Alessandro Bisol's Blog

This blog is going to be a bit shorter than usual, but it will definitely make you think.

There’s a dark side to business in today’s world. Despite heavy regulatory pressure imposed by governments worldwide, there are many instances where companies with enough monopoly power indulge in unethical behavior, with aims to seize much larger profits.

Their typical excuse is that they have to stay in business, but is it really worth ripping off the consumer that much?For instance, a CEO of a pharmaceutical company called Martin Shkreli raised the price of its effective HIV drug by 5,500%. On top of this, there are other companies that buy out older drugs and then just raise the price. Cycloserine in an example; it is a drug used to treat tuberculosis.

This really makes us question the moral and ethical foundations of such firms, and of the business world in general. Aren’t we supposed to evolve from corporate social responsibility (CSR) to creating shared values (CSV)? And how can we even make that evolution if we can’t achieve the minimum level corporate social responsibility? We have reached a point where businesses in today’s time exploit the power they gain from creating unique cures to fatal diseases and allergies. They intentionally hold back the supply of these drugs to force their prices to skyrocket, enabling much greater returns. While these companies enjoy their glamorous profits, the consumers who suffer from these deadly sicknesses are forced to pay a price that they usually can’t afford, and have to make even more sacrifices than they already are making.

Another example of such behaviour was mentioned on Celine Liu’s Blog, where the author spoke about the sharp increase in the price of the EpiPen, which is a product used to treat severe allergies. Their prices shot up to $640 in 2016 form $100 in 2007, which is a 540% jump. I completely agree with the author’s opinion that “companies cannot take advantage of a condition that other people cannot control”. These firms need to be think less about monetary gains, and instead pursue sustainable and community-friendly growth.

Ultimately, it all begins with us, because in the end, businesses are just people. And it we can’t stop being selfish and money-minded, we will eventually fall down a very deep and dark hole that won’t be easy to get out of.

 

Word count: 394

 

References:

New York Times – Drug goes from $13.50 a tablet to $750, overnight. 

Independent –  Martin Shkreli: The ‘most hated man in America’ is raising the price of another form of drug

Celine Liu’s Blog – EpiPen prices spike through the roof

One of the most amazing developments we’ve made in the past is the discovery of the internet. It has enabled us to connect people together in real time from all across the globe, which is a huge deal. We can have a conversation with someone in real time who’s literally poles apart.

There is so much potential tied to this technology, that it started being seen as a threat, and therefore governments began imposing regulations, thus limiting what someone can actually do.

Nonetheless, we all know that whenever rules are applied to something, there are always a group of people that don’t want to listen. This sparked the creation of the Dark Web, a large and sophisticated network, like the internet. But this had no rules, no restrictions, no governments overlooking everything. On this network, people can legitimately buy anything, ranging from drugs to sex slaves.

How could we possibly buy things like these without anyone else knowing? The answer: Digital currency. This type of money flows in large, decentralised networks using fancy technology called blockchain technology.

This means that there is no central bank controlling the supply of the currency, and all transaction records are held by all the entities on the network. When a new transaction takes place, all the different entities on the server will check their old records to validate the new transaction.

I recently found an article on the New York Times discussing how DJ Khaled, a famous producer and rapper, and Floyd Mayweather, a world renowned boxer, have endorsed a start-up company called Centra Tech that has created their own crypto currency: Centra. Not only that, but they’re also stepping forward with introducing a debit card that is designed for use with compatibility on 8+ major cryptocurrencies blockchain assets. These include two of the most popular: Bitcoin and Ethereum.

So what does this all mean? Clearly, the industry for digital currency is expanding, and many people have started to take advantage. However, my advice is to be careful, because there are risks associated with this shady business. Firstly, it is shady business. None of this is government regulated, so legal restraints could affect the value of the digital currencies.

Ultimately, many people are investing in up-coming crypto currencies because it’s a good idea, but if you wish to do the same, then I suggest investing in Centra as well, mostly because of the fact that celebrities are endorsing them. This will attract a great deal of attention to this particular currency, encouraging more people to invest in it, subsequently increasing its value.

