ABM 11 - Org&Mgt Module 2

ORGANIZATION AND
MANAGEMENT
MODULE 2
Prepared by:
CARL JOSEPH C. FUERZAS

Instructor
This module is made to ACADEMICALLY HELP and ENRICH the SCC-SHS students. Please DON’T
REPLICATE without proper permission and authorization.
HOUSE RULES
Course Title: ORGANIZTION AND MANAGEMENT
Course Description: This course focuses on developing your knowledge, skills, and attitudes for you
to become creative, innovative, and reflective when you deal with varied workplace situations in the futur
The following guides and house rules will help you to be on track and complete the module with a
smile on your face.
1. Read and understand every part of the module. If there are some contents or tasks
which you find difficult to understand, try to re-read and focus. You may also ask
help from your family at home, if it doesn’t work, you may send a private
message on my Facebook account (Carl Fuerzas)
2. Each module begins with an overview and a list of the topics you are expected to
learn.
3. Before reading the module and working on the activities, answer the pretest first.
Find out how well you did by checking your answers against the correct answers
in the answer key.
4. At the end of each lesson try to reflect and assess if you were able to achieve the
learning objectives. Remember that you can always read again if necessary.
5. Learn to manage your time properly. Study how you can manage to work on this
module in consideration of your other modules.
6. Each module has worksheets where you can do all your activities. At the end
of the month, remove the worksheets and submit them to your teacher.
7. Have patience and do not procrastinate.
8. Practice the virtue of honesty in doing all your tasks.
9. Lastly, the activities in the module must be done by you and not by others. Your
family and friends may support and guide you but you must not let them do the
work. DO YOUR BEST AND GOD WILL DO THE REST.
CARL JOSEPH C. FUERZAS

Instructor
Module 2
THE FIRM AND ITS

ENVIRONMENT
ROLE OF BUSINESS IN
ECONOMY
Pretest
To find out how much you already know about the concepts in this module,
answer the Pretest below.
Name: Course & Year: _
Directions: Perform the tasks below. Provide your answers on the space provided.
Test I. Encircle the letter that corresponds to your answer.
1. The study of management theory is important for which of the following reasons:
A) It helps decision making
B) Management theories are interpretive and evolve with organizational changes
C) It is scientific
D) All of the above
2. Which approach to the study of organizational behavior emphasizes the formal structure, hierarchy
of management, the technical requirements and the assumption of rational behavior?
A) The human relations approach
B) The contingency theory
C) The systems approach
D) The classical approach
3. Which of the following are sub-groupings of the classical approach?
A) Individual and bureaucracy

B) Scientific management and bureaucracy
C) Scientific management and gender management
D) Environment and individual
4. What is the major criticism of the attempt to define generalized models of

management theory?
A. The structure of management is dependent on situational variables

