Monthly Archives: November 2015

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