Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson Chapter 1 6 Business Environments Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson
Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson Learning Goals Know the six elements that make up the business environment and explain why each business environment is important to organizations. Be able to discuss how the six different business environments can impact a business. Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson
The Business Environment The Legal and Regulatory Environment The Economic Environment The Technological Environment The Competitive Environment The Social Environment The Global Environment Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson
Legal and Regulatory Environment Freedom of ownership Contract laws and regulations Elimination of corruption Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson
Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson Economic Environment Economic indicators: consumer spending, employment levels and productivity. Income, expenditures and resources that effect the cost of running a business. Currency fluctuations that affect imports and exports. Government regulations and business ownership. Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson
Technological Environment Information, technology and productivity Growth of E-commerce Business-to-consumer (B2C) Business-to-business (B2B) Internet marketing Databases Identity theft Personal Information Protection and Electronic Documents Act (PIPEDA) Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson
Competitive Environment Components of competition Competing by exceeding customer expectations Competing by restructuring and empowerment Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson
Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson Social Environment Demographic changes: Aging population Managing diversity Two-income families Single parents Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson
Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson Global Environment Importance to all other environmental influences Growth of international competition Increase of free trade and trade agreements Importance of innovation Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson