1. 1 ADMS 1000: Introduction to Admin Studies Instructor: Eytan Lasry 206 Atkinson 416-736-2100 ext. 22878 eytan@yorku.ca Office hours: Tuesday 2-4pm or by appointment

2. 2 LECTURE 1 THE CONTEXT OF BUSINESS What are the external factors that all organizations must face in their struggle to survive and prosper? Chapter 1 – Karakowsky Case:Facebook Sam the Record Man

3. 3 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

4. 4 INTERNAL & EXTERNAL CONTEXTS

5. 5 SPECIFIC or TASK ENVIRONMENT - STAKEHOLDERS People Structure Strategy Parties/Groups that have a direct link or influence on the organization e.g.: Customers Shareholders Suppliers Competitors Local Communities Unions Media

6. economic global technological competitive political societal Organization labour GENERAL ENVIRONMENT

7. 7 THE ECONOMIC CONTEXT (Chap. 2) Business cycles: recession, expansion… Balance of trade National debt Inflation Unemployment Exchange rates, interest rates, monetary and fiscal policies…

8. 8 THE SOCIETAL CONTEXT (Chap. 8) What is business’ role in society? Societal norms, behaviors, values and ethical beliefs Managing Stakeholders Corporate Social Responsibility (CSR)

9. 9 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?

10. 10 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?

11. 11 THE LABOUR CONTEXT (Chap. 5) The changing nature of the workforce Diversity in the workplace Employment Equity How unions have affected business and society

12. 12 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

13. 13 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)

14. 14 STRATEGIC MANAGEMENT (Chap. 9) The nature of competitive advantage External [Industry] analysis Internal [Core Competency] analysis Business and Corporate Strategies

15. 15 ORGANIZATIONAL CHANGE (Chap. 10) Societal Economic Competitive Technological Global Political Organization Labour

16. 16 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

17. 17 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=100 0 http://www.interbrand.com/best_global_brands.aspx?year=2009&langid=100 0

18. 18 KEY LEARNING POINTS Identify the external factors of the general environment and their influence on business organizations Characteristics of the Canadian business context

19. 19 NEXT SESSION The Economic Context Karakowsky, Chapter 2 Read cases for discussion: Facebook (p. 23) Sam the Record Man (download from Website)