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Canada (161,809)
MGTA01H3 (583)
H Laurence (25)
Chapter 2

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Management (MGT)
H Laurence

Chapter Two Understanding the Environments of BusinessThe Economic EnvironmentAll businesses regardless of size operate within larger external environmentExternal Environment everything outside an organizations boundaries that might affect itManagers must understand their environment and learn to operate an compete in itNot possible for managers to change environment but they should try and influence itEconomic Environment conditions of the economic system in which an organization operatesMacDonald functions in an environment characterized by moderate growth moderate unemployment and low inflationModerate unemployment means that most ppl can afford to eat out but it also means that they must pay higher wagesLow inflation means it pays relatively constant prices for its supplies but cant really increase the prices it charges consumersEconomic GrowthAt one time half of cdn population produced foodNow only 25 work in agricultureAgriculture has become more efficient therefore it has grownThe Business CycleTo know if an economic system is growing or not u must look at the business cycleBusiness Cycle patter of shortterm ups and downs in an economyRecession period during which aggregate output as measured by real GDP declinesDepression particularly severe and long lasting recessionbusiness cycle has 4 stages peak recession trough and recoverylater half of the 1990s cdn economy was expandingthought that business cycle was the past until 2000 when tech stocks droppedAggregate Output and the
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