Bryan Wong's Blog

The United Nations is an international organization formed after the Second World War comprising of 51 nations across the globe. The United Nation’s aims are in “maintaining international peace and security, developing friendly relations among nations and promoting social progress, better living standards and human rights.” The United Nations is well known on providing conventional humanitarian aid to lesser developed countries. Humanitarian aid is essential for disaster relief and cases where countries desperately require emergency aid to rebuild. So why do we need the Arc or Social Enterprise if the United Nations is already providing humanitarian assistance?

While humanitarian assistance benefits the prospective country in the short run, the country’s deeply rooted problems are overlooked and prevalent. Often humanitarian aid does not even reach the individuals who need them the most. Western countries have spent over $2.3 trillion in humanitarian aid and “still had not managed to get twelve-cent medicines to children to prevent half of all malaria deaths … to get four-dollar bed nets to poor families … to get three dollars to each new mother to prevent five million child deaths.” Often, the funds donated to a lesser developed country is ‘lost’ due to corruption or due to not have proper system in place.  As Arielle Uwonkunda told Jeff Kroeker, “I told him about non-profits that have donated money to Rwanda following the war but didn’t make a lasting impact.” Furthermore, humanitarian aid may potentially cause the prospective country to rely or be dependent on the donor country or organization.

Social entrepreneurs and The Arc Initiative however, proceed with a different approach. They seek to improve and maintain local economic sustainability by encouraging local entrepreneurship and teaching small businesses unique skills that would benefit the local community in the long run. The Arc initiative’s aim is to share the business ‘toolkit’, which students acquire at their time in Sauder, to help local entrepreneurs. As the proverbial saying goes, “Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime.” This saying explains while providing immediate aid is helpful, teaching important life skills is vital to help the individual (or community) be independent and flourish on its own.

Even though the Arc Initiative currently reaches out to 4 countries (Ethiopia, South Africa, Rwanda and Colombia), their work has still made a large impact on local businesses.  An excellent example of this would an Ethiopian business called Shega Shero Eatery located in the capital city, Addis Ababa. The Arc Initiative also taught the owner, Fitih Tesfaye, how to analyze her restaurant business and expand to an “untapped sector” of the market. This resulted in the increase of her monthly salary which is now considerably higher than the yearly GDP of the average Ethiopian.

In conclusion, I feel that both the United Nations and the Arc Initiative or other Social Enterprises are essential and needed. While the United Nations provide the humanitarian relief globally that Social Enterprises do not have the resources to provide, Social Enterprises focus more on the smaller details to help build a sustainable economy that benefits the local community.

References:

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

http://news.ubc.ca/2014/06/30/upward-arc/

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

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://www.uniteforsight.org/community-development/course1/module3#_ftn1

http://www.forbes.com/sites/mikepatton/2013/01/28/foreign-aid-money-down-a-rat-hole/

http://www.awaken.com/wp-content/uploads/2013/09/We-Can-Change-the-World-520.jpg

After watching “The Internship” last night for the third time, I decided to base my post on James Lau’s blog post on “EVERYONE WANTS TO WORK FOR GOOGLE!” James explains the benefits of organizational culture, that it encourages involvement and a sense of belonging for the employees; indirectly increasing efficiency and marketability. I would like to add on however, that organizational culture such as Google’s brings along its own disadvantages.

Organizational culture establishes shared beliefs and values which can lead to the growth of “herd mentality”. This mentality could hinder unconventional, creative or innovative thinking. If the CEO decides to make certain changes that affects the firm’s organizational culture; the employees may feel sense of loss identity or even oppose it. Moreover, the organizational culture of say Google may not suit everyone, thus alienating the best individual for the job. I would like to add that Google may not be that ideal company to work for that it seems to be. Since Google is a huge company, it could be really difficult to advance in rank and employees could potentially feel like a “grunt” or a small piece of a puzzle. Working with other individuals who are the best in the field may constantly lead to the clash of completely different opinions or solutions, causing disagreements and rivalry. This tension and identity crisis could lead to increased levels of stress related illnesses in employees.

In addition, Google’s organizational culture offers a lot of freedom to encourage employees to be disciplined, motivated and responsible. On the other hand, this does not offer much mentoring and supervision which could hinder learning opportunities and growth. It can be argued that Google provides free food, facilities and other benefits in order to encourage their employees to ‘live’ in Google and work longer hours.

