Author Archives: AyumiImaizumi

If the United Nations was fully funded why would we need the Arc or social enterprise?

The United Nations is an international organisation that was founded after WWII in 1945. It comprises of 51 countries working together with the goal of achieving global peace and security. The Arc Initiative is a Sauder program that provides internships, workshops and mentoring activities in South America and Africa. A social enterprise strives to ‘disrupt the status quo and transform our world’.

The United Nations functions on a larger scale and hence, must prioritise resolving issues that appears to be the most relevant for the majority of the 51 countries cooperating together. Political issues that would appear as headlines within the news such as the Syrian War are the types of affair that the United Nations would try to tackle. This is essentially because they work on a global scale and thus, have to find solutions to issues that are known globally. While this is important, this leads to smaller local issues to be neglected by the United Nations.

The Arc Initiative or social enterprise on the other hand, works on a smaller scale and can therefore focus more on having a direct impact with mitigating local issues. Through an Arc Initiative workshop in Ethiopia, Fitih Tesfaye learned new business tools such as a strategy map tool that enabled her to understand points of parity and points of differences. Identifying this led her to pursue and further differentiate by moving from the heavily competitive restaurant market to the sweets market with Yana Sweets.

Overall, the United Nations and the Arc Initiative or social enterprise complement each other as the former functions on a global scale while the latter functions on a smaller scale.

Website and image sources:

http://www.un.org/en/aboutun/index.shtml

http://www.sauder.ubc.ca/Global_Reach/ARC_Initiative

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

http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/going-global/in-a-crowded-market-ethiopian-entrepreneur-finds-a-sweet-way-to-stand-out/article17912688/

http://liveactionnews.org/wp-content/uploads/2013/03/UN-flags.jpg

Cott Corp., a business that produces soft drinks, is acquiring DSS Group Inc. through a $1.25 billion (US) deal. DSS is a water and coffee distributor within the U.S., with over 2,000 customers. While Cott’s shares have risen ‘10.27%’ on the Toronto Stock Exchange, there are underlying problems that may arise through a business acquisition that this article does not highlight.

On average, 50% of business acquisitions lead to failure because of the risks and complexities associated with it. Hence, sustaining the performance management of a business during an acquisition is essential. Cultural differences may arise between the two different companies. Some employees may be more motivated by power and their position within the company, while others may be more motivated by accomplishments. This difference, may create a segregation between the company after a business acquisition. To overcome this challenge, Cott Corp. should reward the performance of their employees and give out stocks. This sets up a rewards system within Cott Corp., which should effectively improve the productivity of their employees. For example, when a certain percentage of stocks are given to employees, they become more invested into the company. The amount of work they put into the company would determine they amount of dividend they could have from the stocks. Hence, the work productivity of employees would increase and they would become more committed to their job. Furthermore, this rewards system does not cost anything for Cott Corp.

Although the external financial data of Cott Corp. is currently improving due to the business acquisition deal, it is imperative for Cott Corp. to also consider the future internal operations management it may face after the business acquisition. The success rate for a business acquisition is not favourable, but considering and planning solutions to problems that may be faced could increase the success rate for Cott Corp.

Website and image source:

http://www.theglobeandmail.com/report-on-business/beverage-maker-cott-acquires-us-firm-in-125-billion-deal/article21473792/

http://www.forbes.com/sites/robertsher/2012/06/22/12-signs-that-an-acquisition-will-crater/

In today’s COMM 101 class, we had the opportunity to interact with three Sauder Alumni: Paul Davidescu (Tangoo), Paul Gill (Naked Coconuts), and Jennifer Martin (Sip Soda).

The applicability of COMM 101’s course content was heavily emphasised by the Sauder Alumni. For example, Paul Gill mentioned that he used the PEST analysis to determine whether or not it would be advantageous to enter the US market. The PEST analysis enabled him to become aware of the political issues he would face with his products as he sources his supply of coconut oil from the Philippines–he would have to go through many security checks and be approved by the FDA. Similarly, Jennifer Martin stressed the importance of maintaining a professional relationship with your supplier. To not be deceived by them and to know when their help is not necessary, which would enable you to reduce your cost of production. Paul Davidescu  encompassed the concept of passion over money. He currently does not have a proper revenue stream from Tangoo, yet he still strives to improve it because he is passionate about it, not because of money he could earn.

Today’s class has completely changed my perceptions on entrepreneurship. I have realised that I currently do not have the desire to become an entrepreneur not because I lack the intention, but because I have not found that special something that I feel the most passionate for. Although it may take several years for me to realise where my passion lies in, I look forward to discovering it in the future.

