ADMN4101 Week 11 F22

Thinking about Management:
To the Moon.
ADMN4101 - A
Fall 2022.
Ann Dulhanty
anndulhanty@trentu.ca
Admin stuff
Agenda
The Business of Space
Case of the week - Aerospace startups
Summary of Course
Workshop with groups on final project -

questions
Contribution Assignment
Final opportunity to submit contribution assignment -

week 11, by 11:30 am.
.
Marks for term contribution will then be posted in Blackboard.
Please bring forward any discrepancies asap after posting.

Group Term Project

See Guidelines in Blackboard

Goal: Study decision-making in large organizations.

Feedback provided on outline to outline submitters.

When issue is reaction to company action, consider
why the company made the decision in the first place.

Do you have any questions about the Guidelines?

If there are any issues regarding teamwork, now
is the time to address them!
Due: Tuesday Dec. 6, by 10:00 pm
Exploration and Exploitation of the Moon,
Mars and beyond
What do you think about humans branching out into
space? What would you do?
Poll
Why Space? - the final frontier
Social opportunities
 to acquire knowledge
 because it's there
 to better conserve earth's resources

as a new start
 to understand our place in the universe
Business opportunities
 tourism
 mining/resource extraction
 new settlements
 as well as existing uses like satellite communication**

Why Space is an emerging issue in business
government endeavour for decades
 many countries (>70) have space programs
 lead to many discoveries that benefit society (e.g. scratch-proof

lenses, ear thermometer, memory foam)1
 NASA suggests its spinoffs have saved many lives and generated
substantial economic growth2
 economic development
1. https://www.jpl.nasa.gov/infographics/infographic.view.php?
id=11358
2. https://spinoff.nasa.gov/Spinoff2012/pdf/Spinoff2012.pdf
government of Canada

healthcare

careers esp STEM

data to enhance safety

innovations useful in every day

international cooperation
https://www.asc-csa.gc.ca/eng/about/everyday-benefits-of-space-
exploration/default.asp
business:
 is becoming a commercial opportunity
 shifting the business models of established suppliers
 attracting new entrants, all along the supply chain
 human nature satisfying self actualization needs rather than more

basic communication needs
Space - the opportunity
“Global Deep Space Exploration and Technology
Market report projects the market to grow at a CAGR
of 6.42% on the basis of value during the forecast
period from 2020 to 2030.”
https://www.prnewswire.com/news-releases/global-deep-space-exploration--technolo
gy-markets-2020-2030-301031594.html
 15-20% of space industry is 'non-satellite'

https://www.morganstanley.com/ideas/investing-in-space
global space tourism market size is expected to

reach USD 8.67 billion by 2030... CAGR of 37.1%
from 2022 to
2030.https://www.globenewswire.com/en/news-release/2022/08/30/2506432/28124/en/Global-Space-Tourism-
Market-Report-2022-Expansion-of-Sector-Bodes-Well-for-General-Space-and-Technology-Research.html
 demand for space-related technologies strong
 moon and mars exploration primarily, but also high

Space - a growing industry
selected players -
General Dynamics - aircraft
Airbus subsid. - rocket launcher
Lockheed - space craft parts
Boeing - space craft
Northrop Grumman - telescopes
Thales Alenia Space - satellites
MAXAR Technologies - 'space infrastructure'
Sierra Nevada Corporation - technology
Astrobotic - extra-terrestrial vehicles, robotics
SpaceX - space tourism, colonization,
hardware
Blue Origin - space tourism, colonization
Virgin Galactic - space tourism
Astra - rockets
SpaceX - Musk's venture to build reusable rocket ships, fully
integrated - the business case
https://www.youtube.com/watch?v=gu8LU46oVUM
strategy to make it cost effective - one vehicle will have the

capability of addressing many markets, as it will be able to go to
the moon, Mars and all earth orbits
in 2018 announced Dear Moon - first private passenger to be

flown to moon in 2023 - fly by with total one week trip time;
https://www.youtube.com/watch?v=h_L3wLmrMuA&t=43s
Space tourism - the opportunity
“ 'Space is not only important for the future of transportation, it's
important for the future of imagination'
George Whitesides CEO Virgin Galactic and The Spaceship Company”

MISSIONWHAT WE DOVISIONWHERE WE’RE HEADING
“vision is to operate hundreds of flights each year from Spaceport

America”
“commercial service is now expected to commence in Q4 2022”
“$450,000 per seat”

