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Friedrich MGNT 3165 21 February 2011 A Response to Woman Power: The Rise of the Sheconomy The roles of women have gone through many phases in history. In the beginning they were expected to remain in the house as housekeepers and mothers. As time went on women migrated toward jobs in the labor force. In todays society women are more equal to men than they have ever been. With this equality comes a newly acquired role. In Belinda Luscombes article Woman Power: The Rise of the Sheconomy, she states that women make 85% of the buying decisions and hold sway over 51.3% of the nations private wealth (Luscombe). Now that women have so much authority in what is purchased, a Sheconomy has arisen (Luscombe). In order for businesses to continue to thrive, managers have to take the power women have into account and evaluate whether or not their companies are conducive to this new women-driven economy. Now that women have a profound role in todays economy managers have to take to environmental scanning in order to stay relevant in the marketplace. From authors Plunkett, Attner, and Allen of Management: Meeting and Exceeding Customer Expectations, environmental scanning is the process of collecting information about the external environment to identify and analyze trends (Plunkett, Attner, and Allen). As more managers scan the environment they find that women are the key consumers who turn into customers and not just one-time buyers. Women are a directly interactive force of a companys external environment. With women having a huge say-so in buying decisions, managers have to alter company

Middleton 2 strategies in order to stay on top. The key to gaining a competitive advantage is how a firm adapts to the challenges (Plunkett, Attner, and Allen). In order for managers to ensure that their company maintains relevant in todays society, they have to see the needs of women and adapt. Along with adapting to the needs of women, companies also interact with their environment by seeking feedback. Managers are not simply satisfied with environmental scanning alone; they seek out customers to provide feedback of how the company is operating. Midas is one of these companies interacting with their environment. They sensed that automobile repairs are not a joyous occasion to many consumers so they sought feedback from customers in order to make the proper changes to adapt (Luscombe). Previously a company such as Midas would notice trends in the frequency of customers and would adapt to strategies similar to competitors, but with the newly found Sheconomy managers are seeking answers from women (Luscombe). Every company is responsible to its stakeholders: among the list of stakeholders are customers. As long as women maintain the majority of the economys buying power, the environment managers are accustomed to will continue to alter. Now that the buying power of women is steadily impacting the economy, managers are reevaluating their planning and decision making strategies. Instead of targeting a wide variety of consumers, managers are narrowing their scope to focus more on women. By focusing on women, managers have resorted to in-home interviews, women-friendly programs, and creating women forum groups (Luscombe). In order for companies to appeal to women managers have to create products and services that pique interest. It is not sufficient anymore to create a product that companies hope women consumers will migrate towards. Women have a more comprehensive decision process states author of three books on marketing to women, Marti Barletta (Luscombe). They are not satisfied with the first product that appears to satisfy a certain

Middleton 3 criteria. Managers now have to take the womens decision process into consideration when strategizing their products. They now have to ensure that their product is not just the average in the marketplace. Upon research of todays economy, marketing researchers have found that women hold the majority of the buying power in their households. This change in society is the driving force for managers seeking longevity in the business environment. Managers are used to adapting to changes in their environment, but within a Sheconomy companies are beginning to think outside the box (Luscombe). As mentioned in Luscombes article, companies take to different strategies to try and reach their women consumers. Best Buy created Womens Leadership Forum groups, which are commonly referred to as WOLFs (Luscombe). These groups are composed of female employees and customers who assist Best Buy with interior design concepts for their stores. Wolf groups are an example of new strategies managers are using to combat this change in society. Overall, it is evident that women have a new role in society. This new role encompasses the ability to dictate buying decisions in the economy. Women have now created a Sheconomy that managers have to adapt to in order for their companies to remain in business (Luscombe). Companies such as Midas and Best Buy were quick to uncover womens growing power, and to incorporate more of their needs into business strategies. A change in society has arrived, and it has an effect on businesses. In this Sheconomy women have the majority of buying power, and if managers do not adapt to this change their businesses will suffer (Luscombe).

Middleton 4 Works Cited Luscombe, Belinda. Woman Power: The Rise of the Sheconomy. Time Magazine. CNN. 22 Nov. 2010. Web. 13 Feb. 2011. Plunkett, Warren R., Raymond F. Attner, and Gemmy S. Allen. Management: Meeting and Exceeding Customer Expectations. 9th ed. Ohio: Thomson South-Western, 2008. Print.