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  alijafferi 1:17 am on November 17, 2013 Permalink | Reply  

  Dawn of a New World 

  Business makes the world go round. And at the very core of business lies the exchange of value – ie money. And what could be a bigger change, than a change at this very core?

  In a previous blog post, I talked about an emerging digital currency – Bitcoin. It is a universal currency that is non-physical, not backed by banks or governments, and traded over an open source network. (The full blog post, including a video explaining Bitcoin can be found here)

  

  The current value of a single bitcoin is at an all time high of $420

  In the short time since I last blogged about it, Bitcoin has picked up huge increase in interest all over the world. On October 14, Baidu, an internet company that runs the No. 1 search engine in China, began accepting bitcoins for the web services. Now, “All of a sudden businesses have at least one example of a large company saying it is going to accept Bitcoin.” Furthermore, Plug and Play Tech Center, which was a seed investor in PayPal, has announced the opening of an accelerator program exclusively for Bitcoin-related startups, to promote business accepting the digital currency. It is almost certain that Bitcoin is the way of the future.

  Amidst an era full of technological races, furious innovation, and newly emerging industries, clearly the business world is changing in unpredictable ways. The feature that will separate the winners from the losers in this new world is the ability to quickly spot and critically analyze all of these emerging trends.

  For now, all we can do is keep an open mind, and watch as the winds of change blow…

  References

  http://www.entrepreneur.com/article/229960

  http://www.entrepreneur.com/article/229588

  Picture: http://www.entrepreneur.com/article/229588

   

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  alijafferi 11:39 pm on November 16, 2013 Permalink | Reply  

  A Need for Speed! 

  Brian Chung brings up and interesting question in his blog post – what is the best way to improve efficiency? Chung disagrees with the decision of Marc Caira, CEO of Tim Horton’s, to cut down the amount of choices on the menu to increase in-store speed.

  
  Efficiency is a key value proposition, but so is having variety. Although there is usually a danger of getting caught up between different strategies when a company tries to do everything at once, Tim Horton’s low cost and expansive menu have not been a problem in the past. Its menu has become like an icon to its customers; cutting parts of it away could indeed be devastating.
  
  However, on one point I must disagree with Chung. He argues that Tim Horton’s should focus on better employee training to increase efficiency, but there is only so much a human being can do. A better option to increase efficiency without sacrificing menu variety would be to invest in technological and innovative practices. For example, Chili’s (a casual diner somewhat similar to Tim Horton’s) pledged to increase efficiency by renovating their kitchens and installing tablets on every table for increase ease and speed.

  The rapid growth of technology is allowing businesses to expand their value propositions without sacrificing others – but only when business leaders are quick enough to spot these possibilities.

  Response to UBC Blog post.

  References:

  https://blogs.ubc.ca/brianchung/2013/11/12/tim-hortons-reducing-menu-size/

  http://www.smudailycampus.com/dollars-and-sense/the-new-face-of-chilis-whats-changed-since-1975

  Pictures:

  http://www.timhortons.com/ca/images/general/baked-good-landing666x209en-fr-us.jpg

  http://listdose.com/wp-content/uploads/2013/06/better-efficiency.jpg

   

   
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  alijafferi 10:31 pm on November 16, 2013 Permalink | Reply  

  The Era of Innovation 

  “He who learns to swim in changing waters, survives.” – Frank Herbert.

  After reading Colin Lam’s blog post, I couldn’t help but think about how innovation is affecting multitudes of other industries as well as the gaming industry. In fact, it seems as if the twenty first century is all about innovation. Computers, smartphones, electric cars – the list is limitless. However, the biggest impact of innovation is not just how it’s changing current industries, but creating new ones.

  

  The most relevant example of this is, of course, social media. In 2004, Facebook was created, and in just 5 years, it become the second most visited site on the internet. At this time, the world saw a surge in social media platforms such as Twitter, Instagram, and Tumblr. Now, an average person spends 3.2 hours every day on social media sites, when just 10 years ago, nothing of the sort even existed. The potential for businesses that take advantage of innovation is enormous.

  Another thing that social media has in common with the gaming industry is that they both utilize the lean-start up model. Facebook is constantly coming out with new updates, in response to consumer preferences. In this day and age, a business that ceases to innovate will be swallowed up by new, emerging businesses and industries, and cease to exist. But, for one that spots future trends and is willing to jump outside of the box and take risks, the possibilities are endless.