In conclusion, even though Google’s employees enjoy a lot of perks and benefits, organizational culture could potentially lead to stress related illnesses or lack of productivity for the employees.

References:

http://www.google.com/about/careers/files/story_how-employee-freedom-delivers-better-business_image_726x726.jpg

http://smallbusiness.chron.com/disadvantages-corporate-culture-67042.html

http://www.businessinsider.com/reasons-working-at-google-sucks-2012-6?op=1

http://blogs.ubc.ca/jameslau/2014/11/09/everyone-wants-to-work-for-google/

With the continuous rise of technology, it makes our personal lives easier and more convenient. With more people having access to the internet, it is interesting to see that technology has indeed changed our spending habits. Ecommerce companies are slowly starting to transform traditional retail habits.

With smartphones now being universally owned, it makes spending online really convenient, relaxing and stress free. Mobile apps which belong to Ebay, Amazon & Etsey are designed to make online shopping experience as simple as possible. They allow users to search up their most desired product with the swipe of a button within seconds. To add on, this makes product pricing transparent; consumers are able to compare prices of products quickly and easily without being pressured.

Time constraints is also no longer an issue. Ecommerce sites are ‘open’ 24 hours a day, 7 times a week. With just a few minutes, items can be purchased and shipped to the customer’s desired address. This convenience, may increase the risk of customers being urged and spending on products that they do not necessarily need. By using ecommerce sites to sell their products, businesses are also able to reach a much larger customer segment that a few stores could never achieve. Amazon claims that 85 million people visit their site monthly.  In addition, “according to an Amazon executive, sellers report an average 50% increase in sales”. Selling online would also reduce variable costs (e.g. rent & storage space). Furthermore, lots of sites offer a review section which allows potential customers to read up on what thoughts, experiences and opinions of the previous customer. In my opinion, this is a really useful way to help a customer decide whether they should go with one product or another.

Amazon has also recently proposed the ‘Amazon Prime Air’ delivery system. Amazon’s UAV (Unmanned Aerial Vehicle) is capable of flying at speeds up to 50mph and carry packages up to 5lb in weight (Around 86% of amazon’s inventory). The drones would use GPS technology to fly to customer’s doorsteps within half an hour of the completed order transaction (depending on distance and weight & size of the package). This new delivery system, if implemented, would change how all Ecommerce sites ship their products and drastically decrease the manpower required to deliver packages to customers, thus reducing Amazon’s costs.

Technology has benefited both society and businesses alike. With many different Ecommerce sites and smartphone apps to choose from, customers are able to purchase anything they want at anytime of the day without visiting a retail store or even leaving the comfort of their homes. With this benefit, Ecommerce businesses are also gaining a larger customer base. Implementing innovative ideas such as Amazon’s new delivery system, Amazon is able to be at the top of the ladder and be known as the leading Ecommerce business which utilizes drone-powered delivery.

References:

http://www.simplyvat.com/wp-content/uploads/2014/03/ebay-amazon.jpg

http://blog.meritsolutions.net/2011/how-will-technology-affect-our-spending-habits-this-holiday-season/

http://www.uwcu.org/Education/Articles/Articles/4-Ways-Technology-Can-Affect-Spending-Habits.aspx

http://www.shopify.ca/blog/6399562-the-pros-and-cons-of-selling-on-amazon-and-ebay

https://www.youtube.com/watch?v=98BIu9dpwHU

http://www.forbes.com/sites/gregorymcneal/2014/07/11/six-things-you-need-to-know-about-amazons-drones/

Nowadays, a lot of companies are adopting new policies and shifting their value propositions in order to be more Corporate Socially Responsible.  Corporate Social Responsibility (CSR) is a concept in which a business should willingly contribute positively to the community. The business integrates certain tasks or activities in order to “operate in a more economic, social and environmentally sustainable manner”[1]. Some businesses however, try to exploit the opportunity of using CSR and instead greenwash their customers for their goal of making more profit. Greenwashing is defined as “the act of misleading consumers regarding the environmental practices of a company or the environmental benefits of a product or service.”[2]

An example of greenwashing is the case of, Coca Cola, which implemented the marketing campaign of “PlantBottle”, has been convicted of greenwashing. Coca Cola has been found to have exaggerated the PlantBottle’s positive effect on the environment without any supporting evidence. It is important for businesses to remain transparent especially about all their claims or they will lose credibility and even worse, ruin their image.

