Exam 1 Flashcards
Businesses are affected by…
Internal and external factors
The external or macro environment of business is comprised of…
Economic, social, legal, political, and tech environment
What is a Business
A profit-making activity that provides products and services to satisfy human needs
Social contract
The expectations of society that businesses have responsibilities beyond making a profit and obeying laws and regulations. They have a responsibility to retain public support
How can stakeholder power be exercised
By forming stakeholder coalitions
Where does a company operate
Within markets and society
What relationship is between business and society
Interdependent
What does a manager need to be responsive to
Economic and noneconomic environments
What economic system does the U.S follow
Capitalism
What are the elements of Market Capitalism
- Rejection of Gov. Interference
- Competitive markets
- Private property ownership
- Economic freedom
What do markets need to support them
Institutions
What is important for companies to identify that are also important to stakeholders
Public issues
Should managers strive to anticipate public issues before they become a big pain
Yes (Shell)
Can anticipating and planning ahead prevent damage to a company and also give you an edge on the competition
Yes
