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Submitted by nyyankees on June 1, 2008
Category: Business
Words: 1471 | Pages: 6
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RUNNING HEADING: ENVIRONMENTAL SCANNING
University of Phoenix
MBA/501 Forces Influencing Business in the 21st Century
David Lantz University of Phoenix Faculty
March 9, 2008
Environmental Scanning
Introduction
In the following pages, discussion will take place on the construction industry, including a clear description of the industry and the business environment problem. This paper will be broken down into several parts starting with the introduction. Next key macroeconomic variables that affect the construction industry will be identified. The macroeconomic variables and the corresponding industry variables will be graphically represented for the last five years. Information will be integrated from the text and outside sources to illustrate the effects of the economic variables on the construction industry. The paper will conclude with a look at the challenges and opportunities that exist for construction firms in the operating environment.
Industry Overview
This paper will focus on the construction industry, NAICS code 236115 - New Single-Family Housing Construction (except Operative Builders). This U.S. industry comprises general contractor establishments primarily responsible for the entire construction of new single-family housing, such as single-family detached houses and town houses or row houses where each housing unit (1) is separated from its neighbors by a ground-to-roof wall and (2) has no housing units constructed above or below. This industry includes general contractors responsible for the on-site assembly of modular and prefabricated houses. Single-family housing design-build firms and single-family construction management firms acting as general contractors are included in this industry. (NAICS, 2008)
Description of the Business Environment Problem
Housing starts, are one of the most closely followed measures of construction...
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