Business Environment of the Footwear Sector: Key Issues and Analysis

This report provides an analysis of the business environment within the footwear sector, focusing on key issues such as timely delivery and warehouse management. It conducts a PESTLE analysis to identify political, economic, social, technological, legal, and environmental factors influencing the industry. The report examines the positive and negative impacts of these issues on businesses like Reebok and Nike, highlighting customer satisfaction and operational challenges. A reflection section discusses challenges faced during the research process, including time management, decision-making, and the need for guidance. The conclusion summarizes the findings, emphasizing the dynamic nature of the footwear sector and its impact on the business environment. The report underscores the importance of adapting to changing customer preferences and technological advancements for success in the industry.

BUSINESS
ENVIRONMENT

Contents
INTRODUCTION...................................................................................................................................2
TASK 1 Key issues affecting the footwear sector..................................................................................2
TASK 2 Conducting the PESTLE..........................................................................................................3
TASK 3 Positive and negative impact on the business..........................................................................4
TASK 4 Reflection...................................................................................................................................5
CONCLUSION........................................................................................................................................6
REFERENCES..........................................................................................................................................7

INTRODUCTION
Business environment refers to the integrating the overall business activity of the
business which determined the internal and external factors which results in bringing success to
the organization (Business environment, 2019). The environment depends upon the customer
needs and wants regarding the availability of the particular products or services or also
analyzing the market trends or any change in social or culture needs of the citizen. Thus, the
present report is based upon the industry of the footwear sector in which wider items are
provides which is specially designed for all class of people. This industry is considered to be
one of the multi earning business carrying wider range of variety of footwears.
TASK 1 Key issues affecting the footwear sector
The issue which is identified in respect of preferring the footwear industry is that
 Firstly, the timely and correct delivery of the footwear: As this is the major issue
which affecting the footwear industry of, they are dealing the business online. As most
of the customer prefer the services by choosing the right and correct shoe pair and also,
they can select wider range of shoes as per their own convenience. In such manner this is
the major issue which is faced in respect of retaining the customer towards the products
and services for longer time period (Jeppesen and Trần, 2018). Online is such business
which can attract large customer base but also on the other point they distract the mind
and needs of the customer in easier ways. Through this aspect it is the responsibility of
the company to provide timely delivery of footwears to retain the customer interest
towards the services for longer time period.
In respect of the issue which is identified in footwear sector this affects the industry and its
reputation in bigger ways. As customer prefer the online services by getting heavy discount on
their famous brands and also, they get wider varieties of the footwears as per their needs and
wants. As customer prefer the different variety of footwears for every different occasion
(Bertrand and Parnaudeau, 2015). Thus, in respect of getting the right and correct delivery is the
major demand of this sectors. The issue arises in respect of not reaching to customer within the
stipulated time of the items, which they order is not appropriate. In that case it results in
distracting they customer needs towards the products.
 Secondly, it is managing the different warehouses and stores regarding the
products availability: In these aspects, it is the major issue which is identified in
respect of affecting they footwears sectors is regarding managing the different
warehouses and stores which is situated around the world or also in UK they are located
at various places (Mia and et.al., 2017). Thus, in such manner the issue arises regarding
tracking the appropriate needs and demand of the customer and then fulfilling them in
better way. Thus, in such manner the issue arises in respect of providing the real

tracking code so that customer gets satisfied regarding the availability of the products in
market.
The thing which are needed in respect of managing the inventories in stores and warehouse
in resulting to checking whether the new design is available or not. As most of the business of
footwears are get from the physical stores and thus accurate management is required in respect
of cross checking the availability of the stock (Krishnan, te Velde and Were, 2018). The issue
which affects the footwear sectors is that appropriate person is needed to conduct the market
research and also check the availability of the stock by verifying the accurate inventories in
stores. Thus, through these aspects, the skilled person is needed to handle all such task in better
way.
In such manner, these are the major issue which affecting the footwear sector and thus
various risk is also identified in respect of not availing such services in better way.
TASK 2 Conducting the PESTLE
Factors Issue first (timely and correct
delivery of the footwears)
Issue second (managing the
different warehouse and stores)
Political By having strict government
norms in respect of trading
goods in different countries
(Bertrand and Parnaudeau,
2015).
In respect of instability of the
government rules regarding
transferring of purchasing the
bulk products from different
countries.
Economic There is higher inflation in the
Chinees market regarding using
the variety of footwears.
In context of developing
country, the major companies
are taking interest in this sector
due to having economic stability
(Markkanen and et.al., 2017).
Social By having changes in demand
of the people regarding availing
the particular footwear. The
issue arises in respect of
fulfilling their needs and wants
in higher scale.
This can be done by ensuring
the safety of the products. This
can be examined by using the
innovative methods to gather
information.
Technological In this issue, technology play
the important aspects as through
conducting the research and
development regarding availing
the particular products
(Armstrong-Gibbs and
McLaren, 2017). They can
interact with customer regarding
availing the products at
particular time period and also
reconfirm the usage of products
once they finalize the products.
In respect of this issue,
technology is to be pertain in
respect of interacting with
customer personally and also,
they can manage the inventories
through using the advance
technology.

