Introduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len KarakowskyIntroduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len Karakowsky ADMS 1000ADMS 1000

Session 1 EXPLORING THE CANADIAN BUSINESS

ENVIRONMENT: A FRAMEWORK

What are the fundamental external forces which all organizations must confront in their struggle to survive and prosper?

Reading:

Karakowsky (2011) Chapter 1

Introduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len KarakowskyIntroduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len Karakowsky ADMS 1000ADMS 1000

ORGANIZATIONS AS OPEN SYSTEMS

What is an organization?

-Social entities-Goal oriented-Interact with the environment

Introduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len KarakowskyIntroduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len Karakowsky ADMS 1000ADMS 1000

ORGANIZATIONS AS OPEN SYSTEMS

Metaphors to describe organizations

-Organizations as open systems

Introduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len KarakowskyIntroduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len Karakowsky ADMS 1000ADMS 1000

THE EXTERNAL CONTEXT OF BUSINESS

SPECIFIC ENVIRONMENTGENERAL ENVIRONMENT

Introduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len KarakowskyIntroduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len Karakowsky ADMS 1000ADMS 1000

The environment of business: FORCES THAT DETERMINE BUSINESS SUCCESS OR FAILURE

• WE NEED TO CONSIDER THE EXTERNAL FORCES – THESE ARE FORCES THAT ACT ON ALL BUSINESSES IN ANY LOCATION IN THE WORLD.

Introduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len KarakowskyIntroduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len Karakowsky ADMS 1000ADMS 1000

GENERAL EXTERNAL ENVIRONMENT OF BUSINESS

economic

global

technological

competitive

political

societal

TheOrganization

Labour

Introduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len KarakowskyIntroduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len Karakowsky ADMS 1000ADMS 1000

1. ECONOMIC FORCES

• An economic slump can mean downsizing, cuts in training and staff development, end of traditional work practices etc

• An economic boom can mean expansion, extra training, R & D etc

Introduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len KarakowskyIntroduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len Karakowsky ADMS 1000ADMS 1000

2. COMPETITIVE FORCES

• Business must think about who their competitors will be

• Competition may be at a local, national or global level. It may be open or restricted

• What are the advantages and disadvantages of competition?

Introduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len KarakowskyIntroduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len Karakowsky ADMS 1000ADMS 1000

3. TECHNOLOGICAL FORCES

• Technology has an important influence on organizations - accessibility influences market entry and operating costs

• Consider how technology has influenced the role of work and how work is done, e.g. teleworkers, flexible work practices

Introduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len KarakowskyIntroduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len Karakowsky ADMS 1000ADMS 1000

4. LABOUR FORCES

• The changing nature of the workforce

• The increasingly diverse nature of the workforce

• As a “voice” for the labour force, consider how unions have impact work and society

Introduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len KarakowskyIntroduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len Karakowsky ADMS 1000ADMS 1000

5. GLOBAL FORCES

• Global forces have an international dimension

• Organizations must now think globally

• Global forces have resulted in business outsourcing in order to gain a competitive advantage

Introduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len KarakowskyIntroduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len Karakowsky ADMS 1000ADMS 1000

• Political change can be very influential e.g. deregulation of Canadian Telecoms, banking industry, reduction of trade barriers, changing political leaders

• In Canada there is a move towards less government intervention

6. POLITICAL FORCES

Introduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len KarakowskyIntroduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len Karakowsky ADMS 1000ADMS 1000

7. SOCIETAL FORCES

• How can society impact business?

• What responsibilities does business have to society?

• Has the increasingly global nature of business created new responsibilities for business?

Introduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len KarakowskyIntroduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len Karakowsky ADMS 1000ADMS 1000

CANADA: A GREAT PLACE TO DO BUSINESS?

• HOW WOULD YOU DESCRIBE THE CANADIAN BUSINESS ENVIRONMENT?

• IS CANADA A GOOD PLACE FOR BUSINESS? FOR YOU AS A PROSPECTIVE EMPLOYEE?

•IE WHAT’S THE ENVIRONMENT OF BUSINESS?

Introduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len KarakowskyIntroduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len Karakowsky ADMS 1000ADMS 1000

….IN CANADA

1. ECONOMIC FORCES

• Gross Domestic Product (total value of a country’s annual output of goods and services)

• Money from the production goes to employees, business owners and the government (through taxes).

• We want GDP to grow annually!

Introduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len KarakowskyIntroduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len Karakowsky ADMS 1000ADMS 1000

2. COMPETITIVE FORCES

What competitors are doing in your industry obviously will influence your success or failure. Which industries are very competitive right now?

… IN CANADA

Introduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len KarakowskyIntroduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len Karakowsky ADMS 1000ADMS 1000

3. TECHNOLOGICAL FORCES

Resource based economy (farming, mining, forestry etc) now moving to manufacturing, technology and service sector – e.g. telecommunications, energy etc

…IN CANADA

Introduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len KarakowskyIntroduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len Karakowsky ADMS 1000ADMS 1000

4. LABOUR FORCES

Canada has a demographically diverse population and it is important that we maximize the value of this diversity

…IN CANADA

Introduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len KarakowskyIntroduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len Karakowsky ADMS 1000ADMS 1000

5. GLOBAL FORCES

• Canada exports over 40% of its GDP – a major trading nation through agreements such as NAFTA

• Foreign ownership of Canadian companies is becoming increasingly common.

…IN CANADA

Introduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len KarakowskyIntroduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len Karakowsky ADMS 1000ADMS 1000

6. POLITICAL FORCES

Capitalist economy but the government also has an important role in the business environment, e.g. taxes, subsidies, global trade agreements etc.

…IN CANADA

Introduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len KarakowskyIntroduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len Karakowsky ADMS 1000ADMS 1000

7. SOCIETAL FORCES

Increasing need for higher education, immigration, aging population, changes in employment law, declining birthrates, women in the workforce

… IN CANADA

Introduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len KarakowskyIntroduction to Administrative Studies Introduction to Administrative Studies Dr. Len KarakowskyDr. Len Karakowsky ADMS 1000ADMS 1000

KEY LEARNING POINTS

• Nature of external forces

• Concept application introduction

• Next: do end of chapter case