In order to cut production costs, many corporations look for ways of employing cheap labor. Often times, the employment of cheap labor is considered unethical because it usually consists of children and women who have poor working conditions and pay, with no social benefit. The author of this article believes that prison labor is also unethical, but I happen to disagree with him.

I believe that no matter what prisoner’s do, people will not forget the crimes they committed in the past, and therefore will be unwilling to hire them. In the movie “The Shawshank Redemption”, Red was released from prison after more than 20 years, but committed suicide because he was unable to make a living in the world outside of prison. By hiring them, firms will be providing jobs for those who would have no chance to make a living. This may help the prisoners redeem their reputation in society as well.

The author does have a good point when he says, “Businesses should pay everyone at least minimum wage as set by the government.” Employing prisoners could also be considered an action of a social entrepreneur too. Mark Brand, the owner of Save-On Meats, does something similar by hiring workers without any employment prospects. It must not be forgotten that Brand pays his employees a substantial amount of money.

In conclusion, I would like to emphasize that prison labor is not necessarily unethical behavior, and that it could actually help the prisoners.

Reference

• Phan, Anthony. “Anthony Phan’s Blog.” Prison Labor, Right or Wrong? ». UBC, 12 Sept. 2012. Web. 23 Nov. 2012. <https://blogs.ubc.ca/anthonyphan/2012/09/12/prison-labor-right-or-wrong/>.

In Japan, everybody knows about Uniqlo. It is natural for people to look for cheap clothing during times of economic crises such as the one we are in today, and Uniqlo provides just that.

Contrary to Zara’s supply chain operations, Uniqlo does not change its merchandise plans based on the latest fashion fad. Instead, they book factory capacity well in advance, allowing to get their retail price to be low. Although they do not rush to produce trendy items like Zara does, they produce well-fabricated, well-designed, basic clothes at a steady year-round pace. Uniqlo’s success comes from a style of supply chain management that is the opposite of Zara, and their success has led them to expand their stores into major cities around the world like New York, Paris, and London.

I believe that it’s important to know that there is always more than one way to operate a business. Uniqlo was able to find a strategy that fit their company, products, and marketplace.

Reference

• “How Zara Gets Fresh Styles to Stores Insanely Fast-within Weeks.”Slate Magazine. Slate Magazine, n.d. Web. 19 Nov. 2012. <http://www.slate.com/articles/arts/operations/2012/06/zara_s_fast_fashion_how_the_company_gets_new_styles_to_stores_so_quickly_.html>.

Zara is famous for their up-to-the-instant offerings. How do they do it? Supply chain management is the key.

Most apparel retailers commit six months in advance to designs, which makes up up 6o% of seasonal lines. This means that most products are manufactured by the beginnings of seasons, limiting the retailers ability to respond to trends. In others words, there is a certain amount of risk when you decide what to manufacture. On the contrary,  50% of Zara’s product line is manufactured in the middle of a season, meaning that they can react to new design styles while the trend is peaking.

Zara is capable of doing this because a significant amount of their production occurs “in-house” and 85% of factory capacity is reserved for these in-season manufacturing. In order to be able to ship small batches more time-efficiently, they manufacture many of their products in Europe. Although the wages of European workers are higher than those of Asia, latest trends can hit shelves within two weeks. In addition, small batches ensure that there is not a ton of unsold inventory to get rid of.

I have always wondered why Zara does not hold many sales. Now I know, and I admire how their operations managers have come up with this revolutionary tactic. Does this mean I’ll start shopping at Zara? Nope, too expensive.

Reference:

• “How Zara Gets Fresh Styles to Stores Insanely Fast-within Weeks.” Slate Magazine. Slate Magazine, n.d. Web. 19 Nov. 2012. <http://www.slate.com/articles/arts/operations/2012/06/zara_s_fast_fashion_how_the_company_gets_new_styles_to_stores_so_quickly_.html>.

In Christopher Nolan’s Batman Trilogy, Christian Bale plays the role of Bruce Wayne, multi-millionare playboy and Batman, hero of Gotham City. But is that all he is? After learning what social enterprises were, I was curious to see if Wayne Enterprises was worthy enough to be called one.

