Analysis of Micro and Macro Environmental Factors for Ted Maker

This report provides an in-depth analysis of Ted Maker, a British fashion retail company, and the environmental factors impacting its business operations. The report begins with an introduction to the fashion industry in the UK, highlighting its importance and the role of retailers. The main body of th...Read More

Report about a specific retail
company

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Environmental audit..........................................................................................................1
Micro environmental factors which might have effect on the retail fashion industry in UK.4
Major Relevant changes Within UK fashion industry...........................................................6
Industry analysis.....................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Designer fashion is considered to be an integral element as well as important part of
fashion industry. The fashion industry of UK is very much advanced and have focus on
designing and manufacturing trendy clothes. Rise in population and increase in awareness about
designer clothes has led to the generation of demands for clothes. Retailers are those who
purchased the products in bulk and sell them at higher price for earning profit. Mainly social and
economic factors in the business environment have major as well as significant impact on the
sales as well as growth of retail fashion industry. The purpose of project is to identify influence
of micro as well as macro environmental factors on the growth of retailers in fashion industry in
context of Ted Maker firm. It also has focus on analysing the relevant changes in the UK fashion
retail strategies.
MAIN BODY
1. Environmental audit
Ted Maker is recognised as the British company which is operating in fashion retail
industry. Business entity has several stores in the UK which allows company to deliver products
or services to a wide number of customers. As Ted Maker enterprise is operating in the retail
industry which is very big and consists of intense competitions, cited business venture is required
to develop effective strategies in order to maintain its sustainability Ted Maker company is also
operating its business at international level. Several external factors might have direct as well as
significant impact on the business operations. Some micro or macro environmental variables can
force an organisation to bring changes in policies, procedures, systems and practices (Pal and
Gander, 2018)
Pestle analysis is considered to be an effective tool which can be used to analyse the
impact of changes in various external environmental factors on the business operations of Ted
Maker, profitability, sales, growth, etc. (Chang and Fan, 2017).
P E S T L E
1.Political
factors:cha
1 Economic
factors: The
1
increase in
1
Technologic
1
Chan
1As Ted
Maker is
1

nges in
political
constituents
due to
Brexit has
great as
well as
major effect
on retail
industry.
Venture
capitalist
who
supports
companies
operating in
fashion
industry in
their growth
does not
want to take
any more
risks due to
political
instability
in the
nation.
Brexit also
has a great
impact on
the
economic
condition of
UK. This
variable has
direct as well
as big impact
on the
financial
performance
of TED
Maker.
the number
of ageing
people has
led to the
decline in
labour force
and rise in
cost of
human
capital. Due
to the
continuous
changes in
social trends,
preference of
customers
and cultural
diversity
have created
the major
challenges
for company
to maintain
balance in
between
demand and
supplies.
al factors:
Changes in
buying
pattern by
consumers
also have
direct effect
on sales and
revenue of
firm.
ges in laws
have direct
impact on
the business
decisions and
plans. This
factor also
has
significant
influence on
the business
practices.
participating
in several
programmes
related to
social
welfare and
business
entity is also
working with
charitable
institutions
for
minimising
the carbon
emission
which has
negative
effect on
environment
s. These
activities
have
supported the
firm in
fostering
growth and
increasing
sustainability
in highly
intense
competitive
environment(
Macchion,
Moretto and
Vinelli,
2017).
2 The big
organisatio
ns or brands
Like Ted
Maker are
facing
difficulty in
attracting
investors
and
2Increase in
prices of
clothes has
forced an
organisation
to raise the
prices of
goods.
Increase in
tax rate by
2 2.
Strategies:B
ut Ted
Maker can
deal with
issues by
making use
of online
platform for
selling
2 Strategies:
sIt is
required by
Ted Maker
to develop
understandin
g about
several laws
in the
country in
2

