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Administrative Studies
ADMS 1000
Peter Modir

Chapter 1 Organizations are social entities: made up of people, involve human interaction Are created to achieve goals: goal directed either making profit or something else Interact with environment: obtains input from external environment such as people, raw material technology or financial capital…these input are transformed into output by the organization Open system: organizations are entities that are embedded in and dependent in exchanges with the environment they operate within Organization’s specific environment: external stakeholders such as employees, distributors, etc. General environment: Economic forces: if economy is in recession, organizations lay off people and downsize and introduce temporary workplace (Canada; imports more than it exports) Competitive forces: organizations have their own competitors that compose their specific environment but with the introduction of globalization competition has increased with the arrival of foreign organizations ( Canada; we are more into natural resources then making something out of it to add value to it) Technological forces: if there is an advance in technology, organizations have to change accordingly, for example with the introduction of new technology more small business were able to enter into the telecommunication industry in order to compete with Bell Canada ( Canada is moving away primary industry to manufacturing and service industry, our work force is more educated) Labour forces: Canadian business should be aware of the changing diversity in the society, they should be aware of the role of unions and how they can impact businesses (demographics in Canada has changed, more woman are entering the work force so businesses should make some effort to accommodate this change) Global forces (any forces but internationally): events of September 11, 2001 changed the economy by economically and politically. International trade agreement keep changing in each country and it may affect organization. A Canadian organization may be simply consider consumers within domestic borders but may have significant market overseas ( Canada’s biggest trading partner is US, also Canada is house to many foreign based companies and their branch plants, in Canada 3 companies are opened in every 2 days) Political forces: government may dereg8ulate certain industries and it may affect industries. For example, reduction in trade barriers allow foreign companies to compete with Canadian companies in Canada( Canada is a mixed economy, import tariffs are imposed in order to make foreign goods more expensive than domestic goods and to protect our domestic businesses, Canadian government pays tax incentives in order to help businesses establish in areas the government wants them to. For example Canadian government paid $3.2 billion in order for Chrysler to stay in business) Societal forces: increasing concerns of society to have equal rights and fair treatment of employees can affect the businesses. Pay equity is also another point to be noted. Society wants to be paid based on performance rather than # of years working. Consumers taste changes and businesses should be aware of these changes. Also type of organizations that serve societal demand can change. The aging population suggests that we need more health care. Organization should also be aware of ethical issues (Canada is best when it comes to education more than 50% of the population have post-secondary education, Canada is also prone to scandals such as bribery) Perfect competition: many small firms with identical products ( ie agriculture), firms cannot affect prices (prices set by the market), it’s easy to enter or leave the market Monopolistic competition: large # of small firms with some differentiation of products so they have some influence on price (ie, clothing stores), easy to enter or leave Oligopoly: small # of firms with different products and they have significant control over prices but completion still plays a role (ie. Car industry or cereal), they avoid price competition because it reduces profit rather they try to compete using advertisement, hard to enter because requires a lot of capital Monopoly: only one producer (government tries to prevent this from happening) Chapter 2 2 industry trends in phone market: bring your own device (shifting the responsibility to employees), sandboxing which is separating work functions from the rest of the smart phones for security reasons Economic system: allocates a nation’s resources among its citizens Command economy: government controls all or most factor of production and make all the decisions centrally  Communism: a system in which government owns and operates all the sources of production  Socialism: government owns and operates only selected major industries, a large proportion of people work for government and most of them are political consideration rather than ability Market economies: individuals such as buyers and sellers control production and allocation  Capitalism: private ownership of the factor of production and encourages entrepreneurship by offering profit as an incentive Elements required by the private enterprise: Private property: ownership of the resources Freedom of choice: choose whom to sell or whom to hire Profit: profit makes people leave their current job Competition: competition motivates businesses to operate efficiently Economic environment: condition of the economic system in which an organization operates. For example, McDonald’s Canadian operations are functioning in an environment characterized by moderate growth, moderate unemployment (most people are bale to eat out), and low inflation (constant price for its supplies). GPI (Genuine progress indicator): treats activities that harm the environment or our quality of life as costs and gives them a negative values Purchasing power parity (PPP): the principle that exchange rates are set so that the prices of similar products in different countries are about the same Balance of trades: economic value of all the products that a country exports minus the economic value of its imported products…. Trade deficit affects countries because same money can be used to produce goods at home or overseas Creditor nation: have trade surplus (more exports than imports) vs. debtor nation National debt: amount of money that the government owes its creditors …the more money the government borrows, the less money is available for the private borrowing and investments that increase productivity Inflation: when amou
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