Analysis of Next PLC's Business Environment: Global Factors

This report analyzes the business environment of Next PLC, a UK-based fashion and clothing company, assessing the significance of global factors on its operations. It begins with an introduction to Next PLC and then delves into the importance of international trade, highlighting how it provides opportunities for capital exchange, resource utilization, and market expansion. The report then examines the impact of various global factors, such as fashion trends, technological advancements, labor costs, and taxation policies, on Next PLC's strategies and operational costs. Finally, it explores the influence of European Union policies, including competition, employment, and antitrust regulations, on the company's practices. The conclusion emphasizes the importance of international trade and ethical business practices in navigating the complexities of the global market.

BUSINESS ENVIRONMENT
TASK-4

INTRODUCTION
 Next PLC, UK based fashion clothing company is chosen
to assess the significance of global factors which shapes
the activities of business.
Next Plc deals in the business of fashion, clothing and
accessories and has more than 500 outlets in UK.
This presentation covers the importance of international
trade, impact of global factors and polices of European
union on business.

4.1 Significance of international trade
 International trade basically is related to exchanging
goods, services, capitals, etc. at the global level or in
international territories.
 It is a well known fact that UK is the hub for many
business organizations all across the world.
 Economy of the nation is greatly affected by doing
business at the global level.

CONTD...
International trade provides opportunities to business enterprises to
exchange of capital, and deliver products and services across cross
border effectively.
Greater utilization of resources, also provides better facilities to
expand business in better way.
It also provides better reach to global consumers and generates
substantial parts of its revenues
It have positive impact on trade opportunities at international level for
organizations in UK.

CONTD...
 Additionally operating at international level would be useful
for Next Plc to cope with various fluctuations as well as different
global issues.
 Significance of international trade to Next Plc can be explained
through phenomenon that companies in this sector all around the
world are entering the international trade, which is helping them to
increase their market share as well as prolong their existence in the
market.

4.2 Impact of global factors on Next Plc
 Next would have to bear the impact of numerous global factors.
It includes factors like latest fashion trend, culture technological
developments; cost of labour, taxation policies, etc.
 Each country that the company might to enter into would have
different levels of aspects. Due to this very reason, Next has to
consider different global factors such as marketing strategies and also
the macro and micro environmental factors.

CONTD...
 In this way, management can attempt to keep operational costs
and expenditures as low as possible. Further taxation policies are also
very different according to region that the company is looking to
enter.
 Another major factor that might affect functioning of the
company can be seen in terms of fashion trend. Latest trend of
fashion and clothing in different countries may be varied from one
another, due to which operations of company can be influenced in a
significant manner due to this phenomenon.
 Today people are more conscious about the availability of new
products in market which influenced them most to purchase .

4.3 Impact of European Union Policies on Next Plc
 European Union is the group of different countries such as
UK, France, Germany etc. It is the body which overseas and
regulates operations of different business organizations in member
states.
 It is necessary to focus on acts and policies such as
competition, employment, fair trade, Health and Safety policy and
Antitrust policy to meet the standards of EU and accomplish goals
in better way.

CONTD...
 Antitrust policy is another piece of legislation which is
deeply associated with that of operations of various rival
firms in the regions. It states that business organization
should try not to break the trust of various stakeholders of
Next Plc, in terms of prices, quality, material and many
other such features with their products

Conclusion
As per above study it can be said that the international trade is
significant for Next Plc because it enhances the business opportunities.
There are number of global factors which can impact the business
operations such as economy, technology, etc. Moreover, in order to have
ethical work practice it is essential for management to focus on diverse
policies of EU.

REFERENCE
 Cohen, L. S., 2010. Effective global leadership requires a global mindset.
Industrial and Commercial Training.42(1).pp.3 – 10.
 Matuszek, T., Dennis, R. S. and Schraeder, M., 2008. Mentoring in an
increasingly global workplace: facing the realities and challenges.
Development and Learning in Organizations. 22(6).pp.18 – 20.
 Jennings, M. M., 2010. Business: Its Legal: Its Legal, Ethical, and
Global Environment. Cengage Learning.
 Next PLC: About us. 2015. [Online]. Available through: <
http://www.nextplc.co.uk/about-next.aspx >. [Accessed on 10th Dec.
2015].

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