AP/ADMS1000 F - Introduction to Administrative Studies (Fall 2015-2016)
Session one: Question one: The initial and widespread success of Facebook may be seen as largely a result of external factors harnessed by an individual with a unique idea. This is supported by a widespread perception of the companys fluke success. !lobally" societies became somewhat integrated through the worldwide web and relevant technologies posed opportunities for gathering gathering valuable market information and advertising strategies. This is illustrated by Facebooks main strengths including being a high traffic venue for ads and brand awareness. #n addition" users u sers who pay for items in game play" are willing and able to do so. That is" individuals seem to hav e enough downtime and disposable income to spend on Facebook games. $oreover" $oreove r" while Facebook is not without considerable competition" it remains the choice tool for professional social media users. %ithout the available technology" available information and the willingness to participate in modern society" Facebook probably would not have succeeded. #nternally the company seems to boast a lean structure and a youthful supply of labour. The The average age of executives is under &'" the company was created by a college(age kid and began as a tool for college)university users. This may or may not be conducive to innovative ideas in a rapidly changing technological environment but at the least it is something unique about the company. #n addition a smaller team may reduce resource inefficiencies and act as a b reeding ground for creativity. *ne of the criticisms expressed in this case is regarding the +,*s -on(the( go- philosophy-" that is periodic changes to privacy" features" etc that have the potential to damage the companys reputation. *n the other hand this may be characteristic of a unique strategy. necdotally speaking" every time there is change to Facebook features" social media users are up in arms breeding a discussion about Facebook" away from other o ther social media sites. This may be something to look into. +ontinuous adaptation seems to be a necessary feature of Facebooks strategy for success. ,xpansion into the mobile market" easing user access is an example of strategic investment. Finally" we see that the Facebook brand has recently stepped into advocating for certain social issues including removing censorship restrictions" and promoting universal internet access. These movements may be interpreted interpreted as part of a strategy to ensure future success. uestion 2!
%hich elements of the external and internal environment are beginning to create challenges for Facebook/ Ans"er!
The first element that is creating a challenge for Facebook F acebook is the technological force. s technology is continuously advancing and evolving" this creates great pressure for Facebook to do the same as well. Facebook always needs to come out with updates for smartphone applications" more attractive and efficient desktop layouts and of course n ew features to keep
people interested. #f Facebook were to stay the way it is" people would eventually get bored and move to other social networks" leaving Facebook Fac ebook behind. +onstant innovation is key ke y in today0s business world. nother force that creates challenges for Facebook is the competitive force. This one is probably one of the biggest factors as there are now so many social networks to be a part of. 1eople have Twitter" Tw itter" #nstagram" #nstagram" 1interest" Tumblr" !oogle 2 and the list goes on. ll these accounts are free" quick and easy to sign up for and allow you to connect with friends or complete strangers from around the world. #f Facebook wants to continue to be successful" it has to bring a particular edge that will ensure people want to continue to use it along with their other social media accounts.
Question 3 What force must Facebook work the hardest to address to continue to prosper ?
# believe the force Facebook must work hardest to address in order to continue con tinue to prosper is the societal force. The main component which determines Facebooks Faceboo ks success is the amount of people who are using Facebook and how satisfied those Facebook users are. # feel that currently Facebook does not take enough feedback from it users in terms of updates that could be made to make use more easy and en4oyable for Facebookers. in addition Facebook also needs to work on its company transparency so users can feels more secure that there information is kept private and in the right hands. 5uring the original burst in facebooks popularity it was a new and exciting easily accessible form of social media which many people peop le flocked to because of it originality. Since then many new forms of social media which have raised users expectations6 $any of these new platforms such as snapchat" and #nstagram offer original content while integrating ideas from their users to make and even removing features that the users do not find en4oyable.. en4o yable.. The difference with these other forms of social media which are in high demand and facebook is that they take into consideration and attempt to include ideas from their users while faceboo k will often make changes that users find unnecessary and over o ver complicate things while not really taking into account the idea users have which they feel will improve the site. #n order for facebook to continue to progress it must take in consideration that users have different expectations and integrating their ideas will help continue to build its popularity. nother thing Facebook needs to work on in order to continuing prospering is its company transparency. Something Something that has turned alot of o f people away from facebook the lack of feeling that there information is secure do to indiscretions with the companies privacy policy and having their information sold to companies with out their knowledge . $aking customers more conscious of these things and educating them on how to opt out o ut earlier on or better protect things they want to keep private will will help build more transparency and make make people more trusting and secure in using the site.
Session Two: Session 7 ( #mmigrants 8 9abour ights +ase 5iscussion Question one: The language barrier is the first contributing factor mentioned in the story but language is 4ust a small part of the larger issues immigrant workers face. #n *ntario" the ,S minimum standards are outlined in a poster available on the website: http:))www.labour.gov.on.ca)english)es)pdf)poster.pdf . #t even clearly states that the information is available in multiple languages" which should make the rules readily accessible to workers who do not yet have good" or even any" ,nglish language skills. ;ut the workers will not know of either the rules or their ability to read them in their own languages if these posters are not mandated to be displayed in all workplaces" as has been prescribed by the health and safety guidelines. This is the result of the lack of reinforcement <=a law without reinforcement is futile>? also mentioned. #f the government is not attempting to monitor employers" to ensure that the rules are being followed" it allows for the many gaps in the system =unethical employers> use to create the awful working conditions described and the exploitation of new immigrant workers. This is compounded by the attitudes of the workers themselves fearing repercussions of complaining about poor working conditions. Starting fresh in a new country is scary enough without the added fear of unemployment added to the mix. ll of this is added to the already =unstable labour market"> characteri@ed by increased part time)temporary)contract employment that offers no security" even for long(time residents of +anada. The implication is that immigrant workers have many difficult barriers to face entering and staying in the workforce. t one time" these may have been less insurmountable if new residents were able to find work protected by unions" but the declining numbers of unions is adding more misery to the situation. The protection once offered by the union environment is being replaced a survival of the fittest" =competitive markets> mentality.