influencing
them to
invest.
Business
entity is
also facing
difficulty in
expanding
the business
operations
or entering
in a new
market.
This factor
has direct
as well as
significant
impact on
the sales as
well as
profitability
of firm
government
has effect on
profit margin
of company.
Inflation in
prices of
goods have a
significant
impact on
demand for
clothes.
products. As
this strategy
will help
business
entity in
increasing
sales and
profitability.
Technology
can be used
by Ted
Maker for
conducting
marketing or
promotional
activities.
which an
organisation
is planning
to expand
business.
Strategies:
It is
required by
Ted Maker
Company to
formulate
effective
strategies as
well as
follows the
regulations
created by
government
As
strategies
will help
business
entity in
increasing
sustainabilit
y in global
environmen
t
3Economic
Developmen
t of nation is
a positive
signal
because it
will further
helpful in
maintaining
financial
performance
of business
and will
contribute to
fashion retail
industry. It is
required by
the
management
team in Ted
Maker to
identify
another
source of
3 3 3
3

raising funds
or financial
assistance.
t. 4 Obtaining
funds
through
equity is an
effective
source of
gaining
funds in
order to
improve the
financial
performance.
As equity's
source of
raising funds
does not
include extra
charges or
any kind of
interest on
them (Chan,
Ngai and
Moon, 2017)
4
5
Micro enviromental factors which might have effect on the retail fashion industry in UK
There are many macro enviromental factors which might have direct as well as
significant impact on the growth of Ted maker company and also on fashion industry. Some
micro environment variables are availability of resources, demand and production of goods or
services. In addition to these employees within an organisation can force management team to
bring positive as well as drastic change at workplace. Whereas, customers, suppliers ,
distributors , investors can influence company to bring improvement in policies, plans , strategy
and practices (Paras, Pal and Ekwall,2017)
Customers- these are the important stakeholder those attitude or behaviour have direct effect on
business and also on the decision made by management team in an enterprise.
4

1. Customer needs , change in demand , taster and preference has direct as well as major
effect on the production or operational activities. As these are those people who encourage firm
to facilitate innovation and launch some goods in market. Ted maker company can successfully
operate in business in systematic manner and can increase its sales or profitability by catering to
the needs and demands of customer in the market. It is required by marketing team in an
enterprise to adopt effective marketing strategy,as this plan will help firm in promoting goods,
services and generating brand awareness. Personal selling is the best as well as considered to be
an effective marketing strategy which can be used by business entity. As by adopting the
personal selling marketing strategy, company can directly communicate with customers and can
identify their needs and demands.
Employees-These are the another important stakeholders which assist business entity in
fostering growth NAND achieving success. Workers help firm in accomplishment of business
goals.
1. Lack of sufficient human resources can create barriers in execution of several
business activities.
2. Due to absence of human resource, company can not have potential to survive in
hight competitive business environment. It is required by human resource
management team in Ted maker company to create healthy safe working
environment and formulate attractive policies for employees. As this strategy will
help an enterprise in attracting more number of employees.
Suppliers and Distributor-
1. In context of Ted maker company, as an organisation is totally depended on
suppliers for obtaining the goods that are to be delivered to customers. In such
case , delay in supplies can have direct impact on the customer services.
2. Business entity is also dependent on distribute for delivering products to
customers , as late in delivery of goods or services may lead to the high level of
client dissatisfaction which further might have negative effect on the reputation of
company.
It is required by Ted maker organisation to make improvement in op\rational as we as focus on
supply management system in order to reduce the adverse effect of micro variables on customer
services.
5

Competitors-
1.Competition in industry have direct as well as significant impact on the policies,
business plans as well as strategies designed by manager in an organisation. As competition in
industry inessential in order to support business entity in developing competitive strength and
allowing firm to remain active.
2. Competition is also important in terms of generating the demands for goods or services
(Machination, Moreton and Nellie, 2017 ).
Major Relevant changes Within UK fashion industry
In present scenario, increase in competition and continues changes in business
environment has force companies operation in retail and fashion industry to transform itself and
bring positive changes in the practices as well as business activities. Increase in competitors and
changes in strategies of competitors has force Ted maker company to reduce the price of their
goods or services and increase working effectivenesses in external as well; as external factors in
business environment has encouraged firm to make investment in technology and make use of
online system for spelling as well as promoting brands, products or services.
Trends in Retail and fashion industry.
Remaining store:
Ted maker company has bright future and wide scope of growth, but still it is required by
an enterprise to open more outlets and develop own websites. As opening more outlet will
support business entity in providing quick services or delivering products to wide number of
customers. This strategy will also help customers in accessing to the goods or services provided
by an enterprise.
Political : The political factors can be the biggest source of uncertainty for the fashion industry.
The things that has become important in retail and fashion industry is Brand authenticity and
sustainability. As per the recent changes in social factors and trends, customer in the market are
more interested in associating themselves with the company brand which have sense of purpose.
It is required by the Ted maker company to formulate transparent policies and communicate their
6

