Professional Documents
Culture Documents
is influenced by a lot of
factor both in the
microenvironment and
macroenvironment.
Weather
Natural disasters
Culture
Business Opportunities
and Threats
Political Forces
Economic Forces
Social Forces
Technological Forces
Laws, regulations and
restrictions.
Tax policies, labor laws,
environmental laws, trade
restrictions and tariffs.
Economic growth,
interests rates and
inflation rate.
Age, group affiliation,
religion, civil status and the
economic status of consumers
Buying habits, attitudes,
attitudes, ethics, personalities
and values.
Research and development
activities, automation,
licensing, patenting,
technological shifts and
outsourcing decisions
Developments in the global
economy are influenced by changes
in two significant aspects:
The capacity to produce or
manufacture and
The capacity to distribute or transport
Mercantilism (1500-1780)
Industrial Revolution (1780-1880)
Fordism (1880-1970)
Post-Fordism (1970-2010)
Globalization (2010-present)
The rise of European global powers
Countries accumulated wealth through
trade relations with other countries and
colonies
Other empires like India and China were
not as active in global trade and were
restricted to trading within their
regional markets
Methods of production remained
unchanged, relying on the methods
and process developed during the
Middle Ages.
Production and distribution became
merchandized
Large factories were established and
there was also an increase in
employment.
Industrial cities emerged and trade
flourished
Transportation was
improved with the
construction of canals,
waterways, roads and
railroads.
The rise of multinational
corporations through the
pioneering work of Henry
Ford of Ford Motor
Company.
Introduction of
standardized production
process for his Ford Model
T automobile which
resulted in increased
production and profit.
Introduction of the
assembly line
Introduction of
electric motor
To standardize a product
and manufacture it by
mass at a price so low that
the common man can
afford to buy it.
Computer-controlled tools and
efficient techniques customize and
tailored the production process to a
particular location.
The internet provided a more
convenient medium for
communication
Productionwas no longer confined
to manufacturing plants and could
be done anywhere in the world
through improvements in
production methods and
information technology.
Companies are operating within a
global marketplace and economy.
Establishment of regional economic
organizations that enable
companies from different countries
to engage in free trade with each
other.
Stiff competition among
companies and the
constant need to maintain
quality in order to attract
customers.
Sustainability refers to the
conduct of business
operations with due regard
to its effects on the
environment.
Basically, the role of
business is to produce
goods and services
which consumers need.
Businessfirm produce goods
and services from the factors
of production provided by
society.