¶ … Business Environment
Describe the role of business in the economy, including the factors of production and the key dimensions of the business environment.
Business is the engine that drives the economy, providing jobs, purchasing raw materials from producers, and providing the products and services that all consumers use, improving the value of life for everyone in the environment. The income of the economy is distributed through the factors of production. The three main factors of production are labor, land, and capital (Mankiw, 2012, p.393). Companies employ many people, providing jobs and money for the economy through labor. Companies will continue to demand more labor until the cost begins to outweigh the value of this production factor. This is an important factor because these employees are also consumers who pump most of the money they receive right back into the economy in one way or another. Companies need available land, both for commercial production and for retail sales sites or office buildings. They pay for the land initially, but also put money into the economy by maintaining the land over time. Businesses also need capital so that they can make major purchases and increase production capabilities. They acquire capital from banks or investors who profit from these transactions, making more capital available to other businesses and individuals.
The business environment often has a critical influence on the overall economy and there are five key dimensions of this business environment. The economic environment, the competitive environment, the technological environment, the social environment, and the global environment all play a vital role in whether the economy will flourish or collapse (Kelly & McGowen, 2011, p.7). Any one of these factors can cause major problems in the business environment, such as a major recession in the economic environment, or conflicts in the global environment. A technological development could provide a potential boon for businesses, however.
2. Compare and contrast the roles of for-profit and nonprofit organizations in the economy.
There are many similarities between for-profit and nonprofit organizations when it comes to their impact on the economy. Each type requires large amounts of capital to operate...
Business Environment The role of business in the economy Sustainability of a business and prosperity to an economy go hand in hand. In order to attain profitability, businesses have a number of roles to play. Businesses provide society with products that are necessary to the society and otherwise unavailable Henderson & Affairs, 2004. Business assist in providing jobs to the local population, mobilization of resources and increase a tax pool for the government
Uses of visualization in business analytics include market segmentation analysis and factor analysis to define new audience segments based on psychographics. Visualization is often also used for pricing analysis to determine how elasticity can vary by product and area being sold into. 6. What are the steps involved in effective decision making and how can business intelligence assist in helping executive and managers make better strategic and operational decisions? Effective decision
Business Plan for a Financial Divorce Software Business Plan Divorce Software Business Plan relating to the Sales of a new Financial Divorce Software. Business Plan relating to the Sales of a new Financial Divorce Software F F1 F2 F3 G1 G1(a) G1(b) G1(c) Business Identification Keys to Success Company Summary Industry History Legal Form of Ownership Location and Facilities Management Structure Products and Service Market Analysis Target Market Industry Analysis Competitive Analysis Market Strategy Ps of Marketing Price List Selling Strategy Sales Forecast Implementation Strategy Overall Strategy Implementation Control Plan Financial Statements and Projections Revenue and Cost Estimate Forecasted Profit and Loss Statement Forecasted Balance Sheet Financial
Business Ethics Business proposal Walt Disney is the largest entertainment company in the industry all over the world. Throughout the years the company ahs become a leader in the source of entertainment.an in-depth look at the company's financial processes [provides an insight of how the company became known, respected and loved by many people all over the world. Disney is a familiar household name due to the its lasting impact not only
Business Summaries This chapter addresses the reasons that one should study business and businesses to begin with. The authors make the point that they do not intend for this to be a narrow study that just focuses on particular examples of successive and failed businesses, although it will include case studies too. But the major point of studying business, the authors write, is to provide a larger sense of what is needed
There has been little in the way of fiscal policy, and the result has been entirely predictable. With no particular influx of spending into the economy, the recovery has generally been quite weak. With no fiscal policy tools on the horizon, it is therefore unlikely that any improvement to the recovery will take place. International business is also an option for a company to improve its situation. If a company
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