Business Examples of How Changes in the Environment Affect Organizations Environment

Topics: GlaxoSmithKline, FTSE 100 Index, Factor analysis Pages: 5 (1516 words) Published: February 11, 2013
Business Examples of how changes in the environment affect organizations Environment| |
P.E.S.T.E.L Analysis|


Indian summer boosts sales at B&Q owner Kingfisher4
Nokia's Windows tablet to take on Apple's iPad5
Topps Tiles sales continue downward trend6
GlaxoSmithKline to settle drug disputes for $3bn7


In this assignment I will cover how business environment influence companies, their revenues and profits and what they can do about it.

I will do that by using the P.E.S.T.E.L analysis which will show how companies will be affected by one of its external factors.

In the end I will draw a conclusions from all the information I gathered during the analysis

Indian summer boosts sales at B&Q owner Kingfisher
By Matthew Holehouse 01 Dec 2011
PESTEL factorEnvironmental

The weather seems to effect o lot of companies in different sectors. One of them is Europe's biggest DIY group, Kingfisher as their retail profits goes pass the expectations because of the warm weather, which saw an increase of their revenue in DIY sector. Matthew Holenhouse reported that retail profits for DIY giant increased to 13.9 per cent to £273m, an astounding results as the analysts expected profits to be around £263m. Screwfix, the builders merchant, also seems to be doing well, as they add four new shops and plan to another 35 in the near future. According to Matthew Holehouse (2011),

“Kingfisher was the biggest riser on the FTSE 100 this morning, with shares up 3.3 per cent to 264p." While it certain that DIY Giant enjoy favourable weather conditions and additional profits, however earlier this year it was reported By Harry Wallop (2011), "In the UK, its B&Q chain has been hit by a triple blow of the poor summer weather, a closing down sale held by its rival Focus, and the continued reluctance of the British consumer to go shopping."

Article also mentions Kingfisher two ShareSave schemes reach maturity and more than 2000 employees will share a huge £13.8m a payout.

Nokia's Windows tablet to take on Apple's iPad
Juliette Garside,, Wednesday 16 November 2011 19.47 GMT PESTEL factor: social
The article reports that Nokia is planning to launch a new tablet next year. High profits have attracted many new competitors however none of them were able to get the desired market share as Apple stands on top of with its iPad. High investments set a barrier for smaller companies to entry this market, however Nokia decided it's time to move forward and launch its tablet in 2012. Article noted that Nokia partner in software will be Microsoft, with the expected Windows 8 release. According to Juliette Garside (2011) ,

"Tablet computer sales are expected to explode over the next four years, with analysts at Gartner predicting they will outsell PCs by 60% by 2015. However, tablets could go the way of MP3 players and remain a one-brand market." Social lifestyle changing from PC's and Laptops to smaller, more portable devices which allows peoples to communicate and interact with others. Social networks may be one of the biggest cause of it. This trend will continue in the near future.

Topps Tiles sales continue downward trend
By Claer Barrett and Mark Wembridge. November 29, 2011 9:16 am

PESTEL factor: Economic

Dropping like-for-like sales and consumers cutting back spending, the future looks gloomy for wall and floor covering specialist Topps Tiles, as their struggle to recover their profits.

Article reported that wood flooring retailer 1 year-end sales went down by 6.9 per cent even though they spend extra £1m on marketing.

Claer Barrett and Mark Wembridge (2011) reported that
" Topps’ market share edged up by 1 percentage point to 26 per cent in the period, which Mr Williams attributed to the group’s smaller rivals struggling in the...
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