This document outlines the key learning outcomes and concepts covered in an introduction to business course. It discusses how businesses and organizations help create standards of living and the sectors of the business environment that influence decisions. It also addresses the primary features of economic systems and how the three sectors of the US economy are linked. Additionally, it examines how economic indicators can show a nation's health and how governments use monetary and fiscal policies to achieve goals. The document also defines microeconomic concepts like demand, supply, and market structures. Finally, it discusses trends reshaping business environments like changing demographics, energy demands, and staying competitive globally.
The marketing environment includes the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with customers.
Preparing a marketing environmental analysis is an essential step in understanding the external local, national or international forces that might affect your small business. These factors are largely outside your direct control, but you can adapt your business and marketing strategy to take advantage of the opportunities they present while minimizing the potential threats. A PESTLE analysis is the most common way of undertaking such a review; PESTLE stands for the Political, Economic, Social, Technological, Legal and Environmental factors you need to consider.
Macro Marketing Environment of Business Environment.It is a part of Marketing Management.This PPT help you learn only the Macro part of Business environment and Factors and forces of Macro.
The marketing environment includes the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with customers.
Preparing a marketing environmental analysis is an essential step in understanding the external local, national or international forces that might affect your small business. These factors are largely outside your direct control, but you can adapt your business and marketing strategy to take advantage of the opportunities they present while minimizing the potential threats. A PESTLE analysis is the most common way of undertaking such a review; PESTLE stands for the Political, Economic, Social, Technological, Legal and Environmental factors you need to consider.
Macro Marketing Environment of Business Environment.It is a part of Marketing Management.This PPT help you learn only the Macro part of Business environment and Factors and forces of Macro.
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A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
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Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
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Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
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Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
2. Learning
Outcomes
• How do businesses and not-for-profit organizations help create our
standard of living?
• What are the sectors of the business environment, and how do
changes in them influence business decisions?
• What are the primary features of the world’s economic systems, and
how are the three sectors of the U.S. economy linked?
• How do economic growth, full employment, price stability, and
inflation indicate a nation’s economic health?
• How does the government use monetary policy and fiscal policy to
achieve its macroeconomic goals?
• What are the basic microeconomic concepts of demand and supply,
and how do they establish prices?
• What are the four types of market structure?
• Which trends are reshaping the business, microeconomic, and
macroeconomic environments and competitive arena?
3. Team Rubicon
• As featured in the
Introduction, Exploring
Business Careers, Team
Rubicon is an organization
that offers opportunities for
those interested in nonprofit
careers as well as those
passionate about helping
others.
7. Knowledge
Knowledge is the combined
talents and skills of the
workforce and has become a
primary driver of economic
growth
8. Knowledge
• The four factors of production are
typically thought to be combined to
create entrepreneurial success, but
should Knowledge fit into the recipe
as a fifth element? Watch this video
now posted about various subjects
related to Economics, and after
viewing it, research one or more of
the entrepreneurs mentioned in this
section, such as Microsoft cofounder
Bill Gates, or Google founders
Sergey Brin and Larry Page.
9. 1. How do
businesses and
not-for-profit
organizations
help create our
standard of
living?
•CONCEPT CHECK
•Explain the concepts of
revenue, costs, and profit.
•What are the five factors of
production?
•What is the role of an
entrepreneur in society.
11. External Environment
Economic
Forces
Inflation, interest rates, unemployment rates,
taxes
Political &
Legal
Government activity, laws passed, political
stability
Demographic Age, gender, race & ethnicity, location
• Uncontrollable
• Define markets for products
• Size & composition of workforce
Social Attitudes, values, lifestyles
• Change as we get older
Technology Mobile, cloud computing, robots
• Maintain & build wealth
12. The External Business Environment
• Understanding the seven parts of
the external environment are key
to business success, particularly
because these are outside the
control of businesspeople. Watch
this video from Khan Academy:
The External Business Environment,
and after viewing, think about how
a regional disaster such an
earthquake or global pandemic
such as COVID-19 might affect
each of the seven components of
the business environment that
Exhibit 1.4 illustrates.
13. 2. What are the sectors of the business environment, and
how do changes in them influence business decisions
• CONCEPT CHECK
1. Define the components of the internal and the
external business environments.
2. What factors within the economic environment
affect businesses?
3. Why do demographic shifts and technological
developments create both challenges and new
opportunities for business?
15. Table 1.1, The Basic Economic Systems of the World - Continued
16. Economic Systems: Free, Mixed, and Planned
Economies
• The extremes of both free market
and centrally planned economic
systems have moved to the center as
most global economies have
embraced a more mixed
approach. As described in Section
1.2, a nation’s economic system is
the combination of policies, laws,
and choices made by its government
to establish the systems that
determine what goods and services
are produced and how they are
allocated. After reviewing the video
from mjmfoodie titled Economic
Systems: Free, Mixed, and Planned
Economies, andwer the questions on
the next slide.
