Case Subject Electronics Stores (NAICS code: 443142) Industry Description: This U.S. industry comprises: (1) establishments known as consumer electronics stores primarily engaged in retailing a general line of new consumer-type electronic products such as televisions, computers, and cameras; (2) establishments specializing in retailing a single line of consumer type electronic products; (3) establishments primarily engaged in retailing these new electronic products in combination with repair and support services; (4) establishments primarily engaged in retailing new prepackaged computer software; and/or (5) establishments primarily engaged in retailing prerecorded audio and video media, such as CDs, DVDs, and tapes. Illustrative Examples: Cellular telephone accessories stores Consumer-type electronic stores (e.g., televisions, computers, cameras) Stereo stores (except automotive) Radio and television stores Computer stores.

Tasks: Please analyze the external environment of the Retail Industry, specifically Electronics Stores, based on the following six segments: Demographic, Economic, Political/Legal, Socio-Cultural, Technological, and Global

Knowledge Base for General Environmental Analysis

The general environment is composed of factors that can have dramatic effects on firm strategy. We divide the general environment into six segments: demographic, sociocultural, political/legal, technological, economic, and global. Here is a description of each segment. Some factors in each segment are also listed at the end for you to consider, although many of them may not be quite relevant to the industry in our case analysis.

The Demographic Segment

Demographics are the most easily understood and quantifiable elements of the general environment. They are at the root of many changes in society. Demographics include elements such as the aging population, rising or declining affluence, changes in ethnic composition, geographic distribution of the population, and disparities in income level. The impact of a demographic trend, like all segments of the general environment, varies across industries. Rising levels of affluence in many developed countries bode well for brokerage services as well as for upscale pets and supplies. However, this trend may adversely affect fast-food restaurants because people can afford to dine at higher-priced restaurants. Fast-food restaurants depend on minimum-wage employees to operate efficiently, but the competition for labor intensifies as more attractive employment opportunities become prevalent, thus threatening the employment base for restaurants.

The Economic Segment

The economy affects all industries, from suppliers of raw materials to manufacturers of finished goods and services, as well as all organizations in the service, wholesale, retail, government, and nonprofit sectors. Key economic indicators include interest rates, equity markets, unemployment rates, the Consumer Price Index, the gross domestic product, and net disposable income. Interest rate increases have a negative impact on the residential home construction industry but a negligible (or neutral) effect on industries that produce consumer necessities such as prescription drugs or common grocery items.

The Political/Legal Segment

Political processes and legislation influence environmental regulations with which industries must comply. Some important elements of the political/legal arena include tort reform, the Americans with Disabilities Act (ADA) of 1990, the repeal of the Glass-Steagall. Act in 1999, deregulation of utilities and other industries, and increases in the federally mandated minimum wage. Government legislation can also have a significant impact on the governance of corporations. The U.S. Congress passed the Sarbanes-Oxley Act in 2002, which greatly increases the accountability of auditors, executives, and corporate lawyers.

Relationships among Elements of the General Environment

In our discussion of the general environment, we see many relationships among the various elements. For example, a demographic trend in the United States, the aging of the population, has important implications for the economic segment (in terms of tax policies to provide benefits to increasing numbers of older citizens). Another example is the emergence of information technology as a means to increase the rate of productivity gains in the United States and other developed countries. Such use of IT results in lower inflation (an important element of the economic segment) and helps offset costs associated with higher labor rates. The effects of a trend or event in the general environment vary across industries. Governmental legislation (political/legal) to permit the importation of prescription drugs from foreign countries is a very positive development for drugstores but a very negative event for U.S. drug manufacturers.

PLEASE ANSWER THE FOLLOWING QUESTIONS: ANY REFERENCES/SOURCES CAN BE FROM THE INTERNET. NO WIKI

1. What factors in the demographic segment can significantly impact the Electronics Stores Industry (NAICS 443142)? How does each of these factors shape the growth and changes of the industry? What are the future trend of each factor and the resulting changes of the industry? Please list any references you found to support your findings following APA format.
2. What factors in the economic segment can significantly impact the Electronics Stores Industry (NAICS 443142)? How does each of these factors shape the growth and changes of the industry? What are the future trend of each factor and the resulting changes of the industry? Please list any references you found to support your findings following APA format.
3. What factors in the political/legal segment can significantly impact the Electronics Stores Industry (NAICS 443142)? How does each of these factors shape the growth and changes of the industry? What are the future trend of each factor and the resulting changes of the industry? Please list any references you found to support your findings following APA format.

LIST OF FACTORS FOR EACH SEGMENT TO CHOOSE FROM BELOW. AT LEAST CHOOSE 3-4 FOR EACH SEGMENT/QUESTIONS ABOVE (3) AND PLEASE INDICATE WHICH WERE CHOSEN FOR EACH SEGMENT QUESTION.

List 1: Some Key Economic Variables to Be Monitored

Shift to a service economy in the USA

Availability of credit

Level of disposable income

Propensity of people to spend

Interest rates Inflation rates

Money market rates

Federal government budget deficits

Gross domestic product trend

Consumption patterns

Unemployment trends

Worker productivity levels

Value of the dollar in world markets

Stock market trends

Foreign countries economic conditions

Import/export factors

Demand shifts for different categories of goods and services

Income differences by region and consumer groups

Price fluctuations

Export of labor and capital from the USA

Monetary policies

Fiscal policies

Tax rates

European Economic Community (EEC) policies

Organization of Petroleum Exporting Countries (OPEC) policies

Coalitions of Lesser Developed Countries (LDC) policies

List 2: Some Key Demographic Variables

Population changes by race, age, sex, and level of affluence

Immigration and emigration rates

Social Security programs

Life expectancy rates

Per capita income

Location of retailing, manufacturing, and service businesses

Attitudes toward business

Lifestyles

Traffic congestion

Inner-city environments

Average disposable income

Trust in government

Attitudes toward government

Attitudes toward work

Buying habits

Ethical concerns

Attitudes toward saving

Sex roles

Attitudes toward investing Racial equality

Use of birth control

Average level of education

Attitudes toward retirement

Attitudes toward leisure time

Attitudes toward product quality

Attitudes toward customer service

Pollution control Attitudes toward foreign peoples

Energy conservation

Social programs

Attitudes toward careers

Attitudes toward authority

Value placed on leisure time

Regional changes in tastes and preferences

Number of women and minority workers

Number of high school and college graduates by geographic area

Recycling

Waste management

Air pollution

Water pollution

Ozone depletion

Endangered species

List 3: Some Political and Legal Variables

Government regulations or deregulations

Changes in tax laws

Special tariffs

Political action committees

Voter participation rates

Number, severity, and location of government protests

Number of patents

Changes in patent laws

Environmental protection laws

Level of defense expenditures

Legislation on equal employment

Level of government subsidies

Antitrust legislation

Political relationships between US and other countries

Importexport regulations

Government fiscal and monetary policy changes

Political conditions in foreign countries

Special local, state, and federal laws

Lobbying activities

Size of government budgets

World oil, currency, and labor markets

Location and severity of terrorist activities

Local, state, and national elections

THERE ARE NOT TABLES