What Economic Factors are the Reason for the Decline of Retailers and Term Paper

What Economic Factors are the Reason for the Decline of Retailers and Department Stores such as JC Penney and Staples - Term Paper Example It is evidently clear from the discussion that external economic factors have often been argued to influence operational efficiencies of contemporary organizations that further cause negative implications for the organizations’ competitive sustainability within the industry context. In this regard, the economic factors can be considered as one of the major influencing factors having strong negative impacts on the organizations while performing business operations in the overseas markets. For instance, the business decline of few leading retailers and departmental stores such as J.C. Penney Company Inc. (JCP) and Staples Inc. (Staples) has been witnessed as the recent illustrations of impacts caused by economic factors on business stability and sustenance. Emphasising the influence of economic factors, the primary objective of this report is to identify and critically analyze the key economic factors responsible for the decline of retailers and department stores such as JC Penn ey and Staples. In this regard, the report also tends to assess each key economic factor to have a major influence on the multinationals while performing their business functions in the overseas locations. In addition, the report also critically discusses the negative scenarios faced by these widely renowned retailers and departmental stores owing to the economic factors operating in their external business environment. The emergence of globalization has been observed to improve the business performance of the firms irrespective of their inhabiting business industry.