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ADMS 1000: Introduction to Admin Studies

Instructor: Eytan Lasry206 Atkinson416-736-2100 ext. 22878eytan@yorku.ca

Office hours: Tuesday 2-4pm or by appointment

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LECTURE 1THE CONTEXT OF BUSINESS

What are the external factors that all organizations must face in their struggle to survive and prosper?

Chapter 1 – KarakowskyCase: Facebook

Sam the Record Man

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ORGANIZATIONS

• What is an organization?

• Why do we care about organizations?

• An open-system, a living organism continually 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 have a direct link or influence on the organization e.g.:

•Customers•Shareholders•Suppliers•Competitors•Local Communities•Unions•Media

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

and fiscal policies…

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THE SOCIETAL CONTEXT (Chap. 8)

• What is business’ role 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 industries evolve over time (the lifecycle model)?

• What drives industry evolution along certain paths?

• What are the key success factors for firms at different stages of the lifecycle?

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THE TECHNOLOGICAL CONTEXT (Chap. 4)

• What are the different types of technological innovations?

• How does technology evolve over time along a lifecycle and how does it affect organizations and 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, crown corporations, business incentives and subsidies, tariffs, quotas…

• Recent trends of deregulation and privatization

• In Canada (and elsewhere) there is a general trend towards less government intervention in the economy

THE POLITICAL CONTEXT (Chap. 7)

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STRATEGIC MANAGEMENT (Chap. 9)

•The nature of competitive advantage•External [Industry] analysis•Internal [Core Competency] analysis•Business and Corporate Strategies

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ORGANIZATIONAL CHANGE (Chap. 10)

Societal

Economic

Competitive

Technological

Global

Political

Organization Labour

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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. In Canada, you have to ask them – and hope they will do it!”

- Ed Clark, CEO of TD Bank

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THE CANADIAN CONTEXT

• What are the key features of the Canadian Business Environment?

• Foreign Subsidiaries • Excessive Government Regulation and Intervention• Trade Protectionism

• Where are the Global Canadian Brands? http://www.interbrand.com/best_global_brands.aspx?year=2009&langid=1000

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KEY LEARNING POINTS

• Identify the external factors of the general environment and their influence on business organizations

• Characteristics of the Canadian business context

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NEXT SESSION

The Economic Context

Karakowsky, Chapter 2

Read cases for discussion:

Facebook (p. 23) Sam the Record Man

(download from Website)