Arc initiative is a program that Sauder School of Business alumni and faculty has created to exchange business skills and knowledge with developing countries such as South Africa, Ethiopia, Colombia and Rwanda. Even if the United Nations was fully funded, it would still be important to have this program to help the poor.

Funds are just a short term solution in any situation. If you do not have the skills to use the money effectively, and only know how to spend it, the fund is going to run out sooner or later. By only funding the poor and not educate them enough would not make them become independent. This means they would always need help, and it may result in an endless cycle. Which is why Arc initiative and social enterprise is useful. Helping developing countries with business skills and knowledge would bring wealth to the country by themselves, which is a long term solution. They need to learn how to use their asset in the right way to they can generate more using their initial money. Therefore, using the short term solution (funds) and the long term solution (arc initiative and social enterprises), the developing countries will slowly get out of the vicious cycle, poverty, poor, and war.

Sources:

http://www.sauder.ubc.ca/Global_Reach/ARC_Initiative

Upward Arc

I found this blog related to entrepreneurship, a startup company named Hootsuite. They are another type of social media website, but different. They have created a niche market- social media innovation games. They realized that there is a huge growth potential in the social media market. Social media is one of the most important way of communication in millennial. Hootsuite started up their business by having a partnership with Twitter. They then used government funds, as well as business angles after becoming an independent corporation.

To me, innovative entrepreneurship is one of the hardest yet very important aspect in any industries. They give the corporation a niche, a unique selling point, and something new to the market. This may also lead to disruptive innovation. I personally would want to start up my own business in the future, but there are a lot of aspects to consider and difficulties that may stop me. After reading this blog entry, it has affected me on how I will start up my own business. Innovative and creative entrepreneur will be one of the hardest among all the others. There are so many problems that could go in the way. Is there a very high barriers to entry in the market? Does the market still have growth potential? Are there too many rivalries? Where am I going to get my funds from?  But Hootsuite has also made me realize that with such a simple and innovative idea, could lead to big success.

Sources:

http://eprojects.ca/local-startup-hootsuite-makes-social-media-a-suite-experience/

http://eprojects.ca/wp-content/uploads/2014/10/Community.png

An iWatch? Or a Rolex?

After reading Vanessa’s blog entry on Apple’s new product iWatch, I have some thoughts I would like to share. I do not agree with Vanessa’s opinion that iWatch is not going to affect the demand for Swiss watches. In my opinion, iWatch is going to change the entire watch industry. Certainly, it is not going to swipe out the Swiss watch industry, but it will have a huge impact on it. iWatch not only show the time, but it has many other uses such as apps, tracking daily exercises, having it connected to phones,  music, and so on. They are not just revolutionizing watches, but also payment processes that could be connected to the watch. They can simply swipe the watch in front of the credit machine for payments. So many of these events wouldn’t be done by a simple Swiss watch. Sure, a Rolex watch will reflect on your status, but having an iWatch will also show that you are in the fashion, the new trend in the generation.

In my opinion, iWatch will become a disruptive innovation in the watch industry. “It is going to change the way people view watches.” Says Tim Cook, the CEO of Apple. However, since Rolex is the “classic” and shows the highest status of a person, the product would not become obsolete, but would definitely have a decrease in revenue for Swiss watch.

Bibliography:

http://www.forbes.com/fdc/welcome_mjx.shtml

http://www.rolex.com/watches/baselworld-2014/new-rolex-datejust-pearlmaster-34.html

After reading Danny Jung’s blog entry on Starbucks, I have some comments I would like to elaborate more on. As being said that Starbucks is the “most often expensed food and beverage brand in 2014”, there are many reasons behind the success of Starbucks. I completely agree with what Danny has said in his blog: differentiation of products, high speed of free wifi, as well as fast service skills employees provides. However, I would also like to mention on the marketing strategies that Starbucks has used to become a company with one of the best corporate image as well as services.

