The External Business Environment

The External Business
Environment

Table of Contents
Table of Contents.............................................................................................................................2
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Background of company.........................................................................................................3
PESTLE analysis....................................................................................................................3
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

Introduction
External business environment relates to the factors that are beyond the control of business and
the change in these factors affect business activities which can also affect their sustainability in
the marketplace. These environmental factors should be analysed by a business regularly so that
their impact can be evaluated which can help in taking appropriate actions so that the negative
impacts can be minimised while the positive impacts can be used for advantage of business
(Boratynska, 2017). In this report the external environment of Poland will be analysed so that the
opportunities and threats that are present in market can be known for the successful expansion of
Iceland Ltd. Company in Poland.
Main Body
Background of company
Iceland Foods Ltd is a British supermarket located in Wales, UK and sales frozen foods,
prepared meals and vegetables along with non-grocery items like dairy products, meat and dry
goods. The company is recognised as one of the fastest growing and most innovative retailers
which help in maximising the satisfaction of customers through high quality products. The
company is located in more than 950 locations and has over 23000 employees. The company is
planning on expanding in Poland for increased market and increase its sales.
PESTLE analysis
PESTLE analysis is a strategic management tool which can be used by companies so that
they can analyse the external business environmental factors which can help them in determining
the opportunities and threats present in market for expansion:
Political: These factors are related to the rules and regulations of the ruling government of
country which determine trade tariffs, tax regimes etc. Opportunities: Poland is a stable country
in Europe and is also a part of EU which means that the company Iceland Foods Ltd can
strategically expand in the nation as the rules do not change frequently which help in providing
stable environment for company (Halemba-Pawlik, 2017). Also Poland government favour
companies to expand business in country and give them various incentives. Threats: The legal
framework and regulatory environment is complex which can make it difficult for Iceland to
easily establish its branch in Poland. The government interference is also high in Poland which
can affect business of Iceland Foods in the country.