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 company's fluke success. Globally, societies became somewhat integrated
through the worldwide web and relevant technologies posed opportunities for gathering valuable
market information and advertising strategies. This is illustrated by Facebook's main strengths
including being a high traffic venue for ads and brand awareness. In addition, users who pay for
items in game play, are willing and able to do so. That is, individuals seem to have enough
downtime and disposable income to spend on Facebook games. Moreover, while Facebook is not
without considerable competition, it remains the choice tool for professional social media users.
Without the available technology, available information and the willingness to participate in
modern society, Facebook probably would not have succeeded.
Internally the company seems to boast a lean structure and a youthful supply of labour. The
average age of executives is under 45, 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. In addition a smaller team may reduce resource inefficiencies and act as a breeding
ground for creativity. One of the criticisms expressed in this case is regarding the CEO's "on-thego" philosophy", that is periodic changes to privacy, features, etc that have the potential to
damage the company's reputation. On the other hand this may be characteristic of a unique
strategy. Anecdotally speaking, every time there is change to Facebook features, social media
users are up in arms breeding a discussion about Facebook, away from other social media sites.
This may be something to look into. Continuous adaptation seems to be a necessary feature of
Facebook's strategy for success. Expansion 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 as part of a strategy to
ensure future success.
Question 2:
Which elements of the external and internal environment are beginning to create challenges for
Facebook?
Answer:
The first element that is creating a challenge for Facebook is the technological force. As
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 new features to keep

people interested. If Facebook were to stay the way it is, people would eventually get bored and
move to other social networks, leaving Facebook behind. Constant innovation is key in todays
business world.
Another 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. People have
Twitter, Instagram, Pinterest, Tumblr, Google + and the list goes on. All 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. If 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 ?
I believe the force Facebook must work hardest to address in order to continue to prosper is the
societal force. The main component which determine's Facebook's success is the amount of
people who are using Facebook and how satisfied those Facebook users are. I 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 enjoyable 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.
During the original burst in facebook's popularity it was a new and exciting easily accessible
form of social media which many people flocked to because of it originality. Since then many
new forms of social media which have raised user's expectations; Many of these new platforms
such as snapchat, and Instagram offer original content while integrating ideas from their users to
make and even removing features that the users do not find enjoyable.. 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 facebook will often make
changes that users find unnecessary and over complicate things while not really taking into
account the idea users have which they feel will improve the site. In 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.
Another thing Facebook needs to work on in order to continuing prospering is its company
transparency. Something that has turned alot of 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 . Making customers more
conscious of these things and educating them on how to opt out earlier on or better protect things
they want to keep private will help build more transparency and make people more trusting and
secure in using the site.

Session Two: Session 2 - Immigrants & Labour Rights Case Discussion

Question one:
The language barrier is the first contributing factor mentioned in the story but language is just a
small part of the larger issues immigrant workers face. In Ontario, the ESA minimum standards
are outlined in a poster available on the website:
http://www.labour.gov.on.ca/english/es/pdf/poster.pdf. It 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, English language skills. But 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.
If 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.
All of this is added to the already unstable labour market, characterized by increased part
time/temporary/contract employment that offers no security, even for long-time residents of
Canada. The implication is that immigrant workers have many difficult barriers to face entering
and staying in the workforce. At 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.

Q2: How do you think this story would be explained through the lens of each of the four
perspectives discussed in this chapter?
The Neoclassical Perspective believes that people and businesses are motivated by self-interest,
and thus will make decisions that will maximize fulfilment of their personal interests (higher
profits, job security, etc) and avoid decisions that will not. This is because there is perfect
competition between businesses for the same goods, services and customers at prices equal to the
demand and supply of such necessities. This competitive market will automatically lead
businesses and people to use the most optimal skills to succeed, resulting in the fairest
distribution of wealth. As long as people have sufficient information for knowing what are their

best interests, as well as the freedom to make their choices, the invisible hand of the market (as
termed by Adam Smith in 1776) will lead them to not only fulfil their personal interests but also
the greater public interest (fair wages, job opportunities, etc). Regarding the immigrants, the low
wages, lack of benefits (severance pay, holiday pay, etc) and long work hours are means of
fulfilling the employers needs of surviving in their heavily competitive industries. The number
of nonstandard and precarious workers has increased over the years, and has been accepting
members of the increasing population of immigrants and migrants. So if the employers raise the
wages and pay the additional benefits to such employees who freely join Canadas workforce and
choose to work part-time and switch jobs, they (the employers) will constantly face turnover
costs and dilemmas like hiring fewer workers or replacing them with machinery in order to
maintain cash flow, all of which could harm Canadas economy. While immigrants can easily
find work in small businesses (manicure salons, automobile parts facility, etc), they should not
consider their working conditions harsh, since the invisible hand would not allow this. Work
hours are as long as 70 hours a week because the employers need more labour in order for their
small businesses to succeed in the competitive market. Rather than complain about certain
employers, the immigrant workers (who must have done their research before coming to Canada)
must know about and can move to more satisfactory jobs elsewhere if they want to, as the market
force assures that wages and working conditions will meet their specific interests in one place or
another. Government intervention (the Employment Standards Act, the Temporary Foreign
Worker Program, etc), unions and collective bargaining should not happen, as the markets
themselves will create the fairest results for both employers and employees. Any attempt to
improve the immigrants working conditions will only disrupt the flow of the market and could
create harmful results for the general economy (less hiring, lower income, etc).