B. They provide universalistic principles of behavior.
C. The assumption of national culture
D. The categorization of writers is arbitrary
5. What does Crainer suggest happens when one idea after another fails to translate
into sustainable practice?
A. Corporate managers continue to trust theory
B. Nothing
C. Ideas become as important to management decisions as is instinct
D. There is a growing disillusionment with the pedlars of managerial wisdom
Module 2 Lesson 1
The Firm and Its Environment
Learning Outcomes:
• Describe the external marketing environment in which businesses operate.
• Discuss the factors that influence consumer behavior.
Lesson Proper
The Marketing Environment
By and large, managers can control the four Ps of the marketing mix: they can decide which products
to offer, what prices to charge for them, how to distribute them, and how to reach target audiences.
Unfortunately, there are other forces at work in the marketing world—forces over which marketers
have much less control. These forces make up a company’s external marketing environment, which,
as you can see in Figure 9.14 "The Marketing Environment", we can divide into five sets of factors:
1. Political and regulatory
2. Economic
3. Competitive
4. Technological
5. Social and cultural
Figure 9.14 The Marketing Environment
These factors—and changes in them—present both threats and opportunities that require shifts in
marketing plans. To spot trends and other signals that conditions may be in flux, marketers must
continually monitor the environment in which their companies operate. To get a better idea of how
they affect a firm’s marketing activities, let’s look at each of the five areas of the external
environment.
The Political and Regulatory Environment
Federal, state, and local bodies can set rules or restrictions on the conduct of businesses.
The purpose of regulation is to protect both consumers and businesses. Businesses favor
some regulations (such as patent laws) while chafing under others (such as restrictions
on advertising). The tobacco industry, for example, has had to learn to live with a federal
ban on TV and radio advertising. More recently, many companies in the food industry
have expressed unhappiness over regulations requiring the labeling of trans-fat content.
The broadcasting industry is increasingly concerned about fines being imposed by the
Federal Communications Commission for offenses against “standards of decency.” The
loudest outcry probably came from telemarketers in response to the establishment of
“do-not-call” registries.
All these actions occasioned changes in the marketing strategies of affected companies.
Tobacco companies rerouted advertising dollars from TV to print media. Food
companies reduced trans-fat levels and began targeting health-conscious consumers.
Talent coordinators posted red flags next to the names of Janet Jackson (of the now-
famous malfunctioning costume) and other performers. The telemarketing industry
fired workers and scrambled to reinvent its entire business model.
The Economic Environment
Every day, marketing managers face a barrage of economic news. They must digest it,
assess its impact, and alter marketing plans accordingly. Sometimes (but not recently),
the news is cause for optimism—the economy’s improving, unemployment’s declining,
consumer confidence is up. At other times (like today), the news makes them nervous—
our economy is weak, industrial production is down, jobless claims are rising, consumer
confidence has plummeted, credit is hard to get. Naturally, business thrives when the
economy is growing, employment is full, and prices are stable. Marketing products is
easier because consumers are willing to buy. On the other hand, when the economy is
slowing (or stalled) and unemployment is rising, people have less money to spend, and
the marketer’s job is harder.
Then there’s inflation, which pushes interest rates upward. If you’re trying to sell cars,
you know that people facing higher interest rates aren’t so anxious to take out car loans.
Sales will slip, and to counteract the anticipated slowdown, you might have to add
generous rebates to your promotional plans.
Moreover, if you operate in foreign markets, you can’t focus on solely domestic
economic conditions: you have to monitor the economy in every region where you do
business. For example, if you’re the marketing director for a U.S. company whose goods
are manufactured in China and sold in Brazil, you’ll need to know as much as you can
about the economies in three countries: the United States, China, and Brazil. For one
thing, you’ll have to pay particular attention to fluctuations in exchange rates, because
changes will affect both your sales and your profits.
The Competitive Environment
Imagine playing tennis without watching what your opponent was doing. Marketers who
don’t pay attention to their competitors are playing a losing game. In particular, they
need to monitor the activities of two groups of competitors: the makers of competing
brands and the makers of substitute products. Coke and Pepsi, for instance, are brand
competitors who have engaged in the so-called cola wars for decades. Each tries to
capture market share by convincing people that its soft drinks are better. Because
neither wants to lose share to the other, they tend to resort to similar tactics. In summer
2004, both companies came out with nearly identical new colas boasting half the sugar,
half the calories, and half the carbohydrates of regular colas. Coke called its product
Coke C2, while Pepsi named its competing brand PepsiEdge. Both companies targeted
cola drinkers who want the flavor of a regular soda but fewer calories. (By the way, both
products failed and were taken off the market.)
Meanwhile, Coke and Pepsi have to watch Nantucket Nectars, whose fruit drinks are
substitute products. What if Nantucket Nectars managed to get its drinks into the soda
machines at more fast-food restaurants? How would Coke and Pepsi respond? What if
Nantucket Nectars, which markets an ice tea with caffeine, introduced an ice tea drink
with mega amounts of caffeine? Would marketers at Coke and Pepsi take action? What
if Nantucket Nectars launched a marketing campaign promoting the health benefits of
fruit drinks over soda? Would Coke and Pepsi reply with campaigns of their own?
Would they respond by introducing new non-cola products?
The Technological Environment
When’s the last time you rented a VHS tape of a new movie? If you had trouble finding
it, that’s because DVDs are in and videotapes are out. Videotape makers who were
monitoring technological trends in the industry would probably have taken steps to keep
up (go into DVDs) or otherwise protect themselves from losses (maybe even getting out
of the market). In addition to making old products obsolete, technological advances
create new products. Where would we be without the cell phone, digital cameras, text
messaging, LASIK surgery, and global positioning systems?
Figure 9.15
Web sites like iTunes and Amazon.com are now offering customers the option of downloading
movies. Do you think DVDs will suffer the same fate as videocassettes?
New technologies also transform the marketing mix in another important way: they
alter the way companies market their products. Consider the revolutionary changes
brought about by the Internet, which offers marketers a new medium for promoting and
selling a vast range of goods and services. Marketers must keep abreast of technological
advances and adapt their strategies, both to take advantage of the opportunities and to
ward off threats.
The Social and Cultural Environment
Marketers also have to stay tuned to social and cultural factors that can affect sales. The
values and attitudes of American consumers are in a state of almost constant flux;
what’s cool one year is out of style the next. Think about the clothes you wore five years
ago: would you wear them today? A lot of people wouldn’t—they’re the wrong style, the
wrong fit, the wrong material, the wrong color, or just plain wrong. Now put yourself in
the place of a marketer for a clothing company that targets teenagers and young adults.
You wouldn’t survive if you tried to sell the same styles every year. As we said at the
outset of this chapter, the key to successful marketing is meeting the needs of
customers. This means knowing what they want right now, not last year.
Here’s another illustration. The last few decades have witnessed monumental shifts in
the makeup of the American workforce. The number of women at all levels has
increased significantly, the workforce has become more diverse, and telecommuting is
more common. More people place more importance on balancing their work lives with
the rest of their lives, and fewer people are willing to sacrifice their health to the
demands of hectic work schedules. With these changes have come new marketing
opportunities. As women spend more time at work, the traditional duties of the
“homemaker” have shifted to day-care centers, nannies, house-cleaning services, and
(for those who can afford them) child chauffeurs, birthday-party coordinators, and even
family-photo assemblers.Sandra Tsing Loh, “Nannyhood and Apple Pie,” The Atlantic,
October 1, 2003, 122–23. The number of gyms has mushroomed, the selection of home
office furniture has expanded, and McDonald’s has bowed to the wishes of the health-
conscious by eliminating its “super-size” option.
Generation Gaps
Clothiers who target teens and young adults (such as Gap and Abercrombie & Fitch)
must estimate the size of both current and future audiences. So must companies that
specialize in products aimed at customers in other age brackets—say, young children or
retirees. Marketers pay particular attention to population shifts because they can have
dramatic effects on a consumer base, either increasing or decreasing the number of
potential customers.
Marketers tend to assign most Americans born in the last sixty years to one of three
groups: the baby-boom generation (those born between 1946 and 1964), Generation X
(1965 to 1975), and Generation Y—also known as “echo baby boomers” or
“millenniums” (1976 to 2001).Jessica R. Sincavage, “The Labor Force and
Unemployment: Three Generations of Change,” Monthly Labor Review, June 2004,
34. In addition to age, members of each group tend to share common experiences,
values, and attitudes that stay with them as they mature. These values and attitudes
have a profound effect on both the products they want and the marketing efforts
designed to sell products to them. Let’s look a little more closely at some of the defining
characteristics of each group.
Baby Boomers
The huge wave of baby boomers began arriving in 1946, following World War II, and
marketers have been catering to them ever since. What are they like? Sociologists have
attributed to them such characteristics as “individuality, tolerance, and self-
absorption.”John Leo, “The Good-News Generation,” U.S. News & World Report,
November 3,
2003, http://www.usnews.com/usnews/opinion/articles/031103/3john.htm (accessed
October 21, 2011). There are seventy million of them,Ellen Neuborne and Kathleen
Kerwin, “Generation Y,” BusinessWeek Online, February 15,
1999, http://www.businessweek.com/1999/99_07/b3616001.htm (accessed May 21,
2006). and as they marched through life over the course of five decades, marketers
crowded the roadside to supply them with toys, clothes, cars, homes, and appliances—
whatever they needed at the time. They’re still a major marketing force, but their needs
have changed: they’re now the target market for Botox, pharmaceutical products, knee
surgery, financial investments, cruises, vacation homes, and retirement communities.
Generation X
Because birth rates had declined by the time the “Gen X” babies first arrived in 1965,
this group had just one decade to grow its numbers. Thus, it’s considerably smaller
(seventeen millionEllen Neuborne and Kathleen Kerwin, “Generation Y,” BusinessWeek
Online, February 15,
1999, http://www.businessweek.com/1999/99_07/b3616001.htm (accessed October 21,
2011).) than the baby-boomer group, and it has also borne the brunt of rising divorce
rates and the arrival of AIDS. Experts say, however, that they’re diverse, savvy, and
pragmaticEllen Neuborne and Kathleen Kerwin, “Generation Y,” BusinessWeek Online,
February 15,
2011). and point out that even though they were once thought of as “slackers,” they
actually tend to be self-reliant and successful. At this point in their lives, most are at
their peak earning power and affluent enough to make marketers stand up and take
notice.
Generation Y
When they became parents, baby boomers delivered a group to rival their own. Born
between 1976 and 2001, their sixty millionEllen Neuborne and Kathleen Kerwin,
“Generation Y,” BusinessWeek Online, February 15,
2011). children are sometimes called “echo boomers” (because their population boom is
a reverberation of the baby boom). They’re still evolving, but they’ve already been
assigned some attributes: they’re committed to integrity and honesty, family oriented
and close to parents, ethnically diverse and accepting of differences, upbeat and
optimistic about the future (although the troubled economy is lessening their
optimism), education focused, independent, and goal oriented.Ellen Neuborne and
Kathleen Kerwin, “Generation Y,” BusinessWeek Online, February 15,
2011); Kari Richardson, “Zell Conference Reveals Next Marketing Wave,” Kellogg
World (Kellogg School of Management, Northwestern University, Winter
2002), http://www.kellogg.northwestern.edu/kwo/win02/inbrief/zell.htm (accessed
October 21, 2011); Michele Fernandez-Cruz, “Advertising Agencies Target Generation
Y,” youngmoney.com, http://www.youngmoney.com/lifestyles/campus_life/031202_0
1 (accessed May 21, 2006). They also seem to be coping fairly well: among today’s teens,
arrests, drug use, drunk driving, and school dropout rates are all down.Bruce Tulgan
and Carolyn A. Martin, “Book Excerpt: Managing Generation Y—Part I,” BusinessWeek
Online, September 28,
2001, http://www.businessweek.com/smallbiz/content/sep2001/sb20010928_113.htm
(accessed October 21, 2011).
Generation Ys are being courted by carmakers. Global car manufacturers have launched
a number of 2012 cars designed to cater to the members of Generation Y.Karl Brauer,
“The Best Cars for Generation
Y,” CNBC, http://www.cnbc.com/id/41172515/The_Best_Cars_for_Generation_Y (acce
ssed October 21, 2011). Advertisers are also busy trying to find innovative ways to reach
this group, but they’re finding that it’s not easy. Generation Ys grew up with computers
and other modes of high technology, and they’re used to doing several things at once—
simultaneously watching TV, texting, and playing games on the computer. As a result,
they’re quite adept at tuning out ads. Try to reach them through TV ads and they’ll
channel-surf right past them or hit their TiVo remotes.Anthony Bianco, “The Vanishing
Mass Market,” Business Week, July 12, 2004, 61–68. You can’t get to them over the
Internet because they know all about pop-up blockers. In one desperate attempt to get
their attention, an advertiser paid college students fifty cents to view thirty-second ads
on their computers.Stephen Baker, “Channeling the Future,” BusinessWeek Online, July
12,
2004, http://www.businessweek.com/magazine/content/04_28/b3891013_mz001.ht
m (accessed October 21, 2011). Advertisers keep trying, because Generation Y is big
enough to wreck a brand by giving it a cold shoulder.
Consumer Behavior
Why did you buy an Apple computer when your friend bought a Dell PC? What
information did you collect before making the decision? What factors did you consider
when evaluating alternatives? How did you make your final choice? Were you happy
with your decision? To design effective strategies, marketers need to find the answers
that consumers give to questions such as these. In other words, they try to improve their
understanding of consumer behavior—the decision process that individuals go through
when purchasing or using products. In Section 9.8.7 "The Buying Process", we’ll look at
the process that buyers go through in choosing one product over another. Then, we’ll
explore some factors that influence consumers’ behavior.
The Buying Process
Generally speaking, buyers run through a series of steps in deciding whether to purchase
a particular product. Some purchases are made without much thought. You probably
don’t think much, for example, about the brand of gasoline you put in your car; you just
stop at the most convenient place. Other purchases, however, require considerable
thought. For example, you probably spent a lot of time deciding which college to attend.
Let’s revisit that decision as a means of examining the five steps that are involved in the
consumer buying process and that are summarized in Figure 9.16 "The Buying
Process": need recognition, information search, evaluation, purchase,
and postpurchase evaluation.
Figure 9.16 The Buying Process
1. Need recognition. The process began when you recognized a need to go to college. Perhaps you
wanted to prepare for a particular career, to become better educated, or to postpone going to work
full time. Maybe your parents insisted.
2. Information search. Once you recognized the need to go to college, you probably started
gathering information about colleges. You may have gone online and studied the Web sites posted
by a few schools. Perhaps you attended college fairs or spoke with your high school guidance
counselor. You probably talked with friends about your options. Once you let colleges know that
you were interested, admissions departments likely sent you tons of information.
3. Evaluation. At this point, you studied the information you’d gathered. First, you probably decided
what you wanted from a college. Perhaps price was your number-one criterion, or maybe distance
from home. Maybe size was important, or reputation or available majors. Maybe it was the quality
of the football team or the male-to-female ratio.
4. Purchase. Ultimately you made a “purchase” decision. In so doing, you focused on what was most
important to you. Naturally, you could choose only among schools that had accepted you.
5. Postpurchase evaluation. The buying process didn’t end when you selected a school. It continues
today, while you’re using the “product” you purchased. How many times have you rethought your
decision? Are you happy with it? Would you make the same choice again?
Understanding the buying process of potential students is crucial to college

