Business w02 Understanding Business Environment @1

Chapter 2 :

Understanding
the Environment of Business

Presented by : Anna Riana Putriya
anna_riana@yahoo.com

understanding
The environment of business

Organizational boundaries
Organizational boundaries
and environments Multiple organizational environment
Aggregate output & standard of living, GDP & GNP,
Economic growth
productivity
Economic environment Economic stability Inflation, unemployment

Global economy in 21st century

Product & service technology
Technological environment
Business process technology

Political-
Political-legal environment

Customer preferences and taste
Sociocultural environment
Ethical compliance and responsible business behavior

Redrawing corporate boundaries
Business environment
Emerging challenges and opportunities Outsourcing, Viral marketing,
in the environmet of business Business process management

Organizational Boundaries
That which separates the organization from its
environment

External Environments
mission—
All businesses —regardless of their size, location or mission—
operate within a larger external environment.


Dimensions of the External Environment


ECONOMIC ENVIRONMENT

Conditions of the economic system
in which an organization operates


Key Goals of Economic System

• Economic Growth • Economic Stability
– Aggregate Output and – Inflation
Standard of Living
– Gross Domestic – Unemployment
Product (GDP) & Gross • Recessions and
National Product Depressions
(GNP)
• Purchasing Power
• Global economy in 21st
Parity century
– Productivity
– Balance of Trade
– National Debt


Aggregate Output and Standard of Living

• Business cycle is a pattern of short-term ups and downs
short-
(expansions and contractions) in an economy

• Aggregate output is the total quantity of goods and services
produced by an economic system during a given period

• Standard of living is the total quantity and quality of goods
country’
and services that a country’s citizens can purchase with the
currency used in their economic system


Gross Domestic Product

• GDP, or gross domestic product, is the total value of all
product,
goods and services produced within
a given period by a national economy
through domestic factors of production

• GNP, or gross national product, is the total value of all
product,
goods and services produced by a national economy
within a given period regardless of
where the factors of production are located


What Is Purchasing Power Parity?

Principle that exchange rates are set so that the prices
of similar products in different countries
are about the same


What Is Productivity?

Measure of economic growth that compares
how much a system produces with the
resources needed to produce it


What Is Balance of Trade?

Economic value of all the products that a country
exports minus the economic value of imported products

What Is National Debt?
Amount of money that a government owes its creditors


What Is Stability?

Condition in an economic system
in which the amount of money available
and the quantity of goods and services produced
are growing at about the same rate


What Is Inflation?
Occurrence of widespread price increases throughout an economic
system

What Is Unemployment?
Level of joblessness among people actively seeking work in an
economic system


Recessions and Depressions

• Recession is a period during which aggregate output,
as measured by real GDP, declines

• Depression is a particularly severe and long-lasting
long-
recession


The Global Economy in the 21st Century

Major forces driving the economy:
– The information revolution will continue to enhance
productivity across all economic sectors.
– New technological breakthroughs will create entirely new
industries.
– Increasing globalization will create much larger
markets while fostering tougher competition among
global businesses.


TECHNOLOGY

All the ways by which firms create value for their
constituents


Product and Service Technologies

Technologies employed for creating products
services—
—both physical goods and services—
for customers


Business Process Technologies

Business process technologies are used not so much to create
firm’
products as to improve a firm’s performance of internal
operations.
– Enterprise Resource Planning, or ERP, is a large-scale
ERP, large-
information system for organizing and managing a
firm’
firm’s processes across product lines, departments and
geographic locations


ERP Applications


POLITICAL-
POLITICAL-LEGAL ENVIRONMENT

Conditions reflecting
the relationship between business
and government


SOCIOCULTURAL ENVIRONMENT

Conditions including the customs, mores, values
and demographic characteristics of the society in
which an organization functions


Customer Preferences and Tastes

• Customer preferences and tastes vary both across and within
national boundaries.
• Consumer preferences can vary widely within the same
country.
• Consumer preferences and tastes change over time.


BUSINESS ENVIRONMENT

• Redrawing Corporate Boundaries
– Core competencies are the skills and resources
with which an organization competes best
and creates the most value for owners
• Disruption management is a method by
which some organizations are responding
to crises in their environments


Emerging Challenges and Opportunities in the Business
Environment

• Outsourcing is the strategy of paying suppliers and
distributors to perform certain business processes or to provide
needed materials or services

• Viral marketing is a strategy of using the Internet and word-
word-
of-
of-mouth marketing to spread product information

• Business process management is an approach by which firms
department-
move away from department-oriented organization and toward
process-oriented team structures that cut across old
process-
departmental boundaries


Business w02 Understanding Business Environment @1

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Andere mochten auch

Andere mochten auch (10)

Ähnlich wie Business w02 Understanding Business Environment @1

Ähnlich wie Business w02 Understanding Business Environment @1 (20)

Mehr von univ

Mehr von univ (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Business w02 Understanding Business Environment @1