Analysis of Armani's Business Environment: SWOT and PESTLE Framework

This presentation provides a comprehensive analysis of the Armani enterprise, focusing on its internal and external business environment. It begins with an introduction to Armani, highlighting its origins and significance in the fashion industry. The core of the presentation revolves around two key analytical frameworks: SWOT (Strengths, Weaknesses, Opportunities, and Threats) and PESTLE (Political, Economic, Sociological, Technological, Legal, and Environmental) analysis. The SWOT analysis identifies Armani's competitive advantages, internal challenges, and external market dynamics. The PESTLE analysis examines the broader external factors influencing Armani's operations, including governmental policies, economic conditions, societal trends, technological advancements, legal regulations, and environmental considerations. The presentation concludes by summarizing the impact of these internal and external factors on Armani's overall success, emphasizing the importance of strategic adaptation and responsiveness to the business environment. References support the analysis, providing credibility to the findings. The presentation uses these frameworks to evaluate the factors affecting business stability and the industry's success.

Presentation

Table of contents
 Introduction
 SWOT analysis
 PESTLE analysis
 Conclusion
 References

Introduction
Internal environment is a part of business environment, which consists of
internal factors, that are climate, culture, members, etc. External environment is
also a part of business environment, which consists of external factors that are
suppliers, customers, economic, sociocultural, political, etc. The enterprise that
has been selected for this project is Armani organisation, it was introduced by
Giorgio Armani in 1934 (Dimitrakopoulou, 2015). This project will determine
the elements that affects the success. These factors are further described on the
basis of PESTLE analysis and SWOT analysis.

Introduction to Armani
Armani was introduced by an Italian
Fashion designer named as Giorgio
Armani in 1934. This organisation is
very prestigious fashion industry. It
deals with different companies to
determine the rivals competitive
strategy which can be diminished by
their strength and opportunities.

SWOT analysis
SWOT Analysis:- This analysis is enables companies to identify
their internal strength over weakness and external opportunities and
threats. This is short form of Strength, Weakness, Opportunities and
Threats of an organization (Dimitrakopoulou, 2015). The SWOT
analysis is implied by Armani enterprise to identify its positive and
negative elements that affect the business stability either from
inside or outside.

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Strengths
 It consists of good globalised marketing with
brand visibility which creates expansion of
industry to meet its large number of customers.
Weakness
 High level of branding creates negative impact of
fake imitation on target market which reduce its
sale.

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Opportunities:
Brand may be expanded in new eco-friendly product lines which
facilitates in more consumption of products with no side effects of
consumers.
Threats:
Competitive firms such as Peta, use diversified branding which
creates high competition to Armani enterprise to compete.

PESTLE analysis
PESTLE Analysis:- It is a framework that analyse key elements
which affects business from outside. It is an acronym of political,
economic, sociological, technological, legal and environmental
factors (Hauge, 2016). It is most useful for new entrance of firm in
foreign market.

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These factors are further explained below which
are as follows:-
 Political factors:- This factor determines
about the dynamic and uncontrollable
changes of government. These elements are
as tax policies, tariff, fiscal policy, monetary
policy, foreign trade policy, etc., which
affects business stability.

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 Economic factors:- These factors are component of economy performance. It
consists of factors which are related with economy such as foreign exchange
rates, interest rates, economic growth patterns, disposable income of consumers,
unemployment factors, etc.
 Sociological factors:- The determinants of these factors are demographic
conditions, population growth rate, age and income distribution, emphasis on
health and safety, individual lifestyles, cultural implications, etc.

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 Technological factors:- These are the factors which are highly developing in
this modernisation of world. The elements of this factors are new innovation,
research and development, automation, etc., which are both favourable and
unfavourable for an industry.
 Legal factors:- It is the factors which is overlapped by political factors with
more of lawful and legal obligation to be followed by the organisation.

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 Environmental factors:- It is the most important factor of an
organisation to utilise the scarce resources in an effective and
efficient manner to achieve organisational goal. These
environmental elements are further described as increasing
scarcity of manufacturing products, pollution targets, weather,
climate, etc., which adversely affects the industry agriculture and
insurance.