Chapter 01 - * * * • Land: land and other natural...

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Unformatted text preview: * * * • Land: land and other natural resources are used to • • • • Creating Wealth: Factors of Production make homes, cars, and other products. Labor: people have always been an important resource in producing goods and services, but many people are now being replaced by technology. Capital: includes machines, tools, buildings, and other means of manufacturing. Entrepreneurship: A person who risks time and money to start and manage a business. Knowledge: information technology has revolutionized business, making it possible to quickly determine wants and needs and to respond with desired with goods and services. 1-1 * * * Business Environment Global Business Economic & Legal Social Technology Competitive 1-2 * * * Economic & Legal Environment $ Minimum taxes and regulations $ Freedom of ownership $ Contract laws $ Tradable currency $ Elimination/minimization of corruption 1-3 * * * Government Takeover Crude • Crude oil price per barrel: 2000 2000 Mid $20 range 2006 Mid $70 range Russia, • Russia, Venezuela, and Bolivia have asserted greater state control over its oil or natural gas assets or • Which country will be next? Source: wtrg.com; Cumberland Times-News, May 3, 2006 1-4 * * * Corrupt Countries Least Corrupt 1. Iceland 2. Finland 3. New Zealand Most Corrupt 1. Bangladesh 2. Chad 3. Haiti Source: Transparency International, 2005; www.transparency.org 1-5 * * * Technological Environment • Productivity • E-Commerce • Responsiveness to Customer 1-6 * * * Social Environment • • • • Diversity/Multicultural Aging/Graying of Aging/Graying America America Two-Income Families Single-Parent Families 1-7 * * * U.S. Household Size 5 4 .5 4 3 .5 3 N umber of 2 .5 Pers ons 2 1 .5 1 0 .5 0 1900 Source: U.S. Census Bureau 1940 1980 2000 2004 1-8 * * * Buying Power of Diverse Groups Diverse • • • • • • Women Women African Americans Hispanic Americans Gay Men & Lesbians Asian Americans Native Americans $3,700 Billion 761 Billion 686 Billion 610 Billion 397 Billion 51 Billion Sources: National Organization on Disability Employability; U.S. Pan Asian American Chamber of Commerce; DiversityInc.com; U.S. Census Bureau; The Augusta Chronicle, October 22, 2005; Selig Center for Economic Growth, 2005. 1-9 * * * 21st Century Diversity Issues Diversity • Race Race • Gender Gender • Ethnicity Ethnicity • Disability Disability Source: U.S. Equal Employment Opportunity Commission • Age Age • Language Language • Religion Religion • Sexual Sexual 1-10 * * * Immigration • • In 2005, roughly 35 million immigrants In lived in the U.S. as compared to less than 25 million 10 years ago. than According to a November 2005 poll, According 60 percent of Americans favor a barrier built along the US-Mexico Border. Border. About 49 percent believe that a child About born to an illegal alien in the U.S. should be granted a US citizenship should Source: Center for Immigration Studies; RasmussenReports.com • 1-11 * * * Older Americans Working 80% 70% 60% 50% 40% 30% 20% 10% 0% 55- 59 Source: USA Today Fe ma le Ma le 60- 64 65+ * * * Americans Living Longer • • U.S. life expectancy rises to a U.S. record high 77.9 years record The number of deaths dropped The by 50,000 in 2004 from 2003, the steepest decline since 1938 the By 2005, about one in eight By Americans will be 65 or older. By 2025, it will be nearly one in five. five. 2500000 2000000 1500000 1000000 U.S. Deaths • 500000 0 1900s 2004 Source: Investor’s Business Daily, December 8, 2003; Cumberland Times-News, April 20, 2006; U.S. Centers for Disease Control and Prevention; U.S. Census 1-13 * * * Exurbs: Exurbs: Growth of Outer Suburbs Growth Northeasterners • Northeasterners are moving south and west, and west coast residents are moving inland. moving The states that gained the most The residents: Florida, Arizona, Nevada residents: The states that lost the most residents: The New York, California, Illinois New • • Source: Cumberland Times-News, April 21, 2006; U.S. Census Bureau 1-14 * * * Global Environment • • • • International Competition and Free Trade Improvements in Transportation Improvements and Communication and War & Terrorism Global Changes 1-15 * * * Evolution of American Business American • Agricultural/Manufacturing • Service Industries • Future??? 1-16 * * * Trends in Business • • • • • • • Rise of Information & Rise Communication Technology Technology Globalization Doing Business 24/7 Educated Consumers Aging Workforce Increasing Diversity Pyramid vs. Web Source: Keying In- Newsletter of the National Business Education Association, March 2003 • • • • • • Self-Directed, Empowered Employees Communication Skills Decision-Making Skills Teamwork Leadership Continual Learning 1-17 * * * Leveraging Leveraging Diverse Workforce Diverse • According to the Society for Human According Resources’ survey, about 70 percent of the respondents actively leverage workforce diversity through: diversity • • • • Ensuring leadership development programs reach Ensuring all employees (40%) all Meeting the needs of diverse customers (39%) Integrating diversity into the organization’s Integrating business strategy (35%) business Increasing innovation by tapping Increasing employees of all backgrounds (34%) employees 1-18 Source: SHRM Weekly Survey, August 3, 2004 * * * Skill Level Required Skill Required 58% Average Skill Level: 3.6 Level: 40% 2% Level 1 Level 2 Level 3 Level 4 Level 5 Level 6 Source: Hudson Institute as reported in Arnold Packer, “Retooling the American Worker,” Washington Post Source: 1-19 * * * Current Skill Level 70.5% Average Skill Average Level: 2.6 Level: 16.1% 6.8% Level 1 Level 2 Level 3 Level 4 6.6% Level 5 Level 6 1-20 ...
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This note was uploaded on 02/05/2009 for the course BUS 20 taught by Professor Warne during the Fall '08 term at UC Riverside.

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