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.

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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.