An excellent example of a business implementing Corporate Social Responsibility is Budweiser. Budweiser’s “Thank You Designated Drivers” advertising strategy is beneficial to both Budweiser and society because it encourages drinking age youths to have designated driver when they go out drinking. This in turn would lead to a lower rate of ‘drinking under the influence’ accidents. This strategy gives an impression that Budweiser doesn’t care only about making profits but also about its customer’s welfare.

The marketing campaign of a business is a really important aspect as it directly reflects on the brand image of the company. If the business is convicted or exposed for unethical marketing (greenwashing), it would do more harm than good for the business’s in the long run. However, if a business implements Corporate Social Responsibility correctly and is backed with evidence, the business will prosper and lead to increase of positive awareness of the brand.

https://www.youtube.com/watch?v=A5YBYkPNov8

 References:

http://www.international.gc.ca/trade-agreements-accords-commerciaux/topics-domaines/other-autre/csr-rse.aspx?lang=eng#CSR

http://www.unido.org/en/what-we-do/trade/csr/what-is-csr.html

http://www.ethicalconsumer.org/commentanalysis/factsvgreenwash/corporatesocialresponsibility.aspx

http://stopgreenwash.org/

http://strategyonline.ca/2013/07/30/budweiser-thanks-designated-drivers/

https://www.youtube.com/watch?v=A5YBYkPNov8

http://www.ibtimes.com/coca-cola-company-ko-busted-greenwashing-plantbottle-marketing-exaggerated-environmental-benefits

https://www.verdensskove.org/en/node/35317

http://www.greenwashingindex.com/wp-content/uploads/987_coca-cola-PlantBottle-5-566×311.jpg

http://shelleygeorge.files.wordpress.com/2010/07/bud-logo-2.png

[1] http://www.international.gc.ca/trade-agreements-accords-commerciaux/topics-domaines/other-autre/csr-rse.aspx?lang=eng#CSR

[2] http://stopgreenwash.org/

BC Hydro is a Canadian electrical utility company which is based in and serves the majority of British Columbia. Currently, BC Hydro is proposing on the building of a third dam on the Peace River in British Columbia.

The dam aims to provide clean, renewable energy and improve the quality of life of BC’s residence. The dam’s construction itself would employ over 10,000 people. Upon completion, it would provide electricity to over 450,000 homes annually. Victoria has made known that it could benefit from the hydroelectric power due to its growing population.

Even though the $7.9 billion dam promises to benefit British Columbia, it has negative impacts on its local stakeholders such as the farming community, wildlife, and the first nations. The West Moberly, Doig, Prophet, Halfway River First Nations have condemned the project; furthermore, it is in direct violation of the Treaty 8 Declaration of 1899. The treaty promised the first nations their way of life “for as long as the sun shines, the grass grows and the rivers flow.” I feel that it is unethical for BC Hydro to continue with their project due to the legacy of the treaty. In my opinion, I feel that the dam would do more damage than good especially towards the local community, nature and surroundings. The project will result in the flooding and loss of over 83 kilometers of native land, wilderness and fertile farmland, enough to feed a million people.

The dam would also displace and affect the quality of life and livelihood of the local farming communities and businesses. Currently, British Columbia grows less than half of its produce and relies on California to export the remaining to them. This reliance is not optimal as external factors such as severe weather or climate changes could affect the produce grown in California; thus affecting the supply of food British Columbians will have access to. Since the primary sector in the region will be severely hindered, the secondary and tertiary sectors would also be affected as they get most of their raw materials which are produced in British Columbia.

The question that comes to mind is, is renewable energy such as hydroelectric power really as ethical and environmentally friendly as it sounds?

References:

http://www.vancouversun.com/news/First+Nation+chiefs+stage+Site+showdown/10215965/story.html

https://www.bchydro.com/index.html

https://www.sitecproject.com/

http://wcel.org/resources/environmental-law-alert/treaty-8-first-nations-appeal-un-intervene-against-proposed-site-c

https://wildernesscommittee.org/sites/all/files/Paddle_to_the_Premier_FirstNations_Declaration_0.pdf

http://www.theecoreport.com/green-blogs/lifestyle/minorities/firstnations/site-c-how-long-until-the-sun-stops-shinning-grass-does-not-grow-and-the-rivers-dry-up/

http://www.theglobeandmail.com/news/british-columbia/site-c-dam-violates-100-year-old-treaty-bc-native-leader-says/article16537353/

http://westcoastnativenews.com/there-will-be-no-peace-if-the-site-c-dam-is-approved/?utm_source=rss&utm_medium=rss&utm_campaign=there-will-be-no-peace-if-the-site-c-dam-is-approved

http://www.sierraclub.bc.ca/our-work/mining-energy/spotlights/review-panel-ask-bc-hydro-for-more-information-on-site-c/image

Chipotle Mexican Grill is an American fast-food chain specializing in Mexican burritos, burrito bowls and tacos.

