Cultural Diversity - Assignment Example

Cultural Diversity

The collective buying power of Asians, African American, and Native Americans, in 2007, was more than triple it's level in 1990. In 2007, African Americans accounted for 62% of combined spending, which amounted to $853 billion (McCarthy, 2012). Over this 17-year period, the percentage increases in minority purchasing power differ significantly by race, from a gain of 197% for American Indians to 287% for Asians to 170% for blacks. All of these target markets are expected to grow much quicker, in the near future than the white market (McCarthy, 2012). Researchers claim that the buying power of these races will increase by 112% in 2013. Therefore, this means that cultural diversity increases the sales of a business, as well as its profit. If a business plans to sell in a diverse marketplace, then it must be totally able effectively to utilize its diverse workers in significant strategic ways.

Aging Population

The aging populace is both an advantage and a disadvantage for small businesses (McCarthy, 2012). One certain thing, however, is that small organizations will have to reorient their strategies to hurdle the exceptional challenges and opportunities aging people offer (McCarthy, 2012). In the 90s, among the biggest hurdles facing small businesses was access to government regulations, capital, and taxes. Nevertheless, in the new millennium, they can add a new hurdle to the list, the persistent labor shortage. Therefore, businesses lack the required labor, which would enable them to work efficiently (McCarthy, 2012). On an optimistic note, small organizations can exploit this growing section of the population. Marketing strategy and new products will need to be created targeting the elderly generation.