Macro Environment Analyses
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Chapter 2: External Analysis: The Identification of Opportunities and Threats: 2-7d Demographic Forces Book Title: Strategic Management: An Integrated Approach: Theory and Cases Printed By: Pearl Chen ([email protected]) © 2020 Cengage Learning, Inc.
2-7d Demographic Forces
Demographic forces result from changes in the characteristics of a population such as age, gender, ethnic origin, race, sexual orientation, and social class. Like the other forces in the general environment, demographic forces present managers with opportunities and threats and can have major implications for organizations. Change in the age distribution of a population is an example of a demographic force that affects managers and organizations. Currently, most industrialized nations are experiencing the aging of their populations as a consequence of falling birth and death rates and the aging of the Baby-Boom generation. As the population ages, opportunities for organizations that cater to older people are increasing; the home-health-care and recreation industries, for example, are seeing an upswing in demand for their services. As the Baby-Boom generation from the late 1950s to the early 1960s has aged, it has created a host of opportunities and threats. During the 1980s, many Baby Boomers were getting married and creating an upsurge in demand for the customer appliances normally purchased by couples marrying for the first time. Companies such as Whirlpool Corporation and General Electric (GE) capitalized on the resulting upsurge in demand for washing machines, dishwashers, dryers, and the like. In the 1990s, many of these same Baby Boomers began to save for retirement, creating an inflow of money into mutual funds and creating a surge in the mutual fund industry. Today, many Baby Boomers are retiring, creating a surge in retirement communities.
Chapter 2: External Analysis: The Identification of Opportunities and Threats: 2-7d Demographic Forces Book Title: Strategic Management: An Integrated Approach: Theory and Cases Printed By: Pearl Chen ([email protected]) © 2020 Cengage Learning, Inc.
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