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Canadian Apparel Industry Analysis

   

Added on  2020-03-23

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Running head: MANAGEMENT DECISION MAKING 1Analysis of Canadian Apparel IndustryName of StudentName of Institution
Canadian Apparel Industry Analysis_1

MANAGEMENT DECISION MAKING 2Analysis of Canadian Apparel IndustryPESTEL ANALYSISPolitical- Canada has a system of governance that is strong, based on a federal system. It has a parliamentary system that operates within a multiparty democracy. The Cabinet runs the government together with the Prime Minister who has the responsibility of appointing them. The country offers an environment that is stable for investors with the guarantee of continued peace in the long-term. Having a politically stable neighbor is also another plus for the country when marketing the country to investors. Economic- Canada is relatively wealthy as a nation. It is ranked highly amongst the top richest nations globally. Canada is has a strong trading economy and is a member of the G-8. More than 70% of its GDP is based on the service sector and is the biggest employer in the country (Statistics Canada, 2017). The US is the largest investor in the Canadian economy and enjoys strong economic integration with it. Social- The social perspective focuses on education, income and gender issues in the country. The average income for a family is above $60,000 and shows less disparity on income when compared to the US (Statistics Canada, 2017). Education is a right which is guaranteed andthis has resulted in a population that is well educated. Women have lower incomes when compared to men.. The population is relatively young with the median age being between 25-50 years being the majority. Disposable income which is high encourages consumer spending in the country. Technological – Canada is technological developed with regards to internet, telephone connections. Production in most sectors is based on technology which is innovative. This extendsto the garment industry as well. Technological advances have positioned the country as one of
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MANAGEMENT DECISION MAKING 3the leading technical textile producers in the world. The use of e-commerce is also well developed in most sectors including the apparel industry. Environmental- There is a substantive department tasked with ensuring that the environment is protected in Canada. This includes resources such as water, flora and fauna as well as those which are renewable such as forests. The department leads compliance at the federal level and works in conjunction with provincial governments. Regulations that govern environmental standards for manufacturers are also set by the relevant department concerned. Legal- The country follows the legal system that is based on the governing law in the UK. The province of Quebec practices a different system for matters pertaining to law that is private in nature. The Supreme Court has final jurisdiction in all the legal matters in the country (Simeon & Papillon, 2006). Having strong ties with the United Kingdom, decisions made by the House of the Lords are binding in Canada. There are minor exceptions as set out by the governing law. SWOT analysisStrengths- The industry is strong in manufacturing across clothing knitting mills and clothing accessories. The specialized technical textile is used in the defense, aerospace and transportation sectors. Strong home-grown companies that have global appeal are strength of the industry and reduce reliance of foreign brands dominating the market. Such companies include Lululemon and Guess, Inc (Milstein & Co Consulting, 2008). The highly mechanized forms of production that reduce labor costs are strength of the apparel industry in Canada. Other strengths are in the design stages where the industry has shown strong innovation. The industry produces world class designs based on creativity and innovation which is functional. The manufacturing facilities are also superior and can compete with global players.
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