June Ong's Blog

In response to the question :

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

We first must examine the role of the United Nations and its charter.

The Purposes of the United Nations are:

1. To maintain international peace and security, and to that end: to take effective collective measures for the prevention and removal of threats to the peace, and for the suppression of acts of aggression or other breaches of the peace, and to bring about by peaceful means, and in conformity with the principles of justice and international law, adjustment or settlement of international disputes or situations which might lead to a breach of the peace;
2. To develop friendly relations among nations based on respect for the principle of equal rights and self-determination of peoples, and to take other appropriate measures to strengthen universal peace;
3. To achieve international co-operation in solving international problems of an economic, social, cultural, or humanitarian character, and in promoting and encouraging respect for human rights and for fundamental freedoms for all without distinction as to race, sex, language, or religion; and
4. To be a centre for harmonizing the actions of nations in the attainment of these common ends.

Information above extracted from :

http://www.un.org/en/documents/charter/chapter1.shtml

The United Nations is essentially governments of the various member nations working together to promote international peace, economic cooperation, and social justice. Funds of the United Nations are channeled to the governments to aid nations facing economic disasters such as famine and natural disasters. In my opinion, the UN works as a government agency to provide help towards emergency situations. It provides short term relief in a time of crisis. Social entrepreneurship and Arc on the other hand work at a grass root level where entrepreneurs from underdeveloped countries are taught techniques and tools to run successful, sustainable businesses. While they are both organizations that provide aid to underdeveloped countries, social entrepreneurship and Arc if successful, establish long term, sustainable economic growth. Both the UN and Social entrepreneurship/Arc serve a beneficial purpose in making the world a better place.

I feel that even if the United Nations is properly funded, there is absolutely still a place for social entrepreneurship and Arc. In fact, I would even go further to say that individuals, who are victimized of the harsh realities of their circumstances, would rather look for opportunities to help themselves for the years to come over temporary relief. There is a Chinese proverb, which is along the lines of, ” Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.” I see Arc and social entrepreneurship as teaching a man to fish to become self sustainable for a lifetime. 

http://skollworldforum.org/about/what-is-social-entrepreneurship/

http://www.un.org/en/documents/charter/chapter1.shtml

http://www.quotationspage.com/quote/2279.html

http://www.sauder.ubc.ca/Global_Reach/ARC_Initiative

I came across this blog while surfing the net for a well written piece on marketing tactics with captivating concepts and ideas. According to John Jantsch, to capture a market and have a rapid growth rate, a firm must predict where the market is headed before it gets there. He addresses the fact that not every company is going to be so innovative as to come up with break through technology all the time because that is just unrealistic. Also that a firm should not put all their capital into a guess as to where the market is going because that is just a dangerous gamble. I read on, and thought to myself that the advice he was giving was extremely vague and almost seemed like common sense that any rational person would have. However the blog picked up on a few key points on consumer behavior that really grabbed my interest.

There are three types of consumers.

1. Hunters : “Hunters are probably your customers today. They had a quantifiable need and found you and your solution through some sort of search.”

2. Catalysts : “Catalysts offer the greatest near term growth as these are business and individuals that will have a need triggered soon by some type of life cycle change, calendar event, budget refresh, office relocation, etc. (Hint: focusing on identifying what these triggers are with your current hunter clients is the best way to immediately grow share of wallet.)”

3. Trailblazers : “Trailblazers are those odd freaks that are very, very passionate about all things related to where your industry is headed. They buy early, they evangelize, they go to great lengths to have things before others. It’s easy to call these folks early adopters, but it’s more than that – they have passion for anyone and anything that helps them validate their journey.”

