Environmental Analysis of the Fashion Industry: A Business Report

This report provides an environmental analysis of the fashion industry, highlighting the significant pollution and challenges faced by stakeholders such as employees, customers, shareholders, and governments. It examines Burberry's response to these issues, detailing changes to its business model aimed at sustainability, including the use of organic cotton and renewable resources. The report analyzes how these changes provide Burberry with a competitive advantage, emphasizing the importance of environmental scanning, employee participation, and improved organizational performance. It also discusses the application of Porter's Five Forces and offers recommendations for the fashion industry, such as focusing on sustainable growth and fulfilling corporate social responsibility to address environmental concerns and enhance stakeholder value. This report, available on Desklib, provides insights into the fashion industry's environmental impact and corporate strategies.

Environmental
analysis of fashion
industry

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
Problems that faced by stakeholders in fashion industry.......................................................3
Critically analyse the changes in Burberry in the last few years in their business model......4
TASK 2............................................................................................................................................6
How changes give competitive advantage to the organisations.............................................6
Recommendations..................................................................................................................8
CONCLUSION................................................................................................................................9
REFERNCES:................................................................................................................................10
Books and Journals:..............................................................................................................10

INTRODUCTION
Fashion industry is the most polluted industry in the business environment. There are
many reasons that make them most polluted such as they are releases many chemicals and
hazardous substances that polluted overall environment, it creates complexities for wild life
habitats as well as for human beings (Surriadi, Raharja and Hendriyani, 2019). So it is necessary
that companies need to focus on perform their functions with socially responsible. In this
context, Burberry is undertaken to show the impact on this issue on their business policy. It is the
luxury fashion designer and retailer in England, UK. This report show that the changes that
company take because of this issue.
MAIN BODY
TASK 1
Problems that faced by stakeholders in fashion industry.
Fashion industry releases most harmful and hazardous substances. They releases due to
many reasons such as they produce garments, fibres and crops. It is identified with the help of
PESTLE analysis that fashion industry has affected by environmental factors. It is the most
polluted industry which needs to find the number of solutions (Magdy). Fast fashion is the new
trend as now companies focus on selling clothes at low prices. They are not serious about
sustainable business. Burberry needs to take action in this regard because it is not just the issue
but also it is the fundamental duty that every company need to perform in their organisation i.e.
corporate social responsibility. It is found that many stakeholders are facing problems due to this
issue. All stakeholders are mentioned below:
Employees
Employees are the important stakeholders as they are engaging with the Burberry
operations. Employees are facing problems due to pollution of fashion industry. They have to
perform their work with hazardous chemical that put in the clothes for dying, etc. So they are in
risk if the company cannot take any decision.
Customers
The ultimate goals of organisation that they provide best customers outlook so that they
can fell that their expectations are fulfilled by Burberry. But it is identified that they are unable to
meet the expectation of customers (Datsko, 2019). Customers are the important part of societies

and that's why they have a right that they live in the safe and secured environment. Due to the
pollution that releases by fashion industry they are feeling unsafe.
Shareholders
They are the persons who invest in the company so that's why it is very necessary for an
organisation that they have to perform an activity in order to increase the share market. Due to
environment factors according to PESTLE analysis it is analysed that market share of company
get decrease and that's why their shareholders face difficulties.
Governments
Government palsy a crucial role in the fashion industry as they are formulating laws that
should be following by companies. But it is identified that fashion industry is not focusing on
laws relating to environmental factors. It becomes a issue for government that they need to abide
laws by organisations. Government are setting necessary environmental laws which every
organisation should follow but it is found that fashion industry are failing to comply all laws. It
can be clearly seen from the Amount of pollution are dissolved in the environment. Government
is the important stakeholder, and companies need to make happy them because without
Government support they cannot run their business.
Critically analyse the changes in Burberry in the last few years in their business model.
Fashion industry is the most polluted industry and that's why it becomes very necessary
that they have to take some corrective measures (Stringer, Mortimer and Payne, 2020). From the
above discussion, it is found that stakeholders faced too many complexities due to unethical
behaviour of fashion industries. Due to this, Burberry takes action that they change their business
model by aiming to sustainable growth. It is very necessary for an organisation that they have to
become a social responsible business so that every stake holders feel proud that they are the part
of Burberry. It can be better understood from the below points that how company change their
business model:
 It is very important for an organisation that they have to perform social responsible
activities. In this context, Burberry sets a goal that they have to procure clothes 100%
with cotton by 2022. It assists them to become more responsiveness because it uses very
less chemicals and releases less hazardous substances.
 They are using more organic and regenerative cotton so that they can reduce pollution
from manufacturing of clothes.

