Marketing Essay Example | Topics and Well Written Essays - 1500 words - 16

Marketing - Essay Example Nevertheless, the company has built a reputation with teenagers and young adults who generally flock their stores to purchase fashionable clothes of their choice. As such, these clothing apparels, which are produced and marketed internationally requires strategic decision making. For A&F to make good judgements regarding its operations, the company must primarily perceive the external factors that may affect the company’s operation that are out of its direct control (CIPD, 2008). Understanding the macro-environment aids both in the detection of possible opportunities and financial threats for and to the business respectively. In order to perceive a better view of the environment where Abercrombie and Fitch operates in, the PESTLE analysis should be used to identify risks, growth and decline, proper market positioning and possible direction for the overall improvement of the company’s product and organizational management (CIPD, 2008). PESTLE stands for Political, Economic, Sociological, Technological, Legal and Environmental (CIPD, 2008). Taking into consideration the individual elements of PESTLE as previously mentioned the Abercrombie and Fitch Management should decisively analyze the following: 1. Political – as a retail clothes company that manages outlets internationally, management at A&F must de aware of the different government regulations regarding trading policies with regards to trade restrictions and tariffs that may apply. It should also be updated with political trends, international pressure groups and inter-country relationships. 2. Economic encompasses the overseas economic trends. Taxation changes specific to product/service. The company must also be aware of interest and exchange rates on international trade and monetary issues. A study of credit availability, cost of living, economic growth and wage rates among others must be done on a