Upload
xxdantasticxx
View
217
Download
0
Embed Size (px)
Citation preview
8/13/2019 Lecture #1 - Introduction to ADMS 1000
1/16
Introduction toAdministrative StudiesADMS1000
Petrenko Anton, PhDOffice Hours: By appointment
E-Mail: [email protected]
8/13/2019 Lecture #1 - Introduction to ADMS 1000
2/16
Language and Meaning
What is an organization?
8/13/2019 Lecture #1 - Introduction to ADMS 1000
3/16
Defining Organization
So, what are some ofthe things organizations
have in common?
Organizations are social entitiesthey are made up of
people, and they involve human interaction.
Organizations are created to achieve goals (whether
profit or non-profit); they are goal-directed.
Organizations interact with the environmentorganization
obtains inputs (e.g. sources, labour, materials) from the
environment and transforms then into outputs (e.g. goods,
services).
8/13/2019 Lecture #1 - Introduction to ADMS 1000
4/16
Language and Meaning
What difference does a
perspective do?
How do we conceptualize
the object when we
interpret its boundaries?
http://www.google.ca/url?sa=i&source=images&cd=&cad=rja&docid=FbG4LZcXl_mscM&tbnid=aYPZ0gAl38ZusM:&ved=&url=http%3A%2F%2Fwww.mpocares.com%2Fnews-events%2Fmpo-visual-illusion%2Fdocument-2%2F&ei=o_UtUvzlJoHGqQHnt4EQ&psig=AFQjCNFg8VGgYg3b5-g6PD73eVETWh1gQw&ust=1378830115719573http://www.google.ca/url?sa=i&source=images&cd=&cad=rja&docid=FbG4LZcXl_mscM&tbnid=aYPZ0gAl38ZusM:&ved=&url=http%3A%2F%2Fwww.mpocares.com%2Fnews-events%2Fmpo-visual-illusion%2Fdocument-2%2F&ei=o_UtUvzlJoHGqQHnt4EQ&psig=AFQjCNFg8VGgYg3b5-g6PD73eVETWh1gQw&ust=1378830115719573http://www.google.ca/url?sa=i&source=images&cd=&cad=rja&docid=FbG4LZcXl_mscM&tbnid=aYPZ0gAl38ZusM:&ved=&url=http%3A%2F%2Fwww.mpocares.com%2Fnews-events%2Fmpo-visual-illusion%2Fdocument-2%2F&ei=o_UtUvzlJoHGqQHnt4EQ&psig=AFQjCNFg8VGgYg3b5-g6PD73eVETWh1gQw&ust=13788301157195738/13/2019 Lecture #1 - Introduction to ADMS 1000
5/16
Viewing Organization as an Open System
Applying metaphors is a useful way of gaining insight into a concept. Viewing theconcept of organization through a metaphor can guide our thinking conceptualizing of
the nature of organization and its function.Organization used to be viewed asclosed systems. This approach focuseson the internal aspect of the organizationand sees it as independent and self-sufficient entity.
Viewing organization asan open system focuses
our attention on its relation
to and interaction with itsenvironment.
Organizations environment containsboth challenges and opportunities forthe organization.
8/13/2019 Lecture #1 - Introduction to ADMS 1000
6/16
Language and Meaning
What are the critical
environmental factors
affecting the success ofthe business?
8/13/2019 Lecture #1 - Introduction to ADMS 1000
7/16
External Context of Business:Specific and General Environment
ORGANIZATION
Unions
Distributors
Creditors
Local Public
Competitors
Employees
Suppliers
Customers Government
PoliticalForces EconomicForces
GlobalForces
TechnologicalForces
CompetitiveForces
LabourForces
SocietalForces
Organization is surrounded by specific or task
environment that contains stakeholders (groups or
parties) who have directinfluence on the ability of
the organization to obtain resources and produce
outputs.
Surrounding the specific environment is the sphere
of general environment, which is made up of forces
that shape the specific environment. Thus, it also
affects the ability of organizations to obtain
recourses and produce outputs.
8/13/2019 Lecture #1 - Introduction to ADMS 1000
8/16
1. Economic Forces
How do economicforces affect
business?
Whether the economy is strongor weakcan dramatically affect the operations and
the strategy of business, forcing it to adopt to changing conditions. The changing
economic environment can affect competition, consumer behavior, availability of
financial and labour resources, employee-employer relationship, etc
So, what are someof the indicators ofeconomic health?
earned from producing goods and services goes
to business, employees, and the government (in
taxes).
1979-1989: Canadas GDP grew 3.2% annually
2001-2009: Compound annual growth was 1.6%
Expected compound annual growth is 2.5% until 2025.
GDPor Gross Domestic
Productis one of the main
indicators of the health of
the economy. It is the totalvalue of countrys output in
goods and services in a
given year. The money
Severe recession in 2008-2009
8/13/2019 Lecture #1 - Introduction to ADMS 1000
9/16
2. Competitive Forces
How docompetitive forcesaffect business?
Level of competition can have a dramatic effect on the cost of doing business,
revenues, business strategy, and the overall economy. Without competition, the
provider of goods has very little incentive to innovate or improve the product or sell
it at a fair price. Competition provides such incentives.
Pure competition: a
(perfect) competition where
many small firms produce
an identical product (no
one has control over price)
Monopolistic competition: a large number of small firms
producing slightly different products (some influence on price).
Oligopoly: a small number of producers with different products (significant
control over price) . Monopoly: one producer of product (controls price).
