Chapter 1 & 2 (Amended)
Content
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Nickels McGraw-Hill/Irwin
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McHugh
*
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
* * *
Creating Wealth actors o" Pro!uction • • • • •
+an! +a$or Ca)ital Entre)reneurshi) ,no(le!ge
* * *
Business Environment
* * *
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
* * *
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
* * *
3!entity The"t • Total num$er o" i!entity the"t victims in 4889 : 499;9<9 • To) "our (ays ho( victims in"ormation (as misuse! 12 42 52 =2
Cre!it car! "rau! Phone/utilities "rau! Bank "rau! Em)loyment7relate! "rau!
Source: I%entity T&e't: (icti) o)plaint +ata, 2005, e%eral Tra%e o))ission; !consu)er!"o.i%t&e't
* * *
3D The"t>Protective &te)s • ?ocus on the chea) an! easy (ay to kee) an eye on your accounts@ • • • •
ree Cre!it Re)orts 'uar! our Num$er &hre! Bug Congress
To )ass ultimate )rotection A cre!it "ree0e anytime you (ant one2
Source: oney, u"ust 2005
* * *
Com)etitive Environment • Customer E.)ectations • Restructure/Em)o(er
* * *
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) $ottle (ater "lavors (ere Blen!; +emon; +ime; an! A))le Source: usiness cono)ic eie, an!-ar! 2002; eera"e ar7etin" orporation, 8ottle%ater!or", 2004 stats; 9ro%uctscan nline; %ata)onitor!co), oe)8er /, 2005
* * *
&ocial Environment • Diversity/Multicultural • Aging/'raying o" America
• T(o73ncome amilies • &ingle7Parent amilies
* * *
2&2 Househol! &i0e
Source: <!S! ensus ureau
* * *
Buying Po(er o" Diverse 'rou)s • • • • • •
Women Women
5;F88 Billion
A"rican Americans
F<1 Billion
His)anic Americans
<< Billion
'ay Men - +es$ians
<18 Billion
Asian Americans
5F Billion
Native Americans
91 Billion
Sources: ational r"ani=ation on +isa8ility )ploya8ility; <!S! 9an sian )erican &a)8er o' o))erce; +iersityInc!co); <!S! ensus ureau; T&e u"usta &ronicle, cto8er 22, 2005; Seli" enter 'or co no)ic >rot&, 2005!
* * *
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
* * *
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! $e grante! a & citi0enshi) Source: enter 'or I))i"ration Stu%ies; as)usseneports!co)
* * *
#l!er Americans Wor king Working
Source: <S To%ay
* * *
Americans +iving +onger • 2&2 li"e e.)ectancy rises to a recor! high FF2 years • The num$er o" !eaths !ro))e! $y 98;888 in 488= "rom 4885; the stee)est !ecline since 15 • By 4889; a$out one in eight Americans (ill $e <9 or ol!er2 By 4849; it (ill $e nearly one in "ive2 Source: Inestor@s usiness +ail y, +ece)8er , 2003; u)8erlan% Ti)es-es, pril 20, 2006; <!S! enters 'or +isease ontrol an% 9reention; <!S! ensus
* * *
E.ur$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-es, pril 21, 2006; <!S! ensus ureau
* * *
'lo$al Environment • 3nternational Com)etition an! ree Tra!e • 3m)rovements in Trans)ortation an! Communication • War - Terrorism • 'lo$al Changes
* * *
The Economic Cost o" Disaster Disaster
Costs
Hurricane ,atrina : 4889 Gestimate 488 B ,o$e; Ia)an EarthJuake 77 19
188 B
&e)tem$er 11; 4881 Attacks
F8 B
Northri!ge; CA EarthJuake : 1=
== B
Hurricane An!re( : 14
59 B
Source: usiness 2!0 , oe)8er 2002; S!co), Septe)8er 10, 2005!
