Week 2 Flashcards
external environment
factors beyond an organization’s boundaries that cannot be controlled (ex: competition)
organizational boundaries
separates the organization from its environment
examples of organizational environments
political-legal, economic, socio-cultural, technological, business, global, emerging challenges/opportunities
the conditions of the economic system in which an organization operates
economic growth, economic stability, full employment
stages of a business cycle
peak, recession, trough and recovery
aggregate output
measure of economic growth; total quantity of goods and services produced by an economic system during a given period
standard of living
total quantity and quality of goods and services that a country’s citizens can purchase with their currency
productivity
measure of growth that compares the output of an economic system with the resources that are needed to produce the output; standard of living improves through increases of this
balance of trade
value of all exported products minus imported products; expressed by exports - imports
national debt
amount of money that a government owes its creditors; increases/decreases depending on the budget deficit/surplus
economic stability
condition when the amount of money available and the quantity of goods and services produced are growing at about the same rate; examples of threats are inflation, deflation and unemployment
inflation
occurs when there are widespread price increases in an economic system
CPI
tool used to measure inflation
deflation
a period of generally falling prices
unemployment and the types
level of joblessness among people actively seeking work in an economic system; types include frictional, seasonal, cyclical, structural
stabilization policies
a way to manage the Canadian economy; includes fiscal policies which handle taxes and spending, and monetary policies which handle money supply (ex: interest rates)
technology
all the ways a company creates value for its customers; knowledge, work methods, physical equipment, etc.
research and development
provides new ideas for products, services and processes; types are basic and applied
political-legal environment
reflects the relationship between business and government (ex: regulations); pro- or anti-business sentiment, political stability, international relations
sociocultural environment
customs, values, attitudes, and demographic characteristics of the society in which an organization functions; customer preferences and tastes which vary across and within national boundaries
globalization
integration of markets globally; world is becoming a single interdependent system
imports
products produced in Canada that are manufactured in other countries
exports
products made in Canada that are purchased by consumers in other countries
what are the major world marketplaces?
North America (Canada’s largest trading partner is the US, trade with Mexico is increasing)
Europe (traditional view of West vs. East, emerging view of North vs. South)
Pacific/Asia (Japan, China, India)
