I need some assistance with these assignment. advantages and disadvantages of topshop company Thank you in advance for the help!

I need some assistance with these assignment. advantages and disadvantages of topshop company Thank you in advance for the help! The influence of environmental factor and its effect on any company can be better analyzed by PEST analysis which is covering 4 important environmental factors namely political, social, economic and technological.

Political Factors: An overview of its investment patterns will suggest that Topshop has constantly chosen to invest in countries that have a capitalist form of government. The capitalist government helps them to use labor, capital, and fund more easily with less restriction. This is the reason why Topshop has invested mainly in Europe which is governed by capitalist systems. Recently after the change in the government policies in different countries, Topshop stated to operate in other parts of the world like the USA and China. In the USA, the company is looking to start its operation in 2014 only with its first store in Springfield Town Centre.

Economic Factors: Amongst the economic considerations, the most vital factor is inflation. In the case of high rates of inflation and the resulting increase in money supply in the economy, the prices will rise. Then the people will not be able to afford the fashionable clothes and accessories offered by Topshop. Other economic factors that must be considered by the company before investing in any country are the balance of payment situation, fiscal and monetary policies, and the counter-trade policy of that country. Low labor cost, availability of raw materials with lower price, are also important aspects before setting up new outlets and considering these factors Topshop therefore now considering the developing nations(Like India, China) to set up a there manufacturing unit to increase profit margin by reducing manufacturing cost. Social Factors: The social factors prevalent in the target market can have a major impact on the performance of a company. The social factors include the social systems, family backgrounds, education, religion, occupation and income levels of the potential consumers. Topshop while spreading their business all over Europe and afterward in other parts of the world considered this very minutely. These factors are important as they play a major role in shaping up the consumer choices, interests, attitudes and preferences for the clothing and fashion accessories offered by Topshop. Generally, people use to spend more on essential goods rather on fashionable elements. So to increase the purchase rate pricing is a factor and it has to be similar to a social standard. Apart from that, the industry must consider involving more women as an employee to diminish discrimination in society.&nbsp.

Technological Factors: In today’s world of globalization, a plethora of new and advanced technologies have evolved that have boosted the growth of businesses and helped them to gain a substantial competitive advantage over business rivals. In the retailing industry, the use of human’s creativity is more appreciable rather than technological designing. Human finishing can make products more attractive whereas technology can be used by them to reach out to more customers through internet marketing and online purchase facilities etc. Moreover, they can introduce customized designing style for the customer with the help of technology. Apart from that, with the development of by employing e-commerce Topshop can widen its consumer base by marketing its products in newer target markets. Not only that, but technological development can also help Topshop to introduce more advanced product ordering-payment mechanism, faster processing or online order, innovation in designing, and most importantly innovation in packaging system as well-for example introducing bio-degradable packaging system to ensure that company is following the environment protection law. This part can also serve as CSR for the organization.