“If  the United Nations was fully funded why would we need the Arc or social enterprise?”

The UN does meaningful work globally, however, aid dependency is a growing concern among some struggling communities. This is where social enterprise comes in.

The United Nations (UN) is a wonderful organization which has improved billions of lives worldwide. Some of society’s problem, however, are so severe and perplexing that even a fully funded UN cannot suppress them in the long run.

Much of the aid provided by the UN involves relief efforts and charitable giving. While these measures are effective short-term solutions, they also lead to more dependent communities. This is where the distinction between charities and organizations such as the Arc and the Skoll Foundation becomes valuable. These initiatives are, in my opinion, more sustainable methods of tackling the pressing issues of society because they help promote social entrepreneurship by allowing individuals in struggling areas to become financially independent, learn applicable business skills and produce economic growth in their communities.

The Arc foundation is a long term solution because it fuels local entrepreneurs in struggling communities.

Take Fitih Tesfaye, the owner of Shega Shero Eatery in Ethiopa, for example. Although financial aid by an organization such as the UN would have supported her for a certain period of time, the fundamental issue with her business—a lack of a point of difference—would have remained unaddressed and she would have eventually found herself struggling again. By realizing the growth of the food production market during an Arc Initiative workshop, she was able to pivot, modify her value proposition and is now contributing to her community’s economy.

In my eyes, solving the world’s problems requires a collaborative effort from a variety of charities and social enterprises—not just one.

Additional Sources: “In a crowded market, entrepreneur finds a sweet way to stand out”

Image Sources: (1) Google Images (2) Sauder UBC

Only today, Blackberry’s stock increased by 6% after CEO John Chen discussed future expansion and partnerships with Chinese firms. Interestingly enough, in a blog post published a month earlier, Minhan (Micheal) Hao recommended that the smartphone company concentrate on the low-income Chinese market because Apple’s high price-point created an economic opportunity for a cost leader to emerge. I applaud my fellow classmate on his foresight, however I propose a contrasting recommendation for where Blackberry should go from here.

Blackberry has the potential to bounce back if it can prove to Chinese businesses that it truly is the leading provider of secure smartphone devices.

Considering that the most appealing points of difference for Blackberry are its enhanced security and privacy features, I advise John Chen to position the brand as the most secure platform in the minds of Chinese business owners. Targeting foreign businesses is a much more logical approach for the company as it is consistent with its current strategy in North America. Regarding Michael Hao’s suggestion, despite the fact that Apple is not prominent among the lower-income Chinese market, there are many local competitors, such as Xiaomi, who are popular for their affordability. These firms have a price-competitive advantage as they can significantly reduce production costs due to their locality.

Focused market research is necessary for Blackberry to appeal to a new customer segment in a foreign market.

To implement my strategy Blackberry will need to conduct exhaustive market research to find ways in which it can better relieve the pains of these Chinese enterprises through its value proposition.

Pay  a visit to Michael Hao’s Blog!

Image Sources: (1) Google Images (2) Google Images

Corporate Social Responsibility (CSR) and Creating Shared Value (CSV) are important concepts which are often inaccurately used as synonyms for one another. From my understanding of “Creating Shared Value” by Michael Porter and Mark Kramer, CSV supersedes CSR. As depicted in the excerpt (left), societal benefit is much more central to CSV programs in comparison to CSR programs, and it is seen as an opportunity to maximize profits rather than an obligation that increases costs.

From those which reduce pollution to those which donate portions of sales to charity, we can name many socially responsible companies. However, naming a corporation which integrates CSV into their business model is challenging. One such company that I have followed ever since its appearance on Dragon’s Den is Ten Tree Apparel. With its business model centered around planting trees for every clothing item purchased, the brand has not only reached the innovation stage of sustainability, it has also differentiated itself from other clothing brands and established a competitive advantage over them. The key activities which Ten Trees employs to create shared value are outlined in my diagram below.

Ten Tree Apparel’s customer segment consists of environmentally concerned individuals. The company is able to appeal to these consumers by implementing the above-mentioned practices. In doing so, it epitomizes the central idea of CSV: maximizing profit by solving society’s problems.

Check out their pitch on Dragon’s Den. 

Additional Sources: http://www.tentree.com/ca/company

Image Sources: My own screenshot and value diagram.

Youtube Video: https://www.youtube.com/watch?v=4oe8w998E00

While not as recognized as Steve Jobs, Tim Cook has great influence over Apple’s corporate culture and brand image.

Recently Apple’s CEO, Tim Cook, publicly announced that he is “proud to be gay”.  In “Thank You Tim Cook”, Magaret Munford, an MBA student from Duke, describes how this impacts her personally as well as “any community that has struggled to hear its own voice in the crowd,”. While I appreciate the manner in which Munford connects with the news on a very personal level, I would instead like to expand on the impact this will have on Apple as a corporation.

Tim Cook’s coming out will certainly have a positive influence on Apple’s corporate culture, which is centered around innovation and efficiency (depicted in the video below). The announcement indicates to employees that the workplace is an inclusive environment that encourages everyone to express who they are despite sexual, racial and religious differences. More comfortable employees will consequently be more creative and efficient.

Of course, there is also the benefit to Apple’s brand image from the publicity Tim Cook is receiving as the first openly homosexual Fortune-500 CEO. While consumers currently perceive the company as the leading innovator in technology,the real point-of-difference for Apple is the experience associated with its product and name. What could be more appealing to buyers than associations with a company which exemplifies equality and tolerance within the workplace and society?

Additional Sources: “Here Are All The Openly Gay CEOs In The Fortune 500”

Image Sources: IB Times

Youtube Video: https://www.youtube.com/watch?v=X9SK052cF3c