the context of business

7/29/2019 The Context of Business

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ADMS 1000: Introduction to Admin Studies

Instructor: Eytan Lasry

206 Atkinson

416-736-2100 ext. 22878

[email protected]

Office hours: Tuesday 3-5pm or by appointment
mailto:[email protected]:[email protected]


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LECTURE 1THE CONTEXT OF BUSINESS

What are the external factors that allorganizations must face in their struggle tosurvive and prosper?

Chapter 1 Karakowsky

Case: Sam the Record Man


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ORGANIZATIONS

What is an organization?

Why do we care about organizations?

An open-system, a living organismcontinually interacting and exchanging

resources with its external environment


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INTERNAL & EXTERNAL CONTEXTS


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SPECIFIC or TASK ENVIRONMENT -STAKEHOLDERS

PeopleStructureStrategy

Parties/Groups that havea direct link or influenceon the organization e.g.:

CustomersShareholdersSuppliersCompetitorsLocal CommunitiesUnionsMedia


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economic

global

technological

competitive

political

societal

Organization

labour

GENERAL ENVIRONMENT


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THE ECONOMIC CONTEXT (Chap. 2)

Business cycles: recession, expansion

Balance of trade

National debt

Inflation

Unemployment

Exchange rates, interest rates, monetary andfiscal policies


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THE SOCIETAL CONTEXT (Chap. 8)

What is businessrole in society?

Societal norms, behaviors, values

and ethical beliefs

Managing Stakeholders

Corporate Social Responsibility (CSR)


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THE COMPETITIVE CONTEXT (Chap. 3)

How does competition within industriesevolve over time (the lifecycle model)?

What drives industry evolution alongcertain paths?

What are the key success factors forfirms at different stages of the lifecycle?


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THE TECHNOLOGICAL CONTEXT (Chap. 4)

What are the different types of technologicalinnovations?

How does technology evolve over time along a

lifecycle and how does it affect organizationsand industries?

Can we predict the path of technological

evolution?


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THE LABOUR CONTEXT (Chap. 5)

The changing nature of the workforce

Diversity in the workplace

Employment Equity

How unions have affected business and

society


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THE GLOBAL CONTEXT (Chap. 6)

International events e.g. SARS, Hurricanes,Tsunamis, terrorist acts, political events

Multinational Corporations

Trade blocs and agreements: NAFTA, EU

Trade protectionism, foreign takeovers


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Laws, trade agreements, taxes, regulation, crowncorporations, business incentives and subsidies,tariffs, quotas

Recent trends of deregulation and privatization

In Canada (and elsewhere) there is a general trendtowards less government intervention in theeconomy

THE POLITICAL CONTEXT (Chap. 7)


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STRATEGIC MANAGEMENT (Chap. 9)

The nature of competitiveadvantage

External [Industry] analysis Internal [Core Competency]

analysis

Business and Corporate

Strategies


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THE CANADIAN CONTEXT

Natural Resources

13% of GDP but 50% of exports

Trade with the US

25% of GDP but 85% of exports Diverse workforce, egalitarian,

risk-averse business culture

In the US, you can tell people to do something. InCanada, you have to ask themand hope they will doit!

- Ed Clark, CEO of TD Bank


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THE CANADIAN CONTEXT

What are the key features of the Canadian BusinessEnvironment?

Foreign Subsidiaries Excessive Government Regulation

and Intervention

Trade Protectionism

Where are the Global Canadian Brands?http://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspx
http://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspxhttp://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspxhttp://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspxhttp://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspxhttp://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspxhttp://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspxhttp://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspxhttp://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspxhttp://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspxhttp://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspxhttp://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspxhttp://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspxhttp://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspxhttp://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspxhttp://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspxhttp://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspxhttp://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspxhttp://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspxhttp://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspx


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KEY LEARNING POINTS

Identify the external factors of the generalenvironment and their influence on businessorganizations

Characteristics of the Canadian business context


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NEXT SESSION

The Economic Context

Karakowsky, Chapter 2

Read case for discussion:

Sam the Record Man (downloadfrom Website)

the context of business

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