LA-C AND D Mohammed Hussain
Dyson: Report on the Impacts of the external factors that impact the business. Introduction Brief:
Dyson Limited or just Dyson as it is well known for is a leading vacuum company originally a Singaporean
multinational technology company founded by James Dyson. Dyson is a technology company headquartered in
Malmesbury, England, that was founded in 1991. It is a British company that designs and manufactures a wide
range of household appliances such as air purifiers, vacuum cleaners, hand dryers, bladeless fans, hair dryers,
heaters, and lighting. Beginning with James Dyson's invention of the bagless vacuum cleaner, Dyson machines
are now found in approximately 65 countries around the world.
Pestle analysis of Internal/External factors that impact Dysons day to day operations:
Political: Political factors in the United Kingdom and other countries can have an impact on Dyson's business.
When it comes to the UK, which is Dyson's home market, political laws are very easy for Dyson or any company
to imply to, and the laws usually do not affect Dyson's business in the UK. However, the government is
expected to go through some unstable governance, trade rules, and import restrictions by the government,
which can affect the international side of any country's business, resulting in a decline in their business. In
addition to these Political developments in Europe may have an impact on the company's performance. The
European Union (EU) regulates the performance of various businesses. The company's performance may be
impacted by Britain's recent exit from the EU. Another direct external factor that can directly impact Dysons
performance is the rise in corporation tax by the government expected to rise from 19% as of 2022 to 25% in
2023 which is a big leap in reducing the profits of Dyson if the rate of the VAT is raised, they will need to
increase their selling price which may further reduce sales an example of this can be seen below. Rishi Sunak
froze corporation tax as of last year to help businesses recover from covid and the pandemic but is due to rise
as normal as of this year 1st April. Lastly an important factor that was previously covered in the above is that
the uk has left the European union of which the impact could be negative (loss of trade with EU customers) or
positive (increased trade with EU customers) (less restrictions placed on firms by EU lawmakers). And that
some industries for instance Scottish fishermen believe it will boost their market and sales. On the other hand,
UK-based companies like Dyson are concerned about losing free access to wealthy customers in France,
Germany, and many other countries.
Economical: Economic factors such as interest rates, exchange rates, and growth rates can all have an impact
on Dyson's business in different markets. For example, if a country's growth rate is high, that market is
expected to give Dyson good business as its sales increase. On the other hand, if the inflation rate in a
particular economy is high, it can reduce consumer purchasing power and thus reduce Dyson sales. Because
Dyson is a relatively high-end product, consumer purchasing power can either increase or decrease their
business in a given market. Furthermore, Dyson sees the current economic growth in various regions as a
positive development. New markets are constantly emerging in various countries. However, recessions have
continued to have a negative impact on Dyson's profitability (Blundell & Lockett, 2011), or more recently, the
cost of living has risen along with the cost of gas and electricity, implying that Dyson customers will have less
disposable income to spend on their products, and Dyson will not make as much profit. Furthermore,
manufacturing costs will rise, putting Dyson in a break-even position, unable to make a profit or a loss despite
the fact that there are still premium customers with money to spend. Alongside this inflation figures are at
7.0% currently and the Consumer Price Index for United Kingdom is 117.1 for the month of March 2022. The
inflation rate year over year is 7.0% (compared to 6.1% for the previous month). Articles that support the
above statements can be found below:
Dyson: Report on the Impacts of the external factors that impact the business. Introduction Brief:
Dyson Limited or just Dyson as it is well known for is a leading vacuum company originally a Singaporean
multinational technology company founded by James Dyson. Dyson is a technology company headquartered in
Malmesbury, England, that was founded in 1991. It is a British company that designs and manufactures a wide
range of household appliances such as air purifiers, vacuum cleaners, hand dryers, bladeless fans, hair dryers,
heaters, and lighting. Beginning with James Dyson's invention of the bagless vacuum cleaner, Dyson machines
are now found in approximately 65 countries around the world.
Pestle analysis of Internal/External factors that impact Dysons day to day operations:
Political: Political factors in the United Kingdom and other countries can have an impact on Dyson's business.
When it comes to the UK, which is Dyson's home market, political laws are very easy for Dyson or any company
to imply to, and the laws usually do not affect Dyson's business in the UK. However, the government is
expected to go through some unstable governance, trade rules, and import restrictions by the government,
which can affect the international side of any country's business, resulting in a decline in their business. In
addition to these Political developments in Europe may have an impact on the company's performance. The
European Union (EU) regulates the performance of various businesses. The company's performance may be
impacted by Britain's recent exit from the EU. Another direct external factor that can directly impact Dysons
performance is the rise in corporation tax by the government expected to rise from 19% as of 2022 to 25% in
2023 which is a big leap in reducing the profits of Dyson if the rate of the VAT is raised, they will need to
increase their selling price which may further reduce sales an example of this can be seen below. Rishi Sunak
froze corporation tax as of last year to help businesses recover from covid and the pandemic but is due to rise
as normal as of this year 1st April. Lastly an important factor that was previously covered in the above is that
the uk has left the European union of which the impact could be negative (loss of trade with EU customers) or
positive (increased trade with EU customers) (less restrictions placed on firms by EU lawmakers). And that
some industries for instance Scottish fishermen believe it will boost their market and sales. On the other hand,
UK-based companies like Dyson are concerned about losing free access to wealthy customers in France,
Germany, and many other countries.
Economical: Economic factors such as interest rates, exchange rates, and growth rates can all have an impact
on Dyson's business in different markets. For example, if a country's growth rate is high, that market is
expected to give Dyson good business as its sales increase. On the other hand, if the inflation rate in a
particular economy is high, it can reduce consumer purchasing power and thus reduce Dyson sales. Because
Dyson is a relatively high-end product, consumer purchasing power can either increase or decrease their
business in a given market. Furthermore, Dyson sees the current economic growth in various regions as a
positive development. New markets are constantly emerging in various countries. However, recessions have
continued to have a negative impact on Dyson's profitability (Blundell & Lockett, 2011), or more recently, the
cost of living has risen along with the cost of gas and electricity, implying that Dyson customers will have less
disposable income to spend on their products, and Dyson will not make as much profit. Furthermore,
manufacturing costs will rise, putting Dyson in a break-even position, unable to make a profit or a loss despite
the fact that there are still premium customers with money to spend. Alongside this inflation figures are at
7.0% currently and the Consumer Price Index for United Kingdom is 117.1 for the month of March 2022. The
inflation rate year over year is 7.0% (compared to 6.1% for the previous month). Articles that support the
above statements can be found below:
