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LOVELY PROFESSIONAL UNIVERSITY


Department of Management
MBA(HONS.)

HOMEWORK-I
MGT554: BUSINESS ENVIRONMENT
(Topic- PESTEL analysis of CANADA)

Submitted to:
Harsha H.N
L.H.S.B.

Submitted by-
Vivek Dilawari
RQ1002A18
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Name
Canada (for conventional and legal use; "Dominion of Canada" remains legal but rarely
used)
Type of government
Westminster style federal parliamentary democracy within a constitutional monarchy.
Capital
Ottawa, Ontario.
Administrative divisions
Ten provinces and three territories: Alberta, British Columbia, Manitoba, New
Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut,
Ontario, Prince Edward Island, Quebec, Saskatchewan, Yukon.
National holiday
Canada Day, July 1.
Constitution
Westminster system, based on unwritten conventions and written legislation.
Suffrage
Citizens aged 18 years or older. Only two adult citizens in Canada cannot vote: the Chief
Electoral Officer, and the Deputy Chief Electoral Officer. The Governor General is
eligible to vote, but abstains due to constitutional convention.
Participation in international organizations
Australia Group, Commonwealth of Nations, G-8, G-10, IBRD, IMF, Interpol, Kyoto
Protocol, NAFTA, North American Aerospace Defense Command, UN, UN Security
Council (prior/temporary), UNCTAD, UNESCO, WHO.
Description of national flag
A red maple leaf centered on a Canadian pale: three vertical bands of red (hoist side),
white (double width, square), and red, with a length twice that of its height.
Head of state
Elizabeth II, Queen of Canada (since February 6, 1952).
Viceroy
David Lloyd Johnston, Governor General of Canada (since October 1, 2010).
Head of government
Prime Minister Stephen Harper (since February 6, 2006).
Elections
The monarchy is hereditary. The Governor General is appointed by the monarch on the
advice of the Prime Minister for a non-specific term, though it is traditionally
approximately five years. Following legislative elections, the leader of the majority party
in the House of Commons is usually designated by the Governor General to become
Prime Minister.
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POLITICAL ASPECT OF THE COUNTRY:


Type of Government: Parliamentary democracy and a federal system of parliamentary
government with strong democratic traditions.

Canada has a multi-party system in which many of the country's legislative practices derive from
the unwritten conventions of and precedents set by the United Kingdom's Westminster
Parliament.

Canada has evolved variations: party discipline in Canada is stronger than in the United
Kingdom and more parliamentary votes are considered motions of confidence, which tends to
diminish the role of non-Cabinet Members of Parliament (MPs). Such members, in the
government caucus, and junior or lower-profile members of opposition caucuses, are known as
backbenchers.

The two dominant political parties in Canada at present are, the Conservative Party of Canada
and the Liberal Party of Canada, but smaller parties such as the social democratic New
Democratic Party, and the Green Party of Canada can exert their own influence over the political
process.

Liberalism has generated supporters and adversaries from the time the second Prime Minister of
Canada, Alexander Mackenzie, became a member of the Liberal Party all the way up until
today, where Liberalism continues to dominate the House of Commons.

Cabinet
Ministers (usually around thirty) chosen by the Prime Minister and appointed by the Governor
General to lead various ministries and agencies, generally with regional representation.
Traditionally most, if not all, cabinet ministers will be members of the leader's own party in the
House of Commons (see Cabinet of Canada); however this is not legally or constitutionally
mandated, and occasionally the Prime Minister will appoint a cabinet minister from another
party.

ECONOMICAL ASPECT OF THE COUNTRY:

One of the wealthiest nations of the world, Canada is a member of the Organization of the
Economic Cooperation and Development (OECD) and the G-8. Canada’s economy is dominated
by the service sector. One of the few nations in the world to be a net exporter of energy, Canada
finds its place amongst the top ten trading nations in the world.

Canadian inflation rate rose less than expected in December, ending the year at 2.4%
January 25, 2011
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Canadian inflation rate ended 2010 at 2.4%, shy of market expectations for a 2.5% increase
although higher than the 2.0% recorded in November. The Bank of Canada's measure of core
inflation also moved higher in December to 1.5% relative to a year earlier from 1.4% in
November. Market forecasts were for the core rate to rise to 1.6%.

Nearly 70% of Canada’s Gross Domestic Product (GDP) is contributed by its service sector,
which employs over 75% of the country’s population. The country’s agriculture sector
contributes only 2% of the GDP, employing a similar proportion of its people.

The North American nation’s industry contributes nearly 28% of its GDP, while employing
around 27% of its population. The country’s services segment includes retail, communication,
real estate, financial services, health and education entertainment, technology and tourism. A
large portion of the country’s natural resources, including oil, gold, nickel and uranium and
agricultural products like wheat and other grains, are exported to the US, Europe and East Asia.

