Annabelle Kovacs' Blog

The United Nations, the Arc, and social enterprise share a common objective, which is the initiative to improve the living standards of society. However, their affects vary over time.

The United Nations focuses on the bigger picture, committing to maintaining international peace and providing assistance in humanitarian crises. Although the United Nations has significant influence upon the world, its key responsibilities and goals first target the developing countries most in need of aid. This tremendously helps out those countries to achieve their first but ginormous step towards economic and political stability.

 The Arc and social enterprise rely on the concept of educating people instead, targeting a more narrowed range of people in order to make a difference. This could be arguably more effective because in the long run these people are provided with a set of tools and knowledge about business management and leadership capacity that they can further apply to their business or teach. This positively impacts their community as a whole, later reflecting its growth internationally.

This demonstrates how the two different approaches intertwine to further advance each other’s work. Without the Arc and social enterprise, the assistance from the United Nations might only last temporarily.

“Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime.”

-Maimonides

Sources:

http://news.ubc.ca/2014/06/30/upward-arc/

http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/day-to-day/can-fair-trade-boutique-expand-without-alienating-customers/article4405520/

http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/going-global/in-a-crowded-market-ethiopian-entrepreneur-finds-a-sweet-way-to-stand-out/article17912688/

The Arc representatives from Sauder managed to make a difference in Uwonkunda’s, Kassahun’s, and Tesfaye’s life by enriching their skills and knowledge. They will forever be grateful for this experience, as will the people that will learn from them.

From what started as a fun app for editing photos, Instagram has now become a worldwide social media site that serves 200 million users and contains over 20 billion posts.

Traditional advertisement techniques have included catchy slogans, identifiable logos and convincing commercials, but now the focus has slowly shifted towards an even more influencing factor, social media. As technology continually advances, businesses are becoming more interested in finding new creative ways to advertise their merchandise or events. Marketing plays an important role in the productivity of a company, so keeping up with the most current channels of advertising is highly recommended.

Considering today’s mobile-centric population, targeting this customer segment through Instagram is certainly an effective method. Once Instagram is ready to expand to more ad partners, there is going to be a huge hype over this ideal partnership because companies are fully aware of the power social media has to spread the latest news.

Advertising through Instagram will be very organized as marketers will be able to target people by their age, gender, and country. Along with likes and shares, hashtags are also effective as they trend globally and people link posts to them. Businesses can use these tools to their advantage when releasing their very own original ads incorporating hashtags and maybe even contests within them.

Instagram ads are going to be a short and sweet way to attract one’s attention without completely annoying them. As soon as Instagram is ready and stable enough to provide people with this opportunity, not only will businesses benefit, but Instagram too will become more profitable.

Sources:

http://www.cbc.ca/news/technology/instagram-ads-hit-canada-1.2822160

This blog post is in response to Brendan Lancaster’s blog post about Apple’s new iPhone.

Apple has been a very consistent provider of high-quality technology, professionalizing in cellphones, computers, and tablets. They have had a great run committing to their unique value propositions, rarely disappointing their loyal customers. However, ever since the release of the iPhone 6, critics and consumers have been writing unfavourable reviews about this new product.

It seems as if Apple is having difficulties satisfying the expectations of their shoppers as other competitors are starting to surpass Apple’s latest technological advancements. As Apple can’t keep up, their performance is reflected upon this.

Although Apple was able to take over the mobile industry defeating it’s ex head-to-head competitor, BlackBerry, Samsung is now giving Apple a run for its money. Brendan pointed out in his blog that sales were still significantly high considering that the new iPhone had many glitches including it bending, serious software issues, and a dysfunctional operating system. However, this was because Apple created a very trustworthy relationship with its users, so as soon as they released an update there was an immediate response to this.

I am one of those desperate users relying on their products. I have adjusted to their style of technology, so alternating to something else would be rather uncomfortable.

Apple has constantly been delivering, but because every time they promise bigger and better things I assume pressure got to them and they just couldn’t live up to their own standards. Business Korea came to the conclusion that the new flash storage used in the iPhone 6 is to blame for the crashing and failing system. For the first time Apple is faced with a serious problem they have to respond to so that their reputation or sales won’t be affected. If Apple doesn’t act quickly upon these issues, their already profitable sales from this product can backfire on them.

