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Company Overview
The company is a global retail organization that deals with internet services and fashions that target customers who are aged between 20-30 years. ASOS Plc. deals with branded products that are worn by both men and women. Its operations are carried worldwide by distributing its products to interested consumers. The headquarters of ASOS Plc is located in London. In 2000, it was formed there targeting the young adult population. ASOS Plc. also deals with online marketing of fashions and accessories like cosmetics (Wells, 2018). Over 850 brands are sold on their websites. Additionally, ASOS Plc. services 196 countries across the world. Its total revenue obtained in 2019 was 709.5M. According to statistics carried out in 2018, the company has a total of 4,386 employees. The following are the names of the top management of the company; Adam Crozier is the chairperson of the company, Nick Beighton- CEO, Anders Holch Povlsen, who has a 27% stake in the company. Nick Robertson, Andrew Regan, and Quentin Griffin founded the company after seeing an opportunity on the global internet. They formed ASOS Plc. to provide an alternative market for products.
The industry in which ASOS Plc. Operates
ASOS Plc. operates as an investment holding company. It has online retailing because it owns the subsidiary, which is ASOS.com Ltd. ASOS company subsidiary is a global online fashion and beauty through retailing. This investment holding company provides the basis of ASOS operation, which has made the company successful, especially on the global internet.
General Environment -PESTEL Analysis
ASOS Plc. PESTEL analysis is that the strategic approach used to analogize the macro environment of ASOS Plc. Company. PESTEL is an abbreviated term whereby P stands for Political' E-Economical, S-Social, T-Technological-Environmental, and lastly L for Legal factors that influence the macro environment of the ASOS Plc. When the general environment of the company experiences some changes, ASOS Plc. is affected directly and goes ahead to affect other retailing critical players in the industry (Ortega et al. 2019). The competitive landscape of the company, which is impacted by the environment, ushers in the competitive advantage of the organization. The level of profitability to the consumers of the industry is improved due to the effect of macro-environment. PESTEL analysis outlines the platform of insights into operating obstacles of ASOS Plc. It will project to the environment in which the company operates compared to competitive forces. The environment in which the industry is set determines its growth in terms of operations and financial growth. Any industry recording high profits and tremendous growth but is located in an environment experiencing political instability becomes irrelevant to ASOS Plc. For instance, the Spanish Oil Repsol experienced a high level of profits at the beginning of Argentina. The company made strong returns for an average period of 6 years before the business was pulled down by the Left-Wing government. The long period of high profits enjoyed by Spanish Oil Repsol did not have the potential to materialize the business at the end. PESTEL is analyzed below.
Political Factors that Impacts ASOS Plc.
Political factor plays an essential role in revealing the unique factors that can have long term profits to ASOS Plc. It has extended its retailing operation to many countries, which creates the venue of exposure to different political atmosphere or environment (Ortega et al. 2019). Some countries experience political instability, which becomes threatening to the operation of the business. To deter the political system risk so that excellent Retail industry to countries whose environments seem to be hostile is to diversify the risk systems of the political atmosphere. Before ASOS Plc, decides to join or invest in a specific business or market, analyzes many factors. The first analysis ASOS Plc determines the political wave of interested countries to invest in terms of retail aspects relating to the economy of the country. This helps the business to avoid being exposed to unnecessary risks, which may pull down the established business. The second analysis is based on military and associated risks from them. ASOS Plc carries out the statistics on the military of the target country and determines the possibility of being invaded. Analysis of military invasion of the retail business helps ASOS Plc by guaranteeing its business security. ASOS Plc. carries out the analysis on determining the transparency on Bureaucracy and possible interference by the government on the Retailing Company. This analysis helps the company to enter into the investment process of a particular country after gathering the political background information. Price regulation is another strategy of ASOS Plc. Analysis that is used before the industry starts investing, and this helps the company to look at any available strategy that can be incorporated in the retailing process to accommodate its customers. Customers are the elements in any business, and therefore price regulation should be carried about consumer's service. ASOS Plc, analyzes a particular country, taxation before stepping into the world of investment. ASOS Plc. also analyzes the level of tax rates imposed on the retail industry and incentives. This helps the industry to avoid entering the business blindly, which may lead to a significant loss.
