LSBM103 Business Environment Report: Alexander McQueen's Challenges

This report examines the business environment of Alexander McQueen, a British luxury fashion house, focusing on the clothing and accessories sector. It identifies two key issues: changing consumer tastes and preferences, and increasing competition from online retailers and technology. The report categorizes these issues using the PESTEL model, specifically highlighting the social and technological factors influencing the brand. It discusses the positive and negative impacts of these issues on Alexander McQueen, such as opportunities for improved online presence and the challenges of maintaining a competitive edge. The report concludes with a reflection on the challenges faced during its preparation, particularly data gathering, and emphasizes the importance of analytical skills in business environment analysis.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
Identifying and describing two key issues affecting the Clothing and Accessories of
Alexander McQueen...............................................................................................................2
Using the PESTEL model for categorising and explaining the two issues............................3
Discussing the positive and negative impacts of two key issues in organisational context.. .5
A reflection on any challenges I faced and overcame while preparing this report................6
CONCLUSION................................................................................................................................7
REFRENCES...................................................................................................................................8
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INTRODUCTION
Business environment is a combination of internal and external factors that influences the
business its decision making and a company’s operating situations. Business environment is a
broad term that include factors such as the emphasis stakeholders have over business, the
economic and social trends and the market condition. The report is developed on Alexander
McQueen, which is a British luxury fashion house founded by the fashion designer Alexander
McQueen in 1992. it is a popular British fashion brand and specialises in fashion industry. The
brand designs and produces fabulous garments for men and women offering ready to wear
apparel and accessories that are entirely designed by the designers associated which the company
Alexander McQueen (Hamilton and Webster, 2018). The report covers identification of issues
affecting the clothing and accessories sector of the UK. Moreover, the positive and negative
impacts of these issues on organisation are discussed. Furthermore a reflective paragraph is it
produced on two challenges faced while preparing the report.
MAIN BODY
Identifying and describing two key issues affecting the Clothing and Accessories of Alexander
McQueen.
Business environment is a combination of internal and external factors that influences the
business and operations of the company along with holding use impact on the decision making of
the businesses. Clothing and accessories comes under fashion industry and one of the most
revenue generating unit in the fashion world. the business environment of fashion industry and
different companies operating the industry have impact over the businesses and more importantly
on revenue and profit units (Fabuš, 2017). The market regularly fluctuates and changes rapidly
due to the influence of various factors and components present in the marketplace. These market
fluctuations impacts the internal and external business environment of the organisation. Issues
and challenges faced by clothing and accessory manufacturer and seller Alexander McQueen are
as follows:
 Changing taste and preferences- The greatest influencing factor on fashion industry
and most importantly clothing and accessories sector is of changing taste and preferences
of the customers and people in the economy. Alexander McQueen is an international
brand which is domestically situated in London but serves to worldwide customers.
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According to the current trend analysis it has been identified that the biggest challenge
that is faced by the company is of fluctuating and rapidly changing preferences of people
and potential buyers. Nowadays consumers are more attracted towards innovative and
sustainability designed clothing and accessories. That is people from different segments
and their wishes are changing and evolving towards buying more sustainable and
creatively designed clothing and accessories (Eling and Schaper, 2017).
 Increasing technology and online competitors- Digital tools and technology is
regularly evolving and updating. The revolution brought in the technological world is
also impacting on the businesses belonging to different industries. Fashion industry is
also being influence and affected due to the enhancement and day to day use of
technologies and digital tools. Alexander McQueen is facing challenge in balancing their
revenue and sustaining in the industry because of the increasing competition due to
enhancement in technology and development of online competitors. The internet and
online platforms reduce the barriers and restrictions of entering the fashion industry
having different individuals to enter the business with investing very few cost and
reaching to maximum customer base in no time. This is the Key challenge which is faced
by Alexander McQueen in the fashion industry and the business environment the
domestic or International is being affected due to it.
