Chaya Bains'

After reading Rachel’s blog post on child labour in the US, I was surprised to learn that child labour still exists in countries like the United States. One of the reasons why I was so surprised is because Western culture acts as if we are clear of these problems. I especially find this attitude because we continually point out how developing countries should learn how to set up ethical systems for employment. However, how can one direct others when they have not overcome these problems themselves?

The employment of children in tobacco farms is not under the radar, in fact it is actually legal. It is interesting to note that the US has kept this a secret, and not many people know about it. Had I not read Rachel’s post, I would not have been aware of this issue.

Outsourcing is sometimes seen as a dangerous move because companies do not always know about the quality and production of their products. But companies should also be aware of the negative consequences within their own country’s systems. In both cases, the production of products should play a big role in the company’s decisions of how they produce. Companies should avoid child labour as it is unethical, and has many negative consequences on the children.

Works Cited:

https://blogs.ubc.ca/rcheng/

http://www.hrw.org/news/2014/05/14/us-child-workers-danger-tobacco-farms

Zappos is an online shoe store that is currently based in Las Vegas, Nevada. The company has a very unique working environment, which differentiates it from other companies. In general, call centre employees tend to be stressed out at work because of the customers they are dealing with. Zappos creates a warm and friendly atmosphere through a variety of ways: employee orientations, free food, employee gatherings, medical benefits and healthy relationships. As a result, employees aren’t as tense at work.

Although Zappos is creating a warm environment, some of these initiatives are expensive. Is it worth it to spend money on employee benefits? Personally, I believe it is worthwhile. From my perspective, it is important that employees are happy in their working conditions. This helps a business run smoother, and customers are treated more positively. If customers have a good experience with the company, they are likely to return and spread the word to others. Consequently, the company is gaining and retaining customers, which increases its sales. From the video we watched in class, Zappos currently earns 5% profit from their revenue. This value could be increased if Zappos cut the expenses of employee benefits. Although this seems like a good idea, I believe it is better to enforce the company’s values, resulting in an overall positive experience for employees, management and customers.

Works Cited:

http://www.forbes.com/sites/carminegallo/2012/12/26/americas-happiest-employee/

Toms Shoes is a company that designs and sells shoes throughout North America. The company is seen to be very socially aware because for every pair of shoes they sell, a pair of shoes is given to an impoverished child. This benefits the company in both social and economic ways. Consumers have an emotional connection to the shoes because of the good they do for the the less fortunate, which creates a desire to purchase the stylish shoes and help make a change. Although this seems to positively benefit the company and those in need, I believe there are some negative effects from this system.

“Tom’s Shoes”

In my opinion, Toms could be sending the wrong message to the developing countries they are helping. If a company continues to hand over a product repeatedly, the receiving party will become dependent on this action. As a result, the third party won’t try to start their own shoe business or create their own market because they are relying on Toms to do it for them. In addition, the long-term effects of Toms shoes are very poor. People in developing nations live under brutal circumstances, and they need high quality footwear in order to protect their feet. Although Toms shoes suffice our living conditions, they aren’t durable for the developing nations.

Not to be misunderstood, I believe Toms Shoes is doing a good thing; however, they should consider different ways of spending their expenditure on the developing nations. For instance, they could set up programs where they teach developing nations how to make shoes. As a result, these nations would learn how to function in this area independently.

Works Cited:

http://www.entrepreneur.com/article/236326

“Toms Shoes.” Wikipedia. Wikimedia Foundation, 11 Feb. 2014. Web. 06 Nov. 2014.

As I was browsing through my classmates blogs, I came across Bonnie’s blog post on fair trade. After reading her thoughts on free trade, I agree with her main points. I believe small companies have a more meaningful effect on society than large corporations. In my opinion large corporations don’t always actually care about the social and environmental aspect, but they need to appear like they do in order to increase profits because customers respect the company more. I realize this is not always true; however, I do believe it is for some companies. Small, local companies tend to genuinely want to make a difference and help the community.

