European Union and Stricter Environmental Protection

blighter Analysis This analysis is a motorsaving tool to take a ne arer look at the general environment. Although the curse analysis rely on former(prenominal) events and experience, it can be used as a forecast of the future (Wilson and Gilligan, 1998). semipolitical factors The political environment is wakeless. The government is lasting and reliable, even if Britain fails to achieve total cartel with some EU policies from term to time. At the present no EU holdives are known which will have a direct effect on the UK attire retail industry in the set about future.Due to the EU membership a inclination can be seen towards stricter environmental justification legislation. This whitethorn have a direct or indirect effect on succeeding(a) or his suppliers. Economic factors feel at the scotch environment, it is somewhat satiny since on the one hand in that location is the strong sterling compared to the Euro. Euroland encourages imports and endeavours to hold dom esticated prices at an seductive level. But on the new(prenominal) hand it is difficult for the UK to be competitive out of doors its boundaries because of the high drill in sterling exchange rate against the Euro.As NEXT sells about 96% in the UK marketplace, this may currently only have a limited effect, but could be to a greater extent important in the future when thinking globally. Fig. 2 This can also be seen on the Big Mac pass over Rates table, where hamburgers sold in the UK are more expensive than in some other countries. So an investment outside the UK might be very attractive also speaking of reimports to transfer the goods lynchpin into the domestic market. Source see Chapter 7 A nonher national is the falling unemployment rate. For the UK state this is good news but for companies give care NEXT, this has different implications.For NEXT it center higher(prenominal) expenditure on wages, as salutary as greater difficulties in recruiting good employees. Soci al factors Speaking of the socio-cultural future it should be mentioned that mickle retire earlier these days, as well as working shorter hours. just working hours per week have lessen over the last 20 years. As a result many people have more spare time. This means they have time to compare prices in the High Street and the quality of goods and function from retailers. But as a result, they flatten more time in the shops.Another outcome these days are the Green environmental issues. Because people have more time and have ample access to the media via the TV, radio, as well as newspapers and the Internet, the consumer is better certain and therefore this awareness of environmental issues challenges him to care. He wants more than just a product. He is interested in the production process. He wants to know if the factories are environmentally accessible or not, where his product was build and below which circumstances etc. etc. So one problem in the costume retail sector cou ld be churl labour.There are companies who rely on it in order to be competitive in their domestic market, for example mark and Spencer. Marks & Spencer had been accused of using child labour in Indonesia in 1999. But erstwhile the customers becomes aware of such practices, companies get into touchable trouble if they do not oppose immediately. Consumers who are looking for a scoop price purchase, may however not be prepared to consider the economic price which their social conscience inflicts on those companies whose products offends their ethics and which they consequently shun.Technological factors Another issue is the speed of technological transfers which also has an tinct on the industry it is not like with the fast growing internet job but nevertheless it is important. New technology allows new products to be developed, e. g. Lycra, Supplex or other synthetic material. Existing materials can be produced quicker and cheaper. Adopting these technologies can be a dec is ive factor as to whether a accompany is ahead of his competitors or whether it lags behind.