Business Environment Analysis: A Case of UK Departmental Stores

This report examines the impact of various business environment factors on departmental stores in the UK, employing a PESTLE analysis framework. It delves into political factors such as free trade regulations and the implications of Brexit, economic factors including financial crises and consumer spending habits, social factors like changing customer preferences and market trends, technological advancements such as e-commerce strategies and AI-driven solutions, legal considerations including health and safety regulations and trade laws, and environmental factors such as recycling initiatives and sustainable practices. The analysis highlights how these factors collectively influence the operational decisions, competitiveness, and overall performance of departmental stores in the UK retail landscape, emphasizing the importance of continuous monitoring and adaptation to ensure sustainable business growth. Desklib provides resources like this to aid students in their academic pursuits.

Academic Essentials

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Impact of business environment factors on departmental store in UK business.........................3
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment refers to all those elements which can affect the business decisions
and operations. It is very important for the organisations to monitor and evaluate these factors so
that necessary and quick remedial solutions can be adopted for the business growth. This might
be also involve is the better factor with the external business firm and that might be greatly
functioning to the organization. While this kind of activities will help the organization for
working with having the better business firm and also make sure for having factor and various
forces that could cover some of the better things in organization. The environment have the sum
or collection about the internal and external factors such as customer, employee, management,
suppliers, owners, activities or government, technology, social and market trends, culture,
political, legal changes, economic changes etc (Laszlo, Cooperrider and Fry, 2020). While this
factor could affect the company with how they directly or indirectly can make their interactions.
The report will explain about the industry department store in the UK. Therefore, this report will
examined about the PESTLE framework and how their factors are being affected in business
environment and their impact over through having department stores in UK.
MAIN BODY
Impact of business environment factors on departmental store in UK business
PESTEL analysis is defined as a framework which consist various business environment
factors which are not in control of organisation but which can have critical implications for the
firm’s performance. Thus while formulating any business strategy related to growth, competition
and operations departmental store conduct a PESEL audit so that it can correctly and wisely
utilise its resources and decisions. The wide success and global expansion of various stores has
been affected by elements of this framework which are discussed below:
Political:
Political forces and decisions have significant impact upon organisational operating
decisions and mechanisms. UK being the chief operational region of departmental store also go
in hand with other foreign locations in which many stores has successfully developed as brand.
The most prominent feature of modern day political factors is free trade across various countries.
The free trade regulations also benefit to various departmental industry in UK and allow it to
import foreign products (Duan, Cao and Edwards, 2020). This make it possible for the
organisation to provide products and services at low cost and to withstand fierce price wars

among retailers. If the political environment in the country could changes their protest, bans than
that could led with disrupt with the supply chain of products and service. Then the business man
cannot run out their operation smoothly and that could have many conflicts at their store.
Another political factor which is currently playing dominating role in consideration is Brexit.
After the decision of UK to leave European Union greater changes have been introduced in
tariffs and trade regulations. It has also created political tension and uncertainty between UK and
other EU countries. With increasing boom of online retailing retail industry is already facing
intense price wars (Özbük and Coşkun, 2020). Along with UK organisation is also required to
monitor and compliance with political aspects of its other operational regions so that it does not
face any restrictions or barriers in its value chain and supplies. As retailing industry have to face
huge challenge in political sector for which the environment regulation and that could keep their
protection, interest rate and monetary policies so that country more working with countries,
employment laws, contract enforcement law and safely regulation. While such activities that
could have directly affected to the industry practices. Therefore, government have to pay huge
laws and regulation to carry out the business activities. If the government raises sales taxes, then
it would increase the prices of the product and services.
Economic:
In the current outlook and this seems to be more likely affected the retailing sales, so
people are try to avoiding the luxury products. many departmental stores have recently bit out the
closed with the number of stores in many countries and that have been harmed to the most
employee or their staff this might be just due to having the pandemic (Brammer, Branicki and
Linnenluecke, 2020). Financial crisis that could take place, due to having the decreases in the
high demand of products and services with the good quality because of low disposable income in
the hand of consumer. So for that they cannot spend their money over the luxury products and
services. The recession affected the company with giving the discounts as the organization
scrapped with the initial ideas on the festival and keeping their customer attraction.
The economy of country creates an environment and mindset with having huge system
and about the people, either they have to spend or not. If the economic is being good and many
people have jobs than many people could be able to spend many money towards the huge
products and services (Peters and Simaens, 2020). Hence, the interaction with the departmental
store that could have strong economic situation in the country and might be having better

implementation over through which the people can buy some of the luxury products from the
stores.
Social:
Social environment basically dealing with the thinking of 'People' and need to consider
more about their order to understanding. As this might be also important for the retailing industry
for making the customer. In making them understanding what and how they can buy their
products and services. Trends in social factor that could keep the affected towards the demand of
products and make their operated towards having the more product and services (Del Rio and
et.al.,2020). Which might be important for the organization in knowing about their customer and
also make sure about how they can deal over their having situation. In addition, the changes of
tastes and preferences of customer keep changes and that could be duty for the organization in
keeping the focus towards meet out their individual needs.
The departmental stores also need to work with the changes trends in which they can
easily manage their customer and come to know about many other customer need. As the clothes
and food selection are being with having highly range in which the people will buy something
while by keeping option (Kizgin and et.al., 2020). The organization bring out the expansion with
new clothes in which each level of class can buy their products and make their loyal customer.
Clothes have been also sold at street road in which they can easily make their organization
advertisement and try to follow up the social trends in which the customer are dealing. The
pricing of the products in such way that each and every person are being more capable for
buying products. Social trend and market trends in departmental store must be followed so that
could keep the companies for knowing about various things. While having such things this could
also led for having benefits and make sure for completing about the high impact over the
consumer (Alexandra, 2021). UK business can make sure about their customer and also followed
their fashion though having the social and market trends in which they can easily come to know
about the customer need and wants.
Technology:
While many departmental store have make their business through using E-commerce
strategies in which the offer or discount can be made. Therefore, it being clearly shown that
organization have invested more in technology which can increasing efficiency. Along with this
also include the major part for which the company can easily come to know about how they can

