Brantford's Blog

The Keystone Pipeline System transports Canadian crude oil for processing in the States. In 2010, these pipelines were created to link Canadian oil exports to Mid U.S. This system was planned to further expand to the Nebraska Sandhills, but has recently been postponed by the U.S. government because of safety concerns.

This move by the U.S. government has raised a key question: why not refine the oil on Canadian soil instead?  

I have thought about some of the qualitative aspects of each option.

Pros:

Increased employment. A million new jobs to be created within two decades.

Increased safety. Refined oil is safer to transport than unrefined oil.

Decreased dependency on the U.S.

Cons:

A multi-billion dollar project that will take several years to complete.

Canada doesn’t need to produce too much oil. The oil market is an oligopoly; there is already an established market price that consumers pay for because of high supplier power.

It just goes to show that a conclusion cannot be reached easily. Anyhow, look forward to the day before New Year’s, for the U.S. government is to give its final recommendation about whether or not to allow the expansion.

Word count: 192

Ron Johnson, ex-Vice President of Retail Operations at Apple, recently posted a blog on Harvard Business Review. The blog talks about the importance of customer service and customer experience. Johnson recently became CEO of J.C. Penney, and is hoping to rework his retail magic once again.

The Apple Store’s success is largely accredited to Johnson’s emphasis on customer service. Johnson had personally interviewed every Apple Store manager and had been involved in the interior design of each store. Johnson also pioneered the Genius Bar, a technical support station located in every store, which deals with a customer’s technical problems.

The article also mentions that people pay for the “Apple Store experience.” The article states that consumers go to the Apple Store, rather than say, Future Shop, because of the customer service. I partially agree with this statement, for the store’s employees do not work on commission. Instead of focusing on selling many products, employees are encouraged to build long-term relationships with customers. At the same time, though, other retailers like Best Buy, for example, do not have commission. I feel that some Apple enthusiasts go to the Apple Store simply because of their high loyalty.

Word count: 195

In Beini Chen’s blog post, A Leading Social Enterprise: Right to Play, Beini discusses social entrepreneurship and talks about the elements that characterize a philanthropic organization. Right to Play is an organization that uses sports to promote child development in disadvantaged parts of the world. This enterprise is sustainable because many of the children that participate in their events later proceed to join the group, making the group sustainable. The leaders of today teach the leaders of tomorrow.

Social enterprises are well received by the public for they do not function for their own self-interest and personal gain.  

One social enterprise that further defines sustainability is the Eden Project. The Eden Project, situated in Cornwall, UK, is home to the world’s largest greenhouse. It aims to help create a sustainable future that promotes the relationship between people and plants. Five million tourists visit the greenhouse every year, and the revenue the project earns pay for itself, and some of the leftover surplus goes towards environmental research.  This project sustains itself, sustains research, and sustains the world through environmental education. The Eden Project alone is enough of a reason for me to want to visit the UK.

Word count: 196

Theodore Lau wrote about Home plus – a South Korean hypermarket that has a rather unique business model. Some of its sales come from neither retail stores nor online shopping; rather they come from somewhere in between.  The company has placed large displays in subway stations for commuters that would otherwise have minimal time to do shopping. These displays have images of groceries that can be purchased by scanning QR codes with smartphones. These goods are then quickly delivered to the consumer’s doorstep.

Home plus almost seems too good to be true – it provides convenience and supplies directly in a stylish manner. It may even revolutionize the way that agricultural goods are sold. However, I would think that these tactics are hard to maintain for they hold many inherent problems.  For example, there is no physical connection between the buyer and the product. When people buy fruits and vegetables, they pick the best produce. We would not take a rotten, bruised apple over an apple that is more aesthetically pleasing.  

However, I can see people buying things like packaged and non-perishable goods, so the company can still show its innovation in a large market.

Word count: 193

Nissan Motor Company Ltd, launched in 1933, faced near-bankruptcy in 1999. Carlos Ghosn joined Nissan as chief operating officer and stated that he would remedy this problem and make the company profitable within a year. At the end of this year, Nissan had a profit of $2.7 billion compared to a loss of $6.1 billion the previous year.

In terms of entrepreneurship, Ghosn’s revitalization of Nissan is a prime example of a huge success. This revival was largely caused by his reforms to the company, many of which made him a target of public outrage. He cut jobs, shut down plants, and didn’t respect traditional Japanese business etiquette.

Perhaps his biggest reform was abolishing Nissan’s business model known as keiretsu. By doing so, Ghosn removed internal links and created a smaller supply chain.

Nissan has also recently entered the electronic car market through their introduction of the Nissan Leaf. The Leaf has been compared to rival electric car Chevy Volt, but the Leaf is more environmentally friendly and has had more sales.