I looked through a list of companies who participate in free trade, and found Strait Coffee, located in British Columbia. When customers purchase Strait Coffee, they promote the fair treatment of small farmers and workers, ensuring them healthy living conditions and a sustainable economic future. Lots of times, big corporations focus on social issues that are already widely known. I think it is interesting that Strait Coffee, like many other small companies, focus on issues that aren’t as publicized. All in all, I found it interesting how smaller companies aren’t as well known, but they still focus on social and environmental issues.

Works Cited:

http://fairtrade.ca/en/content/registered-companies

http://www.straitcoffee.ca

https://blogs.ubc.ca/bonniecheng/

After looking at various external blogs, I came across an interesting post written by Seth about the pros and cons of decisions. Seth has a two list approach toward decision making that is separated in pros and cons. The pros weigh in on the advantages a company has when making decisions, and the cons lay out the obstacles that are in the way.

I believe this ties in very well to some of the other tools we have been using in class, such as the SWOT and urgency/importance grid. When a business makes decisions, it is important that they weigh in all aspects of going through with the decision. Laying the advantages and disadvantages helps to answer questions, such as will the company profit?

However, I believe that businesses should not rely on this tool because there is always room for error. Sometimes it is worth taking a risk, and sometimes it is better to lay back, but these decision tools may not always lead you to the right decision.

Works Cited:

http://sethgodin.typepad.com/seths_blog/page/2/

The relationship between the First Nations people and the Canadian government has been fairly negative due to the history of the country, and the Northern Gateway pipeline is certainly adding more conflict to this relationship. Enbridge is a energy delivery based company based in Calgary, Alberta. Currently, the company is proposing a pipeline that would transport 525,000 barrels of oilsands crude to a tanker port at Kitimat, B.C. However, the company is having a hard time gaining support.

The First Nations people value the environment and their land, and this pipeline would destroy what they have gratitude towards. Embridge needs to realize the consequences of building this pipeline. In order to go through with it, they must satisfy the community’s needs and wants; otherwise, the company will gain a poor reputation and struggle in the long-run.

I, myself, have been to a First Nations reserve in Manitoba. I have witnessed the sense of community and preservation of culture first hand. It was a very unique and humbling experience to be able to participate in a pow-wow and feel a connection with the culture and people. Personally, I found the experience to be unreal and eye opening. It was interesting to see how much the First Nations people value the environment and their culture, and I believe it is important for Enbridge to realize the consequences of building this pipeline, as it destructive towards the environment.

Work Cited:

http://www.vancouversun.com/life/Premier+urges+cooperation+more+litigation+government+natives+reach+fork+road/10194776/story.html

http://www.vancouversun.com/technology/Enbridge+buys+million+land+parcel+northwest/9598156/story.html

http://edmonton.ctvnews.ca/premier-prentice-plans-to-move-forward-with-northern-gateway-pipeline-1.2093202

Given the recent budgetary challenges between the President of America and the US Congress, the well discussed “fiscal cliff” has created a dynamic that will ultimately become a stress test between government and business.

It is interesting to note that in 2011, the top 10 defence contractors in America received contracts in the amount of $134 billion. The top three are Lockheed Martin ($39.98 billion), Boeing ($21.45 billion) and General Dynamics ($19.47 billion). As such, the impact to a company’s bottom line will be greatly impacted with either a win or a loss of a government contract.

However, the relationship between business and government is based on a number of factors. Some of which may be business orientated, some of which may be political, some of which may be based on a military objectives and some may be based on overall economic objectives of the country.

Furthermore, the situation may be further intensified by the fact that many of these defence contractors employ over 100 000 workers.

Business decisions can be difficult to make even in simple supply and demand scenarios. When layering factors above and beyond the straight business such as political, militaristic and economic outcomes, the stress between government and business is palpable. Therefore, my conclusion is that political lobbying may in fact skew the management decisions which would typically occur in a business to business relationship.

Work Cited:

http://www.cnbc.com/id/42494839#.

This article explains how Costco outperforms Walmart and Target. Costco does this by concentrating on driving sales, not spending money on advertising, not selling as many brands and paying there employees more and giving them better benefits.

Costco concentrates on driving sales through a no frills approach. The combination of cost savings through lack of advertising and less inventory from different suppliers ultimately give their customers a pricing advantage. This is reflected in their sales growth. From 2006 to 2014, Costco’s revenue has gone up 127.8%. Target and Walmart’s revenue has risen 60.94% and 70.24% respectively.

