Week 7 EOC: RetaiL PEST

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Political-

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 regulations in the retail industry it has negative impacts because the regulations in the retail industry could easily be changed beyond the established limit and will affect the business adversely, in addition companies such as target will obtain higher costs in expenses due to the changes.

Economic-


During the period of 2011 to 2013, a change in consumer preferences in apparel is more apparent. Many underground sales of unbranded apparel are very common. It even extends to the export of these apparel to many Asian countries.Another factor that would affect the external environment of Target is the US economic growth; the rapid or slow growth may have a positive or negative impact on the business. 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.


Social Demographics-

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.

Technological-

It has been noted that apparel and fashion industry has experience a rapid technological changes over the years. This fast changes has lead to a more sophisticated, with a significant apparel and fashion items present in the present time.  To provide comfort and aesthetic value, while still being friendly to the environment, these new fashions use the latest developments of many different technologies.

Credit: http://www.ralphlauren.com/frontdoor/index.jsp