For this PEST analysis I will be analyzing the apparel manufacturing industry (NAICS code # 315) within the united states. In particular I will be going in-depth on the U.S industry comprised of establishments primarily engaged in manufacturing of men's, womenÐ²Ð‚â„¢s, boys' and girlÐ²Ð‚â„¢s jeans, dungarees, other separate trousers, jean jackets, and shorts from purchased fabric.
Political factors can have a direct impact on the way business operates. Decisions made by the government affect our every day lives and can come in the form of policy or legislation. For the United States of America our government and nation is ran under a democracy. In this capitalistic, free market-oriented economy, corporations and other private firms make the vast majority of microeconomic decisions, and governments prefer to take a minimal role in the domestic economy. As a result, the U.S. has a small social safety net, and business firms in the U.S. face considerably less regulation than firms in many other nations (Wikipedia).
Employee rights in the United States have a substantial effect on business. With the apparel industry being labor-intensive, the effect employee laws have are significant. Employee laws to consider are minimum wage, over time, benefits and health and safety regulations.
Ð²Ð‚ÑšWith the exception of Arizona, Louisiana, Mississippi, Alabama, Tennessee, and South Carolina all states have a minimum wage requirements. The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments (DOL). Covered nonexempt workers are entitled to a minimum wage of not less than $5.15 an hour. Overtime pay at a rate of not less than one and one-half times their regular rates of pay is required after 40 hours of work in a workweekÐ²Ð‚Ñœ (DOL). As well as minimum wage and...