  Response to UBC Blog post.

  References:

  http://www.marketingcharts.com/wp/interactive/social-networking-eats-up-3-hours-per-day-for-the-average-american-user-26049/

  http://socialmediatoday.com/daniel-zeevi/1251026/ultimate-history-facebook-infographic

  https://blogs.ubc.ca/colinlam/2013/11/15/response-the-future-of-gaming/

  Picture:

  http://www.navigantresearch.com/wordpress/wp-content/uploads/2011/10/Social-Media-in-the-Utility-Industry.jpg

  alijafferi and colinlam are discussing. Toggle Comments

   
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    colinlam 10:43 pm on November 16, 2013 Permalink | Reply

    Hey Ali, the quote at the end of your blogpost was truly inspiring. Here’s another quote about swimming:

    “If you don’t want to sink, you better learn how to swim” – The Glass Castle

    Similarly,

    “If you want your business to survive, you better learn how to innovate” – Colin Lam

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      alijafferi 12:00 am on November 17, 2013 Permalink | Reply

      Wise words to live (and do business) by.

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  alijafferi 8:41 pm on November 9, 2013 Permalink | Reply  

  Yelling; Disaster or Motivator? 

  In a recent post in the Harvard Business Review Blog Network, Michael Schrage explores the concept of yelling at employees in the workplace. Is it bad? A leadership flaw? Or can it actually be a successful motivator?

  

  Is yelling in the workplace bad? A leardership flaw? Or can it actually be a successful motivator?

  To see the effects of yelling, Schrage investigates other areas in life where successful leaders have been known to be intense yellers. In the world of sports, numerous elite coaches are notorious for shouting intensely at their talented athletes. For example, Alex Ferguson who is regarded as the most successful coach in the English Premier League, is famous for his “hair dryer treatment”, which involved yelling at such high volume and force that is was like having a hair dryer switched on in your face. As a soccer player for many years, I can definitely attest to being on the bad end of a high-volume coaching session, on several occasions.  Such treatment is also regularly found in military command, and even in more artistic environments such as movie and theatre directing.

  Using these patterns, Schrage suggests that the notion that “raising one’s voice represents managerial weakness” is nonsense. However, in practice, an effective leadership style depends entirely on the culture of the workplace and the type of employees working there. If a manager’s style is to use high-vocal force, then he better recruit the employees that respond well to this type of motivation and make sure that yelling is accepted as a sign of encouragement and respect in the businesses culture.

  Response to external blog post.

  References:

  http://blogs.hbr.org/2013/11/is-it-ok-to-yell-at-your-employees/

  Picture:

  http://www.richardwinters.com/wp-content/uploads/2012/02/I-Am-Not-Yelling-590×393.jpg

   
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  alijafferi 1:31 pm on October 27, 2013 Permalink | Reply  

  A Ray of Hope for Capitalism? 

  In the turn of the 21^st century we saw capitalism take hit after hit, as it was criticized all over the world. In a time like this, a single altruistic act can have a revolutionary impact.

  

  Hailed as one of the most celebrated thinkers in the world of poverty alleviation, the Nobel Peace Prize winner, Muhammad Yunus, started his multi-billion dollar Grameen Bank from an act of compassion. On a visit to a Bangladesh village, Yunus discovered people so poor that they could not pay for the raw materials needed for their tiny businesses, which led him to lend 42 of them $27 out of his own pocket to break their poverty cycle (1). This began microcredit, lending to the poor.

  

  According to Muhammad Yunus, “In a conventional business you go into business to make money … To do that you need some people to work for you. So they are a by-product of your main objective. In a social business, creating employment for these five people is the objective.” (1)

  Grameen became an effective model for poverty reduction and female empowerment, copied throughout the world. Now, a new generation of businesses, deemed “social entrepreneurship”, seek to create shared value, meaning that they obtain long-term sustainable profits while simultaneously advancing the economic and socials conditions of the communities they work in (2).

  The true power of social entrepreneurship is that it is self-sufficient, unlike a non-profit which relies on donations. It still draws upon aspects of capitalism; however, where traditional capitalism is incomplete, the “social” is what completes it by adding a humanitarian aspect. Social business is effectively a true agent of change, offering a ray of hope for the future.

