SWOT and PESTLE analysis of TK Maxx

This report covers SWOT and PESTLE analysis of TK Maxx, an American apparel and home goods company. It also discusses how the business addressed its strengths to negate threats and weaknesses affecting opportunities, suitable leadership styles, and corporate social responsibility.

Context of business

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK ..............................................................................................................................................4
SWOT analysis.......................................................................................................................4
PESTLE analysis....................................................................................................................5
Changes in pestle factors influenced the opportunities and threats........................................6
How business addressed its strengths to negate threats and weakness affecting opportunities..7
leadership styles .....................................................................................................................7
Corporate social responsibility...............................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCE.................................................................................................................................10

INTRODUCTION
Business is defined as the organisation or enterprising entity that is engaged in various
commercial, professional and industrial activities. Businesses are involved in generating money
through producing, buying and selling products. Business environment is defined as the sum of
internal and external factors that affect business performance and functionality. Business analyse
these factors and take decisions accordingly to gain sustainable competitive advantages. In this
report chosen organisation is TK Mass that is American apparel and home goods company
founded in 1994 by Bernard Cammarata. Headquarter of organisation situated in Framingham,
Massachusetts, United states. Organisation offers clothing, bedding and domestics, footwear,
furniture and giftware. This report covers SWOT and PESTLE analysis that involves internal and
external factors impact business in positive and negative manner. How pestle factors influenced
opportunities and threats of business is mentioned. Along with that suitable leadership style that
help business to meet objectives and corporate social responsibilities of business are explained in
this project report.
TASK
SWOT analysis
SWOT analysis is defined as the strategic planning as well as strategic management
technique that is used by the organisation for the purpose of identifying strengths, weaknesses,
opportunities and threats. It helps business to take efficient decisions and develop strategies that
lead business in right direction and enable to gain competitive advantages. Factors of swot
analysis in the context of TK Maxx are mentioned below:
Strengths: Strengths are the internal sufficiency of business that enable it to gain
competitive advantages over other competitors. Low cost monetary value and quality
merchandise is the demand of more clients and TK Maxx is engaged in providing quality goods
at lower price that create positive impact on clients and attract the towards organisation.
Respective organisation has reliable suppliers, good return on capital expenditure, highly skilled
and experienced staff members that lead business in right direction (AlMarwani, 2020). TK
Maxx has strong brand portfolio and highly satisfies customers that help business to gain
competitive advantages.

Weaknesses: Weaknesses are the areas that requires improvement for attaining
determined goals and objectives. TK Maxx gross sales are seasonal that impacts on overall sales
and profitability of organisation (Tk Maxx Business Model, 2022). Organisational days inventory
is high as compared to other competitors and company is not able to deal with challenges that
raised due to new entrants in segment. TK Maxx also do not have proper product demand
forecasting system so, business missed various opportunities than competitors.
Opportunities: TK Mass concentrates on inexpensive point that will help business to
make good sales during the period of recession. Organisation offers quality merchandise in price
reduction monetary value that will improve organisational customer base and market share
(Dubinsky, 2021). TK Maxx adopts online channel to provide products to customers that help
business to improve sales through attracting higher customer base.
Threats: Competitors are the biggest threat TK Maxx because they offers same products
in industry and reduce organisational customer base and market share. Along with that drawn-
out, economic conditions and new environment regulations that create existing product
categories of TK Maxx. New technology developed by competitors also a serious threat to the
business in medium to long term future that affect business performance and functionality.
PESTLE analysis
Pestle analysis is the framework that help business to access external environment factors
that impacts business operations and performance in positive and negative manner. TK Maxx
analyse these factors carefully and consider them in decision making and policy formulation that
help business to perform efficiently and attain determined goals and objectives. External
environment factors are mentioned below:
Political factors: In political factor various aspects are included such as current and
future taxation policies, political support and relationship with other countries that impact
business in positive as well as negative manner. TK Maxx is affected by the revenue
enhancement policies, political stableness, trade restrictions and duties restrictions (Zorpas,
2020). TK Maxx is the organisation one of oldest retaining organisation that is influenced by the
changes in political laws and regulations.
Economic factors: Economic factors are related to overall economic situations country
that directly impact business performance and functionality. There are various issues such as
economic recession, capacity of consumer spending, currency exchange rates and level of

