MGTA01H3 Chapter 2: MGTA03 Chapter 2
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MGTA01H3 Full Course Notes
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Mgta03summer2011 chapter 2: understanding the environment of business. It has 4 recognizable phases: peak, recession, trough and recovery. Gross domestic product: gross domestic product (gdp): total value of all goods and services produced within a given period by national economy through domestic factors of production. 2: therefore, the high prices will erase the increase in the amount of money injected into the economy and purchasing power declines. Inflation decreases the purchasing power of the money people make: the cpi: measure of the prices of typical products purchased by consumers living in urban areas. It helps managers analyze five important important sources of competitive pressure and then decide what their strategy will be. Rivalry among existing competitors: rivalry can be seen in activities like intense pricing competition, elaborate advertising campaigns and an increased emphasis on customer service. Buyers: when there are only a few buyers and many suppliers the buyers have a great deal of bargaining power.
