External Business Environment for Footwear
External Business Environment for Footwear Business
To study the external business environment, I need to study both the Macro environment and the micro environment. In Macro environment we will do PESTEL analysis and in Micro environment I need to study our customers, competitors, suppliers, bankers, creditors and shareholders.
Macro Environment
It’s basically a framework used for scanning and analyzing business external macro environment by considering factors which include political, economic, socio-cultural, technological, legal and environmental.
1. Political Factors: A footwear business will not be able to gain success, good reputation and trust if it will not consider legal and political sector …show more content…
These all factors have a high impact on the footwear business and on analysis of the above factor it seems it has a positive impact on the future of the footwear business.
2. Economic Factors: It is important that footwear business must also give enough attention to its economic stability. The economic factor involves the context in which the industry belongs. In this factor I need to collate the data and study the economic stability, the economic growth, Interest rates, per capita income, industrial production and the current inflation rate.
GDP growth rate, interest rate and industrial production has high impact on the success of footwear business. On the other hand Inflation and per capita income has a medium impact on the footwear …show more content…
On evaluating the factor like, population growth rate and labor which has a medium impact of the footwear business but urbanization and corruption rate has high impact on the footwear business.
With increase in urbanization in India, corporate governance/business compliance is enforced on the businesses firms, steady increase in population growth rate and low labor cost, the future of the footwear business environment seems to be very positive.
4. Technological Factors: The complexities of achieving business success through increased efficiency, effectiveness, competitiveness, combined with innovative application of modern technology on the footwear industry is important for the business success.
India has good technical base, accept & adapts new innovative technologies and implement automated process for efficiency improvement clearly indicates the good potential for the footwear business.
5. Legal Factors: In the recent past, a number of legal changes have been implemented in India, such as recycling, minimum wage increase and disability discrimination, which has a direct impact on the footwear
External Business Environment for Footwear Business
To study the external business environment, I need to study both the Macro environment and the micro environment. In Macro environment we will do PESTEL analysis and in Micro environment I need to study our customers, competitors, suppliers, bankers, creditors and shareholders.
Macro Environment
It’s basically a framework used for scanning and analyzing business external macro environment by considering factors which include political, economic, socio-cultural, technological, legal and environmental.
1. Political Factors: A footwear business will not be able to gain success, good reputation and trust if it will not consider legal and political sector …show more content…
These all factors have a high impact on the footwear business and on analysis of the above factor it seems it has a positive impact on the future of the footwear business.
2. Economic Factors: It is important that footwear business must also give enough attention to its economic stability. The economic factor involves the context in which the industry belongs. In this factor I need to collate the data and study the economic stability, the economic growth, Interest rates, per capita income, industrial production and the current inflation rate.
GDP growth rate, interest rate and industrial production has high impact on the success of footwear business. On the other hand Inflation and per capita income has a medium impact on the footwear …show more content…
On evaluating the factor like, population growth rate and labor which has a medium impact of the footwear business but urbanization and corruption rate has high impact on the footwear business.
With increase in urbanization in India, corporate governance/business compliance is enforced on the businesses firms, steady increase in population growth rate and low labor cost, the future of the footwear business environment seems to be very positive.
4. Technological Factors: The complexities of achieving business success through increased efficiency, effectiveness, competitiveness, combined with innovative application of modern technology on the footwear industry is important for the business success.
India has good technical base, accept & adapts new innovative technologies and implement automated process for efficiency improvement clearly indicates the good potential for the footwear business.
5. Legal Factors: In the recent past, a number of legal changes have been implemented in India, such as recycling, minimum wage increase and disability discrimination, which has a direct impact on the footwear