World of Business Guided Notes Project 3
Day 1
External Factors Affecting Business
Ethnic/Cultural
x
x
Political
x
x
x
x
Regulatory Agencies Industry Associations x
Social
x
x
x
Changing Values and Attitudes
Changing Family Roles x
Economic
x
x
Technological
x
x
Looking for Updated Technology
Competitive
x
x
Increased Due to Globalization
Factors Driving Change in Business
x
x
x
x
x
x
Industry Structure Changes Growth of Service Businesses
Shrinking Product Life Cycles
How Businesses Adopt to Change
x
x
x
Cultural Intelligence
x
x
Open­Mindedness
x
Cohesiveness
Environmental Scanning
*Four Step Process in which Businesses:
x
x
_____________________________________ about their surroundings
x
x
Determine the future impact of that information
It is EXTREMELY important to be aware of threats and knowing their potential impact because it helps a business with:
o o A business ________________ control its external environment
But, it can control its internal environment to meet upcoming threats and opportunities
x
x
Environmental Scanning cont.
x
x
x
Internal Environment:
o o Research and Development
o o Categories of information to scan:
1.
2.
3.
4.
5.
6.
Demographics:_______________________________________________________________
Society and Culture:________________________________________________________
The economy:_______________________________________________________________
Competition:_________________________________________________________________
Government:_________________________________________________________________
Technology
Steps to conduct an Environmental Scan
Step one: Identify participants and responsibilities
Step two:
Step three: Identify and analyze important issues and trends
Step four:
World of Business Guided Notes Project 3
Day 2
Government’s Original Intentions
x
x
x
x
Enforce business contracts
Settle business disagreements
Purposes of Government Involvement
x
x
x
x
x
To conserve the environment
To regulate workplace conditions
How Government Regulates Business
x
x
Regulatory ____________
o To prohibit, to control, to require
o Regulatory ____________
o “Watchdogs” ­­­make sure businesses are following laws
o More Regulations
x
o Issuing permits to allow businesses to ____________
o Government may __________ or cancel if necessary
x
o Ceilings on prices and wages o Effects of Regulation
x
x
o
o
o
o
Access to resources Patents, Trademarks, Copyrights
x
Cost of Regulation
x
x
o From the Private Sector
o o o By Issuing Bonds World of Business Guided Notes Project 3
Day 3
Types of Trade
x
o Producers and buyers are in the ___________ country
x
o Product is purchased in _____________________ and _____________­in another.
Global Trade
x
o Products bought from producers in ____________ countries
x
o Products that businesses sell to other countries
Benefits of Global Trade
x
x
x
x
x
x
x
_______________ variety and quantity of products
Access to and availability of scare resources
________________________ due to _________________ competition _________________ of ideas and technology among countries
Increase ______________ for shipping and airline industries
Factors Affecting Global Trade
x
x
x
x
x
A nation’s bank account
Strength of currency
Trade Barriers
x
x
x
x
x
World of Business Guided Notes Project 3
Day 4
Understanding Ethics
x
x
x
x
x
x
x
x
_____________­the basic principles that govern your behavior
Your personal code of ethics­ guides you to make the _________ decisions, even in ____________ situations
_____________________________­the basic principles that govern a business’s actions
A business’s code of ethics:
o Determines whether or not a certain action is acceptable for that business
o Especially if the consequences of that actions might have a negative impact on:
ƒ ƒ ƒ Most industries also have general ethical codes for all related businesses to follow
Business ethics and personal ethics may not mesh perfectly
o _________________ people within an organization may have _____________ personal ethics
o Ethics are not always _______________ to begin with
Ethics and Law
x
x
Draw Circles here:
x
Actions that are legal but may not be ethical
x
o Example: A doctor’s office is not required by law to go “above and beyond” for a patient by trying several different treatments or recommending a specialist. However, most doctors would consider it unethical not to care for their patients to the utmost of their abilities.
Actions can be illegal but still considered ethical o Example:
World of Business Guided Notes Project 3 Day 5­6
What is globalization?
x
x
x
___________________________ is the rapid and unimpeded flow of capital, labor, and ideas across national borders.
Result= various regions across the globe now have ______________________________, ____________, and _______________________.
It has changed everything
o The way we ___________
o The way we _________________________
o The way we _____________
o The way we ___________
Causes of Globalization
The introduction of new technologies
x
The Internet
o Main technological factor affecting globalization
o o Has changed the way businesses think and operate
Faster and more accessible modes of transportation
x
x
Contributes to the spread of culture and ideas throughout the world
Lessened political barriers between countries
x
x
x
In past decades, there was ______________________________________ and trade between certain regions and the rest of the globe.
After the fall of communism in many countries, the lines of communication and financial exchange became open
Globalization: Advantages
x
x
x
When businesses can enter new markets, they have greater opportunities to succeed and to make money.
Businesses can also cut costs when they:
o o x
x
Free exchange of ideas contributes to greater business innovation as well.
Globalization has brought advantages to consumers as well as businesses o o Globalization: Disadvantages
x
x
Fierce Competition
o Keeps prices ____________ for consumers but can make it difficult for some businesses to succeed.
o Refers to a country or region losing its talented employees to other jobs overseas
o o Developing nations have little hope of establishing strong economies without capable work forces Culture and Communication
x
x
Verbal communication issues:
o o Example: Manana means “tomorrow” in Spanish. Tomorrow literally means “the next day” in non­Latino culture. In the Latino culture “manana” means “sometime in the near future”
Nonverbal communication issues:
o Example: “Thumbs­Up” in the U.S. and Canada is a positive thing. In Australia, however it is very offensive.
x
x
x
x
o High­Context Cultures
ƒ Establishing trust is key in this type of culture (Middle East, Asia, Africa etc.)
o Low­Context Cultures
ƒ Use direct language, very upfront, action oriented (United States, Western Europe)
Religion
o Impacts work hours, delivery schedules, product offerings, etc.
o Corruption
o Most common form­bribery
o Government Involvement
o May create international­trade laws:
ƒ ƒ ƒ o Different levels of security/customs procedures
Negotiating
o Culture influences:
ƒ ƒ ƒ ƒ