External Business Challenges: PESTLE Analysis for Nisa's Expansion

This report analyzes the external business challenges faced by Nisa, a retail and wholesaler company, as it considers expansion into the Indian market. The report utilizes the PESTLE framework (Political, Economic, Social, Technological, Legal, and Environmental factors) to assess the macro-environmental factors influencing Nisa's potential success. It examines political stability, economic growth, social trends, technological advancements, legal regulations, and environmental considerations specific to India. The analysis includes opportunities such as favorable investment conditions and increasing consumer income, alongside challenges like corruption and cultural differences. The report concludes by emphasizing the importance of understanding these external factors for effective decision-making and strategic planning to ensure smooth business operations and competitive advantage in the new market.

EXTERNAL BUSINESS
CHALLENGES
1

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PESTLE framework.....................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
APPENDIX......................................................................................................................................7
2

INTRODUCTION
To be able to expand themselves in the market the business has to make sure that they
understand the internal and external factors effectively so that decisions can be made
accordingly. Nisa is belonging from the retail and wholesaler industry which is operating in
United Kingdom since 1977. The report consists of external factors affecting the company while
they expand themselves in India.
MAIN BODY
PESTLE framework
Businesses in the market have to make sure that they are understanding the working and
processing of the organization. Pestle framework is used to be able to scan and develop an
effective working in the organization. Pestle is political, social, economic, legal, technological
and environmental factors which can affect the working of the organization.
 Political factors
The political party currently in India is stable and they have got in a lot of changes in free
trading so that there are more organizations which can expand themselves. Nisa is having a good
experience of the market which can be used effective for the further expansion (Tsvetkov and
et.al., 2019). Trading is going to help the organization be able to have a higher functioning and
performance that is present so that there is good growth and the company will be able to make a
place as well.
 Economic factors
The company is going to be able to have a stability in the economic factor which is good
for the overall development. GDP and per capita income of the population in India is increasing
which is why the products and sales is also going to be present. The populations lifestyles and
demands are increasing which can be matched by the company and right experience is going to
be used as well (Gryn, 2019). Barriers can be overcome by Nisa which is going to be a great
competitive advantage.
 Social factors
3

Culture and language is going to changes therefore English language is going to be
focused upon by the organization. Trends are changing rapidly in India which will also have to
be monitored and controlled so that there are right development which the company can have
(Yli-Huumo and Smolander, 2017). Demands and needs are also increasing and so is social
media influence which must be added in Nisa so that there is going to be right functioning.
 Technological factors
Artificial intelligence will have to be included in the company so that there are going to
be lesser errors. Technology is going to be helpful for the organization to be able to get in higher
productivity and operations so that the demands and needs are going to match. There is a lot of
improvement which Nisa will have to do in order to be able to operate effectively (Taha, Ramo
and Alkhaffaf, 2021). Training and development has to be provided to the employees of Nisa so
that there is going to be right working which is present in the organization.
 Legal factors
Nisa will have to take patent and other property rights before entering the market of India
because there are already a lot of competitors which are present which have to be well analysed
and worked upon (Antamoshkina and Zinina, 2019). Transparency has to be provided overall
which is going to make the standards of the company be higher and the company will be able to
gain the market share quickly in India as well.
 Environmental factors
India is working to make the environment healthier for the population which is why there
are a lot of actions which are being taken by the government as well. Nisa will have to respect all
of them so that there is going to be effective working which is present in the organization. Zero
carbon footprint is going to be used in the company in order to be able to gain the competitive
advantage in the market so that there is going to be higher operations. Company will have to
make sure that the organization is being able to follow all the regulations in order to be able to
operate and function effectively in the new market which is India.
Opportunities
 Investment which is being done by Nisa is going to be got back in the company because
of the expansion which the organization is doing. Taxes rates are also low in India which
4

can be taken advantage of and also make the organization be able to have a better
working and performance for themselves overall (Haseeb and et.al., 2019).
 Income of the population is also good which is going to make sure that the customers are
going to invest more in the company. Economic favour-ability is going to be present
making sure that there is right working and productivity which is present in Nisa. Per
capita income of the population in India is increasing which is going to be a great factor
for the overall working of the company.
Challenges
 Corruption level in India is high which can make the company be investing a lot of
amount. A lot of risks are also included in the company are going to be included as well
which is not a good factor for the company to have to be able to gain competitive
advantage and brand image in the market.
 Language and social cultural factors is going to be included in this factor so that there is
effective growth which is going to be included (Sousa-Zomer and et.al., 2018). Culture in
India is very different than it is in UK and that is going to make the organization invest a
lot on the products and services which are existing and improve them according to the
population.
CONCLUSION
From the above report it can be concluded that businesses in the market have to make
sure that there are right actions which are being taken according to the external factors.
Businesses in the market have to make sure that there is effective working and standards which
are made by the company. Decisions and planning must take place when there is a good
understanding of the working and external factors so that there would be smooth working which
is present.
5

REFERENCES
Books and Journals
Antamoshkina, O.I. and Zinina, O.V., 2019, May. A methodology for assessing the prospects of
modifying business strategy of an enterprise in the external environment. In IOP
Conference Series: Materials Science and Engineering(Vol. 537, No. 4, p. 042023). IOP
Publishing.
Gryn, V.P., 2019. Challenges of accounting and analytical support of business entity’s strategic
management. Bulletin of Zaporizhzhia National University. Economic Sciences. (2
(42)). pp.24-28.
Haseeb, M and et.al., 2019. Role of social and technological challenges in achieving a
sustainable competitive advantage and sustainable business
performance. Sustainability. 11(14). p.3811.
Sousa-Zomer, T.T and et.al., 2018. Exploring the challenges for circular business
implementation in manufacturing companies: An empirical investigation of a pay-per-
use service provider. Resources, Conservation and Recycling. 135. pp.3-13.
Taha, A.A., Ramo, W. and Alkhaffaf, H.H.K., 2021. Impact of external auditor–cloud specialist
engagement on cloud auditing challenges. Journal of Accounting & Organizational
Change.
Tsvetkov, V.A and et.al., 2019. Effective management of a company's economic security: 21st
century challenges. International Journal of Civil Engineering and Technology. 10(2).
p.1810.
Yli-Huumo, J. and Smolander, K., 2017, May. Changes and challenges of technical debt and its
management during ongoing digital transformation. In Proceedings of the XP2017
Scientific Workshops (pp. 1-4).
6

APPENDIX
Political factors
 Opportunity- Free trade policies is
present in India which can make the
company is able to expand easily.
 Challenge- Stability in the political
factors is not present and changes from
state to state which needs experience in
the market of the country.
Economic factors
 Opportunity- There is a visible growth
in the economic factor in India which
can be utilized by Nisa.
 Threat- Level of corruption is high in
India which can make the organization
not have a stable economic factor.
Social factors
 Opportunities- Stability in the
economic factor of the population is
present.
 Challenges- Culture and language
factors in India differ and Nisa will
have to changes accordingly.
Technological factors
 Opportunities- Lot of technologies are
expanding themselves in this
developing country therefore it can be a
great benefit for Nisa as well.
 Challenges- Training and development
of the local works requires a lot of
investment and finding knowledgeable
employees is difficult.
7