Cailin te Stroete's Blog

The “one to one” model, though good spirited, is not the best way for businesses to approach social entrepreneurship. The push in recent years for businesses to support greater social welfare is admirable, however simply giving products to those in need can potentially have more negative than positive consequences. As an example, Toms Shoes giving away one pair of shoes for every pair sold may have unknowingly undermined local business in the areas that they donated. No one will want to pay for shoes from a current vender when they can get free shoes elsewhere. People receiving these “one to one” donations may grow to rely on them instead of supporting businesses close by, ultimately eliminating that business in the long run. Unfortunately, based on these results this type of social business model appears to be more of a marketing scheme than a social initiative. People are likely to feel more connected to a social project when they can visualize the positive outcome. For instance, it is much easier to visualize those in need receiving a pair of shoes, than it is to picture them receiving a donation. As a result of this, businesses use the one to one model as a point of difference, which allows them to raise their prices. In my opinion the “one to one” model acts in favor of the businesses over the actual cause. Instead, it would be more beneficial for businesses to teach local people how to make a specific product, or locate a factory in an area that has trouble finding work. Access to education and facilities would better reach the root problem, where as giving away products can actually make it worse. So despite the clear advantages the “one to one” model presents, there are many better approaches to social entrepreneurship.

http://www.couponsaregreat.net/wp-content/uploads/2012/11/toms.jpg

The One-for-one Business Model: Avoiding Unintended Consequences

http://evisionmedia.ca/marketing-vs-sales/

What comes first the chicken or the egg? Mankind has been stuck on this simple brainteaser for years. Interestingly enough, there is a similar dilemma present when it comes to making business decisions. The question here however is concerned with whether marketing or sales should come first for a new startup or product. Futurpreneur blogger Dominik Loncar, makes the argument that in order to do proper marketing, you must first sell the product. By focusing on sales first it enables a company to see what type of customer segment is interested in their product. As a result a startup will waste less money in initial advertising to a broad group, and instead have more effective advertisements following sales. However, In my opinion I think Dominik is overlooking the important effects marketing has on company growth. Without some sort of marketing the chances of a successful product launch are virtually impossible. I could have an absolutely amazing product, but without marketing to position my product in the industry I will make little to no sales. Though I do agree that sales are the best method of gaining information on target segments and room for expansion, if you don’t made any sales the information will contain little credibility. Therefore, I would support the notion of doing small amounts of marketing before releasing a new product or idea. By doing this companies will avoid the charge of major advertisement, while still getting to word out to a number of customers. Ultimately the launch would not be as big as with extreme focus on advertising, but it would allow the company to gain valuable information on how to adjust and position the product. A company can not just simply ignore all marketing, without it sales will be less than substantial and for that reason present less value.

http://www.diffen.com/difference/Marketing_vs_Sales

http://www.meridianbooster.com/2015/04/28/pilot-program-rolled-out-in-lloydminster

Bringing in automated kiosks to take your order is a revolutionary idea that could ultimately change the layout of the fast food industry. McDonalds, a major player in this industry is making plans to completely overhaul its current business model and be the first to introduce these new ordering machines. This will position them well in the minds of the consumers as there is no other company in which to do a comparison. Not only will this allow a greater range of options for the customer, it will also ensure a lower faulty product ratio. Being a picky eater, I cannot count the amount of times I have ordered a completely plain burger and still received the regular condiments. These machines allow the customer to distinguish exactly what kind of burger they want, bettering the current system. As mentioned in Ramsay L Devaraj’s blog, McDonalds boasts that along with these new ordering kiosks with come over 15 000 new jobs created in the company. Therefore, not only will McDonald’s gain publicity due to differentiation, they will also be recognized for their positive expansion to the workforce. Most of the new jobs simply entail educating customers on how to operate the new system.

http://www.businessinsider.com/mcdonalds-overhauling-customer-service-2015-1

Unfortunately, I am in agreement that the hype about McDonalds contribution to society, will last shorter than expected for the fast food chain. In the long run, the result of this automated ordering system will eventually eliminate the need for most workers. Teaching customers how to use the new system will only be relevant so long that the system is new. Ultimately, once the customers are aware of how to use the system, they will no longer need assistance. Additionally, if this new business model takes hold in more than just the McDonalds franchise, and into the rest of the industry, several thousand more jobs will be eliminated throughout the country. As Ramsay Suggested, the timing of the launch is suspicious when taking into account the recent hike in minimum wage. Instead of paying workers more, McDonalds has sought out an appealing way to rid themselves of the extra cost burden. Consequently, I see a dull future for many that are currently working within the fast food industry.

