Mark Foote, the CEO of Canada’s second largest mass merchandise discount stores, ZELLERS, announced the introduction of food items to its existing product line. This move was initiated to compete with Wal-Mart Canada Corporation and Lablow Cos. Ltd. who have bulked up upon groceries to attract customers.

Mr Foote, former executive at Loblaw, began his venture by highlighting the household needs of the people and cheap-chic fashion for money-conscious consumers and has now chosen a field he expertizes in. “Due to the increasingly crowded grocery market that Zellers faces, the beginning results have been encouraging and the customer traffic has been stronger than expected”, said Mr. Foote.

Although food is a retail magnet, it still involves high investment and considerable amount of risk. Due to its perishable nature, an efficient network of transportation and warehousing is required to ship food. Adding to that, it faces competition from retail giant Wal-Mart who already have a well-established image for good quality food. In order to remain competitive, Zellers must match the prices of their rivals and at the same time ensure that the benefits justify the costs. Apart from the cost of establishment, expenses are incurred on hiring technical and support staff to manage the business, which must also be taken into consideration.

Source : THE GLOBAL MAIL

Have a job in marketing that makes you travel a lot? Well, be prepared to pay extra for each piece of checked baggage. Air Canada has introduced a new first-bag fee of $25 making it a displeasing affliction for people traveling to USA. Bruce Cran, President of the Consumer’s Association of Canada labeled this move as a ‘money grabbing’ strategy and believes that all major airlines should work in favor of the people instead of coming up with schemes to latch onto the last penny left in their pockets. The $25 fee for people traveling to the US comes in addition to the $35 dollar second bag levy the company has been charging since 2008.

In defense, Air Canada spokesperson Peter Fitzpatrick said “this new policy of adjusting fares will help us remain competitive in terms of revenue in the market”. Fitz also stated that the industry is facing enormous cost pressures and this scheme will help the company to attain financial sustainability.

Other major air carriers in Canada are currently charging $20 for checking-in a second bag but have no intentions of introducing a first-bag fee for the fear of losing their share in the market.

Source : OTTAWA CITIZEN

The Satyam Computer Services scandal was publicly announced on 7 January, 2009. The chairman of the leading Indian outsourcing company SCS, Mr. Ramalinga Raju confessed that he systematically falsified company’s financial accounts. The company served some of the largest banks and media companies including Nestle, General Motors, General Electric, etc.

Mr. Raju was compelled to resign after he admitted the allegations as the company grew from an insignificant number of employees to a back office giant with over 55,000 workers with operations in around 60 countries. According to the allegations, $1.04 billion out of the total fraud money (1.40 billion) in cash and bank loans listed as assets, turned out to be non-existent.

In his LETTER to the board, Raju described a small discrepancy that grew out of his control. He claimed ‘What started as a marginal gap between the actual profit and the one in the books, continues to grow over the years’

The Satyam Scam has been an eye opener for most people. As correctly pointed out by McLeod, ethics form an integral part of how an firm works. One can hit a jackpot by following unethical ways to earn money in a short period or go with the ethical way of earning money, as well as, goodwill and respect in the market.

SOURCE : NY TIMES