Business Environment Analysis: Entry into China’s Fashion Luxury Retail Market – The business environment is important in identifying the feasibility and attractiveness of a market. This environment is categorised into macro and operating environment. The macro environment refers to the economic conditions, which include the political, social, environmental, technology, economics and legal factors. These factors determine how conducive an economy is to sustain a certain business. The operating environment refers to the condition of an industry.

It involves the external environment stakeholders, which include consumers, suppliers, competitors, and interest groups, and their influence to a business. When an entrepreneur plans to get into a market, it is impotent to have the necessary information about the environment of the market. This information can be obtained through PESTLE analysis, a tool for marco-environment analysis, and Porter’s Five Force Model analysis, which is used to analyse the operating environment.

This report focuses on findings solution for a business issue where an entrepreneur wants to venture into China’s luxury retail market but has limited knowledge about the market. The business environment will provide insight to inform him on how feasible the market is and help him make the right decision. Macro-environment analysis and operating environment/ industry analysis used in this project.