PESTEL analysis of Boots company

This report presents the macro environmental analysis of the Boots company and its impact on marketing decisions. It also discusses key drivers to consider for future plans.

PESTEL analysis of Boots
company

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
Macro environmental analysis of the Boots company affecting its marketing decision........3
CONCLUSION..........................................................................................................................4
REFERENCES...........................................................................................................................5

INTRODUCTION
The business environment includes the factors which are both internal and external to
the business having the potential to influence the business operation. This report presents
about the external environmental analysis of the Boots company which is a leading pharmacy
led health and beauty products. Along with it, the key drivers to be considered before
implementing any future plan.
MAIN BODY
Macro environmental analysis of the Boots company affecting its marketing decision
For effectively analyse the factor affecting the functioning of the Boots company,
PESTLE analysis is carried out below.
Political factors (High): The major political factor affecting this industry is the
implication of Brexit (Kalimov and et.al, 2017). If the UK exits from the EU then it will
result into increase in the cost of import and export of products which will eventually lead to
increase in the price of the product for the final consumers. Therefore, it will have a huge
impact over Boots company.
Economic factors (High): The increasing cost of the fuel has made the transportation
cost to rise and also there is a fluctuation in the currency which has affected the industry as
whole and has also led to increase in the price of the product or reduction in the profit
margin.
Social factors (Low): The current trend of the people in UK is having healthy and
reliable product. The people have become more health conscious and are willing to consume
only those products which are good for their health. Therefore, tis factor is having low impact
over the Boots company.
Technological factors (Low): The boots have adapted the changing business
scenarios in terms of technological advancement and the changing trends. The emergence of
social media has provided in outlook to the business which is beneficial for the company and
the company has implemented it effectively.
Legal factors (Moderate): There is no such major changes in the legal regulations
which will have a significant impact over the business (Bronskaia, 2018). But then too there
are many regulations that a pharmaceutical industry has to comply with along with legislative

restrictions. In case of Boots company, it has followed all the regulatory requirements,
therefore, it will have moderate impact over it.
Environmental factors (Less): Healthy environment helps in thriving of healthy
community and the Boots company is committed towards the environmental sustainability
and it has gone beyond the set compliance norms and has set new benchmarks.
Key drivers to be considered
Based on the PESTLE analysis, the key drivers that company should focus on before
implementing any future plans are stated below.
 Strategy to mitigate the negative impact associated with the Brexit issue.
 Changing legal requirement and policies.
 Economic factors like rise in fuel cost affecting the costing of the product and its
profitability as well.
CONCLUSION
It can be summarized that the business environment analysis assists the business in
determining the threats in advance so that planning can be done in a more effective manner.
This will result in accomplishing the desired objectives.

REFERENCES
Books and Journals
Bronskaia, T. A., 2018. Marketing environment analysis as the key component of the
company’s competitiveness evaluation.
Kalimov, O. and et.al, 2017. THE TOOLS OF MARKETING DECISION MAKING IN THE
FORMATION OF PRODUCT POLICY OF THE ENTERPRISE. In 4th
INTERNATIONAL MULTIDISCIPLINARY SCIENTIFIC CONFERENCE ON
SOCIAL SCIENCES AND ARTS SGEM 2017 (pp. 1085-1092).