The Tax policy of UK is one of the major external factors which have significant impact on NEXT clothing’s business (Levitt, 1960). There have been some recent changes in business tax and other taxes and the tax rate is quite higher than before. The increase in tax rate is quite responsible for the ups and downs of the business of NEXT. Some economic factors are there too. NEXT operates their business from many countries like UK, USA and many countries of Europe, Asia and they have recently launched their online business too. So, they have to accept payment in various currencies. The exchange rates between currencies of different countries are not same. The exchange rates change very frequently. This is a major factor which affects the business. The economic condition of different countries is not same and people of different countries cannot pay equal amount for the same product. So, they have to set lesser price of same product in less developed countries than more developed countries. The business of NEXT suffers a lot because of this. The trends of people of wearing different kinds of clothes have negative impacts on the business sometimes. There have been some technological changes adopted by NEXT clothing in order to improve their business and attract new customers. The technological changes affect the cost, quality of products. Some environmental factors such as change in weather, climate has impacts on the business of NEXT. People cannot visit stores in bad weather which reduces the profit. The climates of different countries are different. So, the sales of products are different in different countries. Governments of various countries are pressuring the company to use eco-friendly products which increase the costs of marketing, other costs etc. The laws of different countries are different which has impact on NEXT’s business.