FYS001-0 Assignment 2: PESTEL Analysis of the Fashion Industry Factors

This assignment presents a PESTEL analysis of the fashion industry, examining the external factors that influence its performance. The analysis includes political factors (e.g., terrorism, political tensions), economic factors (e.g., volatility, fluctuations), social factors (e.g., age, trends), technological factors (e.g., internet, online shopping), environmental factors (e.g., protection laws, environmental friendly products), and legal factors (e.g., compliance, ethics). The analysis highlights how these factors impact the fashion industry's profitability, sales, consumer choices, and operational activities. References are provided to support the analysis. The assignment brief requires students to demonstrate an understanding of social issues in a case study context, using the provided BBC article on the real price of cheap clothes. The in-class test involves answering three questions based on the case study, focusing on applying academic study skills to address the assessment tasks and demonstrate knowledge of social issues.

Project

Table of Contents
PESTEL analysis of Fashion industry.............................................................................................3
REFERENCES................................................................................................................................4

PESTEL analysis of Fashion industry
PESTEL analysis includes many factors such as Political factor, economical factor, social
factor, technological factor, environmental factor and legal factor. This analysis helps the
organisation to identifying external factor of the organisation that can impact on the
performances of company.
Political Factor
Political factor plays a crucial role to influence the fashion industry. Political factor is the
main reason to create uncertainty in the fashion industry (Fauzi and Cariawan., 2019). Terrorism
and various type of political tension can influence the performances of the company. The
political sifting create their major impacts on the profitability of the fashion organisation.
Economic factor
Economic factor has also a huge impact on the fashion industry. The economic volatility
and economic fluctuations can affect the overall sales and profit of the fashion industry.
Social factor
Social factor also have a significant role in the development and growth of the fashion
industry (Merchant and Bayraktar., 2019.). The several elements such as age, sex, education
level and trends can fluctuate and influence the sells of the company.
Technological factor
The advanced technologies and developing trends towards it, can affect the company's
performances in the market. High internet uses and online shopping can affect the marketing,
sales and consumer choices.
Environmental factor
Environment is a very important term for any industry. The various environmental
protection law will attract the customers towards the environmental friendly organisation who
use environmental friendly product, raw material and waste management system.
Legal factor
Compliance and ethics are very essential component for the sustainability development of
a fashion industry (Singh and Srivastava., 2018). Various legal compliance, environmental law
and rules can influence the operational activities of a company.

REFERENCES
Fauzi, A. and Cariawan, U., 2019. SWOT Analysis for Business Strategies: A Case of Azka
Syahrani in Muslim Fashion Industry. In The 1st Workshop on Multimedia Education, Learning,
Assessment and its Implementation in Game and Gamification in conjunction with COMDEV
2018. European Alliance for Innovation (EAI).
Merchant, A. and Bayraktar, I., 2019. The Textile & Fashion Museum of Mumbai.
Singh, S. and Srivastava, S., 2018. External Factors Affecting Indian Hand loom Industry: A
Paradigm Shift. International Journal of Business Insights & Transformation. 12(1).