United Colours of Benneton

Introduction:

Benetton is and has been a clothing market dominant for the past three decades, it began as a small company of brothers with an idea of selling a collection of items with bright and bold colours, hence their slogan ‘United colours of Benetton’. Currently and collectively the organisation have over 6,200 stores branching out over 120 countries with large store in all of Europe’s booming capitol cities shopping district. This report is divided into two parts: the first three sections are looking at the marketing activities and performance of the company and the second half is focusing on the businesses operations management activities and the performance.

PESTEL

The PESTEL framework below looks at and analyses the unpredictable and changing environment that businesses like Benetton are put in and how it operates by identifying the factors that have the most impact on Benetton’s performance.

Political.

* Globalisation is a current factor that is present is all industries as the world nations are being more and more united due to trading laws and demand, especially in the clothing interested.

When products are interchanged and sold between countries, tax boundaries and trading regulations are always present.

* Some countries bar the amount of excess companies entering the country in order to lose money and allow the internal companies to develop.

* External Governments hold the right to change regulations at any time which can prove expensive to the company as it will obtain more higher costs in expenses due to the changes.

Economic.

* Due to the constant changing economic environment, sales in certain countries may be unpredictable and people will have less disposable income to spend on the clothes or Items that Benetton has to offer.

* By the expansion of Benetton in other countries, it may damage the local economy as it may be preventing smaller companies that are home to the nation to go out of business therefore loosing...