Reference no: EM132184082

As Marketing Manager at Gerlach Publishing, which exclusively publishes textbooks for Colorado public schools, you are responsible for researching and monitoring the company's macroenvironment and proposing necessary changes in marketing strategy. Key decisions you must make include: which changes in the macroenvironment are important to Gerlach's marketing efforts, what are the likely effects of those changes, and how Gerlach should respond to these changes. Gerlach produces science, social studies, math, and language arts textbooks for first through twelfth grade. In the past, the macroenvironment for your company has been fairly stable. However, the information you've received from your research team shows that this is starting to change. The first three reports deal with long-term changes in the macroenvironment. Review the reports before you decide which next steps to recommend to your supervisor, the Vice President of Marketing. Historically, the number of school-age children in Colorado has increased at a gradual rate each year. However, recent trends indicate that the population as a whole is aging, and the number of school-aged children has begun to decline. Trends suggest that it will continue to decline over the next decade. Additionally, the number of non-English-speaking students is expected to triple in the same time period, to around 13% of the total student population. Gerlach currently buys paper from a local supplier to print its textbooks. Deforestation has now resulted in a shortage of trees available for logging. Also, the remaining forests are coming under increasing protective legislation, which means even fewer trees can be logged. Additional legislation has recently been passed requiring that paper companies produce more recycled paper, which costs more to produce than traditional paper. In Gerlach’s market area, the public school system is increasingly being seen as an outdated institution focused on standardized tests and behavior rather than true learning. As a result, parents are choosing other options. Homeschooling, in particular, is on the rise; a market that does not currently buy from Gerlach.

Question: After reviewing the reports of long-term changes in the macroenvironment, you must pick one element that you think Gerlach should respond to first?

A) Demographic Environment

B) Natural Environment

C) Cultural Environment