Analysis of River Island's Organizational Environment Factors

This report provides a comprehensive analysis of the organizational environment of River Island, a multinational fashion brand. It begins by outlining the nature and purpose of River Island, comparing it to Travelodge, a company in the hospitality industry, highlighting differences in their business models, target markets, and geographical presence. The report then delves into the micro and macro environmental factors influencing River Island's operations, including political, economic, social, technological, legal, and environmental factors. It examines how these external factors impact the company's performance, market share, and profitability. Furthermore, the report explores internal factors such as value systems, missions, and objectives. Finally, it discusses the organizational theories, such as Neo-Classical and Modern theories, employed by River Island to manage its business activities, adapt to market trends, and maintain a competitive edge in the fashion industry.

THE
ORGANISATIONAL
ENVIRONMENT
(RIVER ISLAND)

Table of Content
INTRODUCTION................................................................................................................................3
TASK....................................................................................................................................................3
1. The nature and purpose of River Island and comparison of this to another company from
different industry..............................................................................................................................3
2. Different types of Micro & Macro Environmental Factors effecting operations of an
organisation......................................................................................................................................4
3. Information of Company and Organisational theories.................................................................6
CONCLUSION....................................................................................................................................7
REFERENCES.....................................................................................................................................8

INTRODUCTION
Organisational Environment consists of different internal & external factors and drivers
which affect performance, operations and resources of a business firm. All the factors which are
situated outside a business are also considered in a business environment. Market Share and
profitability of a company gets effected with the changes made in these environmental factors. This
report explain nature and purpose of various types of organisations. Further, this report includes
types of macro and micro environmental factors which effect performance of a company. At last this
report analyse different types of organisational theories used in River Island. River Island is a
multinational fashion brand which offer different types of fashion frenzy products such as Clothes,
Footwear's and other accessories. Headquarter of company is located in London & England (United
Kingdom).
TASK
1. The nature and purpose of River Island and comparison of this to another company from different
industry.
The River island is a company which deals in clothing fashion products. The nature of
company River island is regarding affordable and stylish fashion. The company River data brings
unique touch which help the company to stand identical among all high street fashion. The river
island is aiming to bring original and new fashion to their customers (Adem Esmail, and Geneletti,
2018). The purpose of the company River island to avail their products to customer in affordable as
well as stylish fashion. Also, to deliver the latest trend, design, durability and quality of their
products to customers.
The comparison of River island and Travelodge UK. The River island is a company which
deals in clothing and fashion store mainly deals in retail industry whereas Travelodge is operating in
Hotels which operated their business in Hospitality industry (Barzegar, Moghaddam, and Tziritis,
2016). The River island has almost 350 stores in all over UK, Asia, Europe, Middle East and Ireland
and the hotels of Travelodge are over 500 hotels in UK, 5 hotels in Spain and 11 Hotels in Ireland
(Tang Taye, and Standing, 2016). The company River island offers Children, Men's, Women's
clothing along with Accessories and footwear. But Hotel Travelodge offers food and bedrooms
facilities to the guests arrive at their hotel. The area in which River Island is currently serving is
UK, Belgium, Malta, Kuwait, South Africa, Estonia, Ireland, Qatar, Peru, Sweden, etc. (Furey,
Emmitt, and Wallace, 2017). But the Travelodge Hotel serves only in UK, Spain and Republic of
Ireland.
The comparison of these two companies that is river island and Travelodge are of different

industries which includes retail and hospitality industry will be describe in summarise form below :
RIVER ISLAND TRAVELODGE
Industry It deals in Retail industry Travelodge is a Hospitality industry
Business type The company operates clothing and
fashion store for customers.
The Travelodge is Hotels and lays facility
of accommodations for guests.
Number of
outlets
There are 350 stores all over UK of
River Island.
There are 516 Hotels which includes 500
hotels of UK, 11 of Ireland and 5 of Spain
of Hotel Travelodge.
Products and
services
offered
The company River Island serves
clothing for women's, men's and
children (Barzegar, Moghaddam, and
Tziritis, 2016). Also, the company
provide footwear and other
accessories.
The Travelodge hotel renders services of
Bedroom and Food related facilities for
guests.
Area the
companies
serving
The River Island serves their products
through stores in South Africa,
Ireland, Qatar, Peru, Estonia, Kuwait,
Sweden, Belgium, UK, Malta, etc.
The Travelodge hotel serves in Spain, UK
and Republic of Ireland by their Hotels.
2. Different types of Micro & Macro Environmental Factors effecting operations of an organisation
External Factors
Factors which are located outside a business environment and having an impact on
profitability, financial performance and market share ofbusiness organisations are known as
External Environmental Factors. This factors are further classified into two types which are
discussed below-
Macro Environmental Factors
Elements which are not controllable by a company and effects business of all the companies
operated with in a particular industry and economy. Business of River Island also gets effected due
to changes made in these factors. Company is unable to control effect of these factors. Different
types of Macro Environmental factors are discussed below-
 Political Factors- Political factors like change in government and introduction of new
policies by government of United Kingdom has an impact on River Island as with this

