2. Introduction to Business 471.13 Week 1 Winter 2012 Bruce Duggan Providence University College

3. IB  everything except people  introduction fast not details

4. To Do by next Tue  groups  read syllabus ch 1 & 2  find

5. To Do by Fri  groups  read syllabus ch 2  find “1 thing I didn’t understand”

6. What is business?  Why does it exist?

7. What is business?  Why does it exist? Why do businesses exist?  What do they do?  Are they good things?  Could something else do it better?

8. The Goal of the Course:

9. ch 2 “Understanding the Environments of Business”

10. ch 2 Learning Objectives org boundaries org environments  what are they economic technological socio-cultural global political-legal  Why care? Canada now  sick or healthy?  What’s coming?

11. Organizational Boundaries imagine you’re the owner  What can you control? that’s inside your boundary  What can’t you control (but effects you)? that’s your environment(s)

12. ch 2 Learning Objectives org boundaries org environments  what are they economic technological socio-cultural global political-legal  Why care? Canada now  Sick or healthy?  What’s coming?

13. Environments pg 42

14. Economic Environment “The conditions of the economic system in which an organization operates” “The Economy”

15. Economic Environment 3 issues 1. stability 2. growth 3. employment What’s missing?

16. Economic Environment 1.stability “Condition in an economic system in which the amount of money available and the quantity of goods and services produced are growing at about the same rate.”

17. Economic Environment 1.stability a. business cycle b. inflation deflation c. unemployment “The typical pattern of short-term ups and downs—expansions and contractions—in an economy”

18. Economic Environment 1.stability a. business cycle phases  peak  recession  trough  recovery

19. Economic Environment 1.stability a. business cycle change in GDP per capita -10% 0% 10% 20% “in real terms”

20. Economic Environment 1.stability a. business cycle change in real GDP per capita 18001850190019502000 Lawrence H. Officer and Samuel H. Williamson, "Annualized Growth Rate of Various Historical Economic Series," MeasuringWorth, 2010. URL http://www.measuringworth.com/growth/http://www.measuringworth.com/growth/ -10% 0% 10% 20%

21. Economic Environment 1.stability a. business cycle change in GDP per capita Centre for the Study of Living Standards. Aggregate Income and Productivity Trends: Canada vs United States http://www.csls.ca/data/ipt1.asp http://www.csls.ca/data/ipt1.asp -5% 0% 10% 19621972198219922002 Canada US

22. Economic Environment 1.stability a. business cycle b. inflation deflation c. unemployment

23. Economic Environment 1.stability a. business cycle b. inflation measuring  cpi “Prices of typical products purchased by consumers.” ? “Widespread price increases in an economic system.”

24. Economic Environment 1.stability b. inflation -50% -25% 0% 25% 50% 75% 100% 13001400150016001700180019002000

25. Economic Environment 1.stability b. inflation Canada US UK -10% 0% 10% 20% 19161936195619761996

26. Economic Environment 1.stability a. business cycle b. inflation -5% 0% 10% 19621972198219922002

27. Economic Environment Issues 1. Stability 2. Growth 3. Employment 4. Fairness What’s missing?