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37 Cards in this Set
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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 not be controlled by a business as they are considered to exist in the _____ A) external environment B) Internal environment C) organization's boundaries D) global context |
A) external environment |
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The total amount of money that a country owes its creditors A) national deficit B) purchasing power parity index C) national debt D) gross domestic product |
C) national debt |
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The federal government manages the Canadian economic system through two sets of policies: fiscal and monetary. Fiscal Policy refers to: A) the control of the money supply B) the control of interest rates C) the government's approach to its spending and taxation D) the effective management and control of the national debt |
C) the government's approach to its spending and taxation |
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Simon would like to buy a Valentine's 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 Porter's Five Forces Model, chocolates are a less costly ________. A) option B) substitute C) replacement D) complement |
B) substitute |
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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 |
D) the skills and resources with which they compete best and create the most value for owners |
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define External Environment |
everything outside an organization's boundaries that might affect it |
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Define Economic Environment |
conditions of the economic system in which an organization operates |
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aggregate output |
total quantity of goods and services produced by an economic system during a given period |
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business cycle |
pattern of short term ups and downs in an economy |
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Gross Domestic Product (GDP) |
total value of all goods and services produced within a given period of a national economy through domestic factors of production |
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Gross National Product (GNP) |
total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located |
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GDP Per Capita |
gross domestic product per person |
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real GDP |
GDP calculated to account for changes in currency values and price changes |
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Purchasing Power Parity |
principle that exchange rates are set so that the prices of similar products in different countries are about the same |
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Productivity |
measure of economic growth that compares how much a system produces with the resources needed to produce it |
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balance of trade |
total of a country's exports minus its imports |
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national debt |
total amount of money a country owes its creditors |
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budget deficits |
the result of the government spending more in one year than it takes in during that year |
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inflation |
occurence of widespread price increases throughout an economic system |
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Consumer Price Index (CPI) |
measure of the prices of typical products purchased by consumers living in urban areas |
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deflation |
a period of generally falling prices |
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unemployment |
the level of joblessness among people actively seeking work in an economic system |
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fiscal policies |
policies whereby governments collect and spend revenues |
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The technological environment includes what? |
human knowledge, work methods, physical equipment, electronics and telecommunications, and various processing systems that're used to perform business activities |
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research and development (R&D) |
activities that're necessary to provide new products, services, and processes |
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What're the 4 business environments? |
economic environment technological environment political-legal environment socio-cultural environment |
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define Political-Legal Environment |
conditions reflecting the relationship between business and government, usually in the form of government regulations |
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Socio-Cultural Environment |
conditions including the customs, values, attitudes, and demographic characteristics of the society in which an organization functions |
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Outsourcing |
strategy of paying suppliers and distributers to perform certain business processes or to provide needed materials or services |
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acquisition |
the purchase of a company by a larger company, which absorbs the smaller company into its operations
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merger |
the union of two companies to form a single new business |
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poison pill |
a defense management adopts to make a firm less attractive to an actual or potential hostile suitor in a takeover attempt |
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divestiture |
occurs when a company sells part of its existing business operations to another company |
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spinoff |
strategy of setting up one or more corporate units as new, independent corporations |
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strategic alliance |
an enterprise in which two or more persons or companies temporarily join forces to undertake a particular project |
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Define Porter's Five Forces Model |
helps managers analyze five important sources of competitive pressure and decide what their competitive strategy should be |
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What are the five forces in Porter's Five Forces Model? |
Industry Rivalry Threat of New Entrants Bargaining Power of Suppliers Threat of Substitutes
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