Internal and External Factors: A Study on Arcadia Group

This report explores the internal and external factors that affect Arcadia Group, a high street clothing retailer company. It covers SWOT analysis, PESTLE analysis, and concludes with the importance of managing these factors.

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In business environment various factors are exists that needs
to consider while operating a business as it helps to know
what factor can affect the organizational performance. To
understand about this Arcadia Group has been selected that is
high street clothing retailer company, headquarter in London.
The management understand the requirement and provide
better quality of products. This report cover understanding
about internal and external factors that affects the businesses.
As Pandemic has occurred suddenly in world which has reduced
the employment rate so buying behaviour of customers have been
reduced. This affected the sales of Arcadia Group negatively as
less number of buyers.
Social factor: Different factors are involving as population
growth, health consciousness, demographics, and buying
behaviour. Arcadia Group is taking the advantages of such
behaviour as it understand the needs of customers and provide the
products and services accordingly. On the other side, due to
pandemic all activities of sales has been reduced as different
culture of people are living in other places (Anees-ur-Rehman and
et.al., 2020).
Technological factor: The considering activities are new
technology, copy rights, effective communication and others that
affects sales. In Pandemic all businesses has stopped due to lock
down where new technology such as online shopping and safe
delivery facilities have started to provide by Arcadia Group that
has became an opportunity for organization and operating
business effectively.
Legal factor: This factor involves all legal rights, laws and
legislations that are needed to follow in operating a business.
Arcadia Group is following healthy and safety law, employment
laws and other that helps to run a business accurately.
Environmental factor: Arcadia Group is following all
environmental legislation, reducing carbon emission, and
minimum wastages that build the customers and organization
confidence as organization is working for safety of people
(Franceschelli, Santoro and Candelo, 2018).
Thus, it has explained as internal and external factors might be
affect the Arcadia Group where it is important to focus and
manage the all functions.
CONCLUSION
From the report it can be concluded that PESTLE is related to
external environment that might be affect the business. And other
side, to analyse the internal environment SWOT analysis is
SWOT analysis
Strengths
 Arcadia Group is 2nd largest company in UK
clothing market.
 The organization is having 2,311 stores in UK and
674 stores in overseas.
 The organization is becoming the leading multi
brand, out of town fashion store.
 Providing better quality and prices of products that
influences number of customers.
Weakness
 Less profitability as it is selling products at lower
cost.
 There is having higher competition as having many
competitors.
 Changes in currency (Damanpour, Sanchez‐
Henriquez and Chiu, 2018).
 Changing in leadership
 Food safety issues
Opportunities
 Growth of online market and shopping as customers
buys products.
 Using of AR and VR with the help of new technology.
 Proper training to employees.
 Focusing on customer demand and providing products.
Threats
 Brexit and supply chain issues.
 Economic recession .
 UK -EU relation that affected sales negatively.
External factors
Discuss the different ways in which your chosen business or
organization can impact on the external environment.
PESTLE Analysis
Political factor: The statement of factor involves government
policy, tax policy, political stability and trade restriction. After
Brexit in UK and EU, it has explained that selling activities of
Arcadia Group has been reduced due to having tight policies.
On the other side, reduction in tax rate of UK became an
opportunity to increase the sales and performance in
competitive environment.
Economical factor: This factor is showing the relation with
economic growth, interest rates, wages rates and disposable
income that has affected a business.
Individual Poster
INTRODUCTION Internal and external factors