BU111 Lecture Notes - Lecture 2: Information Technology, Canadian Dollar, Canadian Business

• School: WLU
• Department: Business
• Course: BU111
• Professor: Sofy Carayannopoulos

Document Summary

How managers determine opportunities (positive external trends or changes) and threats (negative external trends or changes) General environment affects all businesses (e. g. interest rates) Specific environment affects industry participants and the sector that you are participating in (e. g. competition, profitability) Pest model: considers political, economic, social/demographic, and technological factors. Porter"s five forces: analyzes 5 important sources of competitive pressure and intensity; predicts profitability of industry. Look for data, statistics, trends, forecasts, expert opinions, etc. Laws/regulations (e. g. how cigs are packaged and that it tells people it"s bad for you = companies aren"t pleased) Taxes (corporate taxes determines how much the corp. has to give up to gov, treat to increase income tax = consumers don"t have enough money to spend) Political system (e. g. canada is more socialist government is more involved. They let people create what they want and help, there are private hospitals and corporations: businesses don"t like being controlled (by gov.