Image sources:

http://www.sipsoda.com

https://tangoo.ca

http://www.nakedcoconuts.com

Recently, I had the opportunity to be involved in a conference called Chasing Sustainability as part of the executive team of the CUS Sustainability. The closing presentation by Michael Green, tied the essential elements of what the sustainability conference was looking for and hence, I would like to focus on an external blog about Michael Green by Kate Torgovnick May for this blogpost.

Michael Green aims to change the social norms for how skyscrapers should be built. Rather than relying on the current technology of using steel and concrete for skyscrapers, Green proposes the use of wood. The building of skyscrapers accounts for ‘47% of CO2 emissions’. However, wood stores carbon dioxide. The current market trend is to be sustainable, and Michael Green realises this. Therefore, his business has a competitive edge over other architecture firms through his sustainable innovation within the architecture industry. This aligns with the concept of triple bottom line, which focuses on sustainable development for the people, planet and profit. As a result, his business has value-added that his competitors are not offering to their customers, which is the key to success.

Furthermore, not only is Michael Green an innovative entrepreneur, he also displays positive corporate social responsibility to his stakeholders. His business is partnered with ‘1% For The Planet’, whereby 1% of the revenue made is donated to help conserve and protect the planet. He mentioned at the conference that when running his business, it was never about the money. Instead, one of his goals is to show his son that he can change the world.

“It’s not enough to tell someone that they can change the world. Be the one to change the world.” – Michael Green (Chasing Sustainability Conference 2014)

Website source:

http://blog.ted.com/2013/02/27/skyscrapers-of-wood-michael-green-at-ted2013/

I would like to expand further on Vicky’s blogpost regarding the success of Netflix from this article.

Netflix is an online streaming media with over 10 million subscribers. As Vicky mentioned within her blogpost, Netflix has not expanded their service to Asia. However, an important question to consider is, should they try to enter the market in Asia? When a business enters a new market, all aspects must be considered. This can be done through a SWOT analysis. While there is an opportunity for Netflix to enter the Asian market, there is also the threat that it may not be successful. This would be mainly due to a significant number of online platforms available online in Asia that provides free streaming of shows and movies that could be found on Netflix. Hence, this is a difficult market for Netflix to enter although it is desirable because of the large population, which would lead to a greater total revenue for Netflix.

Moreover, Netflix is the market leader within the online streaming media industry. While Vicky compares Netflix with Blockbuster, I believe it is more appropriate to compare Netflix with Hulu or Amazon. This is because Blockbuster is a movie-rental store while Hulu and Amazon are in the same online streaming media industry as Netflix. Therefore, Blockbuster and Netflix have different channels as Blockbuster has a physical store while Netflix is only an online platform. As Netflix is considered to be the pioneer within the streaming media industry, this makes them the market leader according to Al Ries and Jack Trout. Also, Netflix has the largest market share compared to its competitors at 57.5%. Although it is unknown as to how long the success of Netflix will continue, it can be said with certainty that the current market trend of online streaming works in favour with Netflix’s business.

Website and image source

http://www.theglobeandmail.com/globe-debate/the-games-over-hands-off-my-netflix/article20884087/

http://blogs-images.forbes.com/merrillbarr/files/2014/04/netflix-logo.png

Tsilhqot’in announced that it will have a Tribal Park, which will affect the proposal of a New Prosperity mine by Taseko Mines Ltd. as it lies within the declared territory of the Tribal Park.

The current external macro-environment of Taseko is rather dismal in terms of political and social factors according to the PEST analysis. It’s gold-copper mine project has been rejected by the federal government twice and restricted because of the Tribal Park. Furthermore, Tsilhqot’in is a local stakeholder and Taseko’s project does not appeal to the environmentally conscious people of Tsilhqot’in, it would damage fish habitats. While Tesco’s focuses on the economical benefits (e.g. more profits), Tsilhqot’in strives to be more environmentally-friendly and sustainable.

Taseko would need to obtain proper consent from Tsilhqot’in for it to proceed with their project. Therefore, Tsilhqot’in has a great influence on Taseko’s decision-making. Taseko should integrate environmentally sustainable actions (e.g. recycle water, use renewable energy source of electricity) within their future operations with their project to align their interest more closely to that of Tsilhqot’in. However, it is highly unlikely that Tsilhqot’in would allow Taseko to have a mining site in their Tribal Park because of the significant difference in interest of both parties.

Website and image source:

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

http://www.quickmba.com/strategy/pest/

http://www.miningfacts.org/Environment/How-can-mining-become-more-environmentally-sustainable/

Al Ries and Jack Trout’s ‘positioning’ concept delivers key points on the external features of becoming a business leader within a particular market. “The look of leader”, an article in The Economist, on the other hand, provides insight on the internal features of being a leader within business.

