BBA 2010, Introduction to Business 1 Course Learning .docx

BBA 2010, Introduction to Business 1
Course Learning Outcomes for Unit II
Upon completion of this unit, students should be able to:
2. Examine the different environments in which businesses
operate, to include social, technological,
economic, legal, and market.
2.1 Describe how different environments impact a business.
2.2 List the characteristics of different environments as they
relate to a business.
Reading Assignment
In order to access the following resource(s), click the link(s)
below:
Parrenin, A., Rau, P. P., & Zhong, R. (2015). Impacts of
cultural differences in a business environment for
French companies in China. Global Business & Management
Research, 7(1), 93-108. Retrieved from
https://libraryresources.columbiasouthern.edu/login?url=http://s
earch.ebscohost.com/login.aspx?direc
t=true&db=bth&AN=103267166&site=ehost-live&scope=site

Politicians must help business thrive. (2015). Director, 68(7),
72-73. Retrieved from
Surijah, A. B. (2016). Global environment, corporate strategy,
learning culture and human capital: A
theoretical review. International Journal of Organizational
Innovation, 8(4), 188-200. Retrieved from
Click here to access an interactive tutorial about service
operations.
Click here to access an interactive tutorial about operations
scheduling and control.
Click here to access an interactive tutorial about productivity
versus quality.
Unit Lesson
Introduction
Now that you have gained an understanding of the basic
components of business, it is time to discuss the
various environments in which a business operates. For the

purposes of this lesson, an environment, as it
pertains to a business, is everything combined, both internal and
external factors, that influence the way in
which a business operates. It is necessary to understand that no
business operates alone or unaffected by
outside forces. Generally, the main factors that influence a
business’s operations and create its various
environments are social, technological, economic, legal, global,
and market. We will begin this lesson by
discussing the social environment of business.
Social Environment
According to Bovée and Thill (2013), all businesses exist and
operate in a broad social environment that is
comprised of all events and actions that make up society as a
whole. Every organization is affected by where
it is located and the population and people who make it up.
Trends in society affect how businesses operate,
who they cater their goods and services to, and what types of
goods and services they offer. For example,
while a popular fast-food chain may have restaurants across the
globe, a menu item that may be wildly
UNIT II STUDY GUIDE
Various Environments of Business
earch.ebscohost.com/login.aspx?direct=true&db=bth&AN=1032
67166&site=ehost-live&scope=site

http://www.pearsoncustom.com/mct-
enterprise/asset.php?isbn=1256689785&id=11587
UNIT x STUDY GUIDE
Title
popular in one country may not be popular at all in another part
of the world. Society sets the tone for the
business and has expectations that will more or less dictate the
relationship that organizations have with
people within society.
Technological Environment
The second environment in which businesses operate is the

technological environment. Today, especially,
changes in technology can, and often will, dramatically change
how a business operates. In fact,
technological advancements have even put some organizations
out of business. New advancements in
technology may not only alter how a business functions
internally but may also change the types of goods
and services that a company offers, as well as the customers. As
a result, technology is now a major source
of a company’s competitive advantage (something that an
organization possesses that makes it more
attractive to its clients and customers). Technology now plays a
large role in how companies operate;
specifically, the use of technology by companies can actually be
a threat to rival organizations that do not
possess the advancements that other companies possess.
Economic Environment
Almost all decisions made by an organization are a result of its
economic environment. The economic
environment of a business consists of factors that not only
affect the types of goods and services that a
business offers, and their availability, but also the cost of labor
and the behaviors of both buyers and sellers. If
an economy is strong, then a company could possibly see an
increased demand for its goods and services,
thereby allowing the firm to support any increases in its prices
for products, raw materials, and labor.
Conversely, if the economy is bad, even the most successful
companies can, and often will, see a decreased
demand for their goods and services, which can negatively
affect their profits.
Legal Environment

Just like individuals, businesses and organizations have laws
and regulations that they must follow, and they
must remain compliant. The legal environment of business has a
tremendous impact on how organizations
operate because there are laws and regulations at the local,
state, national, and international levels that all
businesses must adhere to in one way or another. In many
industries, laws and regulations determine exactly
how much businesses can charge customers for goods and
services, while in other industries, governments
set laws that require businesses to obtain special permits and
licenses before they can even operate and
offer their goods and services to customers. Finally,
governments also establish laws that determine what, if
any, amounts that organizations will be taxed for doing
business. While all laws and regulations may have the
best intentions, they can have a negative impact on communities
in which businesses operate. For example,
if a business or industry operates in a location in which they are
continually being taxed at high rates,
business leaders may choose to leave this area and operate in
locations that do not tax them as much. When
this occurs, not only are the companies affected, but so are the
communities in which they operate because
of job losses and the revenues that the businesses bring to local
communities.
Global Environment
Today, thanks to advancements in modern technology and
several free trade agreements, businesses can
and do operate in the global environment. This means that
organizations can now do business, in real time,
with customers and other companies around the world. This has
helped economies of other countries grow at
an incredible rate. As a result, it has given countries such as

