Luella- •

Macro environment: PESTEL

Macroenvironment - Technological, Environmental, Legal

The technological environment is characterized by numerous developments which support organizations in increasing their operational efficiency and reducing costs. These technologies are often expensive and using them requires additional investments, but which generate a beneficial return. Advancements have been made relative to textile manufacturing and sewing, blends of new fibres, but also in terms of selling the products, such as online stores and the creation of the virtual community (Weston-Thomas).

In terms of environment, modifications occurred in the meaning of better protecting the natural habitats. This impacts the fashion industry by generating a focus and demand for clothes, shoes, bags and other accessories not made from animal leather. As a result, the environmental concerns focus on increasing the amount of synthetic leather used. This is rather challenging due to the functional limitation of synthetic fabrics, as well as the consumer's preference for animal leather.

The fashion industry subjects to the same legislation as any other economic agent. They must comply with the legislation imposed in their country, as well as that in other countries where they operate. Also, in terms of international operations, fashion designers must act in accordance with the regulations imposed by the international regulators, such as the World Trade Organization.

Microenvironemnt - Luella works with a team of talented specialists who are devoted to supporting the company reach its objectives in both creations, sales objectives and public relations. Momentarily, the designer is undergoing a process of updating its website in order to further improve its relations with the stakeholders, vital for successes (Jefkins and Yadin, 1998). The limitations of Luella come from the fact that the designer is still in the beginning of its operations and does not benefit from having a reputable and strong brand.

References

Jefkins, F., Yadin, D., 1998, Public Relations, 5th Edition, Financial Times Management

Weston-Thomas, P., Fashion Technology, Fashion History, Fashion Era, http://www.fashion-era.com/fashiontechnology.html. astaccessed on February 26, 2009