 

Word count: 428

 

External references:

https://blockgeeks.com/guides/what-is-blockchain-technology/

https://blockgeeks.com/guides/what-is-cryptocurrency/

New York Times Article:

 

Two British billionaires have taken on the challenge of breaking into the automobile market, by introducing what they believe is the “spiritual successor” to Jaguar Land Rover’s Defender. After the last unit of the car was produced in “January 2016”, James Dyson and Jim Ratcliffe were inspired to preserve the military ruggedness of the Defender by launching their own complex electrically-powered model. My question: can they really just walk into such a large, competitive industry and succeed?

Let’s find out.

Their BHAGs (Big Hairy Audacious Goals) in one line: Launch a modern, electric and utilitarian model of the Jaguar Land Rover Defender, preserving the boxy, rugged design.

Now, let’s take a look at their most obvious obstacles: They are going to be competing with tech giants like Tesla, who already dominate a significant proportion of the market share for electrically-powered vehicles. This is going to exert serious pressure on the two ambitious entrepreneurs, as Tesla constantly invests on research and innovation, enabling them to adapt quickly and responsively to market forces, such as changes in consumer preferences.

On top of this, they have several other fundamental steps to take, if they want to triumph. They will have to establish a dealer network so they can actually sell their model to the buyers.  They will also need to include updates to their design that meet global safety standards.

Most importantly, they need to exercise effective and successful marketing, in order to achieve a profitable level of sales. Ferdinand Dudenhöffer, director of CAR centre at the University of Duisburg-Essen in Germany, explained that only a minor group of car-enthusiasts will buy the car, but eventually, it would  “become a niche which gets smaller over time.”

However, we shouldn’t forget that these two gentlemen are also heavily loaded with money, and they each have their own special set of skills. Mr. Ratcliffe, for instance, has bought old chemical plants that other companies wanted to abandon, and ran them more efficiently, giving them the advantage of experience. Also, with so much money, they essentially have access to a very wide range of resources.

On the other hand, Mr. Dyson’s set of skills lie in his innovative and inventive abilities with technology. His praiseworthy reputation is reflected in his success with “high-end vacuum cleaners and other products like hair dryers”. This might help them create a high-quality product at relatively cheaper costs.

Ultimately, the two experienced entrepreneurs saw a blank space in the market, and seized their opportunity. But will they sell enough units for them to profit? Perhaps, if they nail it every single step of the way. But only time will tell.

 

Word count:  439

References:

https://www.nytimes.com/2017/10/12/automobiles/wheels/startup-car-markers.html?rref=collection%2Fsectioncollection%2Fbusiness&action=click&contentCollection=business&region=rank&module=package&version=highlights&contentPlacement=1&pgtype=sectionfront

 

 

 

 

 

 

 

 

 

Today I found a blog about a man called Richard Lazazzera, who successfully launched an entire online t-shirt business under 24 hours, and eared himself a hefty profit of $ 210, within that time-span—Impressive.

 

The man himself is also the author of this blog, which brings me to my main point: the fact that he blogged about his experience and explained every important step he took is, in my opinion, highly admirable.

 

Very often, people find it very difficult to start something new, especially young entrepreneurs looking to kick start a new business. The lack of experience can be very intimidating, but blogs like this one, which present the reader with a perspective of starting a business from scratch, can provide clarity and understanding to the youth, instilling confidence to start doing it themselves.

 

Also, apart from inspiring self-assurance, this blog served as a great source of useful tips and tricks to help navigate the business world. For instance, the author really stressed on organization and planning, which is fundamental to accomplishing any sort of endeavor. It is also clear that he is well calculated, because throughout his blog we see that he planned every little detail, like how much time he’d devote to thinking of the site’s title.

 

At the same time, it is always important to know that this blog is only a documentation of a specific situation, and not a universal set of instructions that can be applies on any start-up business plan. Lazazzera is only presenting the readers with his personal experience, and he’s highlighting what he thinks is important, and what he thinks the best approach to a start-up is.

 

A great way to learn is through observation, and blogs like these can really help others who are struggling to find the confidence to start. Not all people are that brave. But only observing doesn’t cut it. You have to throw yourself in and learn from experience, because in the end, that’s the best way to learn. The author says this himself at the end of the blog too, which is also ironic in a way.

Here’s the link of his blog: https://www.abetterlemonadestand.com/how-to-start-an-online-tshirt-business-24-hour-guide-challenge/

 

 

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