government spending directly impact on TK Maxx growth and success. Planetary recession as
well as economic downswing has reduced the level of revenue of respective organisation.
Organisation highly depend on its vendors who are located in different countries so TK Mass has
to analyse the economical conditions of countries and develop policies accordingly.
Social factors: Social factors plays important role business performance which is
affected by the changes that are happened in society. Now these days, most of people are going
sophisticated and prefer stylish apparels. TK Mass organisation offers stylish and unique
apparels in affordable prices that help business to attain determined goals and objectives with
efficiency (Phan, 2021). TK Maxx adopts off price strategy that help business to make deal with
new fashion. Attitude, choice and preference of customers are also the social factor that affect
business performance.
Technological factors: Technology plays important role in the success of an
organisation. Effective technology adoption helps business to reduce prices of products and
improve quality. TK Maxx uses efficient production and manufacturing technologies that
improves organisational production rare and it provides online facility as well as e-commerce
facility to customers that help business attract wider customer base.
Legal factors: Legal factors include various aspects such as changes in legislations, laws,
regulatory bodies and trading policies that impacts overall performance and efficiency of TK
Maxx. As respective organisation adopts off-pricing strategy so, it is getting affected by these
factors directly and indirectly. Along with that age limitation, environmental laws, employment
laws also affect business performance and functionality.
Environmental factors: Environmental factors are related to some specific areas such as
pollution, environment conditions, weather and nature. TK Maxx takes various actions to
maintain neat and clean environment that improve business reputation and sustainability (Nunes,
Viani, and Ševčík,2020). Organisation adopts waste management techniques that protect
environment from harmful impacts.
Changes in pestle factors influenced the opportunities and threats
Advancement or up gradation in technology is the factor that create opportunity for
business because through using latest production techniques, delivery system TK Maxx can
improve its production rate and serve better quality products and services to customers.
Technological advancement enable business to reduce production cost. TK Maxx adopts e-

commerce or online shopping that provide opportunity to business to reach large number of
customers globally and improve business sales. Political stability is the factor that creates
opportunity for organisation perform organisational operations with great efficiency and
effectiveness.
Trade restrictions and changes in laws, regulation, trading policies, regulatory bodies
create threat for business as well as affect overall business performance and functionality.
Economic conditions, pandemic of Covid-19 and economic recession are some factors that bring
uncertainty in business operations that affect business in negative manner (HIDIROĞLU, 2020).
Social factor also affect business because interest, preference and demands of customers changed
regularly that directly impact on business sales and profitability ratio.
How business addressed its strengths to negate threats and weakness affecting opportunities
TK Maxx accesses its strengthen area that help business to deal with threats that are
come from external environment. As organisation adopts low-cost monetary system that enable
business to provide quality products and services to customers at affordable prices. This strength
helps business to deal with potential competitors. Organisation has skilled and experiences staff
members who are able to perform well on latest technology and lead business towards growth
and success. TK Maxx has strong product portfolio and strategic planning that enable business to
perform efficiently even in recession time period.
Most of sales of TK Maxx depends on specific seasons that impacts on regular sales of
business impacts on regular sales. Respective organisation is not able to deal with new entrants
who enter in industry with latest technology and working process that affect business power to
cover higher market share and customer base. Organisation do not have appropriate product
demand forecasting system so, business missed various opportunities than its competitors.
leadership styles
According to views of Morkevičiūtė, and Endriulaitienė, (2020) Daniel Goleman’s
introduced various leadership styles that are used in different business situations and lead efforts
and actions of employees in right direction. Leadership style is defined as the leader's behaviour
when they are directing, guiding, motivating as well as managing the group of people. Leaders of
business motivates others to perform, create and innovate that help business to attain determined
goals and objectives in efficient manner. Some leadership styles are mentioned below:

