Monthly Archives: October 2014

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