administrators in developing marketing strategies to attract qualified “buyers.” They’d
certainly like to know what information you found useful, which factors most influenced
your decision, and how you made your final choice. They’ll also want to know whether
you’re happy with your choice. This is the kind of information that colleges are seeking
when they solicit feedback, both from students who chose their schools and from those
who didn’t.
Influences on Buying Behavior
Did you ever buy something you knew you shouldn’t buy but just couldn’t help
yourself—something you simply wanted? Maybe it was a spring-break trip to the
Bahamas that you really couldn’t afford. Objectively, you may have made a bad decision,
but not all decisions are made on a purely objective basis. Psychological and social
influences come into play. Let’s take a closer look at each of these factors.
Psychological Influences
Under this category, we can identify at least five variables:
1. Motivation. The internal process that causes you to seek certain goals.
2. Perception. The way you select, organize, and interpret information.
3. Learning. Knowledge gained through experience and study.
4. Attitudes. Your predisposition to respond in particular ways because of learned values and beliefs.
5. Personality. The collection of attributes that characterize an individual.
Social Influences
Here, we find four factors:
1. Family.
2. Reference groups. Friends or other people with whom you identify.
3. Economic or social status.
4. Culture. Your set of accepted values.
It shouldn’t be surprising that marketers are keenly interested in the effect of all these
influences on your buying decisions. For instance, suppose the travel agency that sold
you your spring-break getaway found that you bought the package because you viewed it
as a reward for studying hard and doing well academically. In that case, it might
promote student summer-travel programs as rewards for a hard year’s work at school.
KEY TAKEAWAYS
• A number of forces over which it has little or no control affect a company’s marketing activities.
• Taken together, they make up its external marketing environment, which includes regulatory and political
activity, economic conditions, competitive forces, changes in technology, and social and cultural
influences.
• Successful marketing often hinges on understanding consumer behavior—the decision process that
individuals go through when purchasing or using products.
• Several psychological and social variables influence buyers’ decisions. They go through a series of steps in
reaching the decision to buy a product: need recognition, information search, evaluation, purchase,
and postpurchase evaluation.
Post Lesson Exercise
1. Shifts in the external marketing environment often necessitate changes in a company’s marketing
plans. All companies are affected by external factors, but certain factors can have a stronger
influence on particular products. Which of these five types of external factors—political/regulatory,
economic, competitive, technological, social/cultural—would have the greatest impact on each of the
following products: a Toll Brothers home, P&G Tide laundry detergent, Apple iPod, Pfizer vaccine
medicine, and Gap jeans. In matching products with external factors, apply each factor only once. Be
sure to explain exactly how a given factor might affect product sales.
2. Experts have ascribed a number of attributes to Generation Y—people born between 1976 and
2001. On a scale of 1 to 10 (with 10 being the highest), indicate the extent to which each of the
following attributes applies to you:

