Brief Summary:

In Michael Mauro’s blog post, “Quantitative Decision Making Is Important:Except During The World Cup“, Michael critiques the production and results of creating the brand new soccer stadiums in South Africa for the 2010 World Cup. He argues that both FIFA and the host city of Africa should take some blame for creating these multimillion dollar stadiums that were once filled with the worlds best soccer players but now sit unused. Michael’s reasoning is that FIFA demands certain things out of these host cities and in order to maintain that title these poor countries must abide by their rules. Therefore, FIFA is wrong by forcing the production of these projects that will bring them profits and leave the host city in turmoil. On the other hand, the host cities have the final call on if they want to follow through with the stadiums or back out. Thus the host cities are also to blame for putting themselves into these difficult situations.

My opinion:

I agree with Michael in saying that both Fifa and the host cities are to blame, but I do not agree that the responsibility is equal. I believe that FIFA gets away with taking advantage of these host cities who offer to be the site of the World Cup. More often then not, FIFA requests the cities to build brand new stadiums and if they don’t then FIFA will move to the next country in line. These countries like South Africa are so desperate for some publicity and some way to make money. But as it turns out, they may make some for those few weeks of the World Cup, but once it is over they are left with these big empty stadiums which nobody uses. Also as Michael said, FIFA claims to be a “non-profit organization” but if all the money generated from the World Cup isn’t going to the host country then where is it going? Is it just magically disappearing? The way FIFA operates is completely unethical in my mind. No business should treat any stakeholder that way and just as we have seen in the past with companies like Nike or Lululemon, the story will eventually get out.  I think it will be interesting to see if FIFA is ever accused of abusing these countries just for their precious competition and then leaving them there to rot once it is over.

Here is one of the stadiums that was built in South Africa for the 2010 World Cup

This is what citizens of these host countries want instead of the infamous World Cup.

Source(s) Used:

Mauro, Michael. “Quantitative Decision Making Is Important: Except During The World Cup.” Michael Mauro’s Blog. N.p., 28 Oct. 2014. Web. 29 Oct. 2014. <https://blogs.ubc.ca/michaelmauro/2014/10/28/blog-post-7-quantitative-making-is-important-except-during-the-world-cup/>.

https://blogs.ubc.ca/michaelmauro/2014/10/28/blog-post-7-quantitative-making-is-important-except-during-the-world-cup/

York, Geoffrey. “How South Africa Can Offer Brazil a World Cup Lesson.” Globe and Mail [Cape Town] 8 June 2014: n. pag. Print.

http://www.theglobeandmail.com/sports/soccer/world-cup/white-elephants/article19064519/

Brief Summary:

In John Whaley’s blog post, “Maple Leafs have sights set on expanding growth in China“, John argues that the Toronto Maple Leafs latest idea of expanding marketing into China is a bad idea. He believes that instead of trying to create new revenue streams, the Leafs should be trying to improve their value for “CURRENT” stakeholders opposed to ones that live millions of miles away. He also speaks on the subject that the Leafs also want to become a central figure attached to the NHL when it is looked at worldwide. John claims that for the Leafs to do this they must first be a dominant competitor in the NHL like the New York Yankees are in the MLB. He thinks that expanding globally is more of a long term goal opposed to a short term one.

My Opinions:

I agree that The Toronto Maple Leafs are not in the right position to alter their marketing strategy towards another segment in another part of the world. They are not known enough globally to market themselves in a place like China. Especially since China is not very familiar with the sport of hockey. As John said, they should be more focused on their “current” target market and improving their team in general. An example that is more unrealistic but similar would be if Apple wanted to expand into a place like Africa. Africa is not familiar nor ready for a company like Apple to expand into its continent and Apple is better of remaining in its current target market. I disagree with John’s point that expanding globally should be a long term goal. I believe that this idea is not very realistic and would not benefit the Maple Leafs organization much.  My reasoning is because China is not a “hockey country” like Canada and expanding an organizations target segment is much more difficult thing to perform then one may think. In conclusion, I think the Maple Leafs should try to strengthen their product on the ice and continue to attack their original target markets.

