Unit 1 Report: Business Environment Analysis Using PESTLE & SWOT

This report provides a comprehensive analysis of the business environment using PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) and SWOT (Strengths, Weaknesses, Opportunities, and Threats) frameworks. It examines the external factors impacting a business, including governmental policies, economic conditions, social trends, technological advancements, legal regulations, and environmental concerns. The report also delves into the internal strengths and weaknesses of a company, identifying opportunities for growth and potential threats to its success. The interrelation of strengths and weaknesses with external factors is also explored, providing a holistic understanding of the business landscape. This analysis is crucial for strategic planning and decision-making, enabling businesses to adapt to changing conditions and maintain a competitive edge. Desklib offers a wealth of similar solved assignments and study resources to aid students in their academic pursuits.

Unit 1 Business and business environment
(Part 2)

Table of Content
 Introduction
 PESTLE Analysis
 SWOT Analysis
 Interrelation of strengths and weaknesses with external factors
 Conclusion
 References

Introduction
The concept of business environment comprises of
such factors which arises within and outside the
organisation and direct impacts upon the
performance of such business along with its survival.
The factors could be micro or macro such as
company's internal or external factors.

PESTLE Analysis
PESTLE analysis refers to all such external
elements which has a crucial effect on the
performance of the company. Such
elements does not impact the single
organisation it effects the whole industry.

Political factors
This factor refers of the PESTLE analysis which includes taxation, governmental
policies, trade barriers, stability of the political government and many more.
 Positive Impact: Stability of the government is very high and the respective firm
is obeying all the policies in accordance to make their company successful.
 Negative Impact: Respective firm is not able to operate their business
appropriately as if there are any kind of the barrier in trade which occur because
of the governmental policies as well as instability of government.

Economic Factors
In this type of the element, it consists of the exchange rates, foreign exchange rate,
income, economy, rate of inflation etc.
 Positive impacts – The firm gives various reward as well as discount coupons on
their several products
 Negative Impact – In various places in the country, associates of the company
faces various issues which are linked to the inflations

Social factors
This element includes the population, dynamic needs, age, profile,
trends etc.
 Positive Impact – Admiral operates on the various methods at the
global level of the marker and as per the producer of the products
 Negative Impact – Nature of the customers are extremely delicate
as they change their wants and needs in accordance to their
economical status.

Technological factors
This factor refers to the adoption of the latest technology, automation or digital
methods, methods of innovation, growth in technology of the company.
 Positive Impact - By adapting new technology and digital methods such as
search engine optimisation of the website of the company,
 Negative Impact – Consistent adaptation of the technology is very much
costly and it can affect the profit margins of the company in a negative
manner.

Legal factors
This factor involves all the safety with legislation, rules and laws that are made
government.
 Positive Impact – Managers of the Admirals, follows appropriate laws which are
related to the labelling and packaging to decline the issues of health
 Negative Impact – If the associates of the respective company Admiral violates
any law or breaks any rule or does not obey the laws related to the protection of
the environment

Environmental Factors
It is the set of the rules of the environment safety with providing eco friendly circumstances.
 Positive Impact – Associates of the Admiral have initiated several campaigns in order to reduce
the carbon footprints
 Negative Impact – Earlier company has faced several legal issues by not following several
policies which are made by the government

Internal Analysis
Admiral is one of the leading sports brand of the
UK which operates in sports wear and accessories
and has several store around the world. In order to
examine the internal threats and weaknesses of the
company. In addition to this, analysing the strength
as well as grabbing the potential opportunities firm
so, in accordance to do that SWOT analysis is
mentioned below of the respective firm.

Strengths
 The firm is well known global sportswear brand with having
its appropriate brand recognition as well as several
diversified portfolio which can be consider as the strength of
the company.
 Admiral initiates several sports related events for like sports
matches of Manchester United and England national football
teams. Moreover they also sponsor several teams also which
is beneficial for them to gain more consumer base.