Attribute To No Extent To a Great Extent
You’re committed to integrity and honesty 1 2 3 4 5 6 7 8 9 10
You’re family oriented and close to your parents 1 2 3 4 5 6 7 8 9 10
You’re accepting of differences among people 1 2 3 4 5 6 7 8 9 10
You’re upbeat and optimistic about the future 1 2 3 4 5 6 7 8 9 10
You’re education focused 1 2 3 4 5 6 7 8 9 10
You’re independent 1 2 3 4 5 6 7 8 9 10
You’re goal oriented 1 2 3 4 5 6 7 8 9 10
You’re fairly good at coping 1 2 3 4 5 6 7 8 9 10
Module 2
Lesson 2
The role of Business in Economy and the Different Phases of Economic

Development
Lesson Objective
• Explain the role of business in relation to the economy
• Discuss the different phases of economic development
Lesson Proper
The role of business in social and economic development cannot be

overstated. Business plays a vital role in the economic development
and wealth of a country. Success in business translates to the
economic well-being of a company and its residents through job
creation and offering improved quality of life for the country’s
citizens. Here, we delve into several aspects that relate to the
importance of business in today’s economic environment and
society.
Economic Development and Business

Small and large businesses drive economic stability and growth by providing valuable
services, products and tax dollars that directly contribute to the health of the
community. They also provide jobs, strengthening the economic health of each
community where a business is based. Even if a business is headquartered
elsewhere, employing people at each local business contributes to the success of that
region, as with the wages they earn, people buy property, work, shop and otherwise
invest in where they live.
Taxes are used, among other things, to maintain the infrastructure of a city, state or
country – roads, bridges, tunnels, public transportation, libraries and other public
buildings and services, including police officers and firefighters, all benefit from tax
money collected from individuals and businesses. These services are essential to the
good health and positive qualities of local and national citizens. In a capitalist society
like that of the United States, business growth and increased sales means collecting
more taxes, which can directly translate to better maintenance and offerings of local
infrastructure and services that benefit the community.
World Economy and Business

The success of business as a whole directly affects the world’s economy. At its core,
businesses are designed to serve a particular need that people have, and to provide
trusted goods and services related to that need. When consumer confidence or trust
dips in business, it isn’t just sales that are negatively affected. This mistrust has a
ripple effect and can result in a decline in a country’s general economy, weakening the
strength of its currency and buying power.
As businesses focus more and more on providing value to shareholders instead of

directly to consumers, their interests and tactics may not align with the best interests
of the consumer. A “profit at any cost” model can have extremely negative implications
down the road if corners are cut and poor decisions are made in the name of solely
working to increase shareholder profit or are based purely on greed. No matter how
efficiently you make a product or how special the service is that you deliver, if you lose
consumer confidence as a result of your business decisions, consumers won’t support
you by purchasing your goods and services, and then nobody benefits.
Why Business Matters

Business is directly related to the economic health and well-being of the citizens of the
city, region, state or country in which those businesses are active. Profitable
businesses drive economic health, which translates to a better quality of life for the
citizens.
The economic health of a region and its ability to sustain businesses – particularly
small businesses – can offer tremendous opportunities for diversity in business
ownership that might not otherwise exist. Communities and states that foster new
business development and assist with business creation derive benefits for their
citizens and residents through the products and services businesses provide, and
allow for opportunities for women and/or minorities to start and run businesses.
Almost 99 percent of women-owned businesses are considered small businesses,

according to the Small Business Administration. When you consider that women are
half the population and close to 50 percent of workers, this shows how important small
businesses can be for women and those who work in women-owned businesses.
Further, almost 60 percent of businesses owned by African-Americans are owned by
women.
The number of businesses is also important – the more, the better. Economic
diversification means less reliance upon one particular business or industry, and
allows the region to better withstand the normal ups and downs associated with the
cycle of doing business.
Business and Chambers of Commerce

A chamber of commerce is essentially a local networking organization designed to
foster business and professional memberships in the community. Being a business
that’s a member of a chamber of commerce lends an air of legitimacy to your business
and can offer growth opportunities through advertising and sponsorship opportunities
with the chamber. Membership fees can be steep for small businesses, but you have
to evaluate what the benefits might be that would make the fees worthwhile, such as
increased sales, networking opportunities and better name recognition for your
business.
Corporate Responsibility and Economic Health

As businesses and corporations grow, their role in corporate responsibility and social
development can become as important as that of their contributions to economic
health. It’s thought that a business shouldn’t just serve as an economic machine, but
also have stewardship in issues that affect society as a whole, such as environmental
concerns, human and worker rights, support of local and national charities, schools,
and a variety of non-profit organizations that offer benefits to the community and make
the quality of life higher for its members.
As a business grows and develops, these matters should be evaluated as the

company may eventually be viewed not just as a way to make money for employees,
owners and the community, but as an important part of the community or country,
whose profits in part serve the greater good through environmentally friendly business
practices or supporting groups that help strengthen communities like charities.
Role of Business in Development