I find these definitions to be a very accurate description of the average shopper. “Hunters” make me think of the efficient person in the mall, who knows exactly what they want and are on a mission to get it. They have no interest in browsing for other products and do not want to waste time. The first thing that was portrayed in my mind as I thought of what a “catalyst” might be, was a newly wedded couple looking to start a family. The sudden great change in their lives would lead to buying many different sorts of commodities that they may have never needed before. Finally, “trailblazers” to me, are those technology fanatics that wake up at 4 am to rush down to their local Apple Store to be first in line to buy the new iphone. They do not really know for sure how the new product will perform but they have faith and confidence in the company already and are truly passionate about being the first to try “the next big thing.”

I feel that if a company wants to see growth at a rapid rate and knock out their competition, they must focus on the “trailblazer” consumer. Marketing tactics must be so captivating that it inspires these people to become passionate about a product. Once these trailblazers are intrigued, they will create hype and excitement surrounding the certain product and said product will gain popularity by word of mouth. When a company gets to the point where there product is already well known and talked about constantly, before it has even launched, that is when you know that the company’s marketing department is doing something right. For example, Apple’s commercials do not just state all the great things that their products do. They make the consumer feel that their product is the right fit for them because the creators of the product are like minded to the consumer. For example, “A product as innovative and creative as you are” is the type of atmosphere I believe Apple wants to portray through their advertising campaigns.

There are many great products out there that do the exact same thing. An important factor that differentiates the successful companies from the unsuccessful is their ability to market their product well and catch the attention of the “trailblazers” in this world.

http://www.ducttapemarketing.com/blog/

Blackberry Ltd. CEO John Chen tells an interesting and in my eyes, hilarious story about how his wife likes her Samsung. He goes on to say that he had asked her to switch to a Blackberry to save him from embarrassment, however she refused. The fact that Mr. Chen is able to speak so openly about this, makes it clear to the reader that he is very aware of Blackberry’s position and the struggle ahead due to all of its strong competitors and unwise moves in the past. He realizes that morale is not exactly in “top shape” but sees potential in other areas such as handsets. My view on this is that I must commend Chen on his openness. To drag a company out of failure, I believe a strong leader must realize every little detail of the company’s flaws first. Then develop a brilliant plan to counteract those weaknesses. At the same time, Chen is also creating a light hearted atmosphere to the otherwise dull topic. Which I admit is what drew me in as a reader. For many, it is slightly tedious to keep up with what all the tech companies are doing nowadays. However as Prof Kroeker once said, “There are two types of scandals in this world that are important. One involves people and the other involves money.” Although I realize this is hardly a scandal, the incorporation of Chen’s wife differentiates this article from just another article encouraging the success of the company.

Chen has also recently made his way to China to discuss potential partnerships with Xiami Corp and Lenovo Ltd. This entails that he is looking to concentrate on the Chinese market and expand there. The article mentions that Chen realizes it as a huge market but a highly competitive market as well. Personally, I see China as a very hard market to enter. With Blackberry estimating only a few hundred thousand units being sold in China out of the 400 million users worldwide, it is hard for me to understand the merit of focusing to capture this particular market. However, I do see a partnership with Xiaomi or Lenovo as a potentially very successful move for Blackberry. With support from these two huge companies, Blackberry can start to gain positive exposure to consumers around the world giving them room to turn around from “being old news” to a reinvented company.

http://www.theglobeandmail.com/report-on-business/top-business-stories/embarrassed-by-his-wifes-samsung-blackberrys-john-chen-took-it-away/article21518502/

http://www.theglobeandmail.com/report-on-business/blackberry-seeks-china-partnerships-as-chen-meets-lenovo-xiaomi/article21518409/

My fellow commerce student, Bryan Chow posted an intriguing article and analysis on, “How ads can push too hard.” The article outlines the negative effects  of aggressive and pushy marketing tactics that some companies tend to use. This post stood out to me because I’m always that person sitting on the couch thinking to myself “wow that commercial totally made me never want to buy that product.”Studies show that consumers enjoy the decision-making process when considering buying a commodity, rather than being told what they should and should not want. For example an advertisement stating, “If you call yourself a sports fan, you gotta have direct tv!” could lead the potential customer to thinking that the company is implying that if he/she does not buy direct tv then they are not  true sports fans, which could be interpreted as an insult.

