Business Organisations and Environments: Arcadia Group Plc Case Study

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Business Organisations and Environments in a Global
Context

Table of Contents
Introduction................................................................................................................................2
Conclusion................................................................................................................................12
Referencing..............................................................................................................................13
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Introduction
In this study paper, it will discuss the business organisations behaviour in the global context.
It will also discuss the ways of the operations that use by the organisation in order to grow the
organisation profit and productivity value. In order to study the business organisations the
company has selected the Arcadia group plc UK, company that situated in UK and it’s
headquarter is based in London. In order to understand the organisation environment the
PESTLE and SWOT analysis have been implemented that helps to study the organisations
working process in a detailed way. The PESTLE and SWOT analysis also helps in
developing the internal and external issues within the company Arcadia Plc. UK
(Arcadiagroup.co.uk. 2019).
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Information on the selected business organisation
Arcadia Plc is a multinational retail company In UK, and it has it’s headquarter based in
London. The company was founded in 1903,they used to offers a wide range of the product in
the world base. They have wide ranges of clothing products under the same segments that
include Burton, Miss Selfridges, Top Man, Top Shops and many more. They have the
employees of 23, 000 in the worldwide that helps in building the company’s image in the
wider range. The company has more than 2500 outlets across the worldwide. The main
competitor of the Arcadia Group Plc is the Tesco Plc, Aveva, Primax and Marks and
Spencer’s group UK, The company use to perform their management plans and evaluate
every department in a very efficient manner that helps to grow the business making policy in
a detailed way. Arcadia evaluates various departments they follows the various structure of
financial planning in order to grow the productivity value in the global context.
(Arcadiagroup.co.uk. 2019)–
Arcadia Group is a private organisation that used to serve in the UK, in a wider concept in
order to grow their market segments. Arcadia follows their basic principles that helps them to
gain their image in the market. They have their market shares in the globally that helps in
profit earning in a great way.
From 2010 to 2015 the company reported its financial turnover of £ 268.3 million because it
was the new in its segments, so they have the strong business strategies that increases it
revenue management in a wider context. After wards in 2016, the company reported its major
failure the slow down the company’s productivity that is £ 2009.8 million that decreases the
40% of sales revenue in past 3 years the company’s has faced a huge loss in the profit making
business that slows down the productivity value in the market. In 2017 company started, its
growth percentage by implicating of the new brands in their segments by late 2017 the
company’s profits grows up to 22% in the global context. There is always a threat of growing
competitors that reduces the company value about to 6% and somehow ii has overcome its
financial base in a great way. In 2019, the company has reported that they have increased
their profits up to 80% that they have mentioned in the economics times report and now the
company has the earnings of £ 300 million of revenue in the global context and have a more
than 500 shareholders in the UK.
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Figure 1: Revenue income based on global context
(Source:Afrifa, 2016)
In 2016, the faces many a huge revenue fall due to the new taxations system has implement in
the market. This affects the company and it results in reducing the shareholders over the
worldwide
Discussion of the allocated business environment
In order to understand the business environment the company the implies some various
factors that helps to understand the external factors within the Company in the below section
PESTILE analysis has been done in order to understand the external affairs of the company’s
and it has been evaluated in a detailed way between the company Arcadia Plc (Prajogo,
2016).
Factors of PESTILE Impact in the company
Political Factor The political factors play a major role in
shaping the company’s profit in a great way.
The various government terms and polices
that includes the taxations system and others
helps the company’s in terms of profit
making. The various rules and regulations
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help in allocating the company cost in a great
way. The Arcadia Plc used to make an
effective if something changes in the
taxations polices it would not affect in the
company’s profit.
During the Brexit move Arcadia plc has to
reduce, its cost of the product in a great
extent at that time Arcadia’s revenue had fall
5 times and GDP ratios has failed to 50%.
That somehow affects the company’s good
will in the market (McNair, 2017).