The Wayne family’s wealth comes from serving the public good. Thomas Wayne, Bruce’s father, was a doctor who built power plants and hospitals with his affluence. In addition, he built a cheap mode of public transport for those who are economically challenged. After his parents’ death, Bruce Wayne took over the company. Even after the tragic incident, Bruce continues to venture for social change by funding boy’s homes with the profit made from his company.

Social entrepreneurs are defined as “someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change.” Perhaps Bruce Wayne does not represent a social entrepreneur as strongly as Nathaniel Dunigan does, but I still believe that Wayne Enterprises can be categorized as a social enterprise.

Our world currently faces many problems and yet, many of us remain ignorant of others’ needs. Batman isn’t here to help us; the responsibility lies with us.

As the Deputy Director of the Office of the Governor of Tucson, Arizona, Nathaniel Dunigan visited Uganda as a HIV prevention educator for one month. After he saw many children dying and suffering, he was determined to make a change. Dunigan established AidChild as a hospice center and pediatric facility. Today, more than 3,000 children receive treatment through their services, including laboratories, clinics, and homes. AidChild is a social enterprise, meaning that they are driven by a social mission. They operate the Equation Gallery, an art gallery and café located on the equator, Ten Tables, a restaurant, and AidChild’s Terrace Club, a boutique hostel. All profit proceeds to helping children overcome disease, and 70% of their budget is covered by the profit.

Afte reading about AidChild, I feel more determined to play my part in making the world a better place. Dunigan had the courage to quit his job and sell all his belongings at the age of 26, with an initial investment of a mere $3,500 when he first moved to Uganda. He frequently stresses that if he could do it, then those who are more privileged than he was can do it too. Dunigan is a true social entrepreneur.

To read Nathaniel Dunigan’s blogs, click here. To read more about AidChild, click here.

“Working together, we must make a difference. We can make a difference.” – Nathaniel Dunigan

Reference:

• “Aidchild.” Wikipedia. Wikimedia Foundation, 11 Dec. 2012. Web. 15 Nov. 2012. <http://en.wikipedia.org/wiki/Aidchild>.
• Dunigan, Nathaniel. “Vote for Child Health & Wellness.” AidChild RSS. N.p., n.d. Web. 15 Nov. 2012. <http://aidchild.org/>.

Michael Porter argues that an organization’s strength ultimately falls into the categories of cost leadership or product/service differentiation. By applying these strengths, three strategies result: cost leadership, differentiation, and focus. (See Porter’s Generic Strategies)

Tim Hortons is a firm competing in the coffee and bakery industry, and is one of the most successful. According to this blog, they “provide their customers with a sense of national identity and pride.” In other words, their marketing strategy can be categorized in the “focus” section of Porter’s chart. Tim Hortons may not have the best of anything, but the emotional connection and brand loyalty they enjoy in Canada is exceptional. The title of Sally’s refers to Tim Hortons as a “Canadian Icon”, and so it should. Named after a Canadian Ice Hockey player, they have ingrained themselves into the Canadian culture. Although they may not offer any special product only unique to their store, they have focused on the Canadian consumer market and succeeded in building a coffee franchise empire.

“As Canadians, we’re a little bit insecure culturally, given U.S. media and cultural domination, whether it’s the CBC — our TV network — hockey [or] Olympic victory, we cling to our remaining cultural icons. Tim’s is one of them.” – Pete Blackshaw

Although the focus strategy is not the only way they compete in their industry, it is definitely one of the most prominent strategy.

Reference:

• “Sally Chen’s Blog.” Sally Chen’s Blog. Sally Chen, 24 Sept. 2012. Web. 09 Oct. 2012. <https://blogs.ubc.ca/sallychen/>.
• “Porter’s Generic Strategies.” Porter’s Generic Strategies. N.p., n.d. Web. 09 Oct. 2012. <http://www.quickmba.com/strategy/generic.shtml>.
• “Why Do Canadians Love Tim Hortons So Much? – Coffee Blog.” Why Do Canadians Love Tim Hortons So Much? – Coffee Blog. N.p., n.d. Web. 09 Oct. 2012. <http://www.wired.ca/why-do-canadians-love-tim-hortons-so-much-022022.php>.

