Welcome!
Business Environment
Dr. Satyendra Singh
Professor, Marketing and International Business
University of Winnipeg, CANADA
https://sites.google.com/view/drsatsingh
s.singh@uwinnipeg.ca
Objectives
① Business fundamentals
② Business stakeholders
③ Factors of production for wealth generation
④ Business environment
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① Business Fundamentals
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Business − find a need for products and services for profit
Balance/tradeoff – risk and profit, ↑risk ↑profit
Goods Services
Output Tangible Intangible
Customer contact ↓ ↑
Labor content ↓ ↑
Uniformity of input/output ↑ ↓
Quality assurance Easy Difficult
Measure of productivity Easy Difficult
Offshoring, outsourcing, insourcing (opposite of outsourcing)
Not for profit organizations – no dividends
Employees vs entrepreneurs (↑risks)
Businesses create wealth → ↑ Standards of Living ($)and ↑ Quality of Life (wellbeing)
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Goods vs. Services in Canada (% of total labor in industry)
Most systems are a blend of both good & service. Service sector accounts for > 80% of jobs in Canada.
② Stakeholders: Those Who Stand to Lose or Gain
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want value
want security
want returns
want to be paid
want support
want to be paid
want “equity”
want compliance
want returns
want protection
③ 5 Factors of Production for Wealth generation
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natural resources
workers
④ Business Environment – factors that help/hinder business
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Business environment affects us: ↑economic activities, ↑competition, ↑ learning, AI…
Economic Environment
Resources that affect the cost of running a business
Income, expenditures
Economic indicators – consumer spending, employment, productivity…
Taxes and regulation – ↑or ↓
Degree of entrepreneurship – ↑or ↓
Exports and Imports – ±
Foreign exchange – sanctions
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Technological Environment
Scientific inventions or innovations
IT, Databases, Bar codes, Internet, Wi-Fi, Social media… identity theft…
↑E-commerce:
Business-to-Consumer (B2C)
Business-to-Business (B2B)
Business-to-Government (B2G) − webhosting
Government-to-Consumers (G2C) − driving license…
Physical stores disappearce!
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Social/Social-Cultural Environment�
Demography: age, race, gender, income…
↑Live, better medical, nutrition knowledge…
↓population, ↑immigration, ↑LGBTQ…
Managing Diversity, culture…
3m immigrants in the last 10 years in Canada
Anti-immigration!
Canadian values – binding force
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Competitive Environment
Competition depends on business environment
Customer service − ↓ or ↑ expectations
Stakeholder recognition − Concern for the environment
Employee benefits − vacation pay
Competing by giving employees decision-making authority − empowerment
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Legal and Regulatory Environment
Government makes laws under which businesses operate
Environment conducive to doing business − ↑growth, ↓risk…
Ownership freedom, easy in forming business…
Canada Small Business Financing Act − loans, ↓collateral!...
Consumer Packaging and Labelling Act − mandatory information…
Trade Unions Act − legal protection e.g. strike…
Tax laws, Contract laws, Anti-corruption laws,…
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Questions?�s.singh@uwinnipeg.ca