Comprehensive PESTLE Analysis and Consumer Insights for UK Retail Industry Assignment Sample

TASK 1: GLOBAL DRIVE

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1.0 Pestle analysis of the UK retailing analysis

Pastel analysis helps to consider with different stages of micro and macro issues and problems that could affect business or any business environment with factors regarding environmental perspective, economical issues, socials works and justification, political and also with the economical conditions.

Pestle analysis

 Political

• The stability of the government of the UK is determined by many factors such as the controlled corruption or the low corruption, the rule of law, and the effectiveness of the government policies.
• The administrative system of the UK is comprised of democratic parliamentary and constitutional programs. This is another factor of the political review and the factors affecting the UK (Anderson et al, 2019).
• UN has a strong economy and a permanent seat for that reason the UK has been influenced by global issues such as economic, social, political, military, and scientific.
• Apart from it, in the political factors different procedures of environmental regulations, polices based on the tax service, different trade restrictions and forms, political stabilities and the tariffs are some important government factors that could mandatory to mind in a business field properly.

  Economic

The United Kingdom is affected by economic factors. Those are:

• The trends in country GDP. In the year 2019, the GDP was near about approx 2.744 trillion US dollars. At that stage (Thomas et al, 2020), the economy of the UK was in 6th global position.
• Exchange rates, economical expansion or contraction, globalization, inflation, interest rates, cost of living, labor expenses, and consumer spending are only a few examples of economic factors.
• The market of the UK is so diverse thus it provides opportunities. With the help of the opportunities that help to grow and the flourish the business.
• Foreign direct investment is another economical factor in the UK .that it provides many facilities. Therefore the investors and the companies have invested the capital in various fields such as technology, science, clothing, real estate, food, entertainment, sports, and so on.
• The tax rate is the factor in the economy of the UK that would attract more investors because in 2016 the government reduces the rate of the tax up to 18 percent.
• In 2020 the unemployment rate is near about 3.8% whereas it becomes fallen roundabout 0.2% so which means that the people are earning. Apart from it, sometimes it increases the different disposal source of income allows retailers for generating more sales with a high-end process.

Social

There are some Social factors that can affect the government of the UK and the population of the UK.

• The UK is the world's biggest market for consumers. National statistics estimated that the population of the UK is near about 74 million.
• With the rise of the population the insurance companies, health care industries, and real estate have gained a lot of profit. Sometimes this factor can affect individual opinions interest which can generate and create impact on the company’s individual selling products and revenues based on the earrings.
• Health care systems provide many quality services to their patients thus all over the world prefer the system of the British health care system.
• With the latest information, the UK education system keeps on updating with the modern methodologies and with the modern technologies.
• In the UK there is a rate of less unemployment therefore the citizen of the UK is the high-income earner. Apart from it, it creates a life style method where different norms based on cultural and perspective and balance of work life can be observe properly.

Technological

• In the UK there is a technological factor that plays an important role in the economical part of the UK. Technology variables are mainly considered with creation, accessibility, and advancement of technology. This may encompass elements like processing capability and engine efficiency.
• In this country, there are many research and development institutes. They provide different types of opportunities and they provide opportunities for entrepreneurs.
• In this technological improvement, they contribute to the different types of inventions and the development of the technological field that can help to progress the economical field of the UK.
• The institute of the UK is succeeding over the other countries' technical education such as American institutes, the Korean institutes, and the Indian institutes.
• Thus for all of these reasons the country always breaks the barrier almost in every field. The number of sales in the nation has increased as a result of electronic transactions. Cashless transactions and payment flexibility have aided in boosting sales which is also important in the business of UK retailing sector.

Legal

• The legal factors affect the UK country. The company of the UK that is operating their business follows the employment act 1996 (Mezzanatto et al, 2019).
• The legal factors protect their rights with the help of some legal factors such as the holiday pay and the minimum wage.
• Also, they protect their rights with maternity leave and paternity leave.
• In the year 2010, the equality act protects people from discrimination.
• The act of 1010 is based on equality that protects the people from being of discrimination of their gender, color, discrimination of their race, and so on.
• All of the legal factors that can help to strong legal effects that is the reason behind the country's ethical improvisation.

