A business education is extremely powerful. Although many people may associate business with the main objective of maximizing profits, the knowledge acquired at Sauder can be used in countless other beneficial ways, as demonstrated through the Arc Initiative. Even if the United Nations was fully funded, there are several reasons this global organization would still require organizations such as Arc. Firstly, a funded United Nations would not possess the analytical business skills that Arc brings. The Arc allows students who are currently developing their skills to execute what they are learning in the classroom: this concept is not present at the U.N.. Secondly, the U.N. is more focused on developing global partners for trade and increasing economic stability. Being such a large organization, even if they were fully funded, they would not be able to focus on such a micro basis, the way Arc has demonstrated. The United Nations would have difficulty improving the business model of Kassahun Baskets, showing how the business can increase profitability without the creation of a factory. The United Nations would have difficulty setting the time aside to teach Ms.Tesfage strategy map tools, demonstrating how she can operate a pastry business with know fixed costs. The Arc has been able to shape these struggling entrepreneurs into successes. However, the UN target is too large. With goals like battling HIV, they need groups like Arc to assist businesses on a micro-scale.
External Response: Penelope Trunk “How to Get a Career That Provides Stability”
Acclaimed business blogger, Penelope Trunk, discusses the challenges of receiving stable employment in the current market. Trunk concludes that in order to differentiate ourselves as the demand for labor evolves, we must focus on creativity and critical thinking, as machines and robots cannot replicate human instinct.
On a recent vacation to Chicago, my family and I dined in a restaurant where the majority of service, such as ordering and paying, was completed through a programmed Ipad. I could not help but wonder if servers are going to be replaced by machines. This concept of the changing labor market and our future employment decisions links to numerous class discussions on entrepreneurship. As I listened during the Sauder Alumni Day, I was very intrigued by the idea of starting my own business; however, Trunk‘s article and the difficulty the Sauder alumni are facing further emphasizes the lack of stability in a start-up company. I am confident that I would like to initially work for a well-known corporation and then, if I had a valuable idea in addition to the necessary skills to succeed, attempt to start my own business. This would be countering Trunk’s advice: find a place of work that guarantees long-term employment; however, I feel some cannot spend their entire life climbing the corporate latter. Trunk’s advice is similar to Jennifer from Sip Soda: “you should only start a business if it is profitable from the beginning”. In today’s technology dominated market, this guideline is nearly impossible and stability is never a guarantee.
Reference:http://blog.penelopetrunk.com/2014/11/04/career-paths-that-provide-the-most-stability/
E-Commerce Revolution: Respose to Andrew Coe
A blog by a fellow classmate of mine, Andrew Coe, suggested social media is currently having the largest impact on business. Although I understand how social media is transforming current business, I believe the effects are minimal, in comparision to those of e-commerce. E-commerce is able to transform business, making it effective and efficient. In class, we discussed the power of Dell’s four day inventory and that having a large inventory can create issues: to me the most powerful tool e-commerce businesses have adapted is sourcing and then purchasing merchandise once it has been bought by the consumer, completely eliminating the inventory issue that every commercial business is faced with. Andrew suggested that through social media, businesses could improve marketing by “relating trending world-wide topics to their product”; however, I envision social media as an opportunity for the growth of e-commerce. Analysts and IT can gain advanced analytic information through social media that can then be used to target and market on e-commerce websites. This emphasizes the growing and emerging connection between IT and marketing.
However, e-commerce is coming at the cost of our community. Accoding to an article in Forbes, small sized businesses cannot compete with those that have adapted multi-channel integration as they lack the convenience and variety that e-commerce offers. How can you compete with the 365 day full-refund return policy of Zappos?
As businesses continue to grow and develop during the current technological revolution, social-media must be used to connect and help market products; however, the information learned through social media can be put towards something more valuable: e-commerce. With a young target audience and a rising m-commerce market, online business has only just begun.
http://www.forbes.com/sites/ciocentral/2013/03/13/the-future-of-e-commerce-for-small-businesses/
Tangoo and Naked Coconuts: response to Nick Tse
After listening to three pioneering guest speakers discuss entrepreneurship, I am now aware of the grit needed for success in the competitive Canadian market: as Paul Davidescu from Tangoo stated, “you must to be willing to work from 7am-11pm!” I am responding to Nick Tse’s blog post.