Coercive leadership style: This leadership style is the directive or commanding leadership in
which leaders lead an employee to execute a specific task. In this leadership style, it is expected
from employees to complete the assignment or task with asking any question and without
complaining. It is effective in the situation when leaders need to resolve a problem quickly and
in efficient manner.
Democratic leadership style: It is also known as participative leadership style in which
every team members are involved in decision-making process. It is helpful when a leader is
dependent on team's expertise (Daniel Goleman Leadership Styles, 2022). It creates flexible as
well as collaborative environment at workplace and improve employees engagement that lead
business towards growth and success.
Coaching leadership style: Coaching leadership style concentrates on personal development
of team members so they can perform determined goals and objectives with efficiency and
effectiveness. Leaders focus on identifying strengths and weaknesses of employees and
encourage them to improve their skills as well as capabilities. Leaders maintain frequent
conversation with team members and provide them proper training so they can complete task in
best possible manner.
Afflictive leadership style: This leadership style is concerned with harmonizing the team in
the situation of negative ambiance. Leaders try to resolve conflicts within group through
developing collaboration. Leaders develop team in which everyone feels valued and part of team.
It helps to create positive work environment for team members and improve employees morale.
(Bouzouitina, Khaireddine, and Jarboui, 2021). In this leadership style, leaders put people first
and maintain positive relationship that motivate and retain employees with organisation for
longer period of time.
It is recommended to TK Maxx to adopt democratic approach in organisation in which
business leaders appreciated the contribution of team members and involve them in business
decision-making. It improves employees engagement that helps business to attain determined
goals and objectives with efficiency and effectiveness because appropriate decisions taken in this
leadership style. Employees others team members are closely related with customers preference
and their requirement so they can provide better advise to business for producing suitable
products that satisfy customer's needs and demand. TK Maxx should organise frequent meetings
to discuss employees convey their ideas and opinions that leas business in right direction.

Corporate social responsibility
According to views of Bae,Lund‐Thomsen and Lindgreen, (2021)Corporate social
responsibility is defined as the concept of management through which companies integrate social
as well as environmental concerns in business operations and their interaction with stakeholders.
Now these days, business develop various comprehensive CSR strategies that are related to
environmental, social and supply chain. TK Maxx is committed towards responsible business
practices as well as regular review its policies and establishes ethical and environmental
standards that plays important role in protecting environment. Respective organisation invest in
the projects that help to reduce plastic use and waste for the purpose of reducing carbon
footprints on environment. Along with that TK Maxx improve labour policies, participate in fair
trade, develop corporate policies that are beneficial for organisation and maintain diversity,
equity and inclusion. Through adopting these corporate social responsibility, business creates
effective positioning over competitors that lead business towards the path of growth and
development.
CONCLUSION
From the above report, it can be concluded that business is the legal entity that engaged
in various commercial and industrial activities. It is important for business to analyse internal ans
external environment factor and consider them in business policies and strategies for gaining
sustainable competitive advantages. Swot and pestle analysis are the frameworks that are used by
business to access these factors. Appropriate and suitable leadership style helps business to lead
operations in the direction to attain determined goals and objectives with efficiency and
effectiveness.

REFERENCE
Book and journal
AlMarwani, M., 2020. Pedagogical potential of SWOT analysis: An approach to teaching critical
thinking. Thinking Skills and Creativity, 38, p.100741.
Bae, J., Lund‐Thomsen, P. and Lindgreen, A., 2021. Global value chains and supplier
perceptions of corporate social responsibility: a case study of garment manufacturers in
Myanmar. Global Networks, 21(4), pp.653-680.
Bouzouitina, A., Khaireddine, M. and Jarboui, A., 2021. Do CEO overconfidence and narcissism
affect corporate social responsibility in the UK listed companies? The moderating role
of corporate governance. Society and Business Review.
Dubinsky, Y., 2021. From start-up nation to sports-tech nation? A SWOT analysis of Israel's use
of sports for nation branding. International Journal of Sport Management and
Marketing, 21(1-2), pp.49-75.
HIDIROĞLU, D., 2020. Strategic leadership: Best practical leadership style to business
strategies in the period of COVID-19 Epidemic. Turkish Studies-Social Sciences, 15(4),
pp.1945-1955.
Morkevičiūtė, M. and Endriulaitienė, A., 2020. Explaining work motivation through perceived
transformational leadership: what to expect in a sample of female employees?. Gender
in Management: An International Journal.
Nunes, C., Viani, A. and Ševčík, R., 2020. Microstructural analysis of lime paste with the
addition of linseed oil, stand oil, and rapeseed oil. Construction and Building
Materials, 238, p.117780.
Phan, S., 2021. The effect of pestle factors on development of e-commerce. International Journal
of Data and Network Science, 5(1), pp.37-42.
Zorpas, A.A., 2020. Strategy development in the framework of waste management. Science of
the total environment, 716, p.137088.
ONLINE
Daniel Goleman Leadership Styles.2022 [Online] available
though:<https://www.toolshero.com/leadership/goleman-leadership-styles/>
Tk Maxx Business Model.2022 [Online] available through:<https://paperap.com/paper-on-t-k-
maxx-strategic-analysis/>