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Topic: The Impact of Environmental Forces on
Apparel
Goods Marketing
Course Code & Title: MKT 1203-Principles of
Marketing
Prepared For:
Md. Idris Ali
Assistant Professor
Department of Business Administration
Prepared By:
Sazzat Hossain Tushar
ID: 121-258-0-45
B.Sc honours
Batch: 121 AMT-2
Date: 1-07-2015
Acknowledgement
At first we desire to express our deepest sense of gratitude of
almighty Allah.
With profound regard we gratefully acknowledge our respected
course teacher MD. IDRIS ALI
For his generous help and day to day suggestion during
preparation of this report. He is so much an inspiration and
guidance to us that we are, sort of words in expression our
gratitude.
We like to thanks specially thank our friends and many individuals
of
apparel
merchandiser
group
for
their
enthusiastic
encouragements and helps during preparation of this report by
sharing ideas regarding this subject and for their assistance in
typing proof reading this manuscript.
And finally, we thank to all of our classmates as they all were
serious while studying about the topic and prolific towards making
this assignment.
Once more time to sir, we owe more than we mention mostly for
teaching us to see the silver lining in every hard work and for
showing us the practical life and self inspiration in every work.
Executive Summary
Introduction
Objective of the study
Methodology
Limitations
Overview
Environmental forces
Problems/Challenges
Acronyms
Table of Contents
Title
page
.. 1
Acknowledgement
..2
Executive
summary
.3
Acronyms
4
Table of
contents
..5
Introduction
.6
Objective of the
study..7
Methodology
..8
Limitations
.9
Overview
.9
Environmental
forces..12
Problems
..14
Challenges
15
Recommendations
.16
Conclusion
17
References
..17
Introduction
The apparel industry is a segment within the fiber, textile, apparel, and retail
(FTAR) Complex. This FTAR complex represents a supply chain or pipeline
from design ideas through fabrication to sale to a final consumer. The
contribution of these textile and apparel industries to
The Bangladesh economy is significant when evaluated in terms of its share
of the BD gross domestic product and its related employment. Apparel,
shoes, and accessories products, sold (at the retail level) in the Bangladesh,
amount to over $129.86 billion a year (Trading economics, 2013).
Consumption of apparel only (at the wholesale level) reached more than 6.71
%on garments in 2011 (Trading economics, 2011).
The apparel market, also known as the fashion market, is always facing rapid
change therefore; the success of any business in this market depends on
how the company responds to Turbulent and volatile changes within the
2.
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Methodology
Limitations
This research has several limitations. The first limitation was availability of
data. In computer searchers, lack of data especially for the 1970s and the
1980s was a weakness of this study. In these decades the apparel industry
was not often reported in general business literature so that the researcher
was limited to apparel trade literature and any available company literature.
The second limitation was the interpretation process conducted by the
researcher. In this study, the researcher collected data and interpreted the
meaning through a particular procedure of content analysis. Although the
data analysis was based on a comprehensive literature review and a
research framework, the interpretation process was dependent on the
researchers analysis skill and ability. In consideration of this weakness, the
researcher has several working experiences in the apparel industry, course
work in qualitative study, and knowledge about the related fields (i.e.,
apparel industry, merchandising, and business). These researcher skills
reduced this potential weakness. Other weaknesses regarding the validity
and reliability of a qualitative study as previously discussed (e.g.,
generalizability of small number of sample, limited method of data analysis)
are also limitations of the study.
Overview
Apparel manufacturing industry:
Employment:
Globalization:
Globalization is defined as a set of economic and political structures and
processes deriving from the changing character of the goods and assets that
comprise the base of the international political economy in particular, the
increasing structural differentiation of those goods and assets (Cerny, 1995,
p. 596). Globalization is the concept commonly recognized as growing
international interconnectedness (Hirst & Thompson, 2003, p. 17) in terms
of increasing international trade, investment, and communications across the
nations. It has been identified with various aspects of information, finance,
industry, politics, or culture. Some researchers argued that the scope or
definition of globalization has been misinterpreted and tried to redefine its
nature and characteristics (Hirst & Thomson; Perraton, 2003; Sutcleffe &
Glyn, 2003). When globalization is applied to the area of business, many
issues emerge from the economic activity across the worlds countries.