Business is vital to a country’s economy. Success of businesses can drive the
success of an entire country, including through contributions to the gross domestic
product, or GDP, of a nation, which affects their world standing. If a country supports
businesses with goods and services that are in demand, everyone in the country
benefits. From job creation that results in money being put back into the community to
taxes that help the government smoothly run and provide maintenance and
improvements to the country’s infrastructure, or in other ways that are helpful for its
citizens, there are dozens of ways business success translates to economic
development.
In addition to providing products and services that citizens and residents want,
economic health can allow for exporting goods and services to others who want those
items, contribute to offering avenues for education and training for citizens, create
healthy business competition and provide additional methods of strengthening
economic development for the country as a whole.
The role of business in relation to the economy is a pivotal one. Small businesses
boost economic revenue on a smaller scale, but one that’s of vital importance, directly
and positively affecting the health, quality of life and purchasing power of residents in
the local community.
But small businesses don’t always stay small. Many nationally known brands today got
their start as very small businesses run out of someone’s home or garage. Startups
can become multinational companies that can have a huge and positive impact on the
global economy, benefiting all of the company’s employees and the communities in
which those businesses thrive. Apple, Whole Foods, Amazon and Starbucks were all
ideas started on a small scale that have had incredible, explosive positive impacts not
just on the U.S. economy, but on a global scale.
ROSTOWS FIVE STAGES OF ECONOMIC GROWTH MODEL
Walt Rostow took a historical approach in suggesting that developed countries have
tended to pass through 5 stages to reach their current degree of economic development.
These are:
1. Traditional society. This is an agricultural economy of mainly subsistence

farming, little of which is traded. The size of the capital stock is limited and of
low quality resulting in very low labour productivity and little surplus output left to
sell in domestic and overseas markets
2. Pre-conditions for take-off. Agriculture becomes more mechanised and more
output is traded. Savings and investment grow although they are still a small
percentage of national income (GDP). Some external funding is required - for
example in the form of overseas aid or perhaps remittance incomes from
migrant workers living overseas
3. Take-off. Manufacturing industry assumes greater importance, although the
number of industries remains small. Political and social institutions start to
develop - external finance may still be required. Savings and investment grow,
perhaps to 15% of GDP. Agriculture assumes lesser importance in relative terms
although the majority of people may remain employed in the farming sector.
There is often a dual economy apparent with rising productivity and wealth in
manufacturing and other industries contrasted with stubbornly low productivity
and real incomes in rural agriculture.
4. Drive to maturity. Industry becomes more diverse. Growth should spread to
different parts of the country as the state of technology improves - the economy
moves from being dependent on factor inputs for growth towards making better
use of innovation to bring about increases in real per capita incomes
5. Age of mass consumption. Output levels grow, enabling increased consumer
expenditure. There is a shift towards tertiary sector activity and the growth is
sustained by the expansion of a middle class of consumers.
These countries are ranked lowest in terms of the 2015 Human Development Index - many
of these low-income countries remain heavily dependent on primary commodities.
These countries in 2015 had the highest share of employment in the farming industry
Evaluation of Rostow's Five Stages of Economic Growth Model
• There is overlap with the Harrod-Domar model i.e. stages 2 and 3 require
increased saving and investment; Stage 4 requires improvements in technology,
which reduces the capital-output ratio.
• Stages 2 and 3 call for increased savings and investment but many households
may not have the funds to save; the banking channel between savers and firms
may be inadequate; the productivity of individual investment projects may
depend upon complementary investment in infrastructure.
• Some Sub Saharan African countries have received significant external
finance but have been slow to generate growth - many have remained stuck in
Stages 1 or 2.
• When the external finance has come in the shape of loans from developed
countries, interest charges have been incurred which have acted as a drag on
economic growth.
• Simon Kuznets threw doubts upon Rostow's theory. He argued that many
countries which have now reached developed status did so without seeing a
significant increase in their savings rate.
• The theory does not account for exceptions, e.g. falling output in the USSR under
a communist regime; the corrupt and failing government in Zimbabwe has
reversed development advances; increased globalisation means that a country's
growth rate does not lie solely in its own hands and international competition and
protectionism may prevent an economy from moving through the latter stages.
Traditional society
When a society has an economy which is subsistent in nature it is referred to as a traditional society. This
implies that the economy is faced with limited production functions that are heavily based on pre-Newtonian
science, technology and behavior. Since the economy is characterized by activities for subsistence, trade in the
output of production is insignificant or almost inexistent. The production process uses traditional technology and
resource allocation is governed by non-market mechanisms. As a consequence, the economy is predominantly
agriculture using labor intensive techniques due to low-level of capital.
Once technological and technical innovations are introduced, productivity level can significantly rise
causing the economy to undergo series of expansions. However, there are constraints in realizing this potential
growth mainly due to the disregard for the value of modern science and the unavailability of modern technology.
Pre-conditions for take-off