dealing over their situation in which they can easily make sure for having customer in online
business (Acha and et.al., 2020). While this might be also important for keeping the
advertisement through using the social media platform and that could be also important in
knowing about those things which could also keep their knowledge about the variables things.
The organization have also updated their websites with having bright colours and that
could be easy in using. The website should be in such way that people keep their attraction and
opened while at time of using the social media platform. As the stores also need to make the
multiple such self-checkout and this could make their increasing usages of the AI which might
be based on checkout in future (Ali and et.al., 2020). This form of adoption of new technology
will keep the brand stronger and also make the presence with the current generation. As the
company creating more and more new business operation model in which they can keep their
customer attraction and keep organization focus on the adoption towards some new technology.
Technology must play the important role in which the departmental store and their
customer could play important role in which the income sources can increased. New technology
can be adopted for customer in which they can created some special place in business sector. In
using new technology that could increase the buying, selling and weighing over the products and
services. In new technology this could also help the business for introducing some new products
and services in details and customer can make their shopping with having some specific
information (Firman and et.al., 2020). Therefore, new technology have also developed the mind
of people and also brought them closer along with people visit out some departmental store
which have the great outreach in UK business.
Legal:
In various departmental store have the legislation of every country while keeping the
changes and that might be also lead for having the training section on their areas such as health
and update their system. While having such thing every single as they make sure for having the
updated about the current laws and legislation. While this might be more important in knowing
about those things in having the business within the various countries (Cunningham, Harney and
Fitzgerald, 2020). The legal disputes in having the hard brand name to hold out the images
through the century long existence. As Britain changes have made the trade laws post Brexit will
be having the law post with another legal factor that might be effective for the brand hugely.

In operating the business within the various developed countries as the organization need
to keep their laws changes. Which could make their work easier for knowing about those thing
which can play the effective role and easily come to know about those factor which can be
important in taking benefits. The various legal factor that could affected the positively to the
business which saved them with many other products in countries. While having departmental
stores the laws and regulation in which they can operates many things which could include the
better and estimation about their services which could help out their business practices (Rahdari
and et.al., 2020). As the industry have to follow the governmental regulation in order for keeping
the environment clean and easily ensure about the safety. Therefore, government have also
changes the rules and regulation from time to time within the product and services transportation
so that could make them properly available for the consumer.
Environmental:
The industry have also set up their products with the recycling them into new developed
products or using in some better things. The company some profits earn from the selling their
recycling things in which they can easily make their better sales revenue. many departmental
stores have also changed their pressure to changes out their manufacturing and keep their
changes for selling in market (Jeswani, Figueroa-Torres and Azapagic, 2021). They are very
closely to the cotton initiative while in order to developing practices with having the support of
sustainable practices of procurement and processing with the cotton. This also works for
removing the fats from their fats, decreasing the use of energy and promoting more fair trade in
air. As many departmental store can work with having the better environment treatment in which
they do not try cause the environment and that must be important in which they can keep in mind
about the various people. The use of many chemicals have been banned in UK and the retailing
business should follow up the laws and regulation in which the environmental can work and
make sure for having the better environment.
As the organization have also promoted more about the sustainable retiling business in
which they can easily make sure for having the better concept and easily come to know about
how to make their dealing over situation. This might be also important in knowing about the
better concept and make their business for working with products in recycling in which they can
keep their customer attraction (Michelini and et.al., 2020). While this might be also important for
knowing about the better thing which might be important in knowing for which the organization

have to keep their customer attraction. Carbon prints have been reduced in the organization for
having the better recycling about their products. In current time, most of people keep their
attraction towards the recycling things and that could be more benefits for the organization in
sales revenue. Carbon prints have make the proper use in departmental store and recycling that
could keep the companies with having huge steps towards the environment. While having such
things the system can be improved and that could also led for having their better estimation in
which the goals and objective can be prepared. The industry can work for having the better
estimation in which the segment about the environmental things can be increased and that could
also have the better impact on the business. Through having such things this could also led for
having some of the beneficial importance and come to know about those terms and make sure for
having those things in which the high tech technology can used.
CONCLUSION
From the above report it had been concluded that, PESTLE analysis which could make
the business for working with more better impact. While this might be also important for keeping
about more benefits and some initial cost that can run out the business and keep their customer
for long term. This could be also important factor for highlights more about the macro level of
organization. Also examined about the impact of the exterior environment in business which
could help the organization for knowing about the market environment in which they can easily
make their business expansion. This have been also seems that external business environment
for the departmental store must be important in which they can gain many customer. Although,
this could also help the business for working with having the better impact and keep their future
growth. This could also led for taking the better interested and make sure for having the high
impact over through which the segment and completion over view about many other things in the
business activities. As keeping the better estimation about the sources in business the industry
required to keep their main focus some adoption in technology and make sure for having some
better growth and opportunities.

REFERENCES
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