With Westjet’s recent decision to offer flights to Europe, Air Canada will be forced into higher competition across Canada. In a Maclean’s blog by Chris Sorensen, he discusses the new options for Westjet flights, specifically in travelling to Europe and offering different fare classes for customers. Originally with the intention to keep their flights small and stay within under-utilized airports to cut costs and maximize profits, Westjet has now swayed from their business plan to keep up with competitors like Air Canada and beat out other competition at a higher level. With this expansion, Westjet will be able to broaden and develop the company further to increase their brand awareness globally as well as their overall revenue. As they now offer more options for flights, this can only help them gain a larger customer base as it appeals to more customers who are looking for the cheapest flight between competitors. As Air Canada will now experience competition for trips to Europe, Westjet will offer different price fare classes in order to get customers to choose them over their original competition. Although Air Canada has been flying to Europe far before Westjet, the entrance of this new rival into the plane market will allow for more options for consumers and a new Westjet value proposition for existing customers as well as the addition of new customers seeking their new service.

Chris Sorensen: http://www2.macleans.ca/2013/11/15/westjet-bound-for-europe/

The ill-treatment of Wal-Mart employees was brought up in a blog by Yash Multani, discussing the recent strikes of the employees attempting to receive higher wages. As it is clearly a human resources issue, this reminded me of another recent strike in Vancouver at another big-brand department company, Ikea. Earlier in the summer, Ikea workers went on strike as they felt wages were unfair, unequal, and inadequate for the amount of work and hours they put in. With over 300 workers on strike, Ikea employees refused to continue work until acceptable pay was introduced. As both these businesses are relatively large, well-known enterprises, customer service would be affected greatly by a lack of employees in the stores. It is clear that human resources is an essential segment of these large corporations as the employees hold a significant influence in the production and image of the company. Again, this is an issue of business ethics when looking at how to treat workers in their environment. These big companies should be able to afford an increase in wages in order to ensure that the company as a whole is able to continue to prosper and develop. Perhaps, in fact, this becomes an issue of their workers’ drive and desire to work in such an environment and what these corporations can do to increase worker incentive.

Yash Multani’s Post: https://blogs.ubc.ca/yashmultani/2013/11/15/wal-mart-workers-protest/

Original Article: BREAKING: Wal-Mart Workers Strike: http://www.salon.com/2013/11/12/breaking_wal_mart_workers_strike_as_target_workers_threaten_to_join_black_friday_walkout/

Talks Break Down Between Ikea and Striking Workers: http://www.vancouversun.com/business/Talks+break+down+between+Ikea+striking+workers/8760537/story.html

Every November, I find myself counting down the days to that year’s Victoria’s Secret Fashion Show along with hundreds of thousands of other girls across the world. And every year, I watch in amaze and envy as the stick-thin models take to the catwalk. As shown in Rebecca Ketler’s blog, this commercialized production is a chance for the company to display their products for the world on the “perfect” bodies that sell a certain image to young girls all over. Through this extravagant display, Victoria’s Secret is broadcasting the sex appeal of their product by means of exposing their “Angels.” The hour long display of perfection amongst their products entices consumers of all ages to want to look like their models by buying their newest products. As our world is often driven by outward appearances, the company’s selling point through their annual fashion show enhances the desires of their customers and entices new consumers. I completely agree with Rebecca that the show is simply a drawn-out commercial for the company, and it definitely does its job! Victoria’s Secret’s brand, centered around the images of near-perfect bodies and lingerie, flourishes and prospers through their marketing displays televised annually across the globe to attract girls of all ages to want to look like their models; it seems the secret is finally out… and Victoria’s Secret is all about their marketing scheme!

Rebecca Ketler’s Post: https://blogs.ubc.ca/rebeccaketler/2013/10/01/victorias-secret-unveiled/

Original Article: The Marketing Secrets of Victoria’s Secret: http://articles.chicagotribune.com/2012-11-20/business/ct-biz-1120-bf-secret-marketing-20121120_1_victoria-s-secret-victoria-s-secret-s-fashion-show

In an attempt to keep up with the ever-evolving digital age, Yellow Media has decided to cut down their Pages sector, firing 300 workers in the process in order to cut costs in an area that is going extinct. Despite the hundreds of employees being laid-off, the company explains that many of these people will be considered for new technology jobs that they will offer for their new digital approach. Although this is a relatively new decision, as Yellow Media continues to expand their company and product with the direction of the world, hopefully the company should continue to prosper. It is apparent from many other companies that a failure to evolve with the technological world will result in demise. For example, Canada Post failed to create new ways to generate revenue despite the decreasing popularity in mail service, resulting in major revenue losses for the company as well as the necessity for the government to subsidize Canada Post. Another example could be Blackberry; as the company failed to keep up with its competitors Apple and Android, Blackberry fell behind in technological advances and thus lost all demand in the market. Yellow media’s switch to digital technology will result in the loss of 300 jobs; however, by not switching to digital technology perhaps all of the companies jobs are at risk. Hopefully this will allow them to maintain or grow their client base as well as advance in this field to put them on a better footing for the future.

