MGTA01H3 Lecture 3: MGTA01 LECTURE 3 summer 2015

• School: UTSC
• Department: Management (MGT)
• Course: MGTA01H3
• Professor: mcc

Document Summary

Lecture 3: chapter 2: understanding the environment of business. External environment: everything outside an organization"s boundaries that might affect it. Managers should not just react to it rather act to influence their environment. Economic environment: conditions of the economic system in which a organization operates. Mcdonald"s operates on moderate growth, moderate unemployment & low inflation. 3 goals of economic system: economic growth, economic stability, & full employment. Purpose of an economic system: assemble / organize resources; make things people want; so people will buy them; creating profits for businesses (this wouldn"t apply in communist settings); so everyone will be better off. Measuring economic growth: aggregate output, standard of living, gross domestic product & productivity. Today less than 2. 5% of the population works in agriculture, it has grown because we have found better ways to do it. Business cycle: pattern of short-term ups & downs (expansions & contractions) in an economy.