Key Issues Influencing Household Furnishing Business

This report examines the key issues that influence the business operations of a household furnishing company, including fluctuating customer demand and shortage of skilled labor. It also discusses the positive and negative impacts of these issues on the business.

REPORT

TABLE OF CONTENTS
INTRODUCTION:..........................................................................................................................3
TASK 1............................................................................................................................................3
Key issues which influence the business of the household furnishing company:.......................3
TASK 2............................................................................................................................................5
PESTLE analysis:........................................................................................................................5
TASK 3............................................................................................................................................7
Impacts on the business from the issues of the furniture company:...........................................7
TASK 4............................................................................................................................................7
REFLECTION:...........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION:
Business environment refers to the group of all the internal and external factors which
have both the positive and negative impact on the business operations of the company in the
different situation of the markets. These external and internal factors are employees, needs and
wants of the customer, management, demand and supply, innovative technology, changes in the
economy, government activities etc. This report examines the two main important issues which
affects the working of the household furnishing. There are the determination of the Pestle
analysis which helps to explain the issues affecting the household furnishing company. This file
also explains the positive and negative effects of the issues on the business of the household
furnishing.
TASK 1
Key issues which influence the business of the household furnishing company:
There are various challenges which is faced by the household furniture company which
influence the successful operation of their business. The two main issues are rapid changes in the
demand of the customer and shortage of the skilled and talented labour for the effective
production of the household furniture company. These issues are explained below:
Fluctuating demand of the customer:
In the industry of the household furniture demand of the products and services is
depended on the needs and wants of the customer in the housing furniture. When the cost of the
products are increase with the increase in the wages of the employees creates difficulty in the
managing the changes in the demand of the customer. Customer trends of housing have a great
effects on the manufacturing of the furniture. Increase in the prices of the furniture products
decreases the sales of the company. The needs of the furniture in the small homes and in the flats
are limited and these homes and flats are furnished with the low cost and small furnitures. The
demands of the furniture are changes as per the needs and wants of the people living in the small
homes and flats (Aithal, 2017). The manager of the company try to evaluate the fluctuation in
demands to improve the designs and quality of the products for the achievement of the successful
business operations. Household furniture company aims to acquire the needs and wants of the
customer for their furniture products. The manager of the company monitor and collect the data
on the demand of the customer for the better future prediction when the demand goes changes.

With the advance prediction of the future the demand of the customer the business easily and
quickly respond to the changes.
Shortage of skilled labour:
The biggest challenges faced by the household company is the shortage of the skilled and
t6alented labour in the production activities of the business. To achieve the success and growth
of the business the manufacturer of the furniture firstly try to solve the problem of the shortage
of the skilled labour force in the business. The skilled and the talented workers will increases the
productivity and sales of the business from their effective ideas and techniques of working. Due
to the problem of shortage of the skilled workers company organizes the programmes of training
and development of the existing workers in the business. The furniture company faces problems
in the manufacturing production of the furniture because of the limited skilled and talented
employees in the business (Charter, 2017). The business management organize the process of the
recruitment to appoint the effective employees that helps to achieve the objective of the furniture
company in the different market conditions. To reduce the issues the furniture company could
appoint the workers on the contract basis until when the skilled long term employees are not
appointed in the business.
TASK 2
PESTLE analysis:
Pestle analysis is used by the household furniture company which helps to analysis the
external environment of the business. It determines the political, social, legal, economical,
technological factors which have influence the profitability of the furniture company. These
external factors are described below:
Political factors:
The political factors influence the profitability of the business in different market
conditions of the business. If the company is operating their business internationally the business
have to face various types of political risk which is related to the problems of shortage in the
skilled labour force and changes in the demands of the customer. Political factors includes
legislation of the wages, compulsory advantages to the employees, product labelling, tax rates,
level of corruption (Grigore and Drăgan, 2015). To reduces the problems of the shortage of

skilled labour and changes in the demands of the customer the company will determine the
political factors of the business.
Positive: By giving the compulsory advantages to the employees in the political factors more
skilled employees are come to get the jobs in business of furniture company.
Negative: Pricing regulating will increase the prices of the products the demands of the customer
changes.
Economic factors:
Economic factors involve the rates of inflation, saving rates, spending of the customer,
rate of growth of the business which affect the business of the furniture positively and negatively
Positive: When the level of the economy are stable it will give the skilled labour in the business.
The level of education in the economy is effective then the company get the talented employees
in their business.
Negative: When there is the decrease in the interest rates, and growth of the business in the
economy the demand of the customer changes in the furniture company.
Social factors:
The culture of the society and the way living life affects the culture of the household
furniture company in the environment. Behaviour and attitudes of the people towards the
products of the furniture company enhance the markets to make the products as per the
requirements of the customer (Holden, 2016).
Positive: If the society have the skilled people it will reduce the issues' shortage of the skilled
labour.
Negative: The needs and wants of the people changes as per their culture so this effect
negatively on the business of the furniture company.
Technological factors:
the company analysis the technological factor to solve the issue of the business and to
fulfils the demands of the customer by adopting the new and advanced technology.
Positive: With the new and advanced technology the training and development of the existing
employees will be easy for the business of the furniture company.
Negative: The cost of these technologies is very high so sometime the furniture company fails to
purchase these advanced technology and it will influence the changes in the demands of the
customer.