The Managerial Perspective believes that employers and employees share the same interest: the
success of the business (obviously for their own purposes, like profit (employers) and job
opportunities (employees)). Thus for a business to succeed, its workers must be productive. This
could only happen if businesses Human Resource managements treat workers fairly and
respectfully, through common means like fair wages, benefits and good working conditions. So it
should be a businesss economical interest to consider and fulfil its employees concerns and
needs. Regarding the immigrants, many of them are choosing part-time jobs in small businesses
(manicure salons, etc) as the easier ways for them to seek livelihood in Canada, rather than
taking long-term jobs which often involves long approval-processes by the Canadian government
(e.g. if not registered properly, a doctor from Pakistan could end up working in a job demanding
less skill like cab driving in Canada, since his knowledge was not confirmed through exams like
the USMLE). If employers do not meet the immigrant and migrant workers specific needs and
improve their working conditions, they will achieve less labour productivity and thus fail in their
businesses. But government intervention, such as the plans to update the Temporary Foreign
Worker Program, should be minimal, since rigid laws will only create unnecessary costs and
unfriendly working relationships for all employers (even those who treat their workers fairly),
like too high of an hourly wage which could decrease business income. Although unions and
collective bargaining will disrupt efforts for improvement by the employers Human Resource
managements, the immigrants can only organize a union to alert the Canadian society and
government if their employers have failed managements. This is since, instead of looking out for

the employees needs, some employers are taking advantage of the immigrants and migrants
lack of knowledge about working rights and entitlements in Canada. Otherwise, to improve the
immigrants labour experience, the Human Resource 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.

The Industrial Pluralist Perspective believes that power is unequal between workers and
employers, as employers want efficiency from workers while the workers 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 businesss success. Thus an activist
government which sets regulations/policies is necessary to guide employers and employees in
their working conduct and ensure that wealth is distributed fairly. Regarding the immigrants,
they should not assume that market forces will balance the conflict between equity and efficiency
concerns (Neoclassical Perspective), nor assume that all employers will accept that treating
employees fairly will benefit businesses (Managerial Perspective). Immigrants and migrants, like
many other workers, are not always aware about their working rights (the Employment Standards
Act, etc), entitlements (out of 119 Chinese immigrants surveyed in the Greater Toronto Area in
2010, 66% did not know about overtime pay, 64% did not know about holiday pay and 45% did
not know about severance pay) and other job opportunities in Canada. Even if they do, they may
not always have the freedom or ease to move to better-paying jobs and more considerate
employers (unlike what the Neoclassical Perspective assumes) due to reasons like family
commitments and location of residence. Rather the immigrants should organize unions and
collective bargaining to promote income equality. Although the Non-standard Employment may
be easier for immigrants to seek livelihood in a new country, this increasing shift away from
long-term, stable jobs is not only promoting economic inequality and lower workers wages, but
also allowing employers to force immigrants to fill in insecure, low-paying jobs where they can
be denied their legal benefits and/or terminated without proper notice. The government should
improve the Temporary Foreign Worker Program, as it will be able to powerfully improve the
working conditions for the immigrants and give them a voice against unjust employers.

The Critical Perspective believes that the interests of labour (workers) and capital
(employers/owners of economic organizations) are always in conflict, as employers (capital)
wish to obtain the maximum amount of effort from workers (labour) at minimal costs while
workers depend on capitalistic systems to fulfill their basic needs (food, shelter, etc). This
perspective was inspired by the Marxist Theory, which believes that capitalistic systems exploit
workers by hiring them at the lowest costs, and are only interested in deriving labour from the
workers, even through the cruellest means. Workers are especially disadvantaged since there are
always more workers than job opportunities. Collective bargaining can marginally help, as
although it can give workers a voice against capitalists, it can distract them from means that
can actually challenge capitalists into restructuring their conduct and system (building class-

consciousness, etc). In regards to the immigrants, it is evident that employers are exploiting
immigrants and migrants doing precarious work by assigning them exhausting working
conditions (10 hours a day throughout each week) and denying them their legal entitlements to
benefits like overtime pay. After making them go through weeks of exhaustion, the employers
terminate these immigrant and migrant workers without a proper notice of termination and
probationary period for the workers to properly plan for their next job, and without paying them
their legal severance pay. The interest of the immigrants, which is to support themselves and
perhaps their families by working permanently or temporarily in Canada, is in conflict with their
employers interest, which is to extract more than enough labour from immigrants since their
lack of knowledge about benefits and working rights in Canada provides an opportunity to raise
business income and dividends for Canadian shareholders and real resident/citizen workers. It
is necessary for the immigrants to organize unions and collective bargaining, and/or the
government to be involved by updating the Temporary Foreign Worker Program. These forceful
methods guarantee countering exploitive employers, as the governments 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 Canadian workers. Have 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 Canadian Charter of Rights and Freedom, which would help
them considerably both in equality rights as well as language rights. They also need to know
their Human Rights Laws, which would provide them information on discrimination, and how it
is prohibited on certain grounds. They also need to know the Employment Equity Legislation,
which breaks down the barriers in the workplace for different groups.
What would also help these people is if their employers were ethical. The government and
regulations can only do so much, in the end its up to a good employer to act respectively and
ethically towards their employees.

SESSION 3 : Managing the Workforce

Session 3 - Kicking Horse Coffee Case Discussion
Question One:

Q1: Discuss in detail which elements of the behavioural school are being applied at the
Kicking Horse Coffee Company.
Element derived from Elton Matos Human Relations Movement:
The Hawthorne effect believes that rather than working conditions, the social interaction
between managers and employees has a greater impact on improving the productivity of the
employees. At Kicking Horse Coffee, since work is very demanding given the companys high
standards, the owners/managers Elana Rosenfeld and Leo Johnson go out of their way to get the
best work out of their employee. They do this by making the company`s work atmosphere very
laid-back and fun (which customers think might seem more suitable to a summer camp than a
multi-million-dollar business), 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 specialized-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 just demand
for work done by the employees.