 For the reduction of pollution from economy, they change their business model as not it
becomes more responsible with society (Garcia-Torres, Rey-Garcia and Albareda-Vivo,
2017). It really very helpful for all stakeholders that faced complexities due to pollution
that emit by fashion industry.
 Due to this, other organisations get inspiration from Burberry as they change their model
in order to reduce the complexities of fashion industry. It motivates and encourages
employees that they find the ways in order to sustainability.
 From above figure of Burberry, it identified that they are now more responsible by
focusing on each section of their company. They are formulating strategies in order to
become more responsible. They are accelerating with more economic empowerment with
the help of focusing on remote communities.
 They produce good with 100% renewable resources which reduces the pollution from
manufacturing of designer clothes.
 For that reason, they were got many awards such as Living wage employer, signatory in
global climate action, commitment of using 100% renewable resources.

From the above discussion, it is very clear that organisation need to focus on the
strategies which assist them to make their business sustainability. It is found that companies
found only cheap were to sell their products but this is not good for their stakeholders.
Stakeholders are the person who are engaging with their business activities and that's why
company need to perform ethical practices that cannot harm any person in their organisation. It is
analysed that there are many ways in order to make their business sustainable such as Burberry
adopt. It can be done with the help of making or formulating some strategies in order to react
more sustainable with the natural resource, they have to use scarce resources optimally so that
they can become more responsible. It is necessary for an organisation that they have to perform
their actions very well.
TASK 2
How changes give competitive advantage to the organisations.
It is identified that organisational changes is not always bad for the company as it gives
chances to organisation for competitive advantage in the market (Saravanan, 2019).
Organisational change is necessary for every company as it assists in analyse the market
effectively and efficiently. As per the present scenario in fashion industry, found that changes
essential for every company in order to make their organisation sustainable. Sustainability is the
key element for business success and growth. It can be done with the help of fulfilling social
responsibility that is CSR. Day to day pollution get rises due to fashion industry. A company that
design and manufacture fashionable clothes requires chemicals to dye clothes for changing their
colour. There are many fabrics which releases hazardous substance and chemicals. These things
are not good for the society environment. So that's why organisational change is necessary.
Burberry took a good step in order to change their model of business for focusing more on
sustainability. Apart from sustainability, there are many benefits that taken by Burberry by
changing their business model. All those benefits are mentioned below:
 Environmental scanning is very necessary for the organisation and it demands constant
environmental scanning (Stachowiak-Krzyżan and Ankiel, 2019). They are regularly
scanning their market which reduces the surprises or risk. If any new thing comes in the
market then they are able to grasp that opportunity.

 It really helpful for organisation to involve the participation of their workforce, which
assists in feeling them, that they are important for the organisation success and growth.
Involvement of employees in the decision making process is very necessary in the
organisation and they get chance to speak and show their capability. Changes only will be
possible when all employees are agreeing for adopting change.
 With the help of organisational changes, Burberry can improve their performance in
respect of organisational goals and objectives. With the help of improving performance
they get success and sustainable growth.
 It really has very helpful for organisation in order to make their organisation competitive
in the international market. It helps in rising their reputation or goodwill in the market.
They become different from other competitors.
 Every organisation need to change their business model at particular time because it is
not fixed with the life of company (Guo, Choi and Shen, 2020). It can be changed
according to the situations and timings. After pandemic situation, it becomes more
necessary for organisation should change their business model in order to become more
responsible.
From the above discussion it is very clear that companies need to change their business
model so it becomes more competitive and socially responsible. But can we better understand
with the help of porter's five forces analysis. In the model of porter's five forces, one force i.e.
competitive rivalry which gives the information of a number of competitors available in the
fashion industry. It is identified that a fashion industry becomes very competitive and that's why
they should be used for the five forces analysis in order to analyse the competition. They can
easily take competitive advantage by identifying and analysing courses in the competitive
business environment. Burberry changes the business model as now they are focusing on more
sustainable business by converting hundred percent renewable resources. Due to this, Burberry
uses 100% cotton by 2022. It shows that how they can change their model for the society
welfare. It gives a lesson to every organisation that they should change their model for self
benefit.
Now companies need to become more productive and perform their practices to get a
sustainable organisation. It is very necessary for the actual growth of organisations. As it gives
the fair competition in the market (Järvinen, 2020). Customers are able to trust on organisations

