Courtesy of www.greencarreports.com
North American oil prices are finally lower, however it is the Canadian economy that is suffering from this price decrease. By next spring oil prices are expected to go down to as much as $70 per barrel compared to around $100 which is what they were priced at previously. Although drivers are relieved, according to Capital Economics, the recent decline in oil prices will generate a loss of 2.5 billion annually for Canadian oil producers.
However it isn’t all bad for Canada, since the loonie is currently struggling and oil is dealt in US dollars, Canadian companies are getting more US dollars for their oil which is reducing the money lost. Also, in the long run I believe that this may be beneficial for the Canadian economy because it could increase the non oil imports that Canada receives. Since Canadian’s are also saving money with lower gas prices, I believe that over time it will help the Canadian Dollar grow because as time goes on so will the value of the money of Canadian’s. With that being said if the market decides to raise gas prices to make up for lost profit, I believe that it could lead to economic unrest in Canada which could eventually cause Canadian’s to find alternatives for oil and gas.
Early Thursday Morning, CEO of Rogers Communication Inc. Guy Laurence responded to Bell Canada Enterprises complaint regarding the hockey broadcast regulations in Canada claiming that they are trying to “stifle innovation.” Back in November of 2013 Rogers signed a 12 year deal which granted them rights to all NHL games. Since the NHL season has started Rogers has offered the ability for hockey fans across Canada to watch hockey unlike ever before, with an interactive service that allows viewers to watch from a variety of camera angles. However there is a catch, you must be a Rogers customer and as a result Bell has filed a complaint to the Canadian Radio-Television and Telecommunications Commission.
I believe that since Rogers has bought the rights to the games they should also have the rights to control how they wish to distribute their content. For Rogers this has been a huge investment which has affected their profit in the third quarter, and Rogers believes it is a necessary step in order for the business to grow and ultimately attract more internet or wireless customers. I agree with Rogers’ plan moving forward however I believe that in order for this goal of theirs to be possible they must continue to control the viewing rights and distribution of content as well. If Bell or any other company was to seize control of this, they would either take or maintain all the customers that Rogers is trying to acquire with their deal with the NHL.
Canadian electric company BC Hydro has aspirations of constructing a $8 Billion project which they hope will increase British Columbia’s energy capacity. However, many aboriginal communities in the surrounding areas are concerned because they believe that the project will create significant issues regarding fishing opportunities as well as the aboriginal way of life. As a result of this the aboriginal chiefs are urging Prime Minister Harper to reject the request from BC Hydro.
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The Aboriginal Community in British Columbia is going against BC Hydro and this significantly affects BC Hydros plan to follow through with this project. Although in the long run this project can prove beneficial for British Columbians, I believe that ethically, it is not the right thing for BC Hydro to do. Part of running a good and successful business is practicing good ethics and I believe that BC Hydro should take a step back and think of other ways that will be beneficial for both themselves and the Aboriginal Community. This protest from the Aboriginal community is causing BC Hydro to rethink there business plan in order to satisfy the needs of the First Nations, British Columbians and themselves as well, which will ultimately be the best business decision moving forward.
Jacqueline Yan’s blog post was about the effect of technology on the retail market, specifically focusing on its negative effect on malls. In her post Jacqueline talked about how online shopping and banking effects customer circulation in malls since most people find it more convenient to do all their tasks online.
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In her post, Jacqueline says that malls need to re-think their business plans in order to maintain flow of customers and I completely agree. Although I personally prefer to do my shopping in person, I have many friends and relatives who use the Internet and mobile apps in order to fulfill their consumer needs. If companies and stores fail to appeal to the rapidly changing consumer market, they could ultimately lose revenue because consumers will see no need to go to stores when they can just do it instantly anywhere. Along with what Jacqueline said, I believe that it is also important for these companies to create a pull factor that will attract customers to come into stores to get items instead of doing everything online.
If these companies which to remain a competitor in the industry they must be able to constantly reconfigure their business strategies to in order to contribute to customer experience and attract business as well. These stores should create unique experiences that will only be available to those who come into the store. An example of this could be clothing customization and tailoring for a clothing store. This would persuade customers to come in store in order to fulfill their needs.