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Lecture 3

Organisational Theory And Analysis

Describe what you see


People from industrialised urban Communities see three dimensional Cube

People from hunter-gatherer communities See two dimensional set of 12 sticks laid on the ground

Ontology
Is the truth out there? How will you know its the truth?
Can we ever be objective? Or neutral?

Ontology is concerned with the nature of phenomena

Realists and Subjectivists


Realists assumption

Reality exists out there independently of our perceptual and cognitive structures
This reality exists waiting to be discovered.

Subjectivist assumption What we perceive is creation of our consciousness and cognition.

We create the reality


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Positivists

Observer can objectively/neutrally understand the reality Allows the scientist to test theory by gathering the data to support or reject the theory Reality can be observed only through our senses otherwise question whether it exists E.g.. UFOs, God, demons
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Interpretivist Analysis
Observer

Observer engages in the phenomena Observer interprets using different cultural and linguistic tools. That carry social biases based upon background. Oberserver cannot be passive receiver of information.

Implications
Positivist or Interpretivist approach there is no right or wrong answer- just perspectives Appreciate and acknowledge strengths and limits of each approach

Epistemology
What distinguishes true (adequate) knowledge from false (inadequate) knowledge?

The bridge will break if a person walks over it. Is this the truth? How would you know the truth?
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Whose truth?
Employees

Firms WebPages

Newspapers Magazines

Government reports Customers

Academic journals/ books

Implications
Show all your references Try and use neutral/unbiased sources

Triangulate your information if possible


Accept and acknowledge limitations of your data/findings

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SWOT
A strategic tool used for evaluating Strengths, weaknesses, opportunities and threats
Internal
Strengths Weaknesses

Opportunities

External

Threats
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Examples
Strengths and Weaknesses Opportunities and Threats

Resources Staff management Cost Capability Price Quality Brand image

Competition New markets Technology Political Economical

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Porters Five Forces


Power of substitutes
Price performance Buyer inclination to substitute

Threat of entry Barriers to entry


Product Government policy Distribution channels Economies of scale Capital requirements

Competitive rivalry
Industry growth Exit strategy Product differences Costs

Power of buyers
Buyer volume Buyer switching costs Substitute products Backward integration

Power of suppliers
Switching costs Threat of forward integration Impact of inputs on costs

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PESTLE
Political
Tax policy Employment laws Trade restrictions

Economic
Interest rates Exchange rate Inflation

Social
Health/environment concerns Age/gender Population/demography

Technological
Technological advances Automation

Legal
Govt legislation International legal requirements Health and Safety requirements

Environmental
Packaging Fossil fuels Deforestation

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Assignment Requirements
You only need to use one or two of these frameworks Draw two diagrams one for each firm Include your references Avoid ambiguous terms e.g. cost but use more meaningful terms increase in costs due to high inflation Synthesize the factors from these diagrams and summarise in the main report
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