Pestle Analysis of NEXT Plc in Global Business Environment

The report highlights the external factors that influence the performance and productivity of business by conducting pestle analysis. It also covers the key drivers which must be taken into account by managers while planning for future. Through conducting pestle analysis, company can assess the forces that can influence the performance and growth of business.

Global Business Environment

Executive Summary
The report highlights the external factors that influence the performance and productivity
of business by conducting pestle analysis. It also covers the key drivers which must be taken into
account by managers while planning for future. Through conducting pestle analysis, company
can assess the forces that can influence the performance and growth of business. There is a huge
impact of external factors on business productivity and efficiency. So, by addressing the external
forces company can gain competitive advantage and make business successful.

Table of Contents
Executive Summary.........................................................................................................................2
MAIN BODY...................................................................................................................................4
Introduction of chosen organisation............................................................................................4
Political Factors...........................................................................................................................4
Economic Factors........................................................................................................................4
Social Factors..............................................................................................................................4
Technological Factors.................................................................................................................4
Environmental Factors................................................................................................................5
Legal Factors...............................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

MAIN BODY
Introduction of chosen organisation
The report is based on global business environment in which pestle analysis is conducted
on firm and it covers the key drivers of change that must be addressed by company in order to
gain success. For conducting pestle analysis, the chosen organisation is NEXT Plc, it is a
multinational company which deals in clothing, home products and footwear. Organisation was
founded by Joseph Hepworth in 1864. The growth of NEXT online sales is increased as they
focus on their catalogue heritage. The product selection and stock level is gained by the company
through in depth consumer data. Few competitors of NEXT plc are Marks and Spencer,
Debenhams and Arcadia Group (Thompson and McLarney, 2017).
Political Factors
The profitability and performance of NEXT plc get influenced by Brexit as it brings two
main changes such as saving from temporary tariff regimes and transitional simplified
procedures (Becker-Leifhold and Iran, 2018). In order to deal with the problem, NEXT plc cut
the price of its products and services so that they attract large number of customer base. It is
important for company to understand trade policies of the country in which they are operating
business. Trade restriction can affect exports and also harm the relationship with foreign trade
partners.
Economic Factors
NEXT plc must consider interest rate and its influence on borrowing ability, as high
interest rate helps in increasing the growth opportunities and also encourage the attitude towards
investments (Neumüller and et. al., 2015). It is important to operate business in growing
economies as it offers wider range of growth opportunities to NEXT plc.
Social Factors
Each company has different norms and values that shapes the behaviour of consumers
towards products and services. NEXT plc must develop local teams and local partnership in
order to understand the culture and attitude of consumers towards goods and services. Through
understanding the consumer behaviour, Next can attract and fulfil the needs and demand of
customer.

Technological Factors
NEXT plc must focus on digital marketing in order to boost overseas business and also
bring technological innovation in company such as 5G, robot services, etc. for ruling the market.
Environmental Factors
NEXT plc is focusing on reducing carbon emission for attracting more and more
customer towards the company (Moon, Lee, and Lai, 2017). They must also focus on eco-
friendly products that helps in winning the trust of consumers.
Legal Factors
NEXT plc must implement employee protection laws including health and safety and
discrimination so that organisational image and reputation get increased. They must also
implement national minimum wage laws so that workers get entitled for minimum pay per hour.
The key drivers of change which management must consider are trendy technology, the
effect of technology, expectation of stakeholders, competitors move, customer preference, etc. It
is important for company to identify the latest technology in order to improve the performance
and efficiency of business (Clancy, Fröling and Peters, 2015).
CONCLUSION
From the above information, it is being concluded that through pestle analysis company
can identify external factors that affects the profitability and performance of business. By
conducting pestle analysis, company understands the wider business environment.

REFERENCES
Books and Journals
Becker-Leifhold, C. and Iran, S., 2018. Collaborative fashion consumption–drivers, barriers and
future pathways. Journal of Fashion Marketing and Management: An International
Journal.
Clancy, G., Fröling, M. and Peters, G., 2015. Ecolabels as drivers of clothing design. Journal of
Cleaner Production. 99. pp.345-353.
Moon, K. L. K., Lee, J. Y. and Lai, S. Y .C., 2017. Key drivers of an agile, collaborative fast
fashion supply chain: Dongdaemun fashion market. Journal of Fashion Marketing and
Management: An International Journal.
Neumüller, C and et. al., 2015. Integrating three-dimensional sustainability in distribution centre
selection: the process analysis method-based analytic network process. International
Journal of Production Research. 53(2). pp.409-434.
Thompson, J. and McLarney, C., 2017. What effects will the strategy changes undertaken by
next Plc have on themselves and their competition in the UK Clothing Retail
Market?. Journal of Commerce and Management Thought. 8(2). pp.234-264.
Underhill, G., 2016. Industrial crisis and the open economy: politics, global trade and the textile
industry in the advanced economies. Springer.