to protract its products. Changing political instability could affect
businesses but as company is already well known and established so it could not effect the
business of Wilko Retail Ltd(Kokodey, Gnezdova, and Lomachenko, 2018).
Economical factors: This factors includes various aspects of economy and change in
economy affect the business of company. In the context of respective Wilko Retail Ltd,
economic factors plays major role in the retail business of company. It is very important of
company to have eye on all economical changes in counties that can affect their decision making
process. To deal with economy factors Wilko Retail Ltd must price their product according to
economy inflation so that they can increase their sales of production.
Technological factors: This factors is link with innovation in company and over all
economy. In the context of respective Wilko Retail Ltd organization, it is important for company
to keep changing according to technological changes in out side world. Thus, respective
organization has manges to shifts its services to online services. They provide online shopping
apps and home delivery of products.
Legal factors: This factor involve changes in legal policies of government and its impact
on the decision making process of company. Legal factors defines terms and conditions that
define what business can be and what can not. Respective company Wilko Retail Ltd, company
is following both national as well as international law of countries, and dose not have any
negative effect on its potion in the market.
Environmental factors: This factors concern with the all ecological factors that effect
the business of particular organization. In the terms of respective firm Wilko Retail Ltd,
company has undertaken various steps to protect and make sustainable environment for society.
2
treads changes according to the culture and beliefs of country. In the terms of respective
organization, Wilko Retail Ltd, in current scenario people if following tread of buying product in
bulk, company is planed out about its stores to facilities this services to their customers. The
choice of product also depend on different culture of country, Wilko Retail Ltd (Hamilton, and
Webster, 2018) is focus on this factors so that they can provide actual services and product.
Political factors: This factors refers to how government policies intervene in the
company and other factors affect business of particular organization. In the terms of respective
company Wilko Retail Ltd, as one of the established retailer in the world company must follow
policies and regulation in other to protract its products. Changing political instability could affect
businesses but as company is already well known and established so it could not effect the
business of Wilko Retail Ltd(Kokodey, Gnezdova, and Lomachenko, 2018).
Economical factors: This factors includes various aspects of economy and change in
economy affect the business of company. In the context of respective Wilko Retail Ltd,
economic factors plays major role in the retail business of company. It is very important of
company to have eye on all economical changes in counties that can affect their decision making
process. To deal with economy factors Wilko Retail Ltd must price their product according to
economy inflation so that they can increase their sales of production.
Technological factors: This factors is link with innovation in company and over all
economy. In the context of respective Wilko Retail Ltd organization, it is important for company
to keep changing according to technological changes in out side world. Thus, respective
organization has manges to shifts its services to online services. They provide online shopping
apps and home delivery of products.
Legal factors: This factor involve changes in legal policies of government and its impact
on the decision making process of company. Legal factors defines terms and conditions that
define what business can be and what can not. Respective company Wilko Retail Ltd, company
is following both national as well as international law of countries, and dose not have any
negative effect on its potion in the market.
Environmental factors: This factors concern with the all ecological factors that effect
the business of particular organization. In the terms of respective firm Wilko Retail Ltd,
company has undertaken various steps to protect and make sustainable environment for society.
2
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SWOT analysis of Wilko Retail Ltd.
SWOT analysis helps organization to understand the strength, weakness, opportunity, and
threats. This analysis helps in decision making process according to company's SOWT analysis.
Below is detail study of SWOT analysis of Wilko Retail Ltd.
Strength In the terms of respected company, according to the PESTEL analysis of
company is can be analyse that the biggest strength of Wilko Retail Ltd is their
brand image and customer loyalty.
Weakness From the above PESTEL analysis of Wilko Retail Ltd, (Uluskan, and Godfrey,
2018) it can be analyse that the weakness of company is political instability and
government policies of different countries.
Opportunity There are many opportunities for Wilko Retail Ltd according to PESTEL
analysis. Company have new technological advancement opportunity in their
retail industry that could be beneficial for organization in future.
Threats Environmental changes could be a threats for company. Respective company
Wilko Retail Ltd, is facing issues about changing climate of country.
Examine the ways in which these key drivers can impact on Wilko Retail Ltd.
Impact on marketing function: Brand image is main key drivers that have impact on
the growth of company. Marketing strategies of Wilko Retail Ltd (Wei, Thurasamy, and Popa,
2018) is most effective that helps company to have stable growth in market. They are using
content marketing that help them in improvement of position in market. Thus, organization has
strong position in retail industry and have great marketing strategies that help company to gain
loyal customer base.
