Pest analysis online dating

05-Nov-2017 00:37

This has the ability to affect both the bottom line of the company in the form of corporation tax but also the ability of customers to spend with next, linked to income tax.

At present, levels of corporation tax in the UK have been lowered in order to attempt to stimulate economic activity (Telegraph, 2012).

From a purely statistical perspective, the years since 2007 have been an economic rollercoaster for the UK.

Following the onset of the global financial crisis in 2007, the subsequent year saw GDP growth revert to negative figures with -1% contraction in the economy.

This essay was produced by one of our professional writers as a learning aid to help you with your studies Tags: PESTLE Analysis, PESTEL Analysis, PEST Analysis A PESTLE analysis provides and analysis of six of the key macro level factors which affect a business and the decision which it makes (Grant, 2008).

This assignment will apply the relevant factors within the PESTLE framework to the international clothing retailer Next and its subsidiaries.

A critical factor which may have an impact upon Next in the UK is the current state of the economic environment.

As a business which makes use of a premium based differentiated strategy, as opposed to being a cost leader, it may be seen that swings within the economic environment have the ability to impact the fortunes of the company to a greater degree than those operating in the necessity and budget sector of the market (Johnson et al, 2008).

This may be seen as a positive factor for firms such as Next who are effectively able to borrow large amounts of money for the purposes of capital expansion at much lower rates than have been previously seen.

Data upon which the assignment is based comes from a variety of sources including the company's annual report (Next, 2012) and released and well as information from the academic and business press.

In order to give the assignment a greater level of focus, the report will be limited to an analysis of the external environment in the UK.

For a UK based business such as Next that has international operations in the Euro Zone, this could be seen as negative with the prospect of foreign exchange rate risks being felt and the introduction of additional transaction costs which would be eliminated if the government decided to join the Euro Zone.

From a more general perspective, the UK political system based upon parliamentary democracy may be seen as providing Next with a relatively low risk political environment in which to operate within (CIA, 2013).

This may be seen as a positive factor for firms such as Next who are effectively able to borrow large amounts of money for the purposes of capital expansion at much lower rates than have been previously seen.Data upon which the assignment is based comes from a variety of sources including the company's annual report (Next, 2012) and released and well as information from the academic and business press.In order to give the assignment a greater level of focus, the report will be limited to an analysis of the external environment in the UK.For a UK based business such as Next that has international operations in the Euro Zone, this could be seen as negative with the prospect of foreign exchange rate risks being felt and the introduction of additional transaction costs which would be eliminated if the government decided to join the Euro Zone.From a more general perspective, the UK political system based upon parliamentary democracy may be seen as providing Next with a relatively low risk political environment in which to operate within (CIA, 2013).This may be seen as an advantage in comparison some of Next's ventures into potentially less stable political nations such as Russia and those of the Middle East.