The Components Of Macroeconomics And The Two External Influences Affecting Industry

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Social and technological forces are the final two components of macroeconomics and the two external influences affecting industry (Parnell, 2014). Thus, social forces include: societal values, trends, traditions, religious practices, and concern for the environment (Bethel, 2016). Whereas, technological forces primary factor is the internet, but focuses on scientific improvements and innovations too (Bethel, 2016). While all four forces affect industry, the social and technological factors seem to hold the greatest influence on products and services offered by organizations. Another key tool used by many organizations is environmental scanning. Virtually, there are dozens, if not more, industry media, which collects and analyzes information about relative external and environmental trends (Bethel, 2016). Ultimately, environmental scanning provides several benefits to organizations, such as: helps with strategic decision making, encourages diversification of resources, keeps executives current activities in the industry, and keeps organizations abreast of changes or factors that would affect the business (Parnell, 2014). In reality, organizations cannot anticipate the changes necessary to keep up with the times unless they are reviewing information and using the tools available to keep them current. How are social forces, technological forces, and environmental scanning evident at Amazon? A better question would be, what did we do before Amazon? Funny, the answer is you went shopping! Yes, each of us got into the car, went to the mall, library, or other venue to obtain the product of our desire. To some, that probably sounds so antiquated, but that was the practice for the last 50 or so years. Now, traditional retail... ... middle of paper ... ...ry (Bagehot, 2013). However, another key factor is today’s children are accessing and utilizing technology, by way of computers and internet, a lot younger (Bagehot, 2013). Obviously, these two issues have created the perfect storm for toy makers. Truly, the toy industry is highly competitive, which is evident when even Star Wars toys are not popular enough to make the cut. In the past few years, the toy industry has seen an increase in sales, which will help Mattel recover from past trends of negative growth (Kell, 2016). However, even with innovative improvements to Barbie and View Master, Mattel is still struggling. Ultimately, they may have waited too late to respond to the social and technological trends of today. Their saving grace may result from their line of Apptivity games, which could help them leverage their existing brand value (Mattel, 2015).

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