P.C.’s blog, “VW’s Struggles on the Road to World Domination” in The Economist on October 14^th explores Volkswagen’s attempt to dominate in the car industry.  The blog post addresses the announcement of Volkswagen and Suzuki’s partnership in 2009 that has made little to no progress.  However,  as P.C. outlines, there is an increasing demand for Volkswagen vehicles as they are targeted to young adults.

I believe a partnership between Volkswagen and Suzuki is unique.  For example, Volkswagen is a German brand and Suzuki is a Japanese brand.  Volkswagen and Suzuki are also both culturally different; hence, the point of differentiations for their vehicles are dissimilar.  Many consumers view German cars as being high-quality and are well-engineered; whereas, consumers view Japanese cars as being efficient and reliable.  In the future, the idea of having cars that possesses both German and Japanese qualities is quite enticing to many consumers.

Take a look at this Volkswagen commercial: Volkswagen Commercial

I find Nicole’s November 6^th post on HMV’s announcement of closing of its Robson store very interesting.  Being a resident near Vancouver, personally, one of the main features that the Robson HMV has that stands out for me is its size.  With a store so large in size, it makes me wonder to how many products have to be sold in order to pay off its expenses?  In her blog post, Nicole has addressed the issue of a shifting trend, where consumers are relying more on online music and video streaming.  Advancements in technology have threatened DVD and CD retail companies, such as HMV.   The blog post has provided me with the insight to really how fast technology and trends are changing in society.

With similar companies, such as Rogers Video which has closed down stores (Richmond News) and Blockbuster which has already gone bankrupt, I believe it’s time for HMV to start initiating new services to keep up with social trends.

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Relating back to class 20’s topic of social entrepreneurship, I immediately thought of a charity I read about last year.  This Vancouver-based charity, the “Cinderella Project” is an organization that is entirely run by volunteers and is funded through donations and sponsorships.  Its goal is to encourage youths to stay in school.  The Cinderella Project created a program called “Boutique Day” where it provides students from lower-income or less fortunate families with special event attires for their graduation.  Not only are these students given the opportunity to experience their graduation, but the Cinderella Project also helps boost their self-esteem, despite their financial background.

I believe the Cinderella Project is an excellent example of social entrepreneurship.  Although it is a local program, the motivation and concept behind its project is very meaningful.  It is stated in its website that “Nearly half of all Cinderellas and Cinderfellas are chronically ill or physically or developmentally disabled” (http://thecinderellaproject.com/about.htm); hence, the project not only creates diversity, but it also provides youths with opportunities.

Click here to find out more about this amazing project.

The classical definition of entrepreneurship is typically a person who starts his/her own business.  When it comes to entrepreneurship, the company I think of immediately is Apple.  Steve Jobs, one of the co-founders of Apple, has perhaps created one of the most influential brand that revolutionized technology.

After reading the Class 19 preparation, I concluded that Apple is an excellent example of  an existing entrepreneurial company that focuses on most, if not all of the important entrepreneurial qualities.  Apple is proven a successful brand through its increasing “amount and speed of wealth“.

Most importantly, Apple possess the entrepreneurial quality of innovation.  With constant development of innovative products such as iPad and iPhone, Apple’s main advantage over its competitors is its devotion to innovation; hence, Apple is definitely one of the best modern-day example of entrepreneurship.

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Priscilla Wito outlines a very interesting point in her post in her blog entry “BlackBerry Goes Black for 3 Days”.  She questions the creditability of companies when they release information about costs and expenses into the public.  This introduces the interesting question, why do companies lie?  Perhaps companies lie to maintain a reputable brand image?  Or perhaps companies lie to appear to be more consumer-friendly?

The reason why companies lie has also been a topic addressed in Jerry Schuitema’s economics blog.  Schuitema explains that a company may have mission statements that “reflect benevolent intent”, however, if “The company whose actions don’t bear out its statements of purpose is telling a lie” (http://schuitema.blogspot.com/2011/09/are-companies-lying.html).

Both Priscilla Wito and Jerry Schuitema’s blogs similarly explore the ideas of companies’ reliability.  This makes me question if I, as a consumer, can trust the information companies publicizes into the media?  This also makes me curious to how many companies I make purchases from are lying?  I believe companies are very powerful and it is difficult for consumers to expose the truth.  For consumers, the question is no longer why companies lie; the real question is which companies can be trusted?

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Scott Simpson’s article “This ‘one percent’ group has Explicit Eco-agenda: Companies direct fraction of gross revenues to environmental projects” in the October 24^th issue of the Vancouver Sun outlines the new 1% for the Planet project.

Simpson quotes 1% for the Planet (1% FTP) CEO, Terry Kellogg, that 1% FTP is a program companies can join by dedicating 1% of their total revenues to help the environment.  A portion of this 1% will go towards the 1% FTP program; whereas, the remaining portion of the money will be donated to an environmental group of the companies choice.