Environmental

• As the economy is not moving forward thus every industry in the UK is facing environmental issues (Nandonde et al, 2019).
• For the pollution issues affect the environmental state of the UK.
• The government and the private farms and the corporation take the steps for the environmental issues.
• All of the environmental sectors of the UK investigate the reason behind the reason of serious environmental factors thus they spread the information about the eco-friendly products.
• They also provide information about less plastic waste, the recycling process, and the service (Tumaku et al, 2020).
• The UK is also facing environmental issues like bad weather and change in the climate. Apart from it, two main aspects that could affect the environment with environmental impacts and supply chain disruption.

2.0 United Kingdom Market Research Euro monitor

• Based on the united kingdom market research that depends on the latest market trend s
• The market research is based on the opportunities for future growth in the industry of retail.
• The report of the data and the analysis of the market research depend on some categories such as the discounters, the traditional grocery retailers, and the convenience stores.
• The market research depends on some categories such as hypermarkets, health, and beauty retailers, warehouse clubs, direct selling, home shopping, vending, and garden, and the home specialist retailers.

The reports of the United Kingdom include the retailing analysis

• The report is based on the analysis of the demand trends
• The report is based on the analysis of the detailed segmentation of the local products and the segmentation of the international products
• The analysis depends on the share market of the UK companies and the brands.
• The retailing analysis predicts that the report is based on the market forecast and the five years market trends.
• The analysis is based on the transparent methodology of the research and robust which is conducted in the country.

As an example: By the Minted analysis of the United Kingdom market research the retail briefing state that

• In the Covid 19 situation the Covid 19 tracker of the analysis of Minted state that the average of 44% of consumers shopping more online in the year 2021
• In 2021 the car finances markets facing many challenges. the issues of the supply chains and the inflationary pressures disrupt the automotive sector (Zhao et al,2019)
• Due to the sustainability in the technology that is concern over the quality is the primary reason among the consumers.
• The consumers have not bought technology of the refurbished before and for that reason, it is the main key that the retailers give visual examples of what a refurbished looks in good condition.
• The music industries were also affected due to the pandemic situation due to navigating the cost of living crisis. The customers demand live music and that is lead many people to spend money on the tickets.

TASK 2: CONSUMER ANALYSIS 

1.0 About Consumer analysis

In the world the UK market has the largest business capacity in almost every sector of the trending business community. And day to day its essence and pressure of work including supplies of products and services as per human needs has just been getting higher and higher and creating a base of demand. In the Retail sector is the giant purpose of the present business community. Retail sector is a process of selling any product or run any businesses individually towards directly to their customers. In retail sectors its include of supermarkets, shops , departmental stores, stalls in the market , sales people including door to door and especially retails from internet or online business.

Figure1: Business and shopping process

2.0 Consumer Analysis

Though from the 2020 to 2021 for the pandemic situation various areas of business and retail markets landscape has changed a lot in the world as well in the markets of UK also. Online purchasing and online works has become higher and definitely has created a change in the field of business and creating a long channel of online loop of creating a successful business domain. 6 out of 10 people are shopping online now (2021-22). From the post pandemic environment online business especially in retail sectors has generated almost 30% of sales which has increased a lot from the pre-pandemic situation. In Spite of having some little difficulties online business will surely rule in the upcoming future days (Shang guan et al, 2019).In upcoming days physical stores will be open for sure but also with the business setup of online purchasing options including retail sectors (Shang guan et al, 2019) .Apart from it there is a measure of demand and supply procedures which has increased in various ways from the post pandemic.

Figure 1: Business conclusion

Figure 3: Sales analysis

TASK 3: MACRO INFLUENCES

1.0 Introduction

Macro influencers is a particular term of a creator who has more than 10 thousand and above followers and a basic engagement rate of more than three percent with popular brands. Nowadays macro influencers also have different titles like athletic, any famous personality of TV, or a particular leader of a community and also they can be defined as a celebrity as well. Macro influencers or influencer marketing is an easy and fast way of promoting a particular brand and accelerating its growth through social media. Possibly it's the great way to start and build a particular brand by following some strategies and spreading awareness about it. Reaching towards new audiences , working with many talented collaborators or influencers ,who can make and create beautiful contents or videos according to a particular brand's need while at the same time create the biggest help in generating Sales for the brand. Not only in the UK retail sectors or various business parts the thing is spending globally for its amazing work.

Figure 1: LSN macro trends

2.0 LS: N macro trend

Macro trends can create major trends with all different customers and their behavior that will maintain a business environment for the long term in the future. Macro trends are mainly a right direction towards a global level destination (Nyame-Asiamah and Ghulam, 2019). Apart from it various governmental rules and policies can surely create a change, shaping a particular brand with macro trends and which can lead to various opportunities. Economic trends are also an important part by which an investor can surely find a particular macro trend based on product or service.

