Slide 13

Also available on a Transparency Acetate

See Learning Goal 3: Examine how the economic environment and taxes affect
businesses.
Government Takeover
1. Oil prices have risen over 250% in last six years.
2. With the soaring energy prices, countries like Russia, Venezuela, and Bolivia are
nationalizing their oil and natural gas resources.
3. Ask the students:
a. Why governments would nationalize industries/assets such as oil? (More
control and profits)
b. What impact would this trend have on international companies? (Loss of /
Threat to assets, profits, capitalism and independence; companies would not
do business in such countries or look to exit)

Slide 14
Also available on a Transparency Acetate
See Learning Goal 3: Examine how the economic environment and taxes affect
businesses.
Corrupt Countries
1. Transparency International conducts and publishes the corruption studies annually.
2. The most corrupt countries on the list appear to be Asian countries with Bangladesh
leading. The least corrupt country is Iceland.
3. Ask the students what impact does corruption have on business? (Businesses do
not flourish and capitalism and economic independence is suppressed creating a
very negative business and social environment. Most corrupt countries also tend to
be the developing third world countries)

Slide 19
See Learning Goal 4: Illustrate how the technological environment has affected
businesses.
Identity Theft
1. The number of ID theft cases are rising every year. From 2003 to 2005, the number
of complaints increased by about 20%.
2. About 29% of the victims were between the ages of 18-29 (The same age group of
the students.)
3. Top five States for identity theft (per 100,000 population): Arizona, Nevada,
California, Texas, and Colorado.
(Source: Identity Theft--Victim Complaint Data,
2005, Federal Trade Commission;www.consumer.gov/idtheft)

4. Ask the students How often do they throw mail or other documents with their
personal information without shredding? (It is becoming imperative that we shred
all documents with personal info and keep the sharing of private info such as credit
card, bank account info, and social security numbers with very limited number of
people.)

Slide 20
Also available on a Transparency Acetate
See Learning Goal 4: Illustrate how the technological environment has affected
businesses.
Identity Theft
1. As many as one in six people are now vulnerable to identity theft.
2. Request one credit report every four months from one of the three credit bureaus.
3. Offer your driver license number instead of your social security number.
4. Shred any documents or records that could be discovered by other people.

Slide 22
Also available on a Transparency Acetate
See Learning Goal 5: Identify various ways in which businesses can meet and beat
competition.
Consumer Trends
1. Dynamic changes in the business environment are on-going. To remain successful,
companies must study the environment to take advantage of consumer
opportunities.
2. Ask the students why is the popularity of water increasing? (Health trends)
3. Ask the students What do they prefer as a drink of choice when thirsty?
(Carbonated soda drinks are still number one ahead of bottled water.)
4. How can beverage companies like Coca-cola and Pepsi compete with water?
(These companies are introducing low calorie/no calorie drinks, more healthy drinks
such as fruit juices, and finally each of them have also introduced their line of
water. Coca-cola Dasani water; Pepsi Aquafina.)

Slide 25
Also available on a Transparency Acetate
See Learning Goal 6: Demonstrate how the social environment has changed and tell what
the reaction of the business community has been.
U.S. Household Size

1. Households are defined as a household maintained by a family group, and include any
unrelated people residing there.
2. In 1900, the average household size was 4.6 members; In the year 2000, it was 2.62
members, and in 2004 it was 2.57. (Source: U.S. Census Bureau, 6/29/05)
3. The decrease in household members from 1900 to today, is approximately 44%.

Slide 26
See Learning Goal 6: Demonstrate how the social environment has changed and tell what
the reaction of the business community has been.
Buying Power of Diverse Groups
1. This slide identifies the opportunities for demographers and savvy marketers to
capture the looming potential of these consumer categories.
2. By 2007, the Selig Center for Economic Growth projects buying power at:
Hispanics

$926.1 Billion

African-Americans
Asians
Native-Americans

852.8
454.9
57.3

1. Point out to the students that differences in (buying power) and spending by race
and ethnic groups suggest that one general advertisement for all consumers misses
potential market opportunities.

