Understanding the Business Environment

The study highlights the development of better innovations through PESTLE analysis and its influence on factors like political, economical, social, technological, legal, and environmental factors. The study focuses on the ZARA Company and its growth.

Running head: Understanding the business Environment
Understanding the business Environment
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Understanding the business Environment
Table of Contents
Introduction................................................................................................................................2
PESTLE Analysis.......................................................................................................................2
Conclusion..................................................................................................................................4
Reference list..............................................................................................................................5

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Understanding the business Environment
Introduction
The study will be highlighting in the development of better innovations that will
automatically improve PESTLE analysis that will be mainly looking for the development of
the study. The study is important in the sense that through the development of PESTLE
analysis will be highlighting the influence of factors like political factor, economical factor,
social factor, technological factor, legal factors and environmental factors. The study will be
mainly highlight the development of the ZARA Company that will be allowing in the
development of the business. Through the PETLE analysis, it is important for the study to
identify the factors that will be helping in the growth.
PESTLE Analysis
The PESTLE analysis will be able to highlight the resource allocation of the
companies and the economy that will be highlighting the influence of the above-mentioned
factors that will be helpful for the development of the better involvement of resources.
Political factor
The political will be looking for the development of the business in the United Kingdom.
Through the development of better GDP is having a value of 0.2% and this is the monthly
trend that the country is facing. On the other hand, the development of annual growth of the
country is going to 1.3%. This is important in the sense that through the development of
government policy the UK economy is basically growing (Abdelkafiand Täuscher, 2016).
This factor is important in the sense that through the involvement of better policy the
economy will be developing investments. Zara UK is highly depending on the political
condition of the economy in order to invest heaviliy in the Industry. They will be willing to
invest in the economy, as the growth of the GDP is highly growing in nature. This is

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Understanding the business Environment
important in the sense that through better development of the investment they will be able to
improve their position in the market (Zara.com, 2019). Taking the help of the political factors
the company will be aiming to highlight the incorporation and they will grow as the growth in
the economy will allow the company to increase their investment. It is important for the
development of the company along with the economic growth.
Economic factors
Inflation rate is prevailing in the economy at a rate of 1.9% in the United Kingdom.
This is important in the sense that through the development of better monitoring of the
government regarding the inflation. The improvement in the financial issues is one of the
crucial criteria in the sense that it will minimise the economic performances. On the other
hand, the interest rate is not increasing that is making an impact on the savings of the
consumers (Antikainenand Valkokari, 2016). Economic factors will help ZARA in increasing
their investment. Through the incorporation of the inflation rate it will be important for them
to identify the development of resources that will help in the innovtion of busines
technologies that will not only allow the development of the business in the domestic and
international market (Zara.com, 2019). ZARA will be looking to increase their innovation. It
is important for the company to increase the level of the innovations. It is important for the
company to increase their development through employing skilled employees if the
unemployment is less in the economy.
Social factors
Social factors are important in the sense that government is focussing on the
development of the employment in the economy. On the other hand, the employment level is
about 76.1%. This is important in the sense that since 1971, this is one of the best
employment status that is going to highlight the development of the investment in the

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Understanding the business Environment
economy (Brenner, 2018). Through the innovation of the technology, the UK government is
making sure that the employment is remaining constant and it continuously increase the
development of business in UK that will increase the employment. Due to increased level fo
employment in the country, the company will be able to get high benefit if the company is
willing to increase the level of the employees to be hired. ZARA will be looking to increase
the employment by taking the development of factors that will be looking to increase the
development of company. Factors like production ability, resource distribution will help the
company in implementing better development of the resources.
Technological factors
Technological factors are going to highlight the development of better investment that
will bring better rate of employment. In order to highlight the development of better
innovation this will be looking into the development of the information and will allow the
development of employment (Evanset al.2017). Through the innovation of the technological
factors the United Kingdom will be looking for the development of better business. ZARA
will be improving the development of the technologies and will be willing to improve their
production level. Using advanced level of technologies, the study will be mainly looking for
the development in the industry as they will be looking to bring innovations in their products
design and also in the marketing of the goods. It is important to utilise the upgraded
technologies that is available.
Legal factors
The legal factors will be willing with the development of business and will be looking
for the development of laws and regulations and will be highlighting the importance of better
development of economic performances (Gretzelet al.2015). Through the implementation of
better rules and regulations will be looking for the development of better economic

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Understanding the business Environment
performances that is present within the United Kingdom. Consumer spending Rise is about
0.4% that is reflecting the development of rules and regulations (Kolk,2016). It is important
for the company to increase the resource allocation. On the other hand, the involvement of
the legal factors that will allow the company to increase their association with the business.
This will definitely allow the incorporation of better production that will allow the ZARA
clothing to do business in international market.
Environmental factors
The environmental factors will be looking to innovate the minimisation of the
environmental degradation that will boost of the economic development (Suneja, 2017).
Through the innovation of better policies and pollution control standards will be to utilise the
development of better accessibility to the production by maintain the pollution.
Conclusion
The study has shown the fact that how the various factors have opined and contributed
to the development of better economic activities that will easily bring the development of
better aspects to the monitoring of the policies.

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Understanding the business Environment
Reference list
Abdelkafi, N. and Täuscher, K., 2016. Business models for sustainability from a system
dynamics perspective. Organization & Environment, 29(1), pp.74-96.
Antikainen, M. and Valkokari, K., 2016. A framework for sustainable circular business
model innovation. Technology Innovation Management Review, 6(7).
Brenner, B., 2018. Transformative Sustainable Business Models in the Light of the Digital
Imperative—A Global Business Economics Perspective. Sustainability, 10(12), p.4428.
Evans, S., Vladimirova, D., Holgado, M., Van Fossen, K., Yang, M., Silva, E.A. and Barlow,
C.Y., 2017. Business model innovation for sustainability: Towards a unified perspective for
creation of sustainable business models. Business Strategy and the Environment, 26(5),
pp.597-608.
Gretzel, U., Werthner, H., Koo, C. and Lamsfus, C., 2015. Conceptual foundations for
understanding smart tourism ecosystems. Computers in Human Behavior, 50, pp.558-563.
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.
Suneja, V., 2017. Co-Ed Understanding Business Environments. Routledge.
Teece, D.J., 2018. Business models and dynamic capabilities. Long Range Planning, 51(1),
pp.40-49.
Zara.com. (2019). ZARA United Kingdom | New Collection Online. [online] Available at:
https://www.zara.com/uk/ [Accessed 1 Apr. 2019].

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