2! #o" do $ou t%in& t%is stor$ "ould 'e elained t%rou*% t%e lens o+ eac% o+ t%e +our ersectives discussed in t%is c%ater, %e .eoclassical Persective believes that people and businesses are motivated by self(interest" and thus will make decisions that will maximi@e fulfilment of their personal interests
best interests" as well as the freedom to make their choices" the =invisible hand of the market>
would not allow this. %ork hours are as long as BD hours a week because the employers need more labour in order for their small businesses to succeed in the competitive market. ather than complain about certain employers" the immigrant workers the immigrants0 working conditions will only disrupt the flow of the market and could create harmful results for the general economy
%e Mana*erial Persective believes that employers and employees share the same interest: the success of the business
the employees0 needs" some employers are taking advantage of the immigrants0 and migrants0 lack of knowledge about working rights and entitlements in +anada. *therwise" to improve the immigrants0 labour experience" the Euman esource management of their employers should treat the immigrants fairly" the immigrants should find more considerate employers" or the government should impose lenient laws that can specifically root out the mistreating employers.
%e Industrial Pluralist Persective believes that power is unequal between workers and employers" as employers0 want efficiency from workers while the workers0 want equity from employers. The relationship between a worker and an employer often involves the one holding power)authority on one side and the less(privileged subordinates on the other side. This often results in the workers having less bargaining power to counter unrealistic working terms set out by the employers" even if both share the same interest of the business0s success. Thus an activist government which sets regulations)policies is necessary to guide employers and emplo yees in their working conduct and ensure that wealth is distributed fairly. egarding the immigrants" they should not assume that market forces will balance the conflict between equity and efficiency concerns against un4ust employers.
%e ritical Persective believes that the interests of labour against capitalists" it can distract them from means that can actually challenge capitalists into restructuring their conduct and system
consciousness" etc?. #n regards to the immigrants" it is evident that employers are exploiting immigrants and migrants doing precarious work by assigning them exhausting working conditions resident)citi@en workers. #t is necessary for the immigrants to organi@e unions and collective bargaining" and)or the government to be involved by updating the Temporary Foreign %orker 1rogram. These forceful methods guarantee countering exploitive employers" as the government0s oversight about the working conditions of immigrants and migrants is one of the reasons exploitive employers still exist.
Question three: There are plenty of things that can be done to improve working conditions for the workers mentioned in the story. The biggest one would be to get the people proper education on their rights as +anadian workers. Eave someone in the company or even a social worker" explain what rights these people have instead of allowing them to work with no knowledge of them. These people need to be informed of the +anadian +harter of ights and Freedom" which would help them considerably both in equality rights as well as language rights. They also need to know their Euman ights 9aws" which would provide them information on discrimination" and how it is prohibited on certain grounds. They also need to know the ,mployment ,quity 9egislation" which breaks down the barriers in the workplace for different groups. %hat would also help these people is if their employers were ethical. The government and regulations can only do so much" in the end it0s up to a good employer to act respectively and ethically towards their employees.
SSSI. ! Mana*in* t%e 3or&+orce
Session 3 ( Jicking Eorse +offee +ase 5iscussion Question *ne:
1! Discuss in detail "%ic% elements o+ t%e 'e%avioural sc%ool are 'ein* alied at t%e 4ic&in* #orse o++ee oman$ lement derived +rom lton Matos #uman 7elations Movement!
The #a"t%orne e++ect believes that rather than working conditions" the social interaction between managers and employees has a greater impact on improving the productivity of the employees. t Jicking Eorse +offee" since work is very demanding given the company0s high standards" the owners)managers ,lana osenfeld and 9eo Kohnson go out of their way to get the best work out of their employee. They do this by making the companyLs work atmosphere very laid(back and fun ?" through means like daily stretch breaks and flexible(work hours for workers" catered monthly meetings between workers and the owners" and official fun days for the whole staff like kayaking and holiday celebrations. This is since the owners believe that making the speciali@ed(work environment stress free as possible and the employees feel appreciated and welcomed at the company" will make them more motivated to do their tasks efficiently" compared to unmotivated employees working in boring companies who 4ust demand for work done by the employees.
lements derived +rom Mar$ Par&er Follets o'servations!
sing olla'oration " the owners and employees at Jicking Eorse +offee treat each other as partners" rather than masters and subordinates" and share their ideas and experiences with each other in determining how to move the company forward and embrace new initiatives
lements derived +rom %ester 8arnards t%eor$ o+ r*ani9ations 'ein* Social S$stems: and t%e Modern 8e%avioural Science and Motivation-8ased Persective!
Jicking Eorse +offee also uses an effective ommunication S$stem " which is when managers establish and maintain a communication system with their employees. t Jicking Eorse +offee" the ma4or focus is on timely and consistent communication with employees. That is" it is not 4ust about conveying orders and direction from the owners to the employees" but also to convey information and feedback about the product and its consumers directly from the front(line workers methods when corresponding with their employees. 9astly" the element of Aut%orit$ o+ mana*ement indicates that the manager0s authority over subordinates must be earned" since employees will only follow orders when they understand what the company0s goals are" they understand how their work contributes to reaching the organi@ation0s goals" and they are confident that they will be rewarded from accomplishing these goals. Firstly" at Jicking Eorse +offee the most dedicated and talented employees are hired after they are assured that they will receive an above(average benefit package that includes competitive wages compared to other coffee(retailers offered by the company. fter being hired" the employees are clearly told what the company0s goals are" and how they can individually contribute to Jicking Eorse +offee0s closely(knit team to help to achieve these goals.
Eaving used these elements from the behavioural school" Jicking Eorse +offee won several awards" including two =+anada0s Fastest !rowing +ompanies> awards <7DDH and 7DDB? and four =+anada0s Top Female ,ntrepreneurs> <7DDC" 7DDB" 7DDH and 7DAA?. This is since employee well(being is taken seriously" and something that =the partners live and breathe>" as described b y ;5+ senior consulting manager ;onnie ,lliot.