Economic Factor There are various economic factors that faced
is faced by the Arcadia plc is when the GDP
in normalised the company used to earn only
the minimum number of the profits in the
world base. During the falls the company
earn it’s per capital income from the market.
The company’s growth has drastically
changed in the sudden period. The economic
factors that build up in growth of the
Inflations rates on the product, low
availability of raw materials, unemployment
and many more, somehow the
unemployment factors affects the company
in a great way, somehow it affects in
development making process in a great way
(Nelson, 2015).
Socio-cultural Factor Arcadia Plc somehow used to look for their
customer needs and their preferences they
used to provide the product that is based on
the customer needs. It helps in creating a
transparency in the company and helps in
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growing the positive feedback, that somehow
helps in maintain the good image in the
market.
Arcadia plc used to provide their products in
under the same roof that grow the customers
involvement towards the brand, The
company looks for the online platforms in
order to deliver their products in every part of
the country. This also helps in creating a
good brand value in the market and helps in
creating a brand image of the company in the
minds of the customers. This somehow
createsa transparency between the customers
(Routray et al., 2015).
Technological Factor Day by day, every sector is upgrading their
technological equipment in order to grow the
productivity value that helps in earning the
good profit in the market. Arcadia helps the
technologies in order to evaluate the supply
and demand process within the organisation
in a detail way. The company uses many
innovative technologies in order to make the
changes in the products. It also helps in
management of financial system in a very
calculative way (Maurino et al., 2017).
Environmental Factor The company utilise the environment
resources in a very efficient way that helps,
that helps in building the resources in the
short period. The company uses their product
that made up of biodegradable material that
helps in reducing the pollutants to the
environment. The company used follows the
norms and conditions in a proper way that
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used to help them in providing the raw
material in a great way. That helps to
maintain its long-term budget making
process.
Arcadia plc also banned uses of plastic while
delivering the products to their customers.
They use the paper bag in order to maintain
the ecological balance in the great way
(Abbott et al., 2016).
Legal Factor The company follows the basis sets of
regulations that are amend by the legislations
that help in creating the transparency in
between the employees and the customers.
The legal factors help the company in gaining
the good productivity value and helps in
gaining the name in the broad market. This
laws helps in maintain a proper relations
between the employees in the company and
that somehow will helps in when the
company used to faces the major issues in
achieving the goals and objectives in the
great way. This leads to positive business
making plan strategies in a broad way
(Seidman, 2016).
Table 1: PESTLE Analysis
(Source: Created by the learner)
Application of an appropriate analytical approach.
In order to evaluate the internal affairs of the Arcadia swot analysis has done.
SWOT Analysis
In this section, it is describe the company’s strength and weakness and evaluated in a detailed
way of the treats and opportunity of the company can be evaluate by low, moderate and
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high that helps in evaluating the growth of the company’s productivity value (Bull et al.,
2016).
Strength
Arcadia is the foremost company in the UK
based in a retailed segment. They use to
provide the premium qualities of the product
in the world base as per their customer’s
needs
Due to its brand value the customer’s
preferences in the company is very high that
helps the growth of the company’s
productivity value in the great way. The
company used to provide the quality as per
their customer’s needs this helps in creating a
good image in the market.
The company provides better customers
services if they face any issues.
Weakness
Arcadia faces in weakness in availability of
the product. They do not have the small size
garment for their customers that affect the
customers in a great way.
The company fails in order to make the
proper business strategies that somehow
affect the productivity of the company in a
great way.
They still now use the old technologies in the
shops that create a bias in the billing process.
Opportunity
Arcadia has great opportunities in order to
expand their business in the global context.
Arcadia used to promote their product
advertisement in the online platforms
thathelps in gaining the customer attractions
in a great way that helps in growth of the
company’s profit in a maximum way.
