I/ The Exte rnal Environment

1.1. Macro-environment 1.1.1 PESTEL First, we analyse the external environment of your business. For this, we will use the PESTEL tool, which to group the factors that constitute the environment of your business. These factors must be taken in account when things are changing. The company will move at different ways of continuing to its environment. We will do PESTEL of France, a country representative of your global market. Moreover, this country represents 67.5% of your market share.

PESTEL, in your domestic Market: France

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1.1.2 Porter’s Diamond Now, we are going to use the “Porter’s Diamond”, still on an external view. This tool suggests that there are inherent reasons why some nations are more competitive than others, and why some industries within nations are more competitive than other. This is the model of Porter’s Diamond:

Factor conditions

Demand conditions

Related and supporting Industries

Firm Strategy, Structure and rivalry Factor conditions: - France has a good location. In the middle of Europe, it’s a very open country - The French industry has a good image and a good reputation abroad, which can promote international exchanges.

Demand conditions: - Since 2006, French consumers have purchasing power increases. (+0,6% in 2008) - In 2008, household consumption expenditure slowed significantly, but resists: +0,1% in volume, after +2,4% in 2007. The rise in prices is stronger (+2,8% after +2,1%) due to the surge in prices of food and energy. The purchasing power of income grows more slowly in these conditions than in 2007, which tends to penalize consumption. To maintain consumer spending, households reduce their savings rate slightly. Supporting industries: - “Chamber of business and industry” allow encouraging research and development with a budget allocated to each sector of activity. - EuroSIMA, governmental business association, can create fund ways to help textile companies

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