This picture shows how China is surrounded by countries like Pakistan and Mongolia who have probably never even heard of hockey.

Source(s) Used:

Whaley, John. “Maple Leafs Have Sights Set on Expanding Growth in China.” John Whaley’s Blog. N.p., 8 Nov. 2014. Web. 8 Nov. 2014. <https://blogs.ubc.ca/jwhaley/2014/11/08/maple-leafs-have-sights-set-on-expanding-growth-in-china/>.

blogs.ubc.ca/jwhaley/2014/11/08/maple-leafs-have-sights-set-on-expanding-growth-in-china

Campbell, Morgan. “Maple Leafs Have Sights Set on Expanding Growth in China.” TheStar.com 7 Nov. 2014: n. pag. Print.

http://www.thestar.com/business/sportonomics/2014/11/07/maple_leafs_have_sights_set_on_expanding_growth_in_china.html

What exactly is Corporate Social Responsibility?

Corporate Social Responsibility can be defined as the actions company’s do to ensure they are working in a economic, social and environmentally sustainable manner. Keeping a positive CSR is beneficial for company’s because it gives them a chance to create shared value and it gives them a good brand image. Respecting all applicable laws and international standards, cooperating with other organizations, and performing day-to-day activities in a socially and environmentally responsible way are all things that contribute to a positive CSR.

In George Kell’s blog he is explaining why Corporate Social Responsibility is something that every company must focus on.  He is addressing the question of whether CSR is just a passing trend or if it is going to remain instrumental in business as we know it. He believes that “a company’s long-term financial success goes hand in hand with its record on social responsibility, environmental stewardship and corporate ethics.” 

I completely agree with what Kell is saying about how a positive Corporate Social Responsibility will be vital to any successful business. A good CSR leads to a better reputation which in turn leads to more customers and increased revenue. Although it may be costly to perform actions that improve CSR in the short run it will be beneficial in the long run for the company’s. Some examples are gas companies increasing oil clean up programs or forestry businesses replanting a tree for every tree they cut down. Consumers pay attention to the ways companies operate and if they see any problems they will move to the nearest competitor.  It isn’t just about the customers but about everyone involved in a business like employees, managers, shareholders and anyone else that is affected by the company.

In conclusion, I believe George Kell is right by saying that Corporate Social Responsibility is an emerging component of a successful business and will not be disappearing any time soon. If companies ignore it they will eventually be caught and will be put in a big hole. No company wants to be in the situation where they have to dig themselves out of a hole that may be too deep to get out of. The point is that if companies are willing to make a few sacrifices they will see the benefits of their good decision making

This picture illustrates the care a company needs to put into its own Corporate Social Responsibility.

This picture shows the three aspects of Corporate Social Responsibility

Source(s) Used:

Kell, George. “Five Trends That Show Corporate Responsibility Is Here To Stay.” 3BL Media. N.p., 7 Nov. 2014. Web. 10 Nov. 2014. <http://3blmedia.com/blog/George-Kell/Five-trends-show-corporate-responsibility-here-stay>.

http://3blmedia.com/blog/George-Kell/Five-trends-show-corporate-responsibility-here-stay

“Corporate Social Responsibility.” International.gc.ca. Foreign Affairs, Trade and Development Canada, 10 Oct. 2014. Web. 10 Nov. 2014. <http://www.international.gc.ca/trade-agreements-accords-commerciaux/topics-domaines/other-autre/csr-rse.aspx?lang=eng#CSR>.

http://www.international.gc.ca/trade-agreements-accords-commerciaux/topics-domaines/other-autre/csr-rse.aspx?lang=eng#CSR

