Question

write a maximum of 600 words on how macro business environment would be applied to any industry of your choice. Some questions to consider are: How would the chosen industry be affected by a change of government in Canada? What about a recession? What social trends might affect the industry amd how?

Answer 1

How macro business environment would be applied to any industry?

Answer-

Industry- Cloths Manufacturing.

                First of all understand what is macro business environment, this is an external environment for the industry, which is uncontrollable and unpredictable to control the element or factor which could affect the industry either in positive or negative way. Few elements of macro environments are Government policies, political environment, laws & regulations applicable to the industry, social culture and technological changes etc.

Now understand each element in clothing manufacturing industry-

1) Government policies- This is crucial element for business environment. This includes the manufacturing tax, income tax and import-export tax etc. On the basis of these elements, industry can get multinational growth or can be limited to the certain geographical area.

2) Political environments- This is the main factor for a stable business industry as to having stable government which not gets frequently changes and helps in growth of an industry.

3) Laws & regulations- Which state laws & regulations are applicable to clothing manufacturing industry is very important factor. A stringent laws and regulation can implements hardness on the industry and vice-versa.

4) Social cultures- Social culture does have more emphasis on clothing manufacturing industry. As what the society wants and what needs to be manufactured? The values of society play important role for the industry.

5) Technological changes- In this technological era, an industry can not separate itself from these rapid technological changes. Technological changes have effect on industries on broader level.

Change of government in Canada, can have huge impact on clothing manufacturing industry. If Canada government has such policies on clothing industry which can make differences like cheap labours in developing countries then import of clothing will increase and domestic clothing manufacturing will be in stress which is a negative signal for clothing manufacturing industry.

What about a recession?-

Subsequently, if government is not taking appropriate measurement for clothing manufacturing industry, like ease of doing business and relief in taxes and deduction on establishment of company that would lead to recession in the clothing manufacturing industry. Government should take measures and make policies for the clothing manufacturers to grow this industry.

What social trends might affect the industry and how?-

Social trend and technological changes can be combined as both are interconnected. If social cultures are getting changes and having different fashion trend. Which are prevailing in other parts of the world? However clothing manufacturing industry has to rethink and needs to changes accordingly otherwise they will have to face huge impact. They have to think what to manufactured? What trend fashion in society. How it is getting changes? How are the demands and supply in the market?

In this rapid technologies growth, social trends get changes as whole world in connected and society adopts new changes. The clothing manufacturing industry must have survey on time to time basis for social trends and manufacture as per the need of society accordingly.

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