Constructive Action : Industry Analysis

Construct an Industry Analysis on the retail womens clothing industry (athletic clothing) Please follow the template attached. - My mission is to create a Womens Athletic Clothing line. It will be primarily for women over 5'8. Do not pay attention to the apendix section of the template I will fill that in myslef. each section must be done throughly there is not a page requirement but there must be adequate information within each section. Please ask questions before bidding this is a Masters level assignment ONLY MASTERS or higher certified person bid PEST or PESTEL analysis is a simple and effective tool used in situation analysis to identify the key external (macro environment level) forces that might affect an organization. These forces can create both opportunities and threats for an organization. Therefore, the aim of doing PEST is to: • find out the current external factors affecting an organization; • identify the external factors that may change in the future; • to exploit the changes (opportunities) or defend against them (threats) better than competitors would do. The outcome of PEST is an understanding of the overall picture surrounding the company. Figure 1. Macro environment forces affecting a firm (PEST forces including legal, environmental, ethical and demographic forces) PEST analysis is also done to assess the potential of a new market. The general rule is that the more negative forces are affecting that market the harder it is to do business in it. The difficulties that will have to be dealt with significantly reduce profit potential and the firm can simply decide not to engage in any activity in that market. In order to perform PEST (or any other variation of it) managers have to gather as much relevant information as possible about the firm’s external environment. Nowadays, most information can be found on the internet relatively easy, fast and with little cost. When the analysis is done for the first time the process may take a little longer and as a beginner you may find yourself asking “What changes do I exactly look for in politics, economic, society technology, legal or environmental?” In general you would analyze the following (all may not apply) Political Economic • Government stability and likely changes • Bureaucracy • Corruption level • Tax policy (rates and incentives) • Freedom of press • Regulation/de-regulation • Trade control • Import restrictions (quality and quantity) • Tariffs • Competition regulation • Government involvement in trade unions and agreements • Environmental Law • Education Law • Anti-trust law • Discrimination law • Copyright, patents / Intellectual property law • Consumer protection and e-commerce • Employment law • Health and safety law • Data protection law • Laws regulating environment pollution • Growth rates • Inflation rate • Interest rates • Exchange rates • Unemployment trends • Labor costs • Stage of business cycle • Credit availability • Trade flows and patterns • Level of consumers’ disposable income • Monetary policies • Fiscal policies • Price fluctuations • Stock market trends • Weather • Climate change Socio-cultural Technological • Health consciousness • Education level • Attitudes toward imported goods and services • Attitudes toward work, leisure, career and retirement • Attitudes toward product quality and customer service • Attitudes toward saving and investing • Emphasis on safety • Lifestyles • Buying habits • Religion and beliefs • Attitudes toward “green” or ecological products • Attitudes toward and support for renewable energy • Population growth rate • Immigration and emigration rates • Age distribution and life expectancy rates • Sex distribution • Average disposable income level • Social classes • Family size and structure • Minorities • Basic infrastructure level • Rate of technological change • Spending on research & development • Technology incentives • Legislation regarding technology • Technology level in your industry • Communication infrastructure • Access to newest technology • Internet infrastructure and penetration Environmental (ecological) Legal • Weather • Climate change • Laws regulating environment pollution • Air and water pollution • Recycling • Waste management • Attitudes toward “green” or ecological products • Endangered species • Attitudes toward and support for renewable energy • Anti-trust law • Discrimination law • Copyright, patents / Intellectual property law • Consumer protection and e-commerce • Employment law • Health and safety law • Data Protection Gathering information is just a first important step in doing PESTLE analysis. Once it is done, the information has to be evaluated. There are many factors changing in the external environment but not all of them are affecting or might affect an organization. Therefore, it is essential to identify which PESTLE factors represent the opportunities or threats for an organization and list only those factors in PEST analysis. This allows focusing on the most important changes that might have an impact on the company and is presented as part of your preliminary SWOT.