Cheong Kim's Blog

Chris MacDonald talks about businesses’ responsibilities through the example of Jack Ma, the founder and executive chairman of the Alibaba Group, in his blog post, “Alibaba’s charity is good for the developing world—but its business is better.”

In his blog post, he states that Jack Ma says “When you have more than $1 billion, you have responsibility” which shows Jack Ma’s view on businesses’ social responsibility. Jack Ma believes in giving back to society, so he personally has set aside $3 billions of his IPO earnings to donate to environmental and educational projects in China. In addition to that, Alibaba Group, as a corporate side, donates 0.3 percent of their revenue. Additionally, Chris MacDonald mentions about the value of the Alibaba Group business which demonstrated when he says “[Alibaba] enable enormous quantities of mutually-advantageous exchange.”

Thanks to the business he founded and the activities they offer, people could connect to each other and commerce is enabled. From Jack Ma, I was able to learn what the responsibilities of businesses are and why businesses have to give back to society. Also, Jack Ma demonstrates the actual action of giving back which I admire.

http://businessethicsblog.com/2014/09/25/alibabas-charity-is-good-for-the-developing-world-but-its-business-is-better/

Every customers have right to know about the product that they are buying. However, Hyundai and Kia just got caught from violating their customers right to know; they understated the carbon emissions of several car models and fined $100 million, as well as carbon credit forfeitures valued at more than $200 million. Their total carbon emissions were exceeding 4.75 million metric tons than what they reported to Environmental Protection Agency (EPA).

From this incident, Hyundai and Kia got critical negative effect on their ethical image of the brand and they lost their customers’ trust. Not only the lie affected the companies’ brand name, but it also negatively affected the environment due to over 1 million vehicles’ incorrectly measured emission rate. Some customers must have bought the vehicle because of its lower emission rate to contribute to improving environmental issues, but their effort just turned to nothing because the companies fooled their customers to make more profit. 

To regain their customers’ trust, Hyundai and Kia should pay off the fine,  apologize about their lies and demonstrate that they are willing to change and innovate for better goods and services which will take long time to do so.

http://time.com/3555696/hyundai-kia-fined-carbon-emissions/

Pizza Hut, which is owned by Louisville, Kentucky-based Yum Brands Inc. and based in Plano, Texas, is franchise restaurant that is specialized in pizza. Although they are well-known pizza restaurant and spread all over the world, they are going through decreasing of sales; they have reported declined sales for eight straight quarters at established locations.

The biggest reason of the declining sales of Pizza Hut is that Pizza Hut has strong rivals such as Domino’s Pizza. Domino’s Pizza’s sales are increasing while Pizza Hut’s are decreasing because Domino’s Pizza managed to decrease the price and successfully attracted consumers by going ahead in the price competition.

To regain their customers, Pizza Hut completely renewed their brand; they have a new logo, new uniforms, and new menus. For their new menus, they created new recipes involving flavours from all around the world. This is really smart choice of Pizza Hut because it makes them special compare to other brands. Instead of competing with Domino’s by using cost leadership strategy, Pizza Hut invented their own way to stand out; they decided to offer different menus to re-attract customers. Because of these changes that Pizza Hut tries, the future of the brand seems brighter than it used to be.

http://www.cbc.ca/news/business/pizza-hut-revamp-adds-global-flavours-to-menu-1.2831667

“Remembrance Day is a day where we remember. The point is not to exploit and profit from this day.” – Toronto’s Corporal Chuck Krangle

Gap Canada sent out emails to their customers on Monday which promoting the “Remembrance Day deal” in which a vest was being offered for $19.99. Cpl. Chuck Krangle’s sister also received the email and forwarded it to Krangle, a Toronto veteran, who decided to have an interview with CBC and uncover Gap Canada’s frowned upon product promotion.

Remembrance Day is a day to remember those who fought for the freedom; it is not a day to make profit out of. This action of Gap Canada disappointed many of their customer which critically affect their brand’s ethical image. Even though Gap Canada apologized after the email promotion, their greedy money driven image which caused by the mis-marketing displeased their customers and it will take long time to regain their customers’ trust of the brand.

http://www.cbc.ca/news/canada/toronto/gap-s-remembrance-day-deal-not-appropriate-toronto-veteran-says-1.2830820

http://www.torontosun.com/2014/11/11/retailers-face-backlash-over-remembrance-day-promotions

“These have bright colours, they have pretty patterns.  When you feel them, they’re soft and squishy.  If I were a child, it would look like the perfect item to put into my mouth.”  – Dr. Marcel Casavant, study author

Laundry detergent pods are tiny laundry detergents packaged to-go so that people can just throw one pod into the washing machine, thus saving the convenience of  pouring powder or liquid detergent when they do laundry.

Because of its appearance, however, approximately 17,000 children younger than 6 years old in the U.S. have ingested the detergent and suffered from toxic chemicals. As Dr. Marcel Casavant stated, they are usually colourful, soft and candy-like, which may appeal to children.

A large part of the laundry detergent companies’ sales is taken by individuals who have families with young children. Because the companies did not consider enough about their customer segments, the possibility of children ingesting detergent, and how dangerous these incidents could be, poor young children had to go through the dangers. Even though laundry detergent pods are convenient, the failure of designing proper package that suits to their customer segments caused such hazard to happen; thus, companies always have to consider their customers in every part of their products.

http://www.cbc.ca/news/business/laundry-pods-pose-serious-risk-to-young-children-study-says-1.2827529

http://www.livescience.com/48698-laundry-pods-risk-children.html

BC Hydro and First Nations in British Columbia are having a conflict about The Site C Clean Energy Project (Site C). BC Hydro is planning to build a dam and hydroelectric generating station on the Peace River in northeast B.C. which is First Nations’ territory. B.C. First Nations are against to this project and notified B.C. that they have to pick either Site C or LNG (Liquid Natural Gas).

