1. NICKELS M C HUGH M C HUGH © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved.

2. Chapter One Meeting the Challenge of Today’s Dynamic Business Environment

3. What Is Business? Activity seeking profit Provides goods/services Satisfy standard of living- quality of life Nonprofit organizations

4. Objectives of Business Survival Growth Social Responsibility Profit

5. Business Environment (Figure 1.2)

6. Entrepreneurship vs. Employment Opportunities For Entrepreneurs Matching Risk With Profit –Revenue - Expense = Profit(Loss) –Risk

7. Factors of Production Land Labor Capital Entrepreneurship Knowledge

8. Government Affects Business By Being:  A Customer  An Overseer and Regulator  A Tax Collector

9. Environments of Business Economic Technological Social Competitive Global

10. Economic Environment $Freedom of ownership $Contract laws $Elimination of corruption $Tradable currency $Minimum taxes & regulation

11. Technological Environment Internet E-commerce Role of Intermediaries ? Responsiveness to Customer Information Management

12. A Business and Its Stakeholders stakeholders are groups that are clearly affected by the products, policies, and practices of the firm. The challenge of the 21 st century is to see that organizations work together to ensure all stakeholders’ needs are considered and satisfied as best as humanly possible.

13. The 21 st Century Workforce Source: Workforce Magazine, Jan. 1998

14. Changing Intermediaries

15. Internet Impact Communications Access No Borders

16. E-commerce Explosion Transaction costs Size of purchase per transaction Integration Flexibility Catalog size Customer Interaction

17. Competitive Environment Customer Service –Customer Demands –Speed Community/Stakeholder Needs Natural/Ecological Concern

18. Social Environment Diversity/Multicultural Aging/Graying of America Two Income Families Single Parent Families

19. U.S. Population Shifts Source: Census Bureau

20. Global Environment Quality Productivity Changes

21. Dealing With A Multicultural Workforce  Show Respect for Culture/Value of Others  Avoid Stereotyping  Include All Workers in Acculturalization  Be Empathetic But Be Yourself  Avoid Imposing Your Culture/Values on Others  Show Respect for Culture/Value of Others  Avoid Stereotyping  Include All Workers in Acculturalization  Be Empathetic But Be Yourself  Avoid Imposing Your Culture/Values on Others

22. World Population Milestones Source:USA Today