CW1 External Environment Research and Analysis Portfolio Paper 1

PESTLE template
External factors to
consider Factors affected within my industry
Importance to
organisation
POLITICAL Government
policy
Political stability
Tax
Industry
regulations
Global trade
agreements and or
restrictions
Political factors: UK left the
European union in January 31st,
2020. retail industry have to adjust
themselves and complete change
their business functionality as per
such requirements of changes in the
economic policies, trade
agreements.
In TK maxx the
main impact of
Brexit will be that
there will be new
trading rules &
extra changes that
may lead to risk
making the
products offered by
UK less attractive
in the EU markets.
ECONOMIC Exchange rates
Globalisation
Economic
growth/ decline
Inflation
Interest rates
Cost of living
Labour costs
Consumer
spending habits
There are some of the economic
factors that may affect the
functioning of retail sector
organisations. Such as it is related
to changes in economic polices
which affects the functioning of
organisation it includes fiscal
policies and monetary policies.
Monetary policy is related with the
changes in money supply in
circulation. Fiscal policy in UK has
been ranging at 8.3 percent, referral
has been at 2.0 percent as per
reports in November 2020.
In TK maxx The
covid 19 situation
has also lead to
shifting preference
of customers
towards more
online platforms
where there can be
easy purchasing
and following up
of proper norms of
social distancing to
manage the
overall rules.
SOCIAL Consumer trends/
tastes,
Fashions
Consumer buying
habits
Lifestyle factors
Career attitudes
Work-life balance
Population
demographics147
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There are some of the social factors
that affect the customer behaviour.
In UK, customer engagement is
related to going beyond marketing
aspect that is related to the overall
product and services offered by a
organisation (Nayak and
Kayarkatte, 2020).
In TK maxx the
present COVID 19
scenario affected
the changing
preferences of
customers as they
developed more
preferences for
online availability
of products as
compared to
physical stores.
© CIPD 2020 7583
External factors
to consider Factors affected within my industry
Importance to
organisation

TECHNOLOGY Automation
Innovation1470
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Disruptive
technologies
Social
networking
Upgrades
Robotics
Artificial
Intelligence
Security
The fast changing technology has
affected the functioning of
organisations. The new technology
adopted helps the retails sector
organisation in having contactless
deliverers to protect customers and
drivers. 1470474330
In TK maxx the
organisation was
working towards
taking new orders
based on updated
technology
focussed on
offering personal
protective
equipments,
implementation of
social distancing
and enhancement
in sanitisation &
cleaning facilitates
(Liu and et.al.,
2018).
LEGAL Employment law
Common law
Local labour law
Health and safety
regulations
There are some of the legal laws
that includes employment rights act
1996, national minimum wages act
1998, employment relations act
1999 (Shimpalee and et.al., 2017).
there is also implementation of
national minimum wages act where
there is payment of minimum
wages to employees.
This policy is also
properly adhered in
TK maxx. In this
there are specific
rates of minimum
wages according to
which employees
are offered with
payment.
ENVIRONMENTA
L
Environmental
restrictions
imposed by in-
country
governments
Sustainable
resources CSR
(Corporate social
responsibility)
Ethical sourcing
Transportation
Procurement
Supply chain
management
Future pandemics
In the present scenario there is need
of some of the specific factors that
includes corporate social
responsibility and other such related
aspects in order to deal with its
impact on business functioning in
long run.
TK maxx is a retail
sector organisation
that is working
towards a zero
waste landfill
target. In this all
the waste from
operations and
stores are sent
directly to be
recycled.