Business Enviromnet M3 D2
Business and Management
Submitted By sheena1342
For M3 and D2 I will write about new Look has survived in two different economic environments, I will also be evaluating how future changes may affect them as well.
Because inflation in the UK has gone down the Profit that New Look will have made will have gone up – the interest rate has also been lowered which will help boost the company. Because of all this the demand of high street clothing has also gone up meaning that more people are buying New Looks clothes. As New look have had a rise in profit they have decided to open up nearly 600 stores all over the UK. Russia has also had a raise in their economy which means that they have also had a higher demand for high street clothing. Because of this New Look have decided to grow their company and maximise profits over there. In 2013 they opened up around 20 stores, this is good as they have only just started to open up stores in Russia.
At the moment taxes have been lowered to try and help the economy because of the recession – when the recession is over taxes will go back up. This means that New Look will be able to trade and hopefully they will be able to make more money, however they might find that the new stores that they have opened will start to cost them a lot of money. When taxes go back up it should not be much of a problem because they will already be doing well.
UK government have been thinking about leaving the EU, if they were to do that than they would not to follow EU rules. This might be both a good and a bad thing – it will be good because they will only have to follow the rules that the UK has set. It may also be bad, if something bad happens it may be an unfair ruling against them, they will not be able to take the case to the European court.
Russia are now changing their legal system to try and improve how their government. They are also trying to make it more efficient for bankruptcy and their shares policy. Because of this New Look will have to be careful when conduction business and trading, they will have to make sure that are all the contracts are legally binding. They will also make sure that they follow all new and old laws that have been made.
In the UK they have been putting pressure on all businesses to make sure that their staff are trained to a very high level of health and safety. This will also include the temp staff, this is to make sure that staff are working in a friendly environment.
In the past few months a lot of companies have been found out about committing fraud or unlawful conduct – New Look will have to make sure that they are paying taxes to avoid anything bad. If New Look weren’t to follow these laws it may give New Look a bad image and may also lose customers over this.
In the future the laws may change – things like trading and the sale of goods. In Russia they will also have to be careful how they go about their business. Laws about trading in Russia have been changed meaning that New Look have had to change the way they do business.
New Look is doing well by making sure that their company is a very diverse company – they hire many people that all follow different religions. They have many stores in all regions of the country, they do this by hiring people of a different age and people that live different lifestyles. This can be from having a specific section in store like a children or business section - there are mini stores for specific sections like a men’s New Look. They display windows by what the area will most likely want to buy, the window display can be influenced by ethnicity or age/lifestyle bracket of the area. It can also be what’s trending or what they want to start trending, the main reason for a window display is to get customers through the door and buying products so it’s good that they change it for the average consumer in the general area.
They have also started to reduce their waste and increase the amount that they recycle – this is something that both the UK and Russia want to do. New Look are trying to improve their company by improving the workplace and the conditions the employees work in. they are trying to reduce the amount of waste they use and they want to lower their carbon footprint. They also listen to what customers want and have decided to keep the student discount to help the people that are on a lower income. Customers also said they wanted loyalty cards which they have now started to offer.
The social factors like trends changing mean that New Look have to change what they sell quite often. Because of this they have to constantly change what they sell and in what sizes they sell. In the UK they the average size of clothes will constantly change so New Look will have to make sure they stock clothes in all sizes. The thing that will be a problem for New Look is all the stuff that will be left behind. What they usually do is either take it back to the warehouse and sell it off at a clearance price on their online store. Or just sell it off in the stores for as cheap as they can.
There are other social factors that will change the way New Look customers feel about the
Environment – this may be like adapting to the new technology. To further help their suppliers they adapt to the manufacturing needs, this helps to increase productivity and secure the most trusting suppliers.
The amount people are earning is now starting to change meaning that more people may start to spend more money in New Look. This means that New Look can start to see a raise in profit and sales. It may also mean that they will have more competition – they will need to make sure that they are one of the best clothes shops going. This also means that online sales will increase as people will be starting to spend more money rather than looking for something cheaper.
M3 in bold
D2 in normal