Anita Kong's Blog

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.

References:

http://business.financialpost.com/2012/09/27/nokia-dividend-elimination-looms-as-it-bleeds-from-iphone-battle/

http://www.torontosun.com/2012/09/27/nokia-risks-backlash-with-lumia-pricing

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.

For more information and reference, click HERE!