Retail Theory and Practice

Retail Theory and
Practice
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Company background and intro:............................................................................................3
Relavant key changes that took place within the UK fashion retail industry:........................4
Considerable changes within the micro environment:...........................................................5
Suggestion and discussion of strategies and tactics for business...........................................8
Recommendation..................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
There are many companies which are working exceptionally within the retail sector while
developing products and services meeting quality standards to attain the requirements of
customers (Pantano and Timmermans, 2019). Retail sector is contributing to the growth and
development of the nation as companies are working well enough. There are various elements of
business' micro and macro environment that needs to be systematically analysed to frame
efficient strategies of business to promote growth. The report is based on Next Plc , which is
trading in various countries around the globe with quality products and services in the fashion
industry. This is a leading British company operating in the retail industry with the headquarters
in Enderby, England, United Kingdom. This report includes different factors that define the
performance of fashion in the retail sector of UK. In this various factors of micro environment
are highlighted properly. Different strategies and tactics can be developed for growth and
development of business with respect to the elements mentioned here.
MAIN BODY
Company background and intro:
Next Plc is one of the leading compaies dealing in retail sector, and was established in
1864 and the one who found this company was Joseph Hepworth. Next Plc first women's wear
store was set up by the month of February of 1982 and this company has launched Men wear
products in August of 1984. Next Plc company is creating and developing products and services
meeting quality standards for both men and women (Chudik and Pesaran, 2016). while providing
different types of products and services to various countries across the world. Next Plc is a
multinational organisation which is headquartered in Enderby, England, United Kingdom.
Approximately the company has over 546 store till 2015 and Machael Roney was appointed as
the chairman of Next Plc company in 2017 (About NEXT Plc , 2020). Next Plc company is
selling its products along with services on both online platform and stores/ outlets. Their product
line has varieties such as ready to wear clothing products, accessories, shoes, dresses and so on.
It is also offering several products for kids, home décor, beauty products and many more. There
are various companies such as Marks and Spencer company, H&M etc., who compete as rivals
with Next Plc organisational Mission,vision and objective of this brand are mentioned below.
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 Objective – Next Plc focuses on making products that suit customer's tastes and
preferences
 Vision statement – To become the market leaders by serving the bigger number of
customers by offering their goods and services.
 Mission statement – To provide products which does not harm individuals or society,
and services that soothe customers and satify their needs. And also taking care of the
welfare of the society.
Relavant key changes that took place within the UK fashion retail industry:
It is important for every organisation to understand and evaluate all the factors of macro
environment which can have direct or indirect impact on business (Lange and et.al., 2018). There
are many external factors that will affect the business and its working efficiency. By identifying
such factors, organisation finds it easier to develop strategies that would contribute to the growth
and development of business. In order to determine these factors of business environment for
identifying changes PESTEL analysis serves as an effective tool. Political factors – political factors directly has an impact on performance and
profitability of business. Political factors majorly include all the elements that are related
to political and government changes of the UK. It consists of trade restrictions, instability
or unsuitability of political units, taxation policies and etc., Decision making gets far
better when the authories take all the above mentioned things into count when in process.
The UK has very strict trade restrictions impacting exports and imports directly. Hence
we can say that political factors will lead to have a significantly proportionate effect on
Next Plc operations. Economical factor – The elements such as inflation rate, foreign exchange rate, gross
domestic product, interest rate, exchange rate etc., come under the consideration of
economic factors that could have an impact on the business. Economic factors could
show the impact on Next Plc It is crucial for organisation to consider economic factors
while taking business related decisions (Lange and et.al., 2018). The UK's rate of
economic growth is mostly on thye fastest pace compared to that of other countries
which is a good sign for all the performing business concerns. High growth of country
will lead to increase the sales of Next Plc company.
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