In Rina’s post, she discusses about celebrity social entrepreneurship. For celebrities it is easier to start businesses and enterprises due to their “celebrity status” and recognition. And in the real world, this is often seen as personalities like Kim Kardashian and Paris Hilton profit off their infamous status. However, there are other instances where this profit is maximized for the benefit of others; social enterprises. One of the prime examples as discussed in Rina’s blog post would be Jessica Alba.

As a celebrity with a broad fan base, Jessica Alba already has brand recognition not only nationally but in the international community as well. This article in particular intrigued me as I have two younger cousins and having babysat them I know the importance of having non-toxic products around them.

Not only is her initiative for the company, The Honest Company, genuine but it also has a core value which is the foremost important aspect of social entrepreneurship. In a fast developing, industrialized world, it is easy to forget how dangerous the little things can be; such as diapers and baby goods. Social entrepreneurs like Jessica Alba are generating profit but also establishing a message.

I agree with Aimie’s post on the new start-up company Coin. Although it is a very intriguing ad lucrative idea, there is much insecurity to the concept. The idea of having all your cards and credit cards in one single card makes it convenient for any businessman out there. However, for any businessman, I presume, security comes first over convenience. Now, only 26 days away from its launch of pre-orders, it is crucial that the company resolves its key issues.

In order for Coin to be a successful product it must be able to work offline and online. For example, as of now, it has been introduced that the coin card is connected via Bluetooth to a smartphone device. However, this is assuming that this smartphone is running. For security reasons, the coin card will lock up once it is disconnected from the phone for more than 10 minutes.

Moreover, there are no guarantees that credit card companies will agree to this idea of “all inclusive card”. There are liability and fraud issues that undermine the whole concept of Coin. Furthermore, currently, American Express cards are denied by merchants, so how will customers know that Coin cards won’t be denied?

Social enterprises are organizations that apply business skills for core values rather than for profit. In Thailand, social enterprises are supported by the government, allowing the nation to have a sophisticated structure for social enterprise. In 2009, the Thai government formed the National Social Enterprise Committee to raise awareness and gain more finance. The following year, the Thai Social Enterprise Office (TSEO) was formed and $3.2m worth of funding has since been provided.

Other than the Thai government, the King is also a huge contributor of social enterprise in Thailand. Social enterprises such as Change Fusion allow the youth in Thailand to lead the social enterprise movement through social media. Moreover, in preparation for tsunamis in Thailand, social enterprises and various government agencies have gathered to anticipate such natural disasters. However, it is evident that government support is crucial for social enterprises to thrive, as the current government has failed to do so.

The prime minister, elected last June, spent less time for social enterprises than the past, demonstrating less political support for social enterprises. However, the TSEO is hallway through its five-year plan and is in a plethora of investors, leading a bright future for social enterprises in Thailand.
Link to article:

http://www.theguardian.com/social-enterprise-network/2012/sep/07/social-enterprise-thailand-strong-government

An ongoing topic discussed constantly is corporate responsibility. Women employees claimed that they’d been systematically underpaid and underpromoted. Walmart is known for having such a bad reputation for its treatment towards workers. Ultimately this has huge implications on brand image and perceptions of the organization. Is this negative brand image really worth the low labor costs? Or would Walmart be better off if they paid their employees with higher wages resulting in no negative corporate image? Well, this question is not clear cut. It is hard to measure this since once a company has developed such a reputation it is hard to escape from this. However, it really depends on the customers. If they only care about the dirt cheap prices rather than the way workers are treated then they may not change their spending habits. On the other hand other customers may be against this form of “unethical responsibility”.

http://business-ethics.com/2013/10/01/0958-the-impact-and-echoes-of-the-wal-mart-discrimination-case/

The Japanese electronics firm Toshiba has said it will halve the number of staff in its TV divisions to 3,000. The changes will include closing two of its three overseas TV manufacturing facilities. Toshiba insisted on sticking to Asia and Africa, both which are emerging markets, and end sales in “unprofitable regions”. Employee costs are a huge cost to Toshiba especially when the minimum wage in Japan is roughly $10.65 per hour. Toshiba aims to reduce its loss of $166 million. Also Toshiba insisted that it would move resources towards making large screen ultra-high-definition where growing demand is expected. However Panasonic and LG are also manufacturers that have launched the ultra HD TVs. Perhaps for Toshiba to maximize sales and compete against competitors, it may have to establish product differentiation. The ultra HD TV may not be enough as two of its major competitors has also implemented this technological advancement. Therefore a unique selling may have to be established that would be suitable for current and potential customers of Toshiba. This will definitely require lots of research and development efforts.

The Japanese government will raise the rate of sales tax to 8% from April next year, from the current 5%. Many policy makers argue that the reason for the rise is due to reducing Japan’s public debt, which now stands around 230% of its GDP.The government intends to increase revenue in order to fund an ageing population by covering such welfare costs. The rise in tax can be seen as a long- term investment in maintaining the nation’s social security system. This would directly increase the sales of goods and services thus having a huge impact on consumers spending behavior. Although in the short run many consumers would not buy as many goods and services and have a knock on effect to business sales. Thus many companies need to focus on strategic planning and plan ahead in order to maximize profits. The macro economy has a huge impact on the business world therefore firms should consistently keep track of such government policies on a regular basis. Also I think that firms should invest in research and development efforts in order to project the demand after the increase in sales tax, so they know how much to produce without incurring waste.

http://www.bbc.co.uk/news/business-24343540

The ‘matatus’, Kenya’s mini busses seating between 14 and 24 people that travels along Kenya’s capital Nairobi carry a third of the city’s residents to and from work each day. Recently as of October 2013 the company has decided to invest in a free wifi system for the passengers which would increase customer satisfaction. As average rides are around 45 minutes to two hours, many customers face boredom due to limited entertainment systems and long travel times. Consequently this would stimulate brand loyalty and allow matatus to compete against major competitors. Free wifi means that a GPS system will be available for customers so they can keep track of traffic information, travel times, and access the movement of buses. Not only would this increase customer flexibility but attract potential customers whom are currently enjoying a substitute transportation system of the matatus. Technology advancements within the current decade has had huge impact on the business world and is a major factor many firms need to consider. In the case of matatus, the company has used advancements in technology to strive to fulfill customers’ needs and wants.

http://www.bbc.co.uk/news/business-24426676

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