MGTA01H3 Chapter 2: Chapter 2
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MGTA01H3 Full Course Notes
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Document Summary
External environment everything outside an organization"s boundaries that might affect it no single firm can control the environment, managers should not simply react to changes; they should be proactive and at least t ry to influence their environment. Economic environment conditions of the economic system in which an organization operates. The business cycle pattern of short term ups and downs (expansions and contractions) in an economy. Recession period, during which aggregate output, as measured by real gdp, declines. Depression particularly sever and long lasting recession. Aggregate output total quantity of goods and services produced by an economic system during a given period an increase in aggregate output is growth. standard of living total quantity and quality of goods and services that a country"s citizens can purchase with the currency used in their economic system. Assemble/ organize resources; make things people want; so people will buy them; creating profits for businesses; so everyone will be better off.
