BUS 201 Chapter 2: CHAPTER 2 NOTES.docx

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 201
• Professor: Peter Tingling

Document Summary

External environment consists of everything outside an organization that might effect it. But when inside the store, it is essentially a part of the business multiple organization environment. Prevailing economic conditions affect the performance of almost every business. Other dimensions of the environment are much more specific. Economic environment refers to the conditions of the economic system in which an organization operates economic growth. Agricultural production has grown because the total output of the agricultural sector has increased aggregate output and the standard of living. Main measure of growth is aggregate output: the total quantity of goods and services produced by an economic system during a given period. When output grows more quickly than population: output per capita (quantity of goods and services per person) goes up, the system provides relatively more of the goods and services that people want business cycle. Growth and contraction pattern of short term ups and downs in an economy.