Pestle Analysis and Factors for Starting an Online Business

Running Head: MANAGEMENT
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Business Foundation
7/25/2019

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Contents
Q1. Pestle analysis and factors responsible for starting an online business in
context to case study........................................................................2
Q2. Strengths and weaknesses of legal frameworks and funds for online
business....................................................................................... 4
Q3. Identification of three sectors in UK and role of HR policies.................7
References.................................................................................. 11

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Q1. Pestle analysis and factors responsible for starting an online business in
context to case study.
According to the given case study of eBay that mentioned the objective of the firm to plan for
an online business or trade in effective way. It will serve the customers and regular people to
have access to the financial markets, and other services. However, a number of factors may
impact the initiation and implementation of this business idea, into their business. Therefore,
an analysis of the environmental and other factors will be done in context to the company.
The new online venture here can be stated as the area where the good will be traded at a
fair value, named as “Online sun” (Omidyar, 2018).
Political and legal factors
The most significant political and legal factors for the online new venture that may arise can
be the data security risks issues, along with the danger of frauds. The factor of trade of any
kind of illegal products may also create issues, and the lack of responsiveness of the tax
payers. Government agencies are concerned about the tax evasion into their investigations.
Moreover, there has been an increase in the involvement of the government into the aspects
of privacy policy agreements. Therefore, these are certain political and legal factors that may
affect the implementation of the new online business idea of providing all goods and services
at a fair value (Plummer, Allison and Connelly, 2016).
Economic Forces
In the company, the online new venture there is an unending supply of the unique products
and the weak economic conditions are major that impacts the revenues. Factors that influence
their plan for the new online business may include the aspect of exchange rate between USD
and other currencies. Change in inflation rate, tax rates, costs of labour, unemployment and
fiscal policies are stated to be major factors (Devece, Peris-Ortiz and Rueda-Armengot,
2016).
Social factors/forces
The aspects of lifestyle and the attributes of the choices of individuals, i.e. both men and
women differ with respect to the products sold through eBay. As the business idea of
conducting a fair trade involves the trade or exchange in a fair manner to all the people. This

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facilitates the fact that people rely more on the use of internet for online shopping, and eBay
provides them a better platform.
Technological factors
With the growth of the internet users, there has been an increase in the public online
consumption, and this has led an increase in the high-speed network service. eBay makes the
use of PayPal as a platform, ensuring the secured, and easy payment services. However, a
factor in technological context, i.e. problems may occur related to the patent protected
technical knowledge and features. Therefore, in the launching and implementation of their
new business ideas or ventures, the company may get affected by patent dispute (Agarwal
and Wu, 2015).
Environmental factors
The company provides a better prospect of the green and clean environment, by ensuring
people to buy and supply green products to the world. There were factors such as eco-
packaging and work-environment mainly affects effective operations of their business. Thus,
these are certain factors that may affect the functioning and growth of the company in future
years (Solomon, 2017).
Now, factors need to be considered while making decisions for conversion the business into
reality. Firstly, we must find a niche i.e. market to perfectly base the new service or product.
This is essential to avoid any issues, in the future and gain competitive advantage. Secondly,
defining brand and customer in context to the products and evaluating demand for that
product. This is followed by selection of the appropriate vendors, deciding the name of
company. At last, setting up the payment method, promotion of products and giving
customers a reason to buy their product is all necessary. Besides, use of modern and
productive technology is significant to take the decision to convert an online business into a
reality (Khmara and Kronenberg, 2018).
Thereafter, certain key factors play a major role in influencing the success of the online
business of eBay, as a new business venture. These include strategic focus i.e. effective
leadership, management, and planning to undertake effective planning for the new business