Elements derived from Mary Parker Follets observations:

Using Collaboration, the owners and employees at Kicking Horse Coffee 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 (improve
customer satisfaction, etc). Employees at Kicking Horse Coffee are not just treated as tools in a
business, but really as the key to business success. Also, owners Rosenfeld and Johnson allow
their workers to decide for themselves on how they conduct their work-activities (obviously in
accordance the companys ethics-code, etc), so to let the workers use their own talents and
comfort-levels to put their individual efforts together into bringing the company forward. This
use of Self-management (whichallows workers to independently decide on how they carry their
own tasks), as well as being on the same page regarding what is the direction of Kicking Horse
Company and having trust built between the managers and workers, also allows employees to be
entrusted with leadership roles while the owners travel to countries like Peru and Mexico to build
relationships with the farmer co-ops who provide the supplies necessary for the company (coffee
beans, etc). But while employees are encouraged to have a certain level of independence in how
they carry out their specialized tasks (roasting coffee beans, etc), the managers occasionally
inspect their employees performances to ensure that efficiency of production and consistent
quality standards are met. This is Coordination, which is when managers coordinate and
harmonize group efforts, and be closely involved with subordinates daily conduct of their work.

Elements derived from Chester Barnards theory of Organizations being Social Systems,
and the Modern Behavioural Science and Motivation-Based Perspective:

Kicking Horse Coffee also uses an effective Communication System, which is when managers
establish and maintain a communication system with their employees. At Kicking Horse Coffee,
the major focus is on timely and consistent communication with employees. That is, it is not just
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 (who work closest with the product) to the managers. This allows the owners to make
sound decisions regarding improving customer service and deciding on new initiatives, based on
first-hand information on customer experience and improvements needed. Also, the element
ofOrganizational objectives believes that managers must establish organizational objectives and
ensure employees are motivated to help reach those objectives. This is similar to the Modern
Behavioural Science and Motivation-Based Perspective, which believes that management
should be more about motivating employees than controlling them. At Kicking Horse Coffee,
since trust and understanding is built between the workers and the owners, the employees are
highly-motivated in their work and usually stay with the business longer than usual. This is since,
besides creating a fun work atmosphere at Kicking Horse Coffee, the owners do not use the
traditional command and control methods when corresponding with their employees. Lastly,
the element of Authority of management indicates that the managers authority over
subordinates must be earned, since employees will only follow orders when they understand
what the companys goals are, they understand how their work contributes to reaching the
organizations goals, and they are confident that they will be rewarded from accomplishing these
goals. Firstly, at Kicking Horse Coffee 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. After being hired,
the employees are clearly told what the companys goals are, and how they can individually
contribute to Kicking Horse Coffees closely-knit team to help to achieve these goals.

Having used these elements from the behavioural school, Kicking Horse Coffee won several
awards, including two Canadas Fastest Growing Companies awards (2009 and 2007) and four
Canadas Top Female Entrepreneurs (2006, 2007, 2009 and 2011). This is since employee
well-being is taken seriously, and something that the partners live and breathe, as described by
BDC senior consulting manager Bonnie Elliot.

Question 2:
The classical approaches to management are the oldest formalized perspectives; there are three
central streams including scientific management, administrative management, and bureaucratic
management. (Karakowsky & Guriel, 2015). The classical approach that applies the best to the
Kicking Horse Coffee case study is that of scientific management.
Scientific management is based on Frederick Taylors philosophy that the fundamental
objective of management is securing the maximum prosperity for the employer coupled with the
maximum prosperity for each employee, (Karakowsky & Guriel, 2015, pg 89). Scientific

management involves three features: compartmentalizing and standardizing the work,

supervising the workers, and motivating the workers. Kicking Horse has a strong reputation and
has been identified as Canadas top organic fair-trade coffee company (Karakowsky & Guriel,
2015). This suggests that the work in Kicking Horse must be compartmentalized and
standardized, resulting in such great results. Moving on, Rosenfeld and Johnson do supervise
their workers; however, they trust their workers in doing their job to the best of their ability.
Throughout the case study, it can be seen that Rosenfeld and Johnson try their best to constantly
motivate their workers. For example, there are many instances in the case study where they have
planned events for their workers to create a stress-free and laid back environment. They do this
by providing workers with flexible hours, stretch breaks, catered meetings, and celebrating
special events (Karakowsky & Guriel, 2015).
Overall, the classical approach of scientific management seems to be the most effective
approach that is seen being used in Kicking Horse. Rosenfeld and Johnson have applied this
approach to their daily routines by compartmentalizing and standardizing work, supervising
workers, and motivating their workers. Their excellency in management has assisted in the
success of Kicking Horse today.
Question 3:
Kicking Horse Coffee has created an environment within their business that motives employees
to perform even without strict supervision; clearly it is a culture that starts at the top with owners
Rosenfeld and Johnson. Going into the market as a premium product, Rosenfeld and Johnson
created brand loyalty through their employees and the work environment they showcased at the
flagship caf for local residents. Looking at the Contingency Approach of Management,
organizational size plays a crucial part in the success of Kicking Horse Coffee. 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, Kicking Horse Coffee has an employee-employer
relationship that fosters success and high performance.
It doesnt stop there however; the environment at Kicking Horse Coffee is conducive to selfmotivation and high performance as seen with fun days for kayaking or holiday celebrations
and catered monthly meetings for the employees. It is Kicking Horses way of breaking up
workers routines, even added stretch breaks to allow workers standing on the front-line to give
their body a break. Rosenfeld and Johnson have made their employees well being a top priority
and it seems to being paying huge dividends. This is another aspect of the Contingency Approach
as Kicking Horse Coffee has developed their employees to respond to changing environment,
which has been seen from the very beginning when Rosenfeld and Johnson would travel months
at a time leaving their employees in charge. Having an environment that can adapt and change to
different situations allows for this style of management to be successful.