If we analyze the business model canvas in external environment the role of the First Nations is impossible to ignore. Since the First Nations have an ownership of the land being discussed, they have a right to control what happens above it. First Nations are important as they make up societal and cultural external factors that can essentially shut down BC Hydro’s project. This is why BC Hydro needs to take into consideration the First Nations and create a business strategy that will be beneficial to both parties.

In one article, Premier Christy Clark said, “partnership doesn’t mean [the government and the First Nations] won’t have disagreement.” Just like any other business transaction, communication needs to be present between the First Nations and BC Hydro to resolve partner issues and be successful.

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

http://www.cbc.ca/news/canada/british-columbia/site-c-or-lng-pick-one-say-b-c-first-nations-1.2776481

As an international student at UBC who is paying quite the tuition fee, this blog post of Zi Hao (Leo) Li caught my eye. Frankly, international students pay way too much money for their tuition. Generally, it costs about two to three times as much as domestic student’s, and domestic student’s tuition is overpriced as it is.

It is understandable that universities, as one kind of business, need to make the most profit out of their business. However, if the business does not consider  their customers,  such as increasing the cost on their products or services, all the customers will become uninterested.

Back in high school, I had many friends who were international students and wanted to go to university in Canada. Unfortunately, due to the cost of overpriced tuition, it prevented them from attending. The cost of tuition alone is enough to prohibit eager students from applying to a specific university. The main purpose of a university should be to educate those who are willing to study and learn. These days, I strongly feel that universities are forgetting their initial role, and instead, attempt to make profit. It is about time that universities return to the origin of why they were made.

Zi Hao (Leo) Li’s post: https://blogs.ubc.ca/zihaoli/2014/10/05/rising-costs-of-education/

http://www.newstalk1010.com/news/2014/09/10/study-university-tuition-in-canada-to-rise-13-percent-in-4-years

http://business.financialpost.com/2014/09/11/canada-tuition-fees/

As Vivian Lee addresses in her blog post, everyone already knows that the leading companies in technology, Samsung and Apple, compete with each other.  Not surprisingly, the two companies have had many issues with copying each other.

In Vivian’s blog post, she says, “Companies are constantly changing their features to catch up, and if they run out of ideas, the concept of “me-too development” seems to be a good way to go, too.” I personally do not agree with her statement. Companies are responsible for inventing their own products and offering unique services to their customers. Of course, there are some features and technologies that could be similar to each other. However, it should not turn into “a competition of copying each other.” 

Apple has their own unique style of product that their customers like,  as well with Samsung. For example, Apple always has used the differentiation strategy, making the company unique. The iPhone has a relatively small screen, which Apple users love. However, the new iPhone 6 has a bigger screen, which mirrors Samsung’s products. By copying each other, they will lose their identity as a brand, and could lead to a loss of customers. 

Vivian’s post: https://blogs.ubc.ca/leeviviann/2014/09/22/so-whos-the-copycat/

http://money.cnn.com/2013/08/08/technology/mobile/apple-samsung-timeline/

http://www.pcmag.com/article2/0,2817,2469720,00.asp

“We believe the in-theatre experience is the best forum to experience a movie.” – Mike Langdon, Cineplex Entertainment’s director of communications

Netflix, one of America’s most popular online media streaming site, recently announced that they will release their first featured movie, Crouching Tiger, Hidden Dragon – a follow up of  2000’s Oscar winning movie. Initially, Netflix planned to release the movie both on their website and IMAX theatres. However, AMC Theater, the operating company of IMAX, announced that they will boycott the movie.

What is the main purpose of companies and businesses? Their main purpose is  to provide goods and services that customers need or want. Several people who want to watch movies simply do not have enough time to go to an actual theatre. Companies like Netflix hear the public, and have fulfilled the wants and needs, by providing an alternative to watch movies outside the theatre. As technology progresses, people’s lifestyles change accordingly. Businesses always need to consider these changes, to adjust themselves respectively to fit customers’ new needs and wants. Netflix’s latest tactic was a smart move, and is fitting for the society we live in. However, companies such as AMC, refuse to alter the base of their company, for fast-moving customers.

http://www.cbc.ca/news/arts/netflix-deal-to-screen-crouching-tiger-sequel-slammed-by-theatre-chains-1.2782265

Is Netflix Trying to Kill the Movie Theater Once and for All With ‘Crouching Tiger, Hidden Dragon 2’?

http://time.com/3450854/amc-netflix-imax-crouching-tiger-hidden-dragon-boycott/

“There is no justification – poverty included – for children to work in this sector… It is literally back-breaking work.” -International Labour Organization

A deadly grind, written by Geoffrey York, indicates the dangerous labour environment that South African children are in. Even though the danger of getting metal contamination, respiratory disease, and sexual violence, over 800,000 children in the Democratic Republic of the Congo work at mines to support their families’ living. They work all day long, but the money they get from companies is less than 10 dollars per day. Is this the right thing to do?

Yes, businesses’ the first and the most important goal is making the most profit out of limited resources. And yes, businesses have to cut their budget as much as possible, so they can make more money out of it. However, businesses have to value their suppliers and employees to businesses to be successful, according to the stakeholder theory speech of R. Edward Freeman. Agreeing to the stakeholder theory, I, as a business student, personally think business is not just about making money to fulfill one’s greed to earn more money; companies have to be ethical, honest, and responsible. Those companies’ unethical and irresponsible attitude shown by exploiting child labour will rouse customers’ antipathy which will lead to the loss of their brand-names’ value. Cutting out the budget by unfairly hiring children might seems efficient for now, but will it still be efficient after a couple years?