Blue Origin https://www.blueorigin.com/about-blue
https://www.youtube.com/watch?v=1YOL89kY8Og&t=41s
“vision of enabling a future where millions of people

are living and working in space for the benefit of
Earth”
Space - mining opportunities
for example - He3 could be used to fuel reactors on earth
https://www.nasa.gov/feature/harnessing-power-from-the-moon
also possibilities of mining (water, O 2) to support human

life on other planets/moons
Who owns space? Other planets
or moons?
1967 Outer Space Treaty
fortunately, signatories agreed colonization hadn't gone well on

earth and agreed not to do it in space
but later: legal status of the moon “global commons”

but ok to mine asteroids
- >private entrepreneurs could operate with permission

(according to some) or belong to humanity as a whole so
benefits should be shared
from:https://theconversation.com/who-owns-the-moon-a-space-lawyer-answers-99974
Who owns space? Other planets
or moons?
What do you think would be appropriate restrictions or
best practices for businesses operating in:
 space tourism

space exploration
 space mining
 space colonization?
The Commercialization of Space?
Business Strategy
Industry Structure and Competitive Environment:


industry in introduction stage

competitors fragmented into governments and new entrants funded
by inspired, deep-pockets founder/investors

rivalry among startup seems intense - all aimed at producing same
technology/c.a.

technology/supply of knowledge and components is enabling and
advancing

demand exists, but since so early in industry stage, hard to tell
magnitude

legal/regulatory system far from clear

very capital intensive/barriers to entry high
The Commercialization of Space
More business perspective:
several sub-sectors: tourism, mining, energy, real estate,

communications (existing)
suppliers : component manufacture, AI & robotics, R&D
industry is also a significant supplier to other industries

primarily through innovation
risks are very high, due to uncertainty of demand and

capital costs
Ethics perspective:
shareholders - huge investment made to date - waste it?

community/society - many auxiliary benefits from space
program; benefits are long term and could be far reaching
founders of private companies - their right to pursue non-harmful
ventures
employees - definitely satisfies higher order needs
customers - if private selling to government - competitive pricing
- better value; tourists - serving a unique need; are claims over
ambitious?
who is being harmed? how much hope/emotion is embedded

The Commercialization of Space?
More ethics:
Utilitarian - is this the greater good for the greatest

number? seems like the invested dollars could have
been directed to more tangible earth problems; but to
move forward from here money and effort should not
be wasted
Principle-based - principle being pursued is knowledge,

the advancement of humankind
What would I do about the
commercialization of space?
1. Move forward to reap benefits - investors and employees.
2. Focus on value to people on earth.
3. Limit tourism or use hybrid model to do good.
4. Better use of resources through collaboration and sub-sector

segmentation.
5. Transparency about business purpose. Colonization of space should be

subject to global dialogue.
- discussion-
How would you approach this - would you work for a firm
with a goal to exploit space - the moon, Mars, outer space?
Which aspect of the development of space would you

pursue (industry sub-sector, company)? Why?
poll
-Case of the Week-
Innovative Space industry companies: GHGSAT
and Orbital Insight
Compare the two companies. Which would you

rather manage, and why?
Thinking about Management, Fall
2022
Overall goal - to consider the situations faced by managers
in a variety of business situations. By observing current
issues, explore how decisions can be made.
To prepare to move from the role of consumer and observer,

to participant, decision-maker.
To explore:
What would you do?

Thinking about Management
Foundations to draw on in the decision-making process:
1. Knowing yourself, coworkers and stakeholders.

Understanding motivations. Looking for growth. Working
constructively with strengths and weaknesses. Facilitating team
work.
2. Ethical theory - Intersection of personal and professional.

Ways to think about challenges. Goal: maximizing benefit for all
stakeholders. Case - MyTelco - appropriate use of customer
data => transparency.
Foundations to draw on in the decision-making process:
3. Business strategy - strategy - simple decisions, profound

impacts. Competitive strategy models can integrate
responsibility.
Case - Netflix integration of ad based product. =>a competitive

necessity? but not popular?
Launched Nov 3
https://digiday.com/future-of-tv/the-rundown-netflix-unveils-its-a
d-supported-product/
privacy? strategy
Emerging challenges from innovative technologies:
challenges of introducing and using products that lack track

record of use and practice cases
1. Privacy - a fundamental right, corporations duty to protect

in era of big data. Guidelines developed but challenges
endure with new products. Case: Tim Horton's app. => how
to decide what is just compensation for violation.
Nov. '22 - Scan and pay added.

https://www.restaurantdive.com/news/tim-hortons-offers-sca
n-pay-option-for-loyalty-app/636364/
Emerging challenges from innovative technologies:
2. Communication. Abundant information. Business

opportunity and challenges.
Case - Spotify - censor or not? not better culture align
Nov. '22 From the Spotify Creator Equity Fund: Extending