The pre-conditions for take-off is the second stage of economic growth which is referred to as the
transitional stage towards economic take-off. This is the period when a traditional society transits to a society that is
now capable of exploiting the practical use of modern science and relies on market mechanisms in resource
allocation.
Generally the preconditions for take-off include, but not limited to, favorable geography, natural resources,
trading opportunities, and changes in the socio-political structure. However, certain exogenous factor rather than
endogenous ones stimulate the transition stage for take-off. This exogenous factor comes in a form of an external
intrusion by more advanced societies. This produces a stimulus for the traditional society to improve. This
transitional stage implies that new production techniques in agriculture and industry are emerging while
accompanied by expansion in global trade.
During the transitional stage, the economy diversifies beyond agriculture and focuses on other sectors
including industry, communications, trade and services. Because of these changes within the economy, the
education system adapts to suit the needs of evolving and expanding economic activities. As a consequence, there is
an increase in specialization in production which in turn generates surpluses for trading.
Moreover, the emergence of institutions such as the banks and financial institutions play vital roles in
unlocking the preconditions for take-off by mobilizing capital. Hence, there are significant increases in the number
of investments specifically for transportation, communication and production of raw materials. Subsequently, the
improvement in transport infrastructure provides more support for trade.
As incomes, savings, investments and commerce expand during the transitional stage, more domestic as
well as international entrepreneurs active part in economic activities. This leads to the emergence of manufacturing
enterprises and the strengthening of external linkages.
Given the backdrop the rate of investment together with the per capita capital stock should substantially
increase during this period. However, it is necessary for the economy to have its investment rate rise up to the point
where the growth of output exceeds the growth of population. This can be attained once modern technologies and
innovations are incorporated in the operations and productions leading to higher productivity and efficiency. Aside
from these economic factors, changes in the social structure and political system play significant role in bringing the
economy towards take-off.
Take-off
Once a society fully surmounts the constraints brought about by traditional views, structures and processes,
it undergoes a series of steady growth known as the take-off. Normally, this occurs when there is a particular sharp
stimulus. The most common form of stimulus for take-off is technological growth and advancement. For some
countries, the stimulus came in a form of political revolution. However, Rostow suggested that the form is not the
vital key for take-off. Quoting Rostow:
“What is essential is the fact that the prior development of the society and its economy result in a positive,
sustained and self reinforcing response to it: the result is not a once-over change in production functions or in the
volume of investment, but a higher proportion of potential innovations accepted in a more or less regular flow, and
a higher rate of investment”
Take-off is generally described as a stage where growth becomes the normal condition of an economy (i.e.
sustained and steady growth rate). Specifically, take-off is achieved when three conditions are primarily met. First,
when the rate of productive investment rises to about 10% of the economy’s national income. This implies that the
economy must be highly suitable for investments (e.g. political stability, low-risk etc.) thus attracting numerous
investors. Second, presence of one or more highly productive manufacturing sectors that exhibit sustainably high
level of growth. Third, the existence, if not quick emergence, of political, social and institutional structures that
would enable the economy to continuously exhaust possible means of expansion. This condition also involves the
presence of a political leader or group that is highly prepared to regard the modernization of the economy as a
serious “high-order political business”.
It is during take-off phase that an influx and rapid expansion of industries occur that brings about higher
profits which are eventually reinvested in new plants. This becomes a beneficial cycle that generates employment
and higher output. Also, this series of expansion translates to an increase of income among some individuals who
save and place their savings in productive investments. This provides an incentive for the expansion of a 41 new
class of entrepreneurs resulting in substantial increase in the flows of investment in the private sector.
Normally, the economy concentrates its efforts on the manufacturing sector. Although this may be the case,
new techniques also introduced in agriculture as well as in other industries in industrial sector. As a consequence,
the agriculture sector becomes more commercialized as farmers are keen in accepting new methods and innovations
that significantly improves productivity. These radical changes in the agricultural sector are deemed as essentials for
enabling a successful take-off.
In viewing economic take-off, it is also necessary to analyze the inner structure of the economy. Rostow
stated “We must also consider how rapidly growing manufacturing sectors emerged and imparted their primary and
secondary growth impulses to the economy”. The inner structure of take-off may be observed by observing and
analyzing the (1) supply of loanable funds; (2) source of entrepreneurship; and (3) leading sectors.
Supply of loanable funds is clearly the monetary and primary source to finance investments as well as for
the take-off to proceed. Loanable funds are sourced from income shifts (from those individuals who spend
unproductively to those who spend productively) that finance economic development. Hence, when citizens of a
country do not spend productively relative to the state itself, taxation measures are highly suggested to induce
development and eventual take-off. However, Rostow suggested, “It is the demand side of the investment process
rather than the supply of loanable funds, may be the decisive element in the take-off”. This implies that to induce
take-off there must be one or more rapidly growing sectors whose entrepreneurs “ploughed back into new capacity a
very high proportion of profits”. Whereas, improvements in the supply side (e.g. capital supply) often fall in the
preconditions of take-off.
One very significant element in the supply of loanable funds is capital imports. Historically, foreign direct
investments and capital have led to the take-off stage of various countries. This is because foreign capital can
finance investments for industrial purposes, and most especially investments in utilities, transport and housing of
enlarged urban populations. Most of these investments required huge capital and cannot be financed domestically.
Aside from the supply of loanable funds, sources of entrepreneurship have also been observed to contribute in the
take-off. Certain group/s in the society must emerge and engage in successful activities to stimulate advancement
and development in the economy. These groups must aspire not only for growth but for a balanced and sustainable
growth. However, Rostow suggested that take-offs are usually stimulated when a class of farmers become highly
responsive to the opportunities created by the modernization of technologies and innovations.
Based from the analysis of previous cases of take-offs, it has been observed that there would be a sector
that would lead the growth of the economy. According to Rostow, the leading sector plays a role in “accelerating the
development of domestic manufacture of consumption goods over a wide range in substitution for imports”. In order
to determine the leading sector of the economy, Rostow presented four criteria: (1) the product/s the sector produces
must accumulate significantly high effective demand resulting to an increasing rate of growth in output overtime; (2)
there must be an integration of new yet effective production functions in the sector leading to an expansion of
capacity; (3) a high rate of plough-back by the entrepreneurs handling the business/sector is necessary to stimulate
further expansion; and (4) the leading sector should be able to encourage series of expansion in capacity and
potentiality for new production functions in other sectors that would benefit the economy as a whole.
Drive to maturity
The drive to maturity is defined as the stage when the systematic and practical applications of modern
technology and innovations have been effectively applied to different dimensions of society including the economy
in its entirety. However, this is also the time when the pace of expansion may slow down as the economy possibly
experience diminishing returns. The economy in this stage undergoes an interval of sustained (if not fluctuating)
progress due to the extensive application of modern technology to a large portion of its economic activities.
Investment at this stage levels at 10 to 20% of the GNP, and thus growth of investment will most of the time
outweigh population growth. The occurring changes in the economy entails a rise of new industries and the decline
of older industries. Also, as the economy diversifies into new areas and production significantly improves; products
that were normally imported are now being domestically produced. This is because technological innovations are
providing a wider range of investment opportunities which translates to production of a wide range of goods and
services; hence, this ultimately lessens the reliance on imports.
Rostow, however, assumed three things happen during maturity. First, alterations in the labor force occur.
When take-off hasn’t taken off, the work force is heavily focused on agriculture, consisting of an estimate of 75%.
However, during the maturity stage, the percentage decreases to only 20% as workers becomes more professional
and skilled they seek employment in the industrial and services sector. Second, leadership considerably improves as
managers adapt to the improving operations and work environment. Third, “the society as a whole becomes a little
bored with the miracle of industrialization”. In view of all these, the fourth stage of growth occurs when an economy
moves beyond the original industries that powered its take-off and push the complex modernization in technology to
its limit by efficiently applying this to its widening range of resources. This is also the time when social
improvements occur such as improvements in leadership, ideologies, behaviour and others.
Age of high mass-consumption

