Pestle Analysis of Canon Company

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INTRIDUCTON TO BUSINESS
Business
Activity – buying and selling of goods and services
Two types of factor are involve they are buyers and sellers
The profit is anticipated
Standard of living
The amount of goods or services purchased by an individual
Quantity of life: - General well being of a society in terms of freedom, clean environment, health care safety free time that leads to satisfaction. Organization
Profit organization
Non – profit organization
Non – profit organization- organization whose goods do not include making profit for each owner. These organizations do not strive for making profit in case if these organizations profit again is invested welfare of the society. Profit: - π = TR-TC (total revenue- total cost)

TR= P*Q (price * quantity)
TC= TVC+TFC (total variable cost +t total fixed cost)
Profit is the excess amount that is generated by doing some economic activities it is grater then the invested cost
TR>TC=P
Profit organization -:

Business environment
1. Economic environment
a. Freedom of ownership
b. Contract laws ( laws help to do business easily)
c. Elimination of corruption
d. Tradable currency ( currency that can be used easily in a business) e. Minimum taxes and regulations
[The compulsory payment in terms of currency is tax]
Tax can be administrative as well as development
2. Technology environment
a. Information technology
b. Data banks
c. Bar codes

3. Competitive environment
a. Customer service
b. Stakeholder recognition
c. Employee service
d. Concern for the environment
Stakeholders are those people who have got the concern about the particular particular business though they are not directly involved it. 4. Social environment
a. Diversity
b. Demographic changes ( population changes)
c. Family changes
Organization: - organization is a legal person that can be sued by other. Entrepreneur: - a person who risk money and time to start and manage a business. Risk is the situation in a business when entrepreneur takes of loosing time and money and a business that may not proof profitable. Standard of life: - the amount of goods and services people can buy with the money they have. It also depends on purchasing power and per capital income. 5. Global business environment: - it is the process in which the worlds become smaller and product produce one corner of the world can be easily access by another corner of the world. The process of globalization is making the world smaller.

1. Capitalistic economy: - it is an economy in which all or most of the production and distribution privately owned and are operated for profit. Adam smith is considered as the father of capitalism. He believes that the freedom vital to survival of any economy.

2. Socialistic economy: - a system in which the states makes all economic decisions and owns all the major forms of production. Carl max is the father of communism. One problem with it is that the government has no way of knowing what to produce. As a result shortages of many items may develop.

3. Free market economy: - it is the system in which decisions about what to produce, for whom to produce, and in what quantities are to produce decides by the market that is by buyers and sellers. Capitalism is the e.g. Of free market economy. Command economics

Economics system in which the government largely decides what to produce, now to produce to whom to produce. Socialism and communism are the popular term used to describe variation of the economics system. The experience of the world has been that neither for market nor command economies has resulted in optimum economic conditions. Free market mechanisms haven’t been responsive enough to meet the meet the disable or a elderly nor did they protect the environment. Socialism and communism on the other hand, didn’t always create enough jobs or wealth to keep economics going enough. As a...
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