MGTA01H3 Chapter Notes - Chapter 2: Business Cycle, Government Spending, Economic System

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Published on 10 Nov 2010
School
UTSC
Department
Management (MGT)
Course
MGTA01H3
Chapter 2. ppt / 01
Laurence, Hugh
MGTA03, Lec. 03
Understanding the Environment of Business
The Business in its Economic Context and its Economic Performance
Business Environments
o Business is an economic organization that engages in exchanges
o Each business is therefore separate from other businesses, and other organizations
o This means every business exists in a wilder environment
o $EXVLQHVVKDVDQ³LQVLGH´D³ERXQGDU\´DQGDQ³RXWVLGH´
o 7KH³RXWVLGH´LVWKHHQYLURQPHQW
o Everything that is NOT the business
o But that affects the business
o %XVLQHVVHVKDYHPXOWLSOH³RXWVLGHDQGPXOWLSOHHQYLURQPHQWV
o Typical environments
o Economic environment
o Technological environment
o Social environment
o Political environment
o Legal environment
o (DFKHQYLURQPHQWLVDQ³RXWVLGH´WKDWDIIHFWVWKHEXVLQHVV³LQVLGH´DVWKHEXVLQHVV
interacts over its boundary
o We will look at the economic environment today
o Text has some other comments on the other environments
Economic Environment
o In Canada
o What are the goals of the Canadian economic system
o How do we measure performance of the economy
o What are the threats to achieving the goals
o Goals of the Canadian Economic System
o Growth
o Stability
o Full employment
o Growth means
o Producing more of the things people want
o So they will purchase more of them
o To create profits for the suppliers
o And a better standard of living for customers
o In order to grow
o The economy must produce more
o It must be efficient
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