Month: November 2011

There’s a new breed of business in town, and its name is social enterprise. Through market-based models and strategies, social enterprises tackle society’s most pressing needs with a business mindset.

The Globe and Mail’s article gives us a great example – Inner City Renovation. Its purpose is simple – employ people who face disadvantages finding employment such as people with criminal records, formerly in gangs, and facing addictions. In addition, the company’s goal is to revitalize Winnipeg’s inner city area. Double whammy, much?

Some would argue that there are pros and cons regarding social enterprises, which leads me to wonder what exactly motivates a company to run a business with a social mindset? Why not run a purely profit-based company and then a charity? Like with Inner City Renovation, it’s becoming more clear how the two are connected and how rather than having a separate charity, it’s possible to connect a social purpose with business tools to create a highly successful company that focuses on more than just profit. There’s also automatically positive effects on the public image of the company, which is an added plus.

The company Groupon Inc was launched in November of 2008 and essentially offers daily deals in 45 different companies across the world. Consumers can take advantage of “groupons” (groupon coupon deals) and earn discounts off tourism, dining, or even shopping prices around the world. Video on how Groupon works.

In terms of entrepreneurship, Groupon is a prime example of a huge success. Launched only a few years ago, it’s already worth over $1B. It innovated and provided a new product as well as a completely new market – online daily deals/coupons. Since its inception, the Groupon model has been replicated by many others such as Living Social.

Another point supporting my point is this: Groupon became the fastest growing company in web history, under the leadership of the young CEO Andrew Mason. It grew to the billions in a record amount of time, while innovating the coupon industry by computerizing everyday deals and making them available to people around the world.

In a nut shell, this company showcases experience in creating a new product, new markets, and new forms of organization through the international, online nature of Groupon. Furthermore, the amount of wealth generated, and the speed at which it was done, is remarkably under 5 years. Very typical of a successful entrepreneurial venture.

Groupon has got to be the quickest way anyone has ever become a billionaire… wow, definitely a great example of entrepreneurship at its best.

In a recent blog post on the Wall Street Journal, it was shown that manufacturing slowed down in the past month. The Institute for Supply Management, founded in 1915, is the first supply management institute in world. It’s a not-for-profit educational association that strives to provide supply management information in more than 80 countries. The ISM’s measure of factory activity dropped from 51.6 to 50.8 in September.

After watching Mahesh present Supply Chain Operations in class, reading about a drop in factory activity means a lot more to me than it would have beforehand. I attribute this to a lower inventory turnover rate than there should be for the product. Consequently, products are staying on shelves for a longer amount of time, which ultimately means consumers are demanding a lower quantity of these products. This, in turn, could be a result of less marketing or even a lack of market research.

It’s incredible to see the change in my overall perception of how different aspects of the business world intertwine. Two months ago, a drop in factory activity would mean nothing more to me than there being less products produced. Now, I see the connections between this supply chain issue and other aspects of a business.

It’s interesting to see how different concepts are coming together.