Session 1B:

Exploring Canadian Business:

A Framework
What are the major challenges facing Business?
Reading:
Karakowsky & Guriel (2015) Chapter 1

The Internal Context of Business

Inside the organization:
1. The Employment Relationship
2. Leadership
3. Structure
4. Strategy

The Context of Business: A Framework

The Specific Environment

Customers
Suppliers
Employees

Government
Organizatio
n

Competitors
Unions

Local Public

Creditor
s
Distributors

The Context of Business: A

Framework
The General Environment
Economic
Forces
Political
Forces
Organization

Societal
Forces
Competitive
Forces

Glob
al
Force
s

Technolog
ical
Forces

1. Economic Context
What is the economic environment?
How does the economic context

impact business?
An economic boom
An economic slump

Economic Context in Canada

How do we determine if Canadas economy if

healthy?
Gross Domestic Product (GDP)
Canadas GDP has experience growth since?
Time
Periods

1979-1980

2001 2009

Until 2025

Annual
Growth

3.2%

1.6%
Compounded

2.5%
Compounded

What Does this mean for Canada?

2. Competitive Context
Who are our competitors?
Local
National
International
What are some of the advantages and

disadvantages of competition?

Competitive Context in
Canada
Who are our competitors?
Local, National, International

Canada faces a number of challenges

3. Technological Context
Accessibility and Market entry
Operating costs
How has technology influenced how work is

done? e.g. teleworkers, flexible work practices

Technological Context in Canada

Shift away from a Resources based economy
A shift from farming, mining, forestry

Technology transforming the Canadian

economy
A shift to more goods producing and service sector

4. Global Context
Organizations must now think globally. Why?

Trade
Agreements
- NAFTA

Outsourcing

FDI/Branch Plant

5. Political Context
Political force can be very influential
Reduction of trade barriers
Deregulation of Canadian Industries

There has been a shift away from government

involvement by about the 1980s

Political Context in
Canada
Canadas political system (Mixed system)
Protectionism
How can government help business to

compete?
Taxation

6. Societal Context
Societal Forces
Can Corporations be Socially Responsible to all
Stakeholders?
Equity in the workplace
Societal-based changes/trends
Demographic changes, consumer preferences
Has the increasingly global nature of business

created new responsibilities for business?

Societal Context in
Canada
Is Canada a good place to do

business/live?
As an Employer
As an employee
As a student

Immigration, aging population, changes in

employment law, declining birthrates, women in

the workforce and all societal issues that will be
explored later.

Think-Pair-Share:

What are the

competitive
forces
affecting
Walmart in
Canada?

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Think-Pair-Share:

Walmarts competition in Canada

includes:
Competitors
Example
Discount retailers

Target

Club warehouses

Costco

Dollar stores

Dollarama, Dollar Tree

Grocery stores

Loblaw, Metro, Sobeys

Other retailers that sell

e.g. household products,

similar goods and services

toys, electronics, clothing,

linens, etc

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Sustainability
What is sustainability?
No universal definition
One definition by Former Prime Minister of
Norway, Gro Harlem Brundtland:
Development that meets the needs of the
present without comprising the ability of
future generations to meet their own needs.

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Sustainability
Goals of a sustainable business:
Economic

= make a profit

Social equity

= meet needs of people

Environment

= protect environment

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Change
Can businesses adapt to change?
What are the barriers to change?
Why are some companies better at

adapting to change than others?

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Think-Pair-Share:

How is business
doing in Canada?

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Think-Pair-Share:
Suggested answer

Political
Stable government
Economic
Slow economic growth
Unemployment low around 7%
Job market challenging

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Think-Pair-Share:

Technological
Canada trying to focus on more
innovation but still dependent on
resources industry.
Societal
changing consumer tastes and
preferences; consumers buying more
goods online.
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Think-Pair-Share:

Competitive
Very competitive environment.
Lots of global companies competing
against Canadian domestic businesses.
Global
Canada influenced by global economy
(e.g. U.S. is a major trading partner).
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Concept Application:
Facebook: When your friends are worth a billion.

Questions:
1. What elements of the external and
internal environment do you think
contributed to Facebooks success?
2. Which elements of the external and
internal environment are beginning to
create challenges for Facebook?
3. Which force must Facebook work the
hardest to address to continue to
prosper? Why?
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Key Learning Points

Nature of external environment
7 contexts

Concept application introduction

Next: Do end of chapter case

Next Session
Employer-employee relationship
Reading: Chapter 2
Case: Immigrants unsure about labour
rights. (p.74-76)
Next: Do end of chapter case and be

prepared to discuss it in class.

Questions ?

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