Yellow Media cuts pages jobs as firm takes increases in digital direction: http://www.vancouversun.com/business/Yellow+Media+cuts+pages+jobs+firm+takes+increases+digital/9156032/story.html

Blackberry has a key technology called BlackBerry Messenger (BBM) that can be used to instant message between Blackberrys. In recent news, BlackBerry has decided to release the BBM app for iPhone and android, making the buzz and demand for this technology explode. Within the first few days of its release, there was a wait list for consumers to receive their individual “pins” in order to begin using their newest app. However, despite the popularity of the app reaching 20 million users by iPhone and Android, the BBM app is entering a market with many competitors including the most popular, Whatsapp, used by 300 million users. As Whatsapp holds an advantage in being the first to the market, BBM may face a tough road ahead. But what does this mean for Blackberry? No doubt, this was a good move for the usage of BBM and its popularity among iPhone and Android users; however, formerly provided only for Blackberry users, BBM is no longer a distinguishable factor in buying or using a Blackberry. And now, Blackberry has hit an all time low of a 1.7% market share. With the release of one of Blackberry’s key assets to competitors, this distinguishing factor that Blackberry phones offered has been eradicated. This latest step begs the question of whether Blackberry smart phones will still be around in 2014?

BBM For Android And iOS: Not A Big Deal: http://seekingalpha.com/article/1798802-bbm-for-android-and-ios-not-a-big-deal?source=google_news

BBM app for Android and iPhone gets update: http://www.itpro.co.uk/mobile/19964/bbm-android-and-iphone-surpasses-20-million-downloads

Blackberry Messenger Resurrected for iOS, Android doodads: http://www.theregister.co.uk/2013/10/21/bbm_launch_for_ios_and_android_resumes/

Blackberry’s global market share falls to just 1.7%: http://www.bnn.ca/News/2013/11/12/BlackBerrys-global-market-share-falls-to-just-17.aspx

Although initially opposed, Christy Clark and Alison Redford have pushed the Northern Gateway Pipeline project further to reach a consensus on the project and look towards approval. Nicknamed “The Pathway to the Pacific”, this pipeline is estimated to transport 525,000 barrels from the Alberta oil sands to the west coast of British Columbia. Despite the efficiency and productivity that this pipeline proposes, the environmental impacts are far more dangerous and could be detrimental if not addressed before the project goes any further. The effects of a spill would be catastrophic for the ecosystem surrounding. As the pipeline is proposed to go through undeveloped and wild areas, environmental concerns only intensify. They must anticipate the worst case scenario as it is highly likely that a spill will occur, the question they must ask is when will it happen? And how much of our environment are they willing to sacrifice for the economic benefit? This issue goes back to the battle of business ethics, in which many businesses believe that economic profits must come at the expense of our natural world. As many cities and countries have taken initiative in improving our environment and preserving natural resources, the Northern Gateway Pipeline may force us to take a step back in our efforts to help the suffering environment.

Enbridge’s Northern Gateway Pipeline Appears Headed for Approval: http://www.investingdaily.com/18728/enbridges-northern-gateway-pipeline-appears-headed-for-approval/

As Canada Post predicts losses totalling $1,000,000,000 by the year 2020, the question remains of how to decrease these extensive deficits. Because technology is becoming increasingly important and useful in communication, information transported by mail has consequently been shrinking in popularity and demand. Many argue that the possible solutions of cutting out the delivery service or not offering same day delivery will simply harm the company even further as it will only continue to make the use of a mail service irrelevant. The Canadian government also plans to replace cheques with direct deposits by 2016, which will eradicate a large portion of Canada’s mail. And as pension plans for Canada Post employees remain high, the company is on a fast fall towards bankruptcy.

Mail service is arguably still essential for older generations, however, how long should the Canadian taxpayers continue to subsidize this dying service? Should we be looking to privatize this service by selling to companies like Fedex or UPS? Historically speaking, these private enterprises are more effective and efficient. Canada Post should be required to balance their books within the next 5 years and if they cannot budget that, then the company should start to plan for the end.