McDonald’s Canada introducing new self-serve options and table service

http://www.click2houston.com/news/mcdonalds-overhauling-customer-service-in-light-of-slumping-sales/30961578

Despite the challenges a discount airline may face when in competition with major brands such as West Jet or KLM, I don’t agree that the idea is an immediate write off. As a student dealing with hefty school expenses, the notion of going on a summer trip seems all to far out of reach. With the current price of a one way ticket to Europe reaching far past the thousand dollar mark, the average student budget simply does not have room. However, with the up and coming WOW Airline’s appealing 99 dollar starting price, travel plans for young adults no longer seem so unrealistic. Though as mentioned in Kayla Little’s Blog the standard price of checked luggage in this airline would be steep in comparison to most others, the over all price of WOW still remains much cheaper. Along with this, the hiked price of checked baggage would be irrelevant to most young adults, as they are mainly looking to backpack with one small bag. Skeptics of WOW airlines finding success, also allude to the fact that the target market for this company is quite small and leaves room for minimal expansion. Conversely, I would say that the customer segment students and young adults is actually quite large. When talking to several of my peers just out of high school, it is apparent that the vast majority of them have made upcoming travel plans in the next couple of years. In addition, those numbers would likely increase with WOW’s value proposition of cheaper air travel. Not only this, but, there is room for expansion into the business segment as well. Most people traveling for conferences, or meetings would likely bring only a small carry on bag. They would avoid any extra charge for stowed baggage, and again take advantage of WOW Airline’s extremely cheap prices. With this in mind, if WOW can maintain quality and safety along with their appealing prices, I definitely see this discount airline becoming a longterm success.

http://infinitelegroom.com/2015/01/22/99-flights-to-europe-have-officially-started-with-wow-air/

http://www.cbc.ca/news/business/wow-air-discount-airline-iceland-1.3251746

http://www.cbc.ca/news/business/wow-air-discount-airline-iceland-1.3251746

Blackberry appears to be taking one last swing at the mobile phone business. Over recent years sales for the company have been in major decline, likely due to their strong competition in apple and google devices. One of the leading strengths phones such as the iPhone have shown over blackberry was their innumerable apps and strong connections with social media. Though some customers held on to their Blackberries, praising the durable frame and user friendly keyboard; the hardware could not compete with the convenience being offered by other brands. In other words, blackberries operating system simply could not keep up with their competition. Nevertheless in the hope that Blackberry will restore their once sought after name, they have just released their newest model, the Priv. This particular release is very interesting in that the company has clearly recognized their drop in customers and therefore significantly altered their approach. As a result, instead of using their original operating system BB10, Blackberry made the switch to use a third party operating system, Android. This move to Android proves that Blackberry is trying to reinvent their value propositions and reposition themselves on the market. Instead of being the phone known solely for business use , it may now be viewed as the best phone for mixing business with pleasure(apps and convenience). It seems that blackberry intends to maintain their market in the business class, as they retained the sturdy hardware, and easy to use keyboard in their new design. However, the much bigger screen and new operating system will assist with appeal to the younger demographic. Unfortunately, I don’t likely find that this final attempt will help blackberry to regain ground in the mobile phone industry. Apple at this point has built too strong of a customer base for Blackberry to make a dent in their sales. Even though iPhone’s may be considered less durable, because they have now become so familiar, customers will more likely buy the new iPhone than make the switch to the Priv. Consequentially, if this last attempt to remain relevant for Blackberry is not successful, they with expectedly be out of the phone game for good.

http://plug-in.bestbuy.ca/t5/Cell-Phones/Introducing-the-Android-powered-BlackBerry-Priv/td-p/123322

http://www.cbc.ca/news/canada/kitchener-waterloo/blackberry-priv-android-phone-could-be-company-s-last-says-analyst-1.3283851

