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Lecture

ADMS1000 - LECTURE 1.docx

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Department
Administrative Studies
Course
ADMS 1000
Professor
Shahab Modirmassihai
Semester
Winter

Description
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? ORGANIZATIONS AS OPEN SYSTEMS What is an organization? - Social entities: they are made up of people – generated and maintained by people – involve some level of human interaction - Goal oriented: some kind of goal or objective they were designed to achieve - Interact with the environment: an organization obtains inputs from its environment whether in the form of people, raw materials, technology or financial capital. All these inputs are transformed by the organization and become outputs: the goods, services or knowledge that the organization generates. Metaphors to describe organizations - A system can be defined as interdependent elements working together to achieve a goal or goals o The interdependence of its elements creates an entity that is more than the sum of its parts - Organizations as open systems  organizations are entities that are embedded in and dependent on exchanges with the environment they operate within - In addition, organizations can be viewed as social systems, with ppl constituting the basic elements - There have been time when organizations had been viewed as a closed system  fully self-sufficient entities requiring no interaction with the environment Feedback Inputs Physical Resources Process - plant - transformation - capital - materials to goods or Outputs services Human Resources generated by - goods or services - People the organization generated - Knowledge (e.g the manufacturing Technology process ) The Environment - An organization’s environment represents all elements that exist outside the organization and that potentially influence or affect the organization in some way - Emphasizes the importance of the environment and interaction with the environment - Organizations are crested in response to societal and environmental needs - Ultimately, environment will determine fate of organization 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. - The environment of an organization has been typically defined as: - Specific or task environment: organization directly operates - External stakeholders - These parties or groups have direct influence on an organization’s ability to obtain resources and generate outputs. - i.e employee, competitors, unions… - General environment: external environments of all organization in society - These factors ultimately shape the specific environment of the organization - Also influenced the organization’s ability to obtain resources GENERAL EXTERNAL ENVIRONMENT OF BUSINESS 1. ECONOMIC FORCES - Organizations are continuously forced to adapt to changing economic conditions - An economic slump can mean downsizing,
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