Question 7: The classical approaches to management are the oldest formali@ed perspectives6 there are three central streams including scientific management" administrative management" and bureaucratic management.
management involves three features: compartmentali@ing and standardi@ing the work" supervising the workers" and motivating the workers. Jicking Eorse has a strong reputation and has been identified as +anada0s top organic fair(trade coffee company
Jicking Eorse +offee has created an environment within their business that motives employees to perform even without strict supervision6 clearly it is a culture that starts at the top with owners osenfeld and Kohnson. !oing into the market as a premium product" osenfeld and Kohnson created brand loyalty through their employees and the work environment they showcased at the flagship cafO for local residents. 9ooking at the +ontingenc y pproach of $anagement" organi@ational si@e plays a crucial part in the success of Jicking Eorse +offee. They have made sure to take care of their employees when it came to benefits and pay" a fundamental reason people choose to work where they do" a benefit that could not be provided if a company was too large. Similarly providing extensive benefit packages to employees and providing pay above the average from any other coffee retailer" Jicking Eorse +offee has an employee(employer relationship that fosters success and high performance.
#t doesn0t stop there however6 the environment at Jicking Eorse +offee is conducive to self( motivation and high performance as seen with Mfun0 days for kayaking or holiday celebrations and catered monthly meetings for the employees. #t is Jicking Eorse0s way of breaking up workers routines" even added stretch breaks to allow workers standing on the front(line to give their body a break. osenfeld and Kohnson have made their employees0 well being a top priority and it seems to being paying huge dividends. This is another aspect of the +ontingency pproach as Jicking Eorse +offee has developed their employees to respond to changing environment" which has been seen from the very beginning when osenfeld and Kohnson would travel months at a time leaving their employees in charge. Eaving an environment that can adapt and change to different situations allows for this style of management to be successful.
#t is clear their management style is more laid back giving employees a greater sense of independence and leadership but that does not stop them from monitoring performance. #n a company that is structured with this level of independence" regular performance reviews is important to evaluate individuals" and the company as a whole" to ensure high performance and efficient productivity. The performance reviews are another way to see how individual employees are working and provide another added push to perform exceptionally. The individual differences aspect of the +ontingency pproach is not necessarily evident within this company however Jicking Eorse +offee creates an environment that people are self(motivated by internal factors but also has motivation due to external factors. s ;onnie ,lliot says" =The commitment to staff well(being and community is not 4ust talk" but something that the p artners live and breathe>.
SSSI. < ! sta'lis%in* t%e Structure o+ 8usiness
Session & ( 1ixar +ase 5iscussio Question one: 1ixar most closely resembles an organic structure. s such" the organi@ation operates with wide divisions of labour" decentrali@ed decision(making" a wide span of control" and a low formali@ation of work roles.
Division of Labour: 5ivision of labour refers to the speciali@ation of subordinates who perform specific roles. #t involves the division of complex tasks into smaller" simpler ones and distributing them among workers. #n the case of 1ixar" the company consists mainly of three ma4or groups:
A. The Technology 5evelopment !roup: ( esponsible for supplying technological equipment)supplies.
7. The +reative 5evelopment !roup: ( esponsible for the creation and animation of stories and characters.
3. The 1roduction !roup: ( esponsible for the coordination of the film making process.
s you can see" the division of labour 1ixar implements in its daily operations are wide in nature. s such" subordinates of 1ixar take on broader roles and responsibilities within their respective groups. The daily routine of workers encompass more task variation and consequently provides more meaning to the work they do. Therefore" employees become more invested in their work which increases worker morale and facilitates creativity)innovation" productivity" and efficiency.
Centralization: The decision(making process is decentrali@ed throughout the 1ixar organi@ation. s previously stated" 1ixar relies on a team(based organi@ational structure. s such" notions of collaboration and coordination are promoted throughout the company. The organi@ation allows each group to work directly with each other with little supervision from higher authorities. This type of team(based approach enables employees to manage themselves and avoid the inefficiencies of a top(down approach to decision(making
Span of Control: gain" 1ixar relies on a team(based approach rather than a top(down structural approach. s such" employees are allowed much more freedom and responsibility as decision( making is decentrali@ed to lower(level employees. Therefore" employees need not to frequently report to higher authorities. #nstead" managerial roles at 1ixar primarily consist of fostering a collaborative and communicative community in which is both vibrant and self(sufficient.
Formalization: 1ixar implements very few rules and regulations on its employees and how they conduct their work. For the most part" workers from their respective groups are able to work freely with each other to generate new ideas and solve problems. $oreover" managers encourage employees to take risks as a means to inspire creativity which is especially important in the film industry.
uestion 2! uestion 2
Descri'e t%e nature o+ Piars =contin*encies> and elain %o" t%e$ in+luence t%e suita'ilit$ o+ Piars structure
+ontingency theory" as # understand it" is there is no perfect way to organi@e and as such the most strategic design for an organi@ation would be one that is able to ad4ust to its internal and external environments. %ith the management approach to contingencies in mind" an adept leader is one that is very cognisant of the natural fluctuations
Jarakowsky" 9." 8 !uriel" G. <7DA'?. The Context of Business: Understandin the Canadian Business !nvironment" Toronto: 1earson +anada.
ueston !
1ixar" because of its product" the animated movie" could easily b e redesigned as a virtual organi@ation. #ts founder has the right mindset" one of an openness for taking risks in business" that could allow for a seamless transition if it were to ad4ust its structure in the following ways:
utsourcin* :
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$oving the work of the technology development group to another company that speciali@es in technological innovations. 1ixar could suggest the type of technology
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they wish to use to the other company and may also benefit from the expertise of outsiders in improving upon those ideas. s with any outsourcing" 1ixar could requests tenders from other companies" potentially finding excellent quality work in all three of its core functions from outside companies" which could result in lower costs. ;ecause of the technological nature of their business" 1ixar has the ability to receive its creative work and even much" if not all" of its production work virtually. ,verything from script ideas being teleconferenced to actors voice work being done remotely can be achieved without the need of having a large building for production or a significant on(site workforce.
