Ten External Forces That Affect Organizations
Economic Forces
Economic factors have a direct impact on the potential attractiveness of various strategies. For example, high underemployment (minimum wage-type employment) in the United States bodes well for discount firms such as Dollar Tree, T.J. Maxx, Walmart, and Subway, but hurts thousands of traditional-priced retailers in many industries. Although the Dow Jones Industrial Average is high, corporate profits are high, dividend increases are up sharply, gas prices are low, and emerging markets are growing, millions of people work for minimum wages or are unemployed. As a result of droughts, commodity prices are up sharply, especially food, which is contributing to rising inflation fears. Many ...
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