External Environmental Scan

Environmental Scan

STR 581

February 27, 2012

Art Close

The remote environment analysis is an evaluation of those external factors that have an impact on businesses where these have either little or no control over. The factors that are discussed when doing a remote environmental analysis are social, technological, economic, ethical, political, legal and ecological. The factor that comes into consideration when performing a remote environmental analysis for a proposed janitorial business is the economic segment. The economic factor deals with trends in rate of economic growth, inflation rates, unemployment rate, prime interest rates, outsourcing, etc.

Two of the biggest economic factors that will affect Under The Rug are the unemployment rate and outsourcing. By janitorial services being a low tech business that can be done by unskilled laborers; high unemployment rates will supply a large pool of potential employees. This is an advantage for the business because janitorial workers are generally paid low wages, According to Cleaning Business Magazine (n.d.) “contributing to high turnover and the frequent use of illegal aliens.” (para.3) Under The Rug will definitely not use illegal aliens as its workforce; but by having such a large pool of potential employees it makes it encouraging that if the business needs to hire more employees to meet demands that it can rather easily.

Outsourcing has become a common trend in businesses trying to reduce their cost. One of the costs that are easily reduced is labor cost. “Hiring and training staff for short-term or peripheral projects can be very expensive, and temporary employees don't always live up to your expectations. Outsourcing lets you focus your human resources where you need them most.” (AllBusiness.com, 2008, Reduce labor cost). Under The Rug will be able to provide a reliable service that couldn’t be guaranteed by a small business or office having one...