In summary, Nissan is a prime example of an entrepreneurial company because of its updated organizational methods and new products. A modernized business model green innovation are elements that make Nissan Nissan.

Word count: 200

A few weeks ago, a young girl was run over by two trucks in China. Over a dozen people passed by the dying toddler, few barely giving a glance. Eventually, a person walked by and looked for the girl’s parents. Eventually, the girl’s mother came to pick her up.

“If she is dead, I may pay only about 20,000 yuan ($3,213). But if she is injured, it may cost me hundreds of thousands yuan.”

-One of the arrested drivers

Historically, China has been a country proud of its high moral standards – individuals selfishly helped others with little hesitation. However, recently, China has begun to lose such values, possibly due to factors such as the spreading of capitalism and its resulting selfishness. Wealth and power are seeping into China’s collective consciousness at an alarming rate, replacing traditional beliefs. 

 It is quite possible that China’s economic growth materialism to emerge in society. In a sense, it is lucky that China has begun to slow down as the government has paid attention to the pressures of inflation that have been building up in the economy. This brief respite may give China the time to do some much-needed soul-searching.  

Word count: 195

Many programs are being implemented to lessen the impact of today’s resource demanding society. One such example is the federal “Cash for Clunkers” program that seeks to lessen CO₂ emissions. It pays individuals up to $4,500 to replace their older, fuel-inefficient vehicles with new, higher mileage ones.

Economist Jeffrey Sachs did a rough calculation of the net reduction costs of CO₂ per ton from removing inefficient cars, which amounted to $141 per ton. He says that there are better alternatives to reduce CO₂ emissions than “smashing up autos five years before their natural demise.” He also states that we should rely on price signals, rather than subsidized programs.

I think that Sachs’ argument is valid, but fails to state the main aim of the “Cash for Clunkers” program. The main intention was for the program to galvanize automotive sales, while putting safer and cleaner cars on the road. Sachs, however, still states a valid point regarding the use of subsidized programs to counter climate change. We will need to spend an indefinite amount of money to save the planet from climate change, and I think that implementing price controls (rather than using subsidies) like carbon tax seems to be a reasonable idea.

Word count: 200

Scarcity is a word that often finds itself placed in many of the world’s contexts. The world’s scarce resources are undistributed to each person unevenly, so it is only natural that the problem of poverty arises in regions that are less wealthy. Harvard economist Jeffrey Sachs discusses a potential solution to poverty in his 2005 bestseller The End of Poverty.

In one interview, Sachs emphasizes what he calls “clinical economics.” The idea is that countries, like patients, require analysis, diagnosis, and prescription. Factors like government corruption and disease limit a country’s opportunities to effectively participate in the world market. Sachs suggests that rich nations donate 0.7% of their national GDP every year to remedy these problems and eliminate poverty by adding to a country’s wealth. If this plan is followed, by 2015, no one should be living on under $1 per day.

I think that the idea of foreign aid to end poverty is justified. Richer countries should do all they can to support poorer countries, and such help can be rewarding later for increased trade capabilities and benefits. Increased global security is one example.

Word count: 196

It takes years to build up brand recognition, but it may be worthwhile for an established company to change its name.

Renaming a company to better capture its philosophy and value proposition is often a beneficial decision. A new name can also remove negative aspects of a company like controversy and legality issues. Creating a unique and memorable name helps differentiate a company from others that use commonplace elements from their business in their own name.

One company that comes to mind regarding names changes is Pepsi-Cola. Pepsi, originally founded by pharmacist Caleb Bradham, was originally known as “Brad’s Drink.” This title does not tell anything of the drink, nor is it professional or unique like Coca-Cola or Sprite.

I think that changing the name of a company can be a very strategic move. One example is Kentucky Fried Chicken, officially known as KFC. By doing so, the company removed the word “fried” and created the perception of healthier food. It goes to show that renaming a company’s name can lessen its weaknesses and help build a strong brand name.

Further Examples

Word count: 182

A prime reason for the 2008 financial crisis was lack of executive responsibility and values. Mary Gentile, a guest speaker for Ivey School of Business’ Transcendent Leadership course, speaks of the idea of good values leading to a good bottom line.

Ms. Gentile talks about a bell curve of opportunists and idealists at each end, with a middle ground of people who prefer to act ethics as long as they don’t put them at a disadvantage. Ms. Gentile says that these pragmatists have to be better “at voicing and acting on their values.” Instead of giving up money and paying for values, corporations have to make their values pay for themselves. 

I agree with the importance of having good values in business. People often face choices when trying to get to the end result. On the one hand, people can walk a normal road and fulfill their goals with a sense of ethics. On the other hand, people can stray off this path because of convenience or possible high return at the price of moral decline. However, having good values extends beyond the self. For example, values can improve employee morale through a sense of righteousness and honour. 

Word count: 197