PESTLE Analysis of the Online Business

Added on - Dec 2020

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The Structure of Business
Table of ContentsINTRODUCTION...........................................................................................................................1Question 1........................................................................................................................................1PESTLE analysis of the online business.....................................................................................1Consideration while starting an online business.........................................................................2Factors impacting success of the new business...........................................................................3Question 2........................................................................................................................................3Strength and weaknesses of the legal frameworks which are to be considered while startingthe online business......................................................................................................................3Ways of funding the business.....................................................................................................4Question 3........................................................................................................................................5Three sectors within the economy of UK where the online business can operate......................5Different types of HR policies and their importance in modern workplace...............................6Reflection....................................................................................................................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONThe business structure may be defined as the whole structure of the business startingsince its incorporation till its winding up. The business structure also defines the legal status ofthe organization. The different types of business structure are like partnership, soleproprietorship, companies, joint venture and many other forms. The present study is based on thenew online business of clothing named “Look Good”. The report will outline the PESTLEanalysis for the new online business (Blake, 2016). Furthermore, it will discuss someconsiderations which are to be taken into account while starting the business along with thedifferent factors which affects the success of the business. Next it will discuss about someweaknesses and the strengths of the different types of legal framework which needs to beconsidered at time of starting up a new business.Also, it will discuss about the different ways orsources through which the business can raise funds to develop its business. In the end it willdiscuss some sectors of the UK economy along with the application of the different types of HRpolicies and their importance and necessity at the workplace.Question 1PESTLE analysis of the online businessEvery business needs to be run in the macro or the external environment which keeps onchanging from time- to- time. The business in order to be successful needs to timely study andanalyze all the macro factors and needs to make necessary changes in order to need the businessprofitable. For analyzing the macro environment the business needs to perform the PESTLEanalysis which is discussed in the following points-Political- these factors includes a variety of factors like political influence on the externalbusiness, the change in the government body, and many other factors. Before starting the onlinebusiness the businessman must consider and study the whole political environment of that areawhere the business is going to be set up. This is done to study that what are the support andthreats which are provided by the government for the e- commerce business.Economical- These factors involves different factors like interest rate, foreign exchangerate, inflation rate, economic cycles and many other factors (Lawton, 2017). For managing thebusiness, Look Good can study in advance the preferences of the consumer, their spendingpower or the purchasing power, stability of country's economic conditions and business cyclessuch as inflation, deflation, recession or boom period.1
Social- These type of factors help the company in knowing and analyzing the impact ofthe beliefs, values, attitude of the society and the culture which has over the working of thebusiness. Study of this factor is very necessary because there can be a difference between whatthe company is producing and what is expected by the society. If the difference is large then itmight be possible that the business may fail.Technological- this is the major factor which needs to be analyzed because thetechnology keeps on changing rapidly. This can either be a threat or an opportunity like forexample rise in usage of mobile is an opportunity for this online business. This can be anopportunity because if people will use more mobile than they will do more shopping. On thecontrary there can also be threat of rise in the competition because of technological innovation.Legal- these factors includes the different legal system and rules and regulations whichare to be followed by the company in order to start the online business (Lyubareva, Benghoziand Fidele, 2014). Before entering into the business must carefully analyze and evaluate the legalstructure before entering into that market.Environmental- with the help of this factor the company tries to analyze theenvironmental factors which may be affected due to the operations or the working of thecompany. These factors may include changes in the climatic conditions, changes in weather,laws regulating the environment and many other factors.Consideration while starting an online businessIt is very necessary for the new business venture to keep in consideration all the factorswhether internal or the external factors which impacts and influences the efficiency and theproductivity of the business. Some the factors which are essentially important to be consideredby the business are as follows-Identify the client-This is the major consideration before starting up the new businessbecause the whole business is dependent on the type of clientele only. Suppose the targetconsumer is the people between 20- 40 ans the business is designing clothes keeping in mind theabove 60 group of people. Then the business will be a serious fail and disaster.Selection of correct medium to advertise-this is also an important factor which needs tobe considered very essentially. This is because of the reason that if the products will not beadvertised properly then the business will face many difficulties in running the businesssuccessfully.2
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