Impact of Macro Environment on River Island: A PESTLE Analysis Report

Desklib provides past papers and solved assignments. This report analyzes River Island's business performance using PESTLE analysis.

Task 3
THE POSITIVE AND NEGATIVE IMPACT OF
THE MACRO ENVIRONMENT ON BUSINESS
OPERATIONS OF RIVER ISLAND

The Positive and Negative Impacts of
Macro Environment on River Island:
There exists various factors in the business environment that impacts
the business in both positive as well as negative manner. Therefore, the
organisation needs to manage these factors as they affect the
productivity of the organisation. In order to have the knowledge of the
various positive and negative influences of the macro factors on the
business operations of River Island, we will conduct the PESTLE analysis
of the River Island which includes the impact of the political, economic,
social, technological, environmental and legal factors.

PESTLE Analysis:
Political: There exists many political factors
that affect the business operations of the River
Island such as the tax policies and the various
rules and regulations related to land. The
political situations prevailing in UK are quite
favourable for the business of the River Island.
However, there are investment risks for the
River Island in UK as the political stability of the
country is no longer secure after brexit.

Economic Factors
The business operations of the River Island also
gets affected by the economic situations of the
country in which the business is operating. These
includes the rate of inflation, currency rates etc.
The weaker economy of UK after leaving EU is
forcing River Island to shift its focus to other
countries.

Social Factors:
Various social factors such change in the market trends, fashion
style, customer preferences as well as the consume attitude also
affects the business operations of River island. The high disposable
income of people of UK supports the business of River Island while
the company face the risk of losing sale to various competitors
due to the changing market trends and fashion statements every
week. (Federici, 2015)

Technological Factors:
The continuous advancements made by the technology
also impacts the business operations of River Island as
the organisation needs to keep updating itself with the
technological advancements in order to stay ahead of its
competitors. However, there are also positive impacts of
technology which has enabled River Island to provide
advanced service like online shopping to its
customers

Environmental Factors:
The increasing environmental protection
awareness has caused River Island to compile with
the rules and regulations of environmental
protection so as to have positive influence on their
customers. This has led to the enhanced image of
the organisation among the media and the
customers. (Lawrence, 2015)

Legal Factors:
The various legal factors such as laws and rules made by the
government also impacts the business operations of the
organisation.
River Island needs to abide by the various rules and
regulations related to employment laws and other laws so as
to operate smoothly. The non-compliance of such rules can
land the organisation in legal trouble as well as distress.

References:
 Federici, M., 2015. River Island Range. [Online] Slideshare. Available
at: https://www.slideshare.net/MonicaFederici/river-island-range
[Accessed 4 February 2019]
 Lawrence, M., 2015. Reducing the environmental impact of
construction by using renewable materials. Journal of Renewable
Materials, vol.3, Issue. 3, pp.163-174.

Thank You