The age of high mass-consumption is a stage where the attention of the society shifts from production
problems to consumption dilemma. Due to this immense change, society ceases to accept the further expansion and
the application of modern technology as an “overriding objective”. Hence, this leads to the gradual phasing out of
outdated machines and devices. Furthermore, along with the shift in attention is the shift towards durable
consumers’ goods and services. The economy adjusts its focus on the production of consumers’ durables and to the
diffusion of services on a mass basis. Another shift that occurs is allocation shift where society values more the
resources for social welfare and security.
As the society enters the post-maturity stage it sets three new objectives: (1) it pursues for external power
and influence, and as a result, it increases its allocation to military and foreign policy; (2) it envisions for a
substantial improvement in the social welfare which can be achieved by redistribute income through progressive
taxation; (3) it strives for achievement of maturity by expansion of consumption levels beyond basic food, shelter,
and clothing (e.g. into the vast range of mass consumption of durable consumers’ goods and services). It is within
the last stage of growth that the economy is geared towards mass consumption, and the consumer durable industries
start to boom. Also, the service sector becomes increasingly dominant. Hence, this is the stage when living
conditions are exceptionally good and the economy is based on the society and its welfare
POST LESSON ACTIVITY
Essay
Instructions:
Answer the following in no less than 5 sentences
I. Do you agree with the statement “Business that are dependent on a global supply
chain are more vulnerable to challenges brought by unplanned political, economic
weather disruptions”? Explain your answer
II. Why does a global economy pose more challenges to business mergers?
III. Identify some strategies that managers may pursue for expanding their business
to the global market
Module 2
Lesson 3
Nature and Benefits of Planning
Learning Objectives
• Discuss the nature and benefits of planning
• Compare and contrast the different types of plans
• Describe planning at different levels in the firm and
• Prepare a budget plan
Lesson Proper
What is Planning and its Nature, Importance, and

Types
Planning is the first of essential managerial functions. Planning is important as
by nature it enquirers about organizational goals and involves decision
making about desired ways and means to achieve goals.
Planning is the process by which managers establish goals and define the
methods by which these goals are to be attained. Planning involves selecting
missions and objectives and the actions to achieve them; it requires decision
making, which is choosing from among alternative future courses of action.
It is, therefore, a rational approach to achieving pre-selected objectives.
Planning is thus taken as the foundation for future activities. Newman has thus
defined it as, “Planning is deciding in advance what is to be done; that is a
plan is a projected course of action.”
So, planning can be thought of as deciding on a future course of action. It may
also be treated as a process of thinking before doing it.
Management has to plan for long-range and short-range future direction by

looking ahead into the future, by estimating and evaluating the future
behavior of the relevant environment and by determining the enterprise’s own
desired role.
Planning involves determining various types and volumes of physical and

other resources to be acquired from outside, to allocate these resources in an
efficient manner among competing claims and to make arrangements for the
systematic conversion of these resources into useful outputs.
As it is clear from the above discussion, plans have two basic components:
goals and action statements.
Goals represent an end state — the targets and results that managers hope
to achieve.
Action statements represent the means by which an organization goes ahead

to attain its goals. Planning is a deliberate and conscious act by means of
which managers determine a course of action for pursuing a specific goal.
Planning to a manager means thinking about what is to be done, who is going

to do it, and how and when he will do it. It also involves thinking about past
events (retrospectively) and about future opportunities and impending threats
(prospectively).
Planning enquirers about organizational strengths and weaknesses and

involves decision making about desired ways and means to achieve them.
There are, however, differences between decision making and planning.

Decisions can be made without planning but planning cannot be done without
making decisions.
Nature of Planning
The nature of planning can be understood by examining its four major
aspects. They are;
1. It is a contribution to objectives,
2. It is primacy among the manager’s tasks.
3. It is pervasiveness, and
4. The efficiency of resulting plans.
The contribution of Planning to the Attainment of

Objectives
Since plans are made to attain goals or objectives, every plan and all its
support should contribute to the achievement of the organization’s purpose
and objectives.
An organized enterprise exists to accomplish group objectives through willing

and purposeful co-operation.
Primacy of Planning
That planning is the prime managerial function is proved by the fact that all
other functions such as organizing, staffing, leading and controlling are
designed to support the accomplishment of the enterprise’s objectives.
Planning quite logically, therefore, comes first before executing all other
managerial functions as it involves establishing the objectives necessary for
all group efforts. Also, all the other managerial functions must be planned if
they are to be effective.
Likewise, planning and controlling are inextricably bound up. Control without
a plan is meaningless because the plan provides the basis or standard of
control.
Pervasiveness of Planning
Planning is a unique and universal function of all managers.
The character and scope of planning may vary with each manager’s authority
and with the nature of the policies and plans outlined by superiors, but all
managers must have some function of planning.
Because of one’s authority or position in the managerial hierarchy, one may

do more or less planning, but some kind or amount of planning a manager
must do.
According to Weihrich and Koontz; “All managers, from presidents to first-

level supervisors – plan.”
The Efficiency of Plans

Plans should not only be effective, but also efficient. The effectiveness of a
plan relates to the extent to which it accomplishes the objectives.
The efficiency of the plan, however, means its contribution to the purpose and
objectives, offset by the costs and other factors required to formulate and
operate it.
Plans are efficient if they achieve their objective at a reasonable cost when
such a cost is the measure not only in terms of time, money or production but
also in terms of satisfaction of the individual or group.
Both conceptual and practical reasons are put forward in support of planning.
Two conceptual reasons supporting systematic planning by managers are
limited resources and an uncertain environment.
Meeting the Challenge of Resource Scarcity

Resource scarcity is a very important consideration for any organization today.
There would be no need for planning if material, financial and human
resources were unlimited and cheap.
Planners in both private business and public agencies are challenged to

stretch their limited resources through intelligent planning.
Otherwise, wasteful inefficiencies would give rise to higher prices, severe
shortages, and great public dissatisfaction.
Facing Environmental Uncertainty

The second most important conceptual reason is that organizations
continually face environmental uncertainty in the course of accomplishing the
tasks.
Organizations meet this challenge largely through planning safeguards.
Some organizations do this job better than others partly because of their
different patterns of response to environmental factors beyond the
organization’s immediate control.
Besides, managers have several practical reasons for formulating plans for
themselves, their employees, and various organizational units, viz.,
1. to offset uncertainty and change;

