BMA4000 Business Environment: PESTLE Analysis of Artisan Food Retailer

This report presents a comprehensive PESTLE analysis of an Artisan Food Retailer, focusing on the external environmental influences that have affected its operations in recent years and those that are likely to impact its future. The analysis covers political, economic, social, technological, legal, and ...Read More

BUSINESS ENVIRONMENT

Table of content
 Introduction
 The key external environmental influences that have affected Artisan Food Retailer operations in recent
years (approx. the last 10 years)
 The external environmental influences that will impact Artisan Food Retailer in the future
 Conclusion
 References

INTRODUCTION
 The determination, assessment and evaluation of extremal
environment is necessary in order to ascertain the
implications caused by various forces prevailing in the
same. PESTLE Analysis can be characterized as a tool that
allows the business institutions to acquire essential
insights about the external business environment (Negash
and Hassan, 2020).

Notes
 The report encompasses a detailed PESTLE Analysis of an Artisan food retailer business
established in London catering drinks and meals imported from the popular city Italy.
 It also highlights upon the impact of the Pestle Analysis on the business activities and
business regulation of the respective food retailer in the particular market environment.

The key external environmental influences that
have affected Artisan Food Retailer operations in
recent years (approx. the last 10 years)
 The external influences can be termed as the elements that exists in
the external environment and can lead to manipulations on the
working of the business operations of the respective business entity.
 In order to identify and determine the external factors, Pestle Model
has been taken into consideration.
 PESTLE Analysis: Some of the crucial factors like political,
economical, social, technological, legal, environmental, which
impacts on organisation in different ways.

Notes
 It can be termed as technique that facilitates the bushiness institutions to map the affects
and consequences of the numerous elements prevailing in the external environment that
has the required potential to effect business functioning of the firms. The pestle models
for the Artisan food retailer business is mentioned in the next silde :-

Political Factor
 United Kingdom is a country wherein the government
has always provided its contribution in enhancement
of the business operations in Food industry.
 The sustainable as well as the stable political
environment of UK has expanded the scope for
development of various business firm in the food and
hospitality industry.

Notes
 The UK government has concentrated towards establishing the regulations pertaining to the
sustainable sourcing of the ingredients as well.
 The Artisan food retailer firm needs to concentrate upon the formation and incorporation of
non chemical ingredients in the dishes in order to ensure that the business operations of the
organisation are in accordance with the government led guidelines for the regulations of the
food enterprises.

Economical Factor
 The Artisan food retail firm is currently sourcing its main
ingredients from Italy. The business organisation needs to
identify the economic stability as well as policies of Italy
so as to implement the necessary transportation
procedures and determine the expenditure associated with
the same (Rayevnyeva and Touzani, 2020).
 Brexit policies have affected the functioning of the
Business firm as they led to minor as well as major
fluctuations in the business operations of the company
lately.

Notes
 London is a city wherein individuals are extremely passionate about food and that is the
reason the majority of the population believes in the utilisation of ready made food.
 The respective firm has ensured that the packaging adopted by the same is sustainable
enough to provide the maximum satisfaction to the customers.

Social Factor
 London's market environment consists of individuals
from all around the world. The enhanced diversity in the
city has influenced the Artisan food retail firm to look
upon the choices and preferences of various individuals
coming from diverse backgrounds and cultures.
 The respective firm is catering the Italian meals and
drinks to the individuals who are either from Italian
background or are interested in consuming Italian dishes
and drinks.

Notes
 The buying behaviour of the consumers can also be termed as an integral part that has
affected the operations of Artisan Food Retail business in the last few years .
 There is a section of the society which is fond of eating Italian meals and their behaviour
has been monitored by the respective firm in order to gain relevant insights about their
purchase behaviour.

Technological Factor
 The technological advancements in the market environment
plays a very prominent role in the business activities executed
by the organisational firms.
 The digital platform in the past few years has lead a
revolution that has helped Artisan Food retail firm
(Samusenko, Plaskova and Prodanova, 2020).
 The optimisation of online application for food material
procurement as well as the delivery has helped the company
to save its time and expenses.

Notes
 The tracking system has provided assistance to the respective firm in order to map the
procedures and assess the measure to which they have been completed appropriately.
 The company has kept an eye on the technical environment so as to gain knowledge
about the latest technology or the up-gradation in an existing technological tool etc.

Legal Factor
 The legal environment of London has persuaded the companies
practising their operations in the food and hospitality business
to undertake various essential rules and regulation in order to
maintain the standard of food services and promote the health
and safety of the individuals consuming the same.
 The implementation of the respective legal practices has helped
Artisan food retail firm to execute its business operations in an
effected manner which has also resulted in enhanced
profitability and other non financial outcomes as well.