Increasing competition in the physical and in the online business of Alexander McQueen and
changing preferences of the potential customers are the two key challenges which are being
faced by the clothing and accessories manufacturer. The designer of Alexander McQueen have
regularly and rapidly develop creative and innovative designs of clothing in order to sustain in
the market and maintain the competitive edge. External business environment of Alexander
McQueen is holding a large impact on its business and influencing its internal environment along
with affecting the revenue sales and profitability of the organisation (Calabrese and et. al., 2018).
Using the PESTEL model for categorising and explaining the two issues.
The framework of PESTLE analysis is a tool used by organisations to understand its external
business environment and all the elements that are affecting the entity and its operations in
positive or negative manner. The PESTLE analysis framework has six elements and it is
basically an acronym of Political, Economical, Social, Technological, Legal and Environmental
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factors. The PESTLE analysis framework is used for categorising and explaining the two key
issues highlighted in the above section and providing the specific reasons or rationales behind it.
 Social- The social factor of pestle framework concentrates and focuses over the socio-
cultural factors and the areas that particularly involves the shared believes assumptions
and attributes of the population (Ren and et. al., 2017). The social factor includes the age
and distribution, career attitudes and population growth of the particular economy. The
key challenge of Changing taste and preferences, belongs to the social factor as the
population in the domestic and international market of Alexander McQueen is rapidly
and frequently changing their desires and requirements. The social culture factor focuses
on the population and the people are the potential buyers of Alexander McQueen are
evolving their needs and moving towards more innovative creative and unique designs of
coating and accessories. The issue of changing taste and preferences belongs to social
factor PESTLE framework because the major concentration of this factor is over the
population to which an organisation is targeting and to whom they are selling their goods
and services.
 Technological- The technological factor for teens towards the innovation in technology
and development of advanced Technological tools that affects the operations of the
industry and the market into a favourable or unfavourable situation for the particular
business of a particular industry. The technological factors refers to automation the
amount of technological awareness spreading in the market and being possessed by the
businesses. The key issue of Increasing technology and online competitors, faced by
Alexander McQueen belongs to the technological factor of PESTLE framework market
analysis. The increasing online business and use of technology in day to day lives of
people has factored the business of Alexander McQueen because nowadays people are
diverted towards there is in comfort and preferred to shop online rather than from
physical stores (Lam and Wong, 2018). Easy access to internet increase the online
presence of many computers and also reduce the barriers for people to enter the fashion
industry and more specifically clothing and accessories sector which is why this
challenge is created and determined under technological segment of external business
environment.
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Discussing the positive and negative impacts of two key issues in organisational context.
Business environment of the fashion industry is evolving and bringing revolutionary changes in
the industry which is affecting the businesses on both global and domestic levels. Fashion
industry is considered to be the largest revenue producer for the economy and holds a significant
contribution in growth of GDP of a particular economy and its per capita income. business
environment of a clothing and accessories manufacturer known as Alexander McQueen
developed many challenges for the organisation relation to its success, sustainability and growth
(Daniluk, 2017). In the above sections two key challenges which are being faced by Alexander
McQueen and which presents in the external business environment of the organisation are of
rapidly changing references and desire of its potential consumers and increasing online
competitors due to reduced barriers and enhancement of technologies. These key challenges
negative impacts on the business of Alexander McQueen but also provides opportunities and
positively influence the operations of Alexander McQueen. Positive and negative impact of
external business environment on Alexander McQueen operations are as follows:
Positive impacts on the Alexander McQueen:
The changes taking place in social and technological environment of the UK and international
markets of Alexander McQueen holds positive impacts on the business creating opportunities for
it in order to run for the longer run and to improve their revenue standards (El-Zayaty, 2018).
Which the analysis of current trends and external business environment of Alexander McQueen
it has been identified that the technology is playing a very important role in day to day lives of
the people which creates an opportunity for Alexander McQueen to improve their International
and national presence and reach to the maximum targeted audience in low cost and investment.
Which technology allows the organisation to improve its online presence in the International and
domestic market along with providing attractive marketing tools and techniques. Has known that
marketing is one of the most important activity or operation which is needed to be conducted by
all different business segments and industries in order to sustain and grow further. enhancement
in technologies allowing Alexander McQueen to make use of them for enhancing their customer
base and becoming more accessible to people (Schaller, Vatananan-Thesenvitz and Stefania,
2018).