Impact on HRM function: HRM function of respective company Wilko Retail Ltd is
strong, they have well trained and skilled employees that help them to increase their productivity.
There various training program company run to improve the effectiveness of the company's
workers. They train them to complete their task on time in most effective manner. Thus, HRM
function of Wilko Retail Ltd helps them to increase their productivity and build strong image in
the mind of their customers.
3
SWOT analysis helps organization to understand the strength, weakness, opportunity, and
threats. This analysis helps in decision making process according to company's SOWT analysis.
Below is detail study of SWOT analysis of Wilko Retail Ltd.
Strength In the terms of respected company, according to the PESTEL analysis of
company is can be analyse that the biggest strength of Wilko Retail Ltd is their
brand image and customer loyalty.
Weakness From the above PESTEL analysis of Wilko Retail Ltd, (Uluskan, and Godfrey,
2018) it can be analyse that the weakness of company is political instability and
government policies of different countries.
Opportunity There are many opportunities for Wilko Retail Ltd according to PESTEL
analysis. Company have new technological advancement opportunity in their
retail industry that could be beneficial for organization in future.
Threats Environmental changes could be a threats for company. Respective company
Wilko Retail Ltd, is facing issues about changing climate of country.
Examine the ways in which these key drivers can impact on Wilko Retail Ltd.
Impact on marketing function: Brand image is main key drivers that have impact on
the growth of company. Marketing strategies of Wilko Retail Ltd (Wei, Thurasamy, and Popa,
2018) is most effective that helps company to have stable growth in market. They are using
content marketing that help them in improvement of position in market. Thus, organization has
strong position in retail industry and have great marketing strategies that help company to gain
loyal customer base.
Impact on HRM function: HRM function of respective company Wilko Retail Ltd is
strong, they have well trained and skilled employees that help them to increase their productivity.
There various training program company run to improve the effectiveness of the company's
workers. They train them to complete their task on time in most effective manner. Thus, HRM
function of Wilko Retail Ltd helps them to increase their productivity and build strong image in
the mind of their customers.
3
CONCLUSION
From the above information it can be conclude that global business environment have impact on
the business of organization in various ways. From the PESTEL analysis of respective company
it can be analyse that company has strong presence in retail market and all external factors could
not affect its business. SWOT analysis of organization helps in understanding the opportunities
and threats and strength and weakness of company. In the last key drives that have impact on
marketing and HRM function of company and help them to build their brand identity.
4
From the above information it can be conclude that global business environment have impact on
the business of organization in various ways. From the PESTEL analysis of respective company
it can be analyse that company has strong presence in retail market and all external factors could
not affect its business. SWOT analysis of organization helps in understanding the opportunities
and threats and strength and weakness of company. In the last key drives that have impact on
marketing and HRM function of company and help them to build their brand identity.
4
REFERENCES
Books and Journals
Ferraro, G.P. and Briody, E.K. 2017. The cultural dimension of global business. Taylor &
Francis.
Hakanen, T., Helander, N. and Valkokari, K. 2017. Servitization in global business-to-business
distribution: The central activities of manufacturers. Industrial Marketing Management, 63,
pp.167-178.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Kokodey, T., Gnezdova, I. and Lomachenko, T. 2018. October. Modeling the global business
environment based on polycyclic theory. In The International Science and Technology
Conference" FarEastŠ”on" (pp. 487-499). Springer, Cham.
Uluskan, M. and Godfrey, A.B. 2018. Business environment-supply chain framework and
benchmarking supply chain structures. Benchmarking: An International Journal.
Wei, L.H., Thurasamy, R. and Popa, S. 2018. Managing virtual teams for open innovation in
Global Business Services industry. Management Decision.
5
Books and Journals
Ferraro, G.P. and Briody, E.K. 2017. The cultural dimension of global business. Taylor &
Francis.
Hakanen, T., Helander, N. and Valkokari, K. 2017. Servitization in global business-to-business
distribution: The central activities of manufacturers. Industrial Marketing Management, 63,
pp.167-178.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Kokodey, T., Gnezdova, I. and Lomachenko, T. 2018. October. Modeling the global business
environment based on polycyclic theory. In The International Science and Technology
Conference" FarEastŠ”on" (pp. 487-499). Springer, Cham.
Uluskan, M. and Godfrey, A.B. 2018. Business environment-supply chain framework and
benchmarking supply chain structures. Benchmarking: An International Journal.
Wei, L.H., Thurasamy, R. and Popa, S. 2018. Managing virtual teams for open innovation in
Global Business Services industry. Management Decision.
5
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