Impact of Pandemic on Fashion Industry

GLOBAL BUSINESS ENVIRONMNET
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
(A) State the impact of pandemic and how several factors have shaped business environment
of fashion industry.......................................................................................................................3
(B) Critical analysis of opportunities and challenges of fashion industry and state how
business organisation faced changing business environment.....................................................6
How organisation faced changing business environment...........................................................8
CONCLUSION................................................................................................................................8
REFERENCES .............................................................................................................................10
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INTRODUCTION
Global business environment is environment in different sovereign country. The global
business environment can be classified under two categories, such as external and internal
environment. For operating a business on international level, a company must analyse their
social factors and other factors which are responsible for change in the operations of
management (Abdullah and Mansor, 2018). The main four components of global business
environment can be categorised as geographic, socio-cultural, economic, legal and political
factors. The aim of the project report is to analyse the factors which are responsible to create an
impact on the organisation during and post pandemic. This report also highlights the important
factors which states how these factors are responsible for the change in business environment
and monitor the aspects which created opportunities for business growth and several challenges
which are faced by fashion industry due to the global pandemic.
TASK
(A) State the impact of pandemic and how several factors have shaped business environment of
fashion industry
The global pandemic have created a huge impact on the sale, profits and operations of
fashion industry, the impact on the business environment can be analysed with the help of Pestle
analysis and Porter five forces.
Porter Five Forces
The porter five forces model is a technique through which a business can analyse the
competitiveness of the target market and through monitoring such factors, a business can
maximise their profits. The five forces which are analysed with the help of porter fie force
approach are:
 Suppliers potential- The suppliers hold less power or potential in the fashion industry.
The potential of suppliers increase the cost of products and services which are
manufactured by the organisation (Akhtar and Sushil, 2018). In the fashion industry,
suppliers hold less power as the company directly source their products with the help of
third manufactures who gain maximum profits from such operations. Due to the global
pandemic, fashion industry have faced big challenges which have created an negative
impact on the functioning of such business entities. As the potential of suppliers is low in
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