  References:

  1) http://www.ft.com/intl/cms/s/2/13420d7c-3be2-11e3-b85f-00144feab7de.html#axzz2isUT8rAC

  2) http://www.waterhealth.com/sites/default/files/Harvard_Buiness_Review_Shared_Value.pdf

  Pictures:

  http://www.dw.de/europeans-blockupy-the-ecb-in-frankfurt/a-16851232

  http://www.guernicamag.com/interviews/muhammad_yunus_8_1_11/

   

   
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  alijafferi 7:31 pm on October 21, 2013 Permalink | Reply  

  High/Low Strategy… Rationale behind the 5C 

  So the initial exasperation felt at the release of the Iphone 5C is winding down considerably. Now we rarely tend to hear cries about the pointlessness of releasing an almost identical phone to the flagship Iphone, albiet with somewhat lower quality performance and somewhat lower price.

  

  Infact, the rationale and strategy behind this move is quite apparent. Before the rapid rise of Samsung as a major smartphone player, Iphone could afford to ignore the low end market side. However, due to the dramatic increase of cheap smartphones in the market, for Apple to maintain it’s share of the smartphone industry, it has little choice but to make both a cheap smartphone and an expensive one¹. This strategy of marketing to both the low end spectrum and high end spectrum seems to have been effective – a recent report states that the demand for the 5C has increased substantially, over a 30% rise from the week of the initial launch².

  One can respect Apples initiative and willingness to adapt to a changing market.

  This Tuesday, the highly anticipated new line of Ipad will be revealed². The question is will Apple employ this high/low strategy in the tablet industry as well?

   

  References

  Al Akkad, O. (2013). What to expect from Apple’s iPad announcement. The Globe and Mail. Retrieved from http://www.theglobeandmail.com/technology/what-to-expect-from-apples-ipad-announcement/article14963892/ on Oct. 21, 2013

  Cole, S. (2013). iPad 2 remains Apple’s most popular tablet, iPhone 5c demand growing. Apple Insider. Retrieved from http://appleinsider.com/articles/13/10/21/ipad-2-remains-apples-most-popular-tablet-iphone-5c-demand-growing on Oct. 21, 2013

  Picture: http://www.geek.com/apple/iphone-5c-rumor-roundup-colors-specs-and-a-lower-price-1569298/

   
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  alijafferi 4:40 pm on October 6, 2013 Permalink | Reply  

  The Ultimate Currency? 

  

  Bitcoin, a virtual peer-to-peer currency, as represented by a physical coin.

  Can there be advantages to a decentralized, non-physical currency that has never been counterfeited?

  Does such a currency exist? Yes. Bitcoin. The “digital currency” made its appearance in 2009 and has steadily become more widely used and accepted (1). This new form of money manages transactions over an open source network (2). But do bitcoins have any real value?

  Ultimately, it is society that decides whether something has value or not (1). If there is a significant amount of people that trust it, then yes, it can be used whether or not it is backed by banks or governments. On August 6, 2013, in verdict of a case involving bitcoin scam, a Texas judge stated that people value Bitcoins as currency and should be treated as such — including offenders being subject to charges from the U.S. Security Exchange Commission (3). Furthermore, the currency has been used to facilitate an underground network for illicit drug trade called Silk Road (4).

  It is clear that there is a growing demand for bitcoin, which may create a storm in the world of business. By accepting bitcoin as a form of payment, businesses can increase their popularity by opening themselves to the growing market of bitcoin users all over the world. But what are the long term implications of this?

  References

  1) http://motherboard.vice.com/blog/bitcoin-faces-its-critics

  2) http://bitcoin.org/en/

  3) http://www.cbc.ca/news/canada/calgary/bitcoins-real-money-ruling-creates-stability-says-expert-1.1368763

  4) http://www.cbc.ca/news/technology/silk-road-s-alleged-mastermind-how-the-fbi-caught-him-1.1894067

  Picture – http://www.cbc.ca/news/canada/calgary/bitcoins-real-money-ruling-creates-stability-says-expert-1.1368763

   
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  alijafferi 11:01 pm on October 5, 2013 Permalink | Reply  

  A Berry Bad Move? 

  We’ve all heard about Blackberry. And we’ve all seen its empire come tumbling down. Now, let’s take a peek at last year before its demise and see what the slipping company has been doing to retain investors…

  Extreme pressures in the world of business can sometimes lead to not-so-honest actions. Many well recognized companies have been involved in scandalous cases of fraudulent financial accounting, including Enron and WorldCom(1). This type of fraud usually involves the skewing and embellishing of financial reports to make a company seem more desirable to investors.