In the article, “Amazon Unveils a Listening, Talking, Music-Playing Speaker for Your Home“, Brad Stone and Spencer Soper talk about Amazon’s revolutionary new tech device called the “Amazon Echo.” The Echo is a  9-inch tall speaker that plays music, fields voice commands and Internet queries, responds in a pleasant conversational voice, and will obey instructions to put products into your Amazon.com shopping cart. The gadget has the ability to hear a command from anywhere in the room and can answer any question you have in mind. For example, if you were wondering who won the Stanley Cup in 2011, Echo would scan through its data and tell you instantaneously that it was the Boston Bruins. This technological revolution is designed to make your day-to-day life much simpler and easier. 

This is the revolutionary Amazon Echo home device.

How is this article related to business though?

After analyzing, I noticed that Amazon is making use of one of Porter’s Generic Strategies. They are utilizing a modified version of a differentiation strategy by trying to revolutionize household technologies with their Amazon Echo creation. Their product is a one of a kind technology that does not have any competitor close to it at the moment. A differentiation strategy calls for the development of a product that offers unique attributes which attract the consumer. I believe that is exactly what Amazon is on to. According to Porter’s strategies, a firm that is successful with a differentiation strategy has; access to top scientific research, a strong sales division, a highly skilled/creative development team and a strong corporate reputation for innovation. Amazon has all of these aspects as part of their company. Their strongest component would be there vision for innovation. Their original business plan was already more innovative than anyone before them and now they are continuing to do so.

Amazon’s new device called “Echo” has the potential to be a revolutionary device. They are only releasing it to certain consumers at the moment because they want to make sure that they have perfected the device before they offer it to everyone.  It will be interesting to see what kind of success such a new and innovative technology will have and how drastic an effect it could have on the household technology industry.

Here is a video that shows how the Amazon Echo works:

Amazon Echo

Source(s) Used:

Stone, Brad, and Spencer Soper. “Amazon Unveils a Listening, Talking, Music-Playing Speaker for Your Home.” Bloomberg Business Week 6 Nov. 2014: n. pag. Print.

http://www.businessweek.com/articles/2014-11-06/amazon-echo-is-a-listening-talking-music-playing-speaker-for-your-home#r=hp-ls

“Porter’s Generic Strategies.” Quickmba.com. N.p., n.d. Web. 18 Oct. 2014. <http://www.quickmba.com/strategy/generic.shtml>.

http://www.quickmba.com/strategy/generic.shtml

Teck Resources Ltd. has been Canada’s largest diversified resources company since it was formed in 2001 when the company’s Cominco and Teck merged. They are in the mining business and they produce materials such as copper, zinc and coal. Businesses in this line of work all come across a similar problem, the environment. In this article, Mark Hume speaks of how Teck Resources had devised a plan to fix the selenium pollution problem in British Columbia’s Elk Valley that they had caused but failed miserably. They created a $100 million water treatment plant that was supposed to be the solution to this problem. It was evident that it did not work when Environment Canada reported that selenium levels were so high that fish were being born with deformed body parts. 

This is just a short description of what Teck resources does on a day to day basis.

Teck Resources’ treatment plant developed to improve their environmental stance. This clearly turned out to back fire on them and has become an even bigger problem. Their plan was to improve their corporate social responsibility. When Teck was developing their plan they kept in mind the three aspects of the Triple Bottom Line; social, environmental and economic. Socially, they recognized that the treatment facility would improve their brand image since the public would notice their efforts in saving the environment. Developing the plant shows that they are committed to improving the environment by reducing waste creation, increasing waste reduction and treating their polluting emissions. Both improving brand image and improving the environment go hand in hand. When you try to do one thing for your company you usually have to do the other too. These two things contribute to the final aspect of the triple bottom line which is economics. They both lead to the company being more profitable. Whether it is from increased public awareness due to the positive environmental actions or the possible growth opportunities that come from a more positive brand image.

