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Chapter 1 & 2 (Amended)

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Content

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Nickels McGraw-Hill/Irwin

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McHugh

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McHugh

Managing Within The Dynamic Business Environment Taking Risks an! Making Pro"its

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      R       E       T       P       A       H       C

1 1-1

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#$%ectives o" Business &urvival

'ro(th

Pro"it

&ocial Res)onsi$ility

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Creating Wealth actors o" Pro!uction • • • • •

+an! +a$or  Ca)ital Entre)reneurshi) ,no(le!ge

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Business Environment

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Economic +egal Environment $ Minimum ta.es an! regulations $ ree!om o" o(nershi) $ Contract la(s $ Tra!a$le currency $ Elimination/minimi0ation o"

corru)tion

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Corr  u)t Countries Corru)t +east Corru)t 12 3celan! 42 inlan! 52 Ne( 6ealan!

Source: Transparency International, 2005; !transparency!or"

Most Corru)t 12 Bangla!esh 42 Cha! 52 Haiti

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Technological Environment • Pro!uctivity • E7Commerce • Res)onsiveness to Customer 

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3!entity The"t • Total num$er o" i!entity the"t victims in 4889 : 499;9<9 • To) "our (ays ho( victims in"ormation (as misuse! 12 42 52 =2

Cre!it car! "rau! Phone/utilities "rau! Bank "rau! Em)loyment7relate! "rau!

Source: I%entity T&e't: (icti) o)plaint +ata, 2005, e%eral Tra%e o))ission; !consu)er!"o.i%t&e't

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3D The"t>Protective &te)s • ?ocus on the chea) an! easy (ay to kee) an eye on your [email protected] • • • •

ree Cre!it Re)orts 'uar! our Num$er  &hre! Bug Congress 

To )ass ultimate )rotection A cre!it "ree0e anytime you (ant one2

Source: oney, u"ust 2005

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Com)etitive Environment • Customer E.)ectations • Restructure/Em)o(er 

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Consumer Tren!s • 2&2 Bottle! Water &ales in Past 19  ears 3ncrease! more than "our7"ol! to 2 Billion • rom #cto$er 488= to &e)tem$er 4889; to) $ottle (ater "lavors (ere Blen!; +emon; +ime; an! A))le Source: usiness  cono)ic eie, an!-ar! 2002; eera"e ar7etin" orporation, 8ottle%ater!or", 2004 stats; 9ro%uctscan nline; %ata)onitor!co), oe)8er /, 2005

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&ocial Environment • Diversity/Multicultural • Aging/'raying o" America

• T(o73ncome amilies • &ingle7Parent amilies

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2&2 Househol! &i0e

Source: <!S! ensus ureau

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Buying Po(er o"  Diverse 'rou)s • • • • • •

Women  Women

5;F88 Billion

A"rican Americans

F<1 Billion

His)anic Americans

<< Billion

'ay Men - +es$ians

<18 Billion

Asian Americans

5F Billion

Native Americans

91 Billion

Sources: ational r"ani=ation on +isa8ility )ploya8ility; <!S! 9an sian )erican &a)8er o' o))erce; +iersityInc!co); <!S! ensus ureau; T&e u"usta &ronicle, cto8er 22, 2005; Seli" enter 'or co no)ic >rot&, 2005!

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41st  Century Century Diversity 3ssues Race •  Race

Age •  Age

'en!er  •  'en!er 

+anguage •  +anguage

Ethnicity •  Ethnicity

Religion •  Religion

Disa$ility •  Disa$ility

&e.ual •  &e.ual

Source: <!S! ?ual )ploy)ent pportunity o))ission

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3mmigration • 3n 4889; roughly 59 million immigrants live! in the 2&2 as com)are! to less than 49 million 18 years ago2 • Accor!ing to a Novem$er 4889 )oll; <8 )ercent o" Americans "avor a $arrier $uilt along the &7Me.ico Bor!er2 • A$out = )ercent $elieve that a chil! $orn to an illegal alien in the 2&2 shoul! $e grante! a & citi0enshi) Source: enter 'or I))i"ration Stu%ies; as)usseneports!co)

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#l!er Americans Wor  king Working

Source: <S To%ay

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Americans +iving +onger  • 2&2 li"e e.)ectancy rises to a recor! high FF2 years • The num$er o" !eaths !ro))e! $y 98;888 in 488= "rom 4885; the stee)est !ecline since 15 • By 4889; a$out one in eight Americans (ill $e <9 or ol!er2 By 4849; it (ill $e nearly one in "ive2 Source: In[email protected] usiness +ail y, +ece)8er , 2003; u)8erlan% Ti)es-es, pril 20, 2006; <!S! enters 'or +isease ontrol an% 9reention; <!S! ensus

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E.ur$s 'ro(th o" #uter &u$ur$s • Northeasterners are moving south an! (est; an! (est coast resi!ents are moving inlan!2 • The states that gaine! the most resi!ents lori!a; Ari0ona; Neva!a • The states that lost the most resi!ents Ne( ork; Cali"ornia; 3llinois Source: u)8erlan% Ti)es-es, pril 21, 2006; <!S! ensus ureau

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'lo$al Environment • 3nternational Com)etition an! ree Tra!e • 3m)rovements in Trans)ortation an! Communication • War - Terrorism • 'lo$al Changes

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The Economic Cost o" Disaster  Disaster   

Costs

Hurricane ,atrina : 4889 Gestimate 488 B ,o$e; Ia)an EarthJuake 77 19

188 B

&e)tem$er 11; 4881 Attacks

F8 B

Northri!ge; CA EarthJuake : 1=

== B

Hurricane An!re( : 14

59 B

Source: usiness 2!0 , oe)8er 2002; S!co), Septe)8er 10, 2005!

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Does 'lo$al E.)erience Hel) our CareerL No Res)onse 9K 1K nnecessary

&ome(hat 48K Source: <S To%ay

9<K ery Hel)"ul

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Evolution o"  American Business • Agricultural/Manu"acturing • &ervice 3n!ustries • utureLLL

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Tren!s in Business • Rise o" 3n"ormation Communication Technology • 'lo$ali0ation

• &el"7Directe!; Em)o(ere! Em)loyees

• Communication &kills

• Doing Business 4=/F • E!ucate! Consumers

• Decision7Making &kills

• Aging Work"orce • 3ncreasing Diversity

• +ea!ershi)

• Pyrami! vs2 We$

• Team(ork

• Continual +earning

Source: Aeyin" In- esletter o' t&e atio nal usiness %ucation ssociation, arc& 2003

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