Figure 2: Ecommerce Report

There are various examples for generating a macro trend Beauty, Diets, Physical stores, Luxury, Economics and many more. From 68% customers review they want to shop locally and well in spite of increasing necessity of online availability. On the other hand, based on a survey on 2021 e-commerce growth has been increasing from 30% to 40%. Another sales report also reveals that FMCG sales have increased by 15.9% based on 2021.The research also concludes that e-commerce can increase its share by 10% by the year of 2025 (lsnglobal.com).

3.0 Conclusion

In the upcoming years various different parts of macro influencers and their work will be increased with a higher percentage. Apart from it, it will also sustain and maintain its importance in the upcoming future days.

TASK 4: INNOVATION AWARENESS

1.0 Introduction

The current scenario of the part of Innovation Awareness in retail sectors of various businesses based on the UK market has changed a lot with various procedures.

2.0 Analysis

LS: N macro trend system which is connected to the multiple retail sectors of the UK market of retail sectors and businesses. There are different modifications in the terms of technology and manual work has grown and allocated by companies with authorization including management systems with process of innovation. Innovation awareness is mainly done with the software work based on different business strategies and future goals. In terms of innovation awareness, various programs based on the point of sale system (pos) strategies are made in the business of ecommerce systems (Zameer, and Yasmeen, 2022). More than 74 percent of retail customers support the fundamental regulation. Apart from it, various store maps are reinventing the system for better indoor positioning. Mainly people are working to create an easy and hassle free system where one can particularly notice everything based on the retail sector and business and also which can give a quick solution if any problem or disturbance occurs due to the present circumstances. Besides its use of AI (Fang et al. 2022), artificial intelligence security has also taken initiative for making a website or ecommerce business better with relevant software skills and while identifying the problems including creating their solutions (Shu et al. 2020).The AI system has become much more popular in the world, especially making the retail sectors prominent and helpful towards its community which also supports the customer queries including the workers of every individual company or retail sectors based in the UK.

Personalized shopping experiences are also in trend in the retail industry that consumers value more and more. Retailers frequently offer suggestions to customers based on their preferences, geography, order history, and past searches as part of personalization. Apart from it there are some other facts that can be important for the development of those retail sectors. It includes,

• Uses of artificial intelligent in the sectors of the retail business.
• Demands that could be on demands based on the need of the AI system.
• PoS Systems and sustainable procedures of ecommerce are also important to implement in the business field for the new structural awareness based on the retail sectors mainly in the UK.

(Source: “deloitte.com/cn/en/pages/consumer-industrial-products/articles/the-future-of-retail-3.html”)

3.0 Conclusion

As a result based on the macro trends of the LS: N system, there are multiple features of the ecommerce system which will be increased for sure in future days.

TASK 5: METHODOLOGY PLAN

1.0 Introduction

Based on the present scenario of retail sectors belonging to the UK market there are various steps that could be implemented to create a proper overview or structure of various retail sectors and their present condition and the future forecasts of upcoming years till 2024. To introduce a proper business product in a retail sector there could be multiple strategies to take. 

2.0 Methodology plan

Overview: Based on the research topic of the LS: N macro trend in the retail sector in the UK market there are 6 tasks that are concluded where the methodological plan is another important part which again should've been included too. There are multiple strategies that a retail sector can take as a measured step to continue its journey based on a product and procedures (Nash and J, 2018). As a marketing strategy, a retail sector can surely work online as a digitized brand or it can attract customers manually by purchasing a product. The sector can also use multiple tools for generating leads and for useful things. The procedures can be implemented for small firms or sectors, which do not have that much resources or corporate participation for creation.

Retail factors: For a particular business implementation, controls, and management with supply chains is important as a marketing strategy (Silva et al, 2019). Based on retail marketing at first one should always consider the basic things like the product should be sold to whom, what would be the product for selling and when to sell and where to sell for the best place to start.

Retailplanning: Besides, setting a goal is important for starting a business, then proper observation of internal and external procedures is also important, then analyzing the market value, and customer choices then should focus on making particular strategies with a short-term goal is important

Classification: As a classification of retail stores, there are the particular locations, the exact size of a store, annual turnover and margins, and the number of stores or outlets that are going to be held.

