BUS 201 Chapter 2: Bus201 Chapter 2.doc

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 201
• Professor: Maureen Fizzell

Document Summary

Organizational boundaries and environments: external environment: everything outside an organization"s boundaries that might affect it. Multiple organizational environments: organizational boundary: separates the organization from its environment, organizations have multiple environments, some, like prevailing economic conditions, affect the performance of almost, elements of the external environment: every business. Economic conditions technology political-legal considerations social issues the global environment issues of ethical and social responsibility the business environment itself emerging challenges and opportunities. The economic environment: economic environment: 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. Main measure of growth is aggregate output: the total quantity of goods and services produced by an economic system during a given period. (an increase in aggregate output is economic growth) The business cycle: business cycle: pattern of short-term ups and downs (expansions and contractions) in an economy.