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LOVELY PROFESSIONAL UNIVERSITY Department of Management
MBA(HONS.)
HOMEWORK-I MGT554: BUSINESS ENVIRONMENT (Topic- PESTEL analysis of CANADA)
Submitted to: Harsha H.N L.H.S.B.
Submitted byVivek Dilawari RQ1002A18
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Name Canada (for conventional and legal use; "Dominion of Canada" remains legal but rarely used) Type of government Westminster style federal parliamentary federal parliamentary democracy within a constitutional monarchy. Capital Ottawa, Ontario. Administrative divisions Ten Ten prov provin ince cess and and thre threee terr territ itori ories es:: Alber Alberta ta,, Brit Britis ish h Colu Columb mbia ia,, Mani Manito toba ba,, New Brunswick, Brunswick, Newfoundland Newfoundland and Labrador, Labrador, Northwest Northwest Territori Territories, es, Nova Scotia, Scotia, Nunavut, Nunavut, Ontario, Prince Edward Island, Quebec, Saskatchewan, Yukon. National holiday Canada Day, July 1. Constitution Westminster system, based on unwritten conventions and written legislation. Suffrage Citizens aged 18 years or older. Only two adult citizens in Canada cannot vote: the Chief Electoral Officer, and the Deputy Chief Electoral Officer. The Governor General is eligible to vote, but abstains due to constitutional convention. Participation in international organizations Australia Group, Commonwealth of Nations, G-8 G-8,, G-10 G-10,, IBRD, IMF IMF,, Interpol, Kyoto Protocol, NAFTA, North American Aerospace Defense Command, UN UN,, UN Security Council (prior/temporary), UNCTAD, UNESCO, WHO. Description of national of national flag A red maple leaf centered on a Canadian pale: three vertical bands of red (hoist side), white (double width, square), and red, with a length twice that of its height. Head of state Elizabeth II, Queen of Canada (since February 6, 1952). Viceroy David Lloyd Johnston, Governor General of Canada (since October 1, 2010). Head of government Prime Minister Stephen Harper (since February 6, 2006). Elections The monarchy is hereditary. The Governor General is appointed by the monarch on the advi advice ce of the the Prim Primee Mini Minist ster er for for a non non-s -spe peci cifi ficc term term,, thou though gh it is trad tradit itio iona nall lly y approximately five years. Following legislative elections, the leader of the majority party in the House of Commons is usually designated by the Governor General to become Prime Minister.
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POLITICAL ASPECT OF THE COUNTRY: Type Type of Governm Government ent:: Parli Parliame amenta ntary ry democr democracy acy and a federa federall system system of parlia parliamen mentar tary y government with strong democratic traditions. Canada has a multi-party system in which many of the country's legislative practices derive from the the unwr unwrit itte ten n conve convent ntio ions ns of and and prec preced eden ents ts set set by the the Unit United ed King Kingdom dom's 's West Westmi mins nste ter r Parliament. Canada Canada has evolved evolved variat variation ions: s: party party discip disciplin linee in Canada Canada is strong stronger er than than in the United United Kingdom and more parliamentary votes are considered motions of confidence, which tends to dimi dimini nish sh the the role role of nonnon-Ca Cabi binet net Memb Member erss of Parli Parliam ament ent (MPs (MPs). ). Such Such memb member ers, s, in the the government government caucus, and junior or lower-prof lower-profile ile members of opposition opposition caucuses, are known as backbenchers . The two dominant political parties in Canada at present are, the Conservative Party of Canada and and the the Liber Liberal al Party Party of Canad Canada, a, but but smal smalle lerr part partie iess such such as the the soci social al democ democra rati ticc New New Democratic Party, and the Green Party of Canada can exert their own influence over the political process. Liberalism has generated supporters and adversaries from the time the second Prime Minister of Canada, Alexander Mackenzie , became a member of the Liberal Party all the way up until today, where Liberalism continues to dominate the House Ho use of Commons. Cabinet Ministers Ministers (usually (usually around thirty) thirty) chosen by the Prime Minister Minister and appointed appointed by the Governor Genera Generall to lead lead variou variouss minist ministrie riess and agencie agencies, s, genera generally lly with with region regional al repres represent entati ation. on. Traditionally most, if not all, cabinet ministers will be members of the leader's own party in the House of Commons (see Cabinet of Canada); however this is not legally or constitutionally mandated, and occasionally the Prime Minister will appoint a cabinet minister from another party.