Debate on restaurant tipping policy has taken a recent uproar following the announcement that thirteen fine dining restaurants in New York city plan to eliminate tipping. Universal issues concerning tips and employee wages have been present for years in this industry, however different restaurants are finding solutions through different methods. Almost all restaurant owners agree that the present model regarding wages has been less than ideal. While some nights servers in high class restaurants are receiving close to $700.00 in tips per night, the kitchen staff could be receiving a nominal $120.00. The current distribution of tipping only highlights the importance of servers in ensuring a good customer experience, but minimizes the necessity of having quality cooks and cleaning staff. As a result of workers wages relying so heavily on customer tips, the unequal distribution has left several behind the counter staff completely unsatisfied. One solution by Dirt Candy Restaurant owner Amanda Cohen, has come up with is to simply add a 20% administration charge on to each customers bill. Instead of this 20% going mainly to the server it will be spread equally through the staff in the form of higher wages. Unfortunately, I don’t agree that this solution should be the new route for restaurants in regards to revenue streams. When I go to a restaurant and get less than standard service, I don’t necessarily want to leave a tip as lofty as 20%. However, this additional charge forces “tipping” regardless of whether the customer is actually satisfied. Another approach taken in the realm of removing what is now regular tipping, is to raise the price of a standard meal. By doing this the restaurant will increase revenue enough to pay all employee’s fair wages without such heavy reliance on tips. This solution works both to the employee’s and customer’s advantage. Not only does it ensure fair wages across the board, it also eliminates any question in the price for customers. Therefore, the amount customers are charged following a meal will be made much clearer, because the menu price is exactly what you pay. Implementing this will remove the need for tricky percent calculations related to tipping. Regardless of the different implantation styles that restaurants are using, the ultimate goal is to ensure fair wages for all of their workers. There is high potential here for these New York based restaurants to pave the way for an entirely new dining experience.

http://www.9news.com/story/life/2015/07/07/wheat-ridge-restaurant-no-tips/29815659/

http://www.cbc.ca/news/world/new-york-tipping-restaurant-1.3284508

Currently, the topic on every citizens mind seems to be the recent rise in minimum wage. Certain groups are very much in support of the wage increase, arguing that climbing wages will put more money in the hands of consumers, in turn leading to a rise in the economy. Along with this, these escalating wages will significantly add to the gross domestic income. As a result, people who normally would be saving every penny, now how excess money to potentially put back into the economy. Despite the obvious positives of increasing the minimum wage, I still find myself skeptical that it will benefit the social welfare of Canadians over all. Though employees who are currently earning minimum wage will be more than satisfied, recent hires or those looking to be hired will likely not show as much support for the change. For many companies, a direct result of the hike in minimum wage will be making less hires. Instead of hiring ten people at $10.00’s an hour they’ll hire nine people at $11.00 an hour. Therefore their profit margins will not take any sort of hit. Unfortunately, I see this bringing forth not only a higher unemployment rate, but also more work for employees to compensate for the lost set of hands. Even though the goal of raising minimum wage was to allow for people to flourish in society, the result is actually going to be a higher unemployment rate. People who could have been struggling to make money could now be making no money at all. Another question that I’ve considered is in regards to the increase of all wages, not just minimum wage. Will companies raise their wages for all workers, or will they pay the same for a minimum wage job that they do for a higher up position. If workers in promoted positions earn the same amount as everyone else, they may begin to question why they even put effort into getting promoted. Inevitably this could lead to a lack of incentive in the workforce as well. In conclusion, it may be best to simply leave the minimum wage as it is, to avoid risking the many negatives that could surface from raising it.

https://mises.ca/posts/blog/the-world-view-behind-minimum-wage-advocacy/

http://www.theglobeandmail.com/report-on-business/economy/five-provinces-hike-minimum-wage/article26618941/

Similar to myself, I am sure many of you have faced the frustration of dealing with erratic adds popping up any time you open apps or the internet. Often, the best way for companies to get their name on the consumer radar is through pop up advertisement, especially on websites or apps that are homologous to their own. Unfortunately, for users like you and me this means getting disrupted constantly to view what is usually irrelevant and distracting material. Thanks to Apple’s most recent iOS update, our problems are finally seeing an end. Now the new software enables iPhone users to download ad blocking apps, putting a stop to any intrusive adds appearing on screen. Despite immediate consumer approval displayed by several ad blocking applications reaching the top charts, not everyone is so pleased. As a result of the blocking apps being released websites using advertising to make a profit are the ones facing all the consequences. No advertiser is going to pay a company to promote their product if all promotions can be blocked. Along with this, the companies doing the advertising are already facing a dramatic drop in sales. The question that is now on my mind is whether the slight benefit of an interruption free search experience, is worth the negative side effects for many businesses. Scrutiny against the blocking apps has caused a few of them to reassess their idea, and allowing what would be thought of as “good” ads to be seen, and “bad” ads to be blocked. However, the question now is what qualifies as a good and bad advertisement. What this brought to my attention, is that instead of complaining about drops in sales, suppliers should be taking a look at how many people are interested in ridding their phones of these annoying advertisements. Potentially, what they thought was bringing in all the capital, was actually driving customers away from these companies. An outcome of this ad blocking release could actually be the reinvention of the way businesses promote their new product. Businesses will have to find a way to make their product known, while simultaneously avoiding being a bother to consumers.