Canada resembles the US in its market oriented economic system, pattern of production and
affluent living standards. The impressive growth of Canada’s manufacturing, mining and service
segments since World War II have transformed the North American nation from an agrarian
economy to one with a highly industrial and urban economic structure. Low labor costs and a
comprehensive healthcare and social security system have attracted automobile majors from the
US and Japan to set up manufacturing facilities in Canada.

Canada’s trade and economic integration with the United States has witnessed a dramatic
increase, following the signing of the 1989 US-Canada Free Trade Agreement (FTA) and the
1994 North American Free Trade Agreement (NAFTA). The US is Canada’s largest trading
partner, besides being its largest foreign investor through investments in mining, smelting,
petroleum, chemical and machinery segments. This has linked the Canadian economic policy
even more to the United States. Even a minor change in the US interest rates has repercussions in
Canada.

One important distinction between the economic structures of Canada and the US is that the
former is a net exporter of commodities while the latter is a net importer. Canada’s banking
segment is also quite conservative in comparison to the United States.
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SOCIAL ASPECT OF COUNTRY:

Income

The average family income in 2000 was $66,160; Top 20% of families receive 43.6% of the
income, while the bottom 20% receives only 5.2% of the income. This level of inequality has
been maintained for 45 years. Clearly, Canada has less income disparity than the United States

Schooling

Education is an important determinant of labor force participation, occupation and income, and it
is highly valued in Canada and other industrial societies. Although education is generally
conceived to be a right, there has not always been equal participation by women. Lately, women
have completed more schooling than men.

Gender

Women earn less income, accumulate less wealth and enjoy less occupational prestige than men.

SOCIAL CLASSES IN CANADA

The Upper 3 to 5% of Canadians fall Much of their wealth is inherited, their children go
Class into this class. to private schools and they exercise great power in
occupational positions. Although this group has
historically been primarily of British origin, it is
now more widely distributed.
Upper- One percent belongs to an Primarily of "old money".
uppers upper-upper level
distinguished

Lower- The remaining 2-4% falls Depend more on earnings than inherited wealth.
uppers into the lower-upper level
and

The Middle Roughly 40-50% of the Because of its size it has tremendous influence on
Class Canadian population falls patterns of North American culture. There is
into this category. considerable racial and ethnic diversity in this class
and it is not characterized by exclusiveness and
familiarity. The top half of this category is termed
the "upper-middle" class with family incomes of
$50,000 to $100,000 earned from upper
managerial or professional fields. The rest of the
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middle class (average middles) typically work in


less prestigious white-collar occupations or highly
skilled blue-collar jobs. According to the Social
Diversity, the middle class dominate the Calgary
Stampede.
The Working This class comprises about Have lower incomes than the middle-class and
Class one-third of the population virtually no accumulated wealth. Their jobs
provide less personal satisfaction.

The Lower The remaining 20% of our In 2001 roughly 15% of the Canadian population
Class population is identified as was labeled as poor. Many are supported entirely
the lower class. by welfare payments while others are among the
"working poor" whose incomes are insufficient to
cover necessities like food, shelter, and clothing.

POVERTY IN CANADA

Approximately 4.4 million Canadians live below the "poverty line," that point below which
people spend approximately 55% of pre-tax income on food, clothing, and shelter. A recent
United Nations report has criticized Canada for making no measurable progress in alleviating
poverty. A "wealthy" society finds 2 million people regularly making use of food banks and soup
kitchens.

Children are more likely to be poor than any other age group. 15.6% of people under the age of
eighteen are officially classified as poor. Canada is on average very low but improves over time
as they acculturate to Canadian society.

The poverty rate for the elderly has been declining but as the boomers retires; we will see a rise
in the absolute number of elderly poor.

TECHNOLOGICAL ASPECT

Internet

The internet becomes an important source of information, marked by the popularity of such sites
as Wikipedia and Google Earth. Many articles have been contributed to both the English and
French language versions of Wikipedia by Canadians and many of these relate to important
aspects of Canadian life. There are thousands of Canadians who use the service every day in both
English and French. Google Earth, a virtual globe, is an on-line feature offered by Google since
2005. It provides aerial views of the earth, including Canada and is viewed by thousands of web
users every day including many Canadians. Another internet information service, a telephone
directory, Canada 411.ca has become very popular since introduced in recent years, so much so
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that the delivery of the residential paper telephone book which was introduced to Canada in
1878, will cease in major cities in 2010.

Digital Communication / HD TV (Delivery)

Two Toronto-based companies, Sirius Canada and XM Canada introduced direct-to-home/car,


digital satellite radio service in December 2005 and by 2008 had 750,000 and 400,000
subscribers respectively. In 1999 Telesat launched the first of four Nimiq direct broadcast
satellites which provide the space-based satellite transmitters for these services.

In 2003 Bell Canada introduced an improved speech recognition system for its 310-2355
customer routing service in Ontario. Bell Canada users speak with the programme through
"Emily" a young female-sounding artificial voice. In 2005, Skype, a voice-and-moving-picture-
over-internet technology became available to users around the world, including Canadians. The
technique, which bypasses the traditional telephone network, allows people to use the internet as
a type of telephone and to both talk to and see each other during calls. It is used mainly for long-
distance communication.

