Page 36 - InterloopAnnualReport2020

SIGNIFICANT FACTORS AFFECTING

THE EXTERNAL ENVIRONMENT

Organizations are influenced directly or indirectly by the external environment they
operate in. The different external elements impacting Interloop Limited’s performance
are discussed as under:

P E S

Political Economic Social

Stable political conditions are important Economic conditions have a Being socially responsible is yet
for the growth of any Economy. direct impact on the Company’s another immense factor of critical
Frequent changes in government performance. An adverse movement importance that adds on to the
policies affect the confidence level of in exchange rate, interest rate, inflation performance levels of the
the investors and accordingly business rate, taxes, trading regulations, excise Company. The organizations involved
suffers overall. duties, etc. negatively impact the in playing an active role in the
DESCRIPTION In terms of operational efficiency, the earn a name in the market and
business of the Company.
betterment of society
accordingly, tend to attract and retain
Company needs to consider such
factors as unemployment, skill level,
their customers, employees and other
stakeholders.
availability of expertise, wage patterns,
working practices, and labour cost
trends.
When trying to determine economic
viability of a market, one should also
look at issues like current cost of
living for the target market as well as
availability of credit or finance.
Interloop Limited regularly participates We regularly monitor economic factors Following our Mission of bringing
ORGANIZATIONAL RESPONSE economic committees, think tanks, place include: We are also focused on well-being of
affecting performance and have
in business discussion forums and
about a positive change, Interloop is
strategies in place to mitigate any risks. investing in education, health, sports
provides valuable inputs to regulatory
bodies, government’s trade and
Some of the measures we have in
and many other community initiatives.
and advocacy bodies. We continue
our employees and their families and
Currency hedging/factoring
•
to monitor the impact of government
earmark funds every year to be spent
Cotton procurement led by cotton
•
policies on Pakistan’s economy at
on welfare activities includes grants,
procurement committee
scholarships, etc.
large and textile sector in particular.
•
Investment in securities
We continue to optimize ‘country of
•
Workforce planning through HR
production’ opportunities to minimize
committee
impact of political instability.
Implementation of Lean
•
Manufacturing
•
Skill development of workforce to
enhance productivity
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