Environmental Analysis of Fashion Industry

ASSESSMENT 1
Environmental Analysis
of an industry

Table of Contents
Introduction.................................................................................................................................................3
MAIN BODY..............................................................................................................................................3
PESTLE Analysis....................................................................................................................................3
Opportunities and challenges faced by fashion industry..............................................................................5
CONCLUSION...........................................................................................................................................6
REFERENCES............................................................................................................................................7

Introduction
Environmental analysis refers to the changes in the environment that can affect an
organization and reduces the working capacity of the company (Todeschini and et.al., 2017).
Burberry is a fashion house which was founded in 1865 by Thomas Burberry. Its headquarter is
in Horseferry Road, Westminster, London, UK.
MAIN BODY
PESTLE Analysis
There are many factors that can affect an organization like political , economic, social ,
technical, legal and environmental. These are some components that affect the working of an
organisation and managers should take effective steps to control theses factors. Pestle analysis is
one of the important factor that affect the organization and all the palms or strategies of the
company are failed due to these factors. Due to covid 19 all the organizations are facing problem
and they are not able to work properly (Li, Lim and Wang, 2020). During pandemic all the
companies suffer loss as they were not able to produce products and sell the products.
Environmental factors include internal and external factor which affect the company. Internal
factors are present within the organization and external factors include PESTLE analysis.
Managers of the company should make policies or plans according to the factors so that
company has to suffer less. It is difficult to handle these factors but managers can try to solve the
issues so that company can run smoothly.
Political factor - These factors include policies made by the government, political stability or
instability in interantional market, foreign trade policy , tax policy , labor law , environmental
law and trade restrictions . These are the factors which are control by the government and affect
the company . It is important for the manager to make policies or rules according to the rules
made by the government (Harris and et.al, 2018) . Tax policy keeps on changing because
government make rules which is beneficial for all. Sainsbury company also faces problem as
they are not able to sell the products in different market due to tariff barriers and trade
restrictions. In different countries rules and regulations are different so it is difficult for the
company to sell or buy products. During pandemic all the organizations face problems because
no one was buying or selling products (Gu and et.al., 2020). Political factor affect the working of
the company as there are many problems that an organization has to face. Fashion industry also
face problem as customers are not purchasing anything and manufacturers are also not making
products.
Economic factor - These factors include interest rate, economic growth, exchange rate, inflation,
disposable income of consumers and business. These can be micro and macro economic factors
which deal with the management of demand. Government use interest rate, control all the other
activities of the country which affect the working of company. Sainsbury Company face problem
as in different countries interest rates are different and if the organization want to expand its