Legal In this aspect, the legal factors
which affects the decision
making is relating to carrying
the health and safety norms. As
every country had different
conditions regarding managing
the heath issue, thus in such
aspect in respect of delivering
the goods to the customer,
various safety equipment is to
be carried so that the accidents
can be resolved easily.
In respect of this issues, Legal
factors are interpreted in respect
of following the employment
law as appropriate person is
appointed and thus their rights
are protected under this segment
(Al-Shemmeri and Naylor,
2017). In such manner legal
factors arises in respect of
taking effective decision.
Environmental The issue which arises in
respect of environment factors
are resulting to the climatic
changes. Thus, in such way they
face delay in reaching to the
customer regarding delivering
their orders (Hardt and et.al.,
2018).
In respect of increasing the
sustainability strategies
regarding retaining the sector
for longer time period, the issue
arises in respect of taking the
right decision. Thus, their main
focus is to adapt different
strategies and thus in such
manner they are affecting the
environment in wider ways.
TASK 3 Positive and negative impact on the business
Positive aspects of issues in respect of Reebok company
Positive:
In respect of identifying the key issue it carries the positive impact upon the Reebok
company is that firstly in respect of issue which is related to timely and correct delivery of
footwear is relating to reflecting the interest of the customer as in case of reebok, the customer
are satisfied in respect of getting timely delivery of order (Ciasullo, Cardinali and Cosimato,
2017). As reebok is doing their business online, thus by getting orders from online booking and
also getting the estimated delivery date and also orders are delivering on that stipulated time
reflecting the positive response from the customer.
Another issue which is reflected is relation to managing the different warehouse and
stores in better areas. In such manner the positive aspect in respect of Reebok company is that
they mainly carry the business from physical stores and thus at present they opened 500 stores
around the world. By carrying the renowned brand name in emerging market, they easily
manage the overall activities in better way (Chen, Geiger and Fu, 2015). Due to providing the
athletic footwears to player, they are also engaged their business with various games and also
sponsors the events at large scale. By having numerous stores, they able to reach to large
customer and also provides their products in better way.
Negative:

