Business Report: Iceland Foods Ltd Expansion in the Polish Market

This report provides a comprehensive analysis of the external business environment for Iceland Foods Ltd's potential expansion into Poland. The report begins with an introduction outlining the company background and the rationale for market entry. A PESTLE analysis (Political, Economic, Social, Technological, Legal, and Environmental) is conducted to evaluate the opportunities and threats within the Polish market. The political and economic stability of Poland, along with its EU membership, presents opportunities, while the complex regulatory environment poses a challenge. Economically, increasing GDP and employment rates are advantageous, but rising inflation and competition are threats. Socially, a large population and the trend toward prepared foods are beneficial, but traditional preferences and leisure spending present challenges. The technological advancements in Poland offer opportunities for efficient operations, while competition and increased costs are threats. The well-structured legal system is an advantage, but different employment legislation could be a challenge. Finally, the environmental considerations, including government incentives and the climate, are discussed. The report concludes by summarizing the key findings and emphasizing the importance of analyzing the external environment for successful business expansion. The report references several academic sources to support its analysis.

The External Business
Environment

Table of Contents
Table of Contents.............................................................................................................................2
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Background of company.........................................................................................................3
PESTLE analysis....................................................................................................................3
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

Introduction
External business environment relates to the factors that are beyond the control of business and
the change in these factors affect business activities which can also affect their sustainability in
the marketplace. These environmental factors should be analysed by a business regularly so that
their impact can be evaluated which can help in taking appropriate actions so that the negative
impacts can be minimised while the positive impacts can be used for advantage of business
(Boratynska, 2017). In this report the external environment of Poland will be analysed so that the
opportunities and threats that are present in market can be known for the successful expansion of
Iceland Ltd. Company in Poland.
Main Body
Background of company
Iceland Foods Ltd is a British supermarket located in Wales, UK and sales frozen foods,
prepared meals and vegetables along with non-grocery items like dairy products, meat and dry
goods. The company is recognised as one of the fastest growing and most innovative retailers
which help in maximising the satisfaction of customers through high quality products. The
company is located in more than 950 locations and has over 23000 employees. The company is
planning on expanding in Poland for increased market and increase its sales.
PESTLE analysis
PESTLE analysis is a strategic management tool which can be used by companies so that
they can analyse the external business environmental factors which can help them in determining
the opportunities and threats present in market for expansion:
Political: These factors are related to the rules and regulations of the ruling government of
country which determine trade tariffs, tax regimes etc. Opportunities: Poland is a stable country
in Europe and is also a part of EU which means that the company Iceland Foods Ltd can
strategically expand in the nation as the rules do not change frequently which help in providing
stable environment for company (Halemba-Pawlik, 2017). Also Poland government favour
companies to expand business in country and give them various incentives. Threats: The legal
framework and regulatory environment is complex which can make it difficult for Iceland to
easily establish its branch in Poland. The government interference is also high in Poland which
can affect business of Iceland Foods in the country.

