Industry Analysis of Fakir Apparels Limited

Industry Analysis
The readymade garment (RMG) sector plays a pivotal role in the
economy of Bangladesh, accounting for more than 83 percent of the
country's exports and contributing approximately 16 percent to the GDP,
with around 4,000 factories employing around four million workers.
Fakir Apparels LTD. doing their business with an area of 1,350,000
square feet with a total manpower of over 10,000, FAL has exported
over USD 120 million in the year 2016. The export rate of FAL has a
significant impact on the economy of Bangladesh. Apart from that the
company has created a lot of employment for the people and that helps
to reduce the unemployment.
PESTLE Analysis of FAL
PALTLE analysis is method to understand the some important factors
that has a direct and indirect influence on organizations. The PALTE
analysis of FAL is described below:
 Political: The influence of the government in RMG sector s
moderate but the labor law is strictly flowed by the RMG
Company after the incident of the Rana Plaza. Foreign buyers are
concern about the labor law and facilities during making contract
and placing order.
 Economic: The economy is poor comparing the developed
countries but still we are growing our economy by increasing our
GDP. Buyers are more interested to buy clothes from Bangladesh
for the lower cost of labor. Tax rate is also flexible for the buyers.
 Social: Bangladesh is overpopulated country that’s why it is easy
to get a worker in lower price. The health consciousness is not so
standard but in RMG sector the organizations are more concern
about the health and safely of the workers
 Technological: Technological we are not advanced that’s why
Vietnam is taking the competitive advantage and they are able to
take more order & deliver it earlier then us.
 Environmental: The environment of doing business in
Bangladesh is much easier because of the environment.
Bangladesh remains dry almost all the month. During rainy
seasons when it rains heavy, it gets thought to do all the work. But
probability of heavy rain is low.
 Legal: The laws for the employee of the privet sectors are not
imposed very strictly. But in the RMG sector the organization are
following the law about the health & safety, working hours,
minimum wage rate very strictly because of the Trade Unions and
the requirements of the foreign buyers.