Arcadia Group Pest Analysis

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PEST analysis
Business Environments. Arcadia Group ltd.

Assignment 2
Module leader: Dr. Marcjanna Augustyn
Student ID: 200911496
Module code: 44201

Table of Contents

Summary3
Introduction3
Methodology4
Political Factors4
Economic Factors7
Social Factors 8
Technological Factors………………………………………………………………………………………….10 Conclusion………………………………………………..……………...…………………….11 References…………………………………………………….……………………………….12

Summary
Report includes political, economic, social and technological factors. This analysis is done in order to predict the future impacts of these factors on Arcadia Group. The main points are discussed: Political Factors: taxation policy, competition policy, environmental problems. Economical Factors: interaction with Global Financial Crisis, unemployment, GDP trends. Social Factors: Arcadia Group and the code of conduct, company’s charities and social aspects such as age, lifestyle, income, which may affect the organisation. Technological Factors: Online shopping, transport innovations.

Introduction

The Arcadia Group – a fashion retailer is one of the biggest UK private companies. Company’s portfolio of brands include seven of the most famous high street fashion brands – Burton, Dorothy Perkins, Evans, Topshop, Topman, Miss Selfridge and Wallis. Arcadia Group has its roots in the last century but its aspirations very firmly in the 21st. The company was founded in 1900 by Montague Burton, Lithuanian emigrant who came to England and borrowed £100 to start his own business in clothes industry in Chesterfield. In 1906 he has established few stores selling ready-made and bespoke suits. In 1910 the company moved to Leeds, where Arcadia Group has the main seat today. World War I provided Burton opportunities to expand his business by supplying clothes for soldiery. By the end of the conflict, Burton employed 124 men and 108 women at the Leeds headquarters. By 1921 Burton started developing Hudson Road factory, which is now a location of Arcadia Group's accounting and facilities teams. In fifteen years it became the biggest clothing factory in Europe. Today The Arcadia Group is a modern, dynamic company employing 27,000 people and the newest retailing techniques to improve their brands and reach every customers demand. The aim of this report is to make thorough analysis of company’s political, economic, social and technological factors that might influence changes in the firm’s business environment. It will be explained how these factors can positively or negatively affect the industry and the firm’s future profitability. PEST analysis is one of the most popular and effective tools which are used to investigate the business environment. It gives a clear awareness of various macro environmental factors that organisation should consider. It is a helpful tool for investigating and understanding company’s possible opportunities, market shifts business position and other factors.

Methodology

The report is based on different online sources and databases. The main source is the official website of Arcadia Group and the annual responsibility report of the company. All information in this report was found on trustworthy official internet sites.

Political Factors
First of all, we will investigate the Political aspects of the analysis. Government has a big influence on business and company’s success. According to www.thefinancialexpress-bd.com, after the Great Depression of the 1930s, Keynes, the great economist, showed that government policies may impact on business very strong. For instance, if a government imposes more taxes and duties on a particular sector than is justified by its profit margin, it would go down or the businessmen in it can lose their interest in the sector and can give up their business. Similarly, tax and duty exemption for a particular sector would encourage businessmen to invest in it. As a result the sector will grow. If a country's monetary policy ensures...
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