Unit 1: Exploring Business
The Effects of the Environment on a Business
C: Examine the environment in which businesses operate
D: Examine business markets
Business' introduction:
The North Face is a renowned American outdoor recreation product company founded in 1966. They
specialise in high-performance outerwear, fleece, coats, shirts, footwear and equipment such as
backpacks, tents and sleeping bags. The brand is known for its commitment to innovation, quality
and sustainability catering to adventurers, athletes, and outdoor enthusiasts worldwide.
Their products are designed to withstand extreme conditions, making them popular among
mountaineers, hikers, and explorers. The North Face's iconic logo, inspired by Half Dome in Yosemite
National Park, symbolises their dedication to pushing boundaries and exploring the great outdoors.
Environment in which the business operates:
PESTLE analysis
P4 P5 D2
● Political: Commented [AM1]: Too generic, use specific
examples, the UK? What is the political attitude to big
business here? Positive or negative? How do they
UK is run by the government, led by the Prime Minister. Prime Minister of the UK is Keir Stramer respond/react to big business?
who is the leader of the Labour Party. At local level, councils will administer small areas of the UK.
One political attitude The North Face has is enviromental initiatives which is a positive aspect. The
North Face has been praised for its commitment to sustainability and enviromental care. Their
efforts to reduce their carbon footprint and promote eco-friendly practice resonate well with
political groups focused on enviromental issues. The North Face’s commitment to sustainability and
reducing its carbon footprint aligns well with the UK’s Green Party and other environmentally
focused political groups. Their initiatives to use responsibly sourced materials and promote eco-
friendly practices are seen positively by these factions. Another political attitude The North Face has
is inclusivity campaigns which is a positive aspect. The brand’s campaigns promoting diversity and
inclusivity, such as their Pride Month initiatives, have collected support from progressive political
groups and induvial who value social equity. Another political attitude The North Face has is backlash
from conservative groups. The North Face has faced criticism and calls for boycotts form
conservative factions, particularly in response to their LGBTQ+ inclusive campaigns. For example,
their partnership with Pattie Gona (member of the LGBTQ+) the campaign led to significant backlash
,from conservative commentators and politicians. Despite facing backlash, The North Face has
maintained its commitment to inclusivity and diversity using these values as core part of their brand
identity. This approach demonstrates resilience and a clear stance on social issues, which can
consolidate but also strengthens their brand loyalty among supportive demographics.
● Economic: The economic growth of the UK GDP grew by 0.6% from December 2024 to
February 2025. The growth is being impacted by global pressures. Inflation has gone to 2.6%
in March 2025, down from 2.8% in February. Interest rates is still 4.50%. Employment rates
was 75.1% and went to 74.6%. Government borrowing in 2024/25 financial year was £152
billion, £21 billion more than in 2023/24.
The impact on the North Face in the economic environment is consumer spending. The North Face,
as a premium outdoor brand, relies heavily on discretionary spending. Economic uncertainty and
inflation can lead to reduced consumer spending on non-essential items, impacting sales. Another
impact on the North Face is cost pressures. Higher inflation and interest rates increase operational
costs, icnluding manufacturing and logistics. This can lead to higher prices for consumers, potentially
affecting demand.
There are four main stages of the business cycle. Expansion, this phase is characterised by increasing
economic activity, rising GDP, lower unemployment and higher consumer spending. Peak, the
economy reaches its maximum output, and growth rates begin to slow down. Inflation may rise
during this stage. Recession, economic activity decreases, GDP declines, unemployment rises, and
consumer spending fails. Trough, the economy hits its lowest point, marking the end of the
contraction phase. This is followed by a recovery leading back into expansion.
Commented [AM2]: Too generic, talk about the UK
economy..what is the current situation, how is it
impacting North Face?
● Social attitudes to saving, spending and debt: There has been some recent changes in
spending and debt. More than a fifth of adults in Great Britian reported borrowing more
money or using more credit due to the increased cost of living. This trend has been rising,
with 22% reporting increased borrowing in early 2023 compared to 17% in early 2022. A
significant portion of the population does not expect to save any money in the next 12
months. In early 2023, 42% reported they didn’t expect to save, up from 36% the previous
year. The impact it has on the North Face is as consumer face higher costs for loans and
mortgages, they may become more price-sensitive, potentially affecting demand for higher-
priced products.
Social attitudes to saving is that the pandemic sparked a surge in personal savings rates, indicating a
cautious spending approach, with many prioritising savings over discretionary purchases. Social
attitudes to spending is that consumer optimism remains low, leading to cautious spending plans,
potentially affecting businesses like The North Face that rely on consumer confidence and
discretionary spending. Social attitudes to debt are that financial pressures have led to increased
borrowing and credit use, straining household budgets and reducing disposable income for non-
essential purchases among vulnerable groups. The North Face's commitment to sustainability and
, digital engagement aligns with environmentally conscious consumers, attracting them to their
consumer-centric, digital-first approach. The North Face can increase its product range to cater to
price-sensitive consumers, promote sustainability, and enhance digital marketing to maintain sales
during economic fluctuations, aligning with the UK's sustainability push. Promoting responsible
spending and educating consumers about the benefits of saving can foster long-term customer
loyalty and financial stability.