Slide 27
See Learning Goal 6: Demonstrate how the social environment has changed and tell what
the reaction of the business community has been.
21st Century Diversity Issues
1. This slide acknowledges the social issues facing American Business in the 21st
Century.
2. Gender is increasingly becoming an influence on business. Its estimated that 8085% of all consumer goods are influenced by women. (Source: Business Trends)
3. Ask the student why its important for business to understand these issues?
(Understanding these issues can often identify opportunities that have been missed
in the past due to lack of knowledge and understanding of diversity.)

Slide 28
Also available on a Transparency Acetate

See Learning Goal 6: Demonstrate how the social environment has changed and tell what
the reaction of the business community has been.
Immigration
1. This slide acknowledges the immigration issues facing America today.
2. Immigration debate is taking the center stage and many in politics are attempting
to legislate what to do about illegal immigrants.
3. Ask the students how do illegal immigrants affect our economy? How is it
different from the legal immigrants? (Key difference between the legal and illegal
immigrants can be the contribution to the economy and taxes. The illegal
immigrants often take on the jobs that others do not want but they also affect the
healthcare system adversely.)

Slide 29
See Learning Goal 6: Demonstrate how the social environment has changed and tell what
the reaction of the business community has been.
Older Americans Working
1. Americans are working longer on the job than in years past.
2. Approximately 75% of men, aged 55-59, are working; about 63% of women in this
category are working. (Source: USA Today)
3. Over 19% of men, and 10% of women, 65 years or older, still work.
4. Ask the students why older workers feel the need to continue to work at advancing
ages? (Possible reasons include but are not limited to: Rising healthcare costs,
increased health and quality of life aspects, and weak stock market.)

Slide 30
Also available on a Transparency Acetate
See Learning Goal 6: Demonstrate how the social environment has changed and tell what
the reaction of the business community has been.
American Living Longer
1. The U.S. life expectancy has grown from 47.3 years in 1900s to a record 77.9 years
in 2004.
2. Ask the students why is the life expectancy increasing? (Some of the reasons
would be better healthcare, modern medicine, and quality of life.)
3. Ask the students what does this trend mean for businesses? (Some of the
answers would be aging population as a market for retail and consumer goods,
more need for healthcare and government services, and more people available in
the workforce for a longer timeframe.)

Slide 31
Also available on a Transparency Acetate
See Learning Goal 6: Demonstrate how the social environment has changed and tell what
the reaction of the business community has been.
Exurbs: Growth of Outer Suburbs
1. Migration trend in the U.S. shows northeasterners are moving south and west, and
west coast residents are moving inland.
2. Ask the students why do they believe that people would make such moves?
(Some of the possible answers would be cheaper housing, open space, quality of
life, and better job market.)

Slide 33
See Learning Goal 7: Analyze what businesses must do to meet the global challenge,
which includes war and terrorism.
Does Global Experience Help Your Career?
1. Chief Financial officers have responsibility for a companys financial health and
raising capital for investment in a Global Economy.
2. International experience is necessary to establish Banking partnerships to remain
competitive in a changing global market.
3. International experience will help a company identify business opportunities while
reducing a companys exposure to risk.

Slide 35
Also available on a Transparency Acetate
See Learning Goal 8: Review how trends from the past are being repeated in the present
and what such trends will mean for tomorrows college graduate.
Trends in Business
1. Dynamic changes in the business environment occur on a constant basis.
2. To remain successful, companies must study the environment to take advantage of
opportunities and avoid threats:

Socio-cultural changes become the leader at identifying change.

Competition know strengths and weaknesses of your competitors.

Economy be aware of your financial climate.

Legal-Political know present laws and potential future regulations

Technology focus on continually improving each process you do.

3. Business must increase employee training to improve decision-making.

4. The aging American workforce will require companies to develop technology to
replace workers.

Slide 36
See Learning Goal 8: Review how trends from the past are being repeated in the present
and what such trends will mean for tomorrows college graduate.
Leveraging Diverse Workforce
1. With advancement in technology, travel, and communication, the world is
becoming smaller everyday.
2. To understand and identify with the diverse customers, organizations must actively
leverage its diverse workforce to gain competitive advantage.
3. Ask the students what other ways an organization can leverage its diverse
workforce? [Some additional ways can be: recruiting diverse employees, taking
advantage of diverse experiences of employees, mentoring programs, etc. (source:
SHRM Weekly Survey)]