Although various researchers have different positions and perspectives on
globalization, one common point emerges from these authors
Globalization results in increased levels of international economic activities,
especially since the
1970s.
In the apparel industry, companies from many countries have increasingly
played bigger roles in the production aspect of the business than previously
noted in the industry. Numerous issues emerged related to textile and
apparel products as they have crossed international boundaries, and many
researchers have discussed related topics. Abernathy, Dunlop, Hammond,
and Weil (2002) divided the globalization in apparel and textile industries
into old issues and new issues. Old issues include (a) the movement of
products between nations that have different levels of economic value and
its impact on product costs, (b) flow of goods mediated by changes in
international exchange rates, and (c) foreign competition with quotas and
tariffs. New issues about globalization in apparel industry are factors related
to the distribution of products, which originate from international trade.
Technology:
Technology is the physical combined with the intellectual or knowledge
processes by which materials in some form are transformed into outputs
used by another organization or subsystem within the same organization
(Hullin & Roznowski, 1985, p. 47). In a study of apparel industry, Ko et al.
(2000) stated in their QR technology study that technology can be both the
use of new equipment and the implementation of new processes. This
statement is particularly true in the apparel industry, where technologies
include new process (e.g., methods for shared information, product planning
with customer, receiving point-of-sale data) as well as new equipment (e.g.,
computers for design, automated sewing equipment) (Kincade et al., 2001).
Because technology is closely related with productivity and the associated
production costs (Lin, Kincade, & Warfield, 1994), it has always been a key
factor for competitive survival in the apparel business. Moreover, the apparel
industry has an extraordinarily complex structure; the supply chain from
production and final consumers is very long, and its products exhibit
constant changes in style, tastes, and production technologies. For this
reason, each participant of the apparel supply chain has a unique history,
business structure, and management style; and each has adopted various
types of technologies (Office of Technology Assessment, 1987).
Consumer:
Consumers exert extreme pressures on businesses through their shopping
and buying behaviors as determined by various factors (e.g., trends,
weather, media, social, political, economic environments) and through the
consumer movement (e.g., consumer advocates, consumer organizations,
consumer legislation, consumer education) (Hicks, Pride, & Powell,
1975). for any business to make profits, understanding consumer is essential
part of doing business (Peter & Olsen, 1999). Bennett (1995) defined
consumer behavior as following three things: 1. the dynamic interaction of
affect and cognition, behavior, and the environment by which human beings
conduct the exchange aspects of their lives 2. The overt actions of
consumers and 3. The behavior of the consumer or decision maker in the
market place of products and services.
Business Strategies:
Strategy or strategic management in the business world is referred to as the
overall plans and purposes dominating the companys decision making
processes and functions (Hamermesh,
1983). Christensen, Andrews, and Bower (1978) discussed several key
concepts regarding corporate strategy. First, strategy is defined as the
pattern of purposes and policies defining the company and its business
(Christensen et al., 1978, p. 131). This strategy can be deduced from
examining the companys behavior including their pattern, purposes, and
policies. Second, there are four components of strategic choice that a
company should consider: environmental opportunity and threat; a
companys resources and their strength and weakness; personal values,
aspirations, and ideals; and expectations of society. Third, to implement
strategies, a company must consider their resources including organizational
structure, organizational processes and behavior, and the personal
leadership.
Environmental forces
In environmental forces there are
1. Micro environment
2. Macro environment
Micro environment:
The suppliers: Suppliers can control the success of the business when
they hold the power. The supplier holds the power when they are the
only or the largest supplier of their goods; the buyer is not vital to the
suppliers business; the suppliers product is a core part of the buyers
finished product and/or business.