When industry is relatively concentrated, the producers can dictate
market price. Some criticize Canada for not having as strict legislation
against industry concentration as present in US. In Canada, 25 large
firms are responsible for 25% of total profits and 41% of all assets.
8/13/2019 Lecture #1 - Introduction to ADMS 1000
10/16
3. Technological Forces
How dotechnologicalforces affect
business?
Technological development not only can affect the business's productivity, efficiency,
and ultimately its bottom-line, it can dramatically reshape the whole industry and
ultimately the economy in general.
Canada traditionally has been a
resource oriented economy
(forestry, mining, fisheries,
energy, minerals, and
agriculture). However, it hadbeen changing.
If at the start of the 20th century there was a balance between employment
in primary sectors (resource) and provision of goods and services, over the
course of the century employment shifted towards manufacturing (1945-1960) and then to services (42% in 1950; 72% in 1993) .
Technology is largely responsible for the shift (improved productivity).
Mechanization in agriculture (reaper), and then in manufacturing allowed
to produce the same output with less people. So, more people are
available for service sectors where they are hard to replace.
8/13/2019 Lecture #1 - Introduction to ADMS 1000
11/16
4. Labour Forces
What is the effectof labour forces on
business?
Demographics comprise characteristics of a population, such as age, sex, income,
employment, health, etc Since labour forces are essential to business activities
and planning, demographic trends have a significant effect on business operations.
Examples:
Veterans returning from WWII, assisted with
government grants, married and bought houses, which
led to a 20 year industry boom in housing, baby
clothing, etc
Recent trend is the aging of the population (in 1921: median age
24; in 1993: over 33; in 2036 could be 50). Youth population is
decreasing due to low birth rate (in 2011, 20% is 6-19). Business
will likely cater to older population: health care, recreation, travel
projected to benefit.Another trend is the increasing proportion of
women in the labour forces and the increasing
racial, and cultural diversity of the workforce.
Business practices, from employment to training
will have to adjust to the trends.
8/13/2019 Lecture #1 - Introduction to ADMS 1000
12/16
5. Global Forces
How do globalforces affectbusiness?
Global factors (trade agreements, competition, geographic proximity, etc) have
tremendous effect on Canadas business activity. One of the major such influencing
factors is Canadas proximity to US.
International Trade.
Canada exports 40% of is GDP
(compared to 25% 10 years ago).
The questions is whether
Canada exports more than it
imports (trade deficit).
US gets 85% of Canadas export, but Canada runs trade
deficit with most other trading partners (except UK). In
2010 the trade balance: US (36, 719.3 mil); Japan (-
350.6 mil); UK (7,425.2 mil); EU (-11,312.5); OECD
(11,104.6 mil); rest (-30,375.4)
The level of foreign ownership is relatively high in Canada. We want to
attract business investment, but a lot of investment ends up being branch
plants rather than full manufacturing (sales offices). Over 20 years,
11,380 companies were taken over worth 548.494 billion but resulting in
only 18.040 billion new investment. Now 30% of economy is foreignowned.
8/13/2019 Lecture #1 - Introduction to ADMS 1000
13/16
6. Political Forces
What is the effectof political forces
on business?
Canadian economy is a mixed systema capitalist system with government playing
some important role. Historically, the government used tariffs on imports to protect
domestic producers.
Some argue that a large portion of Canadas
industrial development is due to tariffs imposed in
1879 by Sir john Macdonalds National Policy.
The government can exercise some control over the
business decisions by offering incentive programsor financial support, favouring its desired choice.
But to what extent
should the governmentinterfere with the
Canadian business inthis way?
There is a controversy over
Canadian subsidies to the
aerospace giant Bombardier, which
is competing with the BrazilianEmbraer SA on the global stage.
8/13/2019 Lecture #1 - Introduction to ADMS 1000
14/16
7. Societal Forces
How can societalforces affect
business?
Canada has a high reputation as one of the best (or best) countries in the world where
to conduct business, but it also faces challenges that can undermine this reputation
and affect business operations. Society has certain expectations of responsible
behaviour; falling short of these expectations can have serious impact on business.
Examples:
Bear Creek Mining Corp.
wanted to open a silver mine
in Peru, which led to violentprotests from local residents
concerned with pollution of
waterfive people died and
dozens were injured.
In 2011, Calgary-based Niko Resource Ltd. was found guilty of bribingofficials in Bangladesh (22 other companies are investigated).
Montreal engineering company SNC Lavalin Group Inc. was recently
exposed in the media as participating in building prisons in Libya for the
regime of Moammar Gadhafi.
8/13/2019 Lecture #1 - Introduction to ADMS 1000
15/16
This course offers an examination of the external context of business and the
challenges of managing in the Canadian business environment. Our exploration of
the external context of business includes consideration of such key areas as
economic, competitive, labour, technological, societal, global, and political issues.
The broad aim is to provide insight into current challenges and opportunities that
play a dramatic role in the business landscape and affect business strategy.
Course Objectives
1. To identify the key factors which comprise the external environment ofbusiness.
2. To understand the potential impact of these external factors on business.
3. To obtain an understanding of the challenges & opportunities present in the
Canadian business context.
4. To encourage critical thinking regarding the external challenges that must be
addressed as part of successful business strategy.
8/13/2019 Lecture #1 - Introduction to ADMS 1000
16/16
Course Requirements
Mid-Term (40%) closed book
Final Exam (60%) closed book
Total: 100%