India and China better economic power in the
world setting. Additionally, many companies are now
understanding that it is much less expensive to
outsource jobs such as technical support, customer service, and
computer programming to other countries
because of the inexpensive costs of labor. While this is great for
the foreign countries and foreign workers, it
can be detrimental to workers in a company’s home country
because it puts domestic workers out of jobs.
Additionally, the global environment has made it so people must
now be more cognizant of customs and
cultures from other parts of the globe because there is a better-
than-average chance that domestic workers
will conduct business with foreign customers and counterparts.
Finally, we must consider that now, because
the world is a global marketplace, what happens in one country
can affect business around the globe. For
example, look at how the economies and various industries (i.e.,
the travel industry, especially the airline
industry) were impacted by the events of September 11, 2001.
While the terrorist attacks on 9/11 happened in
the United States, worldwide travel was negatively affected,
which damaged foreign industries like tourism.
UNIT x STUDY GUIDE
Title

Market Environment
The final environment that all businesses operate within is the
market environment. A business’s market
environment is comprised of its target customers, buying
influences of target customers, and its competitors.
All three of the aforementioned forces constantly impact the
way in which a business operates. For example,
if the target market or customers (customers or groups of
customers the company wants to sell specific
products and services to) desire a certain product or service but
are not willing to pay a certain price for it,
then the company must change its price to be in line with what
customers want. Otherwise, the business’s
competition will charge the desired price and take away the
customers of the original business. As a result,
businesses must always assess and reassess their strategies. If
leaders of a business do not take into
account the behaviors of the forces mentioned earlier, and
change their behaviors and strategies accordingly,
then they can expect to lose their place in their respective
market.
Understanding the various environments in which businesses
operate allows business leaders to make better
and more informed decisions. Can possessing a good
understanding of the environments prevent companies
from suffering profit losses and going out of business? That is
not necessarily the case. However, by
understanding the various environments in which businesses
function, leaders can mitigate against any
negative backlash that may occur, and that could mean the
difference between losing some profit and going
out of business entirely.

Reference
Bovée, C. L., & Thill, J. V. (2013). Business in action (6th ed.).
Upper Saddle River, NJ: Pearson.
Suggested Reading
Click here to access a video about Boeing Satellite Systems and
how technology has impacted the business.
Need by Saturday 11/14
UNIT II DISC 200 ish words
This unit two lesson focused on the various environments in
which businesses operate (social, technological, economic,
legal, global, and market). Based on what you have learned
about the various business environments, which environment, in
your opinion, has the greatest impact on business operations?
Explain
Unit II Assignment
The purpose of this assignment is to examine the different
environments in which businesses operate. Include social,
technological, economic, legal, and market environments when
you complete the three exercises.
Template is attached

Unit II Assignment
This assignment allows you to demonstrate the following
outcomes:
2. Examine the different environments in which businesses
operate, to include social, technological, economic, legal, and
market environments.
2.1 Describe how different environments impact a business.
2.2 List the characteristics of different environments as they
relate to a business.
Instructions: The purpose of this assignment is to examine the
different environments in which businesses operate. Read each
set of instructions before completing the three exercises. Then,
save all of your work to this template and submit it in
Blackboard for grading.
Exercise 1: The table below contains cells where you can insert
the elements for each type of environment: (a) the
characteristics of the environment as it relates to the business
and (b) a description about how the environment impacts the
business. For Exercise 1, your answers should focus on the
following type of business: a retail business with clothing and
other apparel.
In your own words, complete the table below by inserting the
appropriate elements.
Environment
List the characteristics of the environment as it relates to the
business (at least three each)
Briefly describe how the environment impacts the business (at
least four sentences each)
Social
1.
2.
3.

Technological
1.
2.
3.
Economic
1.
2.
3.
Legal
1.
2.
3.
Market
1.
2.
3.
Exercise 2: This exercise is similar to Exercise 1, however, your
answers will now focus on a different type of business: an
electronics manufacturing business.
In your own words, complete the table below by inserting the
appropriate elements.
Environment

List the characteristics of the environment as it relates to the
business (at least three each)
Briefly describe how the environment impacts the business (at
least four sentences each)
Social
1.
2.
3.
Technological
1.
2.
3.
Economic
1.
2.
3.
Legal
1.
2.
3.
Market
1.
2.

3.
Exercise 3: The purpose of this exercise is for you to reflect
upon your observations after completing the first two exercises.
What did you notice about the different environments and how
they impact a particular type of business? After completing this
assignment, what could you, as a business manager or
entrepreneur, take away and apply to a job? Your response must
be at least 200 words in length.
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BBA 2010, Introduction to Business 1 Course Learning .docx

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