Business Environment Analysis: A PESTLE Study of River Island UK

This report provides a PESTLE analysis of River Island UK, examining the political, economic, social, technological, legal, and environmental factors influencing its business operations. The analysis highlights the impact of free trade agreements and the Brexit crisis on the company's revenue, as well as the effects of economic stabilization and technological advancements. It also addresses the importance of marketing to the millennial generation, adhering to trade laws, and adopting sustainable practices such as using biodegradable materials and recycling. The report concludes that external business environmental factors play a crucial role in the company's decision-making process, requiring management to consider all factors for effective strategy development. Desklib offers a range of study tools and resources for students.

BUSINESS ENVIRONMENT
Task 3

Table of Contents
 Introduction…………………………………………………………………………………………………
…………3
 Political
………………………………………………………………………………………………………………….4
 Economical
…………………………………………………………………………………………………………….5
 Social
……………………………………………………………………………………………………………………
..6
 Technological
………………………………………………………………………………………………………….7
 Legal
……………………………………………………………………………………………………………………
….8
 Environmental
……………………………………………………………………………………………………..…9
 References
………………………………………………………………………………………………………………10

Introduction
The macro environmental factors will be
evaluated by studying the PESTLE framework
to describe the political, economical, social,
technological, legal and environmental factors.
This theoretical framework in context of River
Island, UK has been devised below

Positive and negative influence/impact the
macro environment has on business operations
Political:
The company has benefited from the
agreements of free trade in Europe
Due to the Brexit crisis, the organization has
lost significant amount of revenue from the
European Market

Economical
The business of retailers such as River Island
has improved considerably due to the
stabilization of the recession
Recent events such as Brexit, has
significantly influenced the revenue of River
Island, UK

Social
The company has emphasised marketing to
millennial generation
The company must consider their preferences
and change their policies of marketing
effectively

Technological
The recent development in technologies if
implemented correctly must ensure the
increase in reach of campaign
In the world of social media, proper
advertisement on social platforms will attract
vast numbers of new customers

Legal
The legal factors include the trade laws
implemented by the government of the
country in which the company operates

Environmental
Recent agreements such as use of
biodegradable material for packaging and
recycling of obsolete products are essential
for a sustainable organization

conclusion
Therefore, it can be easily said both external
business environmental factor plays an
effective role in the business decision making
approach. The management needs to consider
all the factors.

References
Crane, A. and Matten, D., 2016. Business ethics:
Managing corporate citizenship and sustainability in
the age of globalization. Oxford University Press.
Drucker, P.F., 2017. The Theory of the Business
(Harvard Business Review Classics). Harvard
Business Press.
Eid, C., Bollinger, L.A., Koirala, B., Scholten, D.,
Facchinetti, E., Lilliestam, J. and Hakvoort, R., 2016.
Market integration of local energy systems: Is local
energy management compatible with European
regulation for retail competition?. Energy, 114,
pp.913-922.

Thank you