1. Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson
Chapter 1
6 Business Environments
Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

2. Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson
Learning Goals
Know the six elements that make up the business environment and explain why each business environment is important to organizations.
Be able to discuss how the six different business environments can impact a business.
Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

3. The Business Environment
The Legal and Regulatory Environment
The Economic Environment
The Technological Environment
The Competitive Environment
The Social Environment
The Global Environment
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4. Legal and Regulatory Environment
Freedom of ownership
Contract laws and regulations
Elimination of corruption
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5. Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson
Economic Environment
Economic indicators: consumer spending, employment levels and productivity.
Income, expenditures and resources that effect the cost of running a business.
Currency fluctuations that affect imports and exports.
Government regulations and business ownership.
Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

6. Technological Environment
Information, technology and productivity
Growth of E-commerce
Business-to-consumer (B2C)
Business-to-business (B2B)
Internet marketing
Databases
Identity theft
Personal Information Protection and Electronic Documents Act (PIPEDA)
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7. Competitive Environment
Components of competition
Competing by exceeding customer expectations
Competing by restructuring and empowerment
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8. Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson
Social Environment
Demographic changes:
Aging population
Managing diversity
Two-income families
Single parents
Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

9. Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson
Global Environment
Importance to all other environmental influences
Growth of international competition
Increase of free trade and trade agreements
Importance of innovation
Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson