Strategic Analysis of the Business Council of Westchester

Introduction

The Business Council of Westchester (BCW) is the biggest and most prominent business membership association of the USA. It is determined to serving businesses learn, market, grow, and advocate.

Key External Drivers

Corporate Profit

A large proportion of the customers the Business Council of Westchester are corporations, so changes in business sentiment typically influence demand for the services provided by BCW. During periods when corporate profit is low, companies are less likely to spend money on nonessential training for their staff. This driver is expected to increase slowly during 2012 and represents a potential opportunity for BCW.(Calantone, 48-60)

Households Earning Over $100,000

Demand for the educational services provided by BCW mainly comes from middle- to senior-management positions. An increase in the number of people in these positions will increase the level of demand for services. A proxy for the number of middle- to senior-management positions is the number of households in high-income groups. Therefore, an increase in the number of wealthy households is expected to raise demand for industry services.

Per Capita Disposable Income

Levels of disposable income influence individuals who take courses for self-fulfillment. Customers are sensitive to price, so an increase in disposable income often leads to increased spending on education and training courses.

Number Of Employees

Any rise in the number of employees in the United States will expand the potential market base for BCW. Therefore, an increase in the number of employees typically boosts demand for the services provided by BCW.

EXTERNAL ANALYSIS

Despite officially exiting the recession, the US has continued to face sluggish economic growth, persistently high unemployment, and uncertain domestic and foreign financial situations. The renewed optimism of 2010 carried over into the first half of 2011, but continued fears about the US debt ceiling and other policy woes in addition to the European sovereign debt crisis weighed down on consumer and business sentiment. Households have cut back severely on spending in recent years and in general remain cautious to spend as liberally as they have in the past. (McDonald, 45)

Political

In November 2010, Republicans made sweeping gains in the mid-term elections, regaining control of the House of Representatives. The US has a low ranking in terms of political stability and absence of violence. The country is high on the list of nations susceptible to terrorist attacks, while its international policies to fight terrorism have aggravated the situation.

Current Strengths

* Strong democratic setup

* Global influence

Future Prospects

* Recent negotiations for free trade agreements

* Emergence of new political classes

Current Challenges

* Brinkmanship by the Republicans

* Threat of terrorism

Future Risks

* Rift between Israel and the US

* Increasing international criticism of the US's interventionist policies

* Illegal immigration may increase discontent

Economic

According to the Congressional Budget Office (CBO), the US government recorded a budget deficit of $1.3tn in FY2010, which amounts to around 8.9% of the country's GDP. CBO forecasts indicate that the country's budget deficit will increase to 9.8% in 2011. The Federal Reserve has ...