The competition: Those who sell same or similar products and services
as your organization are your market competition, and they way they
sell needs to be taken into account. How does their price and product
differentiation impact you? How can you leverage this to reap better
results and get ahead of them?
The general public: Your organization has a duty to satisfy the public.
Any actions of your company must be considered from the angle of the
general public and how they are affected. The public have the power to
help you reach your goals; just as they can also prevent you from
achieving them.
Macro environment:
Social and cultural forces: The impact the products and services your
organizations brings to market have on society must be considered.
Any elements of the production process or any products/services that
are harmful to society should be eliminated to show your organization
is taking social responsibility. A recent example of this is the
environment and how many sectors are being forced to review their
products and services in order to become more environmentally
friendly.
Problems
This compendium provides a comprehensive overview of marketing issues
related to environmental protection and pollution prevention. It is organized
around these eight topics:
Current business trends in environmental strategies
The relationship between product manufacturing, packaging
and environmental marketing
Consumers attitudes and willingness to pay for
environmentally sensitive products
Trends in advertising and marketing of environmentally
conscious products
Strategic approaches to marketing green products
Challenges
Finding Resources:
The Resource List will help you choose relevant publications (both written
and electronic) for yourself and your students. It includes information on
obtaining case studies and other materials not usually found in college
libraries. (Note that most of the readings used in this compendiums syllabi
are cited in the Resource List.) From there, use the descriptions in the
Planning Courses:
This compendium includes recent syllabi for two environmental marketing
courses. Santa Clara
University professor Gail Kirby outlines an undergraduate business course
with 30 meetings under a quarter systems; I describe an MBA-level elective
course within a module system of 7-week courses. Besides being adapted
by professors who are introducing one or two topics into traditional
marketing courses, these syllabi can also serve as models for business
faculty developing entire new courses with environmental themes; the table
below suggests several environmental topics to use within existing courses.
Dr. Kirby and I are both willing to assist colleagues who are developing
courses on this topic. Other faculties who have taught similar courses and
are good contacts for current cases or readings include Betty Diener (UMass
Boston), Donald Fuller (University of Central Florida), Thomas Klein
(University of Toledo), and Michael Jay Polonsky (University of Newcastle);
to learn how to contact them, see the Resource List. Another source for
developing new syllabi is the Management Institute for Environment and
Business Teaching Module series (1996; ISBN 1-56973-119-5) its Marketing
and the Environment section was edited by Dr. Diener.
Recommendations
This study was designed to explore the business environment and general
business strategies of the BD apparel manufacturing industry from 1990 to
2013 and to investigate the specific business strategies for selected major
BD apparel manufacturing companies in response to the environment from
1990 to 2013. Based on the current study, a number of recommendations
are made for future studies. First, this study employed a qualitative method
using content analysis and case studies. With limited previous research on
the BD apparel industry, the researcher concluded that it was more
appropriate to use a theoretical approach at this point than an empirical
approach in exploring the two main issues (i.e., business environment,
business strategy) as applicable to the time frame from 1990 to 2013. With
the conclusion of this study, a quantitative study using a large sample of
apparel companies could be also conducted. Research using more samples in
various industry groups besides the two major companies studied in the
current study could provide a more comprehensive and inclusive perspective
of the BD apparel industry.
Second, this study explored the issues of environmental factors and business
strategies in a historical context. Based on the result of this study, a crosssectional study at a point in time to investigate the same or similar issues
more deeply could be conducted. In particular a study with a survey using
the variables identified in Figure 25 could be made.
Conclusion
References
http://www.tradingeconomics.com/bangladesh/gdp-growth
http://blog.oxfordcollegeofmarketing.com/2014/11/04/the-impact-of-microand-macro-environment-factors-on-marketing/