Economic Factors that impact ASOS Plc.
The economic factors affect the environment in which the business operates, such as inflammation rates, the rate charged on foreign exchange, and cycle, which drives the economy of the country. These are parameters that are used to measure demand and investment aggregates in the economy. A competitive environment adds a competitive advantage to the company because it provides the platform for the company to employ quality strategies to make it outstanding to the market. ASOS Plc. may utilize various economic factors of the country like the growth rate of country population, Country's inflation, and industry economic parameters to determine the future path of the company. This analysis determines the Retail Industry growth and the level of consumption of the industry's products.
The following are the economic factors of ASOS Plc. The company should determine and analyze the type of economic approach the interested country holds in business operations (Ortega et al. 2019). This will help ASOS Plc. determine the prevailing economic system of operation and analyze its stability in the preferred country. The industry will assess its operational strength and determine whether it is capable of coping up with the economic system of the country and see the available venue to perfect the prevailing system. The second analysis ASOS Plc. is to check on foreign exchange rates and the level of stability of the currency in that particular country of investment (Strangmueller, 2018). The analysis of exchange and the value of the host currency will reveal the economic status of the country and determine the industry's trend after investment. The infrastructural stability in the Retail Industry is another analysis that should be incorporated when carrying out PESTEL analysis.
The infrastructural stability will open many venues to the Retail market hence increasing the profitability of the ASOS Plc. Poor infrastructure in the Retail industry will act as an obstacle for the economic growth of the Retail industry. Education level in the field of economy is another factor ASOS Plc. needs to combine in the system of operation when conducting PESTEL analysis (Pan, Chen, & Zhan, 2019). The high level of education system about the economy of the host country will positively influence the Retail industry primarily compared to the low education level in the economy.
Social Factor
The culture of the society within which the organization operates plays a significant role in the success of the business. The society environment detects the progress of the Retail industry because the existing beliefs and customs held by the surrounding population detect the level of ASOS Plc. marketers in understanding their clients' preference for Retail marketing. The social environment, which is accommodative, influences the Retail industry positively, but the harsh social environment may interfere with Retail industry operation (Gupta, 2013). The management of ASOS Plc. should focus on various factors when conducting PESTEL analysis. The first focus before entering the business in a particular country is that ASOS Plc. should analyze the demographic of the population and determine the level of acquired skill. The analysis will help ASOS Plc. to know their points of strength and weakness. The demographic study will reveal to the industry the target population and region of allocation. Another analysis should focus on the entrepreneurial spirit and broad perception nature of the host society. This will help the industry to know if society can motivate entrepreneurship or discourage it when the Retail business is set in that particular society. Attitudes are another critical social factor that determines the effectiveness of the prevailing environment in the Retail industry. The environmental consciousness of the host country tends to promote Retail business and, therefore, should be advocated by ASOS Plc. when carrying out PESTEL analysis.
Technological Factor
Technology plays a vital role in current business operations and is the system adopted by almost all industries. Transportation industries have experienced drastic changes in terms of technology over the last five years. Technology has created a competitive environment, and any industry that seems to neglect technology advancement is considered outdated. ASOS Plc. need not dwell only on the analysis of the technology of the industry but should stretch its neck to analyze the technology that affects interference with the organization (Ortega et al. 2019). ASOS Plc. ought to understand some technological factors before entering into business in a particular country. First, the industry should determine the impact of technology on the products offered. This will make the industry to impress the correct technological system that will improve the organizational operations. Another technical factor that should be considered is the rate in which the proposed technology can diffuse. Right technology should be flexible and accommodative to its customers.