Digital Courts

The University of Montreal has recently experimented with ways to improve the administration
of justice by creating a digital court room in which mock trials are held using modern technology
to speed the proceedings. The "courtroom" has facilities for filing documents electronically.
Witnesses can testify by video link or holographic ally from a remote location. Documents can
be served on parties through social media. According to those involved with the project, barriers
to its application in real courtroom settings are not technological but rather emotional, with
judges and lawyers being resistant to change.

ENVIRONMENTAL ASPECT OF THE COUNTRY:

Environment Canada (EC), legally incorporated as the Department of the Environment


under the Department of the Environment Act (R.S., 1985, c. E-10), is the department of the
Government of Canada with responsibility for coordinating environmental policies and programs
as well as preserving and enhancing the natural environment and renewable resources.

Duties includes

(a) the preservation and enhancement of the quality of the natural environment, including water,
air and soil quality; (b) renewable resources, including migratory birds and other non-domestic
flora and fauna; (c) water; (d) meteorology; (e) the enforcement of any rules or regulations made
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by the International Joint Commission; and (f) the coordination of the policies and programs of
the Government of Canada respecting the preservation and enhancement of the quality of the
natural environment.

Under the Canadian Environmental Protection Act (R.S., 1999, c. 33), Environment Canada
became the lead federal department to ensure the clean up hazardous waste and oil spills. The
department is also responsible for international environmental issues (e.g., Canada-USA air
issues).

Under the Constitution of Canada, responsibility for environmental management in Canada is a


shared responsibility between the federal government and provincial/territorial governments. For
example, provincial governments have primary authority for resource management including
permitting industrial waste discharges (e.g., to the air). The federal government is responsible for
the management of toxic substances in the country (e.g., benzene). Environment Canada
provides stewardship of the Environmental Choice Program, which provides consumers with an
eco-labeling for products manufactured within Canada or services that meet international label
standards of (GEN) Global Eco labeling Network.

Environment Canada continues (2005-present) to undergo a structural transformation to


centralize authority and decision-making, and to standardize policy implementation.

LEGAL ASPECT OF COUNTRY


The Canadian legal system has its foundation in the British common law system, inherited from
being a former colony of the United Kingdom and later a member of the Commonwealth of
Nations. Quebec, however, still retains a civil system for issues of private law. Both legal
systems are subject to the Constitution of Canada.

Legal structure of the country consists of Legal traditions which include 2 main and some other
areas of laws:

Main laws:

Common law and Civil Law

Others Areas of law

Aboriginal Law, Administrative Law, Civil and Human Rights Law, Contract Law,
Constitutional Law, Copyright Law, Criminal law, Evidence Law, Family Law, Immigration and
Refugee Law, Labor and Employment Law, Patent Law, Procedural law, Property Law, Tort
Law, Trade-mark Law
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Common law

All provinces and territories within Canada, excluding Quebec, follow the common law legal
tradition. Equally, courts have power under the provincial Judicature Acts to apply equity.

Only the Supreme Court of Canada has authority to bind all courts in the country with a single
ruling. The busier courts, such as the Court of Appeal for Ontario, for example, are often looked
to for guidance on many local matters of law outside the province, especially in matters such as
evidence and criminal law.

Due to Canada’s historical connection with the United Kingdom, decisions of the House of
Lords before 1867 are technically still binding on Canada unless they have been overturned by
the Supreme Court of Canada, and Canada is still bound by the decisions of the Privy Council
before the abolishment of appeals to that entity in 1949.

Criminal offences are found within the Criminal Code of Canada or other federal/provincial
laws, with the exception that contempt of court is the only remaining common law offence in
Canada.

Civil Law

For historical reasons, Quebec has a hybrid legal system. Private law follows the civil law
tradition, originally expressed in the Coutume de Paris as it applied in what was then New
France. Today, the jus commune of Quebec is codified in the Civil Code of Quebec. As for
public law, it was made that of the conquering British nation after the fall of New France in
1760, which is the common law.

It is important to note that the distinction between civil law and common law is not based on the
division of powers set out in the Constitution Act, 1867. Therefore, legislation enacted by the
provincial legislature in matters of public law, such as the Code of Penal Procedure, should be
interpreted following the common law tradition. Likewise, legislation enacted by the federal
Parliament in matters of private law, such as the Divorce Act, is to be interpreted following the
civil law tradition and in harmony with the Civil Code of Quebec.
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REFERENCES:-

http://en.wikipedia.org/wiki/Law_of_Canada January, 2011

http://en.wikipedia.org/wiki/Politics_in_Canada January, 2011

http://wps.prenhall.com/ca_ph_macionis_sociology_5/23/6031/1544106.cw/index.html January,
2011

http://en.wikipedia.org/wiki/Law_of_Canada January, 2011

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