It 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. In 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 Contingency Approach is not necessarily evident within this company
however Kicking Horse Coffee creates an environment that people are self-motivated by internal
factors but also has motivation due to external factors. As Bonnie Elliot says, The commitment
to staff well-being and community is not just talk, but something that the partners live and
breathe. (Karakowsky, Guriel, 114) A company like Kicking Horse Coffee shows having a laidback management style can produce highly self-motivated employees as long as the employees
well-being is put first.

SESSION 4 : Establishing the Structure of Business

Session 4 - Pixar Case Discussio
Question one:
Pixar most closely resembles an organic structure. As such, the organization operates with
wide divisions of labour, decentralized decision-making, a wide span of control, and a low
formalization of work roles.

Division of Labour: Division of labour refers to the specialization of subordinates who perform
specific roles. It involves the division of complex tasks into smaller, simpler ones and
distributing them among workers. In the case of Pixar, the company consists mainly of three
major groups:

1. The Technology Development Group:

- Responsible for supplying technological equipment/supplies.

2. The Creative Development Group:

- Responsible for the creation and animation of stories and characters.

3. The Production Group:

- Responsible for the coordination of the film making process.

As you can see, the division of labour Pixar implements in its daily operations are wide in nature.
As such, subordinates of Pixar 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 decentralized throughout the Pixar organization.

As previously stated, Pixar relies on a team-based organizational structure. As such, notions of
collaboration and coordination are promoted throughout the company. The organization 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 (i.e. time). Moreover, the collaborative
efforts of employees promote innovation and creativity within the company.

Span of Control: Again, Pixar relies on a team-based approach rather than a top-down structural
approach. As such, employees are allowed much more freedom and responsibility as decisionmaking is decentralized to lower-level employees. Therefore, employees need not to frequently
report to higher authorities. Instead, managerial roles at Pixar primarily consist of fostering a
collaborative and communicative community in which is both vibrant and self-sufficient.

Formalization: Pixar 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. Moreover, managers encourage
employees to take risks as a means to inspire creativity which is especially important in the film
industry.

Question 2:
Question 2

Describe the nature of Pixars contingencies and explain how they influence the
suitability of Pixars structure.
Contingency theory, as I understand it, is there is no perfect way to organize and as such the most
strategic design for an organization would be one that is able to adjust to its internal and external
environments. With the management approach to contingencies in mind, an adept leader is one
that is very cognisant of the natural fluctuations (of) as well as potential problems that could
arise within the companys environment and insures that their team is flexible enough to be able
adapt.
The way in which Dr. Ed Catmull devised Pixar, followed the core principles of an organic
structure; three highly specialized teams collaborating in an environment of decentralized
authority.
Pixar managed to develop an incredibly successful organizational model through the creation of
a strong collaborative community, by building an environment that promoted creativity,
flexibility and risk-taking, Pixars team is able to foresee any complications and work together to
quickly resolve them.
our job as managers is to create not only a community but a way that that community works
together, so they can solve the problems that are coming up or are unforeseen (Karakowsky
& Guriel, 2015)
The contingencies that have been encouraged at Pixar have served to both strengthen the existing
structural model while at the same time being strengthened by the creative and vibrant organic
business model. The structure and the contingencies at Pixar are perfectly complimentary to one
another and as such have provided an exemplary business model, worthy of emulation.

Karakowsky, L., & Guriel, N. (2015). The Context of Business: Understanding the Canadian
Business Environment. Toronto: Pearson Canada.

Queston 3:
Pixar, because of its product, the animated movie, could easily be redesigned as a virtual
organization. Its 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 adjust its structure in the following ways:
Outsourcing:

Moving the work of the technology development group to another company that
specializes in technological innovations. Pixar could suggest the type of technology

they wish to use to the other company and may also benefit from the expertise of
outsiders in improving upon those ideas.
As with any outsourcing, Pixar 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.
Because of the technological nature of their business, Pixar has the ability to receive its
creative work and even much, if not all, of its production work virtually. Everything
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.

Networking:

In the article, it is noted that Pixar's success stems from "collaborations" and a
"community [that] is vibrant and healthy." It is also mentioned that each of the core
groups have a generous amount of autonomy. If the groups' work were to be
outsourced, this community notion could still be strengthened in the manner of
"keiretsu," Ed Catmull and his smaller team, acting similar to the "large industrial
organization" 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.

Shedding Noncore Functions:

The article does not discuss any of the administrative tasks that are undoubtedly a part
of Pixar's current structure. Yet, these matters still need to be dealt with. If it has not
already outsourced business routines, such as payroll, this is something that could
easily be shed from the core business structure. In fact, the paying of vendors from the
newly created network could also been done by an accountant; consultants and/or
lawyers could be found to assess vendor bids and contracts.
While Pixar relies heavily on the three groups it currently contains in its organization,
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 5
SESSION 5: Business Strategy
Session 5 - Lululemon Case Discussion