In my opinion, Starbucks in a sense is creating massive customization for every individuals that has walked in to the store with such short time period. When you purchase a drink, you could have your very own coffee with special sauce in, or low sugar, fat free, or even add creme to go with your drink. All of this could be done in Starbucks without having to have additional charges. Before you pay your bill, they would kindly ask for your name and write it on the cup. Such little details are actually making big differences (as being mentioned in the previous blog entry). As being a personal experienced customer and with my friends who constantly purchase Starbucks goods, we would take pictures of your drink with our names shown in the pictures. We would not take a picture of our Tim Hortons coffee and upload on to Facebook. As being said in Danny Jung’s blog, Starbucks is well aware of their main customer segments are businessmen and students, therefore having customer’s own customized drink make them feel “special” and satisfy their utility.

Bibliography:

Starbucks Trends

http://www.authorstream.com/Presentation/anuj.jimj-1317719-strategic-alliance-of-starbucks-and-tata-coffee/

Nowadays, it is being said that the corporate image itself is more important than the actual good or service the corporation produces. According to research, “invest in a company is driven 60% by their perceptions of the company, and only 40% by their perceptions of the products Kasper Ulf Nielsen).” As an example of a corporation being considerate of the sustainable development, Samsung’s using energy-efficient microwaves and solar-powered netbooks to improve on the environmental aspect of sustainable development.

Samsung is the #1 television maker as well as the second-biggest mobile phone maker in the world. But this does not prove that they are a very good company. What makes a good company is when even though they are one of the most successful companies in the world, they are still caring about the world, the environment, and the next generation. Having a change in improving sustainable development may benefit the company in many ways. It reflects on the corporation image, enhances brand loyalty, as well as making customers feel safe and trusting the brand. On the other hand, the internal stakeholders would benefit from it as well. Employees may feel proud of their company and they are part of the “group” of making a difference in the world.

Bibliography:

http://www.forbes.com/sites/jacquelynsmith/2012/12/10/the-companies-with-the-best-csr-reputations/

Samsung Using its Power to Advance Sustainable Development

As we all know Taylor Swift is a country-turned-pop star on a young age of 24. Taylor Swift has used the Social Media as a Marketing strategy for her career. All of her advertisements are being posted on her Twitter, Instagram, Facebook, and Tumblr accounts. She uses online payments for concert ticket sales as well as seat choices.

It is a very smart choice of using the social media as a strategy in several reasons. Internet has been the most popular tool people uses in this generation. Using this above-the-line advertisement strategy not only reduces a massive amount of cost for other commercials, but also gains even more publicity. Taylor Swift seek this opportunity and used her resources efficiently more than any one else  She knows exactly what her target segment is, which are mostly teenagers or young adults, who spends most of their time surfing online or using internet. Businesses can use this strategy too. It is very important that the company knows what their customers are, and use this as an advantage of advertising and having marketing strategies in the most effective way possible. Taylor Swift seek this opportunity and used her resources efficiently more than any one else did. She knows exactly what her target segment is, which are mostly teenagers or young adults, who spends most of their time surfing online or using internet. Businesses can use this strategy too. Sometimes it is the little details that really makes a difference.

Bibliography:

http://www.businessnewsdaily.com/7407-taylor-swift-tumblr.html

This article is about three parties with the interaction of hydroelectric trying to build a dam but locals are arguing that building it would flood the land. The government is still pending on making decisions.

The external factor for the company is that the local people are concerned with the flooding of the environment. BC Hydro’s argument is that they will create more jobs for the environment. But the group is also concerned that they want a smaller scale of activities for sustainable jobs. This issue could strongly effect the company if they don’t make any changes. Even if the government do approve to proceed the procedure, the group may go on protests, and the company will result in having a bad corporate social image. On the social aspects, by having more protestors, the firm will gain more brand awareness, but will have negative impacts on the company and become a threat. CSR (corporate social responsibility) is a very important aspect in the company, if external stakeholders think the company is being considerate of the environment, they would trust the brand more than other firms that focuses on profit only.

Therefore, in my opinion, BC hydro should consider the CSR and have an alternative solution that would make the local satisfied with their choices, or else it may cause more troubles.

