Business and Environment (BUS 503)
Brac Business School
Submitted By ID
Submission Date : 06- 12-13
The Ready-Made Garments (RMG) industry contributes to the Bangladesh economy in a distinctive manner. The last 20 years witnessed unparalleled growth in this sector, which is also the largest exporting industry in Bangladesh. It has attained a high profile in terms of foreign exchange earnings, exports, industrialization and contribution to GDP within a short span of time. The industry plays a significant role in terms of employment generation. Nearly two million workers are directly and more than ten million inhabitants are indirectly associated with the industry. In addition to its economic contribution, the expansion of RMG industry has caused noticeable changes by bringing more than 1.12 million women into the workforce. Hence it is quite apparent that this sector has played a massive role in the economic development of the country.
A business Environment has also an external Environment by analyzing PEST.
A PEST Analysis can help us to know about the external environment situation of a particular industry of a country. The below analysis is the PEST analysis for the RMG industry of Bangladesh.
Political analysis: Among various features of our political situation, most noticeable and important conditions may be identified as follows –
Absence of democratic political culture
Absence the rule of law
Absence of strong civil society
Absence of strong political leadership
Corruption and terrorism
Negativity/Double standard despite of many drawbacks, our government has taken some positive initiatives in favor of foreign investors. There are no distinctions between foreign and domestic private investors regarding investment incentives or export and import policies.