As a result of staff turnoff, rising employees cost is in many cases an underestimated expense with regards to productivity, efficiency and profitability. Clearly, the Costco operating culture recognizes the importance of longterm relationships with employees, and this has been reflected in the performance of their operations.

Although the culture that Costco has created is difficult to quantify from an operating perspective, it is clear that it has positively impacted the financial performance of the company. Notwithstanding the resources available to Costco’s primary competitors, I believe that the firm will continue to outperform entities with old operating procedures.

Works Cited:

https://ca.finance.yahoo.com/news/costcos-simple-strategy-outperforming-wal-195517929.html;_ylt=Ajf8Z7WBsvZt1U3tHJgrC5ahuYdG;_ylu=X3oDMTBvNTZmMGNkBG1pdAMEcG9zAzUEc2VjA2xuX1VTX2dhbA–;_ylg=X3oDMTBhdnVpNmo3BGxhbmcDZW4tQ0E-;_ylv=3

Starbucks (SBUX) has recently announced an addition to its beverage menu for its customers. Currently, Starbucks sells Frappuccinos in a variety of flavours and sizes. The smallest size available is a tall, which is equivalent to 12 ounces. This size contain 270 calories and 17% of your daily fat needs. Moving forward, Starbucks plans to add another size to their Frappuccino offering. Specifically, they plan to introduce the 10 ounce mini-Frappuccino.

From a marketing perspective, the mini Frappuccinos offer a healthier and cheaper alternative compared to the 12 ounce size. The 10 ounce Frappuccino contains 50 less calories and is 30 cents cheaper than the tall size. I believe in today’s health conscious world, Starbucks will strike a cord with the consumers with this new initiative.

“Starbucks”

However, it is clear that Starbucks has an ulterior motive. Currently, the Frappuccino sales bring in $2 billion in annual sales to this public company. Starbucks is hopeful that their new Frappuccino offering will provide the impetus for increased sales of the product.

Therefore, this is a good example of marketing meeting accounting. If successful, I believe that Starbucks, among others, will employ this strategy for the betterment of both the consumer and the bottom line of the corporation.

Work Cited:

http://www.businessweek.com/articles/2014-09-17/starbucks-tests-a-slightly-smaller-frappuccino?campaign_id=yhoo

“Starbucks Kicks off Summer with New Caramel Ribbon Crunch Frappuccino® Blended Beverage and Offers More Than 36,000 Different Frappuccino® Combinations.” Starbucks Kicks off Summer with New Caramel Ribbon Crunch Frappuccino® Blended Beverage and Offers More Than 36,000 Different Frappuccino® Combinations. N.p., n.d. Web. 21 Sept. 2014.

Within Milton Freidman’s text, The Social Responsibility of Business Is to Increase Its Profits, it is clear that the author believes in a number of fundamental principles to accommodate the long term success, profitability and to maximize benefit to all stakeholders in one’s business model. These include, but are not limited to, maximizing profit, conforming to the changing environment of society, maintaining the laws of the land and demonstrating ethical conduct.

To the latter point, I make note of the recent case in which a mining company named Southwestern Resources clearly crossed the line of ethical conduct. Southwestern Resources is a public company headed by John Paterson, it’s former CEO. Mr. Patterson released fraudulent data regarding the test results of a gold mine located in China. As a result, it is estimated that investors lost more than $260 million due to his unethical conduct. The company’s stock increased to more than $40 per share from 15 cents after issuing deceptive results.

From my perspective, the damage caused as a result of this dishonest conduct exemplifies a number of wrongs to many stakeholders who are innocently associated with the company. Firstly, the shareholders who lost money. Secondly, employees who potentially lost their jobs and their personal reputations by their association with Southwestern Resources. Thirdly, it speaks to the core of one’s confidence in public companies. Incidents like this injure ethical companies from conducting business and raising capital in the public forum.

http://www.cbc.ca/news/canada/british-columbia/former-mining-exec-gets-6-years-in-jail-for-faking-test-results-1.1401431