Monthly Archives: November 2014

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/