A European style café known for its Parisian flare and quality high-end cuisine is a local café called Café Crepe. This café is found in the heart of a few major cities in North America and is always strategically located in the best commercial areas of each city. The owners of this restaurant are true entrepreneurs. The company started its first location of Café Crepe on Robson Street in Vancouver. This is a very expensive location to do business in because commercial space rents are well above two hundred dollars per square foot here. As a result, starting a café at this location was certainly a very risky undertaking by the company. Normally risk is proportionally related to reward. This was clearly evident with the first location of Café Crepe where the risk was great and the reward turned out to be equally as high. This demonstrates that the entrepreneurial strategy of the company paid off with its first store. Furthermore, the innovative management of the company with its track record of excellent food and service allowed it to expand its business to other locations in North America. This shows that Café Crepe developed entrepreneurial wealth through its first location, which enabled the company to expand its business to other locations. Café Crepe started out in one location and currently has  seven other stores in North America, this demonstrates the tremendous capability, strength and entrepreneurial skills of the management team.

 Citation: http://www.cafecrepe.com/index.html          

Frances Horodelski’s blog is one that I continuously follow up on as I find it quite captivating and enriching. In one of her blogs specifically Merry-go-round equity markets she describes how the stock market has suffered dramatically due to landmines. Hordodelski uses the term landmine to illustrate the current downfalls in the global economy. The issues that have led to downward pressure on stocks include: the Japanese earthquake, a series of rate hikes in China and Congressional foot-dragging on raising the U.S. debt-ceiling. However, the most current and largest issue is due to the European crisis. Many corporations are becoming less profitable and their stock prices reflect the reduction in profits, since stock markets are quite efficient. A corporation’s main objective is to continue to build strong communication lines with its shareholders in order to keep them updated with current developments within the corporation. In this way, there are no surprises as to production, sales and ultimately earnings forecasts produced by the corporation. These forecasts are becoming more difficult to produce and meet because of the above noted factors. For example, because most companies operate in a global environment today, they may be affected by not only local events, but by global developments. This is especially true of actions taken in areas like China, India, the USA and Europe.  In this global environment, the best a corporation can do is to develop a forecast as accurately as possible based on all company specific internal and external information it has available to it.

Citation: Horodelski, Frances. “ Merry-go-round equity markets.” 11 October 2011. Web. 29 October. 2011. <http://www.bnn.ca/Blogs/2011/10/11/Merry-go-round-equity-markets.aspx>

Picture: “Warren Buffett one-on-one with BNN’s Kim Parlee” 25 June 2008. Web. 29 October. 2011. <http://everythingwarrenbuffett.blogspot.com/2008/06/bnncom-warren-buffett-one-on-one-with.html>

 A blog post by Alice Cheung in Section 102 outlined how Google eagerly wants to enter the social media industry. Google is adapting a way for online users to communicate with each other, similar to that of Facebook. This post had me thinking, is Google’s investment in the networking field a sound decision? Its rival Facebook has well established itself for many years now, making it very difficult for new competition to enter the market. However, Alice Cheung stated that Google is developing new innovative applications that Facebook does not currently have. This approach by Google may attract new customers that find these applications useful. Google needs to clearly differentiate their services from Facebook in order to attract a new customer base. It should not replicate features currently used by Facebook, unless they are much more superior to those of Facebook. Today a customer is more likely to use Facebook than Google for social networking because Facebook is very well established in this area. Certainly, Google has the financial strength and a huge following to make strides in the networking area. However, it must be cautious to ensure that it does not fail. If Google does not succeed in this area it may put a blemish on its reputation in the market place.

Citation: Cheung, Alice. “Google+ vs Facebook, who will win?” Comm 101 102 Alice Cheung. 9 October 2011. 24 October. 2011. <https://blogs.ubc.ca/alicecheung/>

Picture: Stice, Keeneth. “Can Facebook Predict the GOP Nomination?” 17 August 2011. Web. 23. October. 2011.    

“WHAT DOES IT TAKE TO MAKE EFFECTIVE LOGOS?.” Web. 23 October. 2011. <http://www.pixelavatar.com/blog/general/what-does-it-take-to-make-effective-logos/>

 As I was browsing through various blogs of my classmates, I came across a post in Comm 101 section 104, Joyce Li’s blog that had me interested in Starbucks’s new reward program. Joyce Li  described how Starbucks is implementing a new reward program for customers that frequently purchase Starbucks products. I found it quite surprising that Starbucks is only adding its reward program now, while other coffee places have been using similar reward programs for many years. In the past, Starbucks may have felt that this program was not needed to attract new customers and maintain their existing customers. It is quite evident, that competition is more fierce than it used to be, due to the many quality coffee places existing today in the market place. This is why Starbucks has implemented this new system. As I am a regular customer at Starbucks, I believe this new approach that they implemented is very much needed to properly compete in the market. The reward program is very important as it creates close relationships with customers and rewards them for being loyal to the Starbucks brand. Creating a strong loyalty program with its customers may ensure that Starbucks retains its current customers for many years to come as well as attract new customers.

