An Organizations Performance and Macro-environmental Factors Essay

An Organizations Performance and Macro-environmental Factors - Essay Example The macro-environment of a business is understood through assessing the four factors, a process regarded as the PEST (Political, Economical, Social, and Technological) analysis (Thompson, 2002). This paper is a critique of Abercrombie and Fitch, which is a retail organization dealing with textile products such as men and women wear. It presents a PEST analysis as well as a competitive audit of the organization, with GAP Inc. Tommy Hilfiger Corporation and Urban Outfitters as the main competitors. The paper also presents an analysis of the threat of new entrants, the power of buyers, substitute products, bargaining power of suppliers and competitive rivalry, as well as an internal analysis of the organization. It highlights primary support services, as well as a SWOT analysis the firm. The organization has been faced with political influences although they have not affected its productivity. It operates under the UK employment laws that protect the rights of all people who have attained the age of employment. The organization has been faced with various cases involving individuals who feel that they have been marginalized in employment opportunities. Discrimination of potential employees can have negative impacts on the organization. Moreover, there are laws that protect consumers from unscrupulous businessmen, which are meant to prevent low-quality products from entering the UK market. However, the organization is not affected by government influence since its products are of high quality and it also adheres to the required quality. Employees are hired according to merit and therefore there are no cases. The organization has not fallen victim of terrorist activities or military  invasion since the UK is a politically stable nation (James, 1998). The organization operates under the protection of the WTO and it has experienced a steady growth.