ther the company uses its environment as an opportunity or identifies it as a threat.Demographic FactorsAs discussed, Darden consists of four restaurants, each unique, but with many similarities. The first environmental factor that should be addressed is demographics. Demographics are primarily concerned with the population size, age, structure, geographic distribution, ethnic mix, and income distribution. (Hitt, Ireland, & Hoskisson, 2001) Red Lobster and Olive Garden have done an excellent job in targeting families. However, there is another market that must be tapped. A map of Red Lobster locations (see appendix 5) shows a strong presence in the eastern United States and a moderately strong presence in the western United States. A similar strategy appears to have been implemented for Olive Garden (see appendix 6). This strong Eastern presence contributes to Red Lobsters and Olive Gardens strategic advantages. However, Darden needs to look west if it is to capture the aging population. According to an article by University of Arizona economist Marshall J. Vest, Every year Arizona has a net increase of about 23,500 seniors, and their new money contributes another $ 350 million in direct spending annually. The total trickle impact becomes statewide spending of $ 615 million, which supports 10,000 additional jobs paying $ 210 million a year. (Vest, 1999). With Baby Boomers retiring and moving to warmer locations, Darden must quickly expand into the Southwest.Another demographic development that presents an opportunity is the growth of consumers with disposable income. According to a paper by Patricia M. Johnson and Richard F. Outcalt, there are several different spending categories in American culture. The ones relevant to Darden are SINKs and DINKs (that's Single Income No Kids and Dual Income No Kids) and "Empty Nesters" or "Aging Baby Boomers" (We call them "Reborn SINKs & DINKs!"). (Johnson & Outcalt, 2000). These market...