Notes
 The implementation of sugar taxes on food and beverages in London has affected the
business of the respective organisation but has also helped the same in the catering of
more health conscious food as well.

Environmental Factor
 It is a well known fact that the global economic
stability is dependent upon the environmental
conditions ( Shon and Bae, 2020).
 The Artisan food retail firm capitalises on the
sustainable energy sources in order to encourage
the utilisation of sustainable products and services
so as to promote the environment sustainability.

Notes
 The sustainable sources have affected the financial expenditure of the concerned business organisation in a
positive manner. It has facilitated the firm in reducing its expenditure pertaining to the retail operations to a
greater extent.
 The evaluation : From the above analysis, it can be ascertained that political as well as economic factors
have majorly impacted the Artisan food retail firm. The social factor is one of the most prominent element
that has facilitated the growth of the business for such a long period of time. The other above factors
mentioned has also led to major advancements in the business activities of Artisan Food Retail Firm.

The external environmental influences that
will impact Artisan Food Retailer in the
future
 Political influences that may impact the future of Artisan Retail Firm can be termed as the alterations in the ruling
party can lead to the emergence of new guidelines that may impact the operations carries out by the respective
business enterprise in the near future(Jekal, 2020). The election period can also affect the business operations of the
respective firm operating in the target market domain.
 Economic influences such as new additional specifications in the Brexit can impact the working of the respective
business institution in a long run (Plyaskina,2020). The fluctuations in the interest rates can also lead to adverse
conditions for the business operations. The implementation of new tax rates can also lead to implications on the
Artisan Retail firm in the coming years.

Continue…
 Social influences such as the introduction of new trends in the marketplace can change the previous
buying behaviour as well as choices of the target customers. This can impose major threats to the
current business services of the respective food outlet.
 Technological influences may include the shift from the online food application to any other web
portal or technological services. The expiration of technology or the establishment of new technical
inputs in the process and insufficiency of the business outlet to procure the same can also impact the
business growth of the same.

Notes
 Legal influences may involve the regulation of a new act that in the food and beverage industry that is
not favourable to the current business operations executed by Artisan Retail Firm (Teuta and Gjorduni,
2020). The change in the legal system of Italy can also impact the trade of meals and drinks in the
future and this can further lead to hindrance of the organisational growth.
 Environmental influences may include the introduction of new parameters in relation with the
preservation of the nature environment as well as the parameters of the sustainable future while
facilitating the organisational objectives. The implementation of such parameters may possess
implications on the functioning of Artisan food retail business.
 The evaluation : It can be evaluated that in order to sustain its business operations in the future and to
adapt to the dynamic market domain, Artisan Retail firm will be required to facilitate modifications in
its current offering in accordance with the regulation set by the United Kingdom. Italy's political as well
as economic stability will be needed to assessed and monitored consistently in order to obtain the
regular material from the same.

Conclusion
 From the above analysed information, it can be summarised that Artisan retail firm needs to emphasis upon all
the external influences in order to ensure that the current operations facilitated by the business firm are in
alignment with the market.
 Pestle is as very powerful tool that can help the company to assess the external market conditions and to
adjust the activities of the business in accordance with the same.

References
 Negash, Y.T. and Hassan, A.M., 2020. Construction Project Success under Uncertainty: Interrelations
among the External Environment, Intellectual Capital, and Project Attributes. Journal of Construction
Engineering and Management, 146(10), p.05020012.
 Rayevnyeva, O. and Touzani, T., 2020. Models Of Forecasting Of Enterprise’s Behavior In Non-
Stationary External Environment. Studies of Applied Economics, 38(3 (1)).
 Samusenko, A.S., Plaskova, N.S. and Prodanova, N.A., 2020. The Analysis of the External Environment
to Determine the Practical Focus of Applied Research and Development in the Framework of
Innovation. In Complex Systems: Innovation and Sustainability in the Digital Age (pp. 245-255).
Springer, Cham.
 Shon, Y.W. and Bae, Y.C., 2020. Chaotic Behavior Phenomena in Love Model with External
Environment considering Colored Noise. The Journal of the Korea institute of electronic
communication sciences, 15(2), pp.343-348.

Notes
 Jekal, E., 2020. External Environment Dependent Spin and Orbital Exchange Interactions. Journal of
Modeling and Simulation of Materials, 3(1), pp.79-83.
 Teuta, H. and Gjorduni, F., 2020. Choosing a Competitive Advantage Under the Constraints and Possibilities
of the External Environment: An Empirical Study in the Retail Trade Sector in Elbasan, Albania. European
Journal of Social Science Education and Research, 7(3), pp.67-79.
 Plyaskina, А.I., 2020. The concept of the essence «enterprise development» taking into account the impact of
the external environment. Вестник Херсонского национального технического университета, (2 (73)).