Fluent Essays

1,List the five forces in Porters model using examples.2. How is a vertical merger different than a horizontal merger? Please provide an example to explain your answer chapter_2_slides__2_.pptx busi_1110_individual_weekly_writing_assignment_summer_20__7_.docx Unformatted Attachment Preview Business Essentials Ninth Canadian Edition Chapter 2 The Environment of Business Copyright © 2020 Pearson Canada Inc. 2-1 Learning Objectives (1 of 2) • Explain the concepts of organizational boundaries and multiple organizational environments. • Explain the importance of the economic environment to business and identify the factors used to evaluate the performance of an economic system. • Describe the technological environment and its role in business. • Describe the political-legal environment and its role in business. Copyright © 2020 Pearson Canada Inc. 2-2 Learning Objectives (2 of 2) • Describe the socio-cultural environment and its role in business. • Identify emerging challenges and opportunities in the business environment. • Understand the recent trends in the redrawing of corporate boundaries. Copyright © 2020 Pearson Canada Inc. 2-3 Organizational Boundaries and Environments (LO 2-1) • External Environment – factors beyond an organizations boundaries that cannot be controlled (i.e. competition) • Organizational Boundaries – that which separates the organization from its environment Copyright © 2020 Pearson Canada Inc. 2-4 Dimensions of the External Environment (LO 2-1) Multiple Organizational Environments Economic environment Technological environment Political-legal environment Socio-cultural environment Business environment Global environment Emerging challenges and opportunities Copyright © 2020 Pearson Canada Inc. 2-5 The Economic Environment (LO 2-2) (1 of 11) • The conditions of the economic system in which an organization operates Economic Stability Full Employment Economic Growth Key Economic Goals Copyright © 2020 Pearson Canada Inc. 2-6 The Economic Environment (LO 2-2) (2 of 11) Economic Growth Overview The Business Cycle Aggregate Output and the Standard of Living Gross Domestic Product (GDP) and Gross National Product (GNP) Productivity Balance of Trade National Debt Copyright © 2020 Pearson Canada Inc. 2-7 The Economic Environment (LO 2-2) (3 of 11) • Business Cycle – the typical pattern of short-term ups and downs in an economy (peak, recession, trough and recovery) Copyright © 2020 Pearson Canada Inc. 2-8 The Economic Environment (LO 2-2) (4 of 11) • Aggregate Output – measure of economic growth – total quantity of goods and services produced by an economic system during a given period • Standard of Living – total quantity and quality of goods and services that a country’s citizens can purchase with their currency • Productivity – measure of growth that compares the output of an economic system with the resources that are needed to produce the output – standard of living improves through increases in productivity Copyright © 2020 Pearson Canada Inc. 2-9 The Economic Environment (LO 2-2) (5 of 11) Measuring Economic Growth • Gross National Product (GNP) – value of all goods and services produced by a national economy within a given period regardless of production location • Gross Domestic Product (GDP) – value of all goods and services produced by a national economy within a given period with domestic factors of production Real Growth Rates GDP Per Capita Copyright © 2020 Pearson Canada Inc. Real GDP 2 - 10 The Economic Environment (LO 2-2) (6 of 11) • Balance of Trade – value of all exported products minus imported products Exports Imports • National Debt – amount of money that a government owes its creditors – increases/decreases based on the budget deficit/surplus Copyright © 2020 Pearson Canada Inc. 2 - 11 The Economic Environment (LO 2-2) (7 of 11) • Economic Stability – condition when the amount of money available and the quantity of goods and services produced are growing at about the same rate Deflation Inflation Unemployment Threats to economic stability Copyright © 2020 Pearson Canada Inc. 2 - 12 The Economic Environment (LO 2-2) (8 of 11) • Inflation – occurs when there is widespread price increases in an economic system • Consumer Price Index (CPI) – tool used to measure inflation • Deflation – a period of generally falling prices Copyright © 2020 Pearson Canada Inc. 2 - 13 The Economic Environment (LO 2-2) (9 of 11) • Unemployment – level of joblessness among people actively seeking work in an economic system Seasonal Cyclical Structural Frictional Types of Unemployment Copyright © 2020 Pearson Canada Inc. 2 - 14 The Economic Environment (LO 2-2) (10 of 11) Copyright © 2020 Pearson Canada Inc. 2 - 15 The Economic Environment (LO 2-2) (11 of 11) • Managing