5. Business as an Economic Institution Business Firm Choice of Employees Uses of Resources Quantities of Output Price & Product Quality
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10. Primary Stakeholder Business Employees (union ) Stockholder Wholesaler Retailer Competitor Creditor Supplier Customer Skill Material Lend Money Distribute Compete Money Capital
11. Nature of Interest and Power Interest Power Stockholder - Return/Dividend - Exercising Voting Right - Capital Gain - Exercising right to inspect book and record Employee - Stable employment - Strike - Fair pay - Union bargaining power - Safe and comfortable - Publicity Creditor - Repayment of loan - Calling in loan - Interest -Take over loan’s collateral Supplier - Regular order - Refusing to meet order - Paid promptly - Supplying to com[etitor Distributor - Good product quality - Buying from competitor - High reliable product - Boycotting company Customer - Fair exchange - Purchasing from competitor - Safe & reliable product - Boycotting company Competitor - Be profitable -Forcing to”keep up” - Gain a larger market - Charge lower price
12. Secondary Stakeholder Business Local Communities Central/Local Govt. General Public Business Support Foreign Govt . Social Activist Media Skill, Environment Social Demand Friendly Hostile Opinion Services Image, Publicity Regulation Tax
13. Nature of Interest and Power Interest Power Local Com . - Employ Local residents - Restricting operating licenses - Environment is protected - Lobbying government for - Local area is developed regulation of the company Social - Ensure that company - Publicizing the negative issues Activist conform to legal and - Lobbying government for ethical standard regulation of the company Media - Keep the public informed - Publicizing the negative issues on all issues - Monitor the company Business - Provide services and - Assist company in business Support information endeavor & dev. effort Government - Taxes - Regulation, licenses,& permit - Economic development - Boycotting company Foreign Gov . - Economic development - Permit to do business - Social improvement - Regulation General - Social value Protected - Support activist Public - Prosperity for society - Condemn or praise company - Risk minimized - Press government to act
15. Interactive Model of Business Business Firm Local Communities Central/Local Govt. Foreign Govt. Social Activist Media General Public Business Support Stockholder Employee Creditor Supplier Distributor Customer Competitor Market Non Market
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17. Free Market System Business Firm Consumers Competitive Price Voluntary Exchange Supply Good & Services Demand Needs & Wants Profit Satisfaction
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23. Business Environment Corporate Managers Environmental Knowledge Corporate Strategic Planning Copying With Public Policies Linking Business Action to Social Values for need
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29. Linking Environmental Analysis To Planning Scanning Action Monitoring Forecasting Scenario Building Strategy Development Issues Management Contingency Planning Analysis: Opportunity Threats
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