 Citation: Lo, Joyce. “Starbucks Offering Rewards Program.” Comm 101 104 Joyce Li. 5 October 2011. 23 October. 2011. <https://blogs.ubc.ca/yljoyce/>

Pictures: “Tag Archive for ‘Starbucks Canada.”  27 May 2011. Web. 23 October. 2011.  <http://smartcanucks.ca/tag/starbucks-canada/>

 NEW YORK- McDonald’s Corporation’s, net profit increased by 9 % this year. McDonald’s appears to be doing very well during a time of recession. Investors appreciated McDonald’s recent results and have boosted its share price by more than 3% to USD 91.96 per share.

McDonald’s success is due to its re-positioning of its food products to healthier and more nutritional choices. By offering these new food lines that are still quite affordable, especially during a recession, will attract more sales. However, McDonald’s has increased its prices on certain items on its menu slightly to proportionally match the funds expended on new ingredients. Simultaneously, it must be cautious to not raise its food prices substantially so that it does not lose customers. Moreover, another reason for its higher profit is its approach of using direct marketing to illustrate its nutritious and healthy products. The direct marketing method includes direct mail flyers, brochures and promotional advertisements. This approach is ideal as it builds customer loyalty; at the same time the company receives feedback of how people are responding to these new promotions. It will allow prospective customers to be aware of the benefits offered by the sales promotions that otherwise may not have been exposed to. Certainly, McDonald’s direct advertising campaign has been a success. Proof of this, is their continued increase in sales and ultimate increase in the corporation’s profitability.

Citation:  Associated Press. “ McDonald’s net income rises 9 pct” 21 October 2011. Web. 21 October. 2011. <http://online.wsj.com/article/AP7a914ccf34e34e1abed1b5192d67f1f8.html#printMode>

Picture: “McDonalds Canada – Free Biscuit Sandwich” 9 February 2011. Web. 21 October. 2011.<http://www.mrsjanuary.com/canada-freebies/mcdonalds-canada-free-biscuit-sandwhich-february-9-10-2011/>

Home prices in Canada have risen substantially over the past several years. The rise in house prices has been more drastic in Vancouver than in Canada’s other major cities. Canada has been designated as a great destination for immigrants, especially for people from the Far East. In general, low interest rates encourage investment because the servicing costs of the funds borrowed are relatively low. In Canada more specifically in Vancouver the supply of houses for sale is low and the demand by foreign purchasers is drastic which drove the property values to levels never seen before. In fact a peak in Vancouver real state pricing has been reached this past July. The enormous demand in Vancouver real state is a result of immigrants considering Canadian cities as an ideal place to live in. This is specifically true for the city of Vancouver. The major reason for this is as follows: it is a clean and safe city, it offers natural beauty in the form of mountains and sea landscape. Furthermore, it has many amenities found in major cities but at a higher standard. For example reliable policing, fire departments and an accessible health care system which is available to everyone. Overall, the love of Vancouver by foreigners has attracted many of them to this city and more are expected to arrive in the near future.

 Citation: Reuters. “Canadian home prices scale new heights.” 28 September 2011. Web. 19 October. 2011. <http://www.bnn.ca/News/2011/9/28/Home-price-index-hits-record-high-in-July.aspx>

Picture: Analytical Software Packages.Inc. 29 August 2011. Web. 19 October. 2011. <http://www.vancouver-cruises.com/>

The Canadian Wheat Board (CWB) is expected to change its method of operation as the government is replacing the existing monopoly with a system that will allow farmers to sell directly to their customers. One advocate Blair Rutter, who is the director of the Western Canadian Wheat Growers Association believes this new regulation will not work. He states that the farmers selling directly to their buyers will not be as profitable as the status quo. 

It appears that the farmers are not pleased with the new legislation. The farmers feel that the government does not have a true understanding of the whole process. Although, the government may feel that they are doing the right thing by implementing this change, it may very well work against the profitability of the farmers. Under the current system with the CWB in place the customers worldwide consider the Canadian supply as reliable, trustworthy and abundant to meet their needs. Whereas, in the absence of the CWB these same customers may very well view the Canadian supply as inefficient and not consistent to meet their needs. Finally, the current system has been proven to work efficiently whereas the proposed system is questionable to how well it will work.

