RSM100Y1 Study Guide - Final Guide: Enterprise Resource Planning, Purchasing Power Parity, Gross Domestic Product
Document Summary
External environment: everything outside an organization"s boundaries that might affect it. Organizational boundaries: separates the organization from the environment. However, even within the structure, there are distributors who bring in the products the supermarket sells. These distributors are usually the environment but when they are within the physical structure of the supermarket, they are part of the business and therefore, the organization. Multiple organizational environments: external environments are, in reality, not single entities. Economic environment: the conditions of the economic environment the business operates in. Ways to measure growth: the business cycle, aggregate output and standard of living. Standard of living only improves through increases in productivity: gross domestic product & gross national product, gdp per capita: per head, real gdp: adjusted for inflation, purchasing power parity: principle that exchange rates. Are set so prices of similar goods in foreign grounds. Any activity that adds value to some input, transforming it into an output for a customer.
