The impact of micro and macro environment forces in garments industry of bangladesh

pestel analysis of rmg sector in bangladesh

Some analysts labeled the specific areas of concern were: 1. Consequently, the profit margin is much higher for high end products.

Consequently, as an option for higher profits, fashion firms may increase price by enhancing product quality.

political factors affecting clothing industry

Growth in global economy: According to the OECD, the global economy is expected to strengthen and grow in the next few years. It means that the income inequality or unequal wealth distribution has been coming down. They have become important due to the increasing scarcity of raw materials, pollution, health hazards, carbon footprint targets set by governments to mitigate climate change, doing business in an ethical and socially responsible way etc.

The RMG sector in Bangladesh, with its poor quality and low productivity will be no match for the competitive producers.

Macro environment of business in bangladesh pdf

Real Estate Economic demand for real estate development generated by the garment industry to accommodate offices and factories of over 2, garment units deserve consideration. The 1. Nature is a big resource box. New technology creates new markets and new opportunities for businesses. Government: The Government departments make several policies viz. After just a few years, the ready-made garment industry employed more than , people. Globalization means that there is always the threat of substitute products and new entrants. They have become important due to the increasing scarcity of raw materials, pollution, health hazards, carbon footprint targets set by governments to mitigate climate change, doing business in an ethical and socially responsible way etc. An increasing demand for moderate cost cosmetics, sharee, footwear, fast food and other consumer products is also a direct result of about 1 million new consumers entering into the market with new living standard backed by increasing purchasing power. A competitor has a new, innovative product or service. GDP increased to nearly 5 percent on average over this period, leading to a modest rise in per capita income.

The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. Avoid grey areas. Does the government have a view on culture and religion?

element of micro and macro environment

People are willing to work for large organizations but expect them to become increasingly socially responsible. Some organizations will even employ public relations PR consultants to help them manage a particular event or incident.

An estimatedtonnes of fashion waste goes straight into landfill each year in U K, despite growing efforts to encourage consumers to recycle their worn and unwanted clothing [37].

The impact of micro and macro environment forces in garments industry of bangladesh

It means that the income inequality or unequal wealth distribution has been coming down. Internal environment of an organization [15,16] Thus the internal environment is the staff relationship and the functioning of internal departments such as management, finance, research and development, purchasing, Business operations and accounting. Many religions such as Christianity, Hinduism, Islam, Buddhism and some others. Thus, all the marketing activities should be designed that result in increased welfare of the society as a whole. Pest Analysis: It is very important that an organization considers its environment before beginning the marketing process. Consider the following points: 1. Micro tends to suggest small, but this can be misleading. This sector helps approach social equilibrium between men and women. People are willing to work for large organizations but expect them to become increasingly socially responsible. Companies produce products and services on the basis of their religions. Following implementation of that MOU, in both letter and spirit, the entire garment sector of Bangladesh has been declared child labor free with effect from October 31, Organizations need to be able to respond to the current and anticipated future legislation and adjust their marketing policy accordingly. Micro environment The Micro Marketing Environment includes all those factors that are closely associated with the operations of the business and influences its functioning on day to day basis. The key to the inquiry is how consumers could be encouraged to buy fewer clothes, reuse clothes and think about how best to dispose of clothes when they are no longer wanted. Since its modest beginning in the early s, the industry has contributed to the economy appreciably in terms of employment, output, and foreign exchange earnings.

Banking Sector The RMG sector has been playing role as one of the main catalyst contributing to the tremendous development of Banking and Insurance sector in our country.

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Analysis of Fashion Industry Business Environment