The first area to look at will be the Economic environment and its effect on the WDC. The economy has been on a slight incline for the company compared to the immediate post 9-11 tragedy. (WDC has four distinct operational areas; each one will be affected differently.) For the last couple of years WDC has been struggling to maintain their focus on profits and to provide stakeholder value. Recently, since the start of this fiscal year, we are seeing a rise in stock price due to some positive and negative aspects to the economic environment.(Disney) The Political force, described below � ties into this. Economy can be monitored somewhat looking at the unemployment perspective the US is looking at. Standing at a record high of 6% we feel the effect in the people who contribute capital and feed the WDC. The ripple that this number makes over the board has been seen by WDC. Tax cuts have been proposed and applied by the Bush Administration which may have led to the increase of stock in the past month. To summarize this Economic outlook, WDC and the industries as a whole are looking at what may soon be a Recessionary Market based on market research:

U.S. gross domestic product (GDP) grew at an annual rate of 1.4 percent

in the fourth quarter of 2002 -- a rate less than half of its recent

historical trend -- and seems unlikely to do much better in the first or

second quarters. Without stronger growth, it seems unlikely that much hiring

will follow.

"We are talking about an economy averaging about 30 miles per hour in a 60-

mph speed zone," said Lehman Brothers economist Joe Abate. "That keeps

pressure on the unemployment rate, forcing it to continue to rise. By

summer, we could have 6.4 percent unemployment."

Consumer spending has in part been supported by super-low interest rates

that have led to strong demand for housing, raising home values, improving

consumer wealth and letting people refinance their mortgages at lower rates.

(CNN/Money)

Due to so many varied happenings in the world tying Economic environment in to the Political-Legal aspects of the Societal Environment is added in this analysis. With a war in Iraq we see one of the most influential Societal Environmental changes/forces put in effect for this company. (*internal*WDC has taken precautionary measure to freeze hiring in the amusement parks division.)