Nick Tse and I both believe that Tangoo is an innovative idea that can help indecisive people enjoy an evening out. Although Nick states the App is capable of planning quality nights, I question the ability of computers to generate cohesive evenings that are entertaining and reliable. Furthermore, Nick alluded to the lack of current profitability being an issue for Tangoo. I agree and am not convinced restaurants will be willing to pay for advertising on the App, since there are already ample existing marketing opportunities for restaurants and people expect advertising on social media to be free. Additionally, Paul has created his company with sweat-equity: if his employees are not receiving financial compensation for their work, they may develop a lack of intrinsic motivation
With regards to Naked Coconuts, Nick mentioned that the brand can attribute much of their success to their clear defined value propositions: their website states they stand for honesty and quality. Since the product is being outsourced and purchased offshore, this may negate one of Paul’s core values, as he cannot be aware of the quality of ingredients entering the product. He may also have trouble keeping up with the supplier’s factory conditions and ethics.Regardless of the notable internal issues, it is apparent the entrepreneurs that we listened to have bright futures and are going to be successful as they continue to transform their innovative business models and establish a clear brand image.
References:http://www.nakedcoconuts.com/
Will This be the Death of a Canadian Icon?
The proposed acquisition of Tim Hortons by Burger King will be the largest leveraged buyout of a Canadian-American restaurant chain and will make the merged entity the third largest fast-food company worldwide. The debate continues as to whether this is advantageous for Canadian Tim Hortons. I feel the merger will have adverse consequences to both brand images. It appears the relocation of corporate head quarters to Canada is a “tax inversion play” solely for tax avoidance purposes in the U.S.
From a management perspective, profit maximization tends to be the driving force behind a deal. Burger King is positioned in a highly competitive fast-food industry, with minimal product differentiation, so I understand why this deal is tempting. This deal has the possibility of backfiring. Firstly, the proposed “tax-evasion” scheme is unethical, disrupting the economy. Consumers may undertake a boycotting regime of the merged company, as there are ample substitute products. Secondly, the take-over of Tim Hortons by an American company destroys their value proposition and their successful patriotic All Canadian corporate and brand image they have worked hard to portray. Thirdly, the negative consequences that 3G Capital will implement on Tim Hortons possess the power to impact the company and the economy, with the restructuring of corporate internal management. Additionally, Burger King’s cost-driven business model has potential to harm Tim Hortons small business franchise owners who are trying to maximize their profits. Tim Hortons needs to ensure their business priorities and values are maintained if this take-over goes ahead and is to be a success.
Work Cited: http://www.cbc.ca/news/business/tim-hortons-takeover-by-burger-king-may-be-bad-for-canada-study-1.2818036
The Beauty of a One-Service Business Model
Vancouver’s Bombay Brow Bar small business entrepreneurs, Ravy Meroke and Amy Minhas, have capitalized on the one service business model providing one affordable luxury service, eyebrow aesthetics, with a low enough price point. This value driven micro beauty bar minimizes the most challenging aspect of starting a business: time management and financing.
Businesses offering multiple services require additional specialized employees, increased start up and variable costs. The one service model capitalizes on minimal start up and lease costs. Retail space has been limited to 250-650 square feet based on the lease model to ensure adequate return on the investment. The one service model can benefit from the rising retail rent costs and lack of space in the downtown core. Commercial leasing agents would be well-advised to consider the success and growth of one-service micro-retail, as dividing up larger hard to lease retail spaces into smaller micro spaces for single personal services will provide leasing solutions.
Bombay Brow Bar is positioning itself distinctively in the highly competitive beauty market. Providing a single service captures a unique niche target audience.This may illustrate disruptive innovation and lead to a transformation of the beauty industry. Their goal is to become “the next leading global beauty concept” and with 3 premier locations, including a high-end downtown hotel, they are on their way. This one service business innovation has taken hold and is here to stay.
Works cited:
http://smallbusinessbc.ca/around-bc/meet-ravy-minhas-mehroke-and-amy-minhas-bombay-brow-bar
California Drought Pushes Food Prices Higher, Making Life Tougher for Some but Creating Business Advantages for Others
With produce prices rising as much as much as 34%, the effects of the California drought are placing pressure on British Columbia’s agriculture market. A reduction in disposable income is forecasted $30-60/month, to maintain the current level of consumption.
I believe the trend towards sustainable local and organic food production, combined with a dwindling supply of affordable fruits and vegetables, has led to entrepreneurial opportunities for British Columbia’s farmers and investors. Historically, a start up produce-company would finance via bootstrapping or sweat equity in a declining agricultural market, but I have confidence that in the current market, local governments would be more inclined to assist with incentives and banks willing to finance farmland business ventures. For the first time in our generation, the local agriculture market is able to expand and provide a competitive advantage over international produce markets, such as in the United States. With a new reliance on our current agriculture production, there should be a trend of moving away from under-utilizing land by developing our best farmland into box stores, and industrial parks. Instead, we should focus on job creation within the rising agriculture market and emphasize nationally produced agriculture. Drought will persist with global warming. As a result, I believe we are witnessing an influx of real estate investors into farmland in Western Canada, where investors are receiving positive cash-flow.