According to research done by Malcolm Gladwell, ‘30% of CEOs of Fortune 500 companies are 6 feet 2 inches or taller’. Furthermore, studies show that ‘voice quality’ is imperative for positive listener evaluation. Research conducted by University of California, San Diego and Duke University revealed that CEOs with the ‘deepest voices earned $187,000 a year more than the average’. Hence, candidates for executive positions are still likely to be selected based on superficial aspects such as height and voice quality. Despite the vast changes in the human society, why do top positions within businesses still conform to stereotypes?

Thus, this highlights that there may be a relatively fixed mindset upon the characteristics for a strong candidate for the higher positions within a business. Although external factors of improving the ‘positioning’ of a business is rather objective and factual, internal factors of ‘positioning’ within a business is rather subjective. However, whether this is an extreme issue for businesses and a factor that sets them back is still unclear.

Article and image source:

http://www.economist.com/news/business/21620197-getting-top-much-do-how-you-look-what-you-achieve-look-leader

I would like to expand further on Kaylee’s blogpost regarding Nestle’s lack of corporate social responsibility from this article.

While the content of the article that Kaylee has selected is interesting, it is not a surprising news. This is because water is a natural resource that is very difficult and expensive to exclude people from using them. Nestlé ‘taking million litres of fresh water annually from a valley of BC province’ without ‘paying a penny’ is to be expected because water is a common access resource. The main issue of Nestlé‘s actions is the lack of corporate social responsibility that they are displaying to their stakeholders.

Following on, I agree with Kaylee’s point that although Nestlé are supporting the government’s decision to implement new regulations on the usage of the water, this may be mainly an attempt to appeal to their stakeholders. In this case, I would recommend for the government to involve itself and implement new policies. The lack of regulation on the usage of groundwater enables companies such as Nestlé to take advantage of the natural resources for their own benefit. It is unlikely for Nestlé to change their actions because of the affect it would have on their cost of production and profits made. Thus, it is imperative for the government to employ a policy that will protect the groundwater in BC from being taken for free to avoid large external cost to the future generations regarding the sustainability of the water. This would force Nestlé to rethink their actions and change it, which hopefully leads them to improve their corporate social responsibility. 

Image and website source:

http://www.timescolonist.com/news/local/wild-west-of-groundwater-billion-dollar-nestlé-extracting-b-c-s-drinking-water-for-free-1.587568

British Columbia is setting up a new business model aimed at attracting “socially conscious investors” to make it easier for people to make money and give back to the community. The Community Contribution Company (C3) caps a company’s profit at 40% and the remainder goes to social causes such as homeless shelters and recycling programs. Hence, C3 attempts to combine business and social value to create a profitable business. C3 is modelled from a similar program in the United Kingdom called Community Interest Companies (CICs).

Many claim that this new model has “too many restrictions and can create too much red tape”. Red tape creates barriers to entry for companies and investors. Furthermore, some argue that this new business model may only have a small impact and fail to create more jobs. However, through introducing this new business model, it generates local employment in B.C. and more “economic wealth”. Although only three companies have registered to the C3 program, CICs in UK has more than 6000 companies registered. As this program develops in BC, it is likely to attract more companies to register. Through this, BC will be able to effectively move more capital into important social issues such as unemployment and charity.

Article and image source:

http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/going-global/new-business-model-lets-bc-companies-blend-social-values-into-bottom-line/article13631725/

After the Tohoku 2011 incident, “most of the public (were) broadly against restarting nuclear plants”. However, the absence of electricity from power plants increased the electricity cost and caused “a series of trade deficits”. Moreover, Tokyo Electric Power (TEPCO) provides many jobs for the economy and is the main source of electricity in Japan.

According to Friedman, the social responsibility of a business is to make profits while ‘conforming to the basic rules of society’. TEPCO having applied for a “safety check […] to restart two reactors”, follows Friedman’s definition of social responsibility as this would increase TEPCO’s profits. However, should the national economy really be the prime concern? It is unethical for TEPCO to continue using power plants when citizens nearby risk exposure to radiation. While TEPCO’s needs may be satisfied, the citizens’ interests are neglected. This goes against Freeman’s stakeholder theory whereby the needs of all stakeholders must be satisfied for a business to succeed.

Hence, TEPCO needs to provide electricity through sustainable methods. In the short run, TEPCO would face extreme changes to its company as it switches from power plants to green technology. In the long run, TEPCO would be viewed as a more ethical firm with good business practice.

Website and image sources:

http://www.economist.com/news/asia/21589912-riskiest-part-yet-fukushima-clean-up-soon-begin-high-alert

http://www.tutor2u.net/business/strategy/business-ethics-introduction.html