business objective to customer. As this strategy will assist business entity in gaining customer
loyalty and influencing people to buy products or services of particular brand (Iran and
Schroeder, 2017)
1. During the time of Brexit , many of the companies operating in fashion industry
were forced to make contribution to the economy in 2014. exporting and
importing fashion goods is likely to become even more difficult as new trade
agreements will have to be made in the case of a Brexit.
2. Besides the negative impact , retail fashion industry in United kingdom currently
benefits from favourable trade regulations.
3. Geopolitical instability, terrorism, Brexit, and stalled trade deals will all increase a
pervasive sense of uncertainty in the global economy which has negative impact
on the business performance of an organisation.
Economic : There has been tremendous growth in revenue earned by the companies operating in
fashion retail industry. Easily approachable or highly coveted, fashion, in all its forms, has
become one of the tower of consumerism around the world, and as a critical driver of the global
economy, the fashion industry brings in around approximately $2.3 trn in value annually.
1.The number of countries have warned that there "will be consequences" in the
case of a Brexit. United Kingdom fashion brands might be have to pay increased taxes and fees
to ship and sell their products in international market.
2. Inflation in the process of goods have lead to the decline in demand.
3. After the period of recession , the situation of employment globally has grown
better worldwide. Consumers’ buying power has increased which has lead to the
increased in demands for products nad services offered by an organisation.
Social:
1. The things that has become important in retail and fashion industry is Brand
authenticity and sustainability. As per the recent changes in social factors and
trends, customer in the market are more interested in associating themselves with
the company brand which have sense of purpose. It is required by the Ted maker
company to formulate transparent policies and communicate their business
objective to customer. As this strategy will assist business entity in gaining
7

customer loyalty and influencing people to buy products or services of particular
brand (Iran and Schroeder, 2017)
2. One of the most close effects of a Brexit is likely to be the depreciation of the
pound which have further impact on the sales as well as profitability of firm.
3. A number of changes on the socio cultural level have great impact on the way
shopping is done by consumers in the market.
Technological:
Online and offline sell- online platform will provide firm an opportunity to sell their
products or services to wide number of customers and direct communicate with client. Online
platform will help business entity in increasing sales , generating high revenue and rinsing
profitability. It also enables firm to provide great shopping experience to customers. It is required
by marketing as well as management team in Ted maker company that digital technology can
have direct as well as significant impact on the sales as well as business (Han, Herring and
Tyler, 2017)
Get personal with Artificial intelligence – This strategy is required to be adopted by Ted
maker organisation. As this is the major trend in retail industry in UK. Artificial intelligence has
enabled trailering companies in fashion industry to personalise the shopping as well as to
improve the quality of products and increase its production. Design for the Visual search is
changing the pattern which is adopted by consumers for buying products. It has become
essential for retailers to adopt the personal counter-intelligence, as this procedure will assist firm
in delivery quality services , product and good shopping experience to client. experiments with
experience: Shop in magical reality – Augmented as well as Virtual Reality are the important
factors which has played significant role in transforming the retail experience online and offline.
Advancement in working pattern , also advancement in selling as well as promotional method is
recognised as the biggest change in fashion and retail industry in UK.
1. Technology is also a very important factor affecting the growth of the fashion
retail industry. Economic process, IT, internet and increased utilization of mobile
devices for shopping all these are affecting sales, marketing and consumer
choices.
2. Technology has disrupted several things and apart from improved production and
supply chain.
8

