Environmental Scan
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Environmental Scan
There are different opinions about the current state of the economy. The job and housing market coupled with the growing national debt are areas that have indicated that the economys current state is definitely on shaky ground. Environmental scanning is a process that detects and deciphers possible trends by obtaining information pertaining to events occurring outside of a corporation. There are five sources (social, economic, technological, competitive, and regulatory) that contribute to environmental trends. This essay will address these five sources as well as how they are impacted by the United States current economy.
The social forces of the environment focus primarily on demographic characteristics as well as the changes and effects. One particular focus has been on baby boomers. Baby boomers, the age group of children born between 1946 and 1964, are growing older and are gradually reaching the retirement age. The textbook, Marketing: The Core states baby boomers “participation in the workforce has made them the wealthiest generation in U.S. history” (Kerin, et.al, 2011 ). It is estimated that approximately 10,000 people daily are reaching the age of 65 since 2011. Although this may be the wealthiest generation in US history, there are many that have experienced or are experiencing the effects of the countrys recession. Social security benefits are expected to be eradicated all together. This is a major concern for many that may not have the financial security needed to enjoy their golden years.
The economic force describes the consumers belief about the economy and how it affects their overall spending. The countrys recession and all time high unemployment rates have been key factors in how consumers spend. Although a slight increase in the unemployment rate was recently reported, unemployment still remains at an all time high. Forced retirements and layoffs have been a significant, contributing factor in unemployment rate. However, the lack of newly created jobs is affecting unemployment as a whole. President Obamas stimulus package was primarily designed to boost economic growth and to save an unprecedented number of jobs. A stimulus package only masked the ongoing problem. In my opinion, creating more jobs would have more positive long term effects.
According to indexmundi.com, “The US has the largest and most technologically powerful economy in the world with a per capita of Gross Domestic Product (GDP) of $47,200. The US continues to dominate with the technological advances made, “especially in computers and in medical, aerospace and military equipment” (2011). Technology also plays a huge role in modern households as the demand increases for more computerized and digital products. Apple , an iconic, market leader, has products including the Ipod, Iphone,