The organisation has a good will in the
market that helps in growing their
stakeholders in a great way. This helps in
increasing the revenue of the company in a
Threat
Arcadia has a competitors in the world base
so they should make their business strategies
in an appropriate way that helps in maintain
the company’s position
They should be very careful while providing
the offers and the benefits to their customers
The company maintains different government
policies that help in binding the company’s
brand name in the global context.
Arcadia shall make the proper pricing
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profitable way.
The company has the opportunities in
opening their outlets in the other parts of the
country that will help in increase the brand
image of the company.
strategies for their products that help in
growth of the company’s value in the market.
Table 2: SWOT Analysis
(Source: Created by the learner)
Implications of porter 5 force model theories-
Michel porter implements, some driving techniques in order to run the business in a
profitable way that could analyse the industry and helps to gain a proper position in the
market
Figure1:Porters five force Model
(Source-Banerji et al., 2016)
The model includes the key techniques in order to increase the business in a wider scope-
Supplier power- In order to grow the business in the wider context the organisation should
examine his supplier powers. They should careful while evaluating there supplier power in
the wide way. Arcadia group plc has high threats in the supplier power, because it will affects
the company decision making plans in a broad way, they have to maintain their supplier chain
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in a very careful way that helps in to grow the company’s demand in the great way (Ghadgeet
al., 2017).
Threats of New Entrants- The Company should also evaluate their customer demands in a
proper way, because there is always a risk of new entrants in the wider aspects. Day to day
increasing of the new entrant that company faces a moderate risk of trade development. The
new entrants of threats will not affect the company because of their brand value in the market
they have to make the proper decision-making plans that can be easily reduce the threats to
moderate, low in a wider context (Obeng et al., 2016).
Threats of substitutes- This threat can be reduce if the company follows the demands that of
the customer, in order to develop their organisation image in the wider context. Day to day
increasing of the new substitute products the company faces a low risk in the company. There
may be the many subsidiary of the product the quality of the product will may vary, the risk
is identified low in the company Arcadia Plc. UK (Ferrer and Perrone, 2016).
Buyers Power- Company should maintain proper price strategies that help in binding their
customer’s preferences they should carefully evaluate the customers pricing value that helps
in buying the product in a large mass and increase the sales value. Arcadia Plc somehow
faces a low risk in order to building their company’s image, so they have the low risk in
buyer’s power. The customer preference is totally depend on the customer base, so they do
not find any risk regarding the buyer’s projections. Here, the porters implicate the low risk
factors it has to be managing in order to maintain the risk in a great way. (Jaiswal and Ha-
Brookshire, 2018).
Degree of Rivalry- The Company should understand the degree of his rivalry. The company
should his follow his rivalry competitors in a very careful way that could help in business
strategies in the strong way (Havard and Reams, 2018).
Company’s helps growing the business into the macro environment they should follow his
every threat in a very careful way that increases the sale productivity in the market. The
implication of potter’s five-force model helps in growing the company sales strategies in a
better way.
Use and application of appropriate data and examples Structure of and quality of writing in
the report
The Arcadia in a macro environment and has a great opportunity to invest their funds in the
microenvironment. They have the biggest opportunity in the global context they want their
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company growth in the worldwide that could help in creating a good image in the market.
The company has to maintain proper business strategies that could help the company when
they find any issues in regarding the business productivity growth. The many trade polices
affects the company sales but they have to maintain their trade implications in a better
way.Moreover, the company has a great strength in the availability of the product so they can
easily build up their productivity value that helps in gaining the good image in the market.
In order to grow their business from micro to global context it is recommended that the
company should evaluates its every working department in a proper way. The appropriate
theories has been accessed in order to understand the company’s weakness, the Company
evaluate the finance department in a very careful manner that helps to grow the profit of the
company. They make the proper decision plans that help to grow the company’s net worth
income and the per capita investment it also helps in attracting their business in the macro
level. The organisations should implement many new and innovative techniques in order to
grow the company’s revenue system in a broad way. If the company make the strong business
policies by applying theories and the model the company should takes its 1st steps in order to
grow its business in the global context.
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