This is an illustration of how a company must focus on CSR just as much as they do the business side of things.

Despite all the thought that Teck Resources may have put into their Triple Bottom Line and creating a more positive CSR it all went to waste. Their treatment plant did not work and seems as though it made the problem worse. This proves that it is not as easy as it seems to do these things. It takes well thought out planning, tough decision making, large amounts of money and precise execution. Something may look great on paper, just like Teck Resources treatment plant, but it is rarely the case where everything goes smoothly. Ultimately, the point is that contributing to sustainable development and creating a good Corporate Social Responsibily for a company is a difficult thing to do.

Here is a video showing what the pollution of these waters means for BC:

http://www.theglobeandmail.com/news/news-video/video-polluted-waters-what-the-mount-polley-mine-spill-means-for-bc/article19989169/

Source(s) Used:

Teck.com. Teck Resources, n.d. Web. 9 Nov. 2014. <https://www.teck.com/Generic.aspx?PAGE=Teck+Site/Diversified+Mining&portalName=tc>.

http://www.theglobeandmail.com/news/british-columbia/teck-water-treatment-plant-shut-down-after-dozens-of-dead-fish-found/article21359828/

Hume, Mark. “Teck Resources Water-Treatment Plant Shut After Dead Fish Found.” The Globe and Mail [Vancouver] 28 Oct. 2014: n. pag. Print.

https://www.teck.com/Generic.aspx?PAGE=Teck+Site/Diversified+Mining&portalName=tc

In the National Hockey League, the Boston Bruins are looked at as “the team to beat” year in and year out. There are many reasons why their organization is so respected by other teams and why other teams fear them so much. One of the main reasons they are so successful is that they have built a certain culture into their entire organization. They have been nicknamed “The Big Bad Bruins.” They pride themselves on being a strong, physical and tough team to play against. This is a huge reason why they have had so much success. If your team doesn’t have an identity then you will not be successful. Weaker teams only have a few good players but do not have that sense of unity that teams like Boston have. They may not be the most skilled or do things the prettiest way but they work together and all have one similar goal in mind. That is winning the Stanley Cup.

This is the Boston Bruins team identity and what they are known for across the league.

Similarly to the world of professional sports, the business world can use this philosophy to be successful also. Integrating a certain culture into a company should be high on the CEO’s to-do list.  Employees need to represent their company’s values through the way they interact with customers. They cannot be ignorant and unreliable or else the company will lose these direct customers and possibly future customers due to them.  If the employees perform their duties the way they were instructed to do then they will be rewarded. For example, the company Zappo’s (Online Shoe Company) wants everyone to feel equal in the company and want it to feel like a second home. They offer things like free everyday meals and free medical insurance. The CEO has the same office space as any other employee and only makes $36,000 a year. Their goal is to raise the entire company’s morale which will ultimately increase performance. The culture they are implementing into their company is that everyone should be happy and enthusiastic when ding their job.

Comparibly, the Boston Bruins ad Zappos both have one common plan. That is to establish a certain type of culture throughout their organizations.Both in the sports and business world’s success depends on how well your team works together. If your whole team doesn’t have the same mentality then your system will not work and there will always be someone better. To stay on top you have to go above and beyond anybody else in your industry.

Source(s) Used:

Lentile, Sal J. “The Boston Bruins Philosophy: You’re All In, Or You’re Out.” TheHockeyDaily.com. N.p., 16 Sept. 2013. Web. 10 Nov. 2014. <http://thehockeydaily.com/boston-bruins-philosophy-youre-youre/>.

http://thehockeydaily.com/boston-bruins-philosophy-youre-youre/

Article: http://www.vancouversun.com/news/metro/Unilateral+park+declared+Tsilhqot+includes+Prosperity+mine/10192766/story.html

Whenever the First Nations need something or do not approve of something they are usually given what they please. No matter what the matter is, it seems as though nobody wants to upset them. In some cases I’m sure that the First Nations make pretty good cases and receive what they deserve. On the other hand though, I’m sure there is instances where they do not make good arguments and still get what they want because nobody wants to go against them. I am a person who believes that one should only get something if they truly deserve it.