Economical: These are related with the economic factors of country like GDP,
unemployment rate, inflation rate etc. Opportunities: The GDP of Poland is increasing which is
beneficial for Iceland Foods Ltd as the consumer demand in country is increasing which can help
the company in increasing its sales (Igliński and Buczkowski, 2016). Also as the employment
rates are increasing the company can gain skilled labour force easily which will help in its
regular business activities. Threats: The growing inflation rates can lead to increase in price of
Iceland products which can affect its business Poland. The increase in purchasing power of
customers has attracted various retailers which can increase competition for Iceland Foods in
Poland.
Social: These factors are related with the composition and type of people that live in a
society which affect their spending habits like living standard, culture, religion etc.
Opportunities: Poland has the largest population in Europe which will provide a large market
for Iceland Foods and help in its business growth in country. Due to the busy lives of people the
trend of using prepared food is increasing which is beneficial for Iceland as it can serve its frozen
food to its customers (Moza Jalali, Likszo and Skarzynski, 2016). Threats: The increasing
expenses of people on leisure and education can affect their expenses on consumer products and
can lower the business f Iceland Foods in Poland. As the people of Poland are traditional it might
take time for them to accept the already prepared frozen foods offered by the company.
Technological: It is related with the level of technological advancement in a country and
the level of R&D so that innovative technology can be available for businesses. Opportunities:
Poland is technologically advanced which can help Iceland in acquiring innovative technology
for storage of food and maintaining its supply chain management (Zemelka, 2016). Iceland
Foods can also get its IP patented in the country so that it can protect its methodologies and
techniques of working. Threats: With the easy availability of technology the competition in
market for Iceland Foods can increase. Use of advanced technology can increase its cost which
can lead to increase n price of products which can affect its business (Mueller-Bieniek and
Bogaard, 2019).
Legal: These are related to the laws and legal framework of a country. Opportunities: The
well structured legal system of Poland can help Iceland Foods in getting registered in country.
The company can gain trust of stakeholders in Poland by following all the legalities related to
business so that it can expand its business. Threats: Following all the laws can increase the cost

of business for Iceland Foods. The employment legislation of Poland is different from UK which
can affect some of its employee related policies (Pandey, 2017).
Environmental: These are related to the environment of a country like availability of resources,
water etc. Opportunities: By following all the environmental norms of Poland, Iceland Foods
can get various incentives from the government along with gaining the trust of its stakeholders.
The temperature of Poland is generally low which can help in easy storage of frozen food by
Iceland Food so that high quality food can be made available to customers (Walczak and Belka,
2017). Treats: Increasing pollution can affect the quality of food very easily which can increase
the cost of preserving food. Also by following all the environmental and legal norms of Poland
the cost of operations of Iceland Foods can increase leading to increase in price of its products.
Conclusion
From this report it can be said that it is important that businesses analyse the external
business environment of the market in which they intend to expand so that they can know about
all the opportunities and threats in market. This can help them in taking appropriate steps and
formulate strategies and policies that can help in their effective expansion so that huge benefits
can be gained by the business.

References
Books and Journals
Boratynska, K., 2017. The market and the role of the state in the economic crisis: Lessons from
the threat of bankruptcy of agricultural biogas plants. Intercathedra, 33(4).
Halemba-Pawlik, M., 2017. Offshoring Destination Case of Poland. Przedsiębiorstwo we
współczesnej gospodarce–teoria i praktyka, 23(4), pp.55-67.
Igliński, B., Iglińska, A., Cichosz, M., Kujawski, W. and Buczkowski, R., 2016. Renewable
energy production in the Łódzkie Voivodeship. The PEST analysis of the RES in the
voivodeship and in Poland. Renewable and Sustainable Energy Reviews, 58, pp.737-
750.
Moza Jalali, B., Likszo, P. and Skarzynski, D.J., 2016. Proteomic and network analysis of
pregnancy‐induced changes in the porcine endometrium on Day 12 of
gestation. Molecular reproduction and development, 83(9), pp.827-841.
Mueller-Bieniek, A., Nowak, M., Styring, A., Lityńska-Zając, M., Moskal-del Hoyo, M., Sojka,
A., Paszko, B., Tunia, K. and Bogaard, A., 2019. Spatial and temporal patterns in
Neolithic and Bronze Age agriculture in Poland based on the stable carbon and nitrogen
isotopic composition of cereal grains. Journal of Archaeological Science: Reports, 27,
p.101993.
PANDEY, B.C., 2017. Nike Inc-Complete Analysis: SWOT, PESTLE and Marketing strategy.
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Walczak, A. and Belka, Z., 2017. Fingerprinting Gondwana versus Baltica provenance: Nd and
Sr isotopes in Lower Paleozoic clastic rocks of the Małopolska and Łysogóry terranes,
southern Poland. Gondwana Research, 45, pp.138-151.
Zemelka, G., 2016. Heavy metal contamination in sediments from different recreational reservoir
catchments in Poland. International Multidisciplinary Scientific GeoConference:
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