Environmental Factors
The environmental factors that influence ASOS Plc. are parameters that influence the profitability of the organization in the prevailing market. The environmental standards vary widely from one country to another, including environmental law and liability. Before entering into investment in a particular country, the industry should carry out severe audits and analysis to determine the existing environmental standards on the market place and the guidelines in which they operate (Gupta, 2013). ASOS Plc. also should consider environmental factors such as weather factors, climatic change, existing policies on environmental pollution, recycling of waste products, and the attitude towards renewable energy before making investments.
Legal Factors
Outlined legal processes in different countries can guarantee the organizations full legal protection and support. The organization should conduct a thorough analysis of the legal process before entering into the business. The management of ASOS Plc. needs to consider the laws that cannot be trusted in the Retail industry. This analysis will help the industry to evade some possible risks that may occur. The industry should also analyze and determine discrimination laws and upheld determine the general health and safety laws.
The Technological Factors and how the ASOS Plc. a company could be affected by the selected Trend
Technological factors that provide the podium for the industry to experience technical advancement. ASOS Plc. uses technology to sell its products. The company has made excellent access to embrace modern technology in distributing products to interested clients across the world. The incorporation of technological methods in ASOS Plc. operation in Retail business has created a comprehensive platform on the global internet (Voiculet et al., .2010). This will expand the industry revenue and profit. In the selection of the Technological factor, the industry should analyze it before it is adopted because it may fail to deliver when installed inappropriately. Technology has attracted many people into the business, which has resulted in cybercrime. The technological factor is one of the frameworks marketers use to make a business decision more comprehensively. This trend may expose the industry to that risk of mishandling important information because the system is humanmade hence can be altered. This may affect the system of operation of the industry since most data may not be easily retrieved.
The Analysis of the ASOS Plc. Mission, Vision, and Objectives
The mission of ASOS Plc. is to become the world's number one destination for fashion-loving. From the mission, the industry creates the multi-platform that set to fulfill customers' desires. Quality products that keep the company at the peak are the tradition of ASOS Plc. The objective of the company is inclined to the mission of providing impeccable services. Uncompromising presentation of service delivery makes the industry measurable to the market planet. The mission, vision, and objectives of the ASOS Plc. are the clear frameworks of the organizational goals. The vision of the industry postulates the dynamic perception of the future and the strategies to achieve the mission. They are inclined to the strategy of building ethnically and environmentally sound supply as the chain to build the confidence of the customers. The strategy of preserving and promoting the brands and their products to the customers is drawn from the mission.
Conclusion
From the above analysis of the ASOS Plc. The company, the managers, need to conduct a situation before the industry enters into business or investment. A PESTLE analysis should provide the appropriate tool that should be advocated by the executive of the ASOS. The management of the industry should have complete knowledge of the company's environment based on strength, weakness, opportunities, and threats. The company requires an immense interactive approach and comprehensive coordination in different sections of organizational operation. The analysis should not be discriminative but should run across the departments, which include the finance department, marketing, operational department, and management department of the industry. The strategic planning of the industry should display competence and analyze both internal and external strategic factors to keep the organization at the peak.
Reference
Wells, John R., and Gabriel Ellsworth. "ASOS PLC." Harvard Business School Case 716-449, March 2016. (Revised May 2018.)
Strangmueller, M. (2018). A PESTEL Analysis of the company Siemens.
Gupta, A. (2013). Environment & PEST analysis: an approach to the external business environment. International Journal of Modern Social Sciences, 2(1), 34-43.
Voiculet, A., Belu, N., Parpandel, D. E., & Rizea, I. C. (2010). The impact of the external environment on an organizational development strategy.
Pan, W., Chen, L., & Zhan, W. (2019). PESTEL analysis of construction productivity enhancement strategies: A case study of three economies. Journal of Managment in Engineering, 35(1), 05018013.
Ortega, R. G., Rodríguez, M., Vázquez, M. L., & Ricardo, J. E. (2019). Pestel analysis based on neutrosophic cognitive maps and neutrosophic numbers for the sinos river basin management. Neutrosophic Sets and Systems, 26(1), 16.