Textbook Notes (368,116)
Canada (161,659)
RSM100Y1 (431)
John Oesch (214)
Chapter 2

Chapter 2 Summary Summarize all chapter 2

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Rotman Commerce
John Oesch

RSM100CHAPTER 2 UNDERSTANDING THE ENVIRONMENTS OF BUSINESSIOrganizational Boundaries and EnvironmentsExternal environment everything outside an organizations boundaries that might affect ita major role in determining the success or failure of any organizationOrganizational BoundariesOrganizational Boundaries that which separates the organization from its environmentMultiple Organizational EnvironmentsMajor elements of the external environment economic environment technological environment sociocultural environment business environment emerging challenges and opportunities global environment politicallegal environmentIIThe Economic EnvironmentEconomic environment conditions of economic system in which an organization operates3 key goals in Canadian economic system economic growth stability and full employmentTools used to measure economic growth aggregate output standard of living gross domestic product productivityEconomic Growth1The Business CircleBusiness circle pattern of shortterm ups expansions and downs contractions in an economyDepressionRecoveryPeakRecessionTroughRecoveryRecessionperiod during which aggregate output as measuredby real GDP declinesDepression Particularly severe and longlasting recession when the trough of the business cycle extends two or more years2 Aggregate Output and the Standard of LivingAggregate output total quantity of goods and services produced by an economic system during a given periodoAggregate outputeconomic growthStandard of living total quantity and quality of goods and services that a countrys citizens can purchase with the currency used in their economic systemoOutput per capita the quantity of goods and services per personooutputpopulation output per capita standard of living3 Gross Domestic Product GDP and Gross National Product GNPGDP total value of all goods and services produced within a given period by a national economy through domestic factors of production all companies within CanadaGNP total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are given all Canadian companiesGPI the Genuine Progress Indicator treats activities that harm the environment or our quality of life as costs and gives them 1
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