Business Environment Analysis of River Island: A Comprehensive Report

This report provides a comprehensive analysis of River Island's business environment. It begins with an introduction to the concept of the business environment and its significance. The main body of the report employs PESTLE analysis to examine the external factors impacting River Island, including political, economic, social, technological, environmental, and legal factors. It then uses SWOT analysis to evaluate the company's internal strengths, weaknesses, opportunities, and threats. The report further explores the interrelationship between these external and internal factors and how they influence the decision-making process within the company. The conclusion summarizes the key findings and emphasizes the importance of strategic planning and adaptation in a dynamic business environment. The report is supported by relevant references to academic sources and industry publications.

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
 INTRODUCTION
 MAIN BODY
 External analysis
 SWOT analysis in context of company
 Impact of external and internal factors on decision making procedure
 CONCLUSION
 REFERENCES

INTRODUCTION
 Business environment indicates collection sum of all companies, people, businesses
and other forces that are outside power of specific industry.
 It describe as combination of some internal or external factors that may be influence
business sales and operations management.
 It permits for progress of organizations and also their downfall. The current study is
based on River Island which is located in London founded by Bernard Lewis in
1948.
 This report will explain external factors identify by using PESTLE analysis that
impact on business and it also justify internal forces determine via SWOT analysis.
 Furthermore, this assignment will clarify interrelationship between both forces and
its influence on decision making process.

External analysis
 PESTLE analysis is one of the best tools utilized in context of businesses, it is used to
analyze & measure external factors impact on operations and companies functions. It
aids an company determine external forces that could affects market and analyze how
they could directly influence sales. Here are some external factors:
 Political factor-
 Economic factor-
 Social factor-
 Technology factor-
 Environmental factor-
 Legal factor-

CONTI…..
Political factor-
 These are all as regards how and to what extent a government intervenes in
economy.
 It includes trade restrictions, tax policy, trade restrictions, foreign trade policy and
political instability or stability. It is clear from all these elements that political
factors have an affects on firms and how they manage businesses.
Economic factor-
 It has significant influenced on how a firm does business & also how beneficial they
are.
 It includes interest rates, inflation, economic growth, exchange rates and disposable
income of customers.

CONTI..
Social factor-
 It had an essential role in growth of fashion retail sector; these forces include age
distribution, career attitudes, population growth and lifestyle changes .
 Consumer lifestyle change is one of the social factors that directly impact on
productivity and sales River Island negatively.
Technology factor-
 Advancement of technology impact management and marketing practices thereof in
three different ways such as new way of manufacturing products, distributing things
and communicating with target markets.

CONTI..
Environmental factor-
 In recent time, government and consumers is more concern about environmental
safety and sustainability they work really very hard to protect atmosphere from air,
land and water pollution.
 Local and national authority put high pressure on fashion sector to reduce their
carbon footprint which makes River Island able to sustain for longer period in
industry.
Legal factor-
 It includes equal opportunities, customer’s rights & laws, health and safety
regulations, advertising standards and product safety.

Internal analysis in context of company
 SWOT analysis is one of the best framework or techniques used to define and
determine the strengths, weaknesses, chances and threats of a company.
 In simple word, it considered as strategic planning tool utilized to aid a business or
firm identify strength, loopholes and threats related to project planning and business
competition.
 Here, it is used in context of River Island which operates their business in London.

CONTI..
Strengths-
 With more than 60 years of fashion retailing experience, River Island is one of the
most popular and famous brands on high street.
 Within organization management renowned their stylish and affordable fashion for
consumers.
 Unique touches workers bring to their collections aid them to standout from rest of
high street.
Weaknesses-
 River Island aim to bring original and new fashion to consumers, with great design
at heart of everything they create.

CONTI…
Opportunities-
 With more over than 350 outlets across UK, River Island operate their business in
effective manner, but some activities affects its business growth negatively without
gaining market opportunities company is unable to retain consumers.
Threats-
 It can be said that competitive rivalry among existing players within specific sector
create intensive competition environment that directly affects sales and profit
margin.

Impact of external and internal factors on decision making procedure
 River Island is a high street fashion Brand in London which operates in number of
international markets.
 It is a private firm owned by Lewis family and manages their business in effective
manner.
 It has fast become designer and creative brand of high street with outlets in over
than 18 nations.
 There are some macro and micro environmental factors accessible in marketplace or
fashion industry which affects sales, productivity and profit margin of company.
 It also impact decision making process of management as they had to focus on
negative affect and take appropriate action regarding all above them.

CONCLUSION
 From above analysis it has been concluded that River Island is one of the most
famous high street fashion and clothing brand in UK.
 They satisfy consumers and fulfill their needs by offering products with better
quality.
 Furthermore, it has been summarized that after analyzing external and internal
business Environment Company take effective judgment, they work with skilled
applicants who are able to create plan and strategies to overcome and eliminate
negative impact in systematic manner.