.et"or&in* :
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#n the article" it is noted that 1ixars success stems from -collaborations- and a -community thatR is vibrant and healthy.- #t is also mentioned that each of the core groups have a generous amount of autonomy. #f the groups work were to be outsourced" this community notion could still be strengthened in the manner of -keiretsu#- ,d +atmull and his smaller team" acting similar to the -large industrial organi@ation- in the discussion of keiretsu " would be the key element in compiling the technology" creativity" and production into the final product with the aid of its newly assembled network partners.
S%eddin* .oncore Functions :
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The article does not discuss any of the administrative tasks that are undoubtedly a part of 1ixars current structure. et" these matters still need to be dealt with. #f it has not already outsourced business routines" such as payroll" this is something that could easily be shed from the core business structure. #n fact" the paying of vendors from the newly created network could also been done by an accountant6 consultants and)or lawyers could be found to assess vendor bids and contracts. %hile 1ixar relies heavily on the three groups it currently contains in its organi@ation" it may be able to break the groups down further to get a better grasp on what is really a core function within them and what could readily to be outsourced" i.e. software design or computer architectures according to requisite specifications. They may discover that some of the tasks they are currently involved in are" in fact" noncore functions.
Topic ' SSSI. 5! 8usiness Strate*$
Session ' ( 9ululemon +ase 5iscussion
Question *ne: 1) Anal$9e t%e $o*a clot%in* industr$ usin* Mic%ael Porters +ive-+orces model
9ululemon" also known as 9ululemon thletica #nc is a yoga store that sells clothing directed towards athletic apparel. 9ululemon" a popular company produces athletic clothes for yoga" running" working out and related activities and purposes for men and women. They were founded in ancouver in AHHN and expanded the number of stores internationally by 7DDB. Got only is 9ululemon a store for people to shop it" but it has become a community hub" where people are able to discuss physical and healthy active living. #n regards to 9ululemon" $ichael 1orter0s Five(Forces $oel can be used to analy@e the yoga clothing industry environment. The Five(Forces model represents the fact that the relationships between the five focus and firms in the market determine the attractiveness of an industry" specifically the yoga clothing industry. Eere we are able to come to strategic decisions about how to achieve organi@ational goals and how to defend against competition. $ichael 1orter0s Five Forces $odel includes the threat of new entrants" bargaining power of suppliers" bargaining power of customers" threats of substitute products or services and rivalry among existing firms. %reat o+ .e" ntrants
s for the threat of new entrants" entry varies and is on a more moderate level. +ompanies are able to outsource manufacturing overseas to #ndia or +hina" which allows for low cap costing. 5ue to the establishment and growth of 9ululemon" switching costs have become high as loyal customers really 4ust stay and dont tend to go elsewhere. +apital requirements is high as new entrants as importing" exporting" production and brands would all need to be established. Transferring between suppliers is high. ,conomies of scale could make a difference in this industry as manufacturing costs will decrease and there will be low production volume. 1roduct differentiation is high within this sort of industry as they all are building a brand. The more accessible the distribution channels become" the less bargaining power a distributor may have. Gew entrants will require to spend money and increase cost advantage. 8ar*ainin* Po"er o+ Suliers
s for the bargaining power of suppliers" there are numerous suppliers competing for businesses" however" the threat is low as supplying is done overseas. aw materials used are readily available as this gives 9ululemon choice in who they purchase these materials from. ,ssentially" fabrics are easily imitable and trends change. #n addition" many suppliers are a part of the business" where manufacturing costs are cheap in places such as #ndia and +hina. Therefore" suppliers have a low level of bargaining power as materials used by 9ululemon are commodities. 8ar*ainin* Po"er o+ 8u$ers
s for the bargaining power of buyers" 9ululemon0s Mguests0 have a high level of bargaining power due to the low cost of switching" buyers ability to delay the process of purchasing and there are numerous other quality and cheaper brands in the industry that buyers can choose from.
For example" if Gike was providing very similar clothing to that of 9ululemon but at a cheaper cost" customers would likely switch to the company that provides them with a better buy. %reats o+ Su'stitutes
There are many substitutes within the yoga industry environment as you can find many items at a lower cost. #f not 9ululemon" other stores can provide substitute products and services with similar services such as Gike" nder rmour" 4ust to name a few and this threatens the profitability and success of 9ululemon. 7ivalr$ Amon* istin* Firms
s for the threats of substitutes" although the yoga industry environment is its own environment" it can also be considered as part of the sports apparel industry. 1roduct differentiation can play a factor in the products that 9ululemon sell. The industry level competition is extremely high and competitive as companies are always attempting to create an d attract a greater market. For example" although 9ululemon focuses mainly on yoga" there are companies in the market that focus on both yoga apparel and sports apparel or a regular clothing store" with an athletic) yoga line. The lack of differentiation and switching costs plays a factor with 9ululemon given their products" environment" services and overall lifestyle. There are evidently high exit barriers for 9ululemon as they try to not only sell yoga clothes" but sell a particular lifestyle of -taking care of yourself and living a healthy lifestyle-. ivalry and competition here is at a high stake" however" provides consumers a unique aspect to not 4ust a typical store. s represented in the Five Forces nalysis" each plays a contributing factor towards the revenue and success of 9ululemon. uestion 2!