2. to focus organizational activity on a set of consciously created objectives;
3. to provide a coordinated, systematic roadmap for future activities;
4. to increase, economic efficiency via efficient operation; and
5. to facilitate control by establishing a standard for subsequent activities.
Planning and Performance

Although organizations that use formal planning do not always outperform
those that do not plan, most studies show positive relationships between
planning and performance.
Effective planning and implementation play a greater part in high performance

than does the amount of planning done.
Studies have shown that when formal planning has not led to higher
performance, the external environment is often the reason.
The Role of Goals and Plans in Planning
Planning is often called the primary management function because it
establishes the basis for all other functions.
Planning involves two important elements: goals and plans. Goals (often called
objectives) are desired outcomes for individuals, groups, or entire
organizations.
4 Types of Plan
There are main 4 types of plan;
1. Hierarchical Plans:
These plans are drawn at three major hierarchical levels, namely, the
institutional, the managerial and the technical core. The plans for these three
levels are;
o Strategic plan.
o Administrative or Intermediate plan.
o Operational plans can also be categorized according to frequency or
repetitiveness of use. They are broadly classified as;
2. Standing Plans:
Standing plans are drawn to cover issues that managers face repeatedly. Such
a standing plan may be called a standard operating procedure (SOP).
Generally, five types of standing plans are used;
o Mission or purpose
o Strategy
o Policies
o Rules
o Procedures
3. Single-use Plans:
Single-use plans are prepared for single or unique situations or problems and
are normally discarded or replaced after one use. Generally, four types of
single-use plans are used. These are;
o Objectives or Goals
o Programs
o Projects
o Budgets
4. Contingency Plans:
Contingency plans are made to deal with situations that might crop up if these
assumptions turn out to be wrong. Thus contingency planning is the
development of alternative courses of action to be taken if events disrupt a
planned course of action.
Recognizing the Advantages of Planning
The military saying, “If you fail to plan, you plan to fail,” is very true. Without a plan, managers are set up to
encounter errors, waste, and delays. A plan, on the other hand, helps a manager organize resources and activities
efficiently and effectively to achieve goals.
The advantages of planning are numerous. Planning fulfills the following objectives:
• Gives an organization a sense of direction. Without plans and goals, organizations merely
react to daily occurrences without considering what will happen in the long run. For example, the
solution that makes sense in the short term doesn't always make sense in the long term. Plans
avoid this drift situation and ensure that short‐range efforts will support and harmonize with future
goals.
• Focuses attention on objectives and results. Plans keep the people who carry them out
focused on the anticipated results. In addition, keeping sight of the goal also motivates
employees.
• Establishes a basis for teamwork. Diverse groups cannot effectively cooperate in joint projects
without an integrated plan. Examples are numerous: Plumbers, carpenters, and electricians
cannot build a house without blueprints. In addition, military activities require the coordination of
Army, Navy, and Air Force units.
• Helps anticipate problems and cope with change. When management plans, it can help
forecast future problems and make any necessary changes up front to avoid them. Of course,
surprises — such as the 1973 quadrupling of oil prices — can always catch an organization short,
but many changes are easier to forecast. Planning for these potential problems helps to minimize
mistakes and reduce the “surprises” that inevitably occur.
• Provides guidelines for decision making. Decisions are future‐oriented. If management
doesn't have any plans for the future, they will have few guidelines for making current decisions.
If a company knows that it wants to introduce a new product three years in the future, its
management must be mindful of the decisions they make now. Plans help both managers and
employees keep their eyes on the big picture.
• Serves as a prerequisite to employing all other management functions. Planning is primary,
because without knowing what an organization wants to accomplish, management can't
intelligently undertake any of the other basic managerial activities: organizing, staffing, leading,
and/or controlling.
POST LESSON ACTIVITY
Good job! Keep on reading the rest of the module to learn more.
God Bless!
REFERENCES:
• The Marketing Environment (Books Lardbucket 2012)
• The Roles of Business Organizations by Daniel Smyth 2019
• Stages of Economic Development by Dr. Gunter
• Planning for the Many Benefits of Nature Based Recreation by Taylor V. Stein

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ORGANIZATION AND

CARL JOSEPH C. FUERZAS

CARL JOSEPH C. FUERZAS

THE FIRM AND ITS

answer the Pretest below.

Name: Course & Year: _

Test I. Encircle the letter that corresponds to your answer.

A) It helps decision making

B) Management theories are interpretive and evolve with organizational changes

D) All of the above

A) The human relations approach

B) The contingency theory

C) The systems approach

D) The classical approach

A) Individual and bureaucracy

4. What is the major criticism of the attempt to define generalized models of

A. The structure of management is dependent on situational variables

The Firm and Its Environment

The Marketing Environment

1. Political and regulatory

5. Social and cultural

The Political and Regulatory Environment

The Economic Environment

The Competitive Environment

The Technological Environment

The Social and Cultural Environment

The Buying Process

Figure 9.16 The Buying Process

full time. Maybe your parents insisted.

of the football team or the male-to-female ratio.

Understanding the buying process of potential students is crucial to college

Influences on Buying Behavior

Under this category, we can identify at least five variables:

2. Perception. The way you select, organize, and interpret information.

3. Learning. Knowledge gained through experience and study.

5. Personality. The collection of attributes that characterize an individual.

Here, we find four factors:

2. Reference groups. Friends or other people with whom you identify.

3. Economic or social status.

4. Culture. Your set of accepted values.

individuals go through when purchasing or using products.

and postpurchase evaluation.

influence on particular products. Which of these five types of external factors—political/regulatory,

following attributes applies to you:

The role of Business in Economy and the Different Phases of Economic

The role of business in social and economic development cannot be

Economic Development and Business

World Economy and Business

As businesses focus more and more on providing value to shareholders instead of

Why Business Matters

Almost 99 percent of women-owned businesses are considered small businesses,

Business and Chambers of Commerce

Corporate Responsibility and Economic Health

As a business grows and develops, these matters should be evaluated as the

Role of Business in Development

ROSTOWS FIVE STAGES OF ECONOMIC GROWTH MODEL

1. Traditional society. This is an agricultural economy of mainly subsistence

Pre-conditions for take-off

Age of high mass-consumption

Nature and Benefits of Planning

What is Planning and its Nature, Importance, and

It is, therefore, a rational approach to achieving pre-selected objectives.

Management has to plan for long-range and short-range future direction by