Good Things Come in Small Packages
It wasn’t until a recent tutorial, in which our TA told us to brainstorm social enterprises and share them with the class, that I realized how unconventional or uncommon non-profit organizations and social enterprises seem to be. Apart from the biggest ones, such as The Canadian Cancer Society or Toms, I was unable to come up with any non-profit organizations or social enterprises without using Google as an aid.
It is for this reason that I found a blog post by a fellow classmate, Ashley Belzil, so fascinating. Her post is about an organization dedicated to the microfinance of low-income people in need. This non-profit organization, called Kiva, is based off of the act of lending, where virtually anybody can sign up and lend a certain amount of money to low-income individuals in order to support their business and/or aid in their ambitions to overcome poverty and low living standards.
I found that this organization ties together many concepts we have discussed in class. It is fundamentally based off of the concept of microfinance, but it is also important to keep in mind the fact that it is a non-profit organization that has the potential to support struggling enterprises. I was astonished at the ability of one small organization to change the lives of those in need in such substantial ways. The organization’s potential made me realize that good things really do come in small packages… whether it be in the form of a small, lesser-known non-profit organization, or in the form of one of its $25 loans.
About Kiva:
http://vimeo.com/16991128
Sources:
http://www.kiva.org/
https://blogs.ubc.ca/ashleybelzil/2012/11/13/the-gift-of-giving/
Walmart’s New Approach on Supply Chain Management
After a recent class on supply chain management, I came to realize that while supply chain management is an extremely important aspect of any business, it is seldom publicized. Its lack of promotion seems to be due to the fact that, in the eyes of consumers, it is a relatively unseen, “behind-the-scenes” part of business. It is for this reason that I was intrigued by several articles on Walmart’s new approaches to supply chain management… in particular, its approaches that involve consideration of sustainability.
Walmart is taking the lead when it comes to innovative methods of supply chain management. Last week, Walmart Canada’s SVP of supply chain management introduced a new design for a truck, called the “Supercube”. The new truck will increase storage capacity by 30% and it even has the potential to innovate supply chain management guidelines, should the new truck design become an industry standard.
Walmart’s new “Supercube” truck
Likewise, Walmart recently announced its increase in the use of its Sustainability Index, noting that by 2017, 70% of all products sold (in the US) will come from suppliers using the Sustainability Index. Mike Duke, president and CEO of Walmart stressed his inclination to “have deeper insight into how [Walmart] can make manufacturing more sustainable for people and communities in China”, by addressing issues with packaging as well as the stores’ energy consumption.
something that I never thought possible before having read these articles and talked about supply chain management in class.
Walmart’s endeavor is undoubtedly an effort that will increase productivity for the company as well as consumer popularity.
Sources:
http://www.thegreensupplychain.com/NEWS/12-11-14-1.PHP?CID=6434
http://www.sustainablebusiness.com/index.cfm/go/news.display/id/24279
http://www.thegreensupplychain.com/news/12-10-29-1.php?cid=6377
The Unforeseen “Leaders” in Corporate Sustainability?
I personally found the most recent class on CSR and sustainability extremely fascinating, and I was shocked to discover, having read an article on corporate responsibility, that traditionally “dirty” companies have the potential to demonstrate impressive advances in regards to sustainability.
The article highlights the fact that the biggest commonality in the leaders of sustainability is their business innovation. Within these businesses, sustainability criteria is implemented and applied to the whole company, keeping details such as the supply chains and the whole lifecycle of the product itself in mind. According to the article and to our recent class on sustainability, this new approach to corporate responsibility is revolutionizing the way we are doing business.
A sustainability diagram demonstrating that in order to be considered “sustainable”, a company must take into account social, environmental and economic effects and aspects.
Surprisingly, industries such as mining and petroleum (although they are not exactly “models” of sustainability) are demonstrating large advances when it comes to being sustainable and corporately responsible. For example, mining companies have recently developed a closer relationship with the community, thus innovating community engagement practices and proving themselves as worthy of keeping their social licence to operate.