The #* $odel evaluates a company0s strengths compared to those of their competitors by assessing the value they bring to the marketplace" the quality of rareness that they have compared to rival companies" imitability and how long the competitive edge of uniqueness in the marketspace can be maintained and finally organi@ation the combined factors and their maximi@ed potential. 9ululemon meets all of the #* models stipulations and surpasses all competitors time and time again. ?alue! 9ululemon" according to the article" offers a high quality product" yoga and athletic apparel and they target a specific niche market" originally the high price point pushed 9ululemon into the sphere of luxury)status item products" but over the years the company has become synonymous with a near =cult(like> following of loyal customers" from all walks o f life. " =lots of people can make a good product" but this is aR product really specially designed for stretch" fabric and the age of people who do yoga.> who appear to be both knowledgeable and welcoming. 9ululemon"
like no other" creates added value to its product by offering the convenience of free hemming for their pants and also free weekly yoga classes. 7areness! Got only does 9ululemon offer a high quality product" but they also promote a unique customer experience" which is unsurpassed by their competitors. 9ululemon has built its brand around a lifestyle of healthy living and luxury. There are several competitors in the market of yoga apparel" however according to the article6 few have been able to put much of a dent in 9ululemon0s success as a luxury yoga staple. The scarcity model that 9ulu employs works to create a need in the consumer" much like =the pple model> of business" this is reinforced by not having sales generating customer want through creating the illusion of prestige as not everyone can afford to purchase a pair of athletic pants that cost between UBN(UA7N. =Typically" yoga pants range from UB' to UA7N" when similar products can be found at *ld Gavy or the !ap for under U3D.>
ueston ! Discuss "%ic% o+ t%e t%ree &inds o+ 'usiness-level strate*ies $ou t%in& @ululemon is emlo$in* or s%ould emlo$,
9ululemon has emerged as a clothing giant in a short period of time by heavily focusing on their product and their strategy. 9ululemon success is highly depended on its athletic and workout products through their focus business strategy. Through their cost strategy to be competitive with its competitors like Gike" didas and 1uma" 9ululemon has focused its target market to be amongst athletes and better. From its focused business strategy to the organi@ation0s success in a product differentiation business strategy" 9ululemon has perceived value in its products like yoga pants and other fitness
apparels for women as being their more focused and targeted market. ,ven though" lululemon0s does cover all age ranges and genders" but lululemon has concentrated its focus to be a better long lasting product and has kept its consumers in a pot of excitement for its new products and innovations. 9ululemon0s success has been based on its consumer0s response and its research via surveys to ensure that their product is different" the product is innovative and the product demands for high quality
MID7M D SSSI. B! Clo'al Forces
Session N ( *il Sands +ase 5iscussion Question one: Clo'ali9ation is identi+ied as a rocess involvin*!
V
olla'oration 'et"een national economies
V
Ceneration o+ an internationall$ uni+ied economic s$stem
V
ansion o+ +lei'ilit$ t%rou*% crossin* - 'orders transactions
V
Cro"t% in investments *lo'all$ creatin* *lo'al +ocus
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S%i+t to"ards increasin* economic interdeendence
Durin* t%is decade: t%e anadian industr$ '$ %as 'een invaded '$ international investors in e++orts to eand transactions across 'orders A *reat eamle is .een Inc 'ein* over o"ered '$ '$ %ina .ational ++s%ore oil oman$ . anada is a *reat roonent o+ t%e eansion into t%e international mar&et and creatin* interdeendence on nations *lo'all$ due to t%em 'ein* art o+ a +ree mar&et n t%e ot%er %and: %ina is art o+ a controlled mar&et "%ic% is under t$rann$ +rom t%eir *overnment creatin* a lesser interdeendence (o"ns .) %inas economic structure %as lead t%em to a num'er t"o consumer ran& internationall$ and due to t%eir oulation t%e %inese also ossess t%e +astest *ro"in* econom$ %e$ otentiall$ could *ro" to t%e lar*est consumer mar&et: and anada +ollo"s closel$ due lacin* in t%e to +or oil reserves %e decision to overta&e .een leads to securit$ +or t%e .ort% American coman$! creatin* sta'ilit$ +or t%e oil mar&et due to %i*% demand In +act: t%e lar*er demand leads to a *reater investment to t%e "or&+orce: creatin* ne" oortunities and return to t%e anadian *overnment! allo"in* elorin* ne" avenues and +uture artners%is %e uni+ication 'et"een t%ese t"o economies %as led to a *reat deal o+ ro+it +or t%e %inese and a *reat deal o+ otential to *ro" t%e eistin* mar&et
In t%e rocess o+ t%e transaction: anada losses a *reat deal o+ control over its natural resources in t%e oil industr$ %e comromise in o"er leads to ne*otiatin* o"er "it% otential +orei*n suitors "it% anada! otentiall$ leadin* to a *reater deal o+ colla'oration internationall$ and com'ination o+ assets to 'ecome a stron*er *lo'al econom$ ur societ$ and 'usiness leaders vie"ed t%is as a tool to stren*t%en eistin* 'usiness relations "it% %ina eandin* t%eir identit$ to 'ot% an imort and eort nation relacement %e revie"ed Investment Act: endorsed '$ t%e anadian *overnment solidi+ies a local +ocus ! +orei*n nations are not allo"ed to urc%ase assets in national resources "it% +e" ecetionall$ circumstances Protectin* t%e local econom$ "%ile +orti+$in* relations%is "it% economic o"ers %ouses *lo'all$ %els to create a more o"er+ul and uni+ied econom$:
uestion t"o!