Examples of retail structures: Multiple supermarkets, retail warehouses, stores of a particular department, shopping malls, various franchises, online retailers, suppliers, and many more.

Major decisions based on retail: In the decision-making part there are various important factors that should be kept in mind (Kautish et al, 2018). Like product price, product promotion, product assortments, and orders including maintaining a target to get the maximum revenue out of it.

3.0 Conclusion

Following these kinds of methods while being patient, a retail sector-based business can surely be successful in the future.

TASK 6: STRATEGIC IMPLICATIONS

Strategic Recommendations

Consumer-based trends or macro trends are particular statements that could be complex sometimes for some particular reason due to the changes in consumer individual behavior. All the present aspects of customer behavior happen for some specific reason and which may create a huge impact on the market which is completely going to become online and based on digitalized technology.

There are some points that could be implemented as an implementation for an executive team while maintaining an LS: N macro trend for the development of retail sectors (mainly in the UK market) to create a better strategy for the upcoming years of 2024. This is -

• Positive growth and competitors: the positive growth of e-commerce business day today can surely incorporate all the other business models and companies in the digital field. Based on these particular methods many companies will maintain or at least will try to be digitalized, the e-commerce quantity will be increased (Naidoo, and Gasparatos, 2018), and at the same time, the competition will also start between the competitors based on the retail business sectors for maintaining the loyalty with the individual product or services. In previous times many business fields have a different loyalty program but they are changing a lot. Nowadays retailers included many different loyalty programs which mainly included online and mobile purchases.
• Approaches for partnerships: after the pandemic situation the scenario has changed a lot in the business field. In retail sectors there are various different partnership programs are included from 2021. Online content and its publishing, and different programs for affiliate marketing have increased the competition for e-commerce businesses (Mukonza, and Swarts, 2020). Different commission programs based on every single sale have increased in the online business procedure. Nowadays customers are ready to spend more time online and every e-commerce business is trying to modify the design and creates better process and tools.
• Engagement for the shoppers: various different changes are making in the e-commerce sectors. Business modifiers are created robust search and various capabilities by adding the exact need for individual desires. Various streaming line exchanges and returns. Based on it the experience of using an app or particular application is modified every day. And becomes more customizable.
• E-commerce in mobile: Mobiles are an important measure gadget that is used widely by people. And the use of various different websites and e-commerce apps is mainly done on mobile by many people out there (Bili?ska and Sta?czyk, 2018). That's why the complete E-commerce system is majorly focused on a suitable system based on mobile and search. Apart from it,
• And the other trending software work is (artificial intelligence) which creates a huge change in the various application and software with the e-commerce system for any business and work-related purpose and customer satisfaction with long (sustainability).

These are some important aspects and trends which can be followed for better retail sector development in any field of business. Among all the procedures Artificial Intelligence and Data Science will generate leads and gigs in the future days.

Planning Timeline

Apart from it, there is also another perspective that could add as strategically plan for the implication of strategically thoughts. It includes,

• Opportunities that are work with international or global marketplaces can include high end sustainability with creating digital channels and ads.
• For decrees the hazard of burdens in the retail sector trading with different process of cross-border is important.
• Complete understanding of the retail internal section is important for the growth that can bring different resources of governmental policies by that a particular business sector can adopted better work policies, different sustainable strategies working with partnership program and many more.
• Consumer support and their supporting reviews is also plays an important role for the business sectors with having deliver policies which can take initiatives for generating customer’s benefits too.
• Stimulating thoughts with having innovative talented people can also increased the work capability of the UK based retails sectors on their demands.
• The option of (buying now pays later) is an important tool or programs that can also make trust and interest in various online portals and systems based on the retail sectors.
• Different systems of (voice assistants) have also been added which can guide anybody for hazard-free surfing in the e-commerce system based any retail sector website or any application for easy work.

References

Journals

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Mezzanatto-McNair, S., 2019. An Analysis of Business Strategies for Economic Growth and Expansion of Digital and Online Tech Industry: Southeast Asia and United States.

Nandonde, F.A., 2019. A PESTLE analysis of international retailing in the East African Community. Global Business and Organizational Excellence, 38(4), pp.54-61.

Thomas, P.J.M., Sandwell, P., Williamson, S.J. and Harper, P.W., 2021. A PESTLE analysis of solar home systems in refugee camps in Rwanda. Renewable and Sustainable Energy Reviews, 143, p.110872.

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