REI Marketing Environment Worksheet
List the current characteristics of each environmental factor as they relate to REI.

U.S. Economy
How does the current U.S. economy affect REI retail operations?

1. If the country was in a depression that would affect REI retail operations. People would begin to adjust their spending habits and would cut back on buying items that they don’t necessarily need such as a vast array of REI products. This would decrease REI sales which in turn would decrease revenue.

2. An economic downturn would not only affect retail operations it would potentially cost employees their jobs, or at the very least they would have to take pay cuts in order for REI to stay alive while the economy recovers.

Global Economy
How does the current global economy affect REI retail operations?

1. One example how the global economy would affect REI retail is if their products were purchased from overseas distributors and the currency values were to increase. REI would have to raise the purchase price of their products in order to turn a profit. The risk of doing that would be losing customers because they are charging more then consumers can afford or the consumer feels they can get a better price with REI’s competitors.

2. REI has joined other business to assist in banning and eliminate fair labor violations. Fair labor is an important issue. Everyone wants to be treated fairly in every aspect of business. REI joining along side of other business to eliminating these types of issues sends an important message to consumers. Knowing that you are purchasing items from a company that respects people gives you a sense of pride. It also may ensure that you are a repeat customer which will increase sales and revenue.

Legal and Regulatory Environment
What types of legal and regulatory forces affect REI in the U.S.?

1. The first legal and