Essay about Debenhams

1132 Words Jan 3rd, 2012 5 Pages
Business Communication Pest Analysis ofDebenhams | | Burcu Misir 3021110 | | misirb | 11/22/2011 |

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Introduction
All companies and organisations are affected by external influences intensively which affects factors as reputation and the sales of the company. External influences have a negative impact as well as negative impact. This essay will establish to assess at the external business environment of Debenhams. PEST analysis tool will be used in order to complete the assessment efficiently.

PEST Analysis
PEST analysis is used for to understand market growth or decline and to discover the position, potential and direction of a business. It is also defined as business measurement tool. PEST stands for Political,
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Debenhams supply cosmetics; therefore there are some regulations which need to be followed to complete the standard requirements. The expiry dates for cosmetics can vary from the country to another for cosmetics which Debenhams will need to meet.
UK budgetary revenue is based on domestic borrowing which carries approximately 30%. The money is mainly held through taxation and corporate e.g. Debenhams tax at a high level. When compared with other companies, Debenhams does not benefit from this factor, which also impacts on the overall profit of the company. ( REG Debenhams PLC, Interim Results, 2009)
In Debenhams Annual Report it is stated that Debenhams meet the regulation of recycling. Pollution in the UK is a serious factor which the government is aiming to reduce, therefore government introduced the regulation which is reducing and planning to set recycling law. Due to minimum wage regulation of worker, some political factors have affected operations of Debenhams for example the necessary recycling laws. This persuaded Debenhams to continue on its expenses of raw materials as there have to sometimes be recycled.

Economic
External sources of finance is one of the factors which Debenhams relies on i.e. set charge capital to finance its process which means these basis of finance connect with set interest spending. These major financial costs are economical ramifications that may have an effect
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