Business Environment Analysis: PESTLE, SWOT & Traffic Light Chart

This report provides a comprehensive analysis of the business environment, focusing on internal and external factors that impact a firm's operations. It utilizes the PESTLE framework to examine political, economic, social, technological, legal, and environmental influences, and a SWOT analysis to assess the strengths, weaknesses, opportunities, and threats facing Admiral Sportswear. A traffic light chart further illustrates competitive dynamics, funding activities, legal complexities, and investment opportunities. The analysis highlights the importance of adapting to external changes for sustainability and survival, and recommends strategic adjustments such as specializing in specific segments, investing in R&D, and employing effective marketing techniques to enhance brand awareness and attract investors. The report concludes by emphasizing the significance of balancing environmental concerns with profitability and sustainability goals.

the Business
Environment

TABLE OF CONTENTS
 INTRODUCTION
 PESTLE Analysis
 Traffic light chart
 S.W.O.T. Analysis of Admiral Sportswear
 Outcomes of analysis
 CONCLUSION
 REFERENCES

INTRODUCTION
 Business environment comprises internal and
external factors which impacts the operations of
the firm both positively and negatively.
 Some of the internal factors are employees
management etc. and external factors includes
competitors, suppliers, customer etc. these
factors plays a vital role in the journey of the
organization.
 Internal factors has to be changed with the
change in external factors to move towards the
sustainability and survival of the firm.

PESTLE Analysis
 Political factors
 Economic factors
 Social factors
 Technological factors
 Legal factors
 Environmental

Traffic light chart
Competition • Increasing love for the sports among youngsters
has resulted in increasing competition in the
industry.
• Many corporate giants have captured the markets
majorly.
Funding activity • Fund acts as a fuel to run the business machinery.
• Attracting investors in not an easy task for the
brand as the brand is not so popular nowadays.
Pandemic has resulted in the changing mindset of
investors to save more and invest less.
Legal complexity • Legal issues faced by the clothing sector are very
complex as they have to meet the rules and
regulations to gain authenticity.
• Legal laws like taxation policies effects the
profitability of the organization and forces the
management to revaluate the pricing policies.
Investment opportunity • Expansion is a needed for the organization to
increase their customer reach.
• The organization can open more outlets all over
the world.

S.W.O.T. Analysis of Admiral Sportswear
Strengths
Revenue
Variety
Global presence
Quality
Weaknesses
Brand awareness
Supply chain shortage
Expensive products
Opportunities
Love for sports
Online selling
Footwear segments
Threats
Competition
Trend
Environmental laws
Pandemic

Outcomes of analysis
 The external analysis of admiral company
shows that how the organization in surviving
in different conditions and operating in a way
to achieve profit.
 Organization faces many ups and downs due
the external forces. The political stability in
the country has the positive impact on the
firm.
 On the other hand, the Brexit uncertainty has
led to decrease in profitability and made it
harder for the organization to survive in long
run

Recommendations
After analysing different internal and external factors affecting the organization
in different aspects directly or indirectly it is recommended that the brand should
proceed with the expansion with some changes such as specializing in a
particular segment and investing the R&D for the segment.
Proper use of technology can be proved as a plus point in the profit making if it
is used properly. Effective marketing techniques can be pursued by the brand to
regain its awareness among the market to attract customer and investors.

CONCLUSION
 The above report has highlighted the inner and outer forces impacting the
organizations profitability and sustainability.
 Pestle analysis has shown how the firm is being affected by different factors
such as Brexit deal, economic instability etc.
 One of the main aspect was environmental concern that has to be maintained
by the organization so the balance is being maintained in the nature.

REFERENCES
 Books and journals
 Akpoviroro, K. S. and Owotutu, S. O., 2018. Impact of external business environment on organizational
performance. International Journal of Advance Research and Innovative Ideas in Education. 4(3).
pp.498-505.
 Benzaghta, M. A. and et.al., 2021. SWOT analysis applications: An integrative literature review. Journal
of Global Business Insights. 6(1). pp.55-73.
 Chavan, R. B., Analysis of Fashion Industry Business Environment. Trends in Textile & Fash Design 2
(4)-2018. LTTFD. MS. ID. 000144. DOI: 10.32474/LTTFD. 2018.02. 000144. 212. Management. 41(5).
pp.807-815.
 Ciacci, A. and et.al., 2021. A Potential Business Environment of Smart Cities: A Subjective Approach. In
Strategic Outlook in Business and Finance Innovation: Multidimensional Policies for Emerging
Economies. Emerald Publishing Limited.
 Cravo, T. A. and Piza, C., 2019. The impact of business-support services on firm performance: a meta-
analysis. Small Business Economics. 53(3). pp.753-770.
 Cristofaro, M., 2020. E-business evolution: an analysis of mobile applications’ business models.
Technology Analysis & Strategic Management. 32(1). pp.88-103.
 Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University Press.