Supply & Demand

Economic Indicators

The Business Cycle

Economic Cycles

Economic Systems

Mixed Economies

Comparing Economies

BUSINESS MANAGEMENTFEBRUARY 21, 2012

The Global Business Environment

It’s Just Good Business…

Effectiveness is when a business is doing the right things.

Efficiency is when a business is doing the right things well.

Ways to Achieve Effectiveness

Focus attention on customers’ needsUse marketing research

Provide excellent customer serviceOffer high-quality goods and services

Total Quality Management (TQM) – commitment to excellence that is accomplished by teamwork and continual improvement of work procedures

Ways to Achieve Efficiency

Specialization Experts for assigned tasks Mass production

Technology & Innovation Building faster with lower cost

Reorganization Empowering employees Redesigning work & work flow

CONSIDER QUALITY AND PRICE

Business Perspectives

Priorities of Consumers

Best quality productLowest price possible

Priorities of a Business

Lowest cost productionSale at the highest price (most profit) possible

AVERAGE AMERICAN (JAN-FEB)

AVERAGE FOREIGN CONSUMER (MAR-APR)

SMALL AMERICAN BUSINESS (MAY-JUN)

LARGE AMERICAN BUSINESS (JUL-SEP)

FOREIGN BUSINESS (OCT-DEC)

What would your behavior be in each scenario?

Case #1

A discovery by a small American business will enable it to sell a new

two-person car for $3,900. The car runs for 1,500 miles before requiring a four-hour

battery charge. Sales of the new vehicle are expected to be brisk

worldwide.

Case #2

The batteries in the new, inexpensive car described in Case 1

have become popular around the world. However, the batteries are

leaking acid, which washes into the soil and waterways. The acid is damaging crops, killing fish, and

making water undrinkable.

Case #3

Because of bad times, 25 percent of all full-time workers in America are laid off. Those who are

working are not getting any pay raises. People

without jobs are desperate.

Case #4

Many of America’s truck and van

divisions of car firms may have to close

because foreign firms have figured out how

to make popular brands that sell for

less.

Reasons for Entering International Trade

International Trade

Improve profitsLower production costsKeep pace with competitorsDeclining sales at homeFew trade restrictionsPersonal reasons: knowledge of culture, desire to travel, etc.

Trends in Business

Consumers support companies who care!

Green marketingSocial responsibilityGive back to the local community

Health-consciousEmployee benefits

Demographics

Importance of Demographics

Refers to statistics

that describe a

specific population

Examples include:AgeIncomeGenderMarital StatusEthnicityEducationOccupation

Shifts in Demographics

Businesses should be concerned with the effect of demographics on: Demand for a product or service Methods of advertising

ECONOMICSGLOBAL BUSINESS

TRENDS IN BUSINESSDEMOGRAPHICS

Summary

BIG PICTURE

THURSDAYlaws & regulations, business plan

MONDAYstart business plan project, test review packet

WEDNESDAYreview game, TEST on Characteristics of Business, Economics, the Global Marketplace, Trends & Demographics, Laws & Regulations