Pestel Analysis Clothing Company
Political Factors
• Taxes – business taxes and any other taxes that Velocity clothing must pay are mandatory and must be paid, affecting the amount of outgoings they have, variation in this may cause more or less outgoings but any changes could be quite significant.
• Wars & Conflict – Velocity Clothing use materials imported from various countries. The production of some of these materials may be in areas of instability or conflict. Such activities could affect the accessibility of these materials and the reliability of the suppliers, which in turn could affect the price of the good.
• Trading Policies – any new trading policies formed between countries could make it easier or harder for countries to trade with each other, which could be a potential issue for the accessibility of goods for Velocity Clothing. For example countries joining the EU and members of the EU can trade almost freely and very easily with eachother. See quote in Appendix point 1.1 to further back this up.
• Country Relationships/ Attitudes – Countries that have long lasting feuds or discrepancies that have not entirely been solved which could have occurred from past wars or conflicts could affect the willingness of foreign companies to trade with Velocity Clothing.
• Terrorism – This is a very real threat which exists for Velocity Clothing and can affect the price consumers pay when paying for goods or items, one way this can occur is by the increased levels of security at ports when importing and exporting goods, due to the increased risk of terrorism in recent years, this has in turn affected the price of goods. This can be explained further in the Appendix. See quote in Appendix point 1.2.
Economical Factors
• Recession - any recessions including the current one will be a contributing factor as to how well Velocity Clothing’s sales do. As people will have less disposable income or will perhaps be being slightly more vigilant with their money. A luxury good such as what Velocity
• Taxes – business taxes and any other taxes that Velocity clothing must pay are mandatory and must be paid, affecting the amount of outgoings they have, variation in this may cause more or less outgoings but any changes could be quite significant.
• Wars & Conflict – Velocity Clothing use materials imported from various countries. The production of some of these materials may be in areas of instability or conflict. Such activities could affect the accessibility of these materials and the reliability of the suppliers, which in turn could affect the price of the good.
• Trading Policies – any new trading policies formed between countries could make it easier or harder for countries to trade with each other, which could be a potential issue for the accessibility of goods for Velocity Clothing. For example countries joining the EU and members of the EU can trade almost freely and very easily with eachother. See quote in Appendix point 1.1 to further back this up.
• Country Relationships/ Attitudes – Countries that have long lasting feuds or discrepancies that have not entirely been solved which could have occurred from past wars or conflicts could affect the willingness of foreign companies to trade with Velocity Clothing.
• Terrorism – This is a very real threat which exists for Velocity Clothing and can affect the price consumers pay when paying for goods or items, one way this can occur is by the increased levels of security at ports when importing and exporting goods, due to the increased risk of terrorism in recent years, this has in turn affected the price of goods. This can be explained further in the Appendix. See quote in Appendix point 1.2.
Economical Factors
• Recession - any recessions including the current one will be a contributing factor as to how well Velocity Clothing’s sales do. As people will have less disposable income or will perhaps be being slightly more vigilant with their money. A luxury good such as what Velocity