BUSINESS ECONOMICS

Business Economics

[Name of the Institute]

Business Economics

Introduction

Business organizations operate in different business environment, and are influenced by different forces and factors. The businesses have to develop a sustainable business, which can help in competing in the business environment. In every industry, there are several competitors competing against each other. The external as well as internal factors influence the organizations, and have both positive and negative impact. The organizations need to meet the demand of the environment and develop strategies which can help in the growth and development of the business. In the 21st Century the level of competition has increased, and this has influenced the business in many ways. The organizations have to face the threat of different environmental factors and develop their product and services according to the needs and demands of the changing world.

Part 1

In the 21st Century, organizations are not only facing threats, but they also have an opportunity to get opportunities. They have to develop different tactics to achieve these opportunities so that they can achieve a strong position in the market where it is dealing. The fashion industry has grown remarkably in the past few years. Many new competitors have entered the market, bringing in their innovative products and services. The fashion industry and its trends keep on changing with the passage of time along with the changes in demands and preferences of the people. Fashion industry produces different category of products, which includes clothes, accessories, bags, shoes and sandals, jewelry and many more. Every company operating in this industry has to produce these products and keep on bringing changes along with the changing trends. People keep on demanding for new, as they don't want to follow the same fashion for a long time (Crabb, 2011, pp. 46-65).

There are various factors which affect and have an influence on the fashion industry in different countries around the world. Every organization operating in the industry has to face these factors, and have to operate accordingly. The factors and resources include the demand and supply of products, the choice and preferences of customers, available scarce resources, culture, traditions, norms and values of people. Every community and society has its own culture, and they wear clothes and follow the fashion according to their own culture and traditions. Marks and Spencer has been catering the customers for many years, and they have been able to produce their products keeping in view the culture and tradition of people (Collis and Montgomery, 1995, pp. 118-128).

It is necessary for the management of companies to identify the needs and preferences of people, so that they can fulfill their needs accordingly. The fashion industry of UK is growing remarkably with the passage of time. New companies are entering the market increasing the level of competition. Marks and Spencer has been operating in the fashion industry for many years, and it has been able to capture a huge market. Customers prefer buying their products, as they continuously bring changes in their products along ...