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BUS 201 (122)
Chapter 2

CHAPTER 2 NOTES.docx

7 Pages
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Department
Business Administration
Course Code
BUS 201
Professor
Peter Tingling

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Description
CHAPTER 2 NOTEExternal environment consists of everything outside an organization that might effect itmanagers might understand the key features of the external environment and then strive to operate and compete within itorganization boundariesseparates the organization from its environmentsome disturbers walking inside a door are normally considered a part of the environment rather than the organizationbut when inside the store it is essentially a part of the businessmultiple organization environmentprevailing economic conditions affect the performance of almost every businessother dimensions of the environment are much more specific Economic environment refers to the conditions of the economic system in which an organization operates economic growthagricultural production has grown because the total output of the agricultural sector has increasedaggregate output and the standard of livingmain measure of growth is aggregate output the total quantity of goods and services produced by an economic system during a given periodwhen output grows more quickly than population1 output per capita quantity of goods and services per person goes up 2the system provides relatively more of the goods and services that people want
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