http://www.dogtownmedia.com/ad-blocking-software-threat-opportunity-mobile-app-developers/

Many were shocked by the revelation in recent news that one of the world’s largest automakers, Volkswagen, purposefully cheated both their American and European auto emissions tests. Devices were inserted into the engines of numerous vehicles that could sense at what times they were being checked and simultaneously altered how the engine performed in order to appear more efficient. Coincidentally, what’s worse is that the main marketing strategy of the German car titan was to boast of its exceptionally low emissions. Unfortunately for Volkswagen, the rise in vehicle sales due to the marketing plan will by no means make up for the losses in reparations that are now piling up. On top of several customer lawsuits, and probable fines, Volkswagen will unquestionably have to pay for the cost of 11 million vehicle recalls. Currently, the car company has allowed for 8.7 Billion dollars of capital to be used towards covering the lofty costs of this mishap. Mainly this money will be allocated towards the refitting of vehicles with the not so efficient current software, into cars that will at least pass the present regulations.

http://www.cbc.ca/news/business/porsche-exec-likely-to-take-the-wheel-at-volkswagen-amid-emissions-scandal-1.3242965

Not only did this bombshell abruptly halt the sale of most Volkswagen vehicles, it also brought a question to the consumers on whether they even want to continue purchasing diesel in general. This could potentially bring a drop in sales for not only Volkswagen, but other diesel sellers as well, such as Mercedes Benz. In a forecast for the future, it seems as though diesel sales will continue to plummet, as a large base of consumers in search of more efficient options. Though the discovery of these faulty emission tests sheds a bad light on Volkswagen, it could also create the final surge for companies to move away from fossil fueled vehicles altogether. A result of this catastrophe, could quite possibly be the start of an electric car revolution.

http://www.businessinsider.com/ap-volkswagen-faces-major-legal-trouble-in-emissions-scandal-2015-9

http://www.cbc.ca/news/business/volkswagen-emissions-1.3248230

Now that Apple has conquered both the mobile-phone, and personal computer industries, many have been wondering what is next for the tech mogul. Well, the answer to the looming question on everyone’s minds is finally here! Apple has constructed substantial plans to enter into the automobile industry. Following the consumer’s lacklustre response to the recently released Apple Watch, it comes as no surprise that apples next launch needed to be big. Contemplating the movement of other tech firms into the car business, such as Google’s venture into self driving cars, it makes sense that to remain relevant Apple would choose to join in the race as well. Not only would this new endeavour please the “ever wanting more” customers of the tech company, it could also potentially lead Apple into an entirely new profitable market.

However, all things considered, I’m not sure stepping into the automobile business is the best move for the company as a whole. As recently discovered by Volkswagen and their emission crisis, it is difficult for even experienced automobile companies to abide by the strict vehicle regulations. With Apple being completely unpracticed in the field, it is challenging to imagine that they would launch a successful product right off the bat. Along with this, it is well known that Apple tends to test their newest products, through actual consumer use. For instance, being a customer purchasing the latest version of the iPhone, it is typical to expect several glitches, and small issues that are likely to be fixed in the next release. If Apple continued to use this method when entering the realm of the auto industry, it could result in potentially disastrous effects, especially regarding customer safety. Despite the excess capital Apple currently holds to put towards a new product, entering a market as large and regulated as the automobile industry looks like a mistake. One wrong turn or accident, and Apple could potentially be chipping away at their own consumer base due to a new bad reputation. In the long run, Apple is much better suited to revolutionize new vehicle software, while leaving the hardware to the seasoned professionals

http://hexus.net/ce/news/automotive/80590-apple-rumoured-working-car-rival-tesla-electric-vehicles/

http://www.economist.com/news/business/21667923-apple-entering-auto-business-road-ahead-could-be-rough-iphones-icars