PESTLE Analysis of the UK Market for Stella McCartney's Expansion

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Table of Contents
Introduction................................................................................................................................3
Main body..................................................................................................................................4
Conclusion and Recommendations..........................................................................................10
Reference List..........................................................................................................................11

Introduction
In this era of globalization, businesses and their processes have changed in various ways. The
pattern for business making has evolved because of various factors. It is becoming essential
for businesses to understand the needs and demands of their targeted customers of their
targeted market in order to serve them in such a manner so that the business enable itself in
meeting their satisfaction level. It is becoming relevant for the businesses to ensure that their
developers make keen study of the market before their expansion, which can allow them to
develop various strategies to make prominent image of the brand. In this study, the chosen
organization is Stella McCartney, which is dealing with sportswear and apparel and is about
to expand its market in UK. It is relevant for the developers of the chosen organization to
understand the market condition of United Kingdom, which will aid the business in selecting
the target customers based on their needs and paying capability, which will further aid the
chosen firm in making proper business within the selected market.
Various factors play an eccentric role in the development and sustainment of the business
process, which involves the political condition and even climate conditions. Change in
business communication is even evidently affected because of globalization, which not only
created enhancement in the business process but also helped in understanding the required
changes within the process in other market. UK and its customers are fascinated about the
sports fashion and this is accelerating the need for more sports fashion within the UK
economy (Cdn.businessoffashion, 2019). It is understood that fashion is being distorted
because of internet being the main source of business ideas, which is changing the tastes and
preference of the customers worldwide. Stella McCartney needs to understand the
availability of resource and even the legal areas before developing its reach in UK. In this
study the impact of various external factor of the UK market are discussed, giving an idea of
the way in which the chosen organization must enter the market to incur better profits.

Main body
Political
BREXIT has affected the businesses largely and this is creating adverse effect on the
economy and the political scenario of UK. Various businesses that are having their presence
in the UK market have received no time for their preparation against BREXIT. It is
understood from the study of McGregor et al., (2019), that the businesses faced the work time
during the time of Brexit. The study of Kirsty McGregor et al., (2010) on the other hand
states that the taxation policies and their rates are rising at a rapid pace and this is creating
imbalance in the sales and profit of the businesses. It is understood that the changes in tax
policies created a deficit of £163bn, which can bring down the economy under recession.
Furthermore, the government has understood the upcoming consequences and lessened the
tax rates creating better scope for the businesses to perform well. Change in politics even has
affected the businesses that are already having their presence in UK and it is understood that
due to change in policymaking, Stella McCartney can face issues while developing their
presence in the chosen market.
Figure 1: Taxation rates of UK
(Source: Tradingeconomics.com, 2019)
Economic
The economy was under deflation during the period of 2010 and the economy faced a slow
recovery after that. The non-food retails as clothing was at ease, which allowed them to
perform well. The per capita income of the individuals has witnessed a downfall in the

previous two years, which has affected the economy largely. As per the findings of
Tradingeconomics (2019), the GDP of UK economy was 2622.43 billion USD. This shows
that the chosen business can receive a support from the government, which will allows the
business of particular organisation to perform well in the economy and contributing further in
the development of GDP of UK.
The recent report of Ons.gov.uk (2019), states that the net national disposable income per
head was -0.3% and real house hold disposable income per head was 1.4%. The real GDP of
UK economy even received a boost of 0.5% by the first quarter of 2018. It is understood that
the rate of unemployment is slightly negative by -0.1p.p, which shows that it is beneficial for
the business to receive a quality number of employees can be received. This will allow the
chosen business to create a strong, skilled employment base for them. It is relevant for the
business to have their presence in UK, which will further aid the business in executing its
activities with the skilled labour force.
Figure 2: GDP, Net national and real household disposable income per head of UK
(Source: Ons.gov.uk, 2019)
Social
Social factors involves various things like the population rate and even their lifestyle, which
further helps in understanding the tastes and preference of them, which can help any business
to make proper offering to the targeted customers. As per the recent report of Worldometers
(2019), UK is having a population of 66,878,920, which is 0.87% of the total world’s
population. This shows that the business can enable itself to reach a larger number of
customers within the UK market. It is beneficial for Stella McCartney to have their presence

in this chosen market because it even helps the business to choose from a large number of
populations.
Figure 3: Population rate of UK economy
(Source: Worldometers.info, 2019)
The people of UK are concerned about their fitness and this is allowing them to be in sports
and other fitness activities, which can stand beneficial for a business like Stella McCartney to
have their presence in this chosen market. It is relevant for the business to understand the
various cultures that are there in UK and to develop their products accordingly. Additionally,
the business even needs to understand the paying capability of their targeted customers,
which can further help the firm to connect more with the targeted customers.
Technology
In UK economy, the people are accustomed to the existing technologies and they prefer to be
dependent on the technologies, which allow them to be more technology-faced. The
businesses in UK are even dependent on various technologies and even involves AI in their
process, which allows them perform efficiently. This allows the business to not only make
proper working but at the same time allows the customers to feel more connected them. It is
understood from the study of Armstrong (2018), that people are too much dependent on smart

