Dcvtm - Cim Professional Diploma
1.1 Political * Increase in business rates affect stores * International trade rules dictate who can be traded with * Current economic climate affecting EU * Cheaper labour through back to work scheme * Minimum wage rise will equal higher staff costs | 1.2 Economic * UK has been in a recession since 2009 * Economic downturn, high inflation and slump in spending equal a drop in profits * Retail closures and continued online boom * Reduced availability of loans to businesses * PDI (personal disposable income) is at its lowest since the slump in the 90’s – reduction in ‘luxury’ purchases * Rising raw materials (inc. fruit) and staffing costs | 1.3 Social / Cultural * People are time-poor and need things more quickly/easily * Commerce is continuing to shift online * Consumers are more environmentally aware and ethical trading is now expected * Views on using cheap labour * Cultural attitudes (e.g. attitude to bathing in UK Vs. India) | 1.4 Technological * Increased access to the internet and to ‘social recommendations’ * Services and products can be offered globally thanks to the internet * Boom in Smartphone usage and increased access to Wi-Fi means that commerce is expected to be 24/7 – the sensory experience is lost as High Street declines * Advancement in production techniques and transport lead to efficiencies and a more effective supply chain * New technologies enabling alternative marcomms (e.g. Sensory) | 1.5 Legal / Regulatory * Environmental laws for manufacturing * Health & Safety laws * Developments in consumer law * Global trade agreements/restrictions * Laws on product testing | 1.6 Environmental * Climate change affecting farming and the production of raw materials * Growing pressure to become more eco-friendly - openness about environmental views and policies is expected (Lush are at the forefront here but don’t necessarily communicate this effectively * Fairtrade trademark