After going through class 8, which was on Value Proposition, I was extremely intrigued about Chipotle and how it differentiates itself and attracts a whole different crowd as compared to the other fast food chains. Chipotle serves fast food in a non-traditional manner. They combine the fast food experience with healthy nutrition.

Chipotle’s dining philosophy is “Food with Integrity”. Chipotle aims to use as much non- genetically modified food sources (meats and produce which are raised & grown naturally or organically without the use of any antibiotics, hormones and pesticides respectively). Nowadays, the majority of the population are more health conscious and care about what they are eating and how it was obtained. For instance, Chipotle is the first US chain to “serve naturally raised pork” and currently “all chicken served at Chipotle is naturally raised”.

Chipotle also sources its raw materials from local family farms “within 350 miles of its restaurants”. As of now, Chipotle, currently the only “US fast food chain to support a local produce sourcing program”. Supporting local businesses helps provide jobs and wages, benefitting the local community. Chipotle’s support of local, small, family run businesses gives a good public impression and tells the customers that they are eating ethical, sustainable food.

By only serving naturally grown food, Chipotle is able to meet the customer’s requirements (to be satiated by a healthy, wholesome and delicious meal) and attract not only health conscious people, but also fitness enthusiasts, parents or anyone who is looking for a healthy substitute to their fast food cravings.

References:

http://www.chipotle.com/en-US/fwi/fwi.aspx

http://www.triplepundit.com/2012/10/chipotle-food-with-integrity/

http://video.cnbc.com/gallery/?video=3000235718#

http://www.lasplash.com/publish/Los_Angeles_Restaurant_Reviews_123/Chipotle_Mexican_Grill_Review.php

http://www.non-gmoreport.com/articles/november2013/chipotle-serving-non-gmo-integrity-food.php

http://www.sustainablebusiness.com/index.cfm/go/news.display/id/23911

The Roshe Run is one of Nike’s most popular and successful shoes. The Roshe Run,  designed by Dylan Raasch, is inspired from the word ‘roshi’ which is the honorific title given to a senior Zen master. The Roshe Run’s value proposition, which was to be a simple, comfortable, minimalistic athletic shoe that could be used both in the gym and on the streets, played an important role in its achieve success.

The Roshe Run sells for USD $70-$90 which is considerably lower than their competitors (Adidas Pure Boost is selling for USD $120). Due to the Roshe Run’s minimalistic value proposition where only the absolute necessary (quarter support, heel support and cushioning) is used to build the shoe, Nike is able to cut down production costs; thus enabling them to price the shoes more competitively . The Roshe Run’s low price strategy, allows Nike to focus on a larger market segment will boost their overall market share.

With over 25 different color schemes (colorways) and even sneaker boots variations, customers are spoilt for choice and should find it difficult to not be able to find a pair that appeals to them. It is obvious that Nike took a customer centric approach in designing and producing the Roshe Run. The Nike Roshe Run are also offered in Nike iD. This allows customers to customize and ‘build’ their personal Roshe Run from scratch.

Nike Roshe Run’s minimalism, modern look and versatility combined with its pricing strategy made it so popular. Therefore, its value proposition and design is a major contribution to it’s success.

References:

http://store.nike.com/us/en_us/pd/roshe-run-shoe/pid-463713/pgid-943980

http://sneakernews.com/2014/05/07/detailed-look-adidas-pure-boost/

http://hypebeast.com/2014/4/how-the-nike-roshe-run-came-to-be

http://prezi.com/mhg218mifsel/nike-roshe-run-business-marketing/

http://www.brettgolliff.com/marketinfluence-the-current-state-of-the-nike-roshe-run/

http://www.howtomakeit.com/2012/04/exclusive-the-story-behind-the-nike-roshe-run/

https://img1.etsystatic.com/038/0/9237401/il_340x270.611081547_cnm1.jpg