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Monthly Archives: September 2013

 

In Barrie McKenna’s article, we  are forced to acknowledge the bitter fact that Canada’s biggest technology firm, BlackBerry Ltd., is bound to be bought by foreigners. Similar to what we discussed in class, BB’s “prized intellectual property risks leaving the country” (para. 1). From a nation-wide perspective, BB has contributed significantly to Canada in terms of generating patents and tax credits. Needless to say, BB’s activities result in the flow of millions to billions of dollars.

From learning about the business canvas model, it is apparent BB has failed to deliver its value propositions to its desired customer segments effectively enough to generate profitable revenue streams. Blackberry has failed to notably innovate.

While the government can try its best to save the famous Canadian company, buyers are readying for the acquisition process. Conversely, the Canadian government has simply not done enough to encourage research and development firms in the country. Our country pays out “$4.5-billion more a year in licensing fees to foreigners than it collects from others” (para. 13). Blackberry easily broke barriers-to-entry only to fall back out.

 

http://www.theglobeandmail.com/report-on-business/dont-expect-blackberrys-patents-to-stay-in-canada/article14594494/

Nike, an international well-known brand, certainly has a good reputation of making stylish sportswear and comfortable shoes. However, who would have thought that a company as big as Nike has done so little if not nothing in terms of providing a safe and fair working environment for their workers. Although the company makes more than millions of profit a year, the profit margin apparently does not satisfy the shareholders of Nike. Desperate to increase their profit margin, Nike in recent years has moved a large portion of their factories overseas to circumvent the strict working regulations within the United States. Since the third world countries such as Vietnam, Indonesia, and India provide access to readily abundant cheap labor, Nike could now reap the benefit of the United States consumer market, while keeping their costs extremely low in offshore production.

In recent years, Nike has been accused of treating factory workers very harshly, stripping away worker’s basic human rights. A former Nike factory worker has recently spoke out against Nike, claiming that workers are often abused physically and mentally by their supervisors at work. “Supervisors frequently throw shoes at them, slap them in the face, kick them and call them dogs and pigs”, says a worker in Indonesia. Mentally abused to the point where some of them did not want to speak up against the bad things that were happening to them, as one of the workers was actually fired after she spoke out against Nike.

While on an economic stand point, it is totally understandable as to why big corporations like Nike are trying to take advantage of the cheap labour cost in third world countries. On a Business ethic stand point, judging by the way they are treating their workers, its organization management is undoubtedly questionable. There has already been a growing concern and hatred among the consumers in recent years. If Nike does not show signs of change or improvement anytime soon, a boycott on Nike is likely going to happen.

http://www.dailymail.co.uk/news/article-2014325/Nike-workers-kicked-slapped-verbally-abused-factories-making-Converse-line-Indonesia.html

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