Environment Analysis of Fashion Industry

Environment analysis
of fashion industry

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Analyse the impact of the pandemic and explain the major forces that have shaped the
business environment of the fashion industry.............................................................................3
Business environment..................................................................................................................4
Critically assess the opportunities and challenges that these forces have presented to the key
players in the fashion industry.....................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Environmental analysis is defined as the strategic tool that help the organisations to analysis and
identify all internal as well as external factors that affects the performance of organisation.
properly analysation of environment facilitates the organisation to analyse the level of threat and
opportunities, all strategies and decisions are taken accordingly. These environmental factors
influenced business activities and functions in effective manner. Fashion industry is related to the
clothing, footwear, makeup and many other things. In this report the chosen organisation is
Marks & Spencer which is a British multinational retailer organisation founded in 1884 by the
Michael Marks and Thomas Spencer. Headquarter of respective organisation is situated in
London, England, United Kingdom which provides it products and services across the world.
78,000 employees are currently working with organisation. In this report the impacts covid-19
pandemic on fashion industry is being evaluated. PESTLE, SWOT and porters five forces model
is covered in this project report to analyse various environmental factors.
TASK
Analyse the impact of the pandemic and explain the major forces that have shaped the business
environment of the fashion industry
Impact of pandemic on fashion industry: The covid-19 pandemic affects all global
fashion industries too badly, as the government close all manufacturing plants and factories so
every organisation that is related to the fashion as well as other industries have to close their
stores and cancel all planned events in order to prevent from corona virus (Bello, 2019). The
pandemic impacts the fashion industry worldwide and the industry also face various other
challenges such as customers demand and handle all employees because they are workless in the
period of pandemic. Marks & Spencer also getting affect by the covid-19 as its productivity and
profitability is impacted by the coronavirus. The pandemic impacts on every activity of Marks &
Spencer and other organisation that are discussed below:
Production and manufacturing: In the covid-19 situation fashion brands as well as
retailers cancelled their orders and stopping to pay for orders which are placed by them before
and not taking any responsibility of their employees. Marks & Spencer faced the problem of raw
material, as the organisation imported raw material form many countries (Hiquet, Brunneder, and
Oh, 2018). So, manufacturing and production of fashionable items are get affected by covid-19.

Distribution and sales: As the result of covid-19 pandemic stores are shut down so
customers are shifted towards digital commerce and all fashion hubs start their social media
presence. Personal selling as well as distribution is affected by the pandemic. Sales of fashion
brands impacts by the corona virus. All stores are closed and every one staying at home. So,
sales suffered that affect overall profitability and performance level of organisation.
The main purpose of Marks & Spencer case study to find out the appropriate tools and
techniques for evaluating internal and external business environment effectively and identifying
major forces that affect business functions (Marks & Spencer case study,2020). The respective
organisation follows autocratic and centralised management to attain all defined goals and
objectives in desirable manner. In the period of covid-19 Marks & Spencer faces fall in profits,
sales and market share as well. As the organisation is one of leading multinational retail
company of UK so, it focuses on customer centric approach and provide better quality products
and services to its customers.
Business environment
There are various business environment factors some controllable on the other hand, some are
uncontrollable that required to change business policies accordingly. These environmental
factors affect business in positive as well as in negative manner. So, Marks & Spencer analysed
all factors in order to overcome negative impacts and enhance opportunities. Business
environment is divided into tow parts that are described below:
Micro business environment: These factors are closely associated with the organisational
operations that affects the business functioning. Marks & Spencer analysed all aspects that are
include in micro environment such as customers, suppliers, government and government,
employees and competitors. All these factors of respected business are affected by the covid-19
pandemic.
Macro business environment: Macro environment is related to the external factors that
affect the all functioning of Marks & Spencer and these are not in the control of organisation. So,
respective organisation has to formulate effective strategies accordingly in order to overcome all
negative impacts of external environment factors (Lee, Ahn and Kim, 2018). It is also known as
the PESTEL that contains all external factors are discussed below:
Political factors: These factors are related to various government interventions in
economy that includes number of government policies, political stability and instability foreign