Simpson cites Kellogg who says that “businesses have been joining [1% FTP] at a rate faster than one per day” (Vancouver Sun).  As there is an increasing consumer demand for more environmental products and an expectation for more socially responsible companies, many businesses are jumping on the “bandwagon” to become more sustainable.

I believe 1% for the Planet is a great program.  The environment is benefiting as environmental awareness is spreading.  Businesses are benefiting by marketing their environmental-friendliness using the “1% FTP” logo on their products.  This program creates a win-win situation for both the environment and companies.

Original Article Here

1% for the Planet Website!

Relating back to Class 13’s discussion on the importance of inventory, Sharon Silke Carty publishes the article “Chrysler Wrestles with High Levels of Inventory as Unsold Vehicles Sit on Lots” in USA Today on November 2nd, 2006.

Chrysler Logo: Picture Credits

The article reveals that in late 2006, more than three-quarter of Chrysler’s inventory is filled with its 2006 models; whereas, other companies have started producing 2007 models. Silke Carty quotes Chrysler which reveals that it has around 50,000 vehicles sitting in the storage lots unsold. Chrysler’s main problems are that Japanese and Korean cars dominate the automobile market and high gas prices make consumers reluctant to purchase pick-up trucks and big SUVs. Silke Carty also quotes AutoNation’s president Mike Maroone, that Chrysler hasn’t “yet right-sized production with demand” (USA Today). This means that Chrysler is producing vehicles that are not in demand; hence, these unsold vehicles deteriorate in the storage lot, or are forced to be sold at low prices.

This article reinforces the importance of inventory management. If inventory increases and sales do not, then the company will start to lose profits. This situation will continue to worsen until the company begins to produce products that are demanded.

Original Article: “Chrysler High Inventory”

Question: What comes to mind with the words…

Smart phone?    iPhone.

Music device? iPod.

Purchasing music?  iTunes.

Laptop?   MacPro.

Portable Tablet?   iPad.

Referring back to the class discussion on brand value.  In 2010, the number one company with the most valued brand is Coca-Cola, followed by Google in fourth place and Apple in seventeenth. In Interbrand.com’s study of the top brands in 2011, Apple, unsurprisingly jumps to eighth place with a 58% change in brand value from last year.

In Nick Bilton’s article “Disappointment? Apple’s iPhone 4S Breaks Sales Records” in The New York Times on October 10th, he cites how Apple reveals that its new iPhone 4S reaches more than 1,000,000 orders within the first 24 hours; whereas, compared to the iPhone 4 released earlier, sales only passed 600,000 orders.

How did Apple’s brand value change this dramatically within one year? I believe that the demand for Apple products is creating a trend. Apple continuously produces similar products, but with updated qualities; yet, consumers are willing to purchase these “improved” products. Hence, innovative products and consumers’ high demands make this company profitable.
2011 Best Global Brands

“Apple Breaks Sale Records with iPhone 4S”

Picture above is taken from Zenilshroff.com  Credits

In relation back to the communications discussion in class eight about mobile apps, Dianne Buckner’s article, “Want to get noticed? Sadly, there’s no app for that” in CBC News explores the expanding idea of creative apps. Buckner cites Bruce Croxon from the television series “Dragon’s Den”, that the advantage of using apps is that “anybody can create” one; however, the disadvantage is also that “anybody can create an app” (CBC News).  Businesses are using apps as a promotion method. Since creating apps “no longer requires huge teams and a big investment” as Buckner paraphrases Croxon; this method to advertise is becoming increasingly popular. With already several hundred thousands apps, how do companies stand out? Buckner quotes apps entrepreneur Tamara Vulkusic that an app name has to represent what the app is. As technology advances, more companies rely on IT to market their products or services. Apps are convenient. They can easily be accessed through mobile smart phones. With this is mind, I believe creating an app no longer makes businesses unique, instead, creating an app is becoming a mandatory trend for businesses.

Original article can be found here: Dianne Buckner’s Apps article

In The Globe and Mail article “U.S. Personal Income Falls, Spending Rises”, Martin Crutsinger explores the decrease in earning for Americans, but the increase in their spending. This article relates back to the idea of economic inflation. Crutsinger reveals that the lack of new jobs and the lower wages are increasing consumers’ willingness to save money. Due to inflation, Crutsinger writes that Americans are spending more money on products such as food and clothing, but less on appliances and costly products.  This idea connects back to Class two’s discussion of needs versus wants.  Crutsinger cites BMO senior economist Jennifer Lee that although consumers are spending more; however, “the gains are pretty mediocre” (The Globe and Mail). The article states that the main reason causing this is the increase in prices such as the prices of food and gases. Although consumers are saving more of their incomes, they are required to pay more money on necessities. Despite customers spending more money, with rises in prices, the economy in fact has not gained a significant growth.

The original article can be found on The Globe and Mail website here:

“U.S. Personal Income Falls, Spending Rises”