Key Industry Trends regarding H & R Block :: essays research papers

Key Industry TrendsEconomicsMany factors of the economy champion to denominate certain edits in the tax industry. The Gross Domestic crossroad has been calculated at an increase of 3.9% the first quarter of 2004. Consumer spending has likewise increased .4% from the last year. Both of these statistics whitethorn indicate an upward trend in the nations economy. A consumer may curb more(prenominal) disposable income therefore, they may be more apt to spend their tautologic money on a tax breeding service. This would reveal a positive effect for H&R Block. The unemployment rate has increased nationwide while the employment rate is decreasing. This may result in a decrease of the amount of tax returns that H&R Block files annually, callable to the amount of taxpayers that befuddle become unemployed. Either these passel may have no taxes to file due to their job loss, or they may non have the extra money to pay for a tax facility service. If a soulfulness is out of work then they may have the extra time to file their taxes in their own time.DemographicsThere are many trends in national population characteristics that indicate both opportunities and threats to H&R Block. The U.S. Census Bureau predicts that the U.S. will experience a titanic increase of the Hispanic, Asian, and many other ethnic populations. This will create a large demand for employees that are at least bi-lingual. H&R Block also has an opportunity to open temporary offices in separate of the country that would benefit consumers requiring an employee to speak their native language.The U.S. Census Bureau has also indicated an increase in the percentage of the nations population that is college educated. This may pose a threat to the tax preparation industry. A person that has received at least a 4-year college degree may rule the knowledge to prepare their own taxes, thus eliminating their demand for a tax preparation service. On the other hand, their college education may indic ate an top executive to earn a better income, so they would require the services of an cheek like H&R Block.With the baby boomers now entering their fifties, birthrates indicate fewer births and more deaths among the population. This would obviously result in less people needing to file taxes, therefore less demand for a tax preparation service.It is important for an organization to analyze the appropriate economic factors and respond with the rectify actions so that they may maintain a competitive advantage within their industry.