Global Business Mid Term #1 Prep Doc PDF

**Global Business Mid Term \#1 Prep Doc** **The Dynamic Business Environment** **[Terms & Definitions:]** **Goods** are [tangible] products -- things you can touch and see **Services** are [intangible] products -- like car insurance, the feeling of a good vacation A **business** is [any activit...

**Global Business Mid Term \#1 Prep Doc** **The Dynamic Business Environment** **[Terms & Definitions:]** **Goods** are [tangible] products -- things you can touch and see **Services** are [intangible] products -- like car insurance, the feeling of a good vacation A **business** is [any activity] that seeks to [provide goods and services] to others while operating at a [profit]. An **entrepreneur** is a person who risks time and money to start and manage a business. **Revenue** is the amount of money received for goods or services during a period of time **Profit** is the amount of money a business earns after what It spends for salaries and other expenses. **Risk** is the chance an entrepreneur takes of losing time and money on a business that may not prove profitable. **Standard of living** refers to the amount of goods and services people can buy with the money they have - **Quality of life** refers to the general well-being of a society - **Stakeholders:** Those who stand to lose or gain *With Example: Tim Hortons' Stakeholders* 1. 2. 3. 4. 5. 6. 7. **Offshoring/Outsourcing** **Offshoring** entails sourcing part of the purchased inputs outside of the country or contracting with other companies to do some or all of the functions of a firm, such as production or accounting. - **Outsourcing** means contracting with other companies to do some or all of the functions of a firm, such as production or accounting. **Q: Difference between Offshoring and Outsourcing** [**[https://www.youtube.com/watch?v=6vd0BgdhCFA]**](https://www.youtube.com/watch?v=6vd0BgdhCFA) **Likely will need to explain or at least identify the difference between Offshoring and Outsourcing** **Insourcing** is a relatively new term used to describe the situation where a company has functions that could be outsourced. **Nearshoring** is the process of outsourcing work to a company or individual located near your own A **non-profit organization** is an organization whose goals do not include making a personal profit for its owners or organizers. - - **Entrepreneurship vs. Working for Others** - - - - **Pros/Cons of Entrepreneurship vs. Working for Others - might be asked** The advantage of working for others is that somebody else assumes the entrepreneurial risk and provides you with benefits. When you consider Canada's wealthiest citizens, you will find that they arrived at their wealth as a result of this entrepreneurial spirit. **Five Factors of Production: IMPORTANT LIST** 1\. **Land (natural resources)** **2. Labour (workers)** **3. Capital (physical assets not money)** **4. Entrepreneurship** **5. Knowledge**  **Business Environment (5 ENVIRONMENTS) IMPORTANT LIST** 1. 2. 3. 4. 5. **Legal Environment** **Regulations are laws and rules (made by politicians) which effect how business can operate.** People are willing to start new businesses if they believe that the risk of losing their money is not too great. Part of that decision is affected by how governments work with businesses. - - - - Governments can do a lot to lessen the risk of starting and running a business through laws Examples of laws include the Canada Small Business Financing Act, the Consumer Starting a business, in some countries, like Venezuela, can be very bureaucratic because of all the government people you have to deal with to get the proper permits to operate Worldwide, the time has shortened **Economic Environment** **The Economic Environment looks at income, expenditures, and resources that affect the cost of running a business.** Businesses review the results of major economic indicators such as consumer spending, employment levels, and productivity. - - - - **Foreign Exchange** - the movement of a country's currency relative to other currencies also pertains to the Economic Environment. **Entrepreneurship** - Another aspect of the economic environment is the degree of entrepreneurship that is present In some countries (COMMUNIST COUNTRIES), the government owns most businesses and there is little incentive for people to work hard or create a profit. **Technological Environment** **Technology refers to inventions or innovations from applied science or engineering research.** - - - - - - - **Productivity** is the amount of output you generate given the amount of input. - - **MIGHT NEED TO IDENTIFY OR DEFINE THE DIFFERENCE BETWEEN EFFECTIVENESS AND EFFICIENCY** **E-commerce Likely need to know acronyms & recognize examples** **There are several major types of e-commerce transactions:** - - - - **B2C** is the regular business that companies do online with individual customers **B2B** is business doing business with other businesses, like suppliers of materials to a manufacturer **B2G** means the business that companies do with government agencies and departments to supply goods and services. EXAMPLE: Like a web hosting service supporting the ministry of health **G2C** refers to the business that government does online with people, such as renewing licenses or applying for permits. **B2B2C** describes business relationships in which two companies partner to offer services to consumers. **E-Business** Refers to a wide range of business activities on the web from simple posting of product photos to B2B marketplaces. **E-commerce** Refers to the websites that allow transactions so that customers can buy products online. - **E-commerce** A consequence of millions of people using web-based content is the rise in risks associated with personal security - **Social Media Marketing -examples** - - - - - - **COMPETITIVE ENVIRONMENT** All the environments are important, but the degree to which you need to deal with them depends on whether you do or do not have competition. **Empowerment -** Competing by giving employees decision-making authority - - - - - - - - **SOCIAL ENVIRONMENT MIGHT NEED TO DESCRIBE 1-3 EXAMPLES OF CHANGES IN THE SOCIAL ENVIRONMENT IN CANADA** Demographic Trends / **Demography**: the statistical study of the human population with regard to its **[size, density, and other characteristics such as age, race, gender, and income]**. - - - Example: **The Aging Population** More people are living longer due to: better technology/medical knowledge, better health habits, nutrition, exercise, reduction in number of smokers, etc. Example: **Increased Diversity** Canada has a strong multicultural population. In the last ten years, it has welcomed close to 2.7 million permanent residents. ***Is Migration a blessing or a problem or both?*** [[https://www.youtube.com/watch?v=cX02bJ1pyw4]](https://www.youtube.com/watch?v=cX02bJ1pyw4) **OTHER GLOBAL ENVIRONMENTAL ISSUES THAT IMPACT BUSINESS** **GLOBAL BUSINESS ENVIRONMENT** As businesses expand to serve global markets, new jobs will be created in both manufacturing and service industries. Global trade also means global competition. Rapid changes create a need for continuous learning. **Probably need to know crazy facts about BRICS & Reason for forming and advantages/disadvantages (list)** **BRICS** - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - **ECOLOGICAL ENVIRONMENT** **Climate change** is the movement of the temperature of the planet up or down over time. The issue now is global warming. - **EVOLUTION OF BUSINESS MIGHT ASK TO DESCRIBE EVOLUTION OF BUSINESS IN CANADA** **Agricultural -** The modern farming industry has become so efficient through the use of technology that the number of farms has dropped. **Goods -** Includes the manufacturing, construction, utilities, agriculture, forestry, fishing, mining, quarrying, and the oil and gas industries **Manufacturing-** Includes food, beverage, clothing, chemical, machinery, wood, and petroleum and coal products manufacturing. **Service Industries -** Services are intangible products (i.e., products that cannot be held in your hand), such as education, health care, insurance, recreation, and travel and tourism. ***In the past, the dominant industries in Canada produced goods such as steel, railroads, and machine tools. Today, the fastest-growing firms provide services in areas like health,*** ***telecommunications, entertainment, and finance*** **CHAPTER 1 SUMMARY** **1. Business profit/risk assumption** - **2. Stakeholder roles** - **3. Role of entrepreneurship in wealth creation** - **4. Elements of business environment** - - - - - - **5. Rise of the service sector** -