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Critically Evaluating an Academic Article

In: Business and Management

Submitted By captaincampbell
Words 1231
Pages 5
Matalan is the UK’s leading out of town fashion and homeware retailer and operates through 216 stores in the UK with an e-commerce platform and 11 overseas franchise stores. The company also operates with a purely online direct store and after their recent success with bathroom furniture saw the 2015 launch of Matalan value bedroom furniture from children’s pieces as well as higher end options, Maker (2015, p.13). Matalan Retail Limited was taken private in December 2006 by the acquisition of its parent company, Matalan Plc (now delisted and known as Matalan Limited), by Missouri Bidco Limited, subsequently renamed Matalan Finance Limited. Matalan Finance Limited has subsequently become a public limited company and is ultimately controlled by the Hargreaves family.
This strategic starting point ensures the company’s performance is aligned positively with the ever-changing influences that may affect business environment. The radical and on-going changes occurring in society creates an uncertain environment and have a very big impact on the function of the whole organisation. I will conduct a PESTLE analysis concentrating on possible issues that may affect Matalan PLC.
Matalan PLC is sensitive to a number of political factors being a department store supplying clothing alongside footwear and housewares. One of these factors consist of changes to the UK governments national minimum wage, as of 1st April 2016 rates rose from £6.70 to £7.20 for employees of a certain age GOV UK, (2016). Decisions in politics surrounding the national minimum wage puts pressure on this department store to increase their compensation accordingly, it also determines the minimum amount Matalan PLC will spend on payroll. The current politics that set tax rates affect the stores business volume, the higher the sales tax the more expensive it becomes for customers. This will then affect how

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