In the matter related to the first issue which is related to timely and correct delivery of
orders, the negative impact of this issue arises to Nike company. As by not delivering the orders
to the customer timely it results in distracting their interest towards the services and this results
in moving the customer towards the other company (Hamilton and Webster, 2018). As due to
changes in time most of the company are using the online procedure to promote the business, in
such manner by adapting the services which not attract the customer interest for longer time
period resulting in providing negative response to the company.
Another issue which reflect the negative reviews to Nike is that Nike had 1.152 stores
around the world and also, they are engaged with around the 73,100 employees carrying the
business. In respective of managing the warehouses and stores they are not tracking the
customer needs in better way. In such manner the results arise that customer shared negative
feedback regarding not getting the appropriate reviews regarding the issue raised (Wetengere,
2018). In such aspects the issue raises in respect of not managing the inventories in better way.
TASK 4 Reflection
From the above study, the facts which I examined at the time of preparing the report is
that it results in consuming so much time in accomplishing the particular task. As particular
activity requires lot of time on respect of gathering results or also analyzing the results. In such
manner the challenges which is interpreted is resulting to time consuming task. The topic which
I selected does not carry major risk but due to changes in time the fashion industry keeps on
changing and also the designer carrying various innovative design to attract the customers. In
such manner, it takes time to gather the reviews and judgement from various customer
regarding the preferences of choosing the footwears.
Another challenges which I identified is relating to fear in taking the correct decision
and than standing on such decision. As I had less knowledge regarding the field of footwear
sectors, Thus the data which I gathered is based on less experiences and also, I faced that I
didn’t get the right motivation in preferring the sectors. As the topic I selected is on the bases of
viewing the changes in taste of customer but I feel that I didn’t get the proper guidance
regarding collecting the data from which sources. This results in bringing challenges to
accomplish the task in better way. As to commit any research motivation and guidance is
necessary but from my point of view, I find myself lacking in both these aspects. As footwear is
the vast areas where there is never ending research conducted on the bases of renowned
company. In such manner I find the challenges in presenting the report in better way.
The aspects which I undertaken in respect of overcoming from such challenges is
resulting to making the time scheduling so that each task is to be carried within the right time
and in right manner. In such manner I fixed time for each activity and also will able to
accomplish in better way. In respect of lack of guidance and motivation regarding
accomplishing the task, it is to be overcome by taking the feedback and guidance from the tutors
once I set my time scheduling. By this procedure, it results in setting the accurate procedure
regarding attaining the project. As taking feedback from tutors at every point helps in
determining more ways in respect of gathering information. In such way by taking the correct

decision resulting in gaining more accurate results and also it results in bringing more confident
in respect of taking next projects. So that it is to be accomplish in better way and also new
learning is to be gathered from the previous research.
CONCLUSION
From the above study, the report concludes that the footwear sector brings wider
changes in business environment working and the most impact arises in respect of culture. As
the preferences of footwear in preferable by different person and also, they are designed as per
the different occasion. In such manner the report examines various aspects relating to issue
which is determined in respect of preferring the footwear sectors. As by committing the
business online, it results in identifying various aspects through which they manage the business
digitally and also able to reach large number of customers. Thus, at last the report is concludes
with reflecting the own views which results in bringing barriers and also overcoming from such
issue raised.

REFERENCES
Books and Journals
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Wetengere, K. K., 2018. Is the banning of importation of second-hand clothes and shoes a
panacea to industrialization in east Africa?. African Journal of Economic Review. 6(1).
pp.119-141.
Ciasullo, M. V., Cardinali, S. and Cosimato, S., 2017. A strenuous path for sustainable supply
chains in the footwear industry: A business strategy issue. Journal of Global Fashion
Marketing. 8(2). pp.143-162.
Chen, G., Geiger, M. and Fu, M., 2015. Manufacturing FDI in Sub-Saharan Africa.
Hardt, L and et.al., 2018. Untangling the drivers of energy reduction in the UK productive
sectors: Efficiency or offshoring?. Applied energy. 223. pp.124-133.
Al-Shemmeri, T. and Naylor, L., 2017. Energy saving in UK FE colleges: The relative
importance of the socio-economic groups and environmental attitudes of
employees. Renewable and Sustainable Energy Reviews. 68. pp.1130-1143.
Armstrong-Gibbs, F. and McLaren, T., 2017. Marketing fashion footwear: the business of
shoes (Vol. 66). Bloomsbury Publishing.
Markkanen, P and et.al., 2017. Shoes, glues and homework: Dangerous work in the global
footwear industry. Routledge.
Krishnan, A., te Velde, D. W. and Were, A., 2018. KENYA-UK TRADE AND INVESTMENT
RELATIONS.
Mia, M. A. S and et.al., 2017. Waste Management & Quality Assessment of Footwear
Manufacturing Industry in Bangladesh: An Innovative Approach. International Journal
of Engineering and Management Research (IJEMR). 7(4). pp.402-407.
Bertrand, J. L. and Parnaudeau, M., 2015. The impact of climate variability on the private
sector. Available at SSRN 2658061.
Jeppesen, S. and Trần, A. N., 2018. Does relational management matter?: The cases of
Vietnamese and South African SMEs in the textiles, garment and footwear sector.
In Engaging With Stakeholders. (pp. 302-315). Routledge.
Bertrand, J. L. and Parnaudeau, M., 2015. Ranking the impact of climate variability on UK
retail sectors: A path to resilience. Available at SSRN 2675965.
Online

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