ADMS1000 Mid-Term Study Notes
Chapter One – Exploring Canadian Business: A Critical Approach
Change- A shift in how an organization operates
Can business adapt to change? What are the barriers to change? Why are some companies better at adapting to change than others?
Inside The Organization
Leadership- how people are managed within an organization Strategy- the decisions made by business managers about how the company will address political, economic, global, societal,
competitive, and technological forces Labor- One of the 5 factors of production. Includes all workers in an organization who contribute their strengths to create goods and
services Structure- a deliberately planned network or pattern of relationships that exists among individuals within an organization. It determines
such things as fiction of labor, span of control, level of formalization, and how centralized decision making is
Outside The Organization (General Environment)
Economic Forces- The economic influences on organizations, such as the state of the economy, unemployment, inflation, interest rates, and gross domestic product. For example, high unemployment numbers may indicate lower overall consumer spending, and business sales could be negatively affected. If sales could be negatively affected. If sales go down significantly, businesses may need to reduce production, cut costs or lay off workers o Ex. Negative GDP o Is economy healthy or weak? What is the state of the Economy? Recession or growth Currency rate Unemployment rate Inflation National debt
Competitive Forces- The domestic and foreign competitive influences on organizational decisions. Competitors are organizations operating in the same industry and welling similar products and services. However, competitors may compete in different ways o Globalization opens the floodgates for competitors in many industries o You must continually create new and better methods of serving customers (ex. Phones) How competitive is your industry? Who are your competitors? What type of competition does your industry operate in?
Technological Forces- The technological environment that exerts influence across industries, playing a central role in how an organization functions, obtains recourses and competes. Changes in technology both permits and demands organizational change o Saving time=making more o Virtual company o You can’t prevent change How is changing technology impacting or changing business? Work Approaches (Video conferencing) Equipment(manufacturing) Electronics (smartphones, tablets) Telecommunications (internet, phone service) Processing Systems (data processing systems)
Global Forces- The global influences on organizations that could be considered as part of the general economic, political, technological, competitive, or societal forces but are international in nature o No longer working in one country o China coming up fast-> taking over o How other countries effect you? o Always affecting you Includes all the other 5 forces but in an international context: Political Economics Technological Societal
ADMS1000 Mid-Term Study Notes