Question One:
1.) Analyze the yoga clothing industry using Michael Porters five-forces model.
Lululemon, also known as Lululemon Athletica Inc is a yoga store that sells clothing directed
towards athletic apparel. Lululemon, a popular company produces athletic clothes for yoga,
running, working out and related activities and purposes for men and women. They were
founded in Vancouver in 1998 and expanded the number of stores internationally by 2007. Not
only is Lululemon 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.
In regards to Lululemon, Michael Porters Five-Forces Moel can be used to analyze 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. Here we are able to come to strategic decisions about
how to achieve organizational goals and how to defend against competition. Michael Porters
Five Forces Model 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.
Threat of New Entrants
As for the threat of new entrants, entry varies and is on a more moderate level. Companies are
able to outsource manufacturing overseas to India or China, which allows for low cap costing.
Due to the establishment and growth of Lululemon, switching costs have become high as loyal
customers really just stay and don't tend to go elsewhere. Capital requirements is high as new
entrants as importing, exporting, production and brands would all need to be established.
Transferring between suppliers is high. Economies of scale could make a difference in this
industry as manufacturing costs will decrease and there will be low production volume. Product
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.
New entrants will require to spend money and increase cost advantage.
Bargaining Power of Suppliers
As for the bargaining power of suppliers, there are numerous suppliers competing for businesses,
however, the threat is low as supplying is done overseas. Raw materials used are readily
available as this gives Lululemon choice in who they purchase these materials from. Essentially,
fabrics are easily imitable and trends change. In addition, many suppliers are a part of the
business, where manufacturing costs are cheap in places such as India and China. Therefore,
suppliers have a low level of bargaining power as materials used by Lululemon are commodities.
Bargaining Power of Buyers
As for the bargaining power of buyers, Lululemons guests 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 Nike was providing very similar clothing to that of Lululemon but at a cheaper
cost, customers would likely switch to the company that provides them with a better buy.
Threats of Substitutes
There are many substitutes within the yoga industry environment as you can find many items at a
lower cost. If not Lululemon, other stores can provide substitute products and services with
similar services such as Nike, Under Armour, just to name a few and this threatens the
profitability and success of Lululemon.
Rivalry Among Existing Firms
As 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. Product differentiation can play a
factor in the products that Lululemon sell. The industry level competition is extremely high and
competitive as companies are always attempting to create and attract a greater market. For
example, although Lululemon 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 Lululemon given their
products, environment, services and overall lifestyle. There are evidently high exit barriers for
Lululemon as they try to not only sell yoga clothes, but sell a particular lifestyle of "taking care
of yourself and living a healthy lifestyle". Rivalry and competition here is at a high stake,
however, provides consumers a unique aspect to not just a typical store.
As represented in the Five Forces Analysis, each plays a contributing factor towards the revenue
and success of Lululemon.
Question 2:
The VRIO Model evaluates a companys 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 organization the combined factors and their
maximized potential.
Lululemon meets all of the VRIO models stipulations and surpasses all competitors time and
time again.
Value: Lululemon, 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 Lululemon
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 of life. , lots of
people can make a good product, but this is [a] product really specially designed for stretch,
fabric and the age of people who do yoga. (Karakowsky & Guriel, 2015) The niche brand
focuses on fabricating a community through the promotion of building a healthy lifestyle by
virtue of using their product. The stores create a helpful community-like atmosphere, with
specially trained educators who appear to be both knowledgeable and welcoming. Lululemon,

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.
Rareness: Not only does Lululemon offer a high quality product, but they also promote a unique
customer experience, which is unsurpassed by their competitors. Lululemon 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 article; few have been able to put much of a dent in
Lululemons success as a luxury yoga staple. The scarcity model that Lulu employs works to
create a need in the consumer, much like the Apple 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 $78-$128. Typically, yoga pants
range from $75 to $128, when similar products can be found at Old Navy or the Gap for under
$30. (Karakowsky & Guriel, 2015)
Imitability: As touched upon, above, the iconic brand as a status symbol can be likened to the
apple model and captivates a devoted customer base. Although there are many apparel
companies that can compete with a similar products and even comparable services none of them
have been able to rival the must-have status of Lulu.
Organization: With specialized employee training, a niche product and the promotion of a
community and lifestyle Lululemon has managed to create a customer experience and brand
loyalty that is unsurpassed in the market.

Queston 3:
Discuss which of the three kinds of business-level strategies you think Lululemon is
employing or should employ?

Lululemon has emerged as a clothing giant in a short period of time by heavily focusing on their
product and their strategy. Lululemon 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 Nike, Adidas and Puma, Lululemon has focused its target market to be
amongst athletes (primarily) who are either driven athletes or just for individuals who likes to
keep themselves in shape. Lululemon, as well concentrates on a product differentiation strategy
to perceive value through its product.
Lululemon has attracted consumers through its branding and customer loyalty and have
consistently been on a product differentiation business strategy by supplying its products to be
high quality and superior products in differentiation to its competitors. Consumers are offered a
premium product for a premium price. With a mission statement of Creating components for
people to live longer, healthier, fun lives. (http://www.lululemon.com/about) lululemon has set
up an agenda for its competitors that their product is healthier and better.
From its focused business strategy to the organizations success in a product differentiation
business strategy, Lululemon has perceived value in its products like yoga pants and other fitness

apparels for women as being their more focused and targeted market. Even though, lululemons
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.
Lululemons success has been based on its consumers response and its research via surveys to
ensure that their product is different, the product is innovative and the product demands for high
quality (http://www.lululemon.com/about/history)

MIDTERM DUE
SESSION 8: Global Forces
Session 8 - Oil Sands Case Discussion
Question one:
Globalization is identified as a process involving:

Collaboration between national economies.

Generation of an internationally unified economic system.

Expansion of flexibility through crossing - borders transactions.

Growth in investments globally; creating global focus.