Source:

http://bits.blogs.nytimes.com/2014/09/24/apple-pulls-software-update-after-iphone-problems/?ref=technology&_r=0

This blog post is in response to Lucy Stephenson’s blog post regarding “The Tropicana Effect.”

Brand logos and symbols vividly distinguish brands from one another. A popular brand is usually associated with an effective design that is easily distinguishable from others.

When PepsiCo changed Tropicana’s “public face” and completely redesigned its packaging, instant drops in sales occurred in less than two months resulting to a 20% loss.

In COM 101 we dedicated a class to consumer behaviour and marketing research, which completely ties in with this. After learning about the consumer decision funnel and consumer feedback loop, it is evident that marketing may not entirely impact a business’ profit but has some influence upon it. The total 20% loss may have not all been because of the rebranding as other factors may have affected a consumer’s decision when purchasing a good. However, in this case, I believe a significant proportion of the percentage lost was due to the dramatic change.

This comes to show what a difference a change can make if it’s not planned out right. When rebranding, it is important to experiment and ease people into it because people will get confused by the sudden change. This ultimately destructs the trust once built between the consumer and company.

Maintaining trust is one of the most important things a business can do. After a consumer purchases a product or service, the consumer builds on experience to inform the next decision journey. If satisfaction is obtained, consumers will have a positive word of mouth and will commit to regular shopping habits. However, if a company plays its cards wrong, everything created would go to waste.

Lucy mentioned a good point in her blog. She pointed out that the reason why previous loyal customers may have betrayed the brand, turning to alternate brands such as Minute Maid, is possibly because there was no indication of a familiar characteristic in the new design, so consumers probably related that with what potentially was offered inside. In the eyes of a consumer, a change in packaging could be a change in quality. Therefore, I strongly agree with Lucy’s theory.

After comparing Tropicana’s two designs, I noticed a few additional issues that could have contributed to its poor performance also. The new design didn’t contain any similarities to the previous one. By removing its noticeable image of an orange with a straw in it and changing its brand name’s font and size, as well as rotating it 90 degrees, people probably had troubles identifying what was once one of their favourite drinks. Usually when drastic differences like this are made, people will superficially come to the conclusion that that product may instead be a knockoff or store brand. Also, children impact consumer behaviour as well since they greatly affect their parents’ purchases. If they couldn’t recognize the brand, they would not have made an effort to ask for it.

People usually associate change with a good thing, but if there is nothing to fix then maybe it is better not to change anything at all. Evidently, this was a lesson well learned by PepsiCo where they almost made the crucial mistake of permanently giving away their “calling card.”

Source:

http://adage.com/article/news/tropicana-line-s-sales-plunge-20-post-rebranding/135735/

Glen Muske’s blog post “Hobbies May Not Equal Business Opportunities,” covers a few ideas as to why opening a business in relation to one’s hobby might not be totally ideal.

After the Sauder Alumni guest speakers spoke with us about their stories, I have realized that each one of them relied on an inspiration to guide them through their entrepreneurship experience. Although they may have had other hobbies, they mainly relied on an idea that they thought could be profitable instead, even though it may have not been necessarily in their area of expertise.

This connects with Glen Muske’s post because it parallels with his suggestion that opening
up a business based on a hobby might not be the most beneficial nor profitable choice. Our Alumni guest speakers proved that with the right skills, drive and commitment, a successful business can be derived form there, if something is found to work with that people want or are in need of.

Each spokesperson representing either Naked Coconuts, SIP Soda, or Tangoo stated how in order to reach such a high level productivity one must be willing to dedicate a lot of time into what they are doing, be patient, and not give up within the many times of trial and error.

All the creators of an accomplished business have essentially gone through the same process. Inevitably, each one of them had to devote a handful of free time into something risky where they weren’t guaranteed a positive result

The secret here is that the actual hobby needed to develop a business is to want to take risks and make a change. Muske’s post simply clarifies that an interest and passion in a particular hobby is not enough to become an entrepreneur because in the end that might not have been what the person actually wanted or expected.

Source:

http://smallbizsurvival.com/2014/03/hobbies-may-not-equal-business-opportunities.html

Starbucks is an internationally well-known coffee chain providing tons of people with quality products and service. They also provide a comfortable location where people can find a relaxing place to socialize or surf the Internet.

Although revenue recently recorded came in slightly shorter than analysts expected, I do not think this is an alarming concern because Starbucks has a few back-up ideas to add to its already profitable business.

