BM461 Global Business Environment: Kingsmill Bakery Analysis Report

This report analyzes the global business environment of Kingsmill Bakery, focusing on factors impacting its operations and future planning. The report utilizes a PESTLE analysis to evaluate political, economic, social, technological, legal, and environmental factors. Key political factors, such as Brexit, are examined for their potential impact on the business. Economic factors like inflation and recession and legal factors like sugar tax are also considered. The report identifies drivers of change, including the need to address political and economic uncertainties and comply with legal regulations. The analysis highlights the importance of environmental analysis for business survival and growth, concluding that Kingsmill must adapt to remain competitive in the market. The report includes references to relevant books and journals to support its findings.

Global business environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................1

INTRODUCTION
Global business environment refers to the factors that are surrounding the organization
and also has the tendency to have a huge impact on the business functioning. In this report,
Kingsmill bakery is taken, which presents the environmental factors affecting the business and
identifying the key drivers of change.
MAIN BODY
In order to analyse the factors that may impact the business functioning, Pestle analysis is
used based on which proper future planning can be done. A detailed analysis is done below.
Political factors (High): The major political issue faced by the industry is the Brexit
(Zhao and Dou, 2019). If the UK exits EU then it will bring instability in the country which may
result in banning of import or export of products or increase in prices. This will affect the
Kingsmill bakery as well.
Economic factors (High): The result of Brexit might bring inflation or recession which
will affect the disposable income of the people and buying bakery item may turn up to be luxury.
This factor will have a high impact on Kingsmill bakery.
Social factors (Low): Currently, in UK, people are more health conscious which
increases the demand of healthy products (Oyedele, 2016). This factor will have low impact on
the Kingsmill bakery as it already have low calorie product.
Technological factors (Low): In bakery, technology does not have a huge impact
(Oraman and et.al, 2018). But in other terms website can be improved which can help in getting
more recognition from the public. New cooking process can be more effective and helps in
increasing productivity.
Legal factors (High): The imposition of new sugar tax law has come up as a challenge
for the food manufacturing industry (Kasemsap, 2018). The objective behind this law is to
reduce the sugar content from the food and drink products which will help in dealing with the
problem of obesity. This law will affect the revenue of the Kingsmill bakery.
Environmental factors (Moderate): This factor refers to the well being of the society and
the environment as a whole. The government and consumers are putting lot of pressure on the
organisation to take some initiative for the betterment of the environment which has been caused
because of the business operation (Associated British Foods SWOT & PESTLE Analysis. 2019).

This factor will have moderate impact on the business as it is using less technology which will
affect the environment but the only thing that is required to be taken care is the waste disposal.
Drivers of change that is required to be taken into consideration
Factors that Kingsmill should take into account for better future planning are stated
below.
 It should identify the ways to tackle with the political factors (Xuesong, 2018).
 The economic changes in the country in terms of inflation will affect the cost of doing
business.
 At last, the legal factors, Kingsmill should comply with all the legal laws in order to
avoid government intervention.
CONCLUSION
It can be said that environmental analysis is very important for the businesses in order to
remain in the market and grow. Pestle analysis has helped in identifying the factors will may
have influence over the business.

REFERENCES
Books and journals
Kasemsap, K., 2018. Mastering business process management and business intelligence in global
business. In Global Business Expansion: Concepts, Methodologies, Tools, and
Applications (pp. 76-96). IGI Global.
Oraman, Y. and et.al, 2018. WHAT EXTERNAL AND INTERNAL FACTORS AFFECT
ORGANIC FOOD SECTOR?. New knowledge Journal of science. 7(2). pp.33-44.
Oyedele, A., 2016. Emerging market global business model innovation. Journal of Research in
Marketing and Entrepreneurship.
Xuesong, L., 2018. It is vital to improve business environment. China daily, p.9.
Zhao, J. and Dou, X., 2019. A Study of British Organic Food Market.
Online
Associated British Foods SWOT & PESTLE Analysis. 2019. [Online]. Available
Through:<https://www.swotandpestle.com/associated-british-foods/>.
1