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Environmental Analysis
Looking at the microeconomic environment retail in the United States two variables are charted for a five-year period. The two chosen macroeconomic variables are changes in business inventory and new orders for consumer goods and materials. Target Stores is the company used in this presentation. Present day operating challenges and opportunities are reviewed for the retail industry. The retail industry's sales represent a large percentage of final good delivery in the country.
Industry in Which Organization Operates
Target Stores operates in the retail industry. Target Stores is the flagship operation for Target Corporation, formerly Dayton-Hudson Corporation. Operating in the retail industry Target Stores is classified as a general merchandise store. Target Stores operates brick and mortar stores as well as an e-commerce division run by the Target Direct division. Two macroeconomic variables will be looked at with respect to the retail industry.
Key Macroeconomic Variables that Affect Industry
Macroeconomic variables that affect the any industry in a macroeconomic environment are 12 items. The 12 variables are "stock prices, the money supply, the change of business inventories, an index of net formation of new businesses, the percentage change in sensitive commodity prices, the average work week of production workers in manufacturing, initial claims for unemployment insurance, building permits for private housing, new orders for consumer goods and materials, contracts and orders for investment goods, the change in business and consumer borrowing, and vendor performance" (Lyman, 2007). The two selected variables that ...