Environmental Analysis
Darolynn Stewart
MBA 501: Forces of Influencing Business in the 21st Century
May 6th, 2008
Macroeconomics examines either the economy as a whole or its basic sub-divisions or aggregates such as the government, household, and business cycle (McConnell & Brue, 2004). Environmental analysis is a crucial tool that allows businesses to develop a strategic plan for their future. In developing a plan, decision makers must scan their external environment which consists of three elements. First, one must evaluate the remote environment. This consists of economic, political and technological factors. Some examples are gross domestic product, profits, inflation, and unemployment rates. These are also known as macroeconomic factors. Another component of the external environment is industry environment. This consists of competitiveness among rivalries, the availability of substitutes, and entrance barriers. The final component is the operating environment. This comprises of suppliers, amount of competitors, labor, and customer base.
The United States is the largest retail market in the world. The apparel industry makes up 255.2 (US $bn) of retail sales (EIU Data Services). A leader in the apparel industry today is the Gymboree Corporation. Macroeconomic variables such as the unemployment rate and inflation are current problems affecting the company
The Gymboree Corporation was founded in 1976 by a San Franciscan mother, Joan Barnes. She was frustrated that she couldn’t find a safe place for new parents and children to play and exercise together. The centers main pur ...