* * *
Does 'lo$al E.)erience Hel) our CareerL No Res)onse 9K 1K nnecessary
&ome(hat 48K Source: <S To%ay
9<K ery Hel)"ul
* * *
Evolution o" American Business • Agricultural/Manu"acturing • &ervice 3n!ustries • utureLLL
* * *
Tren!s in Business • Rise o" 3n"ormation Communication Technology • 'lo$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- esletter o' t&e atio nal usiness %ucation ssociation, arc& 2003
**
Nickels McGraw-Hill/Irwin
*
McHugh
*
McHugh
Managing Within The Dynamic Business Environment Taking Risks an! Making Pro"its
*
R E T P A H C
1 1-1
* * *
#$%ectives o" Business &urvival
'ro(th
Pro"it
&ocial Res)onsi$ility
* * *
Creating Wealth actors o" Pro!uction • • • • •
+an! +a$or Ca)ital Entre)reneurshi) ,no(le!ge
* * *
Business Environment
* * *
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
* * *
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
* * *
Technological Environment • Pro!uctivity • E7Commerce • Res)onsiveness to Customer
* * *
3!entity The"t • Total num$er o" i!entity the"t victims in 4889 : 499;9<9 • To) "our (ays ho( victims in"ormation (as misuse! 12 42 52 =2
Cre!it car! "rau! Phone/utilities "rau! Bank "rau! Em)loyment7relate! "rau!
Source: I%entity T&e't: (icti) o)plaint +ata, 2005, e%eral Tra%e o))ission; !consu)er!"o.i%t&e't
* * *
3D The"t>Protective &te)s • ?ocus on the chea) an! easy (ay to kee) an eye on your accounts@ • • • •
ree Cre!it Re)orts 'uar! our Num$er &hre! Bug Congress
To )ass ultimate )rotection A cre!it "ree0e anytime you (ant one2
Source: oney, u"ust 2005
* * *
Com)etitive Environment • Customer E.)ectations • Restructure/Em)o(er
* * *
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) $ottle (ater "lavors (ere Blen!; +emon; +ime; an! A))le Source: usiness cono)ic eie, an!-ar! 2002; eera"e ar7etin" orporation, 8ottle%ater!or", 2004 stats; 9ro%uctscan nline; %ata)onitor!co), oe)8er /, 2005
* * *
&ocial Environment • Diversity/Multicultural • Aging/'raying o" America
• T(o73ncome amilies • &ingle7Parent amilies
* * *
2&2 Househol! &i0e
Source: <!S! ensus ureau
* * *
Buying Po(er o" Diverse 'rou)s • • • • • •
Women Women
5;F88 Billion
A"rican Americans
F<1 Billion
His)anic Americans
<< Billion
'ay Men - +es$ians
<18 Billion
Asian Americans
5F Billion
Native Americans
91 Billion
Sources: ational r"ani=ation on +isa8ility )ploya8ility; <!S! 9an sian )erican &a)8er o' o))erce; +iersityInc!co); <!S! ensus ureau; T&e u"usta &ronicle, cto8er 22, 2005; Seli" enter 'or co no)ic >rot&, 2005!
* * *
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
* * *
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! $e grante! a & citi0enshi) Source: enter 'or I))i"ration Stu%ies; as)usseneports!co)
* * *
#l!er Americans Wor king Working
Source: <S To%ay
* * *
Americans +iving +onger • 2&2 li"e e.)ectancy rises to a recor! high FF2 years • The num$er o" !eaths !ro))e! $y 98;888 in 488= "rom 4885; the stee)est !ecline since 15 • By 4889; a$out one in eight Americans (ill $e <9 or ol!er2 By 4849; it (ill $e nearly one in "ive2 Source: Inestor@s usiness +ail y, +ece)8er , 2003; u)8erlan% Ti)es-es, pril 20, 2006; <!S! enters 'or +isease ontrol an% 9reention; <!S! ensus
* * *
E.ur$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-es, pril 21, 2006; <!S! ensus ureau
* * *
'lo$al Environment • 3nternational Com)etition an! ree Tra!e • 3m)rovements in Trans)ortation an! Communication • War - Terrorism • 'lo$al Changes
* * *
The Economic Cost o" Disaster Disaster
Costs
Hurricane ,atrina : 4889 Gestimate 488 B ,o$e; Ia)an EarthJuake 77 19
188 B
&e)tem$er 11; 4881 Attacks
F8 B
Northri!ge; CA EarthJuake : 1=
== B
Hurricane An!re( : 14
59 B
Source: usiness 2!0 , oe)8er 2002; S!co), Septe)8er 10, 2005!
* * *
Does 'lo$al E.)erience Hel) our CareerL No Res)onse 9K 1K nnecessary
&ome(hat 48K Source: <S To%ay
9<K ery Hel)"ul
* * *
Evolution o" American Business • Agricultural/Manu"acturing • &ervice 3n!ustries • utureLLL
* * *
Tren!s in Business • Rise o" 3n"ormation Communication Technology • 'lo$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- esletter o' t&e atio nal usiness %ucation ssociation, arc& 2003
