BM461 Global Business Environment Report: Fashion Retail Analysis

This report examines the impact of global environmental changes on the fashion retail industry. It highlights the industry's significant contribution to emissions through production, transportation, and sales, and how the industry is affected by consumer preferences and rapid changes in trends. The report identifies technology and e-commerce as key drivers of change, along with resource intensity and governmental impacts. It analyzes how companies like Zara respond to these changes by prioritizing sustainability, incorporating natural fabrics, and implementing eco-efficient practices. The report also touches upon consumer behavior and the self-determination theory's role in shaping buying patterns, and references relevant academic literature to support its analysis.

Running head: GLOBAL BUSINESS ENVIRONMENT
GLOBAL BUSINESS ENVIRONMENT
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Impact of global environmental change in the fashion retail industry
As per research and analysis, it has been identified that the energy that is used in
producing, transporting, packing and selling fashion clothes and apparels contributes
significantly to its emissions footprint. The overall lifetime of the garment might contribute to
the climate impact. The global fashion companies are highly dependent on the trends and
consumer preferences as well as their need to wear latest fashionable clothes (Cataldi, Dickson
and Grover 2017). The fashion industry is highly dynamic and subject to constant changes in
trends and styles. Therefore, the companies need to respond quickly to the changes in
distribution, fashion trends, and selling of clothes. The existing fashion companies also face
competition with new entrants offering latest fashionable clothes focused on quality (Cataldi,
Dickson and Grover 2017). These differences have emerged over time with the industry.
Underlying drivers of changes in the industry
The main driver of change in the fashion industry is technology and technological
developments. There has been an increase in focus on service over product. There has been a
boom in the e-commerce fashion retail companies. Uncertainty in latest styles and designing of
the clothes are drivers for change. This has resulted in significant number of companies facing
liabilities. As the fashion retail industry is highly resource intensive both in terms of human
resources and natural resources (Garcia-Torres et al. 2017). The processing of raw materials
require vast amount of water which also contributes to the emission f greenhouse gasses leading
to climate change. Furthermore, the UK government also has negative impact on the fashion
retailers. The climate change is also proving to blow off the manufacturers trading in natural
fabrics including cotton due to different weather patterns occurring throughout the globe. The
consumers are changing their pattern of choosing clothes and apparels (Pedersen, Gwozdz and

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Hvass 2018). There has been an evolution from fast fashion to flexible fashion. Therefore the
fashion retail companies need to boost their supply and distribution channels to gain speed and
offer the products to the customers. As per the self determination theory (SDT), the ability to
make choices by the consumers plays a vital role in the wellbeing and psychological growth.
There are three basic needs of human beings include competence, autonomy and relatedness.
Likewise the consumers alter their behavior and buying patterns. These affect the retail industry.
Responses of organizations to change
In order to handle changes in the fashion industry, companies like Zara pays close
attention to sustainability by offering highly quality fashionable products and services to the
consumers. In order to combat environmental harms and impacts, the company has been able to
tactfully implement natural fabrics and make the brand more organic (Strähle and Müller 2017).
The company has incorporated various hosts of green goals making the stores eco-efficient. The
company has been implementing latest technologies and machineries to offer high quality
products and services to the consumers (Pedersen, Gwozdz and Hvass 2018). Motivation
beyond Mintzberg can be taken into consideration. The business organization considers the
behavioral factors, environmental factors, cognitive factors, and reciprocal determination.

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References
Cataldi, C., Dickson, M. and Grover, C., 2017. Slow fashion: Tailoring a strategic approach for
sustainability. In Sustainability in Fashion and Textiles (pp. 22-46). Routledge.
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.
Pedersen, E.R.G., Gwozdz, W. and Hvass, K.K., 2018. Exploring the relationship between
business model innovation, corporate sustainability, and organisational values within the fashion
industry. Journal of Business Ethics, 149(2), pp.267-284.
Strähle, J. and Müller, V., 2017. Key aspects of sustainability in fashion retail. In Green fashion
retail (pp. 7-26). Springer, Singapore.