Sources:

http://www.vancouversun.com/news/First+Nation+chiefs+stage+Site+showdown/10215965/story.html#ixzz3FQnfEfEv

 (source: http://au.ibtimes.com/articles/566777/20140918/samsung-galaxy-note-4-blackberry-passport.htm#.VDHKUV6fttU)

BlackBerry has launched a new Passport with a bigger screen, lower cost than rivals, a keyboard, and a longer battery running hours than most rivals. (See more information at http://www.theglobeandmail.com/report-on-business/top-business-stories/blackberrys-chen-on-new-passport-big-screen-lower-cost-than-iphone/article20718050/).

This article interests me because it differs from what smartphones looks like these days, huge touch screens with only a few buttons to push. However, the company is willing to have a USP (unique selling point). To “risk” yourself by having unique designs, or to “go with the flow” of what is most popular in the current market? This is a huge debatable decision to make and it could become a success or a failure just by this one decision.

Blackberry chooses to be “risky” and not follow the trend while still capturing the key aspects customers likes. It has a lower price than iPhone, ($599 for BlackBerry), with a 36 hour battery, having a bigger screen that could view 60 characters in a roll which iPhones cannot do, while still having an elegant design.

In my opinion, they have made a few good decisions. First, it is more unique than other smartphones of all the characteristics stated above and more. Secondly, selling it at a lower price may attract more customers while still having very good features that iPhone doesn’t. And last but not the least, it has an elegant design of having a thin and wide screen that creates a more modern look.

As you all may know the current politic issue between China and Hong Kong on the protest about the future territory. Cantonese people accused China for seriously assaulting Hong Kong’s tradition of rule of law, disrupting Hong Kong’s social order, and affecting the lives of the Hong Kong public.”

This incident seems to be effecting the politics aspect between the two countries. However, this also effects on the economic aspects. Being at a deadlock between them will definitely affect on their relationships, hence, economic wise, their “partnership” (as an example) in GDP will be separated. According to CBC News, up to 2/3 of the international investment in China was from Hong Kong. This means that China’s GDP will be significantly effected if Hong Kong’s protest succeeded.

However, even though the downside for China will have a decrease in profit in the short-run, as the country is becoming a developed country, the economic in the long-term will keep on increasing even without Hong Kong’s support. In my opinion, Hong Kong may face a bigger problem of having a higher risk than China since China spreads their risks domestically and internationally. It is like a corporation who is already very strong internally and are still expanding externally, if one of the company fails, it won’t effect the company as severely comparing with a company that are not strong internally. Considering that most of the agricultural goods depends on China, Hong Kong may face some even bigger issues than what China might face in the future.

Sources:
http://www.businessweek.com/articles/2014-10-02/hong-kong-protests-peoples-daily-signals-hard-line-on-demonstrators

http://www.cbc.ca/news/business/why-china-might-be-willing-to-sacrifice-hong-kong-s-economy-don-pittis-1.2784555

I read the article on CBC about Costco made the decision to end the 15-year relationship with the American Express.

This decision has both positive and negative aspects.

By cutting off a choice customers could choose while paying could cause dissatisfaction to customers. This may create inconvenience for them because they may not have other credit cards. This would mean that they might have to go through all the trouble of creating new accounts just for grocery shopping. If I were a customer and I had to go through all the steps, if I am a lazy person I would go for another substitute company instead.

On the other hand, the good side is that the internal stakeholders may benefit from this decision. As being said that “Our relationship with Costco and the new Capital One Costco MasterCard represent that philosophy perfectly and aligns with our vision to continue growing our credit card portfolio in Canada.” Having to work with the market-leading cards would also fit with the corporation’s objective.

Since Costco has a very good brand image and have loyal customers, the risk of decreasing in customers may not be as risky. They are also very successful in both UK and the US. Hence, the firm may not be affected as much if the decision was a bad one.

Sources:
http://www.cbc.ca/news/canada/nova-scotia/costco-canada-to-stop-accepting-american-express-cards-1.2770732