1. BUSINESS AND MANAGEMENT MODULE 1 BUSINESS ORGANIZATIONS & ENVIRONMENT

2. L EGAL & E THICAL O PPORTUNITIES & T HREATS Governments impose rules and laws to ensure that the general public is protected from the negative aspects of business activity Government intervention also helps protect the interests of business

3. C OMMON L EGISLATION Consumer Protection False or misleading descriptions of their product Products must meet certain standards Employee Protection Anti-discrimination laws ensure fairness Competition Legislation Protection of consumers and small firms against monopoly powers, price fixing, copyright and patent infringements Social & Environmental Legislation Prevent the over consumption of “sin” goods through taxation

4. B USINESS E THICS Moral principles that should be considered in decision making Ethical firms are responsible to their employees, shareholders, customers and suppliers Firms can benefit in several ways by being ethical

5. S OCIAL B ENEFITS Attract and retain good quality workers Google Attract new customers and retain existing ones Generates good publicity and public relations The Body Shop

6. S OCIAL A UDITS Conducted externally, they report on the social stance of a business Typically it reports external matters (such as pollution levels or community project involvement) And internal issues (such as the efficiency of waste management and safe working conditions)

7. S OCIAL & C ULTURAL O PPORTUNITIES & T HREATS The attitudes of a society will greatly affect what goods and services are provided in the economy For example, the growing knowledge and support for environmental protection has greatly altered business behavior Demographic changes leading to a more educated public and wider acceptability of visible minorities

8. E XERCISE Comment on how the demographic changes below may present both opportunities and threats to a business… growing number of self-employed people increasing number of single parent families parents choosing to have fewer children and at a later stage in their lives more people graduating with university degrees

9. T ECHNOLOGICAL O PPORTUNITIES Technology affects all aspects of business Recruitment E-commerce Published on-line reports Speed of access to information Reducing language and cultural barriers Reducing costs of production

10. T ECHNOLOGICAL T HREATS Price transparency Customers can easily compare prices of rival firms Online crime Hackers cost Canadian businesses millions of dollars per year This may drive away consumers and potential on-line sales Higher costs of maintenance Maintenance and training of on-line services; shut down and upgrade costs

11. O THER T ECHNOLOGICAL I DEAS … New working practices Working from home Video conferencing Increased productivity Robotics are a much faster and more reliable production alternative Increased stock control Quicker product development New products and markets Job creation

12. D ISCUSSION  Nintendo’s Wii games console and Apple’s iPod are huge hits with consumers. One of Nintendo’s latest consoles appeals to new market segments such as women and the elderly. Demand is high in Asia, Europe and the USA (where it outsells its nearest rival by a ratio of almost 2:1). In April 2007, Apple announced the sale of its 100 millionth iPod, making it the most successful music player in history.  Explain how the technological environment can present opportunities for hi-tech firms such as Nintendo and Apple.