operations of company slow down for a period. For Instance if government introduces a new
taxation policy and increases taxation rate than that will directly effect profits of
company(Erasmus, Strydom and Rudansky-Kloppers, 2016).
 Economic Factors- Economic Factors includes Rate of Inflation, Taxation Rate,
Unemployment Level, Demand & Supply and Interest Rate. Changes made in any of these
factors effects operations of River Island. If there is a situation of Inflation in the economy
of United Kingdom than that will reduces income level and purchasing power of citizens of
country which in turn effect demand of products of company as individuals does not prefer
to purchase products of company.
 Social Factors- Change in value, belief and ethics of society are having a high impact on
River Island as company has to change design of its products with the change in demand of
society. Further, company is offering its products in many countries thus, it has to develop
products in accordance with demand of different areas and with this it is able to achieve its
social objectives like maximisation of customers ad sales volume(Bah and Fang, 2015.).
 Technological Factors- Technology is most important factor which effect operations of a
firm. Updation in technological factors is a most common challenge faced by River Island.
Company is required to offer its products through online platform as customers prefer to
shop online. Adaption of this factor help company in achieving its objectives as it enhances
customer base and market share of firm.
 Legal Factors- Legal Laws such as Equality Act and Data Protection Act formulated by
government of United Kingdom are applicable on business of River Island. Thus, if there are
any changes in provisions of these laws than company is required to adapt that
changes(Kljucnikov and Paseková, 2016).
 Environmental Factor- Sales Volume of River Island gets reduced with emergence of any
natural calamities and these factors also has an effect on production process of company.
Micro Environmental Factors
Micro Factors are also situated outside a business organisation but these factors effect
operations of a particular company. River Island can control effect of these factors, which are
discussed below-
 Competitors- Competitors are companies operating business with in a same industry.
Changes in business policy & strategies effect operations of River Island. For Example-
Competitors of company is offering its product at a lower price than that will reduce demand
of products of River Island. Thus, to overcome form this problem company is required to

adapt production methods which minimises production cost as with this company can set
high profit margin and achieve its corporate objective.
 Customers- Marketing and selling strategies of River Island gets affected with the change in
customers demand. Company can achieve its objective and sustain in long run by offering
products ad services through online websites and maximise market rich by promoting
product through social media sites because most of the customers widely use these sites.
 Suppliers- Success of a business depends upon power held by suppliers of if suppliers River
Island demand a high price for products than that will increase cost of manufacturing and
which in turn reduces sales volume of company. For resolving this problem firm as to
maintain relationship with its suppliers(Deasy and Strudel, VMware Inc, 2016).
 General Public- All the operations operated by company should satisfy individuals of a
society because society can lead a company towards success. River Island can satisfy
general public by offering environmental friendly products and toxic free products in order
to attract public & customers.
Internal Factors
 Value System- Value system is an internal factor used by organisations which provides
ethical beliefs & value which in turn helps River Island in achieving its business objectives.
Company is required to run its operations in accordance with its value and ethics in order to
achieve success and growth in long run.
 Mission & Objectives- Operations of a company are regulated by keeping in mind their
objectives. Thus, River Island has to make changes in its production and marketing activities
according to changes made in its objectives.
3. Information of Company and Organisational theories
River Island Company
River Island is a fashion brand selling its products in United Kingdom, Ireland, Asia and
Europe through 350 stores. Further, company is also offering product through 6 online websites.
Company is having an in house design team and all of its products are developed through these
teams. As company is operating in International Market it is essential for firm to use different
organisation theories to achieve success(Hamilton and Webster, 2018).
Organisational Theories used by River Island are discussed below-
Neo Classical Organisation Theory- This theory focuses on improving mechanical and
physiological factors used in a company. River Island implement this theory in its organisation

according to which performance of company is evaluated on the basis of social, technical and
economic elements. By adapting this theory River Island and its managers distribute work among
employees in accordance with behavioural approach. This theory improve operations of company
by motivating employees as they are free. This theory is beneficial for company as it promotes team
work and enhances productivity.
Modern Organisation Theory- This theory is also used by River Island in managing its
business activities as with this theory managers of company are able to analyse current market
trends and demand for products of company in market. This theory play a significant role in
expansion of business of River Island by developing products which are liked by customers and
society. Company is also able to adapt new technologies and innovative ideas used by other
companies operating in same industry to attract customers. Thus, both these theory improve
efficiency and profitability of company(Prajogo, 2016).
CONCLUSION
The above report outlined nature and purpose of River island and compare its operations
with an industry operating in different sectors. Further, this report summarises different macro &
micro environmental factors situated in an organisation. At last, this report concluded operations
information of company and different theories used by business.

REFERENCES
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quality of the Aji-Chay River, northwest of Iran. Environmental Earth Sciences. 75(23).
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Deasy, S. and Strudel, F., VMware Inc, 2016. Controlling use of a business environment on a
mobile device. U.S. Patent 9,247,042.
Erasmus, B., Strydom, J.W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
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Furey, L., Emmitt, J. and Wallace, R., 2017. Matakawau Stingray Point Pa excavation, Ahuahu
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Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
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Kljucnikov, A. and Paseková, P., 2016. The entreprenurial perception of SME business environment
quality in the Czech Republic. Journal of Competitiveness. 8(1).
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Tang Taye, J. P. and Standing, C., 2016. Website translation and destination image marketing: A
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