Chapter 1 Fall 2008 Trends And Dynamics

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  • OT 5-8 Benefits of Home-Based Businesses 1. Home-based businesses are growing at an enormous rate. This acetate helps to clarify some of the reasons why. 2. Ask the class if any of them currently are involved in a home-based business. If anyone is, see if they will offer their own list of pluses and minuses. By going down the acetate’s points one-by-one it will be interesting to see how students react to the various benefits listed. It’s also interesting to ask what are the downsides of a home-based business. Unfortunately students do not always see both the sides of home-based businesses. 3. If you are like us and sometimes want to dazzle the students with statistics, you can note that a new home-based business is started every 10 seconds in the U.S.
  • Chapter 1 Fall 2008 Trends And Dynamics

    1. 1. Chapter 1 The Dynamic Business Environment
    2. 2. PART A Major Trends Affecting Canadian Business
    3. 3. Two Main Trends <ul><li>1. The Technological Revolution </li></ul><ul><li>2. The Globalization of the World’s Economy </li></ul>
    4. 4. The Globalization of Business <ul><li>International trade is not new - Marco Polo, Voyages of Discovery, etc. </li></ul><ul><li>Integration of global trade, investment, manufacturing, purchasing and financing is new </li></ul><ul><li>Globalization depends upon new travel, communication and transportation capabilities </li></ul>
    5. 5. Canada and the Pacific Rim <ul><li>British Columbia leads the country in trade with the Pacific Rim </li></ul><ul><li>Canada does over 80% of its trade with the U.S. </li></ul><ul><li>B.C. has only 63% of its trade with the U.S. due to its trade ties with the Orient </li></ul><ul><li>Immigrants, entrepreneurs, and capital from the Pacific Rim have flocked to B.C. </li></ul>
    6. 6. Big Business Cuts Costs <ul><li>Restructuring - computers have allowed companies to become “lean and mean.” </li></ul><ul><li>Employee Empowerment - has led to “cutting the fat” at the management level. </li></ul><ul><li>Quality - Edwards Deming taught the Japanese that quality can cost less not more. We are relearning this lesson. </li></ul>
    7. 7. Small Business: It is Dynamic <ul><li>This sector creates most of the new jobs. Most Canadians have worked in a small business </li></ul><ul><li>Home-Based Businesses are the fastest growing sector of the economy; they are technology driven </li></ul><ul><li>40% of the workforce are expected to “telecommute” in the near future </li></ul>
    8. 8. Benefits of a Home-Based Business <ul><li>Flexible work hours </li></ul><ul><li>Quality lifestyle </li></ul><ul><li>Doing the work of your choice </li></ul><ul><li>Opportunity to expand using technology </li></ul><ul><li>Self-motivation </li></ul>.
    9. 9. The Service Sector <ul><li>This sector includes government, hospitals, schools, etc. </li></ul><ul><li>The growth rate for employment in the service sector is over 3 times the rate of growth in the goods sector </li></ul><ul><li>In 2000 over 78% of all workers were employed in the Service Sector! </li></ul>
    10. 10. Manufacturing in Canada <ul><li>Canada was the 4th largest manufacturer in the world at the end of WWII </li></ul><ul><li>1945 to 1995 manufacturing accounted for about 20% of GDP </li></ul><ul><li>1945 to 1995 manufacturing declined from 30% to 15% of the workforce </li></ul><ul><li>Our economy needs a strong manufacturing sector to go along with a strong service sector </li></ul>
    11. 11. Population Trends <ul><li>Demographic trends have a huge effect on the economy </li></ul><ul><li>The post WWII baby boom dominated the economy in recent memory </li></ul><ul><li>The Pill and declining birth rates since the ’60s has touched everyone - schools, teachers, real estate developers, etc. </li></ul><ul><li>Immigration has off-set some of the effects of declining birth rates </li></ul><ul><li>Our population continues to age </li></ul><ul><li>Caring for the aged is a growth sector in our economy </li></ul>
    12. 12. Environmental Issues <ul><li>Population growth, industrial expansion, new processes, new chemicals, insecticides, automobile exhaust, waste disposal, hydrocarbon burning, etc., all contribute to environmental problems </li></ul><ul><li>Recycling and sustainable development are being proposed </li></ul>
    13. 13. The need for more education continues Adults with a degree beyond high school 20.7% 23.3% 25.2% 28.1% 30.7% 1984 1987 1990 1995 2000
    14. 14. PART B <ul><li>DYNAMICS OF A BUSINESS THAT NEED TO BE CONSIDERED IN TODAYS SOCIETY </li></ul>
    15. 15. Stakeholders: Those Who Stand to Lose or Gain <ul><li>Customers want value </li></ul><ul><li>Employees want security </li></ul><ul><li>Investors want returns </li></ul><ul><li>Suppliers want to be paid </li></ul><ul><li>Dealers want support </li></ul><ul><li>Financial institutions want returns </li></ul><ul><li>Surrounding communities want “equity” </li></ul><ul><li>Governments want compliance </li></ul><ul><li>Environmentalists want change </li></ul>
    16. 16. The Business Environment <ul><li>The Legal and Regulatory Environment </li></ul><ul><li>The Economic Environment </li></ul><ul><li>The Technological Environment </li></ul><ul><li>The Competitive Environment </li></ul><ul><li>The Social Environment </li></ul><ul><li>The Global Environment </li></ul>
    17. 17. Legal and Regulatory Environment <ul><li>Freedom of ownership </li></ul><ul><li>Contract laws and regulations </li></ul><ul><li>Elimination of corruption </li></ul>
    18. 18. Economic Environment <ul><li>Economic indicators: consumer spending, employment levels and productivity. </li></ul><ul><li>Income, expenditures and resources that effect the cost of running a business. </li></ul><ul><li>Currency fluctuations that affect imports and exports. </li></ul><ul><li>Government regulations and business ownership. </li></ul>
    19. 19. Technological Environment <ul><li>Information, technology and productivity </li></ul><ul><li>Growth of E-commerce </li></ul><ul><li>Business-to-consumer (B2C) </li></ul><ul><li>Business-to-business (B2B) </li></ul><ul><li>Internet marketing </li></ul><ul><li>Databases </li></ul><ul><li>Identity theft </li></ul><ul><li>Personal Information Protection and Electronic Documents Act (PIPEDA) </li></ul>
    20. 20. Competitive Environment <ul><li>Components of competition </li></ul><ul><li>Competing by exceeding customer expectations </li></ul><ul><li>Competing by restructuring and empowerment </li></ul>
    21. 21. Social Environment <ul><li>Demographic changes: </li></ul><ul><ul><li>Aging population </li></ul></ul><ul><ul><li>Managing diversity </li></ul></ul><ul><ul><li>Two-income families </li></ul></ul><ul><ul><li>Single parents </li></ul></ul>
    22. 22. Global Environment <ul><li>Importance to all other environmental influences </li></ul><ul><li>Growth of international competition </li></ul><ul><li>Increase of free trade and trade agreements </li></ul><ul><li>Importance of innovation </li></ul>

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