+G**+ will benefit from the greater access to oil" as they now have people on the ground in the country that has the third largest oil resources in the world. %ith a team in +anada they also have the knowledge and connections required to expand into the rest of Gorth and +entral merica. nfortunately for +G**+" the company is now beholden to +anadian laws in a changing political climate. %ith a new administration" +anada may be enforcing stricter laws regarding the tar sands. %hich may limit how much Gexen can do" and thereby how profitable they are. ll the fifteen plus billion dollars +G**+ has spent on Gexen is under the expectation that they will be able to run it under the current laws. Gexen as a company will benefit hugely from the additional financial resources that will allow them to grow. +G**+ will also bring their leadership expertise and plans to expand all through Gorth and +entral merica. %hich means Gexens reach and potential for profit will grow. Eowever" because Gexen is owned by +G**+" Gexen will not have the freedom it used to. Gexen is now beholden to +G**+s interests" which means that Gexen cannot make a decision that would adversely affect +G**+" such as expanding into +hina. #n regards to +anadian employment" the head quarters for Gexen will remain in +anada" and will become the Gorth and +entral merican headquarters for +G**+s operations. So as +G**+s Gorth merican operations grow there will be more 4obs in +anada" from welders right up to executives. The biggest benefits for the +anadian economy is in securing a long(term stable market for its enormous amount of oil that far surpasses its population. The +anadian ec onomy would also benefit from a strengthened trade relationship with +hina. #n addition" +G**+ will use its financial resources to speed up the development of Gexens oil sands" thereby allowing more opportunities for workers and bringing in more tax revenue for the government. huge in4ection of +hinese money into the +anadian economy occurred when the company was bought from +anadians" who in theory will spend the A' billion dollars they made from the sale in the country. dditional sums of money will enter the country for each of the employees salaries. nfortunately for the +anadian economy" the profits made by Gexen will now be going to +hina
instead of staying in +anada as they had in the past. dditionally" the oil sands will have detrimental effects on the triple bottom line. For example" the tailing ponds could have negative long term health effects on vulnerable populations downstream. %hich could also have monetary consequences through lawsuits" medical bills and damage to +anadas image. +anadian competitors in the industry may benefit slightly in the longterm as there are now policies that will limit future takeovers of foreign state owned companies. $eaning that they will experience less competition than they otherwise would several ye ars down the line. They will be affected adversely because Gexen has significantly more financial power than the company used to. They also plan to expand" which means acquiring land and workers. !iven both are limited resources" this will limit the potential growth for +anadian owned companies. !lobal competitors in the industry will likely not benefit from this takeover. Eowever" as a result of the acquisition the +anadian government put in place policies that would limit takeovers by foreign state owned companies. $eaning that other foreign state owned companies will have a harder time making a +anadian acquisition" which will limit their growth potential. uestion !
Foreign direct investment" as with the ++*+ via Gexen in +anada0s oil industry involves purchase of physical assets" and in this case complete ownership of a company by another country. This entails a certain level of foreign competition" specific to the industry an with a another country0s government taking over a +anadian business. The pros and con s of protecting +anadian business from this kind of takeover seems to be case(specific and depends on the conditions of the purchase. For the +hinese government benefits in F5# in Gexen were the availability of needed resources that +anada could provide. The ++*+ effectively secured access to raw materials in the form of oil for long(term use. For +anada benefits included access to a long(term source of income that could not have been obtained in the limited national market.
+oncerns for +anadians included employment levels wherein the management by a foreign country has the potential to negatively influence the availability of employment for local workers. Gonetheless" benefits to +anadian firms via transfer of knowledge" technolog y and skills related to the investment are evident. 5ue to the foreign takeover" investment was made into extracting and developing a portion of +anada0s resources. $oreover" important new ties were made to an increasingly powerful nation with growing economic clout. et" another concern was the way in which +hina conducts business including issues of social responsibility and promoting democracy. #n the case of Gexxen conditions were made with regards to ensuring continued employment of workers and ethical practice but these conditions would probably need to be evaluated to ensure efficacy" considering the long(term nature of the agreement.
The statement does seem to have some merit in the event that conditions of the takeover are not enacted responsibly and measures are not taken to ensure ongoing concerns of +anadians are not met. ,conomically" +anada ensured a long(term source of income and development of natural
resources but historically we know that economic concerns can be trumped by a variety of issues. +oncerns about the environmental impact of developing our oil sands in +anada for example may not be shared in ;ei4ing. #n closing" some degree of protection should be taken. s we can see some degree of protectionism is evident in this case.
SSSI. E ! Political Forces
Session H ( %ireless Service +ase 5iscussion Question one: %ireless providers in the nited States are several times larger than ma4or +anadian wireless providers. #f allowed to enter the +anadian market" these larger companies will take away market share from +anadian firms making the wireless industry dominated by foreign co mpanies rather than native +anadian companies. This is a form of trade protectionism as it ensures free trade does not harm the +anadian wireless industry. This conflicts with the idea of globali@ations in many wa ys. First" globali@ation promotes the free movement of goods" services" capital and labour. #n this case we are restricting the free movement of services to promote national companies that are able to provide these services at a higher cost compared to global competitors. Second" the restrictions go against the concept of cross border transactions as most of these large companies are based in S" they reduce foreign direct investment in +anada but it does reduce economic interdependence with the S economy. Thirdly" globali@ation argues for integration of world economies through organi@ations such as GFT6 these organi@ations promote free trade for countries within their boundaries.
uestion t"o!
The telecommunication industry has seen a boom globally" and wireless providers have reaped the benefits. #n +anada" the defenders in this market consist of the big three wireless providers( ogers" ;ell and Telus. ntil recently these three firms cornered the market competing only with each other and their subsidiaries. This is slowly changing as globali@ation has a llowed for a few foreign entrants in the +anadian wireless market. This change has prompted the involvement of the federal government to regulate the terms of operation in the wireless market in +anada. This can possess several benefits and threat to both the +anadian market leaders and the foreign competition. #n respect to this case the federal government playing the role of guardian of business will maintain a fair playing field of parties involved. This will mean allowing for the growth of the young industries <%ind mobile" $obilicity and 1ublic mobile?" which otherwise may be difficult when facing three main firms in the market. ogers" ;ell and Telus together control over H&I of the consumer <nderson"7DA3? which makes can create a real challenge for prospecting firm to have a presence in the market . The involvement of the +anadian government in regulating the market" will provide these firms with a fighting chance against the larger competition. This is seen in the federal government0s ruling to allow foreign owned firms with less than ADI of the
market to have no restriction in terms of foreign investment. This ruling will allow for growing companies to reach out to foreign investors" giving them more of a platform to face the competition. nother benefit which come from the government playing the role of the guardian of business is their protection of domestic firms against unfair global competition. The fear here is that the foreign competitors will not only be able to establish their presence in the market but even threaten the shares of domestic firms. Gaturally with business comes competition and it is not uncommon for a younger company to surpass the competition. Eowever" this can serve as an issue if this will mean the +anadian markets are controlled b y foreign owners. Such a threat prompts the +anadian government to establish rules" which will restrict the competition from offering their product at much lower price as a way of monopoli@ing their share. For example" the federal government restricts the large wireless providers
uestion t%ree!