Shift towards increasing economic interdependence

During this decade, the Canadian industry by has been invaded by international investors;
in efforts to expand transactions across borders. A great example is Nexen Inc. being over
powered by by China National Offshore oil Company CNOOC.
Canada is a great proponent of the expansion into the international market and creating
interdependence on nations globally; due to them being part of a free market. On the other
hand, China is part of a controlled market which is under tyranny from their government;
creating a lesser interdependence (owns CNOOC).
Chinas economic structure has lead them to a number two consumer rank internationally
and due to their population; the Chinese also possess the fastest growing economy. They
potentially could grow to the largest consumer market, and Canada follows closely due
placing in the top 3 for oil reserves. The decision to overtake Nexen leads to security for
the North American company: creating stability for the oil market due to high demand. In
fact, the larger demand leads to a greater investment to the workforce, creating new
opportunities and return to the Canadian government: allowing exploring new avenues
and future partnerships. The unification between these two economies has led to a great
deal of profit for the Chinese and a great deal of potential to grow the existing market.

In the process of the transaction, Canada losses a great deal of control over its natural
resources in the oil industry. The compromise in power leads to negotiating power with
potential foreign suitors with Canada: potentially leading to a greater deal of collaboration
internationally and combination of assets to become a stronger global economy. Our
society and business leaders viewed this as a tool to strengthen existing business relations
with China; expanding their identity to both an import and export nation. replacement.
The reviewed Investment Act, endorsed by the Canadian government solidifies a local focus
: foreign nations are not allowed to purchase assets in national resources with few
exceptionally circumstances. Protecting the local economy while fortifying relationships
with economic powers houses globally; helps to create a more powerful and unified
economy,

Question two:
CNOOC 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. With a team in Canada they also have
the knowledge and connections required to expand into the rest of North and Central America.
Unfortunately for CNOOC, the company is now beholden to Canadian laws in a changing
political climate. With a new administration, Canada may be enforcing stricter laws regarding the
tar sands. Which may limit how much Nexen can do, and thereby how profitable they are. All the
fifteen plus billion dollars CNOOC has spent on Nexen is under the expectation that they will be
able to run it under the current laws.
Nexen as a company will benefit hugely from the additional financial resources that will allow
them to grow. CNOOC will also bring their leadership expertise and plans to expand all through
North and Central America. Which means Nexen's reach and potential for profit will grow.
However, because Nexen is owned by CNOOC, Nexen will not have the freedom it used to.
Nexen is now beholden to CNOOC's interests, which means that Nexen cannot make a decision
that would adversely affect CNOOC, such as expanding into China.
In regards to Canadian employment, the head quarters for Nexen will remain in Canada, and will
become the North and Central American headquarters for CNOOC's operations. So as CNOOC's
North American operations grow there will be more jobs in Canada, from welders right up to
executives.
The biggest benefits for the Canadian economy is in securing a long-term stable market for its
enormous amount of oil that far surpasses its population. The Canadian economy would also
benefit from a strengthened trade relationship with China. In addition, CNOOC will use its
financial resources to speed up the development of Nexen's oil sands, thereby allowing more
opportunities for workers and bringing in more tax revenue for the government. A huge injection
of Chinese money into the Canadian economy occurred when the company was bought from
Canadians, who in theory will spend the 15 billion dollars they made from the sale in the
country. Additional sums of money will enter the country for each of the employees salaries.
Unfortunately for the Canadian economy, the profits made by Nexen will now be going to China

instead of staying in Canada as they had in the past. Additionally, 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. Which could also have monetary
consequences through lawsuits, medical bills and damage to Canada's image.
Canadian 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. Meaning that they will
experience less competition than they otherwise would several years down the line. They will be
affected adversely because Nexen has significantly more financial power than the company used
to. They also plan to expand, which means acquiring land and workers. Given both are limited
resources, this will limit the potential growth for Canadian owned companies.
Global competitors in the industry will likely not benefit from this takeover. However, as a result
of the acquisition the Canadian government put in place policies that would limit takeovers by
foreign state owned companies. Meaning that other foreign state owned companies will have a
harder time making a Canadian acquisition, which will limit their growth potential.
Question 3:
Foreign direct investment, as with the CCOC via Nexen in Canadas 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 countrys government taking over a Canadian business. The pros and cons of protecting
Canadian business from this kind of takeover seems to be case-specific and depends on the
conditions of the purchase. For the Chinese government benefits in FDI in Nexen were the
availability of needed resources that Canada could provide. The CCOC effectively secured
access to raw materials in the form of oil for long-term use. For Canada benefits included access
to a long-term source of income that could not have been obtained in the limited national market.

Concerns for Canadians included employment levels wherein the management by a foreign
country has the potential to negatively influence the availability of employment for local
workers. Nonetheless, benefits to Canadian firms via transfer of knowledge, technology and
skills related to the investment are evident. Due to the foreign takeover, investment was made
into extracting and developing a portion of Canadas resources. Moreover, important new ties
were made to an increasingly powerful nation with growing economic clout. Yet, another
concern was the way in which China conducts business including issues of social responsibility
and promoting democracy. In the case of Nexxen 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 Canadians are not
met. Economically, Canada 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.
Concerns about the environmental impact of developing our oil sands in Canada for example
may not be shared in Beijing. In closing, some degree of protection should be taken. As we can
see some degree of protectionism is evident in this case.

