griffin introduction to business chapter 02

7/21/2019 Griffin Introduction to Business Chapter 02

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Copyright 2005 Prentice-Hall, Inc.

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ChapterChapter

22

Understanding theUnderstanding theEnvironments ofEnvironments ofBusinessBusiness


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Chapter OutlineCha

pter Outline

Organizational Boundaries &Organizational Boundaries &EnvironmentsEnvironments

Economic EnvironmentEconomic EnvironmentTechnological EnvironmentTechnological Environment

Political-Legal EnvironmentPolitical-Legal Environment

Sociocultural EnvironmentSociocultural EnvironmentBusiness EnvironmentBusiness Environment


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Organizational BoundariesOrganizational Boundaries& Environments& Environments

Eternal EnvironmentEternal Environment

Organizational Boundar!-Organizational Boundar!-Separates Organization "romSeparates Organization "rom

EnvironmentEnvironment


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#imensions of#imensions ofEternal EnvironmentsEternal Environments

TheThe

BusinessBusiness

OrganizationOrganization

EconomicEconomic

TechnologicalTechnological

PoliticalPolitical-Legal-Legal

BusinesBusines

ss

SocioculturalSociocultural


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Economic EnvironmentEconomic Environment

Business C!cleBusiness C!cle

$ggregate Output$ggregate Output

Standard of LivingStandard of Living %ross #omestic Product %#P'%ross #omestic Product %#P'

(eal(eal

)ominal)ominal

%ross )ational Product %)P'%ross )ational Product %)P'


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ess Business C!cleBusiness C!cle

ExpansionExpansion

ContractionContraction


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* %#P Change* %#P Change"rom Previous Period"rom Previous Period

Source: U.S. Department of Commerce, Bureau of EconomicAnalysis


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U+S+ %#P & (eal %#PU+S+ %#P & (eal %#P

(In $(In $

Billons)Billons)

Source: U.S. Department of Commerce, Bureau of EconomicAnalysis


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%#P & %#P Per Capita%#P & %#P Per Capita


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Purchasing Po,er Parit!Purchasing Po,er Parit!Big ac .nde Based On $t ar/et Echange (ate 01203245'Big ac .nde Based On $t ar/et Echange (ate 01203245'

S Big !ac " $#S Big !ac " $#%erage%erage

(%erage o& ' Cities)(%erage o& ' Cities)

Source: The New Yor Times, !Bi" #ac $n%e&', Dec. ()th, *++. http:--www.economist.com-marets-i"mac-%isplayStory.cfm/story0i%123+2)(


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ess U+S+ Productivit!U+S+ Productivit!


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%#P * Change "rom%#P * Change "romPreceding PeriodPreceding Period

Source: U.S. Dept. of Commerce4 Bureau of Economic Analysis

Expansion %s ecession %sExpansion %s ecession %s

*epression+*epression+

5

,#,#rr.uarter /00'.uarter /00'


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* %#P Change vs+* %#P Change vs+* La6or Productivit! Change* La6or Productivit! Change

Source: U.S. Department of Commerce, Bureau of Economic Analysis U.S. Department of 6aor4 Bureau of 6aorStatistics


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U+S+ BalanceU+S+ Balanceof Trade 1443'of Trade 1443'

S Bu1s $23S Bu1s $23Trillion o&Trillion o&

4oos5Ser%ices4oos5Ser%ices

S Sells $20S Sells $20Trillion o&Trillion o&

4oos5Ser%ices4oos5Ser%ices

S Balance o&S Balance o&TraeTrae

-$300 Billion-$300 Billion

Source: U.S. Census Bureau4 7orei"n Tra%e Statistics 8*++2 Annual 9i"hli"hts, http:--www.census."o;-forei"n4tra%e-statistics-hi"hli"hts-annual.html


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U+S+ )ational #e6tU+S+ )ational #e6t

57or To%ay


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Economic Sta6ilit!Economic Sta6ilit! .nflation- 7idespread Price.nflation- 7idespread Price

.ncreases .n $n Economic S!stem.ncreases .n $n Economic S!stem

Unemplo!ment- LevelUnemplo!ment- Levelof 8o6lessness $mongof 8o6lessness $mongThose $ctivel! See/ing 7or/Those $ctivel! See/ing 7or/.n $n Economic S!stem.n $n Economic S!stem

(ecession vs+ #epression(ecession vs+ #epression


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U+S+ Consumer Price .ndeU+S+ Consumer Price .nde#ec+- $ll Ur6an Consumers'#ec+- $ll Ur6an Consumers'

267/-267'- " 200267/-267'- " 200

Source: U.S. Department of 6aor4 Bureau of 6aor Statistics


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U+S+ Unemplo!ment (ateU+S+ Unemplo!ment (ateSeasonall! $d9usted on 01230'Seasonall! $d9usted on 01230'

,,, 225#050', 225#050'

Source: U.S. Department of 6aor4 Bureau of 6aor Statistics,http:--%ata.ls."o;-=D?-ser;let-Sur;ey>utputSer;let


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anaging the U+S+anaging the U+S+

Econom!Econom! "iscal Polic!- #etermines :o,"iscal Polic!- #etermines :o,

%overnment Collects2Spends%overnment Collects2Spends

(evenues (evenues

onetar! Polic!- #eterminesonetar! Polic!- #etermines

Size of )ation;s one! Suppl!Size of )ation;s one! Suppl!


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onetar! Polic!onetar! Polic!

Interest atesInterest ates

SpeningSpeningTighTigh

tt

Interest atesInterest ates

SpeningSpeningEas1Eas1


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U+S+ Prime .nterest (ateU+S+ Prime .nterest (ate8an+0'8an+0'

"o#rce$ %oar& o' (o)ernor* o' the +e&eral e*er)e "y*te


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Technological EnvironmentTechnological Environment

Product2ServiceProduct2Service

TechnologiesTechnologies

Business ProcessBusiness Process

Technologies- EnterpriseTechnologies- Enterprise(esource Planning(esource Planning


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Earnings & EducationalEarnings & Educational$ttainment 0


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Political-Legal EnvironmentPolitical-Legal Environment

(egulation- #efines(egulation- #efines

(elationship Bet,een(elationship Bet,een

%overnment & Business%overnment & Business

%overnment = Pro vs+%overnment = Pro vs+

$nti-Business Sentiment$nti-Business Sentiment


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"oreign #irect .nvestment"oreign #irect .nvestmentConfidence .nde Oct+ 1445'Confidence .nde Oct+ 1445'

Source: A.T. @earney Consultin", http:--www.atearney.com-main.taf/p13,2,(,

Corporate In%estors Con?enceLo> Con?ence @igh Con?ence@igh Con?ence


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Sociocultural EnvironmentSociocultural Environment

Customer Preferences2Tastes- >ar!Customer Preferences2Tastes- >ar!

.nternational.nternational

)ational)ational

Ethical Compliance &Ethical Compliance &

(esponsi6le Behavior(esponsi6le Behavior

EnronEnron

$rthur $ndersen$rthur $ndersen


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Copyright 2005 Prentice- 2-2

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Business EnvironmentBusiness Environment

(edra,ing Corporate Boundaries-(edra,ing Corporate Boundaries-

Core CompetenciesCore Competencies

Challenges2OpportunitiesChallenges2Opportunities

OutsourcingOutsourcing

>ertical .ntegration>ertical .ntegration

>iral ar/eting>iral ar/eting Business Process anagementBusiness Process anagement

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