I am in complete agreement with Bryan’s view on the topic. Some companies have got it all wrong in the sense that they believe that consumers are so easily brainwashed by simple and pushy statements such as, “You need this in your life”. At times, I almost feel insulted that the creators of certain ads think that we, as consumers don’t question as to why we “need” this in our lives. I strongly believe that commercials should stress the positive aspects of the product while hinting to the viewer that their product is the best. This approach would be much more effective as the consumer would feel that they are making a rational choice, given all the positive aspects of the product. Perhaps some of these companies with overly aggressive ads could do some extensive market research to evaluate their approach and come up with a new tactic towards effective marketing.

Blog 3: Advertisement should not be so aggressive!

To the average ear, the name “Alibaba” conjures up thoughts of Aladdin or maybe the iconic “open sesame” phrase. However the folks in the business know, realize Alibaba as an online shopping platform from China, that has recently debuted as a publicly traded company with phenomenal success. The company started up in 1999 with CEO Jack Ma and 17 of his friends. I feel that they entered the market at a perfect time. China is undergoing strong economic growth, the population is becoming tech savvy and the internet shopping and trading boom had just begun. This is just speaking from personal experience, but online shopping has noticeably gathered  momentum in recent years. The convenience of being able to purchase products in your pajamas immediately at your fingertips without having to drag oneself to a physical store is without a doubt, quite satisfying. It appears that consumers have overcome fears of credit card fraud in online purchasing, due to improved security technology and reliability that online companies offer. But what really makes Alibaba so different from other successful online shopping platforms such as Amazon or Ebay? The sole key difference is the dominance of Alibaba in the Chinese market. However to  compete with well known North American e-commerce companies, it appears that Alibaba although having success thus far, may have to alter and take a more unique approach to their business model to differentiate. Another point to give some thought to, would be that although there was a sharp demand for shares with Alibaba raising $25 billion, is this just a spike in demand for shares because the whole world is hyped up for the company’s debut as a publicly traded company? Only time will tell. My bet is that Alibaba will continue to be a successful company but the shares will go down once the initial hype subsides.

http://blogs.ubc.ca/gracecheng/2014/10/05/asian-invasion-e-commerce-is-where-its-all-at/

http://www.theglobeandmail.com/report-on-business/international-business/us-business/alibaba-shares-surge-46-in-their-debut/article20693217/

This is an interesting dichotomy where a company’s rights to mine land and the rights of the First Nations people are in conflict. The Canadian government recognizes the rights of the First Nations people to their traditional practices and self government. In this situation, the company Taseko has plans to mine a large swath of Chilcoltin. However, the A.B.C. First Nations have other plans. They hope to declare a vast area of Chicoltin as a tribal park, including the mining area that Taseko had its eyes on. The net result is that Taseko’s plan is in jeopardy because their management most likely did not anticipate this declaration by the First Nations. Through this article and some basic knowledge on Canadian history, I realize that Taseko and the First Nations must work together to come to an agreeable and amicable resolution. It appears that Taseko did not do their due diligence and consider external factors in their decision making process. This serves as an important reminder that in business knowing the local laws, practices and traditions are crucial factors in decision making.

http://www.vancouversun.com/news/metro/Unilateral+park+declared+Tsilhqot+includes+Prosperity+mine/10192766/story.html

Wal-mart Canada Corp. is currently taking an aggressive approach to knocking out its competitors. They are bringing up sales by significantly lowering their prices in an attempt to steal business from rivals. Wal-marts Canadian division recorded a 0.2% sales gain for retail stores open a year or more. However due to them offering lower prices, operating profit has fallen. This is a perfect example of how a company with a cost leadership strategy and deep pockets can potentially dominate the market.  It takes out competitors with a focus strategy on low cost through effective supply chain management and use of technology. I also find it interesting that such a large successful company with an excellent track record in the US may have to adapt and modify its strategy for the smaller Canadian market e.g. smaller store format.