3. Advancement in technology has also brought greater effectiveness in the sales as
well as marketing of fashionable products.
Legal :
1.Employment legislation has brought the drastic change in the human resources
practices by the company operating in fashion and retail industry.
Environmental:
1. There has been increase in intensity of competition in an industry. Companies are
adopting new strategies as well as techniques to gain market share and for maintaining their
position in the market.
Industry analysis
Porters Five model is considered to be an appropriate model which can be used for
analysing the effectiveness of fashion industry in which Ted maker company is operating.
Threats of new entrant-As fashion and retail industry is very big and required lot of investment,
there are fewer chances of new entrant in the maker. It is required by manager in Ted maker to
develop strategies in order to safeguards competitive strength.
Bargaining power of suppliers-As there are large number of suppliers in the industry and Ted
maker company is well repudiated company , the bargaining power of suppliers is low.
Management team in Ted maker should focus on maintaining strong relationship with suppliers
and building efficient supply chainsaws this will help business entity in eliminating delay in
obtaining raw material.
Bargaining power of Buyer-There is higher bargaining power, as customers in the market are
more demanding. The marketing team in Ted maker company should introduce discounts and
offers, as this strategy will help firm in attracting more number of customers.
Threat of substitute products-Terre are high chances of substitute products as there are many big
companies in industry. It is required by Ted maker organisation to become more service provider
rather than product oriented.
Rivalry among existing firm- This is very high, there is intense competition in the industry. As
Ted maker is operating business in highly competitive agribusinessmen , company may face
difficulty in maintaining quality of products as well as performance. An organisation may also
9

difficulty in concentrating on business objectives. Increase in intensity of competition has direct
impact on business performance , profit and sales. Ted maker can change product liner or enter
into new market as this strategy will help firm in reducing the effect of completion on business
(Did and Nineveh, 2017)
CONCLUSION
It has been concluded from the report that there has been major changes have taken place
in retail and fashion industry in UK. Increase in competition and increase in unique demand
customers has force company to make improvement in policies, procedure sand system.
Customers has encouraged business entity to improve quality of goods and introduce new
products in the market. Project has successfully highlighted the changes which has taken place in
fashion industry in UK.
It has been suggested to management team in Ted maker company to develop
appropriates strategies in order to maintain its sustainability in highly intents competitive
environment.
10

REFERENCES
Books and Journals
Chan, A.T., Ngai, E.W. and Moon, K.K., 2017. The effects of strategic and manufacturing
flexibilities and supply chain agility on firm performance in the fashion industry.
European Journal of Operational Research. 259(2). pp.486-499.
Pal, R. and Gander, J., 2018. Modelling environmental value: An examination of sustainable
business models within the fashion industry. Journal of Cleaner Production. 184.
pp.251-263.
Chang, S.W. and Fan, S.H., 2017. Cultivating the brand-customer relationship in Facebook fan
pages: A study of fast-fashion industry. International Journal of Retail & Distribution
Management. 45(3). pp.253-270.
Macchion, L., Moretto, A., and Vinelli, A., 2017. Improving innovation performance through
environmental practices in the fashion industry: the moderating effect of
internationalisation and the influence of collaboration. Production Planning & Control.
28(3). pp.190-201.
Paras, M.K., Pal, R. and Ekwall, D., 2017. Systematic literature review to develop a conceptual
framework for a reuse-based clothing value chain. The International Review of Retail,
Distribution and Consumer Research. pp.1-28.
Macchion, L., Moretto, A., Caniato, F., Caridi, M., Danese, P., Spina, G. and Vinelli, A., 2017.
Improving innovation performance through environmental practices in the fashion
industry: the moderating effect of internationalisation and the influence of collaboration.
Production Planning & Control. 28(3). pp.190-201.
Han, S.L.C., Henninger, C.E., and Tyler, D., 2017. Determining Effective Sustainable Fashion
Communication Strategies. In Sustainability in Fashion (pp. 127- 149). Palgrave Macmillan,
Cham.
Iran, S. and Schrader, U., 2017. Collaborative fashion consumption and its environmental
effects. Journal of Fashion Marketing and Management: An International Journal, 21(4),
pp.468-482.
Diddi, S. and Niehm, L.S., 2017. Exploring the role of values and norms towards consumers’
intentions to patronize retail apparel brands engaged in corporate social responsibility
(CSR). Fashion and Textiles. 4(1). pp.5.
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