This document provides an analysis of the macro and micro environmental factors impacting the ready-made garment industry in Bangladesh. It includes a summary, introduction to the industry, company profile of Fergasam Bangladesh Ltd., and analyses of technological, economic, legal, and social macro factors as well as micro factors like customers, suppliers, competitors, and publics. It concludes with recommendations to ensure continued growth and profitability of the industry by addressing issues like safety, wages, and technology.

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Course Title: Macro Environment Analysis
Batch:30 Semester: 7th
Section: HRM
(B)
Submitted to:
Ms. Jafrin Sabrina
Lecturer
Department of HRM
Date of submission: 6th
June, 2018

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Assignment on:
External Environment Analysis
(Macro and Micro environmental factors)
Submitted by: Business Preachers
NAME ID
Tithi Paul 1403010107673
Mukti Das 1403010107729
Chandrima Dev 1403010107772
Sartaj Noor 1403010107855
Apu Moni Shil 1403010107874
Sumaiya Khan 1403010107909

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CONTENTS
Serial
No. TOPIC Page
1 Executive Summary 5
2 Introduction 6
3 Company Profile 7
4 Micro Environment Analysis 8- 9
4.1 Customers 8
4.2 Suppliers of Inputs 8
4.3 Competitors 9
4.4 Publics 9
5 Macro Environment Analysis 10- 11
5.1 Technological Environment 10
5.2 Economic Environment 10
5.3 Legal Environment 11

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5.4 Social Environment 11
6 Conclusion and Recommendations 12
Bibliography 13
ACKNOWLEDGEMENT
At first, I thank the Almighty for giving us the strength and knowledge to complete this report.
Next, we would like to express our gratitude to Ms. Jafrin Sabrina, Lecturer, Department of
HRM, Faculty of Business Studies, Premier University, who gave us this wonderful opportunity.
She provided endless moral support and guidance in different matters regarding the topic.
Lastly, we would also like to convey our heartiest thanks to Mr. Syed Rashed Bin Jamal,
Assistant Manager, Fergasam (Bangladesh) Ltd., for his valuable time and providing the
necessary resources.
The success and final outcome of this assignment required a lot of guidance and assistance from
many other people and we were extremely fortunate to have got this all along the completion of
our assignment work. The contributions are sincerely gratefully acknowledged.

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Executive Summary
The main objective of this report is to know briefly about the RMG industry (particularly
Fergasam Bangladesh Ltd.) of Bangladesh and the external environmental factors which
mainly influence the overall industry.
By conducting Macro Environment Analysis, we can state that Bangladesh possesses the
ultimate weapon of low production cost due to cheap labour and hence can substitute the Chinese
and Indian manufacturers. This opportunity has to be nurtured by the Bangladeshi industry to
ensure its growth and profitability.
A close examination of the Micro Environment Analysis reveals that the company has threat
from customer, supplier and competitor sector. There is also threat from the personnel sector
because labours can go on strike all of a sudden and create unrest in the factory.
The RMG industry is the only multi- billion- dollar manufacturing and export industry in
Bangladesh. It grew by more than 15 percent per annum on an average during the last 15 years.

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Introduction
The Readymade Garment (RMG) industry contributes to the economy of Bangladesh in a
distinctive manner. It has attained a high profile in terms of foreign exchange earnings, exports,
industrialization and contribution to GDP within a short span of time.
It plays a significant role in terms of employment generation. Nearly 2 million workers are
directly and more than 10 million inhabitants are indirectly associated with the industry. Hence,
it is quite apparent that this sector plays a massive role in the economic development of the
country. About 70% of the workers are women who mostly come from rural areas. Thus, the
industry helps in the country’s social development, women empowerment and poverty
alleviation.
Currently, RMG earns the lion’s share of foreign exchange earnings and its contribution in terms
of GDP is highly remarkable.

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Company Profile
The Timex and Fergasam Group (T&FG) operates primarily in the apparel manufacturing
industry and exports ladies apparel for international brands across the globe. It comprises of 17
facilities, including 16 in Sri Lanka and 1 in Bangladesh (Fergasam Bangladesh Ltd.)
Today the company’s primary markets are the United States, the United Kingdom and Germany.
A major share of output (70%) is in ladies dresses (ranging from low to high- end brands)
followed by intimate apparel. Major customers include brands such as Victoria’s Secret, Marks
and Spencer, Tommy Hilfiger, Donna Morgan, House of Fraser, H&M, Splash and Vera Wang.
The T&FG family is a large one made up of nearly 10,000+ individuals in Sri Lanka and
Bangladesh. The group takes its corporate ethic of family- style caring wherever it operates. It
also promotes good environmental practices, decent working conditions and no child labour.
Their extensive training and development program has allowed those that began at the bottom,
on the factory floor, to make it to management levels.

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The company uses modern technology such as e- Fit software to reduce the sampling process
time for fitted garments. It also has an Enterprise Resource Planning (ERP) system linking all of
its factories.
Micro Environment Analysis
 Customers
Knowing ideal customer types and developing and presenting effective marketing campaigns
are integral to building a customer base and generating revenue streams.
Bangladesh is the 2nd largest manufacturer of garments in the world. The products are very
popular all over the world for two reasons: quality and price.
It is also the best for outsourcing in garments. Hence, many international firms set up
subsidiaries in our country to get their work done such. The European Union, the United
States, Japan, Canada and Australia are some of the biggest importers of Bangladeshi
garments.
 Suppliers of Inputs
Mutual understanding between the supplier and the buyer helps the growth of the industry.
Manufacturers rely on materials suppliers in order to source goods used in production.
Firms should keep multiple local suppliers of inputs to reduce risk and uncertainty that will
adversely affect the production work.