the Canadian Economy Fiscal Policies • Taxes and spending Monetary Policies • Money supply (i.e. interest rates) Stabilization Policies Copyright © 2020 Pearson Canada Inc. 2 - 16 The Technological Environment (LO 2-3) (1 of 2) • Technology – all the ways a company creates value for its customers ▪ knowledge, work methods, physical equipment, etc. Copyright © 2020 Pearson Canada Inc. 2 - 17 The Technological Environment (LO 2-3) (2 of 2) • Research & Development (R&D) – provides new ideas for products services and processes ▪ basic ▪ applied Copyright © 2020 Pearson Canada Inc. 2 - 18 The Political-Legal Environment (LO 2-4) • Reflects the relationship between business and government (e.g., regulations) – pro- or anti-business sentiment – political stability – international relations Copyright © 2020 Pearson Canada Inc. 2 - 19 The Socio-Cultural Environment (LO 2-5) • Customs, values, attitudes and demographic characteristics of the society in which an organization functions • Customer preferences and tastes – vary across and within national boundaries • Ethical compliance and responsible business behaviour Copyright © 2020 Pearson Canada Inc. 2 - 20 The Business Environment (LO 2-6) (1 of 3) • The Industry Environment – Porter’s five forces model is used to analyze the competitive situation in an industry. Copyright © 2020 Pearson Canada Inc. 2 - 21 The Business Environment (LO 2-6) (2 of 3) Emerging Challenges and Opportunities in the Business Environment • The most successful firms are getting leaner by focusing on their core competencies – the skills and resources with which an organization competes best and creates the most value for owners Copyright © 2020 Pearson Canada Inc. 2 - 22 The Business Environment (LO 2-6) (3 of 3) • Outsourcing – paying suppliers and distributors to perform certain business processes • The Growing Role of Social Media – an integral part of daily communication • Business Process Management – moving away from departmentoriented organizations toward process-oriented teams Copyright © 2020 Pearson Canada Inc. 2 - 23 Redrawing Corporate Boundaries (LO 2-7) (1 of 4) • Acquisitions and Mergers – horizontal, vertical or conglomerate mergers – friendly or hostile takeovers • Divestitures and Spinoffs – selling part of existing business or setting it up as a new corporation Copyright © 2020 Pearson Canada Inc. 2 - 24 Redrawing Corporate Boundaries (LO 2-7) (2 of 4) • Friendly Takeover – the acquired company welcomes the acquisition, (needs cash or other benefits) • Hostile Takeover – the acquiring company buys enough of the other company’s stock to take control ▪ a poison pill is a defense tactic that management can adopt to make a firm less attractive Poison Pill Copyright © 2020 Pearson Canada Inc. 2 - 25 Redrawing Corporate Boundaries (LO 2-7) (3 of 4) • Employee-Owned Corporations – employee stock ownership programs (ESOP) • Strategic Alliances – two or more companies temporarily join forces – often called a joint venture Copyright © 2020 Pearson Canada Inc. 2 - 26 Redrawing Corporate Boundaries (LO 2-7) (4 of 4) • Subsidiary and Parent Corporations – subsidiary corporation owned by another corporation – parent corporations own subsidiary corporations Copyright © 2020 Pearson Canada Inc. 2 - 27 Quick-Check Questions (1 of 5) 1) Environmental protection laws, interest rates, societal values, and the emergence of new technologies can significantly impact the profitability of a firm. These types of issues can’t be controlled by a business as they are considered to exist in the ________. A) B) C) D) external environment internal environment organization’s boundaries global context Copyright © 2020 Pearson Canada Inc. 2 - 28 Quick-Check Answer (1 of 5) 1) Environmental protection laws, interest rates, societal values, and the emergence of new technologies can significantly impact the profitability of a firm. These types of issues can’t be controlled by a business as they are considered to exist in the ________. A) B) C) D) external environment internal environment organization’s boundaries global context Copyright © 2020 Pearson Canada Inc. 2 - 29 Quick-Check Questions (2 of 5) 2) The total amount of money that a country owes its creditors. A) B) C) D) National Deficit Purchasing Power Parity Index National Debt Gross Domestic Product Copyright © 2020 Pearson Canada Inc. 2 - 30 Quick-Check Answer (2 of 5) 2) The total amount of money that a country owes its creditors. A) B) C) D) National Deficit Purchasing Power Parity Index National Debt Gross Domestic Product Copyright © 2020 Pearson Canada Inc. 2 - 31 Quick-Check Questions (3 of 5) 3) The federal government manages the Canadian economic system through two sets of policies: fiscal and monetary. Fiscal Policy refers