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The Impact of Macroeconomic Variables on the Telecommunication Industry

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The Impact of Macroeconomic Variables on the Telecommunication Industry
Running head: ENVIORONMENTAL ANALYSIS

The Impact of Macroeconomic Variables on the Telecommunication Industry
University of Phoenix
MBA 501
Forces Influencing Business in the 21st Century
January 22, 2007

Introduction
The intent of this paper is to perform an analysis of the cable industry's external environment. The first sections of the document will discuss environmental scanning and define the telecommunication niche that is currently occupied by cable operators such as Comcast. The next section will identify the macroeconomic variables that currently impact cable operators and will compare two variables to two corresponding industry variables. The final section of the paper will identify some of the challenges and opportunities facing the industry. An external analysis of the industry will provide a clear picture of the environment as well as any opportunities and threats faced by Comcast. By understanding the environment, opportunities and threats a company has the ability to create strategies to support its business goals. The primary process by which Comcast will gain an understanding of its external environment is environmental scanning.
Environmental scanning
Environmental scanning "is the acquisition and use of information about events, trends, and relationships in an organization's external environment, the knowledge of which would assist management in planning the organization's future course of action." Choo (2001) As explained by Gazzale (2007) all businesses external environment are made up of three facets ": 1) the remote environment (macroeconomic factors including inflation, GDP, interest rates, etc.), 2) the industry environment (barriers to entry, the level of competition within the industry, etc.), and 3) the operating environment (the business's customers, suppliers, and workforce, etc.).

Telecommunications Industry (Cable)
Comcast Cable is part of the telecommunication industry which is defined as "extension of communication over



References: Anonymous 1, (2007), Telecommunication, retrieved January 17, 2007 from en.wikipedia.org/wiki/Telecommunications_industry Choo, C, W (2001), Environmental scanning as information seeking and organizational learning. Information Research, 7(1), retrieved January 18, 2007 from http://InformationR.net/ir/7-1/paper112.html Countrywatch (2007), retrieved January 19, 2007 from the University of Phoenix rEsource database Countrywatch, United States Gazzale, L (2007), retrieved January 22, 2007 from University of Phoenix, Main MBA501 week five environmental scanning thread McConnell, R., Brue, S. (2004). Economics: principles, problems and policies, 16e. The McGraw-Hill Companies NAICS definitions (2007), retrieved on January 18, 2007 from (http://www.census.gov/epcd/naics02/def/ND517510.HTM) US Census Bureau (2006), retrieved January 22, 2007 from http://www.census.gov/ University of Phoenix, (2007), retrieved January 19, 2007 from the University of Phoenix rEsource database MarketLine Business Information Center

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