PEST ANALYSIS
Select a company of your choice and provide a brief analysis of how the following climates influence your company. You can provide one example for each. Email back to daimi@wayneschools.com by st Sunday March 1 11:59pm
EX: Company “Toys R US”
The political environment: Any changes in government policies including taxation, FDA, EPA, and other policies will impact the organization’s profitability indirectly.
The economic environment: Since the US economy is undergoing recession, sales for Toys R Us is directly related to consumer spending and the discretionary income of population. Under the current circumstances spending in this economy is expected to be low. This is also going to impact the already price sensitive customers in the industry to become more price oriented. Opportunity lies in addressing this emerging need of lower priced toys that can appeal to the changing needs of customers.
The social environment of Toys R Us is undergoing change, wherein the customer age groups remain of segments below five years and the five to twelve year kids segment is decreasing. Their customers are not being replaced by similar number of children. In Addition, there is an increase in pressure on children’s leisure time with mothers encouraging educational activities over leisure.
The technological environment is also not expected to undergo any major change that would impact Toys R Us other than consumers ability to purchase online, and the high price