Bussiness Management Notes

Only available on StudyMode
  • Download(s) : 56
  • Published : November 6, 2012
Open Document
Text Preview
1

CHAPTER 1: THE BUSINESS ENVIRONMENT
PBU0045 INTRODUCTION TO BUSINESS MANAGEMENT

LEARNING OBJECTIVES
2 

Upon completion of this chapter, you should be able to:
1.

Define the nature of business and identify its main goals and functions. Describe the external environments of business and discuss how these environments affect the success or failure of any organization. Describe the different types of global economic systems according to the means by which they control the factors of production. Show how markets, demand, and supply affect resource distribution. Identify the elements of private enterprise and explain the various degrees of competition in the economic system.

2.

3.

4. 5.

6.

Explain the importance of the economic environment to business and identify the factors used to evaluate the performance of an economic system.

THE CONCEPT OF BUSINESS AND PROFIT
3





Business – An organization that provides (sells) goods or services to earn profits. Profits – The difference between a business’s __________ and its __________.

THE CONCEPT OF BUSINESS AND PROFIT (CONT.)
4



The Benefits of Business
– –

Provide goods and services
Employ workers which results in increased __________ and __________ __________ and opportunities Enhanced __________ of owners and stockholders Support for __________ and community leadership

– – –

THE EXTERNAL ENVIRONMENTS OF BUSINESS
5



External Environment


Everything __________ an organization’s __________ that might affect it

6

ECONOMIC SYSTEM
7



Economic System


A nation’s system for allocating its __________ among its citizens, both individuals and organizations

8

TYPES OF ECONOMIC SYSTEMS
9



Planned Economy


A _____________ government controls all or most factors of production and makes all or most production and allocation decisions for the economy.



Market Economy


Individual _______________control production and allocation by creating combinations of supply and demand.

TYPES OF ECONOMIC SYSTEMS (CONT.)
10



Planned Economy

- Communism – individuals contribute according
to their abilities and receive benefits according to their needs. •

The _____________ owns and operates all factors of production. The _____________ assigns people to jobs and owns all businesses and controls business decisions.



TYPES OF ECONOMIC SYSTEMS (CONT.)
11




Market Economics
Capitalism
– – –

The government supports ______________ ownership and encourages _________________. Individuals choose where to work, what to buy, and how much to pay. Producers choose who to hire, what to produce, and how much to charge.



Market


A mechanism of exchange between buyers and sellers of a good or service.

TYPES OF ECONOMIC SYSTEMS (CONT.)
12



Market Economics
Mixed Market Economy




Features characteristics of both planned and market economies.

THE ECONOMICS OF MARKET SYSTEMS
13



Demand


The willingness and ability of __________ to purchase a product (a good or a service).



Supply


The willingness and ability of __________ to offer a good or service for sale.

ECONOMIC INDICATORS
14



Economic Indicators


Statistics that show whether an economic system is strengthening, weakening, or remaining stable Economic __________ indicators




Aggregate output, standard of living, gross domestic product, and productivity



Economic __________ indicators


Inflation and unemployment

ECONOMIC INDICATORS (CONT.)
15



_______________


Growth during the business cycle is measured by the total quantity of goods and services produced by an economic system during a given period.



_______________


The total quantity and quality of goods and services that consumers can purchase with the currency used in their economic system.

ECONOMIC INDICATORS (CONT.)...
tracking img