http://www.theglobeandmail.com/report-on-business/international-business/us-business/wal-mart-cuts-outlook-despite-rise-in-profit/article20056590/

This article contrasts the differing strategies of Target and Nordstrom on entering the Canadian retail market. Nordstrom is a large US based retailer offering upscale products including clothes, cosmetics, accessories and handbags. A direct competitor to Nordstrom in Canada would be Holt Renfrew & Co., who focus on luxury goods and Harry Rosen, who specialize in menswear. Even though the competition is not strong, Nordstrom decided to take a slow and steady approach opening only six stores over the span of two and a half years. It is also not counting on being profitable in Canada in the immediate future and by staying small for the time being, it is able to learn and adjust quickly. In contrast, Target opened 126 stores in 2013 alone. Unable to cope with the rapid expansion, Target left a bad first impression with customers due to empty shelves and overly high priced items. Unlike Nordstrom, Target expected to make a profit in the first year of operations but ended up in a staggering $1 billion loss.

It appears to me that the cautious approach taken by Nordstrom is the correct one. Although it is a well known name in the US, it is new to Canada. Supply chain, tax laws and in particular consumer behavior are different in Canada. The cautious approach allows Nordstrom to learn, adapt and take appropriate corrective actions quickly. In addition, being in the upscale market, choosing the correct locations and creating an exclusive brand name is particularly important.

Nordstrom will face other challenges and competition. Some Canadian retailers are already stepping up their game while expecting Nordstrom’s arrival. In 2013, The Hudson’s Bay Company bought Sak’s on Fifth Ave., which is a US based rival to Nordstrom. They are expected to branch out into Canada sometime soon as well. Also in response, The Hudson’s Bay Company has attempted to market itself as a higher end retailer. They are trying to tap into this market by adding luxury designer brands to the brands that they offer. For example, recently Chanel, Guerlain and Yves Saint Laurent cosmetic counters have been popping up in The Hudson’s Bay Company in downtown Vancouver where they were nowhere to be found before. It would be interesting to see if the Bay can really transform and re-position itself to become a high end retailer. After all of the “Bay Days”, I personally think it would be challenging for the Bay to rebrand itself as an exclusive high end retailer. A better bet for the Bay is to leverage the Sak’s on Fifth Ave brand to compete with Nordstrom.

http://www.theglobeandmail.com/report-on-business/nordstrom-bets-on-a-slow-entry-into-canada/article20100322/

http://www.theglobeandmail.com/life/fashion-and-beauty/urban-outfitters-bloodstained-vintage-kent-state-shirt-sparks-outrage/article20599281/

What is considered fashionable art and what is not? Where do we draw the line between morbid and ingenious? Urban Outfitters recently released and sold what appeared to be a bloodstained sweater with a Kent State university logo on it. This is highly controversial due to the fact that there was a shooting at Kent State and four students were killed in 1970. Kent State replied with, “We take great offence to a company using our pain for their publicity and profit. This item is beyond poor taste and trivializes a loss of life that still hurts the Kent State community today.” This topic has also caused a stir through social media via twitter. Urban Outfitters has since replied with an apology. But one has to think and notice that Urban Outfitters could not have done this by accident. Through my analysis, I have come to realize that this is purely a strong marketing tactic. The fact that I am even mentioning this article and the Urban Outfitters brand name is an indication that the company has succeeded in grabbing people’s attention. I believe it is appropriate to say that over at Urban Outfitters, they must be thinking, “There is no such thing as bad publicity.

Here is another article that is relevant to the upcoming class on Business and Ethics. The two goes hand in hand. It outlines key points to achieve a successful and sustainable start up business. Besides making a profit through great products, it is important that CSR cannot be an after thought in business.

https://ca.finance.yahoo.com/news/incorporating-social-mission-consider-5-163000960.html