BSAD 101 Introduction to Business

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BSAD 101 Introduction to Business
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Thinking Analytically Critical thinking isthe
most powerful instrument, when combined with
moral decency, for good that our planet has ever
known Stephen Jay Gould, 1997
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What kind of dog is this?
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What is Analysis / Critical Thinking?

• Elements of thought

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What is Analysis / Critical Thinking?

• Elements of thought

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What is Analysis / Critical Thinking?

• Analysis is a detailed examination of the
  elements or structure of something (Oxford).
• The essence of being analyticalis using
  evidence to draw conclusions (A Note on Being
  Analytical)
• Evidence is the specific pieces of information
  (facts, opinions, calculations, reasoning) used
  by an analyst to help make sense of internal and
  external realities
• Conclusions are inferences drawn from evidence
• Tools of analysis generally fall into
• Quantitative objective knowledge of something
  that can be known independent of thought or an
  observer as part of reality.
• Qualitative -- subjective knowledge as it is
  known in the mind as distinct from a thing
  itself.
• The purpose of analysis is to obtain meaning from
  data

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Why analysis? Critical Thinking?

• As studentsintegral to a university education
• As managerscore management skill for planning,
  leading, organizing and controlling a business
  (e.g. Critical Thinking in the Business
  Classroom)
• As citizenscentral to living in a democratic
  society
• Learning without thought is labour lostConfucius

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Why analysis (cont)

• Consider the following examples
• 100 of cat owners questioned said that their cat
  preferred Whiskas. Make your cat happy buy it
  Whiskas.
• Less than 1 of car accidents involve pink cars.
  Be safe, drive a pink car!
• A large number of schoolchildren achieved a mark
  below average in the nationwide tests of 7-10
  year olds. There is an urgent need to improve
  standards.
• These conclusions are suspect because of the
  evidence on which they are based

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Why analysis (cont)

• Consider the following business scenarios
• Should we launch a new product?
• Should we invest in the company?
• Should we buy the company?
• Are we doing well?
• The recommendations to these questions require
  conclusions which are based on relevant,
  sufficient, credible evidence!

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The Question

• Companies who hire beautiful people go on to
  make a pretty penny
• Do you think companies with beautiful people are
  more successful than companies without beautiful
  people? Why?
• Do you think the article makes a good argument?
  Why?

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Botticelli's Aphrodite
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The Question

• Companies who hire beautiful people go on to
  make a pretty penny
• Do you think companies with beautiful people are
  more successful than companies without beautiful
  people?
• Strongly Agree
• Somewhat Agree
• Neutral
• Somewhat Disagree
• Strongly Disagree

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Botticelli's Aphrodite
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The Question

• Companies who hire beautiful people go on to
  make a pretty penny
• Do you think the article makes a good argument?
• Strongly Agree
• Somewhat Agree
• Neutral
• Somewhat Disagree
• Strongly Disagree

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Botticelli's Aphrodite
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Why did they conduct their research?

• Objective
• To discover if beautiful people are worth their
  wages
• Based on the results of a previous study that
  found that beautiful people earn higher wages
  than people who are not beautiful

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How did they conduct their research?

• Methodology
• 4 researchers
• Dutch and American
• Three men and one woman
• Used 1,282 black and white photos of executives
  from 289 Dutch advertising firms
• 4 men and 2 women rated the photos
• 1homely 5beautiful
• Company beauty scores were compared to sales
  results

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What did they find?

• Results
• The average beauty rating is 2.8
• men generally score lower than women
• Companies with the highest beauty scores were in
  some circumstances associated with higher revenues

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Are their findings credible?

• Methodology
• Bias?
• Cultural
• Gender
• Individual
• Thoroughness
• Number of beauty raters
• Sales only measure of success
• Expertise and reputation of source
• 4 university economists, U.S. Natl Bureau of
  Economic Research

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Sufficient evidence?

• Enough evidence to connect beauty? increased
  sales?
• Weak association
• in some circumstances?
• study didnt exactly say how
• did offer a few ideas to explain their unusual
  findingsmay have better luck attracting
  clients
• Luck or skill
• May explanatory power?
• Success rates in attracting clients can be
  determined
• Is one study conclusive?
• Other countries?
• Other industries?

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Relevant evidence?

• Executives relationship with sales?
• Are executives exclusively generating sales?
  Others?
• Impact of other corporate motivators
• Advertising, P.R., W.O.M.
• Study uses photos yet advertising sales based on
  interaction
• Beauty is not just static it can be perceived
  in body language, expression, colour ratings
  would be more relevant if it reflected normal
  interaction

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Support for Argument

• Credibility of researchers
• Conclusions are tentative (findings are
  exaggerated by article authors (e.g.
  handsomely)
• Number of ratings
• Relevance of image ? sales

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The Question

• Companies who hire beautiful people go on to
  make a pretty penny
• Do you think the article makes a good argument?
• Strongly Agree
• Somewhat Agree
• Neutral
• Somewhat Disagree
• Strongly Disagree

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Botticelli's Aphrodite
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Conclusion re beautiful people

• Conclusion does not appear to have basis in
  quality evidence ? lacks credibility,
  sufficiency, and relevancy
• Thus, it is with little confidence we can accept
  the authors argument for this industry or in
  generalthough our own thinking may be biased by
  our views on beauty
• Premise (beautiful people increase sales) may be
  true (in this industry and broadly) but this
  would need to be established more conclusively

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Conclusion re being persuasive

• Whether you are constructing an effective
  argument to convince a manager to accept your
  recommendation or critiquing the argument of a
  subordinate, you must identify clearly what the
  claim is and then evaluate the evidence on which
  the conclusion is based.
• Evaluating evidence means examining the
  credibility, sufficiency, and relevancy of
  evidence
• To be persuasive (to make a good argument as a
  manager) you must build a conclusion with good
  solid evidence

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Admin

• Mondays Class
• Super Size Me is a film/documentary about one
  mans experience of eating nothing but McDonalds
  food. His purpose was to demonstrate the
  relationship of fast food and obesity, using
  himself as a case study. Super Size Me will form
  the basis of our class Wednesday about thinking
  analytically, during which short clips will be
  presented to generate class discussion.
• RefWorks Tutorials
• Wednesday, October 1 1245-200pm NHB22
• Thursday, October 2 1145-1230pm NH123
• Wednesday, October 8 945-1100am NH123
• Thursday, October 9 700-815pm NHB22

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