Impact of External Factors on NEXT and PESTLE Analysis, Leadership, CSR, Effects of Brexit and COVID-19 on Business

CONTEXT
OF
BUSINESS

Table of Contents
CONTEXT OF BUSINESS .................................................................................................................1
INTRODUCTION :..............................................................................................................................3
IMPACT OF EXTERNAL FACTORS ON NEXT AND PESTLE ANALYSIS :...............................4
LEADERSHIP :....................................................................................................................................6
CORPORATE SOCIAL RESPONSIBILITY (CSR) :.........................................................................7
EFFECTS OF BREXIT ON THE BUSINESS :..................................................................................9
EFFECTS IN BUSINESS OF COVID-19 :.......................................................................................10
CONCLUSION :................................................................................................................................11
REFERENCES:..................................................................................................................................12

INTRODUCTION :
An organisation engaged in professional business activities with shared objectives is
known as the business organisation such as sole proprietorship , LLP and other partnerships which
has formed company for their business. NEXT plc is a British multinational company founded in
the year 1864 by Joseph Hepworth which deals in the business of home products , clothing and
footwear. The report will cover up the facts about effects of external forces in the business of the
company along with the analysis of PESTLE and influence it has on other businesses in the country.
Furthermore , it will disclose the factors of the leadership style of the company and which of them
is the most effective source of the help in the business of the company along with it this report will
cover up the corporate social responsibilities of the company and how it effects in the business of
the organisation which will carry the analysis of Brexit effect of the business of UK and Covid-19
pandemic effects on the business of the companies all over the country and every structure of the
effectiveness in the organisation.(Sankar, 2019.)
IMPACT OF EXTERNAL FACTORS ON NEXT AND PESTLE
ANALYSIS :
PESTLE :
It helps in determining the new product's services and the validity of the new product which
provides the in depth information regarding the direction of the business , positioning of the brand
along with the growth and risk targets of the company.
The analysis used in NEXT plc is to identify the external forces which are responsible of shaping
the strategies and environment of the company those few factors has been covered below :
POLITICAL :
The involvement of the government organisations in industrial growth including the policies
of the government , restrictions in trade , labour law , political stability along with tax policies in the
region. The stable smoothness in the operations of the business activities is directly related to the
higher political stability in a region where that company exists and on the other hand the instability
of politics can be a chaos for any business organisations as it would effect the investors and share
holders to have a faith in the company. Bureaucracy and corruption could be another political factor
for affecting the business operations. Every particular region have its own political barriers as

NEXT plc has been present in different regions across the country.(Diez- 2019)
ECONOMICAL:
Company's business is directly effected by the economic growth of the country as it includes
inflation rate , exchange rate , minimum wages , working hours along with the fiscal and monetary
policy of the company. GDP rate of the country determine the spending of the consumers on the
products and services and help the NEXT plc to make the long term strategies for the business of
the company as economic structure of the country influence the NEXT plc businesses because of
the GDP growth of the country affects the business organisations on a larger scale then any other
forms of economical structure.
SOCIAL :
Social external factors helps the company to analyse the marketing strategies which
covers up the social norms of the country , age distribution , population growth rate and health
which gives a helping hand to the company to understand the dynamics of these factors to target the
particular market for their product which could be very helpful for the business of the company by
getting the informations about the social norms of the region where they want to set up the their
business.(Mayer., 2018)
TECHNOLOGICAL :
The advance technologies of the creative innovations affects the market strategies of the
business organisation. To enhance the quality of the products NXT plc is adopting different
technological steps like machine leaning and artificial intelligence etc. for the advancement of the
brand image and advertise the product using digital media marketing. To make the product more
creative and effective as well NEXT plc had increased the investments in their research and
development to through which the product could stand out amongst its competitions.(Bougie.,
2019.)
LEGAL:
It includes various type of legal instruments such as employee and consumer protection
law , data privacy law and property law as it is one of the vital factors to do a satisfactory business
which includes import export laws , taxation policies and trade agreement etc. these factors effects
the company both internally and externally. As the data protection is a major concern for the
customers the company follows the data privacy regulations to avoid the breach of data of the
company's confidential informations because of which the company compel to follow these