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this is a PESTLE analysis example for a national business, related to the enterprise in the business unit, for BTEC business studies, which is equivalent to 2 GCSEs
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Enterprise in the business world Mariam Al SalehArk Acton Academy
Learning aim A: know how trends and current business environment may impact on a
business
Task 1: PESTLE ANALYISIS for a national business:
Outline how the business environment can impact on a business
Political factors: for a multinational business such as Nike, political issues might affect the base
and sales in certain countries. Nike's sales and revenue would probably decrease on both bricks
stores and clicks platforms, as people won’t be to buy their products. For example, the
presence of war or any political main problems will cause all the Nike brick shops to close, and
it will not be safe to pay and deliver the ordered products to unsafe countries. Therefore, their
customer base will decrease, which will affect their profit.
Economic factors: economic factors include all the activities in a country concerned with
manufacturing goods and services. Exchange rates should be considered while selling products
in different countries. So, Nike should plan their pricing strategy and put the prices according to
the country, this is a key factor that should be planned to avoid losing customers and loss
Social factors: in the presence of social media the needs and wants are changing as customers
are getting influenced by celebrities and social media. Furthermore, the business should be
following trends and changes to keep on track. For example, Nike should follow trends and see
the changing needs of their target market. This would positively impact on Nike as it will
guarantee the customer loyalty and trends might lead into new competition ideas for new
products they can develop to compete with the other businesses and attract their customers
which will increase sales revenue.
Technology factors: Nike bricks shops are found in many countries in addition to the online
presence which means their production should be fast to provide all the customers with the
products they need. Nike should be aware of any technological trends such as a new production
process using developed equipment, or the online banking payment system that should be
provided in their bricks stores and click platforms to help with easier and faster shopping.
Legal factors: employment law imposes additional costs on the business because they must
spend additional money on staff. Like the health and safety act, the fair salaries that would
make staff feel that they are treated fairly so they will be motivated. For example, Nike works
on making campaigns for staff to develop their skills and improve the production line.
Ethical factors: some businesses start by using recyclable materials and try to protect the
environment and avoid increasing its pollution, however, these recyclable materials are often
expensive which increase the total cost so as the sales start to increase the business won’t be
able to pay for it, and they will use cheap non-recyclable materials instead for a cheaper total
, cost. For Nike, being an environmentally friendly business is one of thew future aims. Nike is
planning to decrease their factories through using more safe materials
Explain how changes in the current business environment are likely to impact on a start-up
business
As a main step, startup business market research should be done to identify your target market.
What are the age groups? are they adults; teenagers; or families? What do they like and prefer
[can be known through surveys, questionnaires...] are your prices suitable for their income and
better than the other competitors' prices?
-location: if your local business is not accessible to your target market that might affect the
number of people that come to your shops known as the number of footfalls.
-staff and service: if you are operating your startup business in an area that lacks employees
that might affect the number of customers and sales as you will not be able to find the number
of staff needed to work you might use a smaller number of staff. This might impact your service
as the staff will not be able to provide a nice and quick service.
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