Impact of Business Environment Factors on Footwear Company Performance

This report provides a comprehensive analysis of the business environment impacting footwear companies, focusing on C&J Clark and Livesey Shoe. It begins with an introduction to the business environment and its internal and external factors. The main body of the report examines two key issues affecting the footwear industry: demographic changes and regulatory impacts, including statistical data analysis of sales trends. A PESTLE analysis is then conducted to assess the political, economic, social, technological, legal, and environmental factors affecting the companies. The report further explores the positive and negative impacts of these issues on wholesale and retail footwear companies. Finally, the report includes a reflection on the challenges faced during the analysis, the lessons learned, and a conclusion summarizing the key findings and their implications for the footwear industry.

Business environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
(1.) (A) Two key issues affecting the footwear company............................................................1
(B)Statistics of footwear's company............................................................................................2
(2) Pestle model...........................................................................................................................3
(3.) Two key issues on business ..................................................................................................5
(4.) Reflection..............................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment is a process which collects internal and external elements and these
elements impacts on organization performance or organizations impacts on these elements.
Internal elements are employees, management, creditor, supplier, organizational structure and
organizational culture at workplace (Cepel and et.al., 2018). Organization gives impact on this
element where this elements responsible to alleviate economic ratio in business while external
elements are political, economical, technological, socio-cultural and legal factors which gives
impact on organization performance. C&J Clark is an international shoe manufactures retailer
company which is established in England. It is footwear company. Livesey shoe is a private
limited company. It is footwear wholesaler company in England. Headquarter of this company in
Lancashire, England.
MAIN BODY
Task
(1.) (A) Two key issues affecting the footwear company
There are some issues which gives negative impact on footwear company and that issues
impact on economy of organization. These issues affect organization performance. Issues are-
Demographic changes: demographic changes refers changes in population age structure
regarding lifestyle like cultural, social and political. It gives positive and negative impact on
footwear company. Demographic changes gives challenges footwear company due to changes in
demand. Global population grows fast and that leads changes in people choices, there demands
also changes. Such kind changes in choices gives negative impact on economy where it affects
GDP growth (Clarke and Xu., 2016). For example when footwear company doesn't meet
peoples preference, In that state purchasing power of customer deceases that leads economic
ratio lower.
Regulation impact: Government laws and regulations gives negative impact on retail footwear
sector where retailer have to faces retail issues. In UK has rule is that retailer or wholesaler
company can retail their products in limited countries. If they retail their products in various
company then they have to pay extra tax (Deasy. and et.al., 2016). In that state retailers unable to
retail their product in various countries cause this retailer incapable to cover large population
through retailing. Due to inability of retailing in various countries, organization unable to
expand their company growth in global market which gives negative impact on footwear
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company. It affects growth of company in global market. They have to pay extra tax during
retailing in other countries that also enhance cost of footwear which decrease purchasing power
of customers. Footwear company also have to faces non-Terrif taxes during importing
footwear's. It also impacts GDP rate of company.
(B)Statistics of footwear's company
On the basis of this graph can understand about footwear's selling ratio between 2016 and 2020
in man, female and children's where shows women footwear's gets the highest revenue
generating in 2016 and men's revenue was lowest rather than women's in 2016. children's
revenue is quite less in 2016 (Eling and Schaper., 2017). While in 2020 finds women gives large
revenue in business market and men's and children's revenue also enhances rather 2016. Through
these data can estimate that in 2016 revenue of footwear's in global market was less which
enhances in 2020. This graph also interpret that women keeps away big role in global market
rather than males and children's.
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On the basis of this graph can interpret that sales medium gives impact in global footwear
market where can estimate that in 2016 normal retailing gives the highest revenue in global
market while online retailing decrease globalizat6imarket revenue. In 2020 normal retailing of
footwear gives minimum revenue in global market while online retailing enhance revenue of
global market. Through above data can interpret that peoples becomes aware about online media
where they change their purchasing choices (Lee, and Klassen., 2016). In 2016 lack of
awareness causes purchasing power of customer decreases while in 2020 peoples becomes aware
about online retailing, so they prefer online shopping rather to direct purchasing.
(2) Pest model
Pestle method is specially planned to analyse organization environment and these factors
gives impact on business activities. It can understand from a simple example like if pestle
analysis meets business objectives then business comes in profitability while if these pestle
factors doesn't meet business objectives then business comes in loss. These factors are-
Political factors: Factors are government taxation and legislation and government stability etc.
C&J Clark is a UK footwear company where company gets negative impact on retailing due to
regulation. According to UK government policies a retail company can retail their product in
limited countries. If retail company retail their products or services then company have to pay
additional tax which gives impact on economical scale of organization. C&J Clark gets positive
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advantage from government stability because organization doesn't have to change their retailing
policies which gets benefit to earn large amount of money.
Economic factors: These factors are government activities, wages, inflation and recession etc.
gives positive and negative impact on organization. C&J Clark faces recession problem in
market where organization comes in loss due to high interest of borrowing cost in UK. In that
state footwear company unable to take profitability in market.
Social factors: Such factors are customers, customers values and their lifestyle gives positive and
negative impact on footwear company. Social factor gives negative impact in company due to
unawareness about new trends. Footwear's company unable to gives values to their customer that
causes company doesn't get profitability in business market.
Technological factor: Footwear's company takes advantage of new technology. Through new
technology company unable to retail their products in wide scale and enables to cover large
population through online shopping. C&J Clark enables to take competitive advantages in global
market through online media. Thus, footwear company gets organization objectives.
Categorization of two issues in pestle:
Changes in demography is a socio-cultural factor where people choices and their
lifestyle changes according to time which leads challenges for footwear's company. Socio-
cultural factors is appropriate factor for demographical changes. This factor includes customers,
lifestyle, demographical changes and their values (Erasmus and et.al., 2016). This factor impacts
global footwear's market. When footwear company unable to give customer values by meeting
their demands. In that state company incapable to take profit from customer and it decreases
economical scale in market.
Regulation is categorized in political factor. It is one of the factor from political factors which
gives negative impact on footwear's retail or wholesaler company where retailer have to retail
their footwear's under government policy (Prajogo., 2016). Thus, political factor gives negative
impact on company. In that state they unable to expand their businesses in global market.
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(3.) Two key issues on business
Positive impact on wholesale footwear company:
Livesey shoe is wholesale footwear's company which gets positive impact from these
two key issues. Changes in demography is a socio-cultural factor where company gets
advantages because organization focuses on customer demands where company gives values to
their customers by meeting customers demands (Georgescu and Popescul., 2015). Organization
adapts strategy which is continuous changes in footwear design and takes feedback from their
customers. On the basis of feedbacks company to do changes in their product and services. It
supports to take competitive advantages in global market (Prajogo and Oke., 2016). Livesey shoe
company gives flexibility in fashion trends which keeps forward wholesale company. Due to
demographical changes, organization gets golden opportunity in global market to expand their
footwear's and which alleviates economical scale of organization.
While regulation is a political factor which gives positive impact in wholesale company
because company enables to retail their product in different countries without paying extra tax
(Hillary., 2017). UK's government supports wholesaler company for creating job opportunity for
employees. Through this supports company raises demands of product and takes competitive
advantages in global market.
Negative impact on retail footwear's company:
C&J Clark is a retail company which gets negative impact from social and political
factors. Changes in demography is a socio-cultural factor which gives negative impact on retail
company. Due to unawareness about social and cultural changes leads loss in company because
C&J Clark unable to meet customer demands which decreases purchasing power of customers.
Company unable to get profit in market (Khan and Quaddus., 2015). Due to unawareness
regrading trends leads unsustainable conditions of company in business market. Organization
unable to retain their customers with company which decreases economical scale of company.
While regulation is a one of the factor from political issues. This factor gives negative
impact on retail company because due to demographical changes company become weak
economically. Organization unable to pay extra tax on footwear's which decreases retailing in
other countries. Retailer can't retail their products in various countries, In that state company gets
negative impact that employees becomes demotivate (Kljucnikov and et.al., 2016). This
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demotivation leads less productivity of employees at workplace. Employment law also gives
negative impact on C&J Clark (Virglerová, Dobeš and Vojtovič., 2016). This law gives positive
impact on employees but gives negative impact on company economy. Thus organization affects
from these factors.
(4.) Reflection
I faced many issues during analysing this report but some issues was minor and some
issues was major. For example, I faced time issue during analysing this report. I felt during
collection of data. I took more time to understand statistical data and then I elaborated that. To
collecting information I found that I was little confused to interlink with company. Step by step I
was analysed data then interpret that. Thus, I was unable to managed time. Second issues was
information difficulties which I faced during collecting. When I was searching information that
tie found difficulties because I didn't get appropriate data which is relevant from topic. Statistical
graph was also big challenge for me because I wasn't getting that graph which relevant to topic.
To interpret these graphs also was big challenge for me. This interpretation also took long time. I
found difficulties to find issues in footwear's company. Such kind issues was coming to me
during analysing. These issues took more time of my during interpret.
Summary:
I learnt many lessons from these challenges which makes to motivate. I learnt that how to
mange time because I was taking more time to understanding that data and during researching. I
understand that during searching I should be open more links which saves my time rather to
wasting time to read single links data. I also learnt how to adjust statistical data in report and
how to interpret because it was my first time to interpretation. It gives me new creativity. During
collecting data I was taking more time but I understand in well-formed manner. Thus, way I
learned time management. Whatever difficulties i was facing during searching. It raises my
research skills. Now I can search in appropriate way along with time management. Now I have
more information about this report which I can interpret in good manner. These skills make me
confident about searching. Whatever mistakes I did during searching now I can overcome and
can give my best performance. I am happy because my research skills become sharper rather to
last time. Thus, I got two lessons first how to time manage while other how to search in well-
formed manner and I learnt how to overcome by sharpening research skills.
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CONCLUSION
As per the above report has been concluded that business environment is important for
understand external and internal factor which gives contribution to influences performance of
organization. In this report also has been covers about critical issues which is faced by footwear
company during retailing. This report also has been described about pestle analysis where
mentions that how these factors gives positive and negative impact on footwear's company. In
this report has been concluded statistical graphs which has been interpreted. Through these
graphs has been expressed about revenue growth in business market. This report has been
concluded reflection and summary.
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REFERENCES
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