Buss5000 Lecture Note

Only available on StudyMode
  • Download(s) : 70
  • Published : April 15, 2013
Open Document
Text Preview
8/08/2012

BUSS5000 Critical Thinking in Business
Week 2: Business key concepts (1)
Dr Leanne Piggott Director, Business Programs Unit BUSS5000 UoS Coordinator THE UNIVERSITY OF SYDNEY

BUSINESS SCHOOL

Preview of today’s lecture

› What is Business?
- What do all businesses have in common?

› Sustainable Competitive Advantage: the internal dimension - Strategy, structure, behaviour

›Next week
2

What is business?

1

8/08/2012

Wilcannia

› Paul, M. 2012, ‘Wilcannia's only supermarket closes’, ABC Broken Hill, 8 August, viewed 8 August 2012 http://www.abc.net.au/local/stories/2012/08/08/3563078.htm

› Wilcannia's only supermarket (AGL) closed suddenly on Monday following the visit of the NSW Fair Trading Minister Anthony Roberts. › Roberts was ‘disturbed and alarmed by high prices at the food store’. - Lack of competition is small, remote communities

› Impact on the community: feeling ‘vulnerable’ due to fear of town running out of food and other basic supplies; need to drive long distances for alternative store. 5

Wilcannia Arts

Wilcannia Arts

2

8/08/2012

From micro to global

Small business: somewhere in between

›The importance of small business
-An Australian case study:
- Over 96% of all businesses in Australia
- Almost 2 million in Australia

- Provide some 50% employment

8

Value of small vs. large business

9

3

8/08/2012

Applying a critical lens to …

From this week’s reading (Wetherly and Otter 2011, p. 6)

Working towards a definition

›Business is: -‘Any activity that seeks to provide goods and services to others while operating at a profit’ (Nickels, McHugh and McHugh 2010, p. 14).
11

Business model
Total returns on assets must exceed cost of capital required to finance assets

RETURNS

Debt

ASSETS
REINVESTMENT

Equity

4

8/08/2012

Broadening our definition

›Transformation of inputs into outputs to produce goods and services that meet needs and wants in society [adapted from Wetherly and Otter 2011]
For-profit businesses Private sector Types of business activity Public sector Not-for-profit organisations Government organisations 13

From last week

›The changing nature of society has brought with it changing attitudes to business: - The role of business in society
- GFC

- Its responsibility to society and the environment
- Climate - Resources (energy; food; water) - Corporate social responsibility and sustainability (CSRS) 14

Working definition of CSR

Corporate social responsibility (CSR) is the notion that businesses have an obligation to society to take into account not just their economic impact but also their social and environmental impact. - Need, therefore, for business to integrate social objectives and business goals

5

8/08/2012

HOW?

Balance profits and social objectives

16

Balance profits and social objectives

Costs

Revenues

How to balance profits and social objectives
Stronger links to the community

Innovation

Efficiency
Strategic CSR and Sustainability

18

6

8/08/2012

Need to be thinking about this along all stages of the business cycle Large MATURITY REVIVAL

GROWTH
Size Complexity

DECLINE

BIRTH Small Younger Organisation age Older

Miller, D. and Friesen, P., (1984). 'A Longitudinal Study of the Corporate Life Cycle'. Management Science, 30 (10):1161-1183

To ensure success at ever stage of the journey, what do ALL businesses have in common?

20

How?

›Outperforming your competitors over the long run ›How can this be done?

21

7

8/08/2012

Strategy, Structure, Behaviour

Strategy

Structure

Behaviour

What is our game plan, and why?
Competitive Advantage

What configuration / shape best allows us to pursue the objectives defined in our “game plan”?

WHAT?

What incentives should we put in place to align the interests of individuals / units with the goals of the organisation?

What...
tracking img