Business Environment Analysis: Arcadia Group's SWOT and PESTLE Report

This report analyzes the Arcadia Group, a UK-based clothing retailer, examining the internal and external factors impacting its business performance. The report utilizes SWOT analysis to assess the company's strengths, weaknesses, opportunities, and threats, highlighting its position as the second-largest clothing company in the UK, as well as its challenges like lower profitability and competition. Furthermore, the report employs PESTLE analysis to evaluate the political, economic, social, technological, legal, and environmental factors influencing Arcadia Group. The analysis considers the impact of Brexit, economic recession, technological advancements like online shopping, and environmental regulations. The conclusion emphasizes the importance of both internal and external environment analyses, using SWOT and PESTLE respectively, for effective business management.

Individual Poster

INTRODUCTION
In business environment various factors are exists that needs to consider while operating
a business as it helps to know what factor can affect the organizational performance. To
understand about this Arcadia Group has been selected that is high street clothing retailer
company, headquarter in London. The management understand the requirement and provide
better quality of products. This report cover understanding about internal and external factors
that affects the businesses.
Describe and discuss how the external and internal factors effect a specific business organization
of your own choice
Internal factors
SWOT analysis
Strength Weakness
 Arcadia Group is 2nd largest company
in UK clothing market.
 The organization is having 2,311 stores
 Less profitability as it is selling
products at lower cost.
 There is having higher competition as
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in UK and 674 stores in overseas.
 The organization is becoming the
leading multi brand, out of town
fashion store.
 Providing better quality and prices of
products that influences number of
customers.
having many competitors.
 Changes in currency (Damanpour,
Sanchez‐Henriquez and Chiu, 2018).
 Changing in leadership
 Food safety issues
Opportunities Threats
 Growth of online market and shopping
as customers buys products.
 Using of AR and VR with the help of
new technology.
 Proper training to employees.
 Focusing on customer demand and
providing products.
 Brexit and supply chain issues.
 Economic recession .
 UK -EU relation that affected sales
negatively.
External factors
Discuss the different ways in which your chosen business or organization can impact on the
external environment.
PESTLE Analysis
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Political factor: The statement of factor involves government policy, tax policy, political
stability and trade restriction. After Brexit in UK and EU, it has explained that selling activities
of Arcadia Group has been reduced due to having tight policies. On the other side, reduction in
tax rate of UK became an opportunity to increase the sales and performance in competitive
environment.
Economical factor: This factor is showing the relation with economic growth, interest
rates, wages rates and disposable income that has affected a business. As Pandemic has occurred
suddenly in world which has reduced the employment rate so buying behaviour of customers
have been reduced. This affected the sales of Arcadia Group negatively as less number of buyers.
Social factor: Different factors are involving as population growth, health consciousness,
demographics, and buying behaviour. Arcadia Group is taking the advantages of such behaviour
as it understand the needs of customers and provide the products and services accordingly. On
the other side, due to pandemic all activities of sales has been reduced as different culture of
people are living in other places (Anees-ur-Rehman and et.al., 2020).
Technological factor: The considering activities are new technology, copy rights,
effective communication and others that affects sales. In Pandemic all businesses has stopped
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due to lock down where new technology such as online shopping and safe delivery facilities have
started to provide by Arcadia Group that has became an opportunity for organization and
operating business effectively.
Legal factor: This factor involves all legal rights, laws and legislations that are needed to
follow in operating a business. Arcadia Group is following healthy and safety law, employment
laws and other that helps to run a business accurately.
Environmental factor: Arcadia Group is following all environmental legislation,
reducing carbon emission, and minimum wastages that build the customers and organization
confidence as organization is working for safety of people (Franceschelli, Santoro and Candelo,
2018).
Thus, it has explained as internal and external factors might be affect the Arcadia Group
where it is important to focus and manage the all functions.
CONCLUSION
From the report it can be concluded that PESTLE is related to external environment that
might be affect the business. And other side, to analyse the internal environment SWOT analysis
is required to be done.
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REFERENCE
Books and Journal
Damanpour, F., Sanchez‐Henriquez, F. and Chiu, H. H., 2018. Internal and external sources and
the adoption of innovations in organizations. British Journal of Management. 29(4).
pp.712-730.
Anees-ur-Rehman, M., and et.al., 2020. How brand-oriented strategy affects the financial
performance of B2B SMEs. Journal of Business & Industrial Marketing.
Franceschelli, M. V., Santoro, G. and Candelo, E., 2018. Business model innovation for
sustainability: a food start-up case study. British Food Journal.
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