Environmental factors:
The furniture company evaluate the environmental factors to solve the problems of the
changing in the demand of the customer and shortage of the talented employees.
Positive: The company produces the eco friendly products of the furniture which fulfils the
demands of the customer and increase the sales of the business (Kolk, 2016).
Negative: Due to the environmental disaster the furniture company couldn't get the skilled and
talented employees in the business.
Legal factors:
These are those factors in which the furniture company perform their activities as per the
law and legislation of the government.
Positive: There are the laws of health and safety of the employees in the working environment
which attract the lots of talented employees in the business of the furniture company.
Negative: Due to the various laws and legislation of the government they cannot manufacture
the products which fulfils the needs of the customer, so it will change the demand of the
customer for the products (Otache and Mahmood, 2015).
TASK 3
Impacts on the business from the issues of the furniture company:
Positive:
If the demands of the customers are changes as per the changes in the economy then
IKEA will improve process of the production and manufacturing in the business so that the
product will match the demands of the customer. To increase the profits of the business IKEA try
to fulfil the needs and wants of the customer. The IKEA makes the table and chair attractive so
that various customer are attracted and the business research to the success of the customer (Ruël
and Wolters, 2016). By the changes in the demands of the customer IKEA will bring various new
innovations and ideas in the production of the furniture products.
Negative:
The business of the IKEA is affects due to the shortage of the skilled and talented
employees in their business operations. The production capacity of the IKEA reduces due to the
limited skilled employees in the business. There is the decrease in the sales of the IKEA because
the employees are not focused to achieve the goals of the business in different market conditions.

Without the skilled employees the IKEA cannot reach to the success of the business in the
present and the future of the business. To remain at the top in the business of the furniture IKEA
has the need to appoint the skilled and talented employees in their business (Strydom, 2015).
Skilled employees gives the effectiveness and efficiency in the activities of the business of the
IKEA.
TASK 4
REFLECTION:
Challenges I have faced while preparing this report is in the collection of the data and in
understanding the topic because it is hard to understand. When I am preparing this report the
information about the furniture company cannot be identified easily because the internet cannot
give the appropriate information of the topic. Sometimes it creates the problems of the confusion
for me in understanding the report. The topic is tough so it takes time in understanding each and
every aspect of this topic. When I start searching the topic on the internet but it has not the
correct information about the furniture company and it take lots of time in making this report.
Problem of the network failure creates lots of difficulty while making this report about the
business of the furniture company. When I am measuring the external environment about the
issues which is faced by the business it cannot be easily understood by me (Victor, 2017). I face
various difficulty while in the making of this report in the identification of the accurate
information about the furniture company in the business. I cannot collet the data and information
of the business of furniture because of this I have to give the extra efforts in preparing this report.
My most of the time is waste in the searching of the effective and correct information of the
topic. In the preparation of this report I have to measure all the analysis and data of the furniture
company which is difficult to find on the internet because books cannot give the proper
information about the business of the furniture company.

CONCLUSION
From the above study it can be concluded that the business environment have the various
internal and external factors which affects the business operations. There are problems of the
shortage of the talented employees and changes in the demands of the customer are faces by the
furniture company. The company could get the positive and negative impacts on the business
because of the political, social, technological factors. There are various positive and negative
impacts on the business from the challenges which is faced by the household furniture company.
The furniture company will take the various activities to solve the problem of the fluctuating
demands of the customer and limited skilled employees in the business.

REFERENCES
Books and Journals:
Aithal, P.S., 2017. Impact of Domestic, Foreign, and Global Environments on International
Business Decisions of Multinational Firms: A Systematic Study. International Journal
of Management, Technology, and Social Sciences (IJMTS). 2(2). pp.93-104.
Charter, M., 2017. Greener marketing: A responsible approach to business. Routledge.
Grigore, A.M. and Drăgan, I.M., 2015. Entrepreneurship and its economical value in a very
dynamic business environment. Amfiteatru Economic Journal. 17(38). pp.120-132.
Holden, A., 2016. Environment and tourism. Routledge.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
Otache, I. and Mahmood, R., 2015. Corporate entrepreneurship and business performance: the
role of external environment and organizational culture: A proposed framework.
Mediterranean Journal of Social Sciences. 6(4). p.524.
Ruël, H.J. and Wolters, T., 2016. Business diplomacy. The SAGE handbook of diplomacy.
Strydom, J., 2015. Principles of Business Manaegment. Oxford University Press Southern
Africa.
Victor, P.A., 2017. Pollution: economy and environment. Routledge.