Lecture 2 - Dynamic Business Environment BUS-1201 Fall 2024 PDF

BUS-1201: Lecture 2 The Dynamic Business Environment University of Winnipeg Department of Business and Administration...

BUS-1201: Lecture 2 The Dynamic Business Environment University of Winnipeg Department of Business and Administration Instructor Jose A. Espinoza, PhD. Chess – Maarten van den Heuvel Fall 2024 Dynamic Business Environment Today's Agenda Why Study Business? Business Fundamentals The Business Environment Working - Rafael Oliveira Why Business? Definitions of Business “the activity of buying and selling goods and services” – Cambridge Dictionary “action which occupies time and demands attention and effort” – Oxford Dictionary. Common Thread: Takes much or your time and probably how you make a living. Develop Transferable Skills How to think critically How to communicate with others How to learn and adapt Consider Careers Entrepreneurship Human resources International business Management Marketing Co-operatives, non-profits Question - Leelo The First  “I don’t want to sell anything, buy anything, or process anything as a career. I don’t want to sell anything bought or processed, or buy anything sold or processed, or process anything sold, bought, or processed, or repair anything sold, bought, or processed.” Lloyd Dobler, Say Anything (1989) Business Fundamentals Filling A Need Revenue vs. Profit Risk and Profit Finding and fulfilling need for Goal is usually to make a Entrepreneurs take on risk: a for a good or service. profit by filling a need. Chance for loss. Goods: Tangible products. Revenue: Total amount Amount of loss. Services: Intangible of money received. products. Profit: Earnings beyond More risk can = more profit. expenses. Seize opportunity. Goods vs. Services: Innovation. Hybrids are common. However, more revenue ≠ Balance is shifting. more profit.  Evolution of Business in Canada Agriculture Manufacturing Service Original foundation and Increasing demand for workers Dominant industry in the primary driver of Canada’s in factories to produce goods. current Canadian economy, economy. involves both: Improvements in technology, Provision directly to Improvements in technology particularly in automation: customers. led to massive changes: Reduced number of workers Operating parts of other Greater efficiency via required. businesses via contracting. better equipment. Allowed production of new Consolidation under large goods. Jobs often require greater enterprises. specialization and tend to be higher paying. Business Fundamentals Impact on Society Stakeholders Create jobs and distribute Groups who stand to gain or profits within community. lose from business’ actions. Pay taxes to Gov. Primary vs. Secondary Stakeholders. Standard of Living: Goods and services you can buy. Stakeholders may have different and conflicting Quality of Life: General well- desires. being of society.  OECD – Better Life Index Organization for Economic Co-operations and Development Better Life Index Rankings Summary: Index of Using equal weights factors that impact well- for each factor: being in the 38 OECD 1. Norway countries. 2. Iceland 3. Switzerland 11 Factors Included: 4. Sweden Housing 5. Finland Income 6. Netherlands Jobs 7. Australia Community 8. United States Education 9. Denmark Environment 10.Canada Civic Engagement Health Life Satisfaction  Stakeholders of a Canadian Business 1, 8 1, 3 Wants 5, 8 Groups impacted by a business might want very different things. 8 Including, but not limited to: 1) Returns 6, 7 2) Compensation 3) Security 4) Support 5) Value 2, 3 6) Equity and Fair Treatment 7) Compliance 8) Transparency 7, 8 7 1, 4 2, 3, 4  The Business Environment What is it: The surrounding factors that help or hinder the development of business. Refers to factors affecting business in general but successful businesses monitor and respond to these factors. 6 Factors Legal environment. Economic environment. Technological environment. Competitive environment. Socio-Cultural environment. Global environment. Night Market – Steven Wei  The Business Environment Legal Economic Technological Restrictions that provincial The collective income, Inventions or innovations and federal laws place on expenditures, and resources from applied science or businesses with respect to that affect the cost of engineering research. conduct of activity. running a business. Impact Impact Impact Effectiveness by allowing Lessen or increase risk of Review economic indicators production of a good or starting a business. for major decisions. services. Help curb practices Relative standing of national Efficiency by allowing detrimental to business and economy may affect greater production with society. options. fewer resources. Examples Examples Examples Competition law. Value of currency. Combine harvester. Tax legislation. Employment levels. Accounting software. Personal information Consumer spending. protection acts.  The AI ‘Revolution’ Expectation: Effectiveness and Efficiency gains leading to unparalleled increases in Productivity that impact all industries. Reality – Upwork Study (July 2024) 96% of executives expected AI to increase their company’s productivity. 36% mandated use of AI. 77% of employees say it has added to their workload (with no other reductions). 47% say they don’t know how to get expected productivity gains. 71% of employees are burned out. 65% struggle to meet demands. Conclusions: Why are we not seeing gains? Tech may not be advanced enough yet. Employees may need training or skills. Tech is being applied to wrong tasks. Those Eyes - Owen Beard The point is more/new Tech does not always lead to gains.  The Business Environment Competitive Socio-Cultural Global Awareness of the existence The influence of Increasing of other businesses and their demographic and cultural interconnectedness between actions which may affect factors on society and countries creating global business success. business. markets (globalization). Impact Impact Impact Consider factors that make Shifts in population Access more costumers or competition more/less likely. characteristics lead to new target niche groups. Encourages development of opportunities and Global trade means global strategies to address challenges. competition. complex stakeholder wants. Volatile and rapidly Examples changing environment. Example Strategies Aging population. Exceed customer Greater diversity. Examples expectations Climate change Empower employees Complexity of supply chains.  Thank you! Next Time: The Role of Government Important Information Read Chapter 4 Consider reading ahead to: Chapter 2 Chapter 18 Ottawa Tower – Shayna Douglas