BUS 203: BUSINESS ENVIRONMENT

Section: 03

Fall 2013
September 15, 2013

L2

Conceptualizing the biz. environment

Diversity
Internal/External
Complexity
Spatial levels
Dynamic

Interaction
Stakeholders

Values

What is a business? (Cont.)

Business is a mechanism for deciding the allocation of the
resources available to society between various possible uses
(or competing wants), the methods of production and the
distribution of the output, in a situation of scarcity where not
all wants can be satisfied.
The problem of scarcity!
Do you agree that the logic of the profit motive goes
against discrimination?
Is the customer always right?

The private sector

Free market vs. regulation
Competitive vs. market power
Profit vs. social responsibility

Other sectors of business

The difference between the private and the public
sector
Revenue, accountability, competition
The third sector rising in power and strength

Interactions between a business and its

environments
Responsiveness
Influence
Choice
How do these make a difference in the outcome?

Organizational structure

Functional structure
Matrix structure
Divisions & operational units
Hierarchical structure
Delayering modernizing trend

Environmental analysis
PEST
variants, - PESTLE, etc

SWOT
Stakeholder analysis example
MSA
Others expert opinion, trend exploration,