PEST Analysis for GAP Politics
Globalization has been a current trend to every industry which also includes the apparel and fashion industry in which is due to the construction of import international facilities and establishment.
It has been noted that when products are traded, regulations and policies are present. With these regulations and policies, company’s operations may be impaired. Some countries also control the entrance of foreign companies which would also affect the process of operation of these companies. Large tax implementation is one of the controls that government usually pursues. With such government control many companies are impaired and usually can not operate on those countries.
In the case of the
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If the growth is fast then consumers will have higher purchasing power, on the other hand, if the economy is very slow then it will also have an effect on the attitude towards purchasing products. Another is the low-cost destinations sourcing; it will either affect the economy positively or negatively. Positive, in the sense wherein the company will have more consumers because of the cheaper products offered. On the other hand, the local suppliers would be affected because the company prefers outsourced products. Socioeconomic
With the increasing globalization of business, society has also been more concern with the degradation of the environment and a continuous concern for the benefit of the employees. The society has call for attention to industries for social responsibility. This includes human right protection of corporate employees, consideration for the health and safety of consumers, and contribution to local communities.
And with the increasing global environmental issues that arise with the globalization, people are now increasingly aware of the effects of the continuous industrialization.
Another factor is the rise of the population of the retiree, companies such as GAP wherein it has numerous employees will have a hard time obtaining more employees, the retirement of employees is rapidly getting higher while the replacement does not increase. Technological development
Every business organization has a social responsibility in ensuring that the environment it operates in is protected. Many companies have identified that they have a major role to play in protecting the natural habitat and ensuring that business is not only about making profits. Some organizations are setting aside funds that are developed in the protection of the environment while other organizations are setting a tree-planting day as part of their annual calendar. Companies have legal and ethical responsibilities that guide the organization in making sure that the environment is taken care of. The natural resource depletion and the environmental pollution have led to conservation groups setting rules that govern the company in utilizing natural resources.
Every company has a responsibility to support the society it serves. This indicates that a company that wishes to truly thrive in a market should not just follow the business and consumer laws of the country but take an active interest in the community that it serves in each country. Today’s global market is led by companies that concern themselves with the sustainability of the company and its products, as well as the continual improvement of the
Many believe that business entities should have an ethical duty to be socially responsible, to work towards increasing its positive effects on society while decreasing its negative effects. Many organizations look for opportunities to be socially responsible while also creating shareholder wealth.
➢ Taxation – firms functioning when dealing with a different country the subject to that country’s laws and regulations.
The economy has a great impact on everything that we do as consumers. In many ways the economy determines what our choices as shoppers’ may be. Because of this, businesses are heavily impacted by the economic environment that surrounds us. In regards to Tom’s Maine which is a very popular name brand that uses all natural and organic ingredients in its products, the economic environment will definitely have an impact on how many products are sold to the consumer. When the economy is performing poorly, and the stock market plummets, this lowers the propensity for individuals to go out shopping for certain luxuries, such being choosy as to what toothpaste this person may prefer. For example, because Tom’s of Maine uses all natural
This paper will discuss the macro environment of the Kroger Company. Using the PESTEL analysis political, economic condition, sociocultural forces, technological factors, environmental forces, legal and regulatory factors will determine which of the six components of PESTEL are most relevant at present. The five forces model will decide which of the five forces is giving the company its strongest competitive pressure. The VRIN test will determine the company’s sustainable competitive advantage by examining their tangible and intangible resources. Conducting a SWOT analysis will show the company’s strengths, weaknesses, opportunities and threats will determine how the company should move forward (Bethel University,2017).
Report includes political, economic, social and technological factors. This analysis is done in order to predict the future impacts of these factors on Arcadia Group. The main points are discussed:
Firms have responsibilities to society at large by not harming the environment (polluting the air or water); producing safe products and providing a safe work environment for it’s employees and the surrounding residents.
or so many years our society has been thinking of forming new creative and innovative businesses, which would be more environmental and customer friendly. Nowadays a large number of different companies follow the social, ethical, as well as moral consequences when it comes to their decision making. One of the relatively new concepts involving economic and social concerns is Corporate Social Responsibility. Many of us apply this approach not only at work, but also in everyday life without even recognizing.
The PEST analysis helps to explain the critical factors in the organization's external environment. The factors include political, economic, social and technological. For Myer, these forces combine with the internal factors, and other external factors like competition. The Australian consumer goods retail market is worth $121 billion (IBISWorld, 2012) but is heavily fragmented. Myer is the third-largest company in the industry behind David Jones and Harvey Norman, but with $3.158 billion in sales holds just 2.6% market share (Myer 2011 Annual Report). This implies that competition is only one of many factors that can contribute to the company's results. This PEST analysis will help to identify the other major factors.
With the rapid development of social economy, the public tends to focus on the social responsibility of the company, as well as feedback to the society, rather than pay close attention to how to create interest in the company. Especially, environmental protection and human rights has became the most pressing social phenomenon. Under this
Corporate social responsibility has been one the key business buzz words of the 21st century. Consumers' discontent with the corporation has forced it to try and rectify its negative image by associating its name with good deeds. Social responsibility has become one of the corporation's most pressing issues, each company striving to outdo the next with its philanthropic image. People feel that the corporation has done great harm to both the environment and to society and that with all of its wealth and power, it should be leading the fight to save the Earth, to combat poverty and illness and etc. "Corporations are now expected to deliver the good, not just the goods; to pursue
There are conflicting expectations of the nature of a company’s responsibilities to society. However, those companies that undertake what may be termed ‘Corporate Social Responsibility’ must decide; what are the actual social responsibilities of these companies? I will present a possible paradigm. Also, I will look at the benefit to the business that employs proper management as compared the business with poor management. This research paper describes my view of corporate social responsibility and compares the social responsibilities of Delta Air Lines and Spirit
Sony Corporation’s is one of the world’s largest corporations. Sony was founded in 1946 with its headquarter in Japan. It produces a variety of products, such as consumer’s devices, gaming, and communication devices. Its invention of the portable tape recorder was the break that the company needed in order to grow and enter other markets. (Corporate Info, 2015). Corporation’s main purpose is to achieve the highest profit and to satisfy the stakeholder involved (Krishnan, 2011). This encapsulated in the concept of corporate social responsibility (CSR). In this regard, it is important to examine Sony Corporation in terms of its adaptation and implementation of their social performance. Traditional business models have allowed companies to grow and expand since the focus is on the good of the businesses to the exclusion of everything else. This selfish regard for other stakeholders have taken its toll on people and the environment, hence, the call for greater responsibility and accountability from corporations, especially those that operate in many parts of the world (Seong-Tae and Lee Sang-Yoon, 2012). In line with this, this essay will examine Sony’s Social performance regarding to the environment, employment and human right issues, and the impact on company stakeholders and society. The stakeholder in this paper will be the shareholder, consumers and the employees in whom they share their business with.
‘Corporate social responsibility’ (CSR) means that the firm has wider responsibilities in relation to objectives and people apart from the owners or shareholders (Beal and Goyen 2005). These responsibilities are achieved when the firm adapts all of its practices to ensure that it operates in ways that meet, or exceed, the ethical, legal, commercial and public expectations that society has of business. Objectives often associated with CSR include a responsibility to manage natural assets sustainably and not to pollute by chemical discharge, smell, noise, dust or other irritants; fair treatment of employees and ethical attitude towards clients. The other people include employees, customers, suppliers,