In They are both located in Stratford, one

In the following report I am going
to talk about pestel analysis for my chosen business which is Holland and
Barrett. I will also be talking about how pestel analysis impacts the business
environment.

Holland and Barrett were first
founded in 1870, from there on they have become one of the world’s leading
health and wellness retailers and the largest in Europe. Holland and Barrett is
a store that promotes the well-being of people. They offer a wide range of
products to their customers, these include a range of vitamins, minerals, health
supplements, specialist foods and natural beauty products. Holland and Barrett don’t
only sell branded products, but they also sell own labelled products across
these categories. Holland and Barrett have many stores around the UK, a lot of
their stores being in London. For example, there are two local Holland and Barrett
stores located next to University of East London. They are both located in
Stratford, one being in Stratford centre and the other one located in
Westfield.

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Holland and Barrett target those
who pay attention to their physique. From cosmetics to health supplements. Physical
well-being has been the trend for many years and a lot of organisations are
taking advantage of this trend to increase their profits. A trend is one of the
social factors that can affect a business. Macro environment consists of 6
different factors. These factors are political, economic factors, social
trends, technological changes, environmental and legal factors. These factors
are uncontrollable factors that influence a business’s decision making, this
also affects an organisations performance and their strategies.

The first factor of pestel is the
political factor. The political environment is one of the less predictable
elements in an organisations business environment. Political factor is all
about the government and to what extent the government interferes in the
economy. This includes many laws that they have created for businesses in the
UK. Some of these laws are Labour law, Environmental law, trade restrictions
and so on. One major government change that happened recently was when the UK
left the EU. This had a huge impact for businesses within the UK, not only
businesses but also banks. One way that Brexit affected business in the UK is
that making imports to the UK are more expensive now which means it will cost
businesses more money to import their products. This will mean businesses
profits will drop and the only way for businesses to increase their profit is
to increase the prices of their product. However if businesses increase prices
of their products, this will lead to inflation. Before the UK left the EU, the CPI
rate was at 0.5% in June 2016. After the UK left the EU, this rate has increased
dramatically, it is now at 3.1%.

The second factor of pestel is the economical
factor. Through this factor, organisations should observe the economic problems
that might have an impact on the organisation. These problems could be factors
such as interest rates, inflation rate, economic growth and unemployment rate.