to: A) B) C) D) the control of the money supply the control of interest rates the government’s approach to its spending and taxation the effective management and control of the national debt Copyright © 2020 Pearson Canada Inc. 2 - 32 Quick-Check Answer (3 of 5) 3) The federal government manages the Canadian economic system through two sets of policies: fiscal and monetary. Fiscal Policy refers to: A) B) C) D) the control of the money supply the control of interest rates the government’s approach to its spending and taxation the effective management and control of the national debt Copyright © 2020 Pearson Canada Inc. 2 - 33 Quick-Check Questions (4 of 5) 4) Simon would like to buy a Valentines gift for his girlfriend as a sign of his affection. To his disappointment he discovers that roses cost $75 a dozen. Luckily, he can buy chocolates for $20. According to Porte’s Five Forces Model, chocolates are a less costly _________. A) B) C) D) option substitute replacement complement Copyright © 2020 Pearson Canada Inc. 2 - 34 Quick-Check Answer (4 of 5) 4) Simon would like to buy a Valentines gift for his girlfriend as a sign of his affection. To his disappointment he discovers that roses cost $75 a dozen. Luckily, he can buy chocolates for $20. According to Porte’s Five Forces Model, chocolates are a less costly _________. A) B) C) D) option substitute replacement complement Copyright © 2020 Pearson Canada Inc. 2 - 35 Quick-Check Questions (5 of 5) 5) An organization’s core competencies refers to: A) The company’s strategies to increase market share B) The company’s product offerings which achieve the highest profit levels C) The training programs used to increase employee productivity D) The skills and resources with which they compete best and create the most value for owners. Copyright © 2020 Pearson Canada Inc. 2 - 36 Quick-Check Answer (5 of 5) 5) An organization’s core competencies refers to: A) The company’s strategies to increase market share B) The company’s product offerings which achieve the highest profit levels C) The training programs used to increase employee productivity D) The skills and resources with which they compete best and create the most value for owners. Copyright © 2020 Pearson Canada Inc. 2 - 37 BUSINESS 1110 Individual Weekly Assignment _______________________________________________________________________ The purpose of this assignment is to integrate the course material into basic understanding for students by applying and analyzing business theories and topics, practicing business writing skills, develop or strengthen student’s aptitude for personal reflection, increase student’s awareness of businesses in the media and to provide an alternate evaluation method for those students who find test-taking difficult. This weekly assignment is worth 40\% of your course grade. OVERVIEW On Moodle, you will find a tab for each week of the semester. On the tab for each week, you will find an assignment link. In the assignment link, you will find topics that relate to the material that will be covered in the chapter. The assignment requires you to prepare a summary that includes three elements: 1. Personal interpretation/view of the topic; 2. Academic research or industry news articles to support and justify your views with intext citations; 3. Textbook connection to support and justify the theory behind the topic within text citations. The assignments must be submitted on Moodle prior to the deadline. Format Options You can choose from the following formats to prepare your assignment in, however, throughout the semester you will have to use a minimum of 4 different formats: • Written report • Presentation • Video • Letter • Memo • Annotated Bibliography • Executive Summary • Graphic Report • Excel Report • Blog • Vlog ASSIGNMENT INSTRUCTIONS The following instructions must be fully met for the “followed instructions” marks. • All submissions are to be uploaded on Moodle. • All work must be cited using APA format for in text citation and include a bibliography/works cited section. • Assignment must include the three elements: personal thoughts/opinions, research justification and textbook theoretical concept. • Late assignments will receive a 0. (Moodle has a time stamp and will notify you if late) There are no exceptions. • Please save your document with the following naming convention FIRST NAME_LAST NAME_Week#_ASSIGNMENT. • Use spell and grammar check and ensure your writing level is at a university level for English grammar. • Assignment needs to be professionally formatted. MARKING CRITERIA You will find the marking rubric on Moodle. Please review the marking outline to help you make sure you get the mark you are hoping for. ... Purchase answer to see full attachment