Global Business Environment Portfolio Paper Report, PESTLE & Porter

This report provides an analysis of the global business environment, focusing on the retail fashion industry. It begins with an introduction to the global business environment and then applies the PESTLE analysis to examine the political, economic, social, technological, legal, and environmental factors impacting the industry. The report then utilizes Porter's Five Forces model to assess the competitive landscape, considering buyer power, competitive rivalry, supplier power, the threat of substitution, and the threat of new entrants. The conclusion summarizes the findings, highlighting the usefulness of PESTLE and Porter's Five Forces in understanding market dynamics and competitive positioning. The report references several academic sources to support its analysis.

Global Business Environment
Portfolio Paper

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Global business environment refers to atmosphere in different sovereign countries with
several factors which impacts on operations of an organisation while operating globally. Pestle in
an effective tool for market analysis and support strategic decision in retail fashion industry
(Holtzman, 2014). It include several factors like political, economic, social, technological, legal
and environment which impacts on operations of an organisation.
MAIN BODY
PESTEL Analysis
Political factor – This include government rules and policies which helps to encourage
companies to buy fabrics locally when taxation on import material get increased then it is
favourable for retail fashion industry (Adekola and Sergi, 2016). Moreover, change in political
influence in fashion trends impact on new collection of related organisations in negative manner
which reduce sales and profits of fresh products.
Economic factor – The economic factor consist taxation rates, inflation, deflation and
growth rates which impacts cost of production and profitability of companies related to retail
fashion industry. It consist that favourable change to inflation in market is helpful for business
concern to reduce overall cost of manufacturing which helps to increase profits in business.
Social factor – This include culture, rituals, tradition and trends on society which
influence decision making of purchasing particular products. Meanwhile, change in present trend
is about reasonable products with comfort which is effective approach to improve customer base
and grab more profit share in market (Abdollahi, Arvan and Razmi, 2015).
Technological factor – The technological factors consider innovative technical machines
and software which helps to improve operations and enhance organisational ability to improve
brand image. In context of retail fashion industry, change in technology include to sell product
through online mode which helps to grab more customer at global level.
Legal factor – The changes in legal norms to run business globally impact on operations
of companies in retail fashion industry as the management should modify policies accordingly.
However, modifications in legislations also impacts of tax and export restrictions which impacts
negatively on profitability of the given industry.
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Environmental factor – This involves different fabrics of clothes whose manufacturing
release harmful chemicals to environment that may cause controversies for companies related to
retail fashion industry. Meanwhile, changes in trend of cloth fabrics impacts negatively of
environment and brand image (Hamilton and Webster, 2018).
Porters five forces
This model is developed by M. Porter in year 1979 to understand the impact of five
forces on industry. It helps in evaluating and assessing the competitive position and strength of
business organizations. It includes five forces, i.e., buyer power, competitive rivalry, supplier
power, threat of substitution and threat of new entrant. Application of this model on fashion
industry helps in analysing the viability of sector as a whole.
CONCLUSION
As per the above mentioned report, it has been concluded that PESTLE analysis helps in
analysing various forces and their impact on retail industry. Porter's five force analysis assists in
assessing and evaluating current market environment. It helps in analysing the competitive
position of fashion retail industry due to changing trends in market.
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REFERENCES
Books and journals
Holtzman, Y., 2014. A strategy of innovation through the development of a portfolio of
innovation capabilities. Journal of Management Development. 33(1). pp.24-31.
Abdollahi, M., Arvan, M. and Razmi, J., 2015. An integrated approach for supplier portfolio
selection: Lean or agile?. Expert Systems with Applications. 42(1). pp.679-690.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Adekola, A. and Sergi, B. S., 2016. Global business management: A cross-cultural perspective.
Routledge.
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