RSM100Y1 Chapter 2: Chapter 2 Summary Summarize all chapter 2
Document Summary
Chapter 2 understanding the environments of business: organizational boundaries and environments. External environment: everything outside an organization"s boundaries that might affect it -a major role in determining the success or failure of any organization. Organizational boundaries: that which separates the organization from its environment. Major elements of the external environment: economic environment, technological environment, socio-cultural environment, business environment, emerging challenges and opportunities, global environment, political-legal environment. Economic environment: conditions of economic system in which an organization operates. 3 key goals in canadian economic system: economic growth, stability, and full employment. Tools used to measure economic growth: aggregate output, standard of living, gross domestic product, productivity. Business circle: pattern of short-term ups (expansions) and downs (contractions) in an economy. Recession: period during which aggregate output, as measured by real gdp, declines. Depression: particularly severe and long-lasting recession, when the trough of the business cycle extends two or more years.