While I personally find these advances in sustainability mediocre and questionable compared to those of smaller, “greener” companies, I found it interesting to learn ways in which larger “dirty” companies are making sustainable efforts.
Sources:
http://www.sustainability.umd.edu/content/about/what_is_sustainability.php
http://www.guardian.co.uk/sustainable-business/corporate-sustainability-risky-sectors
The Nexen Deal: a Trade-off Between Protection and Connections?
According to Maclean’s business blog, discrepancies have recently arisen over the projected approval or refusal of the Nexen deal; China’s $15.1 billion bid for a piece of Canada’s oil sands.
Reading this blog post lead me to see that the controversial prospect of the deal is largely related to financial and political disparities. Nexen shareholders, for example, are evidently in favour of the deal being approved, as they would receive a 61 per cent premium on shares. Likewise, Ottawa has recently been consistent in its rejection of foreign deals. Rejecting China National Offshore Oil Corporation’s “friendly takeover” would raise the eyebrows and doubts of foreign investors, who would likely be confused in regards to Ottawa’s lack of a strategy to deal with foreign takeovers. Should the deal be rejected therefore, Canadian resource firms would certainly fall.
On the political side, however, the rejection of the plan is actually favoured, because from a political point of view, the government would be “wrap[ping] itself with a national cloak” and demonstrating its independence.
After our class regarding finance and investment, I am satisfied that I have a broader knowledge of this topic and can apply this knowledge when considering articles such as this. However, while concerns with investment and the economy are undoubtedly important, I question Canada’s dependancy on other countries. I personally don’t see protectionism as a means of making everything in Canada “sacred”, but more so as a means of conserving our resources and leading the way to a sustainable future.
Sources:
http://www2.macleans.ca/2012/11/01/if-ottawa-says-no-to-china-on-nexen-deal-therell-be-a-price-to-pay-experts/#more-310091
http://mindthis.ca/nexen-china/
How does Joe Keep it Fresh?
After having read an article about Joe Fresh’s marketing director, Susan Krashinsky, and the store’s original marketing strategies, it occurred to me that there are aspects of the company that are similar to those of the companies Zappos and Zara, which we discussed in the class regarding marketing and operations and in another class regarding people, cultures and teams.
Susan Krashinsky truly believes, like Zappos’ CEO Tony Hsieh, that the success of a company lies in the workers’ passion for their job and their willingness to be a part of a brand or company that they find inspiring. While Joe Fresh doesn’t require the same vigorous interview process as that of Zappos, its marketing director does believe in the impact of a positive environment, and this has undoubtedly been a source of both companies’ successes.
Joe Fresh is also undergoing development similar to that of the popular European clothing store Zara. Like Zara, Joe Fresh has begun to expand globally, namely to the United States, where it has opened pop-up stores in order to further delve into the minds and preferences of consumers. Susan notes that, “it’s all about how it’s received by the customer”, stressing the importance of getting consumers to “interact” with the brand. Joe Fresh’s pop-up approach closely resembles Zara’s fast-fashion approach, where they have a quick inventory turnover and keep track of consumers’ product preferences in order to keep customers hooked and loyal to the store.
The links between Joe Fresh’s and Zappos’ cultural organization and the links between Joe Fresh’s and Zara’s operations and marketing are evidently a sign of success… and that’s how Joe’s keeping it fresh.
Sources:
http://www.nationalpost.com/related/topics/Fresh+makes+major+push+with+Penney+partnership/6987230/story.html
http://www.theglobeandmail.com/report-on-business/industry-news/marketing/how-joe-keeps-it-fresh/article4621873/
http://coolspotters.com/brands/zara
http://ca.news.yahoo.com/blogs/dailybrew/target-arrival-could-slow-joe-fresh-momentum-even-20110119-090044-896.html
http://www.dragonflyeffect.com/blog/dragonfly-in-action/case-studies/zappos/
Female African Entrepreneurs a Source of Economic Growth
After having read Josh Kron’s article on female entrepreneurship in Africa, I was shocked to discover that female African entrepreneurs are proving to do the seemingly impossible. Not only are they outperforming the men in regards to economic contributions, they are also transforming the world’s prejudice of a country that is supposedly stuck in the hopeless depths of poverty, illness and misfortune. One entrepreneur named Bethlehem Tilahun was motivated by her contempt for the media’s tendencies to pity the Africans and disregard the whole new realm of opportunities currently being pursued in her country. She transformed her local, homemade, eco-friendly shoe shop, “SoleRebels” into a multi-million dollar enterprise that is now recognized and advertised in countries all over the world.
