We have not gone into this topic with any great detail in Commerce 101, but I believe my classmates and I are all currently enrolled in Principles of Microeconomics; so for any of us who have managed to attend a lecture here or there the subject of government intervention in business may have come up. In economics class it was mainly discussed using the example of price floors and ceilings, and we discussed how this would affect the overall market as well as the suppliers and consumers. The whole thing is a rather controversial topic, as many possess very strong opinions regarding what the role of government in business should resemble. It can in some cases be considered a positive thing, like the federal pricing laws on alcohol or high cigarette taxing, but an argument for the other side can always be made.

The newsworthy topic on this front at the moment is the United States’ net neutrality debate; which is, in essence, a fight between internet service providers and the U.S. Federal Communications Commission. Currently the ISPs are wanting to have control over the relative quality of service allotted to different forms of traffic, while President Obama is insisting on a “net neutrality” that restricts said providers from giving anyone preferential treatment based on how much they are able to pay. This particular conflict is yet to be resolved, and a case can be made for both sides. It has yet to spill over into Canada however, namely due to the Telecommunications Act which “bars carriers from unjustly discriminating against any person or giving anyone – including themselves – an undue advantage” (http://www.theglobeandmail.com/technology/internet-video-viewers-wont-see-a-fast-lane-any-time-soon/article21543500/). 

Whatever conclusion this debate reaches, its very existence serves as a reminder to not take anything for granted. Take a moment right now and attempt to imagine your life without the ever-present internet. Exactly. Now who says current events aren’t applicable to everyone?

The Sauder School of Business is fairly well known for its high quality faculty and prestigious alumni, but it is also proficient in an area that sometimes goes overlooked – that of social entrepreneurship. Sauder is home to the Arc Initiative, a program focused on providing experience to students and information to struggling entrepreneurs in economically unstable countries, and it is through this program that students and faculty are effectively changing lives. Society can tend to view business in general as a rather selfish sector of the world, filled with people who are merely concerned with their own bottom line, but social enterprise is working to change that. Business is in fact a wonderfully diverse and practical realm that allows individuals to have a profoundly large scale impact both on other individuals and on society as a whole. Learning the principles of business teaches one about how the world works; both economically and morally. Entrepreneurship is helping people come up with creative ways to support themselves, their families, and their communities; and the Arc Initiative is assisting these individuals in the achievement of their goals. By providing them with the knowledge and tools they need to succeed in their chosen businesses, Sauder is giving them control over their own lives. And this is merely the beginning. Social entrepreneurship is a growing trend, and benefits all those involved.

Many of you are familiar with TOMS, the shoe company that donates footwear to underprivileged children with every pair purchased; or with Product RED, which is affiliated with hundreds of companies and products and donates a percentage of all profits to AIDS research. These and many others are the sorts of companies and initiatives that are worth devoting your life to, and the ones that are changing the world.

Following the theme of entrepreneurship and corporate culture; I thought I would use today’s post to discuss the remarkable success of Vancouver designer Nicole Bridger. After a childhood spent dreaming of design, Ms. Bridger knew that it was something she wanted to pursue as a career and proceeded to attend Ryerson University to obtain her degree. She then went on to work at famed athletic wear company Lululemon, and it was there that she both honed her skills and became inspired to strike out on her own. As our alumni last week told our class, starting your own company can be vastly challenging but also supremely rewarding. It allows one to instill their own values and beliefs in an organization, and to surround oneself with others who share them. This is precisely what Bridger did following her departure from Lululemon. Her clothing brand, Nicole Bridger Designs, reflects the things that its creator deems important; namely being ethically sound and environmentally sustainable. Bridger owns her own factory, which allows her to oversee and control a large majority of production and ensure that her workers are treated fairly and production follows the standards outlined in her company’s value proposition. As far as funding went, she managed to facilitate much of it through bank loans and lines of credit; as well as business support groups. She will also be featured on CBC’s Dragon’s Den in the show’s upcoming season.

.

The much anticipated launch of the software giant’s latest development managed an excellent start with pre-sales for the iPhone 6 numbering in the millions – but will this initial success be followed by a massive recall? Users are already reporting a troubling defect; some claim that after prolonged use the phone becomes distorted and in some cases has actually bent out of its original shape. Until Apple makes an official statement regarding these complaints it is difficult to say whether they are simply irritable customers who would like to see the company squirm, or whether there is a genuine defect that will prove to be costly for shareholders. If the latter is true, Apple and its investors may be facing the pricy reality of a recall; which – especially following a major new product launch – could dramatically affect stock values. This only goes to show exactly how unpredictable the stock market really is, and depicts the logic behind many companies’ seemingly over the top need for secrecy when it comes to new product launches, management turnover, or anything else that could possibly spook their investors. We have discussed this topic in class before as it related to Blackberry – the value of the struggling software company shot up following the rumour of a new product launch – and how even the slightest, most insubstantial factor can have a dramatic effect on the wellbeing of a company.

