MGTA01H3 Chapter Notes - Chapter 2: Genuine Progress Indicator, Core Competency, Deflation

• School: UTSC
• Department: Management (MGT)
• Course: MGTA01H3
• Professor: Chris Bovaird

Document Summary

All businesses operate within a larger external environment. External environment everything outside an organization"s boundaries that might affect it. External environments plays a major role in determining the success/failure of an organization and so managers must be able to face that environment and compete within it. No single firm controls the environment, and so managers need to be proactive and influential of their environment. Economic environment conditions of the economic system in which an organization operates. 3 key goals of an economic system: economic growth, economic stability, and full employment. Today, less than 2. 5% of the canadian population works in agriculture. This shows that due to devising better ways of producing products and improved technology, agricultural efficiency has improved and agricultural production has grown (increase in total output). Business cycle pattern of short-term ups and downs (expansions and contractions) in an economy. It has 4 phases: peak, recession, trough, recovery.