This blog post was written in response to a blog post from the Maclean’s Business Blog. In one of the first comm 101 classes we spoke about managerial accounting, and we used WestJet as an example of a company that has a clear management accounting strategy. Their entire fleet consists of one type of plane (Boeing 737), and they fly the majority of their routes within Canada. However, the Calgary based airline recently made public their plan to start flying to Europe, starting with flights between St. John’s and Dublin. They also stated that they’re planning on having more routes in the future between Toronto and other major European cities so they can be more competitive with Air Canada. 

To me this seems like a bad idea because it’s completely separate from their current value proposition of offering good service flights within Canada*. It also means they would have to add larger planes to their fleet if they want to fly longer distances into Europe. Adding another model to their fleet would add heavy costs for training and spare parts. I’m cheering for them, but I doubt they’ll be able to successfully move away from their original low-cost formula.

*They also have routes from Vancouver to Hawaii/Los Angeles.

Sources:

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

http://business.financialpost.com/2013/11/15/westjet-airlines-ltd-announces-first-solo-flights-to-europe/

This is a response to Braeden’s blog post about a new option for affordable housing in Vancouver. Braeden wrote about micro homes being a possible cheaper living in option if bylaws were changed to allow them. The micro homes reminded me of laneway homes: both are smaller homes that are a cheaper alternative.

However, laneway homes are limited to rentals and have some key disadvantages that make me question whether they are a good solution to Vancouver’s housing problem. Since it is up to owners of homes to build and rent out a laneway home, the majority of owners that can afford to are wealthy, and consequently live in more expensive neighbourhoods. Most laneway houses for rent in Vancouver are in the more expensive neighbourhoods so they are creating a cheaper option in an expensive area rather than a cheaper option in a cheaper area. Micro homes could be a better option for Vancouver because people could build them in cheaper areas and they would be more widely available because its up to the buyer to build it so there’s more incentive to build in the cheaper neighbourhoods.

Sources:

http://www.huffingtonpost.ca/2013/03/09/laneway-homes-vancouver-housing-photos_n_2839679.html#slide=2200236

FlyKly, a firm based in New York has come up with a potentially revolutionary innovation for bike commuters called the Smart Wheel. It’s a detachable electric wheel that can be purchased separately from a bike and attached onto almost any bike. The rider sets his or her desired max speed on a smartphone, and attaches in to a holder on the bike’s handle bars. The Smart Wheel has an edge over other electric bikes because it is much cheaper than an electric bike which can range from $1200 to $2000, and also much lighter.A big disadvantage of normal electric bikes is that they are much more difficult than regular bikes to ride manually, the Smart Wheel barely adds any weight to the bike and creates more of a hybrid than anything.  But despite its apparent greatness, I can think of a couple flaws that will hurt its image as a commuter tool.  The first problem is that it requires a smart phone to be on the handlebars while riding, this may not be a problem for sunny days. But it means that it’s unrideable when it rains, contrary to the point of the invention to encourage commuters to ride more frequently and to have less excuses not to. Another problem with the Smart Wheel is that it’s owners may not be willing to leave a relatively expensive piece of technology in public, even with the GPS tracking system. This two flaws lead me to believe that the Smart Wheel might have the opposite of the intended effect, discouraging commuting all season/all location commuting.

Source:

http://www.huffingtonpost.com/2013/11/09/smart-wheel-flykly_n_4247102.html?utm_hp_ref=small-business&ir=Small+Business

Recently, there has been growing conversation about unpaid internships, and the lack of protection given to the young interns. There is estimated to be between 100 000 and 300 000 unpaid internship positions available in Canada, and because they are all covered under provincial work laws it is very difficult to moderate their rights. However, I think that abusive internship conditions and unpaid internships are completely different issues.

Many companies take on interns even if they ultimately slow things down at times because of the inevitable learning process; internships provide great benefits for the interns, and if they didn’t there would be no unpaid interns. Abusive working conditions for interns is a completely separate issue and should not be related to any talks regarding unpaid interns. Abuse in any working environment, whether paid or unpaid, is bad and needs to be dealt with.  Trying to strengthen the argument that interns are taken advantage of by adding that they are unpaid sends the wrong message, adding pay to an abusive job doesn’t justify the abuse. If interns want to successfully improve their working conditions, they must separate the two arguments.

Source:

http://www.huffingtonpost.ca/2013/11/12/unpaid-internships-canada_n_4258865.html?utm_hp_ref=canada-business#slide=30414

Creating shared value means creating value for the business while simultaneously improving the community. Lululemon has always presented itself as am advocate of shared value, emphasizing good health and an active lifestyle.  However, recently I’ve been having doubts about what Lululemon’s, specifically Chip Wilson’s, priorities really are.

After coming under fire about their yoga pants being too sheer, Wilson responded by blaming the bodies of the women wearing them.  Lululemon has also been accused of not having any of their larger sizes on display, forcing larger customers to rummage through the back stock to find what they want. It seems to me like Lululemon is confused between appearing active and having the shared value of building an active community. Chip Wilson has a lot of backtracking to do if Lululemon wants to retain its healthy image. I also can’t help but question their claim to sustainability after witnessing the multi-year construction of his 37 million dollar mansion.  The section of their site called “our footprint” feels more ironic than anything knowing that Wilson has the most expensive house in Vancouver.

Sources:

http://www.huffingtonpost.ca/2013/11/06/lululemon-chip-wilson-womens-bodies_n_4228113.html

http://www.theglobeandmail.com/news/british-columbia/lululemon-billionaire-ready-to-chip-in-for-vancouver/article4462704/

http://sustainability.lululemon.com/our-footprint/

A sport becomes popular because it is accessible; hockey has always been Canada’s game because primarily because of its cold climate and our wealth of rinks. However, recently hockey has been becoming more and more of an exclusive sport for the rich. According to a confidential survey commissioned by Hockey Canada last year and obtained by The Globe and Mail, “the 1,300 parents surveyed had an average household

Companies like Tim Hortons have programs to support families unable to afford hockey for their kids.

income roughly 15 per cent higher than the national median. The majority listed their occupation as a professional, owner, executive or manager,” a reflection of hockey’s new white-collar base. As fewer kids are able to play hockey, the sample pool for the NHL and Team Canada will get smaller, and the overall quality of play will decrease. If only the rich play, and our national team is no longer as strong as it used to be, hockey’s popularity will decrease substantially.  If the NHL and Hockey Canada want hockey to continue being Canada’s sport, they will have to stop the sport’s shift to exclusiveness. It can’t only be left to programs like Timbits Hockey to make it accessible,  an investment into providing opportunities for kids that normally wouldn’t be able to afford it might be the only way to save hockey’s future in Canada.

Sources:

http://www.theglobeandmail.com/news/national/time-to-lead/the-great-offside-how-canadian-hockey-is-becoming-a-game-strictly-for-the-rich/article15349723/