Austen Perry's Blog

The Arc Initiative is a unique group, founded by students and faculty from UBC, that strives to create programs that build local leadership and management abilities in developing countries. Their method is based upon the belief that giving these business tools to communities will provide long term help rather than short term fixes. It is for this reason that even if the United Nations was fully funded, the Arc Initiative and social enterprise would still be needed. The United Nations puts more focus on crises and rebuilding rather than trying to push further in development. Conversely, Arc Initiative and social entreprises put all of their efforts in a making sustainable difference in the designated regions. Arc Initiative’s travels to developing countries and helps people develop their business, which will often help their entire community. Personally, I strongly agree with the Arc’s method of helping. It seems much more reasonable and efficient to build some sort of infrastructure that will allow people to grow their own businesses and therefore quality of life. A great demonstration of this model working is the case of Salem Kassahun, as she has been able to increase her companies profits while also helping people. Overall, the Arc Initiative should be a great source of pride for students of UBC, especially students from the Sauder School of Business.

The Arc Initiative

Articles Used: http://www.sauder.ubc.ca/Global_Reach/ARC_Initiative/About_ARC

http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/day-to-day/can-fair-trade-boutique-expand-without-alienating-customers/article4405520/

http://skollworldforum.org/about/what-is-social-entrepreneurship/

Upward Arc

An entrepreneur pitching her product on Dragons’ Den

In our Comm 101 tutorial we watched and discussed Dragons’ Den, specifically a pitch on the Canadian company Shnarped. Also, in one of our lectures we learned about the company Tangoo and their journey to Dragons’ Den from the founder Paul Davidescu. After these classes I found a blog post by Dustin Sproat one of the founders of Shnarped.

Dustin Sproat and Kyle Hagel pitching Shnarped on Dragons’ Den

He describes the behind the scenes of both Dragons’ Den and, the American equivalent of the show, Shark Tank. These shows work because they are a “win-win” scenario. This is because the investors or “panelists” get great opportunities to invest in small companies with room to grow, while the business get capital, connections, and exposure to increase their profit. The opportunities both these shows give entrepreneurs is truly incredible. Both these shows demonstrate much of what I have learned in class, including: pitching a product, financial statements, value propositions, customer segments, outsourcing products to cut costs, and many more. I find these shows to be a great way to better understand how businesses work, because on the show they often go in depth on their individual products and businesses. It is very inspiring to see people run a great business, especially Sauder grads. Hopefully, the show airs for long enough for me to see people from my year pitch and try to make their business successful.

Articles Used:
http://www.huffingtonpost.ca/dustin-sproat/behind-the-scenes-with-mark-cuban_b_5085533.html

https://blog.tangoo.ca/tangoos-journey-to-dragons-den-the-conclusion/

After reading Andrew Killas’ blog post regarding the Tim Hortons and Burger King merger, I understand his points but tend to respectfully disagree. It is true that one of Tim Hortons’ main values is the patriotic feeling Canadians get when ordering their favourite cup of coffee.

A cup of coffee from Tim Hortons and a burger from Burger King

Yet, I feel that Tim Hortons’ has been intertwined in Canadian culture for so long, it would be nearly impossible for the company to lose that identity. Also, the management of Burger King, and now Tim Hortons’, must realize one of the main allures of the donut shop is their distinctively Canadian feel. It would make much more sense for Burger King management to target this, and if expansion to America happens, make this one of the key points in marketing campaigns. Burger King purchased Tim Hortons mostly for tax evasion, therefore their intentions are not to change the company drastically. Once again, this demonstrates that is unlikely that the merger with have a negative effect on Tim Hortons. Canadian’s should feel excited for the possibility of sharing something of great national pride with America if the expansion does happen. It would allow Canada to have pride that American’s also recognize the constant excellence of Tim Hortons products.

Articles Used: https://blogs.ubc.ca/andrewkillas/2014/11/06/will-this-be-the-death-of-a-canadian-icon/

http://metronews.ca/food/952377/tim-hortons-vs-the-world-canadian-coffee-wars/

http://www.cbc.ca/news/business/tim-hortons-takeover-by-burger-king-may-be-bad-for-canada-study-1.2818036

http://www.theglobeandmail.com/report-on-business/burger-king-tim-hortons-ink-merger-deal-for-125-billion/article20203522/

