Analysis of Business Environment and Key Issues: Barratts Shoes

This report provides an in-depth analysis of the business environment surrounding Barratts Shoes, a prominent footwear retailer in the UK. The report begins with an introduction to the concept of the business environment and its impact on a company's performance. The main body of the report focuses on the key issues affecting the footwear industry, such as promotional measures and changes in customer needs. These issues are then segmented using a PESTLE analysis, examining the political, economic, social, technological, environmental, and legal factors influencing the industry. The report also discusses the positive and negative impacts of these issues on the business, highlighting the challenges faced while preparing the report, including time management and resource constraints. The conclusion summarizes the findings and emphasizes the importance of understanding the business environment for strategic decision-making. The report aims to provide a comprehensive overview of the factors influencing the footwear industry, specifically in the context of Barratts Shoes.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Key issues affecting footwear industry..................................................................................1
Segmentation of two issues on the basis of PESTLE analysis...............................................2
Key issues...............................................................................................................................3
Challenges faced while preparing this report ........................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business environment refers to those factors which directly influence overall business
performance and functions in both negative and positive manner. All these sorts of factors comes
under the different elements such as clients, managers, customers, management, demand,
activities held by government and so many technological factors etc. This assignment is based on
Barratts Shoes which is one of the best high street shoes shops within the UK. Along with it is a
successful brand and known for its lavishly produced boot catalogues during the 1903 (Clarke,
Li and Xu, 2016). Further discussion will be based on PESTLE analysis and two key issues that
directly influence footwear sub sector in both positive and negative way. At last different types
of examples and challenges while making the report will get covered properly.
MAIN BODY
Key issues affecting footwear industry
Within the UK there are different types of problems and issues which are generally faced
by Footwear industry. Issues are related with high rate of interest, big size of defaulters,
irregularity in orders, delay in payments, changing overall needs and preferences within
customers desires, lack of sales promotional measures and so on. Therefore, these type of factors
and issues mainly influence customers needs and demand which all are faced by this industry in
both favourable and unfavourable manner. There are two types of major issues which are going
to be discussed below:
Lack of promotion measures: It is the main issue which is mainly faced by respective
organisation within the footwear industry. According to this sector, they have different types of
promotional channels but sometimes that are not used by this firm. But the main disadvantage of
this factor is to provide valid information in order to target lots of customers for better marketing
within the existing products. This negative issues directly affects overall operations of footwear
industry. Therefore, promotional channels are not used by this organisation. This is all because if
people are familiars with each and every policy of an organisation so that they can change their
mind perception and able to take another services (Sodeyfi, 2016). For this, footwear industry
used TV and newspapers as a promotional channels.
Change in customers’ needs: It is also the major issue which affects all over the
business process and functions of footwear industry. At present people have lots of knowledge
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about footwear and clothes along with several choices and preferences so that mainly creates
changes in their mind set then they prefer what they wants properly. Due to the changes in
fashion industry bring so many problems in current and future trends of people desires towards
the industries. Therefore, manufacturer of this footwear organisation always conduct marketing
research in order to evaluates overall changes within the marketplace as per the customers
demand. Therefore, they face lots of issues and not able to evaluate proper marketing research.
This is because people desires in context with fashion increasing rapidly so it can develop issues
for firms who are dealing with this sorts of scenario (Cepel, and et. al., 2018).
Segmentation of two issues on the basis of PESTLE analysis
PESTEL analysis
It is always considered as the very essential tool and technique which is very helpful for
an organisation to know about overall external environmental factors in order to reduce their
impact from all over the business firms. Therefore, the key issues of PESTLE analysis is
explained below in detail:
Political: This factor comes under the various elements such as political stability, foreign
trade laws, trading laws, tax policies and trade restrictions which directly influence of entire
business of an organisation in so many ways. For example: If political stability within the UK
will more good then it would be beneficial for firms, so that they can achieve their targeted goals
in a perfect manner.
Economical: This is one of the important factor which have so many variances like
inflation rate, exchange rates, economic growth, interest rates and so on. If due to the fluctuation
interest rate can increase within the country then it will show the instability within the political
situations and they can directly influence of Barratts Shoes business in a negative way (Fabuš,
2017).
Social: This is also very essential aspect or factor which generally given information
about overall demographic characteristics, culture, trends, customers choices and preferences etc.
for example: If Barratts Shoes will not consider overall choice and preferences of people towards
footwear and fashion trends then they can get loss and not able to fulfil their needs.
Technological: This is another factor which considers if firm applied innovative
techniques on their work then they can get huge sales and revenue in a proper way. In relation
with Barratts Shoes they are applying innovative tools and strategies and using various
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promoting channels includes Instagram, Facebook, Twitter, Web advertisement in order to
develop awareness about their materials towards consumers mind set in a perfect way.
Environmental: This factor always consist environmental aspects such as various laws,
climate, weather and so on. For instance, If respective firm or sub sector will not focus on
various laws and regulations then they can get negative results from the people and not able to
provide proper products within the marketplace. So this type of negative impact on business will
reduce firms productivity as well as profitability badly. Along with this, sort of negative impact
of business also influence societies and people towards their demand and needs.
