TK Maxx: Analyzing External Factors & Change Drivers via PESTLE

This report presents a PESTLE analysis of TK Maxx, evaluating the impact of political, economic, social, technological, legal, and environmental factors on its operations. It highlights the influence of Brexit, the COVID-19 pandemic, and technological advancements on the retail sector, particularly affecting consumer behavior and supply chain management. The analysis identifies key drivers of change, such as the shift to online platforms and the need for digital transformation. Recommendations emphasize the importance of digital accessibility, enhanced customer engagement, and operational efficiency. The report concludes that understanding and adapting to these external factors are crucial for TK Maxx to maintain competitiveness and drive long-term growth. Desklib provides students access to similar solved assignments and past papers.

PESTLE template
External factors to
consider Factors affected within my industry
Importance to
organisation
POLITICAL Government
policy
Political stability
Tax
Industry
regulations
Global trade
agreements and or
restrictions
Political factors: UK left the
European union in January 31st,
2020. retail industry have to adjust
themselves and complete change
their business functionality as per
such requirements of changes in the
economic policies, trade
agreements.
In TK maxx the
main impact of
Brexit will be that
there will be new
trading rules &
extra changes that
may lead to risk
making the
products offered by
UK less attractive
in the EU markets.
ECONOMIC Exchange rates
Globalisation
Economic
growth/ decline
Inflation
Interest rates
Cost of living
Labour costs
Consumer
spending habits
There are some of the economic
factors that may affect the
functioning of retail sector
organisations. Such as it is related
to changes in economic polices
which affects the functioning of
organisation it includes fiscal
policies and monetary policies.
Monetary policy is related with the
changes in money supply in
circulation. Fiscal policy in UK has
been ranging at 8.3 percent, referral
has been at 2.0 percent as per
reports in November 2020.
In TK maxx The
covid 19 situation
has also lead to
shifting preference
of customers
towards more
online platforms
where there can be
easy purchasing
and following up
of proper norms of
social distancing to
manage the
overall rules.
SOCIAL Consumer trends/
tastes,
Fashions
Consumer buying
habits
Lifestyle factors
Career attitudes
Work-life balance
Population
demographics147
0474330
There are some of the social factors
that affect the customer behaviour.
In UK, customer engagement is
related to going beyond marketing
aspect that is related to the overall
product and services offered by a
organisation (Nayak and
Kayarkatte, 2020).
In TK maxx the
present COVID 19
scenario affected
the changing
preferences of
customers as they
developed more
preferences for
online availability
of products as
compared to
physical stores.
© CIPD 2020 7583
External factors
to consider Factors affected within my industry
Importance to
organisation

TECHNOLOGY Automation
Innovation1470
474330
Disruptive
technologies
Social
networking
Upgrades
Robotics
Artificial
Intelligence
Security
The fast changing technology has
affected the functioning of
organisations. The new technology
adopted helps the retails sector
organisation in having contactless
deliverers to protect customers and
drivers. 1470474330
In TK maxx the
organisation was
working towards
taking new orders
based on updated
technology
focussed on
offering personal
protective
equipments,
implementation of
social distancing
and enhancement
in sanitisation &
cleaning facilitates
(Liu and et.al.,
2018).
LEGAL Employment law
Common law
Local labour law
Health and safety
regulations
There are some of the legal laws
that includes employment rights act
1996, national minimum wages act
1998, employment relations act
1999 (Shimpalee and et.al., 2017).
there is also implementation of
national minimum wages act where
there is payment of minimum
wages to employees.
This policy is also
properly adhered in
TK maxx. In this
there are specific
rates of minimum
wages according to
which employees
are offered with
payment.
ENVIRONMENTA
L
Environmental
restrictions
imposed by in-
country
governments
Sustainable
resources CSR
(Corporate social
responsibility)
Ethical sourcing
Transportation
Procurement
Supply chain
management
Future pandemics
In the present scenario there is need
of some of the specific factors that
includes corporate social
responsibility and other such related
aspects in order to deal with its
impact on business functioning in
long run.
TK maxx is a retail
sector organisation
that is working
towards a zero
waste landfill
target. In this all
the waste from
operations and
stores are sent
directly to be
recycled.

Key drivers of change:
There are many key drivers to change that may posses impact on the overall functioning of
organisations. Such as the present covid 19 situation is one of the main drivers that has completely
transformed the overall functioning of organisation. With the broke out of covid 19 pandemic the
overall functioning moved online that is accelerating a digital transformation. Employees started
working from home and adopting are adopting various digital models for the purpose of maintaining the
operations & preserving the revenue flows.
Impact: The overall impact of the key driver of change in this context can be understood that there is a
work from home scenario that is adopted by some of the outlets of Retail sector organisation. There is
now development of revolutionary mindset that combine collaboration without competition. The
organisation with suppliers and other retail brands are working towards using the limited source for
maximizing the present customer value. Apart from this employees are providing support to work in
work from home arrangement for ensuring their safety and working of organisation to take place
consecutively.
Recommendation for the organisation:
It is recommended that to have a digitally enable economic & social activities it has become important
to have proper digital accessibility & engagement that is reinforcing the connectivity by use of dynamic
organisational goals and digital technologies. There are many opportunities in terms of retailers to
acquire some new customers, enhance the present engagement with customers, reduction in cost of
operations and further improvement of employee motivation that can leads to positive influence on the
margin perspective and revenue. Digital transformation is now defined as the technology enabled
combination of resources that can be used by TK maxx in terms of devices, protocols, methodologists,
processes and networks.
Conclusion
It is concluded from the above made analysis that external factors affect the overall functioning of
organisation. Various internal policies and regulations are also affecting the way organisations are
working towards its development and enhancing the productivity in long run.
Macro environment is related to the various external forces that may posses a impact on the overall
functioning of organisation. The present brexit situation has affected organisations and their internal
functioning. The covid 19 situation has also lead to shifting preference of customers towards more
online platforms where there can be easy purchasing and following up of proper norms of social
distancing to manage the overall rules.