Outside a rebranded Indigo store

Inside a rebranded Indigo store

For a business to continue to thrive it must be able to adapt to changing consumer preferences. For Indigo, a large Canadian book supplier, this is especially true. Bookstores are closing throughout North America due to the rise of alternatives such as e-books. However, Indigo has taken an unique approach as they have chosen to become a “cultural apartment store” This has lead to a resurge in profits, and as noted in a recent article, the potential opening of new stores. Comparably, the two biggest American bookstore companies “Borders” and “Barnes & Noble” have become either bankrupt or in distress. On the other hand, Indigo has been able to attract customers with other products such as toys, art, and creative household items; while still priding themselves as a bookstore. It is a creative way to maintain business and demonstrates great fortitude for a struggling business. Yet, I do not think this strategy would work for all bookstores, as the market would become saturated. For example, it would be difficult to envision multiple “cultural apartment stores” within the same area. While this may be true, it is still comforting for passionate bookstore lovers across Canada that it will still be possible to get lost in the search for the perfect book.

Articles Used: http://metronews.ca/news/canada/1028145/are-we-witnessing-the-death-of-the-canadian-bookstore/

http://www.theglobeandmail.com/report-on-business/indigo-actively-looking-to-open-more-stores/article21455710/

Persephone Brewing Company

This is in response to Griffin Peirce’s blog post, “Brewpubs: Where value proposition enables a direct business model.” In this post he describes how he was inspired to find an example of the direct model and found it in brewpubs. I found the topic of brewpubs very interesting and relatable. Recently, a microbrewery called “Persephone Brewing Company” has opened in my small town of Gibsons, BC. A brewpub is a microbrewery, but differs as it is usually associated with having a restaurant attached. I have also often thought about the unique business strategies of these microbreweries. It is fascinating that so many similar businesses have opened that are essentially the same, yet still attract consumers. In a recent article it was reported that there is now ninety-one microbreweries in British Columbia, twenty-eight of these opened in 2014. This demonstrates that this lucrative business is still growing at a rapid rate. I agree with Griffin that this is most likely due to the fact that consumers like the idea of a direct model for a product such a beer. Yet, it makes me curious if this is a trend, or if it would work for other food or beverage products. I would be interested in a fresh product using this model and discovering if it works.

Articles Used:

http://en.wikipedia.org/wiki/Microbrewery

http://blogs.theprovince.com/2014/01/30/the-brewed-awakening-guide-to-b-c-s-new-breweries-in-2014/

http://www.persephonebrewing.com/

http://ottawacitizen.com/news/local-news/ottawa-is-hopped-up-about-craft-beer

https://blogs.ubc.ca/liampeirce/

Morgan Freeman wearing Canada Goose

Dennis Quaid in “The Day After Tomorrow” wearing Canada Goose

Canada Goose is one of Canada’s most recognizable worldwide brands. Yet, as popular as they are, they continue to manufacture their jackets in Canada. Most recently they have opened a new factory in Toronto that will provide 200 new jobs for Canadians. While continuing to manufacture in North America may seem risky to some; I agree with Canada Goose that it is well worth the risk. Competitors have an edge in terms of price, but by manufacturing in Canada the brand has a large quality and ethical advantage. As we have learned in class it is important to have low material and wage costs. However, for higher end products such as a Canada Goose jacket quality and reputation are critical for brands success. Consumers seem to prefer to purchase a quality and authentic product when spending a premium price. Therefore, manufacturing in elsewhere while continuing to be named Canada Goose would seem fraudulent and ridiculous. It is also important to note that the creation of jobs in Canada will create great publicity for the brand and create a sense of national pride. Ideally, all businesses would be able to avoid outsourcing but it simply wouldn’t work due to costs. Canada Goose’s new factory is a great demonstration of a business that chooses to continue to manufacture locally rather than outsource, while continuing to be successful.

Articles Used: http://www.theglobeandmail.com/report-on-business/small-business/sb-managing/leadership/the-two-things-that-canada-goose-did-to-make-the-cold-hot/article21258417/

http://abcnews.go.com/Business/700-winter-jackets-worth-investment-ridicule/story?id=21611417

http://www.thedailybeast.com/articles/2013/12/23/the-cult-of-canada-goose.html

Political cartoon showing the National Football League’s response to domestic violence

The National Football League is not just a sports league, but it is also a very successful business. Its recent, annual revenue approaches nearly 10 billion dollars, and it has been increasing steadily. Yet, the unique thing about the NFL is it seems to be unaffected by scandals and bad publicity. This summer (2014) the NFL had both domestic and child abuse scandals that involved some of the league’s biggest stars. These scandals were compounded with the ever looming concussion and player safety lawsuits. Through all this media attention, TV ratings have grown and franchise value is still expanding rapidly. These are shocking facts that show how enamoured North America is about the NFL. We learned in class that often bad publicity leads to a decrease in revenue, but this is apparently not the case with the NFL. For example Lululemon had a huge loss in revenue when their CEO said that their pants weren’t for all women. I think that the strength of the NFL brand and the increasing TV revenue proves that professional football is a fantastic business to be a part of. On the other hand, I think the NFL should try to put more effort into resolving and preventing these issues from occurring. I believe that, eventually, the fans will find a substitute if they become truly offended and disgusted by the employees of the league. Both the NBA and NHL have fewer scandals, and are building a more international fan base. It is not difficult to envision football eventually being overtaken by other American sports. I would recommend that the NFL not take these scandals lightly just because they haven’t suffered economically as of yet.