ECONOMICAL ASPECT OF THE COUNTRY: One of the wealthiest nations of the world, Canada is a member of the Organization of the Economic Cooperation and Development (OECD) and the G-8. Canada’s economy is dominated by the service sector. One of the few nations in the world to be a net exporter of energy, Canada finds its place amongst the top ten trading nations in the world. Cana Canadi dian an infl inflat atio ion n rate rate rose rose less less than than expec expecte ted d in Decem Decembe ber, r, endi ending ng the the year year at 2.4% 2.4% January 25, 2011
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Canadian inflation rate ended 2010 at 2.4%, shy of market expectations for a 2.5% increase although higher than the 2.0% recorded in November. The Bank of Canada's measure of core inflation also moved higher in December to 1.5% relative to a year earlier from 1.4% in November. Market forecasts were for the core rate to rise to 1.6%. Nearly 70% of Canada’s Gross Domestic Product (GDP) is contributed by its service sector, whic which h empl employ oyss over over 75% of the the coun countr try’ y’ss popul populat atio ion. n. Th Thee count country ry’s ’s agri agricul cultu ture re sect sector or contributes only 2% of the GDP, employing a similar proportion of its people. The North American nation’s industry contributes nearly 28% of its GDP, while employing around 27% of its population. The country’s services segment includes retail, communication, real estate, financial services, health and education entertainment, technology and tourism. A large portion of the country’s natural resources, including oil, gold, nickel and uranium and agricultural products like wheat and other grains, are exported to the US, Europe and East Asia. Canada resembles the US in its market oriented economic system, pattern of production and affluent living standards. The impressive growth of Canada’s manufacturing, mining and service segments since World War II have transformed the North American nation from an agrarian economy to one with a highly industrial and urban economic structure. Low labor costs and a comprehensive healthcare and social security system have attracted automobile majors from the US and Japan to set up manufacturing facilities in Canada. Canada’s trade and economic integration with the United States has witnessed a dramatic increase, following the signing of the 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA). The US is Canada’s largest trading partner, partner, besides being its largest largest foreign foreign investor investor through investment investmentss in mining, mining, smelting, smelting, petroleum, chemical and machinery segments. This has linked the Canadian economic policy even more to the United States. Even a minor change in the US interest rates has repercussions in Canada. One important distinction between the economic structures of Canada and the US is that the former former is a net exporter exporter of commoditie commoditiess while the latter is a net importer. Canada’s banking banking segment is also quite conservative in comparison to the United States.
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SOCIAL ASPECT OF COUNTRY: Income
The average family income in 2000 was $66,160; Top 20% of families receive 43.6% of the income, while the bottom 20% receives only 5.2% of the income. This level of inequality has been maintained for 45 years. Clearly, Canada has less income disparity than the United States Schooling
Education is an important determinant of labor force participation, occupation and income, and it is highly highly valued valued in Canada Canada and other other indust industria riall societ societies ies.. Althou Although gh educati education on is general generally ly conceived to be a right, there has not always been equal participation by women. Lately, women have completed more schooling than men. Gender
Women earn less income, accumulate less wealth and enjoy less occupational prestige than men. SOCIAL CLASSES IN CANADA The Upper 3 to 5% of Canadians fall Much of their wealth is inherited, their children go into this class. to private schools and they exercise great power in Class occupat occupation ional al posit position ions. s. Althoug Although h this this group group has historically been primarily of British origin, it is now more widely distributed. One percent belongs to an Primarily of "old money". Upperupper-upper level uppers distinguished Loweruppers
The remaining 2-4% falls Depend more on earnings than inherited wealth. into the lower-upper level and
The Middl The iddlee Class
Rough Roughly ly 40-5 40-50% 0% of the the Because of its size it has tremendous influence on Canadian Canadian population population falls falls pat patte tern rnss of Nort North h Amer Americ ican an cult cultur ure. e. Th Ther eree is into this category. considerable racial and ethnic diversity in this class and it is not characterized by exclusiveness and familiarity. The top half of this category is termed the "upper-middle" class with family incomes of $50,000 to $100,000 earned from upper managerial or professional fields. The rest of the
