BMG100 Course 2 and 3
Introduction
Quote by Andy Warhol: "Making money is art. And working is art. And good business is the best art."
Course Overview
Course Name: BMG100 Understanding Business and Society
Instructor: Vincent Cloutier, MBA
Institution: The Williams School of Business
Term: Winter 2025
Important Deadlines
Team Registration: Join a team by Jan 22nd.
Praxar Kayak+ Sim Registration: Tutorials and practice zone completion by Jan 22nd.
Team Contract: Due by Jan 29th.
Quizzes: Refer to Moodle for additional deadlines.
Economic Dynamics
Course Type
Course includes details on Dynamics of Economics and Business.
Learning Objectives
Define key business concepts: business, product, and profit.
Identify main business participants and activities; understand the importance of studying business.
Define economics and compare four economic systems.
Describe roles of supply, demand, and competition in a free-enterprise system.
Measure economic health and trace Canadian economy evolution.
Discuss roles of entrepreneurs in the economy.
The Economic Environment
Economic Foundations of Business
Economics: Deals with resource distribution for production of goods and services.
Resources: Assets utilized in production include land, labor, capital, and entrepreneurship.
Canada’s Resources
Natural Resources
Canada has vast natural resources:
Land, forests, minerals, and water.
Notable resources include fresh water, a variety of minerals, and fossil fuels.
Labor Resources
Defined as the physical and mental capabilities used for production.
Current challenges include labor shortages as baby boomers retire.
Capital Resources
Funds used for acquiring natural and human resources necessary for production.
Canadian companies have relatively easy access to capital.
Factors of Production
Entrepreneurship: Key driving force in economic initiatives and innovation.
Labor: Vital for the operation of production.
Capital: Investments required for production.
Land: The natural resources used for economic activities.
Economic Systems Overview
Impact of Economic Systems
Economic systems shape wealth creation and distribution, influencing business opportunities, consumer choices, and price levels.
Fundamental Economic Questions
What goods/services satisfy consumer needs?
How will goods/services be produced?
For whom will goods/services be produced?
Who owns and controls major production factors?
Types of Economic Systems
Capitalist: Individual ownership of businesses.
Socialist: Key industries owned by the government.
Mixed: Combination of private ownership with government involvement.
Communist: Government owns all economic resources.
Centrally Planned: Government makes all economic decisions.
Nature of Competition
Definition of Competition
Rivalry among businesses for consumer dollars which affects market choices and pricing.
Types of Market Competition
Pure/Perfect Competition: Many suppliers, no single one can affect prices.
Monopolistic Competition: Many sellers compete by differentiating their products.
Oligopoly: Few large sellers dominate the market requiring high investment.
Monopoly: Single company controls the market with no direct competition.
Supply & Demand Dynamics
Demand
Willingness of consumers to purchase goods/services at given prices.
Supply
Willingness of producers to offer goods/services at different price levels.
Equilibrium Price
The price where supply meets demand, determining market prices.
Economic Cycles
Concept of Economic Cycles
Economies undergo fluctuations characterized by expansion and contraction phases.
Economic Expansion
Increased consumer spending and rising GDP.
Economic Contraction
Recession with decreased GDP, employment, and spending.
Key Economic Indicators
GDP: Total dollar value of goods/services produced annually.
Inflation: Increase in general price levels over time.
Consumer Price Index: Measures average change over time in prices paid by urban consumers.
Unemployment Rate: Percentage of working-age population that is jobless but seeking work.
A Brief History of the Canadian Economy
Early Economy
Relying on natural resources with farming, fishing, shipping, and fur trade.
Industrial Revolution
Transition to factory production increasing efficiency and availability of goods.
Modern Economic Shifts
Movement towards service-oriented and digital economies with substantial changes in family dynamics and employment patterns.
The Role of Government in the Economy
Mixed Economy: Interaction of public regulation and private enterprise.
Government influences include laws, regulations, and health measurements of the economy.
Entrepreneurship
Definition
Individuals who innovate and undertake the risk of developing products/services for profit.
Successful Canadian Entrepreneurs
Examples include KC Irving, Joseph-Armand Bombardier, and Guy Laliberté.
Course Conclusion
Learning in Business
Effective business skills encompass knowledge, experience, and good judgment, all of which will be enhanced through this course.