On September 11th, 2014 there was an article in the Vancouver Sun titled “Tsilhqot’in set to declare site of New Prosperity mine a tribal park.” Just from reading the title I noticed that this was another story about the First Nations complaining about some companies project that is supposed to be built on a specific piece of land. Stories like this seem to always involve First Nations people if you ask me. To be specific, Taseko Mines Ltd planned on opening a mine on the land that they own around Fish Lake (near Williams Lake). The Natives, who have “long opposed” the mine, have suddenly decided to make this land part of their Tribal Park. This would mean that the mine would not be permitted in the area it originally planned on occupying. The area of the mine was recognized by the courts as out of the Tribal Park boundary. Despite that, the natives still decided to expand the park boundary into the mine site.

These types of situations are what is happening in these native disputes. They believe that they are entitled to the land and have outright power in the situation. When they do this, the companies they are fighting against are losing big deals and lots of money. Taseko Mines Ltd had planned this $1.1-billion New Prosperity copper-gold project and now they do not know the future of it. Since the natives disputed their business plan they have no way out really. The future of the project ultimately lays in the natives hands which is not good for the company. I feel that it is not right for the natives to just declare the land as part of their own park. Taseko had a development plan in place and put large amounts of time and money into creating it. Now all that work is for nothing and its all over for them. Just like that? How are the natives able to do that? I do not think that they should have that much control in the outcome of the situation. There is really no way for Taseko to work around this. Their business plan was ruined. The natives cannot just declare the land theirs and expand their boundary without giving Taseko a chance to defend itself. The problem is that it seems as thought they can, and everyone seems to just let them continually do it.

Article: www.theglobeandmail.com/report-on-business/international-business/us-business/hp-faces-10-year-ban-as-canadian-governments-technology-supplier/article20774807/

Hewlett-Packard, otherwise known as the company HP, is one of the largest suppliers of hardware, software and services to small- and medium-sized businesses and large enterprises in the world. They supply technology to the government, health and education sectors. One could say that without the technology that HP provides, a lot of businesses and other corporations would be in trouble. The article above talks about how HP has gotten into some recent trouble of their own. They were caught giving bribes to Russian government officials in turn for a large government contract. The Canadian government, after hearing this, has invoked a 10 year ban on HP providing them with their technology. Canadian government is not as lenient as other countries when it comes to stuff like this. They stated that they are only going to do business with suppliers who “respect the law and act with integrity.” 

This affects both the Canadian government and HP in a very drastic way. The government now loses all the technology that HP has been supplying them over the years. They now have to go and search for another corporation that can provide the supplies that HP has given them for many years. That could be tough to do because HP is arguably the top technology supplier in the world and it is hard to find someone else that has the expertise and efficiency that HP maintains. On the other hand, HP is probably affected by this more than the government. They are losing not only the business that the Canadian government has provided them for many years but could possibly lose more because of it. Their other consumers may follow in the steps of the Canadian government and not purchase their goods anymore. This negative burden is now attached to their brand name. When someone decides on purchasing an HP product or another suppliers they may now choose against HP due their mistake. On that note, HP’s competitors take advantage. This now creates a new market for other technology suppliers since businesses may be looking for new suppliers to replace HP. If a business can produce products that are better than or equal to HP’s they could seriously challenge for this market.

The whole situation that HP has put themselves in could prove to be extremely harsh on the overall value of their company. They are going to have to come up with a well thought out business plan that will get them back to where they were. No business wants to have something like this labeled to them. Only negative things can happen when you are caught doing a criminal act and they can be very difficult to recover from. I am very interested to see what kind of plan HP is devising to overcome their wrongdoings.

