United Nations

“Social enterprise development is defined as creating and nurturing micro-, small-and medium-sized businesses that aim for positive social or environmental outcomes while generating financial returns.” – UN Global Compact

While the main goals of the United Nations are to maintain international peace and security; develope friendly relations among nations; promote social progress, better living standards and human rights, it seems like something is missing. With the restricting amount of resources available on a global scale, aids provided by the UN cannot possibly reach out to every aspects of our society.

Impoverished communities are often neglected due to limited resources. However, social enterprise development such as the Arc Initiative seek to touch every corner of the globe and focus on a broad range of fundamental issues. Rather than physical and material assistance, Arc provides support both socially and spiritually. Through building an “arc” that facilitates a genuine two-way exchange of knowledge and business skills between third-world and maturely-developed businesses, the long-term economic betterment for local communities is attained.

Indeed, the UN’s vision is make this world a better place through various humanitarian aids. Yet, countless local communities around the world still battle with educational inadequacy in which basic human rights are overlooked. Therefore, the establishment of social enterprises is absolutely crucial.

Elon Musk, the CEO and CTO of SpaceX, CEO and chief product architect of Tesla Motors

After Tesla reported earnings on Wednesday, CEO Elon Musk took questions from analysts. Analysts and media outlets have begun to address a possible decline in demand for the Model S. However, Musk insisted that demand is not the issue, it’s the production. “The battery industry has to have more B.S. in it than any industry I’ve ever seen,” Musk said during the interview, where he seemed ticked off that the battery industry doesn’t hold itself to a high standard of truthfulness.

As discussed in class, Tesla has been focusing on lowering the costs of production by mass producing car batteries (Tesla is preparing to construct a massive $5-billion battery factory in Nevada). However, it seems like the company’s pressing issue now is being able to simply build its cars, and build them well. Although Tesla is on top of the technology ladder, I think it still has a long way to go in terms of lowering manufacturing costs. Prices cannot be reduced if the marginal costs are high. And to further cut the marginal costs, Tesla has to invest more in its research and development. Otherwise, it will not be able to catch onto the rapidly growing demand for electric cars; and it will soon lose its slice of this big cake to other covetous competitors. Tesla definitely has the skills and technology, but the issue now is its affordability and surely the consumers do not appreciate such sumptuousness.

Jack Ma, the founder and Executive Chairman of Alibaba Group

Alibaba Group Holding Ltd. (BABA), in its first earnings report as a publicly traded company, delivered on the growth prospects that have fueled a huge percent stock surge since its September initial public offering. This Tuesday, shares of the Chinese e-commerce stock are up 6% to $104.94, capping a 54% gain from the initial offering price of $68 a share. Given the company sold 320.1 million shares, that means IPO investors who bought those shares are now $11.8 billion richer.

Alibaba has proved itself as a company of superlatives, but what’s the secret behind its success? With a population of 1.357 billion, 632 million are Internet users, China indisputably has a internet-based market with enormous demands. Acting as a online platform for small businesses to cater to millions of consumers initially in China, and now worldwide, Alibaba strategically positions itself to meet both supplier and consumer demands.

Myself as a frequent online shopper, is frankly frustrated by scattered individual shopping sites and miscellaneous add-on taxes. Having a well-organized distribution network surely makes online shopping a much enjoyable, accessible, and diversified experience. Resources are optimized and everyone is happy.

But Alibaba is not satisfied yet. Its expansion into new businesses and markets is telling the world one thing: The lion is awakening.

The annual performance review is the biggest career killer

“Annual performance reviews are a waste of time,” criticized by Jacob Shriar regarding the turnovers of this year-end employee evaluation, in which he argues that performance reviews are often one-sided, overly-structured, money-driven and outdated. He urges companies to forsake the review system because it often promotes inefficiency and failures.

In my opinion, the “annual” evaluation is certainly questionable in a sense that issues are not delivered promptly to employees, causing value disjunction between managers and subordinates. As Shriar suggests, not tackling an issue head on can result in negative team morale and demoralized company culture, which I strongly agree. Yet, the lack of any form of performance assessment can on the other hand, encourage undesirable behaviours (idleness). Instead, businesses should focus on “frequent” and “short-term” feedback rather than a school report card.

I believe that efficiency and productivity are positively related to the social structure of the workplace. The ultimate goal of all businesses is to maximize its revenues, and this optimization greatly relies on the performances of employees. Surely, annual reviews can seem ineffective, but the implementation of instant and recurrent “feedback system” appears to be a better alternative.

The true goal of the performance review isn’t to help the employee—it’s to help the company.

Windowless Plane Would Let Passengers See World Around Them

In your typical plane, there is the aisle seat, the middle seat, and the window seat which in my opinion, is the best seat.

UK-based tech innovation company CPI hopes to be among the first to design a windowless aircraft, where every passenger gets to enjoy electronic panoramic views without the restriction of airplane cabin windows. While this sounds like a pure luxury experience, there surely is more science behind it. CPI claims that this project can further improve sustainability and money-saving. For every 1% reduction in weight, the approximate fuel saving is 0.75%. By eliminating windows, the reduction of airplane weight requires less fuel consumption. And less fuel means less CO2 emissions into the atmosphere and lower operational costs.

As mentioned in class 15, social, environmental and economic demands are considered the three pillars of sustainability. Businesses are based off these elements, and so often, they are the determinants of economic continuity. CPI seamlessly incorporates these three elements into this upgrade in aviation industry. Not only does the environment and standard of living are improved; companies can now maximize profits through operating at lower costs, the reduction in airfare impels purchasing power, both sellers and buyers are benefited.