Bethlehem Tilahun, creator of “SoleRebels”
It is women like Bethlehem that are transforming the image of Africa from a country that consumers are willing to fund into one that consumers are willing to buy. After having completed the class preparation for our class on social entrepreneurship, it is clear to me that social entrepreneurs like Ms. Tilahun see opportunities and potential where others see tragic failures, and they take initiative to pursue these opportunities, despite the potential risks or consequences. This is a daunting endeavour that I find extremely impressive. And although they are daunting, it is acts like these that are the source of a country’s potential to, according to the article, “have the fastest-growing economy of any continent over the next five years.”
Sources:
http://www.gatewaytoafrica.com/profiles/entrepreneurs-sole-rebels.htm
Re: First Nations Want “More” out of Mining Talks
Carey Lee’s blog post on the complexities regarding consultation processes between First Nations and the mining industry led me to ponder the importance of business ethics in situations such as these. First Nations in Northern Ontario have recently disputed the new mining regulations that have an effect on their territory, stating that they fail to take into account the First Nations’ wish for there to be an effective form of consultation and communication between them and the industry.
A map of First Nation Communities in northern Ontario
Reading this blog post led me to truly see the connections of both Freeman and Friedman’s interpretations of business ethics in this particular story. According to Freedman’s Stakeholder Theory, parties other than the company itself (such as the First Nations) are involved in and affected by the company’s actions and should therefore be treated as stakeholders with valued opinions and concerns. However, according to Freeman, corporate executives (the mining company in this case) do not have any responsibilities in their activities other than making as much money as possible for stockholders. In the blog post, Carey brings up the thought-provoking question of whether the First Nations’ concerns lie in the environment or rather the money associated with the industry. While I believe that concerns with First Nations’ ethicality are important, we must not forget about the industry’s position on ethicality. In business ethics it is truly up to the business (the mining company) to decide whether or not they listen to shareholder or stockholder (First Nations) concerns… or, in other words, whether they side with Freeman or Friedman.
Who is right? While many people in class argued that both Freeman and Friedman’s approaches are effective, it seems to me as though in this particular case, Freeman’s is being emphasized more than that of Friedman and should this continue, First Nations will continue to feel as though their values and concerns are being ignored.
Sources:
https://blogs.ubc.ca/careylee/
http://www.cbc.ca/news/business/story/2012/10/05/sby-mining-act-changes.html
http://en.wikipedia.org/wiki/Business_ethics
http://www.mnr.gov.on.ca/en/Business/FarNorth/2ColumnSubPage/266514.html (photo)
Microsoft’s Innovative Twist on Brand Positioning
We are all too familiar with those tedious television ads that use the exasperating act of repetition in order to implant a message in our minds. Well, what if you found out that marketing was taking an innovative approach in regards to brand positioning?
Microsoft has created a new, interactive advertising system for its gaming system, the Xbox. The advertising system, “NUads” is the first to allow users to interact with advertisements from companies such as Subway, Toyota and Rogers. Users are given the chance to not only answer poll questions with their opinions on products, but also to test their knowledge of the plot of the ad by answering “just-for-fun” questions. NUads likewise provides companies with the opportunity to see into the minds of consumers and thereby acquire a better understanding of their values and opinions. This is a skill that is certainly beneficial in the realm of brand positioning, where the company’s goal is to hold a memorable, first-in-line position in the consumer’s mind.
It is in this sense that Microsoft is truly taking brand positioning to a new level. The companies involved with NUads are fully equipped to enter the battle for the consumer’s mind, but are the consumers vulnerable enough to succumb to the conquest?