The iPhone 6 issues coupled with consumer dislike of the iOS 8 update caused Apple shares to drop 3.5%; erasing twenty billion dollars from the value of the company (http://www.businessinsider.com/apple-execs-sold-143-million-worth-of-stock-2014-9).

Coming out of high school it is more than likely that you have never encountered the term ‘corporate culture’ before, and being asked what it means may invoke some frantic Googling. The dictionary definition states it as something that “describes and governs the ways a company’s owners and employees think, feel and act” (http://www.entrepreneur.com/encyclopedia/corporate-culture); so our definitions were – dare I say – not entirely off the mark. One classmate described the term as reflecting the interaction between a firm’s employees and its management; an idea that I feel sums up the theme quite nicely. The example company that we looked at was Zappos (the “Amazon of shoes”) – examining how it has been so successful with its level of customer service – and a lot of the factors in play seem to relate right back to the idea of a company-wide atmosphere. Although Zappos fosters a positive and relaxed atmosphere in an attempt to lessen the stress associated with call centre jobs, this is not the only form of corporate culture that exists.

Some companies such as investment banks believe that stress is a part of the job and are focussed on making as much profit as possible, so therefore their workplaces are much less laid back. If one were to look at a different sector – energy drinks for example – it would be evident that they too have their own distinct “feel” to their business. The corporate culture of a company is what sets it apart from the rest; what defines it, its values, and its strengths. It is even what often untimately decides who gets hired and who gets passed over for promotion, based on how well the employee fits in to the company and how well their individual and corporate goals are aligned.

So, the next time someone is making fun of the RedBull marketing campaign for being too flashy, high-risk, or expensive, just tell them that they will likely not be looking at a future working with Dietrich Mateschitz.

My fellow freshmen and I have learned a considerable amount since the first day we walked into Commerce 101; but the wide world of Sauder remains a tad intimidating at times. It is however, infinitely more inspiring than it is daunting. Over the past eight weeks we have come to grasp (hopefully) some of the broader concepts that are involved in a business education: accounting, finance, operations, and many others – and today we discussed entrepreneurship. As students of Sauder we have various different opportunities to interact with alumni and ask them about their lives and experiences, and it is a truly eye-opening experience. All through high-school we thought of success as a rather vague concept that existed somewhere in the future – a possibility more than a reality. Now that we are here, and talking to people who have stood in our very footsteps, that possibility is turning to reality. It seems sometimes that everyone who graduates from Sauder is destined for greatness, and although I know this is not necessarily true, it is accurate to say that everyone who graduates has the tools they need to achieve greatness. The story that stood out the most for me was that of Paul Davidescu and his company Tangoo, because it bears similarities to what I hope to do in the future. Tangoo is a web based software that acts as a “pocket concierge” (http://www.theglobeandmail.com/report-on-business/small-business/sb-managing/leadership/dinner-planning-company-re-emerges-overnight-as-pocket-concierge/article20898113/) by taking the consumer’s choice of moods and suggesting appropriate social venues for potential outings. Its owner made a guest appearance in our class today and talked about the development of the website and the app; making entrepreneurship seem like a dream job. Paul emphasized the level of commitment that owning a business requires, but also how rewarding it can be. He also recommended traveling and co-op work for anyone considering a future in the entrepreneurship field; saying that it is often outside of the classroom that one gets the experience that will help him/her in his/her chosen field. Tangoo itself originated in Spain, when Paul was on exchange in Barcelona and decided that he wanted to help bring people together socially outside of the virtual world. There are millions of things to be thinking about when starting one’s own business, but there appears to be several common themes to remember – the most prevalent of which is this:

You must be passionate about what you are doing (i.e. you are honestly not doing it for the money). Because let’s be honest, for the first few years you may very well be living in your parents’ basement.

I believe that this principle holds true across all disciplines of business, and it is worth keeping in mind when considering what your future may hold.

I found this to be a very engaging topic to write about, as I can connect to it on a personal level. It’s always fascinating when an obvious link between the topics discussed in class and the reality of the business world becomes evident, and that was certainly the case for me here. I grew up in a small town in rural northern British Columbia, and it was interspersed with and surrounded by First Nations land reserves. It is a beautiful place; the rivers are clear, the air is pristine, and the wildlife is plentiful. It is also smack in the middle of Enbridge’s proposed Northern Gateway route. This multi-billion dollar project (a pipeline meant to carry crude oil from the Alberta Tar Sands to a deep-water port in Kitimat) has the potential to provide jobs for thousands as well as providing access to new markets in the Pacific Rim (more information at http://www.gatewayfacts.ca/About-The-Project/Project-Overview.aspx).

Why then, is it being protested province-wide?

The First Nations people of British Columbia can speak to this. Over the past few centuries, the Canadian government has been sadly lacking in its approach to respecting the Native people of Canada and their claims to the land they call home. This has recently begun to change as decades-old court cases are finally being ruled on, and the First Nations title to the land in question has been made legal at last (http://thetyee.ca/Opinion/2014/07/26/Tsilhqotin-With-Gloves/). History of being pressured into cooperation by the government has left many Native people feeling frustrated and oppressed, and when Enbridge proposed a project that is widely viewed as being potentially environmentally hazardous they took a stand.

