Ch 1 Business Essentials Student PowerPoint 7eFINAL.ppt

8/9/2019 Ch 1 Business Essentials Student PowerPoint 7eFINAL.ppt

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1chapterBusiness Essentials, 7th Edition

Ebert/Griffin

© 2009 Pearson Education, Inc.

The U. S. Business Environment

Student PowerPoints

PowerPoint Presentation prepared byCarol Vollmer Pope Alverno College


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All rights reserved. No part of this publication ma bereproduced, stored in a retrieval sstem, or transmitted, inan form or b an means, electronic, mechanical,photocoping, recording, or other!ise, !ithout the prior!ritten permission of the publisher. Printed in the "nited#tates of America.

© 2009 Pearson Education, Inc. 2


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After reading this chapter, ou should be able to$

%. &e'ne the nature of ".#. business and identif its maingoals and functions.

2. &escribe the e(ternal environments of business and

discuss ho! these environments a)ect the success orfailure of an organi*ation.

+. &escribe the di)erent tpes of global economic sstemsaccording to the means b !hich the control the factorsof production.

. #ho! ho! mar-ets, demand, and suppl a)ect resourcedistribution in the "nited #tates.


E A / N I N 1 3 E 4 5 I 6 E #


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After reading this chapter, ou should be ableto$

7. Identif the elements of private enterprise

and e(plain the various degrees ofcompetition in the ".#. economic sstem.

8. E(plain the importance of the economic

environment to business and identif thefactors used to evaluate the performanceof an economic sstem.

E A / N I N 1 3 E 4 5 I 6 E #cont:d;



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5he 4oncept of usiness and Pro't

• usiness

• Pro'ts

• 4onsumer 4hoice and &emand

• 1pportunit and Enterprise



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5he 4oncept of usiness and Pro'tcont.;

• 5he ene'ts of usiness



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5he E(ternal Environments of usiness

• E(ternal Environment

– Everthing outside an organi*ation:sboundaries that might a)ect it



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5he E(ternal Environments of usinesscont.;

• &omestic usiness Environment – 5he environment in !hich a 'rm

conducts its operations and derives its

revenues b$



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• lobal usinessEnvironment

– 5he international forces that a)ect abusiness$



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• 5echnological Environment

– All the !as b !hich 'rms create valuefor their constituents$



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• Political


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• #ociocultural Environment



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• Economic Environment

– 5he relevant conditions that e(ist in theeconomic sstem in !hich a compan operates

– E(amples$



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Economic #stems

• Economic #stem

• =actors of Production



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5pes of Economic #stems

• Planned Econom

• >ar-et Econom

• >ar-et



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Planned Economies

• 4ommunism

– A sstem ?arl >ar( envisioned in !hichindividuals !ould contribute according

to their abilities and receive bene'tsaccording to their needs.



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>ar-et Economics

• 4apitalism

• >i(ed >ar-et Econom



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5he Economics of >ar-et #stems

• &emand

• #uppl

• 5he a!s of &emand and #uppl in a>ar-et Econom



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&emand and #uppl in a >ar-etEconom

• &emand and #uppl #chedule

– 5he relationships among di)erent levelsof demand and suppl at di)erent pricelevels as obtained from mar-etingresearch, historical data, and otherstudies of the mar-et.



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FIGURE 1.2 Demand and Supply



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FIGURE 1.2 Demand and Supply(Cont.)



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#urpluses and #hortages

• #urplus

• #hortage



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Private Enterprise in a >ar-etEconom

• Private Enterprise #stem

• Elements of a Private Enterprise#stem



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&egrees of 4ompetition

• Perfect 4ompetition

– Prices are determined b suppl anddemand because no single 'rm is

po!erful enough to in@uence the priceof its product.

– Principles of perfect competition$



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&egrees of 4ompetition 4ont.;

• >onopolistic 4ompetition



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• 1ligopol



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• >onopol

– An industr or mar-et that has onl oneproducer or else is so dominated b oneproducer that other 'rms cannotcompete !ith it;.

– atural monopolies!



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Economic Indicators

• Economic Indicators



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Economic ro!th, Aggregate 1utput,and #tandard of iving

• usiness 4cle

• Aggregate 1utput

• #tandard of iving



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Economic Indicators cont.;

• ross &omestic Product &P;

• ross National Product NP;



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• /eal ro!th /ate

• /eal &P



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• Nominal &P

• &P per 4apita



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• Purchasing Po!er Parit



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=I"/E %.+ Purchasing Po!er Parit ig >ac Inde(



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Economic ro!th

• Productivit

– A measure of economic gro!th thatcompares ho! much product a sstem

produces !ith the resources needed toproduce that product.



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Economic ro!th cont.;

• alance of 5rade

– 5he economic value of all the products acountr e(ports minus the economic value of

its imported products.



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alance of 5rade

• "ow does a trade de#$it a%e$te$onomi$ &rowt'



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=I"/E %. alance of 5rade



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• National &ebt

– 5he amount of mone that the governmento!es its creditors.



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• #tabilit

• In@ation



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Economic Indicators

• 4onsumer Price Inde( 4PI;

– A measure of the prices of tpicalproducts purchased b consumers livingin urban areas



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• "nemploment

– 5he level of Boblessness among peopleactivel see-ing !or- in an economic

sstem

• 4clical "nemploment



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• /ecession

• &epression



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>anaging the ".#. Econom

• =iscal Polic

• >onetar Polic

• #tabili*ation Polic



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?e 5erms

aggregate output

balance of tradebusinessbusiness ccle

capital

capitalismcommunismcompetition

consumer price inde(demand

demand and suppl scheduledemand curve

depressiondomestic business

environment

economic environmenteconomic indicatorseconomic sstementrepreneure(ternal environment

factors of production'scal policiesglobal business environmentgross domestic product &P;gross national product NP;

in@ationinformation resourceslabor human resources;

la! of demand



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?e 5erms cont.;

la! of suppl

mar-etmar-et econommar-et price eCuilibrium

price;

mi(ed mar-et econommonetar policiesmonopolistic competitionmonopol

national debtnatural monopolnominal &Poligopol

perfect competitionphsical resources

planned econompolitical


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?e 5erms cont.;

standard of living

suppl

suppl curve

surplus

technologicalenvironment

unemploment

Ch 1 Business Essentials Student PowerPoint 7eFINAL.ppt

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