3. %hat are 3 potential benefits)threats to +anada of more multinational wireless carrier companies coming here/ There are benefits and threats to +anada if more multinational wireless carrier companies were to be integrated. %ith only three ma4or wireless carrier companies that are dominating the +anadian industry" consumers do not have much of a choice that offers reasonable prices with better services.
Some benefits to +anada with more multinational wireless carrier companies is that it would lower prices" create competition" and consumer satisfaction. Firstly" if prices are lowered" it would benefit the consumers and there would be more money available to them which would help +anadians with their already high consumer debt. Secondly" +anada needs more competition in order to become more functional. #t leaves +anadians with fewer options because affordable independent cell phone providers cannot effectively reach new customers. The government must initiate a plan to boost competition by offering increased access to wireless licenses. Thirdly" consumers will be satisfied with introducing more alternatives to wireless carrier companies rather than narrowing it down to 4ust three companies. This will give the consumer the chance to research about the companies to figure out which is the best suit for them and what they have been searching for. This will produce customer satisfaction knowing they are able to be with a company they genuinely en4oy and pay fair prices with the competition that has evolved. Some treats proposed to +anada of more multinational wireless carrier companies is the reduction of 4obs" decrease in revenue" and does not always mean reduced prices. Firstly" there may be a reduction of 4obs for +anadians if the new companies decide to migrate to other countries which will mean less 4obs for +anadians. This will create a problem as it will leave families without an income. Secondly" with revenues going down" this can shut down +anadian companies. This can force +anadian companies to go out of business as they would be losing money. Thirdly" not all multinational wireless carrier companies will enter the market with low prices. %hen the new companies enter the market" it may mean new innovation. ,ven if the new companies enter the market with low prices" this does not mean they will be kept at this rate. *nce the company starts introducing itself and gaining consumers" the companies increase their price to create more profit.
Session 10! Societal Forces Sustaina'ilit$
Session AD ( Koe Fresh +ase 5iscussion Question one: +orporate social responsibility <+S? is an organi@ation0s duty to act in a way that not only profits them or fulfills the law" but also with morals and ethics in mind. !enerally" there are four types of responsibilities that society expects a company to take. +ompanies are normally required to follow economic and legal duties" and are usually expected to fulfill ethical responsibilities as well. 1eople also would like for a company to take on philanthropic responsibilities sometimes. #n the case of Koe Fresh in 7DA3" +S was definitely an issue. Koe Fresh was manufacturing clothing in ;angladesh which fulfilled their economic duties" as the labour there is very inexpensive. Technically speaking" they also did not violate any laws or regulations on their part" as the accident that occurred was not handled by them directly. The people that are at fault are the government officials who allowed this dangerous building to
be made and the managers who forced their employees to still go to work even in unsafe conditions. Koe Fresh falls short in the ethical category. ,ven though they are a big company that sometimes cannot look at every single detail" the lives of other people" especially the employees" should be treated with great care. Koe Fresh should make sure that their clothing is being manufactured in a way that is safe for its employees" which obviously was not the case in ;angladesh. ,ven if these people are not paid as much as the average person in a developed country" they should at least be working in an environment that does not put their lives at risk. These people were also working more than twelve hours every single day" which is too much for any person on a regular basis. The company needs to step in and make sure their employees are being treated fairly. fter the incident" it seemed like Koe Fresh was trying to appeal to society by completing some philanthropic duties. fter the ;angladesh incident" 9oblaw sent some important members of the organi@ation to personally address the situation and compensate the families of those who lost someone because of this accident. They even 4oined a pact with other well(known retailers to improve and ensure safety in textile factories throughout ;angladesh" hopefully preventing another accident of this kind from occurring
uestion t"o!
%hy should Koe Fresh be expected to act in accordance with societal expectations ;usinesses like Koe Fresh are created to serve public need and Koe Fresh should act in accordance with societal expectations to ensure that their legitimacy will not be reduced in the public eye. The success Koe Fresh is largely dependant on its acceptance by society and therefore it has an obligation not to violate societal beliefs regarding socially responsible behaviour. Koe Freshs actions should also be in accordance with societal expectations in order to reconcile the intentions and results of capitalism. #n terms of ;angladesh" Koe Fresh claimed that they need to do business in the country because the low costs of wages in ;angladesh allow 4oe fresh to keep their price points low enabling them to be competitive in the marketplace. This sort of reasoning is a direct result of capitalism where impoverished workers in third world countries with high government corruption and neglect" are forced to suffer for the capital gains of stronger and wealthier gains of multinational companies due to economic need. Koe Fresh should be expected to act in accordance with societal expectations in order to avoid public criticism and av oid more government regulation or involvement. Society expects Koe Fresh to reconcile this callous result of capitalism and compensate for the unnecessary lost of lives all for capital gains. Koe fresh should be expected to act in accordance with societal expectations in order to avoid boycott and riots from its consumers at home. s stated in the article" because of 9oblaws
order to protect the interests of stakeholders who might be negatively affected by the decline of share prices due to the socially irresponsible behaviour of the company. ,ssentially" the socially responsible acts of Koe Fresh enabled the company to be seen as acting in accordance with societal expectations" while maintaining their appearance as a compassionate and caring company in the eyes of the public and employees.
