This presentation discusses the internal and external factors affecting John Lewis, a leading international company based in the UK. It covers SWOT analysis, PESTLE analysis, and the company's impact on its external environment.
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Introduction Business environment can be defined as the examining the internal and external factors of an organization which directly or indirectly affects the working of the company and so as it's operations as well (Hamilton and Webster, 2018). Organization chosen here is John Lewis, it is one of the leading international company based in UK in 1864. It mainly deals with the products like clothing, electricals, beauty and personal care and home care products. The following discussions are made on internal factors that is SWOT analysis, external factors that is PESTLE analysis and company impacts on it's external environment in context of John Lewis. John Lewis And Its Environment External Environment PESTLE Analysis It is defined as the determination of external factors of an organization which affects the firm in it's internal management (Shtal, Buriak, Ukubassova and Tlegen, 2018). Political factors Government has imposed the strict trade protectionist policies in a country Economical factors Facing the conflicts with distributors due to rise in prices because of impact of currency on Brexit Dynamic fluctuations in the markets especially in currency markets Social factors Growth in market and individual demand for personal care products and healthy foods Technological factors Increment of the sustainable technologies for the firm They are accelerating the online channels for marketing and product servicing Legal factors Frequent change in environmental regulations Frequent change in tax laws and regulations Environment factors Steps taken by an organization to address the global climate change within the value chain Sustainable practices are adopted by the firm How the company impact its context External Environment Company is facing threats in terms of political factors due to trade restrictions Company is facing threats in terms of economical factors due to conflicts with distributors and fluctuations in currency Company has growth opportunities in it's social factors due to increasing demand for the personal care products Company has growth opportunities in it's technological factors due to online channels and sustainable technologies Company is facing threats in terms of legal factors due to change in laws and regulations Company has growth opportunities in it's environmental factors due to contributing in climate change and sustainable practices(Akpoviroro and Owotutu, 2018). Internal Factors SWOT Analysis It is defined as the determination of internal factors of an organization which involves the firm's strengths, weaknesses, opportunities and threats(Stoyanova and Angelova, 2018). Strengths Powerful performance growth strategies It contains powerful brands that are mostly popular It has the portfolio which is evolving and channels which are developing Investments are strategic to substantial drive growth It has supply chain which is integrated and focus on research and development function It has strong online presence in the market place Weaknesses It is facing the lack of international presence It is facing the inconsistent profitability Opportunities It has a good potential in emerging markets Demand is growing personal care products and healthy foods Threats High competition regionally and globally as well facing low diversification There are very strict laws and regulations they are facing for their products References Akpoviroro, K.S. and Owotutu, S.O., 2018. Impact of external business environment on organizational Performance.IJARIIE.4(3). pp.498-506. Hamilton,L.andWebster,P.,2018.The internationalbusinessenvironment.Oxford University Press. Shtal, T., Buriak, M., Ukubassova, G. and Tlegen, T., 2018.Methodsofanalysisoftheexternal environment of business activities. Stoyanova, T. and Angelova, M., 2018, June. Impact of the Internal Factors on the Competitiveness of BusinessOrganizations.In2018International Conferenceon HighTechnology for Sustainable Development (HiTech)(pp. 1-3). IEEE.