Author Archives: CalenFalconerBayard

Arc Initiative Blog

The United Nations is what gives hope to those in need. An international governing body to ensure the human rights of every person on this planet. Unfortunately, corruption often leads to ineffective services. United nations initiatives often provide immediate relief, but are some times unable to conquer the bigger problems associated. Both the Arc and other social enterprises provide a solution instead of simply a relief. Instead of stopping the bleeding momentarily, they will teach people how to prevent bleeding in the first place.

To put my analogy in context, we can look at Arielle Uwonkunda’s story. She is using her knowledge to help promote growth in her home country. Instead of simply funding entrepreneurs, she is investing her time and business knowledge to provide opportunities. The capital she is supplying is not just monetary; it comes in business experience too. This investment is due to payoff as now she has various entrepreneurs and businesses working under the Arc’s guidance.

Initiatives like this do more than just send care packages. They strengthen economies and build an infrastructures of success. The extra money in the economy may even allow for increased education and focus of personal health.

Racism in the NBA

The Los Angeles Clippers have always been the jealous little brother of the Lakers. Their franchise had been the joke of the city for many years. As the stories of Donald Sterling surfaced, it was not hard to see why they were unsuccessful for so long. Sterling infamously spoke out over the phone to his mistress about his dislike of african americans. As the owner of an NBA team comprised of 15 african american players and one african american coach, this became a major issue.

His poor leadership resulted in “16 corporate sponsors suspended their affiliation with the Clippers” according to Bloomberg Businessweek’s article. Sterling was forced to sell the team, and I believe this will make the difference for the franchise. His position as owner was cancerous to the team, with his poor judgement and morals. The Clippers operate in a market that craves basketball, and they will be able to use their battle with racism to create unity. The Clippers have become a movement against racism, and they are due for success. On top of that, the Lakers are worse than ever, meaning that this is the Clippers chance to win over the city. For new owner Steve Ballmer, I think this was a great investment and I could see the Clippers reaching new levels of profitability.

The Grocery Store Pirate

Anyone who frequently shops on west 4th avenue is familiar with Pirate Joe’s, for its amusing service and intriguing story. Owner, Mike Hallat, has become one of Vancouver’s most unique entrepreneurs. Pirate Joe’s is a small convenience store that stocks its shelves solely with the American brand “Trader Joe’s”.

Last year Trader Joe’s filed a lawsuit against Mr. Hallat claiming that his endeavours were illegal and harmed their company image. As any entrepreneur would, Mike fought for his business.  Thankfully, for the people of Vancouver, he won.

I am pleased to see a corporate giant lose to small business, for Hallat did nothing wrong. He purchased all of the products at retail price and supplied it in his own way. His character and ability as a salesman attracts people from far and wide, and his store is truly a benefit to the community. There are many Vancouverites who crave the variety of snacks he has to offer and he has fought hard to ensure those cravings are met.

The demand that Pirate Joe’s receives should serve as a wakeup call to its American counter part. Instead of spending time in court, they should consider opening stores in Canada.

Vancouver House Prices

I recently found relevance in an article on the financial post relating to the volatile nature of Vancouver’s real estate market. As a Vancouverite, I have a growing concern for the rapidly climbing house prices. The influx of foreign buyers has driven house prices in “the 2-5 million range up by 49% since 2009”. Large amounts of foreign buyers utilize the security of the housing industry to invest their money outside of their country of residence. Although this is perfectly legal, it appears to be a flaw in the system. All of the benefits go to people without Canadian citizenships. For the people of Vancouver, all this does is it makes the purchasing of homes extremely difficult. As of now “Angell Hasman and Associates. Hasman said Asian buyers accounted for roughly 90% of sales of properties costing $5 million and more.” I believe there should be some sort of screening process for the legitimacy of the buyer. If a large amount of these real estate “investors” are spending next to no time in their homes, let alone the country, then I believe there should be an extra charge on the purchase of the home. This would make the higher priced housing market of Vancouver more advantageous to Canadian citizens. If industry growth rates continue, I will unfortunately be living with my mom for longer than expected. 

Unemployment

Post-secondary employment has become far from guaranteed. The hundreds hours of studying required to graduate provide, without certainty, a “chance” to get a job. Competition has reached a new level, and university graduates are paying the price.

Cecile Ouillet’s blog mentions “Post-secondary education is now a requirement for most careers.” I would even go as far to say that, without some sort of internship or experience in ones given field, direct employment is unlikely. CBC’s article underlines three key factors to the high rates of youth unemployment (13%-15% for people 15-24 years old): sense of entitlement, education and stalled careers. I believe all three of these are related. Most believe that with a post-secondary education, companies will want them. The truth is that 75% of people under 30 have the same credentials, and that is the root of the problem.

Cecile argues that the article is false in its assumption that universities teach knowledge instead of work-place know-how. I would have to disagree with Cecile, as I believe the article is correct. The things that one learns from university must be applied, in order to achieve a higher level of learning. That is why companies look for students with real life experiences. A vast majority of applicants will have education, but to land that first job one must have that extra piece of differentiation.

Changing the Countries Game (External Blog)

If it hasn’t become evident thus far, I am a sports nerd and I am quite certain this will not be my last sports related blog. Fortunately, for the validity of my blog, sports over the years have become less about the games being played, and instead are about the money being made.