Sustainability is achieved. And everyone wins.

Michelle Phan: From YouTube Star to $84 Million Startup Founder

Today, individuals are widely exposed to social media such as Facebook, Twitter and YouTube through the help of Internet. Internet has undoubtedly created a whole new dimension to the operations of business. It has become a hotbed for innovative ideas and business opportunities. And Michelle Phan, a 27-year-old makeup artist who foresaw the potentials of Internet, has successfully transformed herself into yet another ferocious Internet entrepreneur.

“For $10 a month, you can still feel like you’re valued, and you can get something that empowers you to try something new,” said Phan, the founder of Ipsy, a monthly subscription of curated and luxurious sample makeups. Clearly, Phan has not only perceived the immeasurable influence of Internet has upon our new society and generation, but more importantly, the essence of value proposition. She realizes that the acknowledgment of customer’s belief is the key to building her loyal customer basis. Setting her foot in the highly competitive cosmetics industry, she is able to differentiate herself through the concept of “empowerment”, in which she unequivocally delivers the message of strong and powerful minds.

Her products are not commercialized, rather, they are customized products that sell deep into customer’s hearts.

Fish Lake Fightback in Court

Taseko Mines Ltd’s New Prosperity copper-gold project has been slammed by the rabid protests of the Tsilhqot’in people, and the future of the $1.1-billion expansion plan seems to be cast to the wind. The mining site that Taseko has previously laid eyes on has been declared by the Tsihqot’in as a tribal park, in which large-scale industrial mining is prohibited. It is clear that Taseko has failed to examine the “social aspect” of the PEST Analysis. In this case, the natives who have long opposed the mine and claimed hunting and fishing the the area form a powerful external force. And with the support from the government, this mining plan seems completely infeasible.

In my opinion, apart from analyzing external factors (culture and people in this case) in advance, Taseko should also formulate alternative plans and strategies in case of accidents. Pursuing a solution through the courts is not just time-consuming, but depreciating. The time and money staying during the ruling process are inefficient, and cannot be used productively. Businesses should always oversee their investments diligently, and this means thorough inspection of possible external threats. Luckily, Taseko was able to take over Curis Resources’ copper project in Arizona. Otherwise, that $1.1 billion could have come to naught.

SFGate

Oil drilling in the Amazon has always been a controversial topic for the past decades. Oil companies obtain petroleum from the Amazon rainforest in order to satisfy the market demand for fuel. Yet, the contamination caused by oil extraction has brought catastrophic impacts upon the life of the Amazon and its people. “All my life they’ve been telling us that the oil companies will bring wealth and development,” said Chino Dahua, whose home as the vital centre of biodiversity has been mechanically demolished.

Oil industry operates in some of the most challenging places in the world and faces complex human rights issues. Yet, I think it is crucial that oil corporations do not neglect the responsibilities that come along with tremendous amounts of profits. It is important for businesses to constantly review their operations, at the most ethical and profitable levels. Rusty Riese also addressed the necessity of information delivery and diligent oversight performances. “All energy consumers (including the industry) have an ethical obligation to educate ourselves and those around us regarding the consequences of our demands for cheap energy and a preserved environment.”

Surely, all businesses seek to maximize profits. However, I believe business success is not solely based on momentary growths in numbers, but the sustainable operations of ethical businesses.

Beware of Business Plan Writers Who Oversell

In reference to Niki Vaahedi‘s post on the topic of business fraud, she mentioned that the lure of this action is triggered by the mentality of “getting away”. However, this is not merely the cause to such business immortality. According to Business Insider, there is much more than just that. I found two approaches especially interesting:

1) Tunnel Vision: Single-minded focus on goal achievements can blind people to ethical concerns. Taking Enron for example, employees were offered bonuses when extra sales were achieved, which made them utterly blind to what were right or wrong. And the aftermath was the infamous Enron scandal.

2) Self-serving bias: Most people think they are smarter or more ethical than others. This idea perfectly aligns with the concept of “getting away”. When others have exceptional performances, it is not down to their capacity, but something else. Those feelings often promote unethical actions, and offenders are repeatedly deceived by self-overestimation.

While we can easily reason multiple psychological assumptions to analyze these actions, keep in mind that “what’s done is done.” Sophistry cannot varnish dishonesty. And remember, business ethics is the key to economic continuity.

#Bendgate: Skinny jeans bending the iPhone 6 plus

Now that the long-awaited iPhone 6 designs have been unveiled, it is time for some criticism and reviews – are the iPhone 6’s worth the hype? In response to Si Jia Wen’s post on Making the Switch to Apple, which was written before the official release date of iPhone 6’s, there certainly has been some feedback from the new iPhone 6 users.

In Si Jia Wen’s post, she talked about Apple’s “irksome habit” of copying Android smartphones, in which certain functions performed by various iPhone products have been discredited as “clones of Android”. However, has Apple bungled an attempt to revamp the iPhone? Apart from the “eerily similar features” that the iPhone 6’s have as opposed to the Android system), it seems like Apple is having some hardware malfunction. According to the report by CBC News, the new iPhones can survive being submerged underwater for 10 seconds with no damage.” Unfortunately, many iPhone 6 users have reported “bent iPhones” under the pressure of tight skinny jeans.

A little extra flex to the screen creates multiple dimensions, but when the result is a “slightly, yet permanently distorted phone” – Apple, time to step up in your game now.