Jarakowsky" 9." 8 !uriel" G. <7DA'?. The +ontext of ;usiness: nderstanding the +anadian ;usiness ,nvironment. Toronto: 1earson +anada. uestion t%ree!
The event in ;angladesh is tragedy and is resulted from unethical behaviour and kind of slavery that working from a poor condition with many hours. Koe Fresh should have considered this outsourcing as part of their extended company and manage them closely by minimal involving at least the working environment conditions. Gow Koe Fresh is faced with U7 billion class action in the *ntario Superior +ourt of 4ustice due to this tragedy incident in ;angladesh. Koe Fresh0s business perspective it was good business strategies decisions for both parties Koe Fresh and ;angladesh0s to have the clothing goods are produced in low costs but can sell in +anada with low costs compare to the +anadian markets" but still Koe Fresh can generate revenue because they were able to subcontract to manufactures in with low costs from ;angladesh. t the same time ;angladesh have chance to grow globally. 9ooking at this nothing is wrong6 in fact this strategy of outsourcing actually helps ;angladesh0s economy as they are still in the stage of developing and highly rely on 4obs produce by international garment industry. s per the article from +anadian business =;angladesh" Koe Fresh and the burden of responsibility> W police has ordered to evacuate the day before due to structural defects" but the factory manager ignored that order and forced to send worker in to the building. This was inhumane decision6 this lead innocent 7CD people got killed. ;angladesh should be used as a strong example to prevent future possible accidents6 Koe Fresh0s obligations6 ( make sure their subcontractors provide safe" decent and sustainable work environment ( 1roducts are manufactured in a social responsible way ( should engage international auditing firm to inspect periodically" and ensure the subcontractors are meet the working conditions and the employee treatments are meet the standards.
SSSI. 11! on+rontin* %an*e
Session AA ( Jodak +ase 5iscussion
Question one: The forces affecting this industry and" certainly acting against Jodak in the case" are linked through the main force" the technological one. 5espite having invented the digital camera" the company chose to continue operating as it always had rather than embracing the new technology. ;ecause of this" as well as =neglectingR to focusPefforts on the youth(driven consumer"> they failed to adapt to society0s demand demonstrates that it still believed the market would be there for the volume of print photos as it previously held. This mindset did not anticipate the force of social media sites that would allow people to share photos instantly and without the need for the expensive inks and papers that its =printer dock CDDD> gradually distancing Jodak as a competitive threat. s the article mentions" Jodak made the mistake of focusing on the printer and did not embrace the opportunity to branch out into other modes of photo(capturing technology. Jodak0s use of developmental changes halted their progress. Their attempt to rebrand" most likely a transitional change" came too late for them to recoup the market shares they once commanded. ltimately" their failure to implement a transformational change when they developed the new technology led to loss of consumer appeal)demand and competition that was too great to meet once they0d decided to make the shift. ,ach step of the way" Jodak faced the economic force of these elements" as seen by the drastic stock price declines. #n the end" factory closures" 4ob losses" and bankruptcy were the inevitable path for the public consumer side of Jodak0s business because of its =inactivityR> in moving with the market shift. Question 7: %hy was it so difficult for Jodak to adapt to change/ %hen the company Jodak first started" back in ANNN" they became successful by being the world0s first flexible roll film. Got long after" in AHDD" they transformed photography into a big sensation with a UA ;rownie camera. ,ver since then the company had continuously made many sensational innovations" such as a slide and motion(picture film" colour p hotography" replacing box cameras etc. $any of their innovations has what allowed the 7Dth century to have high quality and ease of use in filming" whether it was someone professional or an amateur. The company0s innovations was also known and successfully sold globally. Eowever" as the years went by" the revolution in technology has changed dramatically. This was the main cause that made it so difficult for the company Jodak to adapt to change. 5uring the
years of their success" the company had avoided the possibilities of how the digital technology was possible to change faster than they would have predicted. #n AHB'" Jodak invented the digital camera" and although they have made a report on how people will eventually change from using film to digital" they remained inactive to enhance any changes on their other products. ;y the time the company had reali@ed that no one would use film anymore" they gained many competitors that focused on digital cameras" and instead of creating something new" such as improving their own digital camera or even creating a new product to enhance their company" they decided to focus on printing and developing photos. lthough the company Jodak could have been as successful as other companies" they have failed because adapting to change was simply not their ideal strategy. The company has always been comfortable with what they started with" but when the revolution in technology changed drastically" Jodak has failed to transform their products into a better version .
Question three: s we live in a technology era and competing globally" all organi@ations should be aware their surroundings and should be measured what they are facing the external forces such as environment" economic" political" competitive" technology and social sources in order to sustain their business in the competing !lobal market. Jodak0s case is clearly shown as a failure" even though they were dominant for B& years and leading company. Eowever Jodak is far behind in competition and in fact they declared bankruptcy. ccording to the findings" Jodak and many other organi@ations still today encourage single loop of learning" this way of operating resulted in failure. They are more lay back in a sense of innovating new items to the changing market. The new technology0s digital products" this digital revolution made Jodiaks were not able to compete and sustain as all other film related industry are changing to the digital way of producing their products. Jodak0s Single loop behaviour of operating the business and this resulted in failure. ( ( ( ( (
Geglected to fully acknowledge the digital technology posed until it was too late %hile competitors pursued of method of enhancing the digital future of the camera Jodak remained inactive. They launched printer dock CDDD W where now many consumers print their pictures with low costs at the shopper0s drug store or %al($art. This focus of printer was wrong. Geglected focus on youth driven consumer. #ncapable at dealing with innovations
Study suggests that to all organi@ations should try 5ouble loop learning to sustain their business (
+ould more forces on market research so that when they invented the digital camera in AHB'" they should have more focused in the future generation0s needs or might needs.
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They could have used its leading edge technology to develop other items other than focusing on printer oot cause analysis needed !et more involved the market trends" 9isten to the customers im to change the status and promotes innovations. $odifies underlying policies.
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