Global Business Environment (BM461): PESTLE Analysis of Arcadia Group

This report presents a PESTLE analysis of the Arcadia Group, a major fashion retailer, examining its external business environment. The analysis covers political factors, such as political stability and governmental policies, highlighting their potential impact on the company's operations. Economic factors, including economic growth, interest rates, and inflation, are also assessed for their influence on consumer purchasing power. Social factors, such as customer preferences and trends, are considered in relation to the fashion industry's dynamic nature. Technological factors, like innovation and digital disruption, are examined for their role in product development and future growth. Environmental factors, including climate and weather, are analyzed for their impact on clothing design and policy changes. Lastly, legal factors, such as consumer protection and copyright, are addressed for their importance in ensuring compliance and long-term sustainability. The report concludes with a list of references used in the analysis.

Global Business
Environment

Table of Contents
PESTLE analysis.........................................................................................................................1
REFERENCES................................................................................................................................3

PESTLE analysis
Pestle analysis is a technique which is used by organisations for the purpose of analysing
external business environment so that all the potential changes that are taking place within the
industry could be determined (Eichenberg, 2015). Arcadia Group is one of the largest fashion
retailer of United Kingdom which is operating business all around the world. PESTLE is used by
it for the purpose of analysing all the potential changes that may affect its functionality. An
analysis on the basis of all the elements of it in context of the entity is as follows:
Political factors: Political stability, governmental policies, trade restrictions etc. are
component of it. It is very important for management of Arcadia Group to take all of them in to
consideration because slight changes in them may affect operational efficiency of business. For
example, the political stability of UK is very low therefore all the changes which may take place
due to all of them should be focused by the entity (PESTLE of Arcadia Group, 2020).
Economic factors: Economic growth, different types of rates such as interest, foreign,
inflation, deflation etc. In order to sustain in the market it is very important for companies to pay
attention towards all of them. For Arcadia Group it is very important to focus upon all of them so
that possibility of negative impact of them on business could be reduced. For example, slight rise
or decrement in them may affect purchasing power of customers therefore managers of company
should keep detailed information of them.
Social factors: Customer's preferences, choices and requirements are considered as the
part of such elements. In fashion retail industry preferences of customers changes with time
which are focused by Arcadia Group to sustain in the market. These modifications are required
to be taken in to consideration to survive in the industry and find suitable future direction for
business.
Technological factors: Level of innovation, digital disruption etc. are component of this
element which are required to be focused by entities such as Arcadia Group. It is essential for the
company to make sure that all of them are focused by it to bring innovation in its products. With
the help of it growth in future could be acquired (Gilchrist, 2019).
Environmental factors: Environment, climate, weather etc. are these elements of
PESTLE analysis. It is very important for the organisations such as Arcadia Group so that
appropriate changes in policies to design clothes according to environment could be undertaken.
With the help of it organisation will be able to acquire growth in future.
1

Legal factors: It is focused with different types of laws such as discrimination, consumer
protection, copyright etc. In order to execute business properly it is very important for Arcadia
Group to make sure that all the laws are complied by it. It will be beneficial for it to carry out
business in systematic manner. Apart from this it will also help to attain long term sustainability
and growth for business (Veronico and Veronico, 2017).
2

REFERENCES
Books and Journals:
Eichenberg, E. E., 2015. Lake Mead. Arcadia Publishing.
Gilchrist, K., 2019. Mucedorus: The Last Ludic Playbook, the First Stage Arcadia. Shakespeare.
15(1). pp.1-20.
Veronico, N. A. and Veronico, B. S., 2017. Depression-Era Sculpture of the Bay Area. Arcadia
Publishing.
Online
PESTLE of Arcadia Group. 2020. [Online]. Available through:
<https://analysingarcadia.wordpress.com/>
3