introduction to business 471.13 week 1 winter 2012 bruce duggan providence university college
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Introduction to Business
471.13Week 1
Winter 2012Bruce Duggan
Providence University College
IB
everything• except people
introduction• fast
• not details
To Do
by next Tue groups read
• syllabus
• ch 1 & 2
find
To Do
by Fri groups read
• syllabus
• ch 2
find• “1 thing I didn’t understand”
What is business? Why does it exist?
What is business? Why does it exist?
Why do businesses exist? What do they do? Are they good things? Could something else do it better?
The Goal of the Course:
ch 2ch 2
“Understanding the Environments of Business”
ch 2 Learning Objectives
org boundaries
org environments what are they
• economic
• technological
• socio-cultural
• global
• political-legal
Why care?
Canada now sick or healthy? What’s coming?
Organizational Boundaries
imagine you’re the owner What can you control?
• that’s inside your boundary
What can’t you control (but effects you)?• that’s your environment(s)
ch 2 Learning Objectives
org boundaries
org environments what are they
• economic
• technological
• socio-cultural
• global
• political-legal
Why care?
Canada now Sick or healthy? What’s coming?
EnvironmentsEnvironments
pg 42
Economic Environment
“The conditions of the economic system in which an organization operates”
“The Economy”
Economic Environment
3 issues1. stability
2. growth
3. employment
What’s missing?
Economic Environment
1. 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.”
Economic Environment
1. stabilitya. business cycle
b. inflation• deflation
c. unemployment
“The typical pattern of short-term ups and downs—expansions and contractions—in an economy”
Economic Environment
1. stabilitya. business cycle
• phases peak recession trough recovery
Economic Environment
1. stabilitya. business cycle
change in GDP per capita
-10%
0%
10%
20%
“in real terms”
Economic Environment
1. stabilitya. business cycle
change in real GDP per capita
1800 1850 1900 1950 2000
Lawrence H. Officer and Samuel H. Williamson, "Annualized Growth Rate of Various Historical Economic Series," MeasuringWorth, 2010. URL http://www.measuringworth.com/growth/
-10%
0%
10%
20%
Economic Environment
1. stabilitya. business cycle
change in GDP per capita
Centre for the Study of Living Standards. Aggregate Income and Productivity Trends: Canada vs United States http://www.csls.ca/data/ipt1.asp
-5%
0%
10%
1962 1972 1982 1992 2002
Canada
US
Economic Environment
1. stabilitya. business cycle
b. inflation• deflation
c. unemployment
Economic Environment
1. stabilitya. business cycle
b. inflation• measuring
cpi “Prices of typical products purchased by consumers.”
?
“Widespread price increases in an economic system.”
Economic Environment
1. stabilityb. inflation
-50%
-25%
0%
25%
50%
75%
100%
1300 1400 1500 1600 1700 1800 1900 2000
Economic Environment
1. stabilityb. inflation
CanadaUSUK
-10%
0%
10%
20%
1916 1936 1956 1976 1996
Economic Environment
1. stabilitya. business cycle
b. inflation
-5%
0%
10%
1962 1972 1982 1992 2002
Economic Environment
Issues1. Stability
2. Growth
3. Employment
4. Fairness
What’s missing?
