Global Business Environment Report: PESTLE Analysis and Theories

This report provides an analysis of the global business environment, focusing on the PESTLE framework to examine macro-environmental factors influencing organizations. The report delves into how political, economic, social, technological, legal, and environmental factors impact businesses, referencing examples like Debenhams. It explores academic theories and models underlying these changes, such as how political stability and taxation affect profitability, economic indicators like inflation and exchange rates, social trends and customer preferences, technological disruptions, legal regulations, and environmental concerns. The analysis highlights both positive and negative impacts of each factor, offering insights into how businesses can navigate the complexities of the global market and adapt to evolving conditions. The report references several academic sources to support its claims, providing a comprehensive overview of the global business landscape.

Global
business
environment

Table of Contents
Assessment criteria:.........................................................................................................................3
PESTLE analysis ........................................................................................................................3
Underlying the drives of changes relating to the academic theories and models.......................3
REFERENCE...................................................................................................................................5

Assessment criteria:
PESTLE analysis
PESTLE analysis is a tool and framework which has been used for monitoring and analysing the
macro-environmental factors which may be profound the performance of the organisation. it is
useful in entering in the foreign market such as British airline, Zara, and men's growing
companies. It may easily affect the organisation in so many ways such it influences the
interaction with customers. It also deals with the competition in the market. Some changes which
impact the Debenhams fashion stores.
Underlying the drives of changes relating to the academic theories and models
PESTLE analysis's
Political factor:- Underlying the significant role which impact the profitability with a certain
market or country. The level of stability in the political environment in recent years gives a
stability to the organisation. The high level of taxation in the country decrease the profitability of
the Debenhams. The negative impact of the political factor is it affect eh business in several
aspects such as government policies and rules affect the business environment and on the other
hand the positive factor is it has so many power to change the results(Kelly, Pástor and Veronesi,
2016).
Economic factor:- economic factors are those who determine the expected and current values of
the business and also the investment portfolio. It is divers change which relate to the business
environment the economic factor include the inflation rate, interest rate, foreign exchange rate
and aggregate demand which invest on the economy(Fozer and et.al., 2017.).
Social factor:- Social factor term related to the taste and preference of the customers according
to the new trend in the market. The demand of the customers relate to their behaviour and culture
of the customers which Debenhams has to fulfil and give them satisfaction. negative impact of
the social factor is it bring changes in the way of working according to changing in the lifestyle
and preference of the customers and on the other hand the positive impact is it focuses on the

society which impact the sales of the products and also revenues has been earned(De Jesus, and
Mendonça,2018).
Technological factor:- Technology is very fast to disrupting the various factors in the
Debenhams which relate to the new technological changes and it's a competition for the
Debenhams. It impacts on the offering of the products. It impacts on the cost structure in the
retail sectors of the Debenhams. The positive impact is it bring advance and new technology in
the way of working which lower the burden of work and also the negative factor is it it increase
global warming from growing of the technology. (Adekola and Sergi, 2016.).
Legal factor:- legal factors is overlapping the political factor which involve the specification of
laws such as the antitrust laws, employment laws, discrimination laws, consumer protection
laws, patent laws and also health & safety laws etc. so, that Debenhams know what is legal and
what is not through the laws. It runs according the rules and regulation made by the UK. The
positive impact of the legal factor is to providing proper rules and regulation which has been
followed by the Debenhams and on the other hand the negative aspect is it determines the
regularities and laws which has been affect the results and marketing actions and also decision
making process of the Debenhams(Agamirov and et.al.,2015).
Environmental factor:- It is one of the most important factor due to the increasing of the
scarcity of the raw materials, carbon footprints and pollutions targets which has been set by the
government of the UK. It involve the ecological and environment aspects such as climate,
weather, changes in climate etc. which affect the Debenhams. Fro growing the awareness of so
many potential impacts of the climate changes is affect the operations and products which has
been offered. It has been led in so many practices such as CSR. The positive impact is it threats
the inherent in any of opportunities and also forecasting the future and on the other hand the
negative impact is there is no assurance to the organisation effectiveness and it is not fully
reliable for Debenhams(Derakhshan and et.al., 2016).
Above study summarised that the global business environment refers to the environment
of the countries which impact the external and internal environment of the organisation. It
concludes the changes in the global environment of the organisation. It underlying the drives of
the changes which relate to the academic theories and models. It shows through the PEST
analyses and force field analyses of the organisation.

REFERENCE
Salvatore, D., 2015. Managerial economics in a global economy. OUP Catalogue.
De Jesus, A. and Mendonça, S., 2018. Lost in transition? Drivers and barriers in the eco-
innovation road to the circular economy. Ecological Economics.145. pp.75-89.
Fozer, D. and et.al., 2017. Life cycle, PESTLE and multi-criteria decision analysis of CCS
process alternatives. Journal of cleaner production.147. pp.75-85.
Kelly, B., Pástor, Ľ. and Veronesi, P., 2016. The price of political uncertainty: Theory and
evidence from the option market. The Journal of Finance.71(5). pp.2417-2480.
Agamirov, A.K. and et.al.,2015. Legal mindset as a factor in the study of national law and the
state in the XXI century. Mediterranean Journal of Social Sciences.6(3 S6). p.235.
Derakhshan, M.H. and et.al., 2016. Worldwide inverse association between gastric cancer and
esophageal adenocarcinoma suggesting a common environmental factor exerting opposing
effects.