Citation: Reuters. “Wheat Board downsized by Federal government” 18 October 2011. Web. 18 October. 2011.<http://www.bnn.ca/News/2011/10/18/Wheat-Board-downsized-by-Federal-government.aspx>

Reuters.“Breaking the wheat board monopoly” 15 February 2011. Web. 18 October. 2011.  <http://www.bnn.ca/News/2011/2/15/Breaking-the-wheat-board-monopoly.aspx>

Picture:“US Wheat President Alan Tracy to Aussie Wheat Growers- US Wheat Farmers Want You to Do Well.” 28 February 2010. Web. 18 October. 2011. <http://oklahomafarmreport.com/wire/news/2010/02/media/03203_AussieWheat.jpg>

 Wal- Mart Stores, Inc’s. toy prices this holiday season appear to be substantially lower than the competing stores of Target Corp. and Sears-holding Corp. This places Wal-Mart well ahead of the competition. If one store is offering substantially lower prices for the same good and service, a customer is more prone to buy from the company that is offering a lower price. This means the other companies should reposition themselves in such a way that they are able to re-gain the customers they lost as well as attract new ones. Target and Sears should use marketing research to help them reposition themselves  so that they can meet their customers needs. This will allow these companies to gather relevant information about the market and to gain insight of their customer preferences. In order for Target and Sears to successfully compete they firstly need to market their toys in such a way that they attract the attention of children. They need to introduce a line of toys that is much better accepted than those of Wal-mart. Furthermore, another major area they can emphasize to their prospective customers is the safety of their products. They can provide brief yet complete safety brochures that are easily understandable by the consumer. These proposed measures will likely ensure much stronger competition with Wal-Mart.

Citation: Townsend, Matt.“ Wal-Mart Beats Target, Kmart on Toy Pricing.” 14 October 2011. Web. 16 October. 2011. <http://www.bloomberg.com/news/2011-10-14/wal-mart-beats-target-kmart-on-toy-pricing-for-holiday-season.html>

Picture: <http://www.marketingshift.com/companies/retail/wal-mart.cfm>

The price of peanut butter in the United States is expected to rise due to the severe drought encountered this past year. Kraft Foods (KFT, Fortune 500) which carry the peanut butter brand is expected to increase sales by 40% and ConAgra Foods (CAG, Fortune 500) peanut butter will rise by 20%. Due to the increase in price the quantity demanded for peanut butter will fall substantially. Customers will be less willing to purchase peanut butter and in turn will look for a substitute in order to satisfy their personal needs. As indicated by Porters Five Forces, the peanut butter industry is clearly susceptible to the threat of substitutes due to the rise in price. This reinforces the fact that the peanut butter industry needs to come up with a solution to minimize the threat of substitutes.

Most consumers including myself are less willing to pay an extra 20% to 40% for the same quality and quantity of peanut butter. Many consumers will  be more inclined to change their desires for peanut butter and seek an alternate substitute. This other option can fall between the lines of making one’s own homemade peanut butter or purchasing a similar product. Furthermore, the peanut butter industry will face a decrease in sales this year because of the low supply of peanut butter and the resulting increase in its price. It will have to endure these consequences for the time being and hope that next year the whole industry will have a much better harvest.

 Citation: O’Toole. “Get your peanut butter — before prices soar.” 14 October 2011. Web.15 October. 2011.  <http://money.cnn.com/2011/10/14/markets/peanut_butter_prices/>

Picture: Lengeman III,William. “Beyond Jelly: Reinventing the Peanut Butter Sandwich.” Web. 18 October. 2011.<http://www.epicurean.com/articles/beyond-jelly-reinventing-the-peanut-butter-sandwich.html>

It is known worldwide that the US has strict security measures at all its airports. President Obama is currently experimenting with the creation of a “PreCheck” program in the airports. The program will allow travellers to pass through security in a more efficient and effective manner. This security program will pre-scan passenger information prior to their arrival at the airport. One would then ask, what is the trade-off between providing U.S. airport security staff with all your personal information versus the time saved in going through security as compared to now. Under this scenario, frequent travellers will more likely be willing to give their personal information without hesitation because of the time they will save. A concern stated by the US airport security official McLaughlin is that this new security measure could not “apply [to] individuals that we know [little] about and potentially pose a greater risk to aviation.” This demonstrates that this security measure could only be used for frequent flyers whose background could be checked thoroughly in advance thus posing limited risk. 

Citation:  Henery, Ray. “ 4 Airports try limited low-hassle security checks.” 4 October 2011. Web. 6 October. 2011. <http://www.forbes.com/feeds/ap/2011/10/04/travel-us-airport-security_8716768.html>

 Picture: “Some Important Airport Security Tips.” July. 2001. Web. 6 October. 2011.  <http://www.urbanchictravel.com/2011/07/some-important-airport-security-tips/>

“Airport Security Should Not Terrorise.” 18 April 2011. Web. 6 October. 2011.<http://www.bcnn6.com/2011/04/airport-security-should-not-terrorise.html>