Canada Post

Financial Post: News; Canada Post ‘staring down’ billion dollar loss by 2020, report says; Armina Ligaya; http://business.financialpost.com/2013/04/23/canada-post-to-lose-1-billion-a-year-by-2020-conference-board/2/

As Apple and Google continue to dominate the smart phone market, a new competitor may soon be added to the mix as Nokia and Microsoft plan to join forces. Because people are demanding less PC’s, Microsoft has been forced to invest in a new production line of smart phones and tablets; and what better way to enter the business than to team up with Nokia? In a 7.6 billion dollar deal, the two companies will merge sometime next year in efforts to contend with the already successful companies in the market. As history shows, coming into a new market is not easy; when Microsoft came out with their own version of the tablet, it proved to be unsuccessful and paled in comparison to competitors. But perhaps focussing on the strengths of both Microsoft and Nokia individually will give them an edge in the market and allow for joint success. Microsoft CEO, Steve Ballmer, has also recently resigned, leaving the question of who will take on the new responsibility in this new market. With multiple changes in place for the upcoming year, the emerging partnership will target the business customer base in hopes of beating out Blackberry completely and appealing to a broader range of consumers in order to surpass top companies in popularity.

Video: CBC News: Microsoft Buys Nokia

Nokia CEO (Stephen Elop) and Microsoft CEO (Steve Ballmer) join forces.

CBC News: Business; Microsoft Buys Nokia Smartphones, Services in $7.6B Deal; http://www.cbc.ca/news/business/microsoft-buys-nokia-smartphones-services-in-7-6b-deal-1.1306183

Canadian company Blackberry recently announced the results of their 2nd quarter, revealing losses totaling almost $1 billion. As the company continues to consider options on how to end their constant loss of revenue, talks of selling Blackberry or making the company private have arisen amongst shareholders of this sinking ship. It’s hard to believe that just 5 years ago, Blackberry’s stock was valued at $145.50 a share, compared to the now slimming figure of $9.08. But how could this company go straight from the top to the bottom in less than 5 years? It is clear that lack of research and development within the company and poor management put this company on a free fall which may not be reversible.

Despite Blackberry’s best efforts of replacing CEOs Jim Balsillie and Mike Lazaridis with Thorsten Heins, consumers appear to be less interested in Blackberry smart phones because of their inert technology and concerns of the companies life line. This problem may not be unique to just Blackberry as technology continues to move quickly and the saturation of the world wide demand for smart phones becomes a reality. It appears that smart phone companies, like Samsung, who have production in multiple markets may fair better during these turbulent times. As the technology industry continues to develop, companies in this market face daily concerns on how to stay ahead of competitors and maintain a strong and reliable brand for consumers worldwide.

Video: CBC News: Blackberry’s Free Fall

CBC News: Business; Blackberry Losses $965M in 2nd Quarter; http://www.cbc.ca/news/business/blackberry-loses-965m-in-2nd-quarter-1.1870447

Many businesses nowadays struggle with ethics versus profits, or being environmentally aware and friendly at the expense of reduced profits. Deepwater Horizon situated their drilling rig in the Gulf of Mexico in April of 2010, ignoring the ethical harms that this act could potentially have on the ecosystem, focusing solely on the revenue they could gain from drilling oil. In this case, the corporation was willing to forego environmental concerns for their own gain, which proved to result in the worst oil spill the World has seen. After the rig exploded in April of 2010, it took nearly two months before it was plugged, resulting in a spill of 5 million barrels of oil. Had the company spent the necessary money in order to develop a plug prior to drilling the well, much of this disaster could have been prevented.

Although this error was made very public, very quickly, many businesses today choose to ignore the long term implications a project may have on our environment in order for them to be profitable in the end and keep shareholders happy. Another example of this may be the current gas exploration of Hydraulic Fracturing as there are current signs of contaminating ground water, yet these implications on our own safety and health, don’t stop countless businesses from investing and pushing forward with this new process. With public outcry, the government has had to intervene and review the safety precautions. This, in turn, begs the questions, how much are you willing to sacrifice for a profit and why does the government have to step in to police the actions of these businesses if they are ethically concerned?

BP Oil Spill; April 2010

CBC News; BP oil spill cleanup toxic to key species; http://www.cbc.ca/news/technology/story/2012/11/30/bp-oil-spill-dispersants-rotifers-study.html

BBC News; BP Oil Spill: The Environmental Impact One Year On; Mark Kinver; http://www.bbc.co.uk/news/science-environment-13123036