RSM100Y1 Chapter Notes -Enterprise Resource Planning, Purchasing Power Parity, Frictional Unemployment
Document Summary
External environment: everything outside an organization"s boundaries that might affect it. Organizational boundary: that which separates the organization from its environment. The major dimensions and elements of the external environment include: economic environment, technological environment, socio-cultural environment, business environ- ment, political-legal environment, global environment, as well as emerging challenges and opportunities (e. g. outsourcing, viral marketing, and business process manage- ment) Economic environment: conditions of the economic system in which an organization op- erates. Three key goals in the canadian economic system are economic growth, stability, and full employment. Tools used to measure economic growth are aggregate output, standard of living, gross domestic product, and productivity: main threats to stability are inflation and unemployment. Business cycle: pattern of short-term ups and downs (expansions and contractions) in an economy. The business cycles has four recognizable phases: peak, recession, trough, and re- covery. Recession: period during which aggregate output, as measured by real gdp, declines.
