BUSS1000 Final: BUSS1000 COMPLETE Course Notes USyd
26 May 2018
School
Department
Course
Professor
BUSS1000& & &
BUSS1000&–&THE&FUTURE&OF&BUSINESS&
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WEEK&1:&
Wicked'Problems:'complex&social&and&policy&problems&
• E.g.&water&and&food&shortages,&youth&UE,&pop&growth,&poverty,&climate&change,&inequality,&global&security&etc.&
• Many&orgs&look&to&solve&these&problems&
o Climate&Action&Network&of&Australia&à&advocate&for&a&better&climate&change&awareness&
o Bill&and&Melinda&Gates&Foundation&à&curing&easily&preventable&diseases&
o Tesla&à&electric&motor&vehicles&to&reduce&carbon&emissions&
• Limitations:&
o Complex&
o Stakeholders/shareholders&
o Manifestations&of&bigger&social&trends&and&shifts&
MEGATRENDS&
John&Naisbitt:&large,&transformative&processes&with&global&reach,&broad&scope,&and&a&fundamental&and&dramatic&impact&à&
direct&link&to&Wicked&problems&
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• Evolving&communities&
o World&pop&7.5b&2016&à&10b&2050&
o 2015-2100&growth&generation&from&Asia&to&Africa&
o Millennials&are&largest&generation&in&history&à&will&continue&to&happen&
o 8%&world&pop&over&65&in&2015&à&13%&by&2030&
• Rapid&urbanisation&
o 2%&world&pop&in&cities&1800&à&54%&by&2015,&61%&by&2030&
o 750&biggest&cities&(of&4146)&contribute&57%&global&GDP&
o 1.5m&per&week&join&cities&
• Empowered&individuals&
o 400m&connected&in&2000,&3.2b&2015&
o Social&media&
o Rise&in&experiential&consumption&
o $5.67tr&in&socially&responsible&investments&in&2014&
• Economic&power&shift&
o Emerging&economies&33%&of&world&total&2015&à&50%&by&2025&
o Emerging&economies&grow&75%&faster&than&developed&
o By&2030,&80%&world&pop&in&middle&class&
o 2030&E7&>&G7&purchasing&power&
• Resource&security&
o World&Economic&Forum&(WEF)&identifies&water&as&risk&
o Energy&consumption&to&increase&by&35%&by&2035&
o Clean&energy&materials&at&critical&levels&
o Life&critical&phosphorous&to&peak&by&2050&
o 50%&increase&required&in&global&food&production&by&2050&
• Impactful&technologies&
o 90%&of&world’s&data&created&in&the&last&4&years&
o 75%&of&stock&trades&today&created&by&algorithm&
o 1&trillion&objects&connected&by&2025&
o Artificial&intelligence&4:1&
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BUSS1000& & &
WEEK&2:&NATURE,&ROLE&AND&PURPOSE&OF&BUSINESS&
• Organisation:&a&group&of&people&who&work&together&in&an&organised&way&for&a&shared&purpose'
• Company:&an&organisation&that&sells&G/S&to&make&money'
• Corporation:&a&large&company&or&group&of&companies&controlled&as&a&single&organisation'
• Business:&a&company&that&buys&and&sells&G+S'
• Stakeholders:&an&organisation&or&person&(e.g.&employee,&customer)&involved&with&an&org&à&\&has&responsibilities&
towards&it&+&interest&in&its&success'
o Owners&(shareholders)'
o Customers'
o Employees'
o Suppliers'
o Competitors'
o Community'
o Government'
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MISSION,&VISION&+&VALUES:&
• Mission:&description&of&the&aims&of&a&business,&charity,&Gov.&department&or&public&org'
• Vision:&statement&of&what&an&org&would&like&to&achieve&in&the&future'
• Values:&principles&that&help&you&to&decide&what&is&right&and&wrong,&and&how&to&act&in&various&situations'
o Why&an&organisation&exists'
o Understanding&of&what&leaders&want&the&org&to&become'
o Provides&context&for&all&decisions&w/in&organisation'
o Guiding&the&development&of&strategy&+&organisation'
• Organisational'Culture:'attitudes&and&agreed&ways&of&working&shared&by&employees&of&an&org'
o Can’t&always&be&controlled'
o Informed&by&characteristics&of&owners&+&employees'
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CSR,&CSV&+&SE:&
• Traditional&role&of&business&was&to&profit&+&
stimulate&economic&activity'
o 20th¢ury&=&social&dissatisfaction'
o Human&impact&on&environment&
entering&public&consciousness'
§ Global&warming&mid&20th&
century'
§ Ozone&depletion&1970s'
§ Exxon&Valdez&Oil&Spill&1989'
o Direct&impact&of&firms:&'
§ Great&Smog&of&1952'
§ Bhopal&Disasters&in&1984'
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• !"#$"#%&'()"*+%,(-'.$"/.+0+,+&1(2!)-3:&increasing&social&pressure&for&orgs&to&think&beyond&profit'
o “Actions&that&appear&to&further&some&social&good,&beyond&the&interests&of&the&firm&and&that&which&is&
required&by&law”&(McWilliams&2001)'
§ E.g.&donations,&sponsorships,&funding&community&projects,&Fairtrade&purchases&(e.g.&Cadbury)'
o Critiques:&Ethics&of&spending&shareholder&funds&on&ventures&unrelated&to&profitability'
• !#'%&+/4()5%#'6(7%,8'(2!)739'driving&mutually&beneficial&change,&reconceiving&products&and&markets&à&drive&
innovation&+&productivity&growth,&reshape&capitalism&and&relationship&to&society'
o E.g.&GE&Ecomagination&à&re-did&entire&supply&chain'
o Critiques:'
§ Virtually&the&same&as&CSR'
§ Naivety&around&compliance&(assumptions)'
§ Doesn’t&address&systematic&problems&within&capitalism'
• )"*+%,(:/&#'$#'/'8#.5+$(2):39&entrepreneurship&distinguished&by&3&factors'
o 3&Key&Factors:'
§ Sociality:&addressing&social&problems&à&reduced&externalities,&gender&empowerment&etc.'
