Professional Documents
Culture Documents
Chapter 1 Outline Chapter 1 Outline
Chapter 1 Outline Chapter 1 Outline
Chapter 1 Outline
Connor DiAngelo
Professor Demarco
BUA 101- 0007
11 September 2018
Chapter 1 Outline
Connor DiAngelo
Professor Demarco
BUA 101- 0007
11 September 2018
o Political environment
o Political/Legal environment based on relationship between government and business
(usually regulation is impact)
Legal system defines guidelines for organizations (Urban Outfitters subject to
product ID laws, hiring restrictions, zoning)
o Govt agencies regulate advertising, safety and health, conduct
o Pro/anti-business sentiment is valuable to consider, especially intl.
Obama’s presidency imposed business regulations
Sociocultural Environment
Sociocultural environment includes surrounding customs, morals, values, demographic of society
Also determines goods and services sold, and levels of business conduct accepted
o Ex: Urban Outfitters Ghettoopoly
Economic Systems (system for allocation of resources between individual citizens and organization)
Factors of production
o Factors of production are resources for goods and services
o Labor, capital, entrepreneurs, physical resources (and info resources)
o Also applicable to specific organization’s production of goods and services
o Labor (human capital) is physical and intellectual contributions from people to the
economy
Ex: Starbucks positions vary from baristas to business and finance jobs, employ
182K
o Capital
o Capital is financial resources needed to operate business; necessary to start new and
maintain business
Ex: Starbucks company purchase with savings/loan, publicly traded stock, long
short/term debt
o Entrepreneurs
o Entrepreneurs are people who accept risk and opportunity of starting a new business
Ex: Starbucks initially fails, new entrepreneurship goes into retail
o Economic systems encourage entrepreneurs to start new businesses, and maximized jobs
and profit
Physical resources
Physical resources are tangible items that businesses and organizations use to conduct business
o Natural resources, raw materials, offices, storage, manufacturing, parts and supplies,
computer and tech
Ex: Starbucks has many levels: beans, shipment, manufacturing, food products,
paper products, business items too
o Info resources
o Info resources is data and other info used in business
Market forecasts, specialized knowledge of people, and even data
Types of economic systems
Planned economy is where govt./central power controls economy through factors of production
and allocation of resources
o Communism is where govt. owns and operates all factors of production
Market economy
Connor DiAngelo
Professor Demarco
BUA 101- 0007
11 September 2018
o Market is a mechanism for exchange between buyers and sellers for specific
goods/services
o Capitalism sanctions/regulates private ownership of factors and incentivizes new
businesses/entrepreneurship
Mixed market is a system that includes both other market styles
o Privatization is the transition from govt enterprise to private business
o Socialism is planned economy where govt only controls some major sources of
production
Connor DiAngelo
Professor Demarco
BUA 101- 0007
11 September 2018
Connor DiAngelo
Professor Demarco
BUA 101- 0007
11 September 2018