Last December, us Canadians saw this take place right in front of our eyes. Rogers and the NHL closed a 12-year 5.2 billion dollar deal. Blogger Duane Rockerbie, attempts to explain how this was a wise move from the NHL, selling the Canadian TV rights in an “all or nothing auction”. I would have to disagree with Rockerbie. Hockey in Canada is a culture, and by monopolizing the industry the NHL will loose their fan connection. 60 years of Hockey Night In Canada is rapidly approaching its end, and Rogers will continue to make hockey a pay-per-view event by adding more channels.

Hockey is evolving in to a “rich person” sport. I believe over the next few years there will be a major rise in OHL and CHL demand, simply because the prices are so much lower. Smaller leagues also don’t have ongoing labour disputes, which the NHL has been struggling with over the last few years. For the NHL, these issues are the ones that could hurt them in the long run.

New Prosperity Mine vs Tribal Park

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The controversy that is the Dasiqox Tribal Park, could be viewed in many different ways. Personally I respect the fact that the First Nations People are attempting to preserve these biologically diverse lands, but I definitely question the motives. If these lands were so very important to them, why did it take this long to claim them? The Williams Lake area is unquestionably an amazing destination and demolition of such a beautiful place would be a tough pill to swallow; however, the estimated 1.1 billion dollar project should also provide a strong argument to the government.  Although already given full approval, Taseko Mines Ltd. was forced to halt their operations in the wake of what happened. To me, this seems like an abuse of power.

The spontaneity of this Tribal Park proves just how difficult it can be to manage a company. Things can change ever so fast, and all one can really do is plan for the worst. By evaluating external threats in the building of the business plan, companies can attempt to make arrangements to avoid disasters like this. In this case Taseko Mines Ltd. would have had to look into Political and Social threats to their operation. However it is easier said than done, and even with large scale projects like this, threats can easily fly under the radar.

The Money Behind the Beautiful Game

The Barclay’s Premier League is easily recognized as one of the most competitive leagues in the world. Whether its fan support, history, or player skill level the Premier league is often unparalleled. As teams fight for the top spot in the standings, there is another fight off of the field that is of equal importance, profitability. A club’s profitability and brand value is what allows it to buy, sell, or loan its assets to attempt to produce a winning team.

Manchester United is not only a club but a brand. In the last 15 years they have reached out to foreign markets and the pay off has been huge. 2005 was the year that they introduced their Chinese based website. This enabled Chinese Manchester United fans to access important team info, create memberships and more importantly, purchase from the online store. The clubs accessibility world wide provides a major point of difference compared to other Premier league teams. This more fulfilling connection to the team motivates fans to buy team gear, watch the games and maybe even make plans to go see a game live!

The extra revenue generated from proper marketing allows Manchester United to adjust the team to its winningest capacity. The reason for their continual success is: whether they win or lose, to the casual fan, Manchester United will always be seen as a notable team. This can be directly attributed to its profitability and brand value.

http://www.dailymail.co.uk/sport/football/article-471032/Fan-frenzy-halts-United-training-China.html

http://www.dailymail.co.uk/sport/football/article-471032/Fan-frenzy-halts-United-training-China.html

 

Value Proposition

Value propositions are vital components of any company’s success. The question, “what are we providing to our customers?” must be asked by all management teams. By providing a personality or a message to the product, it creates a much stronger connection with the consumer. Products like the Iphone, have become so powerful simply because they have become more than just a phone. Essentially, it is an image. Some would argue people want the Iphone for what it is rather than for what it does. As a result, customers develop a sense of trust for Apple. This highlights the importance of maintaining a value proposition.

When looking at company failures within the same market, Serinda Kong’s blog on the “Blackberry Comeback” highlights the importance of staying true to value propositions. Originally Blackberry dominated the corporate world.  The minute they attempted to compete with the likes of Apple, their image was lost. Serinda eloquently explains how Blackberry intends to “Thrive and rebuild the company’s relations with the enterprise market.” For a company that has struggled as much as Blackberry has, I believe this is exactly what they need.

 

 

 

Accounting Fraud

In class five we explored the world of accounting. We saw the many ways that companies can use accounting to provide them with positive insight. Providing the numbers, helps companies make vital decisions. Unfortunately many people abuse the system and bring a bad name to all involved.

A recent article posted on the Wall Street Journal, reveals one of the many accounting frauds in the last few years. AgFeed Industries Inc. which is a a Chinese animal-feed and hog-production company, was caught inflating revenue to unjustly improve its stock’s value. Shockingly they were getting away with falsifying their revenue “by $239 million by creating fake invoices for the sale of feed and purported sales of hogs that didn’t actually exist”. 

Selfish choices like these, affect all of the stakeholders. Not only does it bring negative media attention and a bad name  to the company, but it also affects the stock owners as they are paying for an extremely over valued item. For those that invested large amounts of money, fraud cases like this can ruin lives. Thankfully, Securities and Exchange Commission or SEC,  filled a lawsuit in which the settlement ended up being 18 million. This money provided some relief for those who were wrongfully treated throughout the whole process. It never pays to cheat, or be unethical and cases like these provide proof.