Embed Size (px)
Citation preview
Ch
apte
r 1
THE FUTURE OF BUSINESSGitman & McDaniel
5th Edition
THE FUTURE OF BUSINESSGitman & McDaniel
5th Edition
Chapter1
Participating in the Dynamic Business Environment
Participating in the Dynamic Business Environment
Prepared byDeborah Baker
Texas Christian University
Prepared byDeborah Baker
Texas Christian University
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 2Ch
apte
r 1
1 How do businesses and not-for-profit organizations help create our standard of living?
2 How are social trends, such as more women entering the workforce, affecting business?
3 How are demographic trends creating new opportunities for business?
4 What are the primary features of the world’s economic systems?
5 How can technological effectiveness help a firm reach its goals?
6 What are the trends in global competition?
Learning Goals
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 3Ch
apte
r 1
Learning Goal 1
How do businesses and
not-for-profit organizations
help create our standard of living?
1
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 4Ch
apte
r 1
THE NATURE OF BUSINESS1
BusinessesProvide…
… Goods and services that are the basis of our
standard of living
… Goods and services that are the basis of our
standard of living
… Jobs, goods and services that help
determine our quality of life
… Jobs, goods and services that help
determine our quality of life
A business is an organization that strives for a profit by providing goods and services desired by its customers.
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 5Ch
apte
r 1
Profit1
RevenueRevenueThe money a company earns from providing services or selling goods to customers.
The money a company earns from providing services or selling goods to customers.
less
CostsCosts
ProfitProfit
equals
Expenses that a company incurs from creating and selling goods and services.
Expenses that a company incurs from creating and selling goods and services.
The money left over afterall expenses are paid.
The money left over afterall expenses are paid.
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 6Ch
apte
r 1
Not-for-Profit Organizations1
A not-for-profit organization Is an organization that exists to achieve some other goal than the usual business goal of profit.
Government is the largest
not-for-profit group.
Government is the largest
not-for-profit group.
Not-for-profit organizations
account for 28% of economic activity
In the U.S.
Not-for-profit organizations
account for 28% of economic activity
In the U.S.
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 7Ch
apte
r 1
Factors of Production1
Natural ResourcesNatural Resources
LaborLabor
KnowledgeKnowledge
CapitalCapital
EntrepreneurshipEntrepreneurship
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 8Ch
apte
r 1
TRENDS IN BUSINESS1
EntrepreneursManagersWorkers
Customers
EntrepreneursManagersWorkers
Customers
Demographic Change
Global
Competition
Evolving
Econom
ic
System
s
Emerging
Technology
So
cial
C
han
ge
The Environmentof Business
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 9Ch
apte
r 1
Learning Goal 2
How are social trends,
such as more women entering
the workforce, affecting business?
2
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 10Ch
apte
r 1
SOCIAL TRENDS2
SocialFactors
SocialFactors
AttitudesAttitudes
ValuesValues
LifestylesLifestyles
Growth of Component Lifestyles
Increase in Two-Income Families
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 11Ch
apte
r 1
Learning Goal 3
How are demographic trends
creating new opportunities
for business?
3
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 12Ch
apte
r 1
DEMOGRAPHIC TRENDS3
DemographyDemography
AgeAge
RaceRace
EthnicityEthnicity
LocationLocation
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 13Ch
apte
r 1
Key Age Groups3
Generation YGeneration Y
Generation XGeneration X
Baby BoomersBaby Boomers
Older ConsumersOlder Consumers
Born between 1979-1994Born between 1979-1994
Born between 1965-1978Born between 1965-1978
Born between 1946-1964Born between 1946-1964
Over 60 years of ageOver 60 years of age
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 14Ch
apte
r 1
Diversity in America3
U.S. is becoming a multicultural society
Minorities constitute one-third of the nation’s population
Minorities control $1 trillion in annual spending
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 15Ch
apte
r 1
Learning Goal 44
What are the primary features
of the world’s economic systems?
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 16Ch
apte
r 1
EVOLVING GLOBAL ECONOMIC SYSTEMS4
CapitalismCapitalism
Command EconomyCommand Economy
SocialismSocialism
Mixed EconomiesMixed Economies
The private enterprise systemThe private enterprise system
CommunismCommunism
Government ownership /controlGovernment ownership /control
More than one systemMore than one system
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 17Ch
apte
r 1
Learning Goal 55
How can technological effectiveness
help a firm reach its goals?
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 18Ch
apte
r 1
Technological Trends
Microelectromechanical systems (MEMS)
Nanotechnology
Internet
5
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 19Ch
apte
r 1
Learning Goal 66
What are the trends in
global competition?
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 20Ch
apte
r 1
TRENDS IN GLOBAL COMPETITION6
Advances in technology and communications
Improvements in productivity
The impact of terrorism on global business
Gross Domestic Product (GDP)is the total market value of all finalgoods and services produced within a nation’s borders in a year.
