To comment on the analysis, ask questions, and/or make suggestions about how this analysis could be improved.
Give each question a paragraph~！ 300 words
The Analyzing Market Trends case describes the Bach family, who own a number of businesses in a prime tourist destination in Michigan. The case outlines a discussion between the father of the Bach family, John, and his son, Rob. At the beginning of the case, John points out that demographic projections indicate that Michigan is a rapidly aging state and that the proportion of residents aged 65 or older is increasing at a very fast pace.
John believes that the increased number of seniors will benefit the various businesses and provide new opportunities. Rob isn’t so sure. He feels that because many seniors have a fixed amount of income and tend to be very frugal in their spending, business activity will decrease. John points out that there are plenty of high income seniors with a lot of disposable income, and that seniors also tend to make good employees.
Discussion Question 1
The demographic change may impact the various businesses that the Bach family owns, but the extent of that impact can be limited if the businesses still offer similar products and services, but make slight alterations that appeal to an older group of people.
For example, one impact of the demographic change could be a decrease in tourism. Seniors may not like travelling somewhere alone, but may be open to the idea of doing so in groups. Group travel packages could be offered that would allow seniors to travel with their friends in a guided fashion at a discounted cost. In doing so, the Bachs wouldn’t actually have to change anything about their businesses, they would simply be rebranding existing services.
Another potential impact, as Rob eluded to, is a decrease in dining traffic. However, a simple change could help minimize that effect as well. Seniors are likely to get up and be ready to go out for a morning meal earlier than middle-aged individuals who have work and children to attend to. The seniors are also likely to go to bed earlier. To accommodate, the Bachs could alter their restaurants’ hours to be more convenient for seniors. Opening an hour or two earlier and also closing earlier would make logistical sense for the restaurants and also help limit the potential impacts of a changing demographic.
Discussion Question 2
Despite Rob’s doubts, our textbook specifically states that opportunities may be created by demographic changes (Bateman, Snell, Konopaske, 2018). The Bach family described in the case is very similar to the Zehnder’s family in Frankenmuth. Because many Zehnder’s locations appeal to seniors, the Bach’s could take a few ideas from their business model and apply it to their own. The Bachs could market their restaurants similar to how Zehnder’s markets its “world famous chicken dinners,” while also offering senior discounts throughout the week when traffic is lighter. Those discounts would help to bring seniors to the area on days where working families are committed to their jobs. Seniors often enjoy eating breakfast together as well, as they spend time sharing coffee with their friends. Some kind of breakfast special geared specifically toward seniors would give them an incentive to visit the area for something they already have no problem paying for.
With the extra capital that the Bachs have for investment purposes, they could also build a recreational park fit for elderly people. The park could have activities such as a drive-in movie or a dog park. As an extra amenity, the vintage park could have classic cars that the seniors could drive by paying for a ticket, allowing them to relive their youth and create new profit opportunities for the Bachs.
In the case, John also points out that seniors often make good employees as well. These positions would obviously be part time, but area locals looking to earn extra income in retirement would make great candidates for such positions. An article in the Houston Chronicle said that “Senior citizens with a strong work history bring an established work ethic to the table as well as an ability to work flexible schedules in many cases. Developing a strategy for hiring senior citizens is not difficult and can provide you with a diverse workforce,” (Lewis, 2017). The Bachs could use the aging demographic to rebrand its employment strategy for the benefit of its businesses.
Discussion Question 3
The demographic shift can impact other businesses in all sorts of ways. As the number of seniors increase without the proportional increase in young people, the working population will be affected. This will have a negative impact on businesses that rely on their younger workers, such as construction companies. The food business might also be affected as restaurants will have to cater to the needs of the growing population of elderly people, however using the strategies listed above, that could be a beneficial transition. Assisted living centers will boom as there will be more people being admitted. Simultaneously, businesses that provide people with at home nurses will also grow.
Bateman, T. S., Snell, S. A., & Konopaske, R. (2018). Chapter 6: Entrepreneurship. In Management (5th ed., pp. 118-142). New York, NY: McGraw Hill.
Lewis, J. (2017). A Business Strategy for Hiring Retired Employees. Houston Chronicle. Retrieved September 22, 2017, from http://www.highbeam.com/doc/1G1- 81847813.html?refid=easy_hf
Zehnder’s. (2017). Zehnder’s of Frankenmuth. Retrieved September 22, 2017, from http://www.zehnders.com/