From a business perspective, Starbucks is accelerating in all aspects. By evaluating it’s performance according to the triple bottom line, it is noticeable that Starbucks has considered each section in effort to create shared value.

It’s responsibility as a company is demonstrated through its four main focuses, which include the community, ethical sourcing, environment, and global responsibility. These considerations all tie in with how Starbucks impacts people and the planet while making profit.

Economically, Starbucks also excels. While providing quality drinks, it offers different sizes, including child-sized drinks, and seasonal drinks. To increase sales in the future, Starbucks now plans to start doing deliveries and provide wireless phone charges to their customers.

For a company whose logo doesn’t even need to include its name on it, I don’t think they will be threatened by their surrounding competition. As Starbucks carries on with their great ideas and promotions, their sales should eventually meet the expectations of an analyst.

Source:

http://www.forbes.com/sites/panosmourdoukoutas/2014/11/01/is-starbucks-losing-its-coolness/

As the population in Canada increases, certain needs must be met. BC Hydro is proposing a very powerful hydroelectric megaproject that could supply a sufficient amount of clean, renewable, and cost-effective electricity for over 100 years.

This, however, conflicts with the views of the First Nations people. They will resort to drastic measures to protect their traditional land. There will be no hesitations fighting this case and taking whatever steps necessary to oppose this project. The Indian Act that states they have a right to this land also supports them.

Despite the economic benefit to this project, the Aboriginals value preserving the land for habitual activities such as hunting, fishing, and ceremonial celebrations. Another concern of the aboriginals is the devastating effect of flooding on the wildlife in the region.

As it becomes increasingly difficult to reach a solution, compromises will need to be made. I support the Natives in this conflict, because I believe the value of the sacred land, outweighs the value of the power plant. In summation, BC Hydro will need to re-evaluate their business plan, due to the environmental, social, and political complications involved.

Sources:

http://www.vancouversun.com/news/First+Nation+chiefs+stage+Site+showdown/10215965/story.html

https://www.bchydro.com/energy-in-bc/projects/site_c.html

As advancements in technology continue, some businesses are slowly noticing slips in their revenue. Substitutes and competition are causing this problem.

Staples is one of many businesses facing these struggles. The demand for their products is decreasing and online rivals are stealing business.

By the end of 2014, Staples is shutting down 140 stores in North America. Their focus is going to shift towards online selling.

This could be seen as a loss, but if sales continue increasing online then revenue might still be at par. Also, sales of their non-traditional items have been increasingly successful.

As long as they concentrate on improving and upgrading their furniture collection and are aware of their online competition, I don’t think they will run out of business. They just need to transfer their focus on the supply that is most demanded.

If they work strategically, I don’t believe they will be doomed. This will not be like the time Netflix took over the many businesses because there will always be some demand for what Staples sell.

Expansion of their non-traditional inventory and managing their underperforming stores will save Staples. Their strategy looks promising and I look forward to seeing their progress in the future.

Sources:

http://www.cbc.ca/news/business/staples-to-close-140-stores-in-u-s-and-canada-this-year-1.2741945

As of Oct. 29, 2014, West Jet will charge a new fee on checked-in baggage. Shortly after this was announced, Air Canada imposed the same fee.

After being a frequent flyer for the last 11 years, it has been interesting observing how each additional cost has affected the overall performance of each airline over the years. The quality of goods and services on flights is going down.

Airline companies have embraced this theory that by adding these additional charges, customers will be getting exactly what they paid for. Inversely, if they don’t want a particular service that option is also available to them.

Even though complimentary services were convenient for the customers, airlines have realized that by charging for them, profit will increase. I do agree with this, but customer satisfaction will decrease. 

However, since all airlines imitate one another’s downgrades, other than choosing the lowest-cost option, options are pretty much limited. Therefore, business is not much affected.

Most of their revenue (more than 40% estimated) is going to come from these additional fees, some of which will be inevitable. Their strategy will consist of masking these ancillary fees with their slightly lower costing flight tickets. For example, their new restrictions on carry-on luggage sizes will end up forcing their customers to check in their baggage.

Although I am not fond of all of these changes, I do see how from the business perspective this will be to their advantage.

Sources:

http://www.cbc.ca/news/business/spacex-cellphone-prices-and-netflix-business-week-wrap-1.2787064