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middle class (average middles) typically work in less prestigious white-collar occupations or highly skilled blue-collar jobs. According to the Social Diversity, the middle class dominate the Calgary Stampede. Have lower lower income incomess than than the middle middle-cl -class ass and The Working This class comprises about Have one-third of the population virt virtua uall lly y no accu accumu mula late ted d weal wealth th.. Th Thei eirr jobs jobs Class provide less personal satisfaction. The Lower The remaining 20% of our In 2001 roughly 15% of the Canadian population population is identified as was labeled as poor. Many are supported entirely Class the lower class. by welfare payments while others are among the "working poor" whose incomes are insufficient to cover necessities like food, shelter, and clothing. POVERTY IN CANADA
Approximately 4.4 million Canadians live below the "poverty line," that point below which people spend approximately 55% of pre-tax income on food, clothing, and shelter. A recent United Nations report has criticized Canada for making no measurable progress in alleviating poverty. A "wealthy" society finds 2 million people regularly making use of food banks and soup kitchens. Children Children are more likely to be poor than any other age group. 15.6% of people under the age of eighteen are officially classified as poor. Canada is on average very low but improves over time as they acculturate to Canadian society. The poverty rate for the elderly has been declining but as the boomers retires; we will see a rise in the absolute number of elderly poor.
TECHNOLOGICAL TECHNOLOGICAL ASPECT Internet
The internet becomes an important source of information, marked by the popularity of such sites as Wikipedia and Google Earth. Many articles have been contributed to both the English and French language versions of Wikipedia by Canadians and many of these relate to important aspects of Canadian life. There are thousands of Canadians who use the service every day in both English and French. Google Earth, a virtual globe, is an on-line feature offered by Google since 2005. It provides aerial views of the earth, including Canada and is viewed by thousands of web users every day including many Canadians. Another internet information service, a telephone directory, Canada 411.ca has become very popular since introduced in recent years, so much so
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that the delivery of the residential paper telephone book which was introduced to Canada in 1878, will cease in major cities in 2010. Digital Communication / HD TV (Delivery)
Two Toronto-based companies, Sirius Canada and XM Canada introduced direct-to-home/car, digi digita tall sate satell llit itee radi radio o serv servic icee in Dece Decemb mber er 200 2005 5 and and by 200 2008 8 had had 750 750,0 ,000 00 and and 400,0 400,000 00 subscr subscribe ibers rs respec respectiv tively ely.. In 1999 Telesa Telesatt launche launched d the first first of four four Nimiq Nimiq direct direct broadc broadcast ast satellites which provide the space-based satellite transmitters for these services. In 2003 Bell Bell Canada Canada introd introduce uced d an improv improved ed speech speech recogn recogniti ition on syste system m for its 310-2355 310-2355 customer routing service in Ontario. Bell Canada users speak with the programme through "Emily" a young female-sounding artificial voice. In 2005, Skype, a voice-and-moving-pictureover-internet technology became available to users around the world, including Canadians. The technique, which bypasses the traditional telephone network, allows people to use the internet as a type of telephone and to both talk to and see each other during calls. It is used mainly for longdistance communication. Digital Courts
The University of Montreal has recently experimented with ways to improve the administration of justice by creating a digital court room in which mock trials are held using modern technology to speed the proceedings. The "courtroom" has facilities for filing documents electronically. Witnesses Witnesses can testify testify by video link or holographic holographic ally from a remote remote location. location. Documents can be served on parties through social media. According to those involved with the project, barriers to its application in real courtroom settings are not technological but rather emotional, with judges and lawyers being resistant to change.
ENVIRONMENTAL ASPECT OF THE COUNTRY: Environment Environment Canada (EC) , legally incorporated as the Department of the Environment under the Department of the Environment Act (R.S., 1985, c. E-10), is the department of the Government of Canada with responsibility for coordinating environmental policies and programs as well as preserving and enhancing the natural environment and renewable resources.