Negative impacts on the Alexander McQueen:
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The negative influence of changes taking place in external business environment of Alexander
McQueen specifically highlighting towards increasing competition and complexities in
management of Business and maintaining the competitive edge. The social changes influences
Company and its designers to be more creative and regularly bring in innovative designs of
clothes and accessories for satisfying the needs of consumers. But the enhancing technological
use and reduce to barriers for entry in the fashion industry caused great problem for Alexander
McQueen which is the competition in the physical and in online platforms are increasing on a
very fast and aggressive pace (Grizane and Jurgelane, 2017). The people from different regions
are establishing their presence in the online market and attracting consumers towards them by
offering than goods in a lower prices which is affecting the operations and business strategies of
Alexander McQueen as the organisation has to change their business plans according to the
market in order to be competitive and sustain in the competitive environment.
A reflection on any challenges I faced and overcame while preparing this report.
I am very happy unsatisfied that I got an opportunity to a report in respective topics and to
analyse the business environment of the organisation. Report health me and enhance my
knowledge in various different segments and allowed me to enhance my abilities and analytical
skills. Business environment is a vast area of study which requires several skills and knowledge
such as technical, analytical and observational. The report which I produced highlights the
factors and the key challenges faced by a clothing and accessory manufacturer in the external
business environment. While developing report I faced some problems and challenges which at a
point demotivated me but also encouraged my enthusiasm towards my research and help me in
developing effective outcomes. One of the biggest challenge which are stages while developing
the report was while gathering the data. Internet is the best source of Data collection but it can
also becomes a hectic job because there is a School of information available online how to which
I had to sort the data according to my requirements where I needed a lot of analytical and
observational skills. This is one of the most difficult area for me while developing the report but
for overcoming challenge I made use of effective analytical skills and search in a specific area
for finding the relevant and appropriate knowledge and information.
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CONCLUSION
The assessment above concludes or summarises that business environment is the area of
knowledge and who is a lot of opportunities for the organisations of particular industry the
internal and external surroundings of the organisation. The business environment of the
particular industry affects the entities operating in it but these impacts can either be positive for a
specific company and at the same time imposes negative impacts on others. Therefore it is very
important for organisations to conduct appropriate market research in order to identify their
business surroundings and with the help of it they can know their opportunities so that best
outcomes can be attend and Company can move towards growth and success.
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REFRENCES
Books and journals
Calabrese, M. and et. al., 2018. From mechanical to cognitive view: The changes of decision
making in business environment. In Social Dynamics in a Systems Perspective (pp. 223-
240). Springer, Cham.
Daniluk, A., 2017. Cooperation between business companies and the institutions in the context
of innovations implementation. Procedia Engineering. 182. pp.127-134.
Eling, M. and Schaper, P., 2017. Under pressure: how the business environment affects
productivity and efficiency of European life insurance companies. European Journal of
Operational Research. 258(3). pp.1082-1094.
El-Zayaty, N., 2018. An exploration of leadership styles and motivation in Egyptian business
organizations. International Journal of Business and Applied Social Science
(IJBASS). 4(2).
Fabuš, M., 2017. Current development of business environment in Slovakia and Czech Republic.
Grizane, T. and Jurgelane, I., 2017. Social media impact on business evaluation. Procedia
Computer Science. 104. pp.190-196.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Lam, J. S. L. and Wong, H. N., 2018. Analysing business models of liner shipping
companies. International Journal of Shipping and Transport Logistics. 10(2). pp.237-
256.
Ren, J. F. and et. al., 2017. Modelling quality dynamics on business value and firm performance
in big data analytics environment.
Schaller, A. A., Vatananan-Thesenvitz, R. and Stefania, M., 2018, August. Business model
innovation roadmapping: A structured approach to a new business model. In 2018
Portland International Conference on Management of Engineering and Technology
(PICMET) (pp. 1-9). IEEE.
Online:
What is PESTLE Analysis? A Tool for Business Analysis, 2020. Available Through:
<https://pestleanalysis.com/what-is-pestle-analysis//>
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