19. 3. What are the primary features of the world’s economic
systems, and how are the three sectors of the U.S. economy
linked?
• CONCEPT CHECK
1. What is economics, and how can you benefit from
understanding basic economic concepts?
2. Compare and contrast the world’s major economic
systems. Why is capitalism growing, communism
declining, and socialism still popular?
3. What is the difference between macroeconomics
and microeconomics?
21. Macroeconomic Goals
Strive for Economic Growth
• Gross Domestic Product
Decline in Economic Growth
• Recession (two consecutive months)
Full Employment
• All people who want to work can
Frictional Unemployment
• Short term, not related to business
cycle
Structural Unemployment
• Mismatch between available jobs &
skills, not related to business cycle
Cyclical Unemployment
• Downturn in business cycle
Seasonal Unemployment
• Specific seasons in certain industries
22. Keeping Prices
Steady
• Inflation
• Demand-pull
• Demand greater than supply
• Cost-push
• Increase in production costs
• Expenses for materials, wages
• Consumer Price Index (CPI)
• Prices paid by urban consumers
• Producer Price Index (PPI)
• Prices paid by producers & wholesalers
23.
24. 4. How do economic growth, full employment, price stability,
and inflation indicate a nation’s economic health?
• CONCEPT CHECK
1. What is a business cycle? How do businesses adapt
to periods of contraction and expansion?
2. Why is full employment usually defined as a target
percentage below 100 percent?
3. What is the difference between demand-pull and
cost-push inflation?
25. • To influence the money supply
and interest rates:
• Open market operations
• The discount rate
• Reserve requirements
• Interest on reserve balances
26. • Fed restricts money supply
• Sell Gov’t securities
• Raise interest rates
Contractionary
Policy
• Fed loosens money supply
• Stimulates economy
• Business & consumers
spending goes up
Expansionary
Policy
Federal Reserve System
• Prints money
• Controls how much will be in circulation
27. Fiscal Policy
• Cuts Taxes
• Increases Spending
• Rising public
sector spending
drives down or
eliminates
private sector
spending
Crowding
Out
30. Role of FED in Achieving Macroeconomics Goals
• The Federal Reserve Bank - FED
• Central Banking System of the United States
• Fed prints money and controls how much of it will be in circulation
• Most importantly the money supply is also controlled by the Fed’s regulation
of certain bank activities.
31.
32. 5. How does the government use monetary policy and
fiscal policy to achieve its macroeconomic goals?
• CONCEPT CHECK
1. What are the two kinds of monetary policy?
2. What fiscal policy tools can the government
use to achieve its macroeconomic goals?
3. What problems can a large national debt
present?
33.
34. Hudsucker Proxy
• Supply and Demand
• The power of this scene is that
we are reminded that changes
in price cannot shift the
demand curve. Shifts in
demand can only happen when
something other than price
changes.
42. 6. What are the basic microeconomic concepts of
demand and supply, and how do they establish prices?
• CONCEPT CHECK
1. What is the relationship between prices and
demand for a product?
2. How is market equilibrium achieved? Describe the
circumstances under which the price for gasoline
would have returned to equilibrium in the United
States after Hurricane Katrina.
3. Draw a graph that shows an equilibrium point for
supply and demand.
48. Competing in a Free Market
Complete this table with at least one example by name of a real organization
or company that fits into that structure. For example, into which structure
would organizations like Apple, Microsoft, and Facebook go? What about the
farmer who grew the carrots, broccoli or potatoes for sale at your local grocery
store? Where would you place a small, local business like a dry cleaner, nail
shop or auto repair. What about the power, cable TV or utility company in your
geographic area? Any others you can think of?
49. Perfect Competition Monopolistic
Competition
Oligopoly Monopoly
Numbers of firms in
market
Firm’s ability to control
price
Barriers to
entry
Product differentiation
Name some real
company examples
Differentiating Between Market Structures Table
Company chosen:_______________________________
50. 7. What are
the four
types of
market
structure?
CONCEPT CHECK
• What is meant by market
structure?
• Compare and contrast perfect
competition and pure monopoly.
Why is it rare to find perfect
competition?
• How does an oligopoly differ
from monopolistic competition?
51. Changing Workforce
Demographics
Global Energy
Demands
Meeting Competitive Challenges
Millennials now total
more than 40 percent
of the total workforce
Emerging economies
such as China and
India need energy to
grow
Relationship management
• Practice of building, maintaining, and
enhancing interactions with customers
and other parties
Workers are delaying
retirement past the
traditional retirement
age of 65
Standards of living
improve worldwide
Demand for energy
continues to rise;
driving up prices
• Supply chain management, which builds
strong bonds with suppliers
• Relationship marketing, which focuses on
customers