Image: Cartoon by Steve Sack “Star Tribune”
Articles used: http://www.nytimes.com/2014/10/12/magazine/whats-the-nfls-incentive-to-change.html?ref=business
http://www.businessweek.com/articles/2014-09-12/if-the-nfl-were-a-real-business

http://www.forbes.com/sites/greatspeculations/2014/10/08/directv-extends-its-deal-with-nfl-for-12-billion/

http://www.forbes.com/sites/mikeozanian/2014/08/20/the-nfls-most-valuable-teams

http://www.thewire.com/business/2013/06/lululemon-ceo-stepping-down/66087/

It is very common in British Columbia for the First Nations people and the government to clash about various projects on Aboriginal land. An example of this is in an article by Peter O’Neil in the Vancouver Sun where the Treaty 8 Tribal Association is urging Prime Minister Harper to reject an 8 billion dollar hydro proposal. The First Nations people argue that it would significantly affect the environment and fishing around the land. This has been an issue many times throughout Canada, including in my own town. Being from the Sunshine Coast, when I was younger I had first hand experience with a similar issue. There was a controversial gravel pit proposal on the traditional Native land. Originally, the First Nations were not pleased with the proposal, but eventually came to a compromise that worked for both parties. I think it is crucial that the government continues to honor the original people of Canada, while also continuing to develop alternative energy sources. This also relates to the business ethics we learned in a prior class, and I believe that doing the utmost to honour the First Nations people is the correct route. Hopefully, the government will be able to make a fair assessment on this issue.

Inside a aboriginal building in Sechelt, British Columbia

Article Used: http://www.vancouversun.com/news/First+Nation+chiefs+stage+Site+showdown/10215965/story.html

The CRTC (Canadian Radio-television and Telecommunications Commission) is fighting what many consider losing battle against Netflix. Barrie McKenna for the Globe and Mail explains that the head of the CRTC Jean-Pierre Blais wants to regulate the streaming service unless Netflix releases a large amount of data about their Canadian market. Netflix refused this request, and with support from the Canadian government it seems unlikely that Blais will be able to back up this threat. In my opinion it is ridiculous that Blais would want to attack Netflix. It doesn’t make sense for Canada to come after large companies such as Netflix, because they could easily leave the country. Last time Canada tried to contain American media in 1998 it backfired greatly and America quickly put tariffs on hundreds of millions worth of Canadian exports. This is most likely why the Canadian government is not supporting Blais in this case. As of now it seems as if the CRTC will most likely lose this battle, and will hopefully stop trying to fight companies such as Netflix.

Article Used: http://www.theglobeandmail.com/report-on-business/international-business/crtc-fights-losing-battle-against-netflix/article20820302/

Tesla’s current vehicles

Electric cars are often thought of as the the next huge revolution in the way that people travel. In recent years car manufacturers are finally making electric cars that are just as good (if not better) than gas powered vehicles. Yet, for some reason electric cars have not been selling as well as some expected. Yuliya Chernova wrote an interesting piece for the Wall Street Journal outlining why this may be. Based on studies done by a variety of Universities, Yuliya reports that the biggest problem so far has been the overwhelming lack of knowledge people have about electric cars. In the studies some people got 60-75% of basic factual questions about the vehicles wrong. Although this is shocking, I do not think that the car companies should not be too alarmed. Adding electric cars is a very radical change to the auto-industry, and because of this it will take time for consumers to fully understand this new technology. Also, I believe that if companies such as Tesla continue to produce fantastic vehicles people will eventually give the technology the credit it deserves. It will be very interesting to see the future landscape of the auto-industry.

Article Used: http://online.wsj.com/articles/what-s-holding-back-electric-car-sales-1411937798?tesla=y&mod=SJ_business_MoreArticles&mg=reno64-wsj&url=http://online.wsj.com/article/SB10001424052970203523204580113691705876222.html?mod=WSJ_business_MoreArticles