Chapter 1

Participating in the Dynamic Participating in the Dynamic Business EnvironmentBusiness Environment

Participating in the Dynamic Participating in the Dynamic Business EnvironmentBusiness Environment

Chapter 1

Chapter OverviewChapter Overview

1.1. Factors of Production

2. 2. Social Trends

3.3. Economic Systems

4. 4. Trends in Technology

5.5. Trends in Global CompetitionIf you wish to read the lectures for each slide, click below, then click on Speaker’s Notes

BusinessBusiness::

An organization that strives for a profit by providing goods and services desired by its customers

Not-For-Profit

• Their focus is on meeting goals or promoting ideas

• Humane Society, Red Cross, Green Peace

• Do NFP’s face the same challenges as For Profit organizations?

Standard of livingStandard of living::A country’s output of goods and services that people can buy

• Although there is a positive relationship between a nation’s wealth & people’s happiness, the relationship is far from perfect– Germany & Japan’s gross national products are

two times higher than Ireland’s, yet Irish people are more happy overall than German & Japanese (Source: American Psychologist, 54, 1999, p. 821-827)

Factors of ProductionFactors of Production

1.1. Natural resources

2. 2. Labor

3. 3. Capital

4. 4. Entrepreneurship

5. 5. Knowledge

The Environment of BusinessThe Environment of Business

Demographicchange

Globalcompetition

Socialchange

Evolvingeconomicsystems

Emergingtechnology

Entrepreneurs,managers,workers,

customers

Social Trends in BusinessSocial Trends in Business

1.1. Increase in component lifestyles

2.2. Increase in dual-income families more spending money more products geared toward women

Women’s Presence in the WorkforceWomen’s Presence in the Workforce

0510

152025303540

4550

Per

cen

t o

f W

ork

forc

e

1870 1890 1910 1930 1950 1970 1990

Source: AFL-CIO, 135.145.13.100/women/wwfacts.htm

Demographics Relevant to BusinessDemographics Relevant to Business

Source: Fortune, Sept. 28, 1998, p. 227

Baby boomers

29%

Generation Y26%

Oldercustomers 23%

GenerationX 16%

Other

Evolving Global Economic SystemsEvolving Global Economic Systems

1.1. Capitalism (private enterprise)

2. 2. Communism (command economy)

3. 3. Socialism

4. 4. Mixed economic systems

Capitalism

Communism

Socialism

Mixed Economic Systems

Technological TrendsTechnological Trends

Miniaturization

Internet

• Developing technology in:– artificial intelligence, robotics, virtual

reality, teleportation, & flying cars (Source:

CNET: www.cnet.com)

Trends in Global Competition Trends in Global Competition

• Exports account for increasing proportion of world gross domestic product

• More companies can compete globally– improved technology

– improved communications

Global Competition• More companies meeting ISO 9000 and

ISO 14000 standards Ford was the 1st US Automaker to require ISO

14000 certification of suppliers (Source: globenet)

• Increased productivity– downsizing– increased use of technology

Talent War Among Employers

• In 20 years, the scarcest resource may be TALENT

Steps in getting your career off Steps in getting your career off on the right trackon the right track

1. Who am I?

– identify your strengths, interests, values

2. What can I do?

– Assess your abilities, skills, experience

3. Finding my first professional job

- research occupations and companies

10 Best Jobs for the 21st Century10 Best Jobs for the 21st Century

1.1. Systems analyst

2. 2. Computer engineer

3. 3. Engineering, mathematical, & natural science manager

4. 4. Securities & financial services sales worker

5.5. Marketing, advertising & PR manager

6. 6. Computer scientist7. 7. Service manager8. 8. Physical therapist9. 9. Special education

teacher10. 10. General manager &

top executive

Source: Friendly Exchange, Winter, 1999, p. 25

Selecting the Right JobSelecting the Right Job

FFit

AAdvancement and growth

CCompensation

TTraining

SSite

THE ENDTHE END