Please enable JavaScript.
Coggle requires JavaScript to display documents.
TMA 02 - PART 1 MACRO-ENVIRONMENTAL ANALYSIS STEEPLE, State of Fashion…
TMA 02 - PART 1 MACRO-ENVIRONMENTAL ANALYSIS STEEPLE
STEPS
1) Define macro environment of interest - external
2) Identify the industry (week 7 sn 1.1)
Use STEEPLE or VUCA
Activities 6.4, 6.5 and 6.7
Use Powerpoint slides
Copy & paste slides into answer as image
Discuss contents of slides in text
Conclusion
Adapt strategy & business model to address threats/opportunities in external environment
Proactive, not reactive
Operational flexibility; digitise; divest non-core assets & monitor
Plan
How to regain value?
Resilience
Other frameworks exist (VUCA) - define - which offer a better understanding - gives responses
Pandemic
Proves not all eventualities can be anticipated (3-4% growth predicted in 2019)
Stabilise core business
Sociological
Trends
Social media platforms
Under 30s population growth (double that of China by 2025)
Ethical concerns
#
#
Increase customers' utility curve
Decreased focus on brand
Price point/accessibility
Contradictory?
Diversity & inclusion
Transparency
#
Sustainability
Lifestyle: Customer convenience & proximity
Smaller local shops (70% purchases offline)
Technological
Material innovation
#
Trade - B2C attractions & innovation
Decline of wholesale
Digital uptake
Data & analytics
Pandemic emphasis
New tools & strategies across value chain
Operational agility/productivity
Artificial intelligence = personalised service & targeted advertising
AI - self-design (Nike id)
Economic
Covid 19 pandemic
Risk of recession
Average market capitalization ... dropped almost 40% first quarter 2020
Humanitarian repercussion
Unemployment
Supply chain
Difficulties in value chain
#
Monetary policy
#
Trade tensions
Global fashion industry: up to 30% contraction of revenues 2020; Luxury up to 39%
Lockdown = financial distress 80% PLCs
Bankruptcy 12-18 mths
Shakeout
M & A
Impact on highly integrated global supply chain
Consumer pessimism
Reduced spending
Prioritise essentials
E-commerce sales impacted
Unemployment risk
Bargain shopping
Environmental
Drive for sustainability
Advertising
CSR washing
#
Water consumption = water poverty
Energy emissions & climate change
Pollution & waste
Political
Geopolitical instability
USA - elections
Ethical
#
Diversity & inclusion
Low-cost sourcing/manufacturing
#
Labour practices - poverty - gender inequality
Worker H & S within value chain
Introduction
Analysis of one (macro) of 3 levels (macro, meso, organisational)
Follow analytical steps (Fahey & Narayanan, 1986)
Industry: luxury fashion
Global market
Challenges
Factors interrelated
Environment in constant flux
Legal
Lockdown rules
State of Fashion Report, 2020 USA management consulting firm McKinsey & Co Written 2019