Here is a video that sums up HP’s situation:

http://www.bnn.ca/Video/player.aspx?vid=451006

Article: http://www.cbc.ca/news/business/staples-closes-15-canadian-stores-1.2783780

Staples closed 15 of its 331 stores located in Canada at the end of September this year. Their reasoning behind these decisions was that certain store locations were underperforming and removing them would increase the results of the company. They have recently been in a “in-store sales slump” because the retail market is moving online. In the old days to purchase a good you had to go somewhere and buy it. This has all changed with the growth of modern technology. People now have the option to purchase goods online in the comfort of their own homes.

Online shopping is one of the most prominent innovations in the retail industry ever. It was what some would call a “game changer.” Retail stores are now the second option in most consumers eyes. This means that companies have to make adjustments. If all the business is online, what are companies going to do? They are going to make or improve their online stores. That is exactly what Staples is doing by removing those 15 stores. Since other competitors like Office Depot have closed retail stores and are moving their business online, Staples must do the same. In general to keep up with competitors, companies must keep up with modern ideas and innovations. If they choose not to then they are taking a huge risk that could leave them in a hole too big to dig out of. For example, if Staples did not expand their market online and only had retail stores they would probably go out of business. With just retail stores and no online option the company would have no diversity. The best companies are those who want to do more than just “keep up” with its competitors. They create their own innovations and come up with new ideas that will make consumers choose them. Staples has introduced in-store pickup windows, widened its office supplies product line and improved its copy and printing business. Staples is trying to improve business with these new market ideas and improvements of their products. In order to be successful, companies must be able to give the consumer exactly what they want and more.

Article: http://www.bnn.ca/News/2013/7/2/Lululemon-sued-for-fraud-over-sheer-yoga-pants-CEO-exit.aspx

The clothing company known as Lululemon Athletica was founded in 1998 by Chip Wilson, a well known Canadian Entrepreneur for innovation and marketing. Wilson’s original idea was to create a new type of clothing to wear specifically for people who did yoga. He saw that most athletic clothing was made of cotton which was a sweat inducing and heavy material.  This gave him the idea of offering consumers a lighter, more comfortable style of sportswear. Since then Lululemon has grown to become one of the most prominent and successful suppliers of sportswear for men and women in the world.

Every company in the world wants to achieve the most success possible in their area of expertise. In order to do that, there are many things the company must do. Things like maintaining the proper market prices on your product to maximize profit or using the right marketing plan to persuade the consumers to buy your product instead of your oppositions. When running a business there are many people who you must keep happy to maintain progress. Those are all of your shareholders- consumers, suppliers,shareholders, employees, owners, managers, etc. A business that is ethical is one that operates on a day to day basis the proper way, they conduct their business legally and do what it takes to be successful.

In July 2013, Lululemon was hit with a lawsuit because they were accused of defrauding shareholders by hiding certain defects in their yoga pants. The lawsuit was filed by a shareholder named Houssam Alkhoury who owned 7500 shares in Lululemon. Lululemon has always been seen as a brand that last a while because it can take the wear and tear. But since they were selling pants that were not the advertised fabric they were committing fraud. Due to this, “Lululemon shares fell 17.5 percent… wiping out about $1.62 billion of market value.” The way Lululemon conducted themselves is a perfect example of business ethics. In this case it is a unethical business action. By false advertising and committing fraud Lululemon’s company as a whole will suffer. They lose money, lose consumer interest, lost market value, this list goes on. Businesses are no longer judged on just their ability to provide goods and services but also on the trustworthiness of their brand and the social view of the company. Nothing good can come out of an unethical business decision. A successful business is one that does not put more work into one area than another or uses illegal means of business. The act Lululemon committed is one that they will have to try and recover from but as of now they are just what R. Edward Freeman calls businesses who do not follow proper conduct, “A business in decline.”

Additional Cites:

http://chipwilson.com

http://www.lululemon.com/about/history