MGMT 1000: Notes from Weeks 1-6
The importance of a KNOWLEDGE ECONOMY:
- Knowledge is doubling every 11 hours. Learning is no longer a luxury, it is a necessity.
- In a world with new rules of economics and new rules of social life.
- Continuous Learning: The one sure source of competitive advantage is knowledge.
- “Knowledge Creating Company” is a company that can consistently create new
knowledge, disseminate it quickly throughout the company and embody it in new products.
- Collaborative Learning: Where collective aspiration is set free and people are continually
learning how to learn together
- Competitive Advantage: Those with resources no longer posses competitive advantage, it is
those with knowledge that prevail.
- There are many types of knowledge that people can develop: Creative, Logical- Analytical,
Social, Literate, Holistic, And Kinesthetic.
- LEARNING is generative (grows and feeds on itself), leads to knowledge and value, fosters
adaptability and change, can create new niches, and creates a sustainable advantage.
- Brain vs. Machine: In a rat, they took out 90% of its brain and it was still able to do the maze.
If you took out one piece of a machine, it could no longer function. The brain relies on patterns of
increasing refinement, where as machines rely on chains of cause and effect.
- Technology can be used as a catalyst for learning. Eg. MGMT class the use of Dyknow and
Internet. Online sources make learning for accessible.
- Trained Incapacity/ Self-Limitation: People are trained not to think and use their brain
potential; they have been conditioned and trained to perform in ways that have outlived their
usefulness. E.g. Fish in a tank.
- It is important to know who has a stake in the issues with which you are involved, because
if they have a stake they have interest. If that interest is strong enougthey will do their best to
influence what you are doing.
- Potential Stakeholders: Owners / Shareholders, Employees, Customers, Suppliers,
Creditors, Competitors, Government, Society at large, The environment
- Basic Questions: How they SEE, How they THINK, How they ACT & REACT, What can be
LEARNED, How it will change what WE DO.
- Practical applications: use as a tool for market research, understanding your customers,
competitors and getting a different view on familiar problems.
- Extend the idea to understand the position of non-stakeholders or lapse stakeholders.
- There are instances such as emergency circumstances in which this analysis wouldn’t apply.
- Embracing multiple points allows you to see the bigger picture, enrich and deepen your
understanding of different situations and see new connections and relationships.
- SWOT analysis, used to evaluate the strengths, weaknesses, opportunities and threats of a
situation or product.
- TBL Analysis: Is an analysis of economic, environmental and social responsibilities.
- Firms need to be financially viable, be able to pay employees, buy supplies and pay
- Businesses should support social endeavors and general societal well being. (E.g.
Safety in the way they do business, Human rights maintained, encouraging employees to
get involved in the community and recognizing their efforts.)
- Organizations should seek to implement “green” policies that will help present and future generations.
1) Sustainable development is development that meets the needs of the present without
compromising the needs of future generations to meet their own needs.
2) Sustainable development means improving the quality of human life whilst living
within the carrying capacity of the ecosystems.
3) Sustainability is an economic state where the demands placed upon the environment
by people and commerce can be met without reducing the capacity of the environment to
provide for future generations.
Intangible assets: Company values, reputation, and goodwill.
• Intangible assets can increase when a business focuses on achieving triple bottom line
• Some examples of intangible assets:
– Brand value … Think Pepsi or Coca Cola!
– Reputational value
Corporate Social Responsibility: When a business interacts with its community in a positive
way (i.e. through charity or helping create a friendly and safe environment). It also applies to the
decisions and impact thereof that businesses make on a daily basis.
Characteristics of sustainable enterprises:
• Stay connected to stakeholders & changes in the external environment (i.e. What is
happening politically, socially, technologically, environmentally, and economically that
could impact the business?)
• Build these internal capabilities: leadership, stakeholder inclusion, communication &
• Design their mission and strategy to maximize competitive advantage in a changing
Destructive Side of Technology: The “sodbuster” used to plow the land, made the soil deplete.
The Sauk Indian people after using this method after generations had past had forgotten how to
use their ancestral methods. We can asses the degree of impediment:
- The monetary costs
- Loss of knowledge
- Hidden Curriculum: Invisible message of the interaction between professional and
client is “You will be better because I know better.”
Social Entrepreneurship: The act of doing business for the betterment of society or with a
socially-inclined mindset. It can be defined as a professional, innovative, and sustainable
approach to systemic change that resolves social market failures and grasps opportunities.
Balanced Scorecard: Performance management. Method uses Reverse planning
- Mission Perspective
- Operational Perspective
- Learning and Growth Perspective
- Financial Perspective
Metaphors: Businesses use metaphors to take a different perspective. (E.g. Swallows coming to
a city during high season. How do you get the swallows to come to your city?)
Panel Discussion: One guy came in talking about waste from York washrooms. They took action
to install hand driers instead of paper towel in a lot of bathrooms, reducing waste. (TBL and
sustainability) Engaging Customers: Products and Services and the Importance of Quality
- Use of Rules of one situation to REINVENT another: sometimes the best insights come
from strangers, the people outside the immediate problem. (E.g. comparing a 5 star hotel to
- Developing New Products and Services:
- Find creative reference points (other different products and services) and synergize them
(E.g. Chris creating a Senior’s Residence uses reference points like a Japanese garden, a jail a
fun fair, a Science Lab.)
- New Produc