Vancity has currently ranked 29th on the list of Top 50 employers. It has also been recognized on Canada Best Diversity Employers list in 2011. The company has a dominant organizational culture in such that there is acceptance of diversity. It has set values and policies that pertain to daily activities, including ethical policies. Most importantly, the company has made corporate social responsibility integral to how it does business. I think this is what makes Vancity a strong contender for not just the credit union industry but as a company overall. It is able to differentiate itself from competitors by valuing aspects shared by everyone. As technology is modernizing the way tasks are accomplished, concerns for the environment are increasing as well as a greater need for job satisfaction.
The company provides microloans for start-up entrepreneur green businesses or technology. With the increased awareness of the environment, Vancity is using this corporate social responsibility strategy to market itself. By doing so, people will perceive that the company is socially responsible and does not only consider profit maximizing opportunities. I believe that in order for a business to be successful it has to cater to customer values before its profits.
Hostees Brands Inc., the producer of Twinkies, Wonder Bread, and Ding Dongs, decided to liquidate its business after it failed to reach an agreement with striking workers. The company simply did not have enough workers to keep up with operations.
What lead to this?
The company growth strategy’s main focus was on operations and optimizing to reduce costs. However, a key factor that was neglected was its product lines, which over time the unresolved issue contributes to the company’s current position today. In order to lower margins, the company financed itself with debt piled on top of debt, resulting in $670 million owed in 5 years.
Hostees’ dilemma can be attributed to the company’s failure to adapt its business model to market trends. There is an increasing focus for healthy lifestyles, which result in a change in diet as people substitute away from junk food. The company failed to adapt when there was an opportunity for it to create products with a higher margin that could compete in the market.
It is crucial that a company is flexible to change and aware of market trends in order to sustain its business. Hostee’s case is a prime example of the effect of not doing so.
Microsoft recently announced that it would be closing Windows Live Messenger in March 2013 worldwide, except China. In replacement, Microsoft will focus on Skype. Based on the Internet analysis firm, Comscore, the US audience for Windows Live Messenger had fallen by 48 percent from 2009 to 2010. Moreover, the audience for Skype has grown.
I think this is a strategic decision for the company because Microsoft identified industry trends early on and reacted. Having purchased Skype for $8 million last year and forming a partnership with Facebook, it is able to utilize both of these major companies to its advantage. There will be an option for users to connect their friends on Facebook with Skype. With the increasing popularity of Facebook, Skype presents a feature of video chat with friends. In addition, Microsoft will be implementing Skype into its smartphone software. This will allow for mobile video conferencing, a feature that Windows Live Messenger does not.
Based on Microsoft’s focus to broaden the audience of Skype users, I find that the tactics used are clever. The changes that Microsoft wants to implement will merely feel like an upgrade for chat users—users will be able to synchronize Windows Live Messenger contacts and connect to Facebook friends as well!
I recently came across a Startup Marketing Blog by Sean Ellis. The blogger, Sean Ellis is the founder and CEO of Qualaroo, a company that helps companies to determine the metrics needed to improve visitor engagement for their websites. This blog provides advice for all categories of marketing. I found it interesting because this site is not just a typical blog; it is produced to serve its readers by addressing their marketing concerns. There is a pop-up reminder that encourages the viewer to comment on blog post ideas. This is effective because Sean communicates his expertise according to what readers want to see.
The layout of the blog is organized and easy to navigate because there are headings for each category. I found that this was effective because it was simple and informative. Sean ties in his own personal experiences in his blog posts and provides recommendations on how they could have been improved. This tactic makes his posts engaging and relatable to readers. In addition, he provides videos to better communicate his ideas.
Overall, I found this blog to be insightful and engaging because the blogger is fully committed to educating his readers.
In response to Adrianne Erdman’s blog, I disagree that there are no downsides to the Power Tab. The idea for Energy Aware’s Power Tab to become popular in Canada will not be met without difficulty.
Statistics indicate that Canada has one of the lowest electricity prices in the world. This is due to the vast number of available energy sources. Canadians may see no advantage to reduce energy consumption by saving on already low prices.
Another major factor that may turn Canadians away from the Power Tab are the controversies surrounding BC Hydro’s smart meters. The Power Tab is a device that will work alongside the smart meter to provide data of energy consumption. In order to utilize the Power Tab, the product must be registered with BC Hydro. In addition to valuing the environment and money, Canadians value privacy and this device will support BC Hydro’s intrusion on privacy. BC Hydro will also have access to cumulative data of energy usage from smart meters that over time will reveal consumer behaviour such as when a family is on vacation.
I predict that it will be a slow progression for Power Tabs to enter the Canadian market.
