This report intends to analysis the macro and internal environments and financial position of the Travis Perkins plc by conducting the PESTLE and SWOT analysis. In the beginning of this report, it introduces the mission of Travis Perkins plc. After that, this report presents the PESTLE analysis to show the company’s external environment. Then, it depicts the SWOT analysis of Travis Perkins plc to show the strengths, weaknesses, opportunities and threats of this company. It follows by the financial strategy analysis and results of Travis Perkins. The balance sheet analysis will be presented in the appendix. In conclusion, the comprehensive environments are favorable to Travis …show more content…
The political factors have negative effects on Travis Perkins plc, this part will explain it from two aspects. On one hand, as one of the largest building materials retailers in the UK, the tax policy is important for the company. The prices of the building materials are sensitive to tax policy which can affect the sales and revenues of the company (Georgeanne & Kenneth, 2012). However, on 4 January 2011, the rate of value added tax (VAT) increased from 17.5% to 20% (UK government, 2012), which will have adverse influences on the Travis Perkins plc. On the other hand, the regulation of antidumping is also an adverse factor. International trade is an important part of Travis Perkins plc, since the company relies more and more heavily on off-shore sourcing (Travis Perkins plc, 2011, p.28). The trade protectionism policy will absolutely increase the cost of import, hence, will negatively affect the company.
The economical factor is also a negative external