Multinational Company

NEXT is a multinational company. From political change can affect the oversea market. In recent time, UK exchange rate continuous fall that leads to the reduce export. Besides rise in VAT leads to reduce consuming ability. Therefore Sales of the company will face on the decline. The company can step up publicity efforts to reduce losses.

Economic effect is the important factor in external environment. The shadow of the debt crisis not receded and customers do not have more purchasing power, which leads to the economic environment not very optimistic. NEXT problems including continue difficulties in the Eurozone and its adverse effects on business confidence and the UK banking sector and Continue credit squeeze on businesses and consumers. The company can increase brand credit. Companies can give customers a clear guarantee on product quality, thereby increasing customer confidence in the company. At the same time, Clothing retailer Next said the inflationary pressure on both the company and the consumer will ease early next year, a prognosis echoed by department store chain John Lewis Partnership. (The World Source. 2012)

From social-culture to consider the NEXT, there are two main factors that are large extent the impact of the company's development. Although NEXT is a multinational company, in the UK Company occupies the largest market share. Weaker UK employment numbers will affect the main part of the company. The company needs to enhance staff training. From the company internal solve this problem. Nowadays the customer needs diverse style. They are very picky for the style and details on the clothes. Companies should continue to add blood to the design team, so that their products have been standing in front of fashion.

Consider from the technical external analysis, as the industry chain has been expended to 33 countries with huge production. There is no doubt that it is time-consuming, strenuosity and waste of capital with the company's quantitative production. It is suggest the company can realize central production, and then expanding production to reduce the production cost.

It has a great influence with external environment, the temperature will determine the variety that customers needed. At the same time, processing production pollution is a social issue of concern. The company can provide the seasonal clothing, as well as few other seasonal clothing, which may get a profit when met the customers' favorite due to the environment change. Meanwhile, the company has issues three rules to protecting the environment. First Improve energy efficiency and reduce energy use. Second Minimise waste produced and increase the quantity recycled. Third Increase the efficiency of our delivery fleet. (The Next Corporate. 2011)

In the PESTEL external analysis, each part would bring lots of influence to the company. According to the analysis, it is far