● Social responsibility requirements (environmental concerns, meat / dairy consumption):
One social responsibility requirement is environmental concerns. One example of this is
sustainable materials. The North Face is dedicated to incorporating sustainable materials
into their products. By 2025, they have an aim to have 100% of their top materials such as
polyester, cotton and nylon. Which all these materials should be sourced from recycled,
responsibly sourced renewable or regeneratively grown sources. The efforts made reduces
the environmental impact of their products and promote sustainability within the industry.
This commitment to sustainable materials not only helps reduce the environmental footprint
but also aligns with consumer demand for eco-friendly products. It enhances brand
reputation and can attract environmentally conscious customers, driving sales and loyalty.
Another meat and dairy production social responsibility requirement they have is animal welfare.
Ensuring the humane treatment of animals is a key aspect of social responsibility in meat and dairy
production. This includes providing adequate living conditions, proper nutrition, and humane
slaughter practices. High standards of animal welfare can enhance consumer trust and loyalty, as
more consumers are becoming aware of and concerned about the ethical treatment of animals. This
can also reduce the risk of negative publicity and legal issues related to animal cruelty. The North
Face’s ethical sourcing practices, such as using wool from non-mulseed sheep and down certified by
the Responsible Down Standard, reflect similar commitments to animal welfare.
● Ethical trends: One example of an ethical trend is sustainability and environmental impact.
Eco-friendly materials are one way. Brands are increasingly using recycled and sustainable
materials to reduce their environmental impact. The North Face aims to have 100% of its top
materials to be recycled, responsibly sourced, renewable, or regeneratively grown by 2025
for apparel and by 2030 for footwear and equipment. The brand is investing in innovative
materials to enhance sustainability, such as recycled fabrics and biodegradable packaging. In
addition to this another focus is greenhouse gas emissions.
Another example of an ethical trend is labour practices. This can be fair wages ensuring workers
receive a living wage is becoming a priority. As well transparency, companies are publishing detailed
supplier lists and audit results to promote ethical labour practices. The North Face ensures workers
receiving living wage is a growing priority in the industry. Despite publishing detailed lists of
suppliers involved in the final stage of production and sharing some audit findings, The North
Face has made limited progress in ensuring the payment of a living wage within its supply chain. This
transparency helps promote ethical labour practices and allows consumers to make informed
choices.
The Effects of the Environment on a Business
C: Examine the environment in which businesses operate
D: Examine business markets
Business' introduction:
The North Face is a renowned American outdoor recreation product company founded in 1966. They
specialise in high-performance outerwear, fleece, coats, shirts, footwear and equipment such as
backpacks, tents and sleeping bags. The brand is known for its commitment to innovation, quality
and sustainability catering to adventurers, athletes, and outdoor enthusiasts worldwide.
Their products are designed to withstand extreme conditions, making them popular among
mountaineers, hikers, and explorers. The North Face's iconic logo, inspired by Half Dome in Yosemite
National Park, symbolises their dedication to pushing boundaries and exploring the great outdoors.
Environment in which the business operates:
PESTLE analysis
P4 P5 D2
● Political: Commented [AM1]: Too generic, use specific
examples, the UK? What is the political attitude to big
business here? Positive or negative? How do they
UK is run by the government, led by the Prime Minister. Prime Minister of the UK is Keir Stramer respond/react to big business?
who is the leader of the Labour Party. At local level, councils will administer small areas of the UK.
One political attitude The North Face has is enviromental initiatives which is a positive aspect. The
North Face has been praised for its commitment to sustainability and enviromental care. Their
efforts to reduce their carbon footprint and promote eco-friendly practice resonate well with
political groups focused on enviromental issues. The North Face’s commitment to sustainability and
reducing its carbon footprint aligns well with the UK’s Green Party and other environmentally
focused political groups. Their initiatives to use responsibly sourced materials and promote eco-
friendly practices are seen positively by these factions. Another political attitude The North Face has
is inclusivity campaigns which is a positive aspect. The brand’s campaigns promoting diversity and
inclusivity, such as their Pride Month initiatives, have collected support from progressive political
groups and induvial who value social equity. Another political attitude The North Face has is backlash
from conservative groups. The North Face has faced criticism and calls for boycotts form
conservative factions, particularly in response to their LGBTQ+ inclusive campaigns. For example,
their partnership with Pattie Gona (member of the LGBTQ+) the campaign led to significant backlash
,from conservative commentators and politicians. Despite facing backlash, The North Face has
maintained its commitment to inclusivity and diversity using these values as core part of their brand
identity. This approach demonstrates resilience and a clear stance on social issues, which can
consolidate but also strengthens their brand loyalty among supportive demographics.