with their change of business model. It gives a support that companies are thinking about
customers taste and preferences. It really attracts customers and other important stakeholders to
engage in their company. Stakeholders are the key person who makes their business successful.
So that's why it is necessary for organisation that they should take care about stakeholders'
necessities. Sustainability is the ultimate goal of any organisation and it is the necessity of
stakeholder. It can be only achieve with the help of coordination between employees and
employers.
Recommendations.
Organisations are facing too many complexities in the fashion industry and their
stakeholders. It is necessary for them that they should take a corrective action in order to cope up
with the challenges that come. For that reason, there are some necessary suggestions which are
mentioned below:
 It is recommended to the fashion industry or organisations that you should focus on
sustainable growth of their business. That means they make a strategy in order to increase
their sales but it should be eco friendly. It is essential for the companies that it did
producer manufacture clothes with the reduction in chemicals and hazardous substance.
 It is identified that corporate social responsibility is vital for the company. So they should
fulfil corporate social responsibility through providing best quality of goods with
sustainability. Corporate social responsibility is duty of organisations that they need to
include in their operations. It is helpful for society as well as their organisation.
Companies use natural resources of societies so that's why they should give return back
some important things. So they have to provide a good environment in which they can
live with safety and security. Whereas organisations get benefit of increasing in their
reputation or goodwill in the market. It was trust and loyalty for customers.
 Company should make a strategy which is flexible in nature. That means if any changes
in environment comes in the organisation then they are able to accept all changes.
Changes are always uncertain and mandatory to adopt. So company should be prepared
their staff or employees. It is not possible for the companies that they can avoid changes
because the higher risk gets higher return. That's why companies need to accept changes
and take risk.

 Company should provide some training and development programs to their employees
for making them flexible to accept changes. Employees are the reason for organisation
success and growth. If they are not ready for accepting changes then it become useless for
organisation to make further strategies. Companies need to talk with their employees
about changes and their importance.
CONCLUSION
It can be concluded from the above discussion that now organisations need to be more
social responsible with the business environment. Business and government gets day-to-day
more complexes and difficult for companies that how they can make strategies in order to attract
and retain their customers. Fashion industry is the most complex industry because there are too
many trends which should be followed by the company. For that purpose they need to use
PESTLE analysis model. Moreover to this, Porter's five forces model is also very helpful for
identifying the competition in the market which assisted them to make strategies accordingly.
Changes are always not bad for the organisation as it helps in giving competitive advantage in
the market.

REFERNCES:
Books and Journals:
Datsko, E., 2019. Successful factors and barriers for e-commerce business within fashion
industry.
Garcia-Torres, S., Rey-Garcia, M. and Albareda-Vivo, L., 2017. Effective disclosure in the fast-
fashion industry: from sustainability reporting to action. Sustainability, 9(12), p.2256.
Guo, S., Choi, T. M. and Shen, B., 2020. Green product development under competition: A
study of the fashion apparel industry. European Journal of Operational Research,
280(2), pp.523-538.
Järvinen, J., 2020. Entrepreneurial opportunity recognition and evaluat: the role of cognitions
and resources in the textile and fashion industry.
Magdy, Y., How is the fashion industry adapting to the needs and wants of the ethical
consumer?. Seven Bridges is now in its eighth year of publication. Seven Bridges is an
academic journal where Newcastle College University Centre students can discuss what
is important to them, not only in their curriculum discipline, but also from; racism,
feminism, sustainability and equality, this platform is for the students by the students. It
is a space to share insights and current information that is relevant to us as well as the
rest of the world., p.47.
Saravanan, R., 2019. Is traditional retail moving to e-commerce in the field of the fashion
industry in India? (Doctoral dissertation).
Stachowiak-Krzyżan, M. and Ankiel, M., 2019. Behaviors of young consumers in a virtual
environment on the example of the fashion industry. Annales Universitatis Mariae
Curie-Skłodowska, sectio H–Oeconomia, 53(1).
Stringer, T., Mortimer, G. and Payne, A. R., 2020. Do ethical concerns and personal values
influence the purchase intention of fast-fashion clothing?. Journal of Fashion Marketing
and Management: An International Journal.
Surriadi, B., Raharja, S. U. J. and Hendriyani, C., 2019. Developing Customer's Engagement
Through Entrepreneurial Orientation with Damo Approach in the Omni Way (Case
Study of Veil Fashion Creative Industry in Indonesia). Review of Integrative Business
and Economics Research, 8, pp.113-121.