The route that the pipeline would follow cuts through some of the most well-preserved wilderness in the country, and would affect the people that live there greatly. One of the more commonly voiced concerns in that of the potential negative effects on the rivers and the salmon runs. Fishing has been a huge part of Native culture for hundreds of years, and remains one today. An oil spill – or even the disturbances caused by construction – could quite easily destroy a fragile ecosystem and cut off the supply of a resource that is integral to First Nations culture and a relied-upon source of food in many communities (http://www.vancouversun.com/news/There+will+pipeline/10122968/story.html).

In July of 2014, eight separate First Nations groups announced that they had filed for a judicial review of the government’s approval of the pipeline (you can read about it at http://www.theglobeandmail.com/news/british-columbia/first-nations-challenge-northern-gateway-pipeline-in-new-court-action/article19608617/), and this is just one example of the many protests that have occurred. It is likely that they will continue to protest until either the day Enbridge cancels the project or the day construction ends.

So where, then, does that leave Enbridge? This is not a one-sided issue, and corporations cannot always be branded as a faceless evil. Yes, this particular project could be environmentally hazardous by nature, but it would be providing jobs to people who need them. I cannot speak for everyone involved, but in my community the economy has been incredibly bad ever since the decline of the logging industry, and the jobs that the Northern Gateway project would provide could be of tremendous help. In spite of this, the title of this post emblazoned on a T-shirt is a common sighting around town. I can’t say – and I don’t think anyone else can either – what the right course of action is here, but as of this moment it is a struggle between two groups who cannot come to an agreement. The First Nations are fiercely protective of their land, and Enbridge has to find a way of modifying their strategy to work with that passion, since it is obviously going to be a long hard fight if they are simply opposing it.

I am intrigued to see how this plays out and how Enbridge is going to adapt as a business to overcome this particular challenge – it is certainly interesting to see how relevant external factors can be to a company. If the feelings and values of a cultural group can overturn a 6.5 billion dollar project, it is fairly obvious that external factors are something that must always be considered.

As Troy stated in his post on the success of the Porsche company (http://blogs.ubc.ca/troymcgee/2014/09/30/the-success-of-porsche/), the power of brand equity and value propositions is not to be underestimated. The value proposition of a company is what defines it to the world – including potential investors and customers. The stronger a value proposition is, the more defined a brand name becomes. Troy said that from the beginning Porsche defined itself as a producer of “sleek, beautiful and yet simple machines that perform exactly the way the consumer wanted them to”, and that this is what the brand is known for. He is right of course – big companies do reap the benefits of their reputations. An example we used in class was Toyota vs. Volvo on the subject of vehicle safety: Volvo has established itself as being “safe”, and no matter how much advertising Toyota does, it will likely never surpass Volvo in the minds of the consumer. This clearly illustrates the concept of value propositions and how important they are to the consumer’s perception of the company in question.

The social media giant we all know and love may be branching into the previously untapped field of healthcare. Facebook representatives say that the expansion is still in the planning stages, but that the corporation may stand to benefit from the industry. Analysts have noticed that users often search the site for health advice and this observation, coupled with the success of Facebook’s “organ donor status initiative” (info available at https://www.facebook.com/help/416967021677693/) have convinced executives that more health related applications may help to increase both user engagement with the site and the company’s public image. This ties in nicely with the concepts that have been discussed in class recently regarding the business model and the idea of customer segments / customer relationships. By adding this new element to the site, Facebook is increasing its potential customers by branching out to include those searching for information about health as well as those looking for a sense of community. Social networking is especially useful in fulfilling the latter requirement – users can connect instantly with others with whom they share something, which facilitates the feeling of belonging. This in turn increases both the time users spend on the site as well as how many users exist, both of which are beneficial to the company.

Ethics can be defined as a “system of moral principles”; one that governs the conduct and behaviour of an individual or group, and despite what some might think these systems are present in the business world today. If one were to call on stereotypes, it could be said that corporations are nothing more than a faceless evil that exists merely to produce profits – and that they could not care less how they go about obtaining them. This is simply untrue. There are always those who would prefer to cut corners and do anything necessary to cut costs, but even these companies are held in the tight grasp of public opinion. Society and business are inseparable; even overlooking factors such as brand equity and stock ownership, a company will always be completely dependent on the consumer. This means that the company is responsible for keeping its consumers happy, and the consumers tend to look down on actions that society would consider “unethical”. In this way, even companies that may not be burdened with a moral compass are forced to adhere to at least a low standard of ethical propriety – if only for their own sake. Consider, for example, (as stated in the Harvard Business Review, http://hbr.org/2006/12/strategy-and-society-the-link-between-competitive-advantage-and-corporate-social-responsibility/ar/1) Nike’s consumer boycott following the media reports of its abusive labor practices; or the Greenpeace outcry in response to Shell Oil’s sinking of the Brent Spar, a massive oil rig located in the North Sea. The company is always reliant on the consumer, so as long as some of the world’s population is in possession of a conscience companies will be held to a certain standard of moral integrity.