Pest Analysis of Textile Industry

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PEST ANALYSIS A PEST (Political, Economic, Social and Technological) analysis is a major part of the environmental scanning section of strategic management and it is used by companies during market research and strategic analysis. Using a PEST analysis helps a business to understand various macro environmental factors that they need to take into consideration when determining the decline or growth of a particular market. What does PEST stand for? Political – this refers to the ways in which the government can intervene in an economy in terms of environmental and labor laws, tariffs, trade restrictions and tax policies. It also shows how a government can influence…show more content…
PEST ANALYSIS OF TEXTILE INDUSTRY IN INDIA • Political (Legal) Aspects: An Industry will not be able to gain success, good reputation and trust if it will not consider legal and political sector as part of their strategy. Political and legal sectors include the needs of the company to follow the given policies and regulations of the government in order to be considered as legal and authorized business company. In this manner, industry should be able to consider political and legal aspects so as to show that they value the policies and regulations of the government in any of the business operations. - Tax policy - Employment laws - Political stability - Environmental regulations - Trade and tariff restrictions • Economic Aspects: It is important that apparel must also give enough attention to its economic stability. The economic goal of a certain industry is like an axis in which other objectives or goals are revolving. The economic factor involves the context in which an industry belongs, i.e. the configuration of the competition in which a company operates the active demand of the products, general economic condition of the nation or region, conditions in relation with other industries, and the situation of the resource markets. - Economic stability - Economic growth - Interest

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