§ Innovation:&resourcefulness,&changing&institutions,&reconfiguring&needs,&wants,&demands'
§ Market&Orientation:&performance,&stakeholder¬&just&shareholder,&market&failure&'
o Profit&vs.&Non-profit'
o Critiques:'
§ Unmet&social&needs'
§ How&can&existing&firms&engage&in&SE&'
BUSS1000& & &
WEEK&3:&THE&EXTERNAL&ENVIRONMENT&
LAYERS&OF&THE&BUSINESS&ENVIRONMENT:&
• Macro&Environment:&highest&layer,&factors&impact&all&orgs&to&some°ree&
o PESTLE:&long&term&focus&
§ Allows&for&EXTERNAL&shocks&that&may&occur®ularly&
§ To&identify&“key&drivers&of&change”&
§ Elements:&
• Political:&stability,&rent-seeking,&activism&
• Economic:&IR,&inflation,&cost&of&key&inputs,&
disposable&Y,&UE&
• Social:&consumer&preferences,&cultural&shifts,&demographic&structure&
• Tech:&communication,&info,&physical,&transport&infrastructure&
• Legal:&consumer&laws,&competition&laws&
• Environmental:&resources,&weather,&seasonality&
§ Limitations:&
• Not&industry,§or&or&segment&analysis&=&very&broad&view&
• Not&internal&analysis&
• Broad&=&lots&to&cover&à&no&specific&relevance&to&the&company/industry&
• Some&shocks&are&hard&to&anticipate&
o Case&Study:&Nintendo&(USA)&
§ P:&Trump&(satisfaction,&policies&e.g.&internal&production),&isolationism&(national&sentiment),&Trans-Pacific&Partnership&(TPP)&
§ E:&disposable&income&has&been&stable&in&US,&TPP&
§ S:&Americans&working&more&hours&=&travel&time&(reduce&leisure&time)&
§ T:&Moore’s&Law&(power&of&tech),&73%&US&citizens&online&every&day&=&increased&use&
§ L:&potentially&loosening®ulations&around&e-waste,&rules&shifting&(ways&people&are&employed&–&overtime,&sick&leave&etc.)&
§ E:&climate&change,&e-waste&increasing&
• Industry/Sector:&all&orgs&that&produce&the&same&G+S&
o Define&industry&boundaries&by&identifying&relevant&market,&ability&to&substitute&G+S,&geo.&boundaries&
o Porter’s&5&Forces:&a&way&of&assessing&the&attractiveness&(profit&potential)&of&different&industries&
§ Competitive&Rivalry:&
• No.&competitors&
• Quality&differences&
• Switching&costs&
• Customer&loyalty&
§ Threat&of&New&Entry:&&
• Time&+&cost&of&entry&
• Specialist&knowledge&
• Economies&of&scale&
• Tech&protection&
• Barriers&to&entry&
§ Buyer&Power:&
• No.&customers&
• Size&of&each&order&
• Differences&b/w&
competitors&
• Price&sensibility&
• Ability&to&substitute&
• Cost&of&changing&
§ Supplier&Power:&
• No.&suppliers&
• Size&of&suppliers&
• Uniqueness&of&service&
• Ability&to&substitute&
• Cost&of&changing&
§ Threat&of&Substitution:&
• Substitute&performance&
• Cost&of&change&
§ E.g.&Nintendo&(USA)&
• Threat&of&new&entry&(Microsoft,&Sony&etc.)&à&medium&to&lower&power&
o Market&is&difficult&to&enter&(saturated,&strong&competitors&(oligopoly))&&
• Suppliers:&existing&agreements&w/&orgs&à&medium&to&low&power&
• Buyers:&switching&costs,&loyal&followers,&cost&of&game&+&console&à&high&power&
• Substitution:&external&firms&etc.&à&medium&to&high&power&
§ Criticisms:&&
• Defining&the&right&industry&
• Converging&industries&
• Complementary&products&
• Assumptions&may¬&always&hold&
• Sometimes&blind&to&dynamics&of&markets&
• Power&and&threats¬&so&useful&for&entrepreneurial&firms&
• Competitors:&layer&closest&to&organisation,&within&an&industry/sector&
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Document Summary
Wicked problems: complex social and policy problems: many orgs look to solve these problems. E. g. water and food shortages, youth ue, pop growth, poverty, climate change, inequality, global security etc. John naisbitt: large, transformative processes with global reach, broad scope, and a fundamental and dramatic impact direct link to wicked problems. Week 2: nature, role and purpose of business. Company: an organisation that sells g/s to make money. Corporation: a large company or group of companies controlled as a single organisation: organisation: a group of people who work together in an organised way for a shared purpose, business: a company that buys and sells g+s. Stakeholders: an organisation or person (e. g. employee, customer) involved with an org \ has responsibilities towards it + interest in its success: owners (shareholders, customers, employees. Informed by characteristics of owners + employees: organisational culture: attitudes and agreed ways of working shared by employees of an org.
