Session 1: Exploring The Canadian Bussiness Environment: A
Framework
Session 1B: Exploring Canadian Business: A FrameworkWhat are the
major challenges facing Business?
Reading:Karakowsky & Guriel (2015) Chapter 1
1The Internal Context of BusinessInside the organization:The
Employment RelationshipLeadershipStructureStrategy2The Context of
Business: A FrameworkThe Specific
EnvironmentOrganizationCustomersLocal
PublicCreditorsDistributorsEmployeesCompetitorsUnionsGovernmentSuppliers3OrganizationThe
Context of Business: A FrameworkThe General EnvironmentPolitical
ForcesEconomic Forces Global Forces Technological Forces
Competitive Forces Societal Forces41. Economic ContextWhat is the
economic environment?
How does the economic context impact business?An economic boom
An economic slump
5 Economic Context in CanadaHow do we determine if Canadas
economy if healthy?Gross Domestic Product (GDP)Canadas GDP has
experience growth since?
What Does this mean for Canada?
Time Periods1979-19802001 2009Until 2025Annual Growth3.2%
1.6%Compounded2.5%Compounded62. Competitive ContextWho are our
competitors?LocalNational InternationalWhat are some of the
advantages and disadvantages of competition?
7 Competitive Context in CanadaWho are our competitors?Local,
National, International
Canada faces a number of challenges
83. Technological ContextAccessibility and Market entryOperating
costsHow has technology influenced how work is done? e.g.
teleworkers, flexible work practices
9Technological Context in CanadaShift away from a Resources
based economy A shift from farming, mining, forestry
Technology transforming the Canadian economy A shift to more
goods producing and service sector
104. Global ContextOrganizations must now think globally.
Why?
115. Political ContextPolitical force can be very
influentialReduction of trade barriersDeregulation of Canadian
Industries
There has been a shift away from government involvement by about
the 1980s12 Political Context in CanadaCanadas political system
(Mixed system)ProtectionismHow can government help business to
compete?Taxation
136. Societal ContextSocietal ForcesCan Corporations be Socially
Responsible to all Stakeholders?Equity in the
workplaceSocietal-based changes/trendsDemographic changes, consumer
preferencesHas the increasingly global nature of business created
new responsibilities for business?
14Societal Context in CanadaIs Canada a good place to do
business/live?As an EmployerAs an employeeAs a student
Immigration, aging population, changes in employment law,
declining birthrates, women in the workforce and all societal
issues that will be explored later.
15Copyright 2015 Pearson Canada Inc.16Think-Pair-Share:
What are the competitive forces affecting Walmart in
Canada?Copyright 2015 Pearson Canada
Inc.17Think-Pair-Share:Walmarts competition in Canada includes:
CompetitorsExampleDiscount retailersTargetClub
warehousesCostcoDollar storesDollarama, Dollar TreeGrocery
storesLoblaw, Metro, SobeysOther retailers that sell similar goods
and servicese.g. household products, toys, electronics, clothing,
linens, etcSustainabilityWhat is sustainability?No universal
definitionOne definition by Former Prime Minister of Norway, Gro
Harlem Brundtland:Development that meets the needs of the present
without comprising the ability of future generations to meet their
own needs.
Copyright 2015 Pearson Canada Inc.18SustainabilityGoals of a
sustainable business:Economic = make a profitSocial equity = meet
needs of peopleEnvironment = protect environment
Copyright 2015 Pearson Canada Inc.19ChangeCan businesses adapt
to change?
What are the barriers to change?
Why are some companies better at adapting to change than
others?
Copyright 2015 Pearson Canada Inc.20Copyright 2015 Pearson
Canada Inc.21
Think-Pair-Share:
How is business doing in Canada?Copyright 2015 Pearson Canada
Inc.22
Think-Pair-Share:Suggested answerPoliticalStable government
EconomicSlow economic growthUnemployment low around 7%Job market
challenging
Copyright 2015 Pearson Canada Inc.23
Think-Pair-Share:TechnologicalCanada trying to focus on more
innovation but still dependent on resources industry.
Societalchanging consumer tastes and preferences; consumers
buying more goods online.
Copyright 2015 Pearson Canada Inc.24
Think-Pair-Share:CompetitiveVery competitive environment.Lots of
global companies competing against Canadian domestic
businesses.
GlobalCanada influenced by global economy (e.g. U.S. is a major
trading partner).
Copyright 2015 Pearson Canada Inc.25
Concept Application: Facebook: When your friends are worth a
billion. Questions:1. What elements of the external and internal
environment do you think contributed to Facebooks success?
2. Which elements of the external and internal environment are
beginning to create challenges for Facebook?
3. Which force must Facebook work the hardest to address to
continue to prosper? Why?
Key Learning PointsNature of external environment7 contexts
Concept application introduction
Next: Do end of chapter case26Next SessionEmployer-employee
relationshipReading: Chapter 2Case: Immigrants unsure about labour
rights. (p.74-76)
Next: Do end of chapter case and be prepared to discuss it in
class.27Copyright 2015 Pearson Canada Inc.28Questions ?28
