The relationship between businesses, First Nations, and the government is a broken one. This has recently come to light again as Site C – a proposed hydroelectricity station/dam on Peace River – is triggering discontent. The poor relationship between the groups likely comes from not understanding each others’ values:

All businesses, including BC Hydro, aim to maximize profits. By building Site C, they are capitalizing on demands for hydroelectricity.

The First Nations communities see the dam as a threat disturbing fishing practises and leading to environmental degradation. For the Aboriginals, community comes first. They aren’t against economic development, but it CANNOT happen unless they benefit from job creation and the environment remains unharmed.

The government wants to fulfill promises of these energy megaprojects, but its method of paying off Aboriginals isn’t working because that’s not what they value. Disturbing Aboriginal way of life will only add to existing friction and create barriers for businesses in these areas of a PESTLE:

• Political/Legal: Supreme Court enacted laws and regulations barring projects
• Social: Detrimental media attention/social attitudes; Canadians sympathize with First Nations
• Environmental: First Nations are STRONGLY committed to protecting the environment

The only way for businesses like BC Hydro to be able to go forward with their Site C Project and to win against external threats is for all three parties to mutually benefit. It’s hard to do that though when they all have varying definitions of “benefit”.

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References:

Articles/Text Hyperlinks: http://www.vancouversun.com/news/
First+Nation+chiefs+stage+Site+showdown/10215965/story.html

http://www.theprovince.com/news/
Smyth+First+Nations+play+role+resource+development/10232740/story.html

http://www.kelownadailycourier.ca/opinion/columnists/article_b4461ee6-4b5b-11e4-8ebf-0017a43b2370.html

Image Source: http://www.ammsa.com/sites/default/files/articles/article-photos/p5-site_c.jpg?1387472840

7-Eleven has a clear cost leadership strategy. Known for being quick and accessible, 7-Eleven is open when others are closed, and most products can be bought with spare change.

Now, 7-Eleven wants to do more.

Consumer preferences have shifted towards wholesome eating, and while positive adjectives like “fast” and “convenient” are associated with 7-Eleven, “healthy” isn’t one of them. Its new partnership with Tony Horton Kitchen in its Los Angeles stores though, has produced “fresh on the go” choices like quinoa salad and cold-pressed juice. Sound like something from Whole Foods? Perhaps, but at half the cost.

Although 7-Eleven is capitalizing on the healthy eating market trend, it isn’t compromising cost leadership. These items are being sold for under $7 so it can stick to its value proposition of low cost while expanding customer segments.

It’s a smart move, as supermarkets like Safeway and Wal-mart are offering healthier options too. Organic is the new point of parity in the supermarket industry.

It’s also a risky move though. 7-Eleven may find changing its image so radically could be difficult. When one mentions 7-Eleven, the candy lined racks, Slurpees, and taquitos come to mind. Its move towards “healthy” might leave 7-Eleven’s current customers thinking it’s “selling out”, while the new market of wholesome eaters 7-Eleven is targeting might not take it seriously.

Whatever the case, I’ll be excited to try these products if they come to Canada.

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References:

Article: http://www.ibtimes.com/7-eleven-teams-p90x-creator-offer-healthy-food-options-1697849

Text Hyperlinks: https://www.7-eleven.com/

http://corp.7-eleven.com/news/09-30-2014-7-eleven-powers-up-its-fresh-foods-menu-as-first-retailer-to-offer-tony-horton-kitchen-foods

 Image Sources: https://www.facebook.com/7Eleven

http://www.losangelesregister.com/articles/eleven-605498-foods-horton.html

Location, location, location.

Real estate agents know the importance of this, but operations managers need to too. When you think of athletic apparel, you’d likely think of Nike and Adidas. My high school track team loved debating over the superiority of the two brands. Somehow, Nike always emerged victorious.

The article suggests this is because of their headquarter locations. Nike is situated in trendy Portland, Oregon, while Adidas is by rural Herzogenaurach, Germany. Adidas needs fresh talent in the design, marketing, and digital departments, but who wants to move to the middle of nowhere? Because it can’t hire new innovators, Adidas has failed to join marketing trends, causing them to fall to No. 3 behind Nike and Under Armour.

Operations managers oversee and design a company’s production processes, so their job also consists of deciding where to place distribution centres.  Adidas seems to understand this now, as it is updating its Herzo “World of Sports” campus and establishing a creative studio in New York.

This likely isn’t enough, though. Adidas must incorporate its brand into an up-and-coming city, like how Nike infiltrated Portland and Eugene (Track Town USA) by partnering with the University of Oregon. Evidently, Adidas shouldn’t try dethroning Nike on the track and field ladder. Instead, they could secure the top spot on another ladder like soccer, by investing in studios and distribution centres built in the heart of the world’s greatest soccer towns.

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References:

Article: http://www.businessinsider.com/r-adidas-fights-to-draw-top-talent-to-hq-in-sleepy-bavarian-town-2014-9

Text Hyperlink: http://shop.goducks.com/

Image Sources: http://gearjunkie.com/images/7212.jpg

http://cnjtc.com/wp-content/uploads/2013/04/adidas-soccer-shoe-1080p-hd-sports-wallpaper-.jpg