● Economic: The economic growth of the UK GDP grew by 0.6% from December 2024 to
February 2025. The growth is being impacted by global pressures. Inflation has gone to 2.6%
in March 2025, down from 2.8% in February. Interest rates is still 4.50%. Employment rates
was 75.1% and went to 74.6%. Government borrowing in 2024/25 financial year was £152
billion, £21 billion more than in 2023/24.
The impact on the North Face in the economic environment is consumer spending. The North Face,
as a premium outdoor brand, relies heavily on discretionary spending. Economic uncertainty and
inflation can lead to reduced consumer spending on non-essential items, impacting sales. Another
impact on the North Face is cost pressures. Higher inflation and interest rates increase operational
costs, icnluding manufacturing and logistics. This can lead to higher prices for consumers, potentially
affecting demand.
There are four main stages of the business cycle. Expansion, this phase is characterised by increasing
economic activity, rising GDP, lower unemployment and higher consumer spending. Peak, the
economy reaches its maximum output, and growth rates begin to slow down. Inflation may rise
during this stage. Recession, economic activity decreases, GDP declines, unemployment rises, and
consumer spending fails. Trough, the economy hits its lowest point, marking the end of the
contraction phase. This is followed by a recovery leading back into expansion.
Commented [AM2]: Too generic, talk about the UK
economy..what is the current situation, how is it
impacting North Face?
● Social attitudes to saving, spending and debt: There has been some recent changes in
spending and debt. More than a fifth of adults in Great Britian reported borrowing more
money or using more credit due to the increased cost of living. This trend has been rising,
with 22% reporting increased borrowing in early 2023 compared to 17% in early 2022. A
significant portion of the population does not expect to save any money in the next 12
months. In early 2023, 42% reported they didn’t expect to save, up from 36% the previous
year. The impact it has on the North Face is as consumer face higher costs for loans and
mortgages, they may become more price-sensitive, potentially affecting demand for higher-
priced products.
Social attitudes to saving is that the pandemic sparked a surge in personal savings rates, indicating a
cautious spending approach, with many prioritising savings over discretionary purchases. Social
attitudes to spending is that consumer optimism remains low, leading to cautious spending plans,
potentially affecting businesses like The North Face that rely on consumer confidence and
discretionary spending. Social attitudes to debt are that financial pressures have led to increased
borrowing and credit use, straining household budgets and reducing disposable income for non-
essential purchases among vulnerable groups. The North Face's commitment to sustainability and
, digital engagement aligns with environmentally conscious consumers, attracting them to their
consumer-centric, digital-first approach. The North Face can increase its product range to cater to
price-sensitive consumers, promote sustainability, and enhance digital marketing to maintain sales
during economic fluctuations, aligning with the UK's sustainability push. Promoting responsible
spending and educating consumers about the benefits of saving can foster long-term customer
loyalty and financial stability.
● Social responsibility requirements (environmental concerns, meat / dairy consumption):
One social responsibility requirement is environmental concerns. One example of this is
sustainable materials. The North Face is dedicated to incorporating sustainable materials
into their products. By 2025, they have an aim to have 100% of their top materials such as
polyester, cotton and nylon. Which all these materials should be sourced from recycled,
responsibly sourced renewable or regeneratively grown sources. The efforts made reduces
the environmental impact of their products and promote sustainability within the industry.
This commitment to sustainable materials not only helps reduce the environmental footprint
but also aligns with consumer demand for eco-friendly products. It enhances brand
reputation and can attract environmentally conscious customers, driving sales and loyalty.
Another meat and dairy production social responsibility requirement they have is animal welfare.
Ensuring the humane treatment of animals is a key aspect of social responsibility in meat and dairy
production. This includes providing adequate living conditions, proper nutrition, and humane
slaughter practices. High standards of animal welfare can enhance consumer trust and loyalty, as
more consumers are becoming aware of and concerned about the ethical treatment of animals. This
can also reduce the risk of negative publicity and legal issues related to animal cruelty. The North
Face’s ethical sourcing practices, such as using wool from non-mulseed sheep and down certified by
the Responsible Down Standard, reflect similar commitments to animal welfare.
● Ethical trends: One example of an ethical trend is sustainability and environmental impact.
Eco-friendly materials are one way. Brands are increasingly using recycled and sustainable
materials to reduce their environmental impact. The North Face aims to have 100% of its top
materials to be recycled, responsibly sourced, renewable, or regeneratively grown by 2025
for apparel and by 2030 for footwear and equipment. The brand is investing in innovative
materials to enhance sustainability, such as recycled fabrics and biodegradable packaging. In
addition to this another focus is greenhouse gas emissions.
Another example of an ethical trend is labour practices. This can be fair wages ensuring workers
receive a living wage is becoming a priority. As well transparency, companies are publishing detailed
supplier lists and audit results to promote ethical labour practices. The North Face ensures workers
receiving living wage is a growing priority in the industry. Despite publishing detailed lists of
suppliers involved in the final stage of production and sharing some audit findings, The North
Face has made limited progress in ensuring the payment of a living wage within its supply chain. This
transparency helps promote ethical labour practices and allows consumers to make informed
choices.