This focus on increased national agricultural production is a “win- win” for the economy. Increased sustainability of agriculture, entrepreneurial opportunities, job creation and a reduction of importing expenses will inject finances back into the local economy and offset the negative impact of the ongoing California drought.
References: http://www.vancouversun.com/health/California+drought+pushes+local+food+prices+higher+with+video/10278895/story.html
http://www.bloomberg.com/news/2014-08-11/california-drought-transforms-global-food-market.htm
A New Form of Communication
In June of 2014, the Supreme Court of Canada granted the Tsilhqot’in people title to 1750 square kilometers of land West of Williams Lake: this has already created an unexpected impact on resource development in the interior of British Columbia. If the Aboriginal land claim is further extended, business for the Taseko Mines will become extremely intricate seeing as they will need to go through the First Nations Government for any negotiation. This highlights the need for businesses to create and maintain effective and cohesive relationships with the First Nations. After looking at what has happened between the Western Bands and Enbridge, I realize an agreement between the Taseko the Tsilhqot’in would be time consuming and expensive.
Businesses who operate close to aboriginal land often face difficult tasks. It appears developers who are attempting to seek approval on projects inside Aboriginal borders will be forced to go through a “new” process, often ending in the developers providing financial compensation for the ability to use the land. Instead, I feel companies, such as Taseko should create value for aboriginal stakeholders. Regardless, in todays changing environment, companies are forced to learn to negotiate directly with aboriginals, creating the need for actual relationships.
In response to:
http://www.vancouversun.com/news/metro/Unilateral+park+declared+Tsilhqot+includes+Prosperity+mine/10192766/story.html
Bike Lanes in the City
With the creation of bike lanes, Vancouver has witnessed a transformation. These lanes have helped transform Vancouver into a green city by encouraging clean, easy, healthy transportation. However, they have also eliminated retail parking, creating issues for the businesses along the lanes. For example, for Brascia’s Tailors and Menswear on Hornby Street, the bike lane has sapped away customers as people can no longer park in front the store. In my opinion, the government doesn’t seem to care about the negative impact to the businesses such as the estimated 2.4 million dollar annual loss for the stores along Hornby.
Being a city which encourages entrepreneurship and small business, it bewilders me that the municipal government has not reached out to help the businesses affected by the loss of the parking. I think the mayor and city counsellors should do two things. Firstly, if the businesses can provide proof with their historical balance sheets that the lanes truly are impacting their business negatively, then some form of compensation may be warranted. This could be in the form of a property tax break. Relief from crippling high property tax on commercial retail spaces would be a welcome jester. Secondly, from a marketing standpoint, having cyclists riding past your store could be viewed as an incredible opportunity. Perhaps these stores would benefit from the chance to meet with a marketer who could show the businesses how make their store stand out to the cyclists. For example, for Union Street Cycle, they now have thousands of citizens within their target audience riding past every day; however, they report no financial benefits.
In response to
Vancouver Sun-Jury Out on Impact of Cycling Routes: Jeff Lee
http://kwantlenchronicle.ca/beyondnews/bike-lanes-controversial-even-among-cyclists-second-in-a-series/
Norstoms Bright Future
While the majority of major department stores are on the decline, Nordstroms in one of the few companies that continues to expand, within the US and even into international markets. You may be wondering, how has such a standardized clothing store been able to differentiate itself during such challenging times? After reading several articles, my analysis shows that Nordstroms is doing two things correct. First of all, they have four revenue streams, unlike most companies, who have a mere two. With their main store, the discount rack and affiliate online stores for both, they have a multi-channel approach that allows there company to appeal to a mass-market as they have can attract both upper and middle-class consumers. Additionally, with the rack, the possibility of putting merchandise back into inventory becomes eliminated. The main stores also do not have to waste space on “sales” as discount good are often located a few blocks away, at the rack location. In fact, this method is so successful that Nordstroms CMO predicts that they will create 8 more rack stores in the next year.
Secondly, Nordstrom’s is focusing on creating value with their customers. At stores such as JC Penny and Winners, it is an arduous task receiving assistance while in the store; however, this is not the case at Nordstrom’s where one-on-one assistance is not rare. If Nordstrums continues with their current business plan, their future looks bright.