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 Competitors
The level of competition also impacts the economic livelihood. A large number of
competitors in an industry usually signifies huge demand for the products or services
provided.
The garments industry in Bangladesh faces a lot of competition from China and India. Hence,
for successful competition, the firms in Bangladesh have to improve not only the quality of
the products but also enhance their productivity so that cost per unit can be reduced.
 Publics
Environmentalists, media, consumer protection groups and citizen associations are some
important examples of publics which have an impact on environment of the firms.
For instance, many environmentalists have been campaigning against the garments industry
which pollute the environment and cause health hazards.
Therefore, the existence of various types of publics influences the working of business firms
and compels them to be socially responsible.

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Macro Environment Analysis
 Technological Environment
Bangladesh is not so technologically developed as compared to other big giants in the
international markets. It is still using obsolete technologies because they have to pay a high
amount of money to acquire ultra- modern technology.
Nevertheless, the factory concerned is using automatic finger punch machines that record and
process automatically the over-time hours for every labour. Manual attendances do not
ensure accuracy in wages calculation but employees of the factory concerned do not have any
grievances against wages calculation.
Various automated machineries are duty free for the investors to import from abroad and
accordingly the factory imports most of the machine parts from outside the country. If the
government had ensured quality machine parts, we could retain a lot of contribution from the
investors and that could have been added to the National Income.
 Economic Environment
Garments sector is currently contributing about 10% to GDP and it is the highest single
contributor of Bangladesh economy. In the factory concerned, around 2000 workers are
employed and had been an economic shelter to more than 1000 families since 2008. About

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73% of the employees are women who are playing a pivotal role in decision making and
poverty alleviation in their family. The factory is accelerating the industrial growth and
employment opportunities for the unemployed workers in Chittagong, Bangladesh. Banks are
making a lot of profit only from this sector by export and import services and employees’
bank cards value added services.
 Legal Environment
The age long complaints against the garments industries about the workers not getting proper
wages and remuneration, working environment and safety from the companies- now seem to
be decreasing but still a long gap is up ahead for the investors to mend, in order to ensure
human rights to the workers employed in the factories.
The factory concerned only had one legal issue which it settled back in 2016, where a worker
was dismissed without following a stage of a legal procedure. So the BEPZA authority seems
to have good control over any legal discrepancy happening inside the zone. The factory
concerned is currently setting up a water reservoir system in order to fill up the compliance
and legal requirements to ensure fire safety.
 Social Environment
Locally, the factory concerned is contributing in the social dynamics of the community by
employing around 2000 workers, 73% of which are women who are being utilized as labours,
a portion which had remained unused till the advent of garments industry in the region.
Women employees are being paid legally- made- mandatory wages and in certain cases,
experienced workers are being paid more in order to harness their skills in a competitive
market.

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Women are also participating in decision- making of families. From this point of view, the
social impacts of garments are as follows:
a) Women empowerment has been achieved in private and public sector.
b) Economic solvency has been achieved as women are contributing to increase savings.
c) Women are interested in population control.
d) Awareness about health care has increased.
e) Standard of living has improved.
f) Their children have greater access to better education.
Conclusion and Recommendations
From the above analysis, we can identify the impact of various external environmental
factors such as the macro environment factors which influence the overall industry and the
micro environment factors which describe what a particular company needs in order to gain
competitive advantage in the RMG sector of Bangladesh.
Though there was little impact of global economic recession on this sector, external factors
like political instability, labour unrest and inadequate safety system are responsible for the
slightly negative image of Bangladeshi garments in the global arena. If this situation
continues, it might be a red signal for the growth of this sector.
Based on the above findings, the following recommendations can be drawn:
a) BGMEA and other government licensing authority should ensure the preconditions of a
garments company in terms of code of conduct, fire and safety, working environment and
so on, before approving any new garments in Bangladesh.
b) Equal opportunities in terms of compensation packages for both men and women should
be ensured by companies and monitoring authority.
c) The labours should be provided significantly decent wages and other facilities such as
free medicine, bonus, and transportation cost in order to motivate them to become more
productive.

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d) The owners should give more attention to improve the working conditions of the
garments by providing proper ventilation system, clean sanitation, significant number of
fire extinguishers and emergency exit to ensure the safety and security of the workers.
e) The industry should invest more in research and development in order to overcome the
lack of advanced technology and equipment.
f) Child labour should not be recruited as it brings a negative impression on the brand
image of the company to its customers.
g) The industry should focus on development of high- quality products rather than relying
on low, medium to semi- high quality product.
Bibliography
1- https://content.sciendo.com/abstract/journals/sbe/12/2/article-p100.xml
Islam and Pattak, Impact of Macro Environmental Factors on garments industry that
drives export in Bangladesh
2- http://www.timexsl.com
Timex and Fergasam Group, Official website
3- https://apparelmag.com/timex-fergasam-group
Apparel Magazine, Timex- Fergasam Group