This blogs makes reference to Peony Au’s blog post: “The Blame Game: U.S. Government Shutdown”.

As Peony Au elucidates in her blog post, the US Government Shutdown has harmed the American economy, affecting multiple federal departments and the portion of the workforce placed on unpaid leave. Furthermore, as she predicts, this external political factor has also impacted private businesses, among them, Historic Tours in America, an entertainment company that I will now draw my attention to.

Although it usually provided a variety of touristic activities throughout the USA, Historic Tours in America is currently unable to offer its services as a result of the government’s political crisis. In the Washington area, for example, the closure of the Potomac River has halted the firm’s duck tours. Similarly, the shutdown of museums, memorials and national parks have also contributed to its decline in profits. To make things even worse, demand for their remaining operational services has decreased, probably due to the drop in consumer confidence that accompanies these kinds of events.

Consequently, it becomes evident that understanding the environment in which a business operates and minimizing vulnerability to external factors is key to succeed. As learned in class, the CPEST model is a great way to achieve this.

News Article and Photo: http://money.cnn.com/2013/10/14/news/economy/dc-shutdown-economy/index.html?iid=HP_River

Video – How the US Shutdown impacted another firm, Nomad Ventures, in California: https://www.youtube.com/watch?v=vJ6ViAO9SOw