Session 1:

Exploring Canadian
Business:
A Critical Approach
What are the Major Challenges Facing Business?

Reading:
Karakowsky & Guriel, Chapter 1
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Learning Objectives
1. Identify the key internal forces that shape any
business.
2. Identify the forces that compose the specific
and general environments of organizations.
3. Discuss the nature of the external forces
confronting organizations.
4. Explain the importance of each of the external
forces within the Canadian business context.

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The Internal Context of Business
• Labour
• Leadership
• Structure
• Strategy

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The External Environment of Business

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The External Environment of Business
Specific Environment
 Customers
 Suppliers
 Competitors
 Unions
 Government
 Local Public
 Creditors
 Distributors

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The External Environment of Business
General Environment
Six Forces
 Political forces
 Economic forces
 Technological forces
 Societal forces
 Competitive forces
 Global forces

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The External Environment of Business:
Political
 Country stability
 Laws and regulations
 Taxes
 Trade relationships (e.g. NAFTA)
 Environmental fees
 Business Incentives
 Crown corporations
 Deregulation/privatization
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The External Environment of Business:
Economic
 What is the state of the economy?
 Recession or growth
 Interest rates
 Currency rate
 Unemployment
 Inflation
 National debt

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The External Environment of Business:
Technological
 How is changing technology impacting
or changing business?
 Work approaches (e.g. video conferencing)
 Equipment (e.g. manufacturing)
 Electronics (e.g. smartphones, tablets)
 Telecommunications (e.g. internet, phone service)
 Processing systems ( e.g. data processing systems)

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The External Environment of Business:
Societal
Customs, attitudes, values and
ethics
Demographics
Consumer preferences

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The External Environment of Business:
Competitive
How competitive is your industry?
Who are your competitors?
What type of competition does
your industry operate in?

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The External Environment of Business:
Global
Includes all the other five forces
but in an international context:
 Political
 Economics
 Technological
 Societal
 Competitive
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 Think-Pair-Share:
What are the competitive forces
affecting Walmart in Canada?

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 Think-Pair-Share:
Walmart’s 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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Questions and Answers?

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