Month: October 2012

Zara, a clothing company that prides in providing new, high quality clothing, has recorded an addition of 166 new stores in the first half of this year, which brings the company’s store count to 5,693 stores across 85 countries. This organization is owned by Inditex, and the financial statements record a substantial 32% increase in profits since the beginning of this year. A big reason for Zara’s growth and development is mainly due to how the company operates and minimizes inventory turnover. Operations of the company is a significant point of difference compared to other corporations like GAP, Nike, and rival H&M because Zara provides a unparalleled approach to bringing their designs/prototypes onto shelves across the world in as short as two weeks. This approach comes with strengths and weaknesses. With a short supply, Zara is able to stay on consumer trends and keep the buyer connected with Zara stores, but this fast fashion comes with high expenses and pricey transportation costs. Overcoming this problem, Zara is able to set higher prices for clothing products and has recorded an overwhelming growth since last year of over three billion dollars for their owner, Amancio Ortega, the richest man in Spain.

Sources: http://gbr.pepperdine.edu/blog/2011/12/15/4396/

http://www.bbc.co.uk/news/business-19645749

http://web.ebscohost.com/ehost/detail?sid=0ce2eb31-a77d-4435-bd31-144d03bc61db%40sessionmgr12&vid=1&hid=7&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&AN=22161327

CUPE 116, the Canadian Union of Public Employees, are currently on strike and have initiated their first day of job action last week. Over 500 workers from UBC ‘formed a march that snaked its way around campus at noon today, ending in a rally in the SUB north plaza’ that was to enforce their request for more benefits and higher wages (Rodgers, 2012). Barry O’Neill, president of all CUPE unions in BC says that workers are only asking for an increase in their cost of living allowance, job security and pensions. This stand for higher benefits and an increase in wages is not only happening at UBC, but it is also commencing at the University of Victoria, Simon Fraser University, and the University of Northern British Columbia. As we can see, this job action is seen all across BC and will have major impacts and feedback effects if this agreement does go through. From the analysis of the article, I can see that the follow through of this job action will cause an increase in costs for universities all across BC. Having universities pay for this increase of wages will ultimately be burdened upon the tuition of innocent and helpless students.

CUPE STRIKE VIDEO

Sources: http://www.google.ca/imgres?um=1&hl=en&sa=N&tbm=isch&tbnid=6opgaTzj4ZZWlM:&imgrefurl=http://ubyssey.ca/news/cupe-2950-agrees-757/&docid=nj4U560j8w3V9M&imgurl=http://ubyssey.ca/wp-content/uploads/2012/10/wpid-union_20121004_kai-jacobson-2.jpg&w=1600&h=1067&ei=PDWkUMDpJIOziQKP1oGoBg&zoom=1&iact=hc&vpx=1255&vpy=626&dur=1516&hovh=183&hovw=275&tx=154&ty=144&sig=110255275212904894455&page=2&tbnh=132&tbnw=198&start=42&ndsp=49&ved=1t:429,r:71,s:0,i:286&biw=1920&bih=941

http://ubyssey.ca/news/begin-strike-action586/

https://www.youtube.com/watch?v=f6-2T3INQyc

Expanding in all countries, IKEA, famous for its budget furniture in self-build flat packs, “has 338 stores around the world, of which 40 are run by external franchises” (Ringstorm, 2012). With such publicity in the global market, this company has been able to grow in a variety of diverse markets. The Middle-East, specifically Saudi Arabia, have been introduced to IKEA’s vast product line with various marketing strategies implemented by the company. Recently, IKEA has been scrutinized and criticized about their newly updated catalogue that was featured with no female figures in Saudi Arabia. This caused many people and consumers to start discussing about whether IKEA should implement marketing techniques that goes along the company’s value’s of gender equality. Being heavily populated by the Muslim religion, Saudi Arabians do not allow females to be heard or seen out of their homes without a male companion. Although this problem in the Middle-East has been getting better, IKEA states that it will figure out new ways of sticking with their value proposition and further increase the gender equality in the country through their marketing implementations. Clearly illustrated by IKEA, they promise “a correct content presentation from a values point-of-view” to ensure that the company’s value’s are met.

Sources: http://www.google.ca/imgres?um=1&hl=en&sa=N&tbm=isch&tbnid=e5gvgb8acsiYyM:&imgrefurl=http://metronews.ca/news/world/389090/ikea-deletes-women-from-saudi-arabia-catalogue/&docid=M0nZIynFvZZ_OM&imgurl=http://metronewsca.files.wordpress.com/2012/10/ikea_metro.jpg%253Fw%253D618%2526h%253D408%2526crop%253D1&w=618&h=408&ei=mTWkUObVKO33igLDsoCICQ&zoom=1&iact=hc&vpx=1603&vpy=48&dur=442&hovh=182&hovw=276&tx=197&ty=89&sig=110255275212904894455&page=1&tbnh=147&tbnw=221&start=0&ndsp=40&ved=1t:429,r:7,s:0,i:90&biw=1920&bih=941

http://www.bbc.co.uk/news/business-19697344

http://www.ikea.com/ms/en_JP/virtual_catalogue/online_catalogues.html

http://metronews.ca/news/world/389090/ikea-deletes-women-from-saudi-arabia-catalogue/#