Lecture 1: The Challenges Of Business lecture from 04/01/11
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Lecture 1: The Challenges Of Business
Chapter 1 Case: Sam The Record Man (p. handout)
Internal and External forces framework and their influence on organizations
Connectivity of internal and external contexts
Characteristics of Canadian business context
How is business doing in Canada?
Low unemployment rate – 7.6%
Reduction in federal corporate tax rate from 18% to 16.5% for 2011
Canadian federal tax rate is half of U.S. federal tax rate
Currency advantage (consumers benefit)
Central Bank raising interest rates
Banking sector is strong
Rising commodity prices
Strong housing market (ex: higher home ownership rate than U.S.)
More stable than the U.S. economy
Inside – Outside
What are the fundamental internal and external forces which all
organizations must align in their struggle to survive and prosper?
Internal Forces External Forces
The Internal Context Of Organizations
Type of people within organizations/companies:
o Owners / investors: The people who begin the company
o Managers: The people who co-ordinate operations within the
o Employees: The company’s greatest asset/those who understand
how it works
What motivates today’s workforce?
To earn money
To take pride in a company they work for
Internal and external forces framework and their influence on organizations. Reduction in federal corporate tax rate from 18% to 16. 5% for 2011. Canadian federal tax rate is half of u. s. federal tax rate. Strong housing market (ex: higher home ownership rate than u. s. ) Type of people within organizations/companies: owners / investors: the people who begin the company, managers: the people who co-ordinate operations within the company, employees: the company"s greatest asset/those who understand how it works. To take pride in a company they work for. To be part of a successful company. To have a fulfilling career: structure. Organizational structure: organization size, technology, environment uncertainty, individual differences, decision-making (centralized vs decentralized, strategy. Differentiation: the nature of competitive advantage, external [industry] analysis, internal [core competency] analysis, combining them and implementing strategies. The external context of organizations: societal forces. Who is society: general public or community, consumer, media, educators, other special interest groups.