To: Gertrude Huang
From: CPA
Re: Mod Threads Apparel Ltd. (MT)
1. PESTEL Analysis
As per requested, below is the PESTEL analysis to present to the board of directors
Political:
Canadian government has proposed in
...
To: Gertrude Huang
From: CPA
Re: Mod Threads Apparel Ltd. (MT)
1. PESTEL Analysis
As per requested, below is the PESTEL analysis to present to the board of directors
Political:
Canadian government has proposed increased tariffs on imported goods from non
NAFTA countries such as Bangladesh. This means that there is a chance that cost will
increase for MT affect overall net income
Ontario government is considering increasing corporate taxes. This means that MT
will have increased taxes to pay on their income. The higher the income, the higher
the taxes. MT should consult their accountant to see if they can use any tax savings
for medium size businesses.
Economic:
Domestic apparel manufacturing industry is expected to decline as production is
transferred overseas as labour costs are lower. This means that MT will struggle with
production costs because most companies are producing goods in countries with
cheaper labour to make their product price attractive and at the same time earn a
profit. Whereas if MT is producing in its home country, then they have to abide to
higher labour costs which will decrease their net income
Social:
Social media influencers review clothing via social media has impacted consumer
preferences. This means that MT needs to use the social media platform to advertise
its clothing with good reviews to increase customer base. They can partner up with
various bloggers who can use their clothes and market them to their own audience on
social media
Popular influencer posted negative reviews about quality of MT’s latest collection
when the pants purchased were destroyed in the first wash. This will display MT’s
products in negative light because the audience can see that MT products are not good
quality. Such review will decrease the revenue as less people will want to purchase
MT’s products.
Technological:
Adopting automation and new technological in supply chains. This will allow MT to
speedup their production and have more inventory available for sale to the customers.
Use technology to produce high quality 3D images of finished products during design
stage. This means that MT can produce high quality products for its consumers and
get counter the n
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