technologies, which will allow the business in reaching the targeted customers quicker.
Additionally, Stella McCartney can even choose smart media platform to reach its
stakeholders more efficiently, which can help the business to attract better number of
customers. With the help of technologically advanced economy, a business can even allow
itself in function effectively. The business production technologies allows the business to in
making better number of production within a short fame of time and even with lesser number
of employees, creating better productivity and lesser production cost. On the other hand, the
cost for management can also be capped, which will allow the business in receiving better
profit. Furthermore, with advanced technologies, the chosen organization can even produce
quality products.
Social media platforms and their corresponding deployments within the marketing and
promotional operations shall result in excessive generations of revenues. The purpose of
equipping social networks in business is that the implementation of the same are appreciated
to be used by most of the national populations of UK as well as by the other organisations
that actively participate in competitive business environment of UK (Ketter and Avraham,
2012).
Figure 4: Dependence on Smart technologies by UK people
(Source: Armstrong, 2018)
Environment

UK is planning for a clean future because the rise in level of pollution is affecting the health
and the lifestyle of the people living in it. The government of UK are focusing more on the
management of wastes, which the chosen organization needs to understand in order to
perform their activities. Development of sustainable environment is becoming another aim of
the UK government now, which involves use of renewable resources for production and even
using biogas for various areas. This will help the businesses in understanding the need for the
development of environment. The investment towards the development of various solar PV
and wind energy industry has reach a budget over 10 billion Euros (Brett Smith, 2015). The
UK government on 11 January, 2018 has even released a ‘25 Year Environmental Plan’.
Figure 5: Ambient Air quality report, UK
(Source: Uk-air.defra.gov.uk, 2019)
As per the report of WWF (2019), banning plastic bags and protecting the nature are different
plans for sustaining the climatic condition and environment of UK and it is essential for the
businesses to align their business accordingly. The areas of UK are full of up hills and down
plains, which is fruitful to cultivation. This is the advantage, which Stella McCartney can use

for their production, creating better use of available raw materials, and this can help the
business in minimizing the cost of transport.
Legal
Legal factors are another essential factor that the businesses need to understand before
entering any market and as UK is considered to be the mother of parliamentary government it
is relevant for the business to understand the various laws that are related to their process
(Rsintranet.nic.in, 2019). There are various laws like, Human Rights Act, Employee Rights
and others, which envelops the businesses’ process. It is relevant for the business to
understand these factors and to develop their structure accordingly, which can further help
them to function well. As per the study of Eoc.org.uk (2019), the Employee Right states that
every employee must be treated equally and in proper manner.
The consumer protection laws allow the targeted customers to be protected from any frauds.
This shows that Stella McCartney can engage customers in this market because they can feel
safe for not being cheated by the firm. On the other hand, the employees might even feel safe
while working with the chosen organization because they are even protected by laws. At the
same time, the legal areas even support businesses that are dealing with garments in the
market of UK.

Conclusion and Recommendations
After the completion of the research, it is understood that the business can receive both
support and limitations while developing its reach in the UK market. The essential thing is
that the business might do while entering the market of UK is to understand the preference of
the customers. This is because it can help the business in developing the products in right
manner. Additionally, creating better attraction of customers for the products, increasing its
sales amount. On the other hand, the business with the available skilled unemployed
population can create its employee base, which can accelerate the business in its functioning.
It is becoming necessary for Stella McCartney to understand the legal policies that are
developed by the existing political parties, which can help the business to work efficiently.
Moreover, the chosen organization can even make proper understanding of the tastes and
preference of the customers with the help of technologies, which can help the business to
develop the right product for the right customers. It is essential for the business to make
effective advertisement, which can be done through the various technologies that are
available in the UK market. The technological advancement and its implementation within
the workplace can even aid the business in minimizing excessive cost, which can further be
used in other areas of business development. It is understood from the main body of the study
that Stella can enhance its business performance by entering the market in UK because the
increasing number of unemployed will be given the scope of employment, which will further
help the organization to function efficiently.
The UK population being concerned about their health are too much into fitness activities and
it will again be beneficial for the business to have their presence in this market, which will
allow them to incur better profit. It is relevant for the business to understand the recent shift
in the politics so that they can understand the time of their market entry. This will allow
Stella McCartney to maximize their profit earning. Additionally, the process of the chosen
firm involves various supply chain element, which need to be managed properly to make
success. However, the environmental policies can affect Stella McCartney in its plant
development but it will allow the firm to minimize various other costs related to their process.

Reference List
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Brett Smith, B. (2015). United Kingdom: Environmental Issues, Policies and Clean
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Cdn.businessoffashion.com. (2019). [online] Available at:
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Apr. 2019].
Eoc.org.uk. 2019. Employees Rights « EOC. [online] Available at:
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Ketter, E. and Avraham, E., 2012. The social revolution of place marketing: The growing
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Ons.gov.uk. 2019. Economic well-being, UK - Office for National Statistics. [online]
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incomeandwealth/bulletins/economicwellbeing/januarytomarch2018 [Accessed 17 Apr.
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