SESSION 9 : Political Forces

Session 9 - Wireless Service Case Discussion
Question one:
Wireless providers in the United States are several times larger than major Canadian wireless
providers. If allowed to enter the Canadian market, these larger companies will take away market
share from Canadian firms making the wireless industry dominated by foreign companies rather
than native Canadian companies. This is a form of trade protectionism as it ensures free trade
does not harm the Canadian wireless industry.
This conflicts with the idea of globalizations in many ways. First, globalization promotes the free
movement of goods, services, capital and labour. In 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 US, they reduce foreign
direct investment in Canada but it does reduce economic interdependence with the US economy.
Thirdly, globalization argues for integration of world economies through organizations such as
NAFTA; these organizations promote free trade for countries within their boundaries.
Question two:
The telecommunication industry has seen a boom globally, and wireless providers have reaped
the benefits. In Canada, the defenders in this market consist of the big three wireless providersRogers, Bell and Telus. Until recently these three firms cornered the market competing only with
each other and their subsidiaries. This is slowly changing as globalization has allowed for a few
foreign entrants in the Canadian wireless market. This change has prompted the involvement of
the federal government to regulate the terms of operation in the wireless market in Canada. This
can possess several benefits and threat to both the Canadian market leaders and the foreign
competition.
In 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 (Wind mobile, Mobilicity and Public mobile), which otherwise may be difficult
when facing three main firms in the market. Rogers, Bell and Telus together control over 94% of
the consumer (Anderson,2013) which makes can create a real challenge for prospecting firm to
have a presence in the market . The involvement of the Canadian government in regulating the
market, will provide these firms with a fighting chance against the larger competition. This is
seen in the federal governments ruling to allow foreign owned firms with less than 10% 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. Another 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. Naturally with business comes competition and it is
not uncommon for a younger company to surpass the competition. However, this can serve as an
issue if this will mean the Canadian markets are controlled by foreign owners. Such a threat
prompts the Canadian government to establish rules, which will restrict the competition from
offering their product at much lower price as a way of monopolizing their share. For example,
the federal government restricts the large wireless providers (i.e. Rogers, Telus, Bell) to have
more than 33.3% foreign ownership. Moreover, the governments involvement will not only
protect the interest of the organization, but the employees of the organization as well.
Commonly, foreign owners may relocate their employees from their home countries to the host
countries, which reduces the employment of members of the host country. The Canadian
governments role as a guardian of business will ensure the employment of the Canadians in
these organizations.
The worry now presents its self when questioning if the involvement of government will affect
how organizations can conduct their business. In the same thought, many believe that the
government assuming a guardian of business role can lead away from other issues governments
should be addressing. It is not outrageous to believe that the Canadian governments involvement
in business will only favour a few business and employees- the Canadian ones. Which leads to
the second argument that the government involvement will create for an uneven playing field
that will affect the competitors success. Not to mention, that the involvement of the federal
government is contrary to the ideology of free trade ad open markets. Government interference
works away from the concept of globalization, which is meant to reduce barriers, interconnect
markets and separate government business involvement. Moreover, Government assuming the
guardian on a business role will affect the government as much at the corporations. Government
may lose the support of the public as many dont approve of governments using tax payers
money for issues benefiting corporations more than public. For example, the article begins with
showing the dissatisfaction of the Canadian consumer with their wireless providers. The public
may react unfavourable when seeing the government eager to aid the large corporations, while
creating barriers for options that may be beneficial to the consumer.

Question three:
3. What are 3 potential benefits/threats to Canada of more multinational wireless carrier
companies coming here?
There are benefits and threats to Canada if more multinational wireless carrier companies were to
be integrated. With only three major wireless carrier companies that are dominating the Canadian
industry, consumers do not have much of a choice that offers reasonable prices with better
services.

Some benefits to Canada 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 Canadians with their already high consumer debt. Secondly, Canada needs more
competition in order to become more functional. It leaves Canadians 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 just 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 enjoy and pay fair prices with the competition that has
evolved.
Some treats proposed to Canada of more multinational wireless carrier companies is the
reduction of jobs, decrease in revenue, and does not always mean reduced prices. Firstly, there
may be a reduction of jobs for Canadians if the new companies decide to migrate to other
countries which will mean less jobs for Canadians. This will create a problem as it will leave
families without an income. Secondly, with revenues going down, this can shut down Canadian
companies. This can force Canadian 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. When the new companies enter the market, it may mean new innovation. Even if the new
companies enter the market with low prices, this does not mean they will be kept at this rate.
Once the company starts introducing itself and gaining consumers, the companies increase their
price to create more profit.

Session 10: Societal Forces & Sustainability

Session 10 - Joe Fresh Case Discussion
Question one:
Corporate social responsibility (CSR) is an organizations duty to act in a way that not only
profits them or fulfills the law, but also with morals and ethics in mind. Generally, there are four
types of responsibilities that society expects a company to take. Companies are normally
required to follow economic and legal duties, and are usually expected to fulfill ethical
responsibilities as well. People also would like for a company to take on philanthropic
responsibilities sometimes.
In the case of Joe Fresh in 2013, CSR was definitely an issue.
Joe Fresh was manufacturing clothing in Bangladesh 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.
Joe Fresh falls short in the ethical category. Even 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. Joe 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
Bangladesh. Even 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.
After the incident, it seemed like Joe Fresh was trying to appeal to society by completing
some philanthropic duties. After the Bangladesh incident, Loblaw sent some important members
of the organization to personally address the situation and compensate the families of those who
lost someone because of this accident. They even joined a pact with other well-known retailers to
improve and ensure safety in textile factories throughout Bangladesh, hopefully preventing
another accident of this kind from occurring