In response to Connie Hsu’s Blog post: South Korean Companies Branded by Gangnam Style, I agree that Psy’s song, “Gangnam Style” has contributed to South Korea’s image globally. However, South Korean culture has already been increasing in popularity, dating back to 1990, when the “Hallyu” wave began. Along with the government trying to establish a national brand for South Korea, “Gangnam Style” is merely the catalyst that has ignited the awareness of South Korea’s culture globally.
As mentioned by Hsu, the overall success of the song can be observed by the increase in demand for Korean made products. South Korean companies are able use this advantage to market its products to foreign buyers. For instance, Amore Pacific, a South Korean cosmetics company, has experienced growth in China. This indicates that companies can expect growth in profit due to positive global associations with South Korea’s brand. South Korea’s brand has effectively been repositioned to create an identity that distinguishes it as being “a source of fun and hipness.” “Gangnam Style” has paved the way for opening up Korea’s industry to foreign investors—a feat that the government has been trying to accomplish for years.
American retail expansion into Canada will force Canadian retailers to step up their game. As the US has dominated Canadian music, television and fashion— retail markets are no exception. Major companies have been bombarding the Canadian industry with American owned stores. Customers will inevitably be attracted to new products and trends. Thus providing American retailers an advantage to market their products.
Target, a major American retailer, will be taking over Zellers store locations throughout Canada. This will cause Canadian retailers to be threatened by Target’s impact. Since Zellers is a retail of Hudson’s Bay Company, the elimination of store locations will force the company to assess and improve its supply chains. Hudson’s Bay Company has announced that it will be laying off 210 employees to increase efficiency and cut costs.
Hudson’s Bay Company’s retail stores target middle-income families and cater to various consumer needs such as groceries and clothing. However, Target is a close competitor in such that it will offer substitutes at a lower price. As a result, even the most patriotic Canadian would be tempted to switch their loyalty to American stores. This leads me to wonder: “Will American businesses be the dictators of Canadians in the future?”
India is one of the world’s largest populated countries experiencing economic growth yet it still faces an issue of poverty. The Indian government recently announced that it was opening its retail market to foreign firms. This change will impact employment and create structure in the retail industry. However, small shop owners and opposition parties feel threatened that major foreign investors will drive locals out of business. In protest, tens of thousands of shopkeepers have locked up their stores for strike.
One of the major challenges India faces is the lack of structure because the industry is made up of small businesses with limited practices. By bringing in foreign investors, it will open up jobs, ideas for innovation, and methods for sustainable practices.
Wal-Mart, a multinational company, is seizing the opportunity and becoming the first to expand into India. This will cause locals businesses that are unable to compete to shut down—adding fuel to inflation. However, new business strategies and the attraction of foreign investment will help to modernize the market to become more efficient.
In the long run, the decision to open the retail market to foreign investors will benefit society as a whole.
Nokia, one of the world’s largest mobile phone makers, has been suffering in market shares and is currently in a situation where it may be unable to pay dividends. As it proved incapable of keeping up when smartphones became the new must have, the company faced a crisis. Nokia has resorted to massive job cuts, closure of production and research facilities, and the sale of patents in an effort to earn back profit.
The company’s lifeline to re-establish their brand value is by the release of the Lumia smartphone. Nokia’s main point of difference to distinguish the Lumia from other smartphones is that the phone will be powered by Microsoft Windows 8. What is shocking is the Lumia will be priced higher than the Samsung Galaxy S III but still lower than the iPhone 5. This move is risky because Nokia’s goal to position its brand in its own category will require the company to attract a strong customer base. As customers are still unfamiliar with a Windows smartphone, they will be compelled to purchase a smartphone where they know what their money is worth. In order to appeal, Nokia will have to consider customers’ perceptions when faced with competitors.
The term family business can best describe the controversial ethics of Alberta farmers and PepsiCo. Alberta farmers are still practicing traditional farming methods where children, as young as 8 are required to participate in farm work. As child labour laws have been enforced in Canada, it appears that governments don’t want to interfere with family businesses.
PepsiCo takes advantage of the fact that labour laws don’t apply to industrial farming operations in Canada. Due to this, they are willing to oversee that child labour is involved in the production of potatoes. Since Alberta farmers are the fourth highest producers of potatoes in Canada as reported in 2010, PepsiCo is all for supporting the fixed supply and profit it will bring to their company.
However, I strongly oppose to the ethics of PepsiCo. The company seeks to maximize their profits at the expense of child labour. In most cases, children are reluctant to continue the family business – it is a business where children are given no freedom to explore their own dreams. In addition, children face the possibility of injury each day at work to ensure productivity.