Duties includes (a) the preservation and enhancement of the quality of the natural environment, including water, air and soil quality; (b) renewable resources, including migratory birds and other non-domestic flora and fauna; (c) water; (d) meteorology; (e) the enforcement of any rules or regulations made
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by the International Joint Commission; and (f) the coordination of the policies and programs of the Government of Canada respecting the preservation and enhancement of the quality of the natural environment. Under the Canadian Environmental Protection Act (R.S., 1999, c. 33), Environment Canada became the lead federal department to ensure the clean up hazardous waste and oil spills. The department is also responsible for international environmental issues (e.g., Canada-USA air issues). Under the Constitution of Canada, responsibility for environmental management in Canada is a shared responsibility between the federal government and provincial/territorial governments. For example, provincial governments have primary authority for resource management including permitting industrial waste discharges (e.g., to the air). The federal government is responsible for the manage management ment of toxic toxic substa substance ncess in the countr country y (e.g., (e.g., benzene benzene). ). Enviro Environme nment nt Canada Canada provides stewardship of the Environmental Choice Program, which provides consumers with an eco-labelin eco-labeling g for products manufactured manufactured within within Canada or services services that meet international international label standards of (GEN) Global Eco labeling Network. Enviro Environme nment nt Canada Canada continu continues es (2005(2005-pre presen sent) t) to undergo undergo a struct structura urall transf transform ormati ation on to centralize authority and decision-making, and to standardize policy implementation.
LEGAL ASPECT OF COUNTRY The Canadian legal system has its foundation in the British common law system, inherited from being a former colony of the United Kingdom and later a member of the Commonwealth of Nations. Quebec, however, still retains a civil system for issues of private law. Both legal systems are subject to the Constitution of Canada. Legal structure of the country consists of Legal traditions which include 2 main and some other areas of laws: Main laws:
Common law and Civil Law Others Areas of law
Aborig Aborigina inall Law, Law, Admin Administr istrative ative Law Law,, Ci Civi vill an and d Hum uman an Ri Righ ghts ts La Law w, Con Contra tract ct Law Law,, Constitutional Law, Law, Copyright Law, Law, Criminal law, law, Evidence Law, Law, Family Law, Law, Immigration and Refugee Law, Law, Labor and Employment Law, Law, Patent Law, Law, Procedu Procedural ral law law,, Property Law, Law, Tort Law,, Trade-mark Law Law
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Common law
All provinces and territories within Canada, excluding Quebec, follow the common law legal tradition. Equally, courts have power under the provincial Judicature Acts to apply equity. Only the Supreme Court of Canada has authority to bind all courts in the country with a single ruling. The busier courts, such as the Court of Appeal for Ontario, for example, are often looked to for guidance on many local matters of law outside the province, especially in matters such as evidence and criminal law. Due to Canada’s historical connection with the United Kingdom, decisions of the House of Lords before 1867 are technically still binding on Canada unless they have been overturned by the Supreme Court of Canada, and Canada is still bound by the decisions of the Privy Council before the abolishment of appeals to that entity in 1949. Criminal offences are found within the Criminal Code of Canada or other federal/provincial laws, with the exception that contempt of court is the only remaining common law offence in Canada. Civil Law
For historical reasons, Quebec has a hybrid legal system. Private law follows the civil law tradition, originally expressed in the Coutume de Paris as it applied in what was then New France. Today, the jus commune of Quebec is codified in the Civil Code of Quebec. As for public law, it was made that of the conquering British nation after the fall of New France in 1760, which is the common law. It is important to note that the distinction between civil law and common law is not based on the division of powers set out in the Constitution Act, 1867. Therefore, legislation enacted by the provincial legislature in matters of public law, such as the Code of Penal Procedure, should be interpreted following the common law tradition. Likewise, legislation enacted by the federal Parliament in matters of private law, such as the Divorce Act, is to be interpreted following the civil law tradition and in harmony with the Civil Cod e of Quebec.
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REFERENCES:http://en.wikipedia.org/wiki/Law_of_Canada January, 2011 http://en.wikipedia.org/wiki/Politics_in_Canada January, 2011 http://wps.prenhall.com/ca_ph_macionis_sociology_5/23/6031/1544106.cw/index.html January, 2011 http://en.wikipedia.org/wiki/Law_of_Canada January, 2011
