Impact of PESTEL and Porter's Five Forces on Harrods

Business Report

Table of Contents
INTRODUCTION ............................................................................................................................3
Background of the chosen company with a brief history and product or services offered by that
organisation...................................................................................................................................3
Impact of two PESTEL factors on the chosen organisation..........................................................4
Impact of three Porter's five forces on the chosen organisation....................................................5
Analyse three activities form the Porter's Value Chain and importance of these activities for the
chosen organisation.......................................................................................................................7
How a business could deploy the information technology to improve its business and address
issues regarding the information technology.................................................................................8
CONCLUSION ...............................................................................................................................10
REFERENCES.................................................................................................................................11

INTRODUCTION
The information technology management is a broad term which is used to describe
planning, directing and coordination of an activity which is related to the information system.
Resources managed by the information technology specialists are virtually limitless. It includes
several networks, software, cloud program, hardware, data collection tool, mobile device and
emerging technologies (Ahmed and Ballard, 2022). The company chosen for this report is
HARRODS, which is a departmental store. It was founded during 1849 and its headquarter is
situate din London, England. This report will cover the history of chosen company, PESTLE
analysis, Porter's five forces, porter's Value Chain, issues or concern regarding deploy information
system to improve business.
Background of the chosen company with a brief history and product or services offered by that
organisation.
HARRODS Company is a upmarket department store which is situated on the Brompton
Road within Knightsbridge, London. Its brand is recognised at worldwide, its Knightsbridge store
has around 1 million square feet of the selling space with approximately 220 different
departments’ stores. Its prestige and global reputation is instilled through their own brand values.
The respective company’s values are British, Luxury, innovation and sensation. HARRODS
brand applies to the other enterprises undertaken by HARRODS bank, HARRODS group of
company and many more. Shares of Harrods were floated on London Stock Exchange under name
of the Harrods Stores London during 1998. In 1905, present iconic building of the Harrods was
completed. Harrods also bought various smaller departmental stores including Swan and Edgar, D
H Evans, Dickins and Jones, Walter Carter and many more (Cremer and et. al ., 2022).
History
This company was established by Charles Henry Harrod in 1824. He ran this enterprise,
variously listed as mercer, draper and haberdasher, until at least 1831. In 1825, this company was
listed as the ‘Harrod and Wicking, Linen Drapers, Retail, but this partnership was disband at the
end of that year. In 1834, in London’s East End, the owner established wholesale grocery in the
Stepeny at 4 Cable street with special interest in tea. In 1849, Harrods has moved to the
Knightsbridge area of London, which is near to the Hyde Park. Harrod’s shops contain 330
departments which offer a wide range of the product such as clothing for childrens, men and

women, jewellery, bridal dress, electronic, stationer, furniture, house wares, food and drink, home
appliances, packaged gifts, health and beauty items and many more. Service at the Harrods
include restaurants, personal shopping assistance programme is known as “by Appointment”, a
tailor, dispensing pharmacy, barbers shop, a watch repair service, Harrods bank, a beauty spa and
salon, Harrods financial services, food delivery, planning and desisging services and many more
(Dodds and Sadowski, 2022). Around 300000 customers visit its shop during peak days,
comprising highest proportions of the buyers from non English speaking nations of department
store within London. Mission statement of Harrods explain that its aim to be numbers one
department store at global level for the luxury branded merchandise, expertise, profitability and
maintain the unprecedented level of retail standard. This company act all the time with initiatives,
good manners, confidence, discretion and integrity. It works hard and better to continuously build
its knowledge and cherish their relationship to be trusted experts and guides. They act responsibly
and also do the right things.
Impact of two PESTEL factors on the chosen organisation
PESTEL analysis is one of the essential tool to analyse and identify key drivers of the
changes in organisational environment. This framework is imperative for the companies as it help
them to understand the market dynamic and also improve the business continuously. The business
organisations uses this tool to keep a track of external factors that impact a business. This tool is
an acronym for the political, economical, social, technological, legal and environmental factors. It
help the companies to determine analyse market situation ( Hackney, Friesner and Patil, 2022). In
context of the HARRODS, this company get impacted by some of the macro environmental
factors which are mentioned below:
 Social factors- With changes in societal tradition or behaviour, individuals tend to
purchase more often and rigorously. Society and the social trend develop shopping habits
norm of individuals, their behaviour and attitude may change or transform because of
various element. Demographic social component like income level, gender, race, age and
customer's education level impact the retailer's business. It is important for Harrods to
enhance more focus on safety, quality and hygienic part of the product. Customers have