McDonald’s is the world’s largest fast food restaurant, serving customers in 119 different countries. 

Why is the franchise so successful? As the current CEO put it, “McDonald’s success thrives on adapting to consumer demands.”  For example, they introduced the “Filet-o-Fish” in 1963 in Cincinnati for the Catholics who did not eat meat on Fridays, which eventually became a part of the standard menu. In addition to providing free wi-fi with Nintendo and starting their first delivery service in Singapore, they also were one of the first franchise restaurants to offer nutrition information on their food. Now, they offer salad and other healthier options (although the health issue is still questionable…) Nevertheless, McDonalds has strived through economic booms and recessions, and although their food may not be as healthy as Subway’s sandwiches, McDonald’s ability to successfully react to consumer trends and establish their points of difference from other fast food franchises is something that earns the respect of all businessmen and women.

I chose to blog about McDonalds because of the discussion we had in class (9/27/2012) on Burger King expanding into Russia. I believe McDonalds to be the most dominant fast food franchise, especially because Glen Bell (founder of Taco Bell) and James McLamore (founder of Burger King) were both inspired by McDonalds as well.

For more information on how the current CEO runs the corporation, click here.

Reference:

In our recent assignment, we were asked to complete a live case study of a sports apparel company called LuluLemon. As part of our method to  recommend the CEO of the company whether she should expand LuluLemon geographically or increase their product line, we were introduced to two tools; the issue sorting tool, and the fishbone diagram.

The fishbone diagram looks like this:

The box at the very right of the diagram is where the event goes, and the diagram branches off to show how different causes lead to the event.Each cause then branches off into smaller sections that show factors that may influence these causes.

The issue sorting too looks like this:

This diagram allows us to see what the importance and urgency of things. The grid is divided into four sections, each one showing something important or unimportant, and urgent or not urgent. This diagram is commonly used by managers to analyze developments in the external environment.

We were asked to complete each of these diagrams in our groups in class. Our fishbone diagram was centered around a fictional issue of LuluLemon’s decrease in profit and margin. These are some of the causes we came up with:

• The economic crisis that the world faces right now
• The increase in the prices of material and manufacturing
• The increasing competition from other corporations, such as Nike and Under Armor
• The lawsuits that LLL has to file against those who infringe their patent rights

Personally, I thought that these diagrams were an excellent way of organizing our ideas into a comprehensible form. The issue sorting tool (priority matrix) was especially appealing to me, since I was introduced to this during my studies in High School. Instead of applying the diagram for business purposes, we used it for task management, but it was an effective tool nonetheless. For our future assignments where we are asked to conduct case studies, I will make sure to utilize these tools to their full extent.

Enbridge is planning to build what will be called the Northgate Pipeline. This oil pipeline will run from Alberta to Kitimat in BC, passing through vast expanse of nature.

There is a risk of the line rupturing and causing a natural disaster, ruining the natural environment of BC. Numerous organizations as well as residents of BC have been protesting against this new pipeline installment. These people believe that it is ethically wrong to put nature in subject to a potential disaster. However, the opposition argues that although the pipeline will be in BC, the oil inside it actually belongs to Alberta, and therefore, they hold the authority to build it. Meanwhile, the governments of the two states are currently having a dispute over the percentage of tax that will go to BC. Currently, BC is only expecting to receive 8.2% of the tax revenue.

Although many would argue against the establishment of the pipeline, I do not believe that this is ethically wrong. The new oil would create new jobs, contributing to the development of the economy in BC. Enbridge announced that they would be investing another $500 million in safety improvements, which should show that the company understands the implications that an oil spill might cause, and are taking measure to prevent it.

http://www.timescolonist.com/news/Pipeline+fuels+Alberta+clash+expert+says+target+should+Enbridge/6984078/story.html