The Challenges of Business
The Challenges of Business
must confront in their struggle to survive and prosper? Chapter 1 Karakowsky Concept application: t.b.a
INTERNAL FORCES
PEOPLE
Organizations are made up of people Managers must be able to manage people Leadership skills Team work Communication
STRUCTURE
A planned network or pattern of relationships that exists between individuals in various positions in the organization Includes the formal hierarchy of authority, distribution of work and rules or procedures controlling and coordinating behaviour in the organization
STRUCTURE
Also includes the informal hierarchy of authority, distribution of work and rules or procedures controlling and coordinating behaviour in the organization
A key part of all management decision-making activity Goals must be identified Strategy is how the goals can be achieved Managers and employees must understand the importance of strategy and goals and the relationship between the two
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political
The Organization
technological
societal
global
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Political change can be very influential e.g. deregulation of Canadian Telecoms, banking industry, reduction of trade barriers. It may affect workers rights and work practices. In Canada there is a move towards less government intervention
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Competition may be at a local, national or global level. It may be open or restricted What are the advantages and disadvantages of competition?
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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
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Global forces have an international dimension foreign investment in Canada Organizations must now think globally
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Open economy, primary industries moving to technological expertise. Government attempts to reduce monopolies by encouraging competition.
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Resource based economy now moving to manufacturing, technology and service sector
SOCIETAL FORCES
Increasing need for higher education, immigration, aging population, changes in employment law
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Proximity to USA ($1.3bn a day in trade) or 85% of all Canadian exports A major trading nation, exporting 40% + of GDP. Average level of foreign ownership is 25%. FDI is also relatively high is this problematic? Many subsidiaries of US based parent companies Reducing trade barrier to create more balanced relations with other nations
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NEXT SESSION
Readings: see course outline for
assigned readings!
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