  Although there are measures taken to try and prevent this (GAAP, external audits), it is still a part of the business world. Recently, a law suit has been filed against Blackberry Ltd. on behalf of thousands of shareholders who purchased BlackBerry stock from Sept. 27, 2012, to Sept. 20, 2013, claiming that executives tried to deceive investors by misrepresenting the state of Blackberry’s operations(2). Blackberry has faced similar lawsuits in the past, such as one alleging the misrepresentation of the financials of the PlayBook after its failed launch in 2011(2).

  Did Blackberry intentionally try to deceive its investors, or was its fall just plainly unforeseeable?

  References:

  1) http://www.coso.org/documents/COSOFRAUDSTUDY2010_001.PDF             2) http://www.theglobeandmail.com/report-on-business/blackberry-hit-with-securities-shareholder-class-action/article14713440/                                                                                                                                                                                                                                                                                        Picture – http://economictimes.indiatimes.com/photo/21638823.cms

   

   
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  alijafferi 12:35 pm on October 3, 2013 Permalink | Reply  

  Locking Horns With the Law 

  Ryanair’s philosophy of “cutting costs right, left, and centre” allowed them to aggressively dominate an emerging market while maximizing profits. But what happens when such a corporation tries to cut costs in the wrong places?

  

  Europe’s largest low-cost airline Ryanair was recently slapped with hefty lawsuits amounting to over €9m for skirting France’s labour laws. By hiring workers in Marseille under Irish contracts rather than French ones, Ryanair avoided high French social charges and saved 30%. But, of course, the French government made a move when they realized that the workers were paying no taxes in France.

  Despite Ryanair arguing that these workers were working on registered Irish aircrafts and had already paid their taxes to Ireland, the court’s judgement held the fine for Ryanair. However, the interesting thing here is that large corporations fight for their profits and make their own moves, rather than just adhere meekly to the rule of law. Ryanair pledges to appeal the verdict, while in the meantime, they have already pulled their operations outside of Marseille, and relocated about 200 jobs to rival airports in Spain, Italy, and Lithuania in protest.

  Ryanair stated that traffic for the month of September had risen three percent from the year-ago period to 8.10 million passengers. Annual traffic to end September grew two percent to 80.4 million passengers. But the question is, how will these allegations affect Ryanair in the long-term?

  References:

  http://www.theguardian.com/business/2013/oct/02/ryanair-fined-french-court-labour-laws

  http://invezz.com/news/equities/5847-ryanair-share-price-discount-carrier-hit-by-euro-8m-penalty

   
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  alijafferi 9:32 pm on September 11, 2013 Permalink | Reply  

  Large companies want large profits, but can business ethics get in the way? 

  When a company mass produces, there is the possibility that the product could turn out to be flawed. A malfunction can cause serious injury to the consumer, or even death. For example, in constructing cars, many factors can result in the malfunctioning of the end product. These include faulty construction facilities, risks due to aggressive company growth, human error, or even unforeseeable problems. Thus, for many large car companies, it is not a question of if it will malfunction, rather when will it malfunction?

  But how should a car company respond to such a situation?

  The obvious ethical answer is to call a recall on the product and try to fix it. However, this can be substantially damaging to a company, not only through loss of large profits, but also to the perceived quality of the brand. Such was the case for Toyota in 2010 when they called a mass recall on over a million cars worldwide, costing billions of dollars in lost revenue. On the other hand, when Audi encountered a safety issue similar to Toyota’s, Audi took the position that “it was the driver’s fault,” David Cole, Director of the Center for Automotive Research, told Design News. While Audi’s reputation was hurt in the long run, Toyota can be commended for accepting responsibility.

  Should short term losses be incurred in order to maintain a long lasting ethical business reputation?

  Is there value in making ethical decisions that can make up for lost profit?

  

  http://www.designnews.com/document.asp?doc_id=228797&dfpPParams=ind_184,industry_auto,aid_228797&dfpLayout=article

  http://business-ethics.com/2010/01/31/2123-toyota-recall-five-critical-lessons/

  http://www.ctvnews.ca/autos/toyota-recall-of-rav-4s-lexus-sedans-affects-100-000-vehicles-in-canada-1.1447775