NextGen audio to Historically Black unis and colleges
https://newsroom.spotify.com/2022-11-18/spotify-expands-nextgen-audio-program-to-historically-
black-colleges-universities/
3. Safety - new technologies provide new opportunities and

risks, product safety is an ongoing concern
Case: Roblox - privacy as a premier concern
“Is Roblox safe for kids?” https://www.parents.com/kids/safety/internet/is-roblox-
safe-for-kids/
Diversity & Inclusion in all Stakeholder groups
1. Corporate Activism - organizations being call on to

speak up and support many social causes
Case: Nike - taking a stance is controversial
July '22 - Nike releases data on workforce diversity

https://www.bloomberg.com/news/articles/2022-07-28/nik
e-says-it-will-release-promotion-hiring-data-for-women-
and-minorities
2. Employment - evolving precariously especially for some
racial groups
Case: Coinbase - did the right thing by downsizing, but
maybe not the right way.
https://www.coinbase.com/careers/belonging-at-coinbase
3. Supply chain partners - approaches to increasing

diversity in suppliers
Case: Sodexo - exemplary achievements in collaboration,
still improvements possible
Nov. '22 - strategic repositioning - more diferentiated
product, rewards program, more earth friendly, gener
balance management
https://www.sodexo.com/files/live/sites/com-global/files/02%20PDF/Press%20Releases/
2022/PR_CMD_11-02-2022.pdf
Business approaches to saving our planet (or escaping it)
1. Sustainability - advances are being made in knowing what to

focus on, what to measure; models are emerging: circular
economy, credit systems, rebirth of industries
Teck Resources - tough decision, but the right one, to shut down
mine development
Nov.'22 - top employer recognition
[recommended watch: Michael McCain, Maple Leaf Foods, talk at

https://www.youtube.com/watch?v=sWYT8ByoEz0 ]
2. Space Exploitation
flourishing industry, ethical questions
Wicked problem
Broad thinking
Management Business Strategy Ethics
Relevant Information
Analysis (alternatives)
Decision
Thank you!
I look forward to reading your group projects.

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Thinking about Management:

The Business of Space

Case of the week - Aerospace startups

Workshop with groups on final project -

Final opportunity to submit contribution assignment -

Please bring forward any discrepancies asap after posting.

 as well as existing uses like satellite communication**

 many countries (>70) have space programs

 lead to many discoveries that benefit society (e.g. scratch-proof

 is becoming a commercial opportunity

 shifting the business models of established suppliers

 attracting new entrants, all along the supply chain

 human nature satisfying self actualization needs rather than more

 15-20% of space industry is 'non-satellite'

global space tourism market size is expected to

 demand for space-related technologies strong

 moon and mars exploration primarily, but also high

strategy to make it cost effective - one vehicle will have the

in 2018 announced Dear Moon - first private passenger to be

George Whitesides CEO Virgin Galactic and The Spaceship Company”

“vision is to operate hundreds of flights each year from Spaceport

“commercial service is now expected to commence in Q4 2022”

“$450,000 per seat”

Blue Origin https://www.blueorigin.com/about-blue

“vision of enabling a future where millions of people

also possibilities of mining (water, O 2) to support human

fortunately, signatories agreed colonization hadn't gone well on

but later: legal status of the moon “global commons”

- >private entrepreneurs could operate with permission

Industry Structure and Competitive Environment:

several sub-sectors: tourism, mining, energy, real estate,

industry is also a significant supplier to other industries

risks are very high, due to uncertainty of demand and

shareholders - huge investment made to date - waste it?

who is being harmed? how much hope/emotion is embedded

Utilitarian - is this the greater good for the greatest

Principle-based - principle being pursued is knowledge,

2. Focus on value to people on earth.

3. Limit tourism or use hybrid model to do good.

4. Better use of resources through collaboration and sub-sector

5. Transparency about business purpose. Colonization of space should be

Which aspect of the development of space would you

Compare the two companies. Which would you

To prepare to move from the role of consumer and observer,

What would you do?

1. Knowing yourself, coworkers and stakeholders.

2. Ethical theory - Intersection of personal and professional.

3. Business strategy - strategy - simple decisions, profound

Case - Netflix integration of ad based product. =>a competitive

challenges of introducing and using products that lack track

1. Privacy - a fundamental right, corporations duty to protect

Nov. '22 - Scan and pay added.

2. Communication. Abundant information. Business

Nov. '22 From the Spotify Creator Equity Fund: Extending

3. Safety - new technologies provide new opportunities and

1. Corporate Activism - organizations being call on to

July '22 - Nike releases data on workforce diversity

3. Supply chain partners - approaches to increasing

1. Sustainability - advances are being made in knowing what to