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CHAPTER 4 – CHANGES IN CANADA’S GLOBAL BUSINESS

4.1 WHAT IS CHANGE?

BUSINESS - the manufacture and/or sale of goods and/or services to meet the needs of a marketplace and to produce a profit.

3 things that cause change in business in both domestic and international marketplace:

NEW TECHNLOGY

NEW PROCESSES

NEW ATTITUDES

NEW TECHNOLOGY

INVENTIONS – totally new products

INNOVATIONS – modifications to an invention that take the inventor’s initial concept even further.

NEW PROCESSES

MANUFACTURING

DISTRIBUTION

INVENTORY CONTROLJust-in-time

Kanban

ACCOUNTING

MARKETINGData Mining

NEW ATTITUDES

As people’s values change, their willingness to purchase certain products changes as well.

These changes could be short term or long term

Quiet often the change is initiated by technology

4.2 THE GLOBAL MARKETPLACE

How have changes in technology, process, and attitude affected or been affected by our relationships with other countries???

We will examine the following industries in canada:

Automobile

Cellular communication

Information

banking

THE AUTOMOTIVE INDUSTRY

Intertwined with the industry in the united states

Canada-United States Automotive Products Agreement in 1965 (Auto Pact)

The switch to smaller cars that are more fuel efficient

CELLULAR COMMUNICATION

TELECOMMUNICATION – communication over a distance, e.g. by telephone, internet, radio, or television.

New businesses

New ways to do business

Global impact

INFORMATION

Acquiring, managing, and using information has brought about significant changes in the way that Canadians do business internationally.

INFORMATION AS A DECISION MAKING TOOL

How information is managed and used after its obtained

INFORMATION

INFORMATION AS A COMMODITY PATENTS COPYRIGHTS LICENSING JOINT VENTURES CONSULTING SERVICES

BANKING

Schedule I

Schedule II

Schedule III

Lending branches

Foreign bank branches

Banking industry deregulation has made doing business with foreign countries much easier.

4.3 The changing workplace

Changing nature of work - Societal shift from hunters to farmers, from farmers to manufacturers, from manufacturers to marketers, and from marketers to information managers.

The impact of globalization New markets abroad Import opportunities Labour: a variable cost The value of information Changes in immigration patterns

THE NEW OFFICEThe home office

The travelling office

The hotel office

An office in another country

4.4 Stay Domestic OR Go International?

No business can be said to operate completely in a domestic arena

Why businesses choose to stay domestic?

Product QualityComplexity, Risk and CostQuality of Life