Below is a video that displays the interactivity of Microsoft’s NUads:
https://www.youtube.com/watch?v=tXXoajzmOdU
Sources:
http://www.theglobeandmail.com/report-on-business/industry-news/marketing/microsoft-xbox-ads-go-interactive/article4568297/
http://microsoftarena.net/microsoft-kinect-supported-nuads-are-coming-in-spring/ (photo)
The iPhone 5: Saviour of the US Economy?
Even before the new iPhone 5 had been unveiled, the countless rumours, predictions, criticisms and hype over its release rendered it one of the hottest topics in current affairs. Now that the phone as finally been released, economists are beginning to consider the fact that each consecutive iPhone has had astonishingly increasing numbers of sales, and are even beginning to speculate whether the iPhone 5 has the ability do the seemingly impossible and boost the US economy.
According to economist JP Morgan, sales of the iPhone 5 “could boost annualized GDP growth by $3.2bn, or $12.8bn at an annual rate.” But this statement led me to wonder, how is it possible? Why the sudden potential change in economic activity? The answer is simple; consumer behaviour. Recent studies show that, ironically, those who demonstrate the strongest demand for the new iPhone are those who currently own an iPhone. While some believe that it is the result of technological, life-improving innovations that have the potential to boost the US economy, economist Paul Krugman points out that it isn’t the technological advancements of the iPhone that will boost the GDP, but rather the spending that will occur when consumers abandon their phones and upgrade to the iPhone 5. However, he also begs the question, do we truly believe that destroying capital will benefit the economy in its state of depression? Skeptics are likewise quick to point out that if people buy iPhones with money they intended to spend somewhere else, there would be no boost in GDP.
The greatly anticipated phone has finally been unveiled and is set to be officially released tomorrow. So what is in store for the US economy? Perhaps we are over-hyping the release of the new gadget and the US economy will be relatively unaffected. Or, alternatively, perhaps the future of the US economy is in the hands of anxious, Apple consumers. Only time will tell!
Sources:
http://www.businessinsider.com/paul-krugman-on-the-iphone-5-2012-9
http://www.guardian.co.uk/business/2012/sep/11/apple-iphone-5-boost-us-economy?newsfeed=true
http://www.zdnet.com/why-the-iphone-5-launch-will-be-the-biggest-upgrade-in-consumer-electronics-history-7000004024/
http://www.phonewhiz.ca/ (photo)
BP’s Ethics a Concern for Investors
The devastating outcomes regarding the April 2010 oil spill in the Gulf of Mexico were made clear shortly after the devastating incident occurred. We were aware that the disaster cost the lives of eleven men. We were aware that it was the worst offshore spill in U.S. history. Were you aware, however, that the shares of BP – the oil and gas company – decreased by more than half as a result of its misleading statements in regards to the severe size of the spill and the company’s ability to respond to the incident?
Six investors who bought BP shares right before or right after the incident are now suing for common law fraud and negligent misrepresentation and for statutory fraud, claiming that after the spill, the company had issued statements that neglected to inform investors of both the unmanageable size of the accident and of BP’s substantial wrongdoings. The investors also noted that BP’s safety regulations and statements were deceptive and flawed. BP’s injudiciously false statements were said to entice investors to purchase more shares.
This incident begs the question, what is the extent to which companies will commit moral wrongdoings for the sake of unethical profit? The sacrifice of safety for the sake of financial gain is clear in this particular case. BP should be held accountable not only for the environmental destruction it caused, but also for its seemingly inconspicuous, yet unprincipled disregard of the truth.
Sources:
http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/9518692/BP-sued-for-hiding-truth-over-safety-in-Gulf-oil-disaster.html
http://www.upi.com/Business_News/Energy-Resources/2012/09/04/BP-sued-over-safety-issues/UPI-74091346755890/
http://www.thisblogrules.com/2010/06/contest-opened-to-give-bp-logo-a-new-deserved-look.html (photo)
Link for background information on the BP Gulf of Mexico oil spill: