Report on the Global Business Environment Analysis for Next PLC

This report provides an in-depth analysis of the global business environment, focusing on Next PLC, a British clothing brand. The report begins with an introduction to the global business environment and its impact on organizational decision-making. The main body of the report includes a detailed SWOT analysis of Next PLC, evaluating its strengths, weaknesses, opportunities, and threats. The report then delves into an operational impact analysis, examining how key drivers such as Brexit, technology, political, economic, and environmental factors influence the marketing and HR departments of Next PLC. The analysis highlights both positive and negative impacts, providing insights into how the company can navigate these challenges. The conclusion summarizes the findings, emphasizing the importance of understanding the internal and external environments for effective decision-making and achieving business goals. The report references several academic sources to support its analysis.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
SWOT Analysis......................................................................................................................1
Operational impact analysis...................................................................................................2
CONCLUSION................................................................................................................................3
References:.......................................................................................................................................4

INTRODUCTION
Global business environment define environment in different countries which affect the
internal environment of organisation. It helps in decision-making on resources use and abilities.
This report is based on Next plc, it is British clothing brand based in Enderby, England UK.
This company founded in 1864 and they have various category in different stores such as;
clothes, footwear and home product retailer. They provide their services and product in different
countries. The below report include; SWOT analysis of next plc and operational impact analysis
on marketing and HR by using various key drivers like; Brexit, technology, political,economical
and environmental (Fabus, 2018).
MAIN BODY
SWOT Analysis
It is planning tool use to observe strength, weakness, opportunity and threat related to
task planning in organisation. It helps in provide awareness in company and decision making.
Strength: It provide advantages to company. In Next plc context, they have large
distribution network in market. They production process maintenance is helps in reducing carbon
footprint and this is important objective. It helps in take advantages form competition due to its
policies of environment protection. They provide high level of satisfaction to customers in terms
of services and product and also have brand loyal customers in market.
Weakness: It gives disadvantages to organisation. In Next context, they don't do better
planning in finance and in effective manner. They need more investment in technologies because
in current scenario technology is important for better performance in organisation. They are not
analyze properly the demand for product in market in future and in company there is lack of
financial planning (Pal and Gander, 2018).
Opportunity: It provide benefits to business in various aspect. In Next context, In UK
inflation rate is very low so it helps in stability of company. New market trend open new
opportunity for Next plc. In UK they make new environmental policies for organisation, they can
increase shares in market in the new category of product. In current trend digital and social
media marketing is very popular to reach customers from different locations and countries, it
also helps in increasing productivity of Next plc.
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Threat: It refers to loss of organisation in terms of profit and production. In Next plc,
Skilled workforce are available in less numbers and in market competitors adopt new
technologies so disruptor in market is biggest threat for Next plc. There is no innovation in
products according to market trends. Trends are change on regualr basis and it is not possible to
adopt all the techniques, so this is threaten for Next plc.
Key drivers from external and internal environment
There are various key drivers in external and internal environment which impact on
operations and functions of business. These drivers include political factors, economic, social,
legal, environmental and technological factors, Human Resource management, employees,
organisational structure etc. All these factors impact on operations of business in a positive or an
adverse way.
Operational impact analysis
Marketing: It is a activity of promotions of products. They promote selling and buying products
and services in market.
Brexit: This was a war between European and united kingdom countries, after Brexit the
trade policies are changed in both countries and they make strict rules and regulations. In Next
plc context , the Brexit affect the company’s image and productivity. Because company could
not promote their products in Europe and could not reach our customers also.
Technology: In market there are new technologies available for better growth. But Next
plc could not invest in new technologies , they need to invest for effective work in organisation.
In current market place marketing needs more effective technologies to promote their products
and services and attract to customers (Hamilton and Webster, 2018).
Economical: Due to Covid situation economic condition of UK is very bad and
promotions activities are not done in market because people stop buying products during
lockdown.
Environmental: In UK environment condition are not stable, it affect the productivity of
Next plc and they store products according to environment changes and create content for
advertisement.
Sociological: In market understand the customers needs and expectations is important to
meet their needs. It helps in increase brand value of company and provide services and products
according to customers expectations and market trends.
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HR: In business human resource management play important role in every company, they select
skilled workforce for company and provide them training for more improvement. They motivate
them for achieving goals and complete task on time.
Brexit: This war affect the human resource management in Next plc, because they could
not hire people from European country their rules are very restricted. And due to this they has
limited options in workforce.
Technology: Company invest less in new technology it affect the HR department and
their training programs. It is must to provide training to employees about new trends and
technology use in market but organisation has less capital to invest in this. This affect the
performance of business (Olson, Slater, Hult and Olson, 2018).
Economical: Recently due to Covid situation the economic condition is worst, this affect
the profitability of company and performance of Next plc. In country the unemployment rate is
very high due to virus. Companies doesn’t has job opportunity for people because in organisation
they didn’t has work to do.
Environmental: In Next plc , this factor affect in hiring and selection process of
company. it affect the workforce in company.
Sociological: Company needs to understand the people needs and expectation in job, they
want extra benefits in company and human resource help them.
CONCLUSION
It is concluded of above report, effective internal environment helps in decision making and
analyze the strength, weakness, opportunity and threat to develop performance and
overcome from problems. Analyze the opertional impact in marketing and HR department
by using various key drivers some affect in negative manner and some key factors are
favorable in both department. Company analyze the environment, it helps in development
and achieve goals of business.
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References:
Fabus, 2018. BUSINESS ENVIRONMENT ANALYSIS BASED ON THE GLOBAL
COMPETITIVENESS INDEX (GCI) AND DOING BUSINESS (DB): CASE STUDY
SLOVAKIA. Journal of Security & Sustainability Issues, 7(4).
Hamilton and Webster, 2018. The international business environment. Oxford University Press.
Kameneva, 2018. STRATEGY DEVELOPMENT FOR A FASHION COMPANY BASED ON
SWOT-ANALYSIS. In Неделя молодежной науки (pp. 81-85).
Olson, Slater, Hult and Olson, 2018. The application of human resource management policies
within the marketing organization: The impact on business and marketing strategy
implementation. Industrial Marketing Management, 69, pp.62-73.
Pal and Gander, 2018. Modelling environmental value: An examination of sustainable business
models within the fashion industry. Journal of Cleaner Production, 184, pp.251-263.
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