Legal: This is much essential factor of PESTLE analysis which is always considered as
various laws, legislations, formulate and famed national authorities by which firms can run their
overall business in a smooth way. In context with Barratts Shoes, as they are operating its entire
business in globally so that they are needed to have proper intellectual rights. After having this
they can easily follow various laws which id given by the organisation so that employees also
can get influenced in a positive way (Hillary, R., 2017). But sometime employees always have
same work position and not able to make proper decisions towards increasing its sales and
revenue in a proper way.
Key issues
Positive impact on business firm
According to the respective organisation there are two major issues which always
influence business firm in a negative and positive both. But sometime they also have positive
impact on the industries. With the help of these sorts of changes and lack of promotional
measures respective is able to known about actual wants and desires of customers in an effective
manner. It helps them to make unique strategical goals and vision in order to fulfil customers
demand on time in order to stay for long period of time within the marketplace. Changes in
customers needs always bring new thoughts into the consumers mindset and encourage them to
think broadly towards customers think. In order to take advantages from these sorts of issues
Footwear industry makes huge channels of promotion so that they can fulfil consumers demand
in an appropriate manner. So the promotional channel based on various activities like TV,
newspapers, magazines, social media, web advertising and internet. From all of these sorts of
integration firms can make them better and able to identifies overall needs and wants of
customers. It will make them productive and profitable at marketplace.
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Negative impact on business firm
From the above specified issues this can be said that, Footwear business increasing day
by day as per the customer demand. But the biggest issues is this in present marketing scenario
there are lots of different types of manufacture and shop keepers within UK so that they always
try to make unique and different footwear for their potential customers. This type of strategies
can easily influenced people of Barratts Shoes, they are not able to make appropriate strategical
ideas and not able to gain huge profits and revenue at marketplace (Virglerová, Dobeš and
Vojtovič, 2016). On the other side by having lack of using promotional channels strategies they
can get loss as they are not properly able to advertise of their goods and services which they want
to share with their potential customers. So the overall negative effect facing by this firm who
deals with stylish boots and footwear's. All this is because in today's world there are huge
competition between so many fashion industries, so that this type of situation from environment
generally influence sales and revenue of respective firm and create negative image in the market.
Challenges faced while preparing this report
While preparing this report at that time, I faced several issues as well as challenges such
as time management, coordination, limited funds, lack of resources and so many. But lack of
time and cost management skills are one of the major factor which are faced by at higher level.
While I worked on this respective project report there is lack of fund and at that movement I was
not able to collect and gathered some information by various sources like internet, channels,
social medials and so on. After this I decided that I should prefer some famous books, journals,
articles and so many other things. With the help of this I can make my report better with huge
knowledgable concepts in a proper way. Another side if I collected information from the internet
sources then it can be the costly and not worthy. Therefore, it is the major issue and challenge as
well which is faced by me during the time of making this report. Along with this there is another
issues more that is time management which heavily impacted on my overall work negatively.
Lack of time administration level, work is not able to segmented in so many parts that's why I
completed in a structured way (Deasy and et. al., 2016). As time management is also considered
as a big negative factor so report did not accomplished at given time which is fixed by me, this
is because there is limited time to make this report in a proper way. If I got some more time then
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I can prepare my report in more better ways by using huge accurate information and data to gain
my overall objectives and goals.
According to the above issues and challenges I can realised that I can overcome all these
sorts of challenges and factors in so many ways. For this I have to use secondary data and
method for collecting accurate information in a proper way. By having this sorts of information I
can remove lots of issues from the report and able to take huge data which I can take as a
personal use for another report (Prajogo, 2016). Therefore, all these sorts of importance and
priorities will improve all over the project and report in a proper manner. But before starting
work on particular project I have to make lots of rules and strategies in order to fulfil my overall
projects needs and wants properly. When I ignored all those aspects which are not rally mean to
me then I can make a well mannered report and able to influence other people at workplace. On
the basis of this it will affects on lots of people and make them energetic in an appropriate
manner.
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CONCLUSION
According to the above mentioned report it has been analysed that, business environment
is the very effective and useful aspect for each and every business type. With the help of this,
firms can easily evaluate overall factors within the marketplace. On the basis of this they can
make their goals better and able to increase overall profits and revenue at huge level. For this
report there is PESTLE analysis has been used in order to categories two major issues which
impacts on footwear sub sector within the UK. In order to overcome negative impact of this
factor there is some recommendation for firm that they should adopt various strategies and things
in order to achieve targeted goals and objectives in a proper manner.
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REFERENCES
Books and Journal
Prajogo, D. I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics, 171,
pp.241-249.
Deasy, S., and et. al., 2016. Controlling use of a business environment on a mobile device. U.S.
Patent 9,247,042.
Virglerová, Z., Dobeš, K. and Vojtovič, S., 2016. The perception of the state’s influence on its
business environment in the SMEs from Czech Republic. Administratie si Management
Public.
Hillary, R., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Fabuš, M., 2017. Current development of business environment in Slovakia and Czech Republic.
Sodeyfi, S., 2016. Review of literature on the nexus of financial leverage, product quality, &
business conditions. Journal of Economic & Management Perspectives, 10(2), pp.146-
150.
Cepel, M., and et. al., 2018. Business environment quality index in the SME segment. Journal of
Competitiveness, 10(2), p.21.
Clarke, G., Li, Y. and Xu, L. C., 2016. Business environment, economic agglomeration and job
creation around the world. Applied Economics, 48(33), pp.3088-3103.
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