Question two:
Why should Joe Fresh be expected to act in accordance with societal expectations
Businesses like Joe Fresh are created to serve public need and Joe Fresh should act in
accordance with societal expectations to ensure that their legitimacy will not be reduced in the
public eye. The success Joe Fresh is largely dependant on its acceptance by society and therefore
it has an obligation not to violate societal beliefs regarding socially responsible behaviour. Joe
Fresh's actions should also be in accordance with societal expectations in order to reconcile the
intentions and results of capitalism. In terms of Bangladesh, Joe Fresh claimed that they need to
do business in the country because the low costs of wages in Bangladesh allow joe 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. Joe Fresh should be expected
to act in accordance with societal expectations in order to avoid public criticism and avoid more
government regulation or involvement. Society expects Joe Fresh to reconcile this callous result
of capitalism and compensate for the unnecessary lost of lives all for capital gains. Joe fresh
should be expected to act in accordance with societal expectations in order to avoid boycott and
riots from its consumers at home. As stated in the article, because of Loblaw's (Joe Fresh parent
company) quick response to send high ranking officials to Bangladesh, promise to compensate of
the families affected by the tragic accident, and commitment to improve the conditions of its
factories in the country, Joe Fresh and other companies alike remained virtually unaffected by
consumer behaviour and where able to keep sales intact after the incident. This quick attempt at
consolation by Loblaw also reflects the need to act in accordance with societal expectations in

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. Essentially, the socially
responsible acts of Joe 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.

Karakowsky, L., & Guriel, N. (2015). The Context of Business: Understanding the Canadian
Business Environment. Toronto: Pearson Canada.
Question three:
The event in Bangladesh is tragedy and is resulted from unethical behaviour and kind of slavery
that working from a poor condition with many hours. Joe 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. Now Joe Fresh is faced with $2 billion class action in
the Ontario Superior Court of justice due to this tragedy incident in Bangladesh.
Joe Freshs business perspective it was good business strategies decisions for both parties Joe
Fresh and Bangladeshs to have the clothing goods are produced in low costs but can sell in
Canada with low costs compare to the Canadian markets, but still Joe Fresh can generate revenue
because they were able to subcontract to manufactures in with low costs from Bangladesh. At the
same time Bangladesh have chance to grow globally.
Looking at this nothing is wrong; in fact this strategy of outsourcing actually helps Bangladeshs
economy as they are still in the stage of developing and highly rely on jobs produce by
international garment industry.
As per the article from Canadian business Bangladesh, Joe Fresh and the burden of
responsibility 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 decision; this lead innocent 260 people got killed. Bangladesh should be used as a
strong example to prevent future possible accidents;
Joe Freshs obligations;
- make sure their subcontractors provide safe, decent and sustainable work environment
- Products 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.

SESSION 11: Confronting Change

Session 11 - Kodak Case Discussion

Question one:
The forces affecting this industry and, certainly acting against Kodak in the case, are
linked through the main force, the technological one. Despite having invented the digital camera,
the company chose to continue operating as it always had rather than embracing the new
technology. Because of this, as well as neglect[ing] to focusefforts on the youth-driven
consumer, they failed to adapt to societys demand (the societal force). There was indeed a
paradigm shift in how consumers began to think in terms of image taking and of the use of image
storage versus developing. This drove interest away from the film-based camera, and as a result,
the film itself. That Kodak tried to switch its focus to printing quality photos 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
6000 (or other similar printers) has historically required.
Other companies did not discount the technology, working to enhance[e] the digital
future, gradually distancing Kodak as a competitive threat. As the article mentions, Kodak made
the mistake of focusing on the printer and did not embrace the opportunity to branch out into
other modes of photo-capturing technology. Kodaks 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.
Ultimately, 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 theyd decided to make the shift. Each step of the way, Kodak faced the economic
force of these elements, as seen by the drastic stock price declines. In the end, factory closures,
job losses, and bankruptcy were the inevitable path for the public consumer side of Kodaks
business because of its inactiv[ity] in moving with the market shift.
Question 2: Why was it so difficult for Kodak to adapt to change?
When the company Kodak first started, back in 1888, they became successful by being the
worlds first flexible roll film. Not long after, in 1900, they transformed photography into a big
sensation with a $1 Brownie camera. Ever since then the company had continuously made many
sensational innovations, such as a slide and motion-picture film, colour photography, replacing
box cameras etc. Many of their innovations has what allowed the 20th century to have high
quality and ease of use in filming, whether it was someone professional or an amateur. The
companys innovations was also known and successfully sold globally.
However, 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 Kodak to adapt to change. During 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.
In 1975, Kodak 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. By the time the company had realized 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.
Although the company Kodak 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, Kodak has failed to transform their products into a better version
.

Question three:
As we live in a technology era and competing globally, all organizations 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 Global market.
Kodaks case is clearly shown as a failure, even though they were dominant for 74 years and
leading company. However Kodak is far behind in competition and in fact they declared
bankruptcy.
According to the findings, Kodak and many other organizations 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 technologys digital products, this digital
revolution made Kodiaks were not able to compete and sustain as all other film related industry
are changing to the digital way of producing their products.
Kodaks Single loop behaviour of operating the business and this resulted in failure.
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Neglected to fully acknowledge the digital technology posed until it was too late
While competitors pursued of method of enhancing the digital future of the camera
Kodak remained inactive.
They launched printer dock 6000 where now many consumers print their pictures
with low costs at the shoppers drug store or Wal-Mart. This focus of printer was wrong.
Neglected focus on youth driven consumer.
Incapable at dealing with innovations

Study suggests that to all organizations should try Double loop learning to sustain their business
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Could more forces on market research so that when they invented the digital camera
in 1975, they should have more focused in the future generations needs or might needs.

They could have used its leading edge technology to develop other items other than
focusing on printer
Root cause analysis needed
Get more involved the market trends,
Listen to the customers
Aim to change the status and promotes innovations.
Modifies underlying policies.