Chrisanna Chan's Blog

With reference to Class 20 on Social Enterprise, I agree and support the “one for one” business model because I admire and respect its focus on a solution to poverty through entrepreneurial means. Sole Rebels is a sustainable shoe company that has manufacturing plants in developing countries which creates labour opportunities for locals. Toms on the other hand, has implemented the “one for one” business plan; with every purchase of a toms shoe, a person in a developing country receives a pair of toms for free. True, there are some issues with manufacturing and who it is that takes up the cost for producing the “free” pair of toms, I believe that the overall effort is a great start. There are only a few popular companies whose core values lie in social enterprise and suppressing the idea altogether belittles the efforts that have been made.

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I believe that if Toms takes a different approach towards their manufacturing and outsource to building plants on site in developing countries it can benefit both sides; the company and its workers. Toms has an established reputation as their brand promotes their values of a solution to poverty. As a quote in Wharton says, “We know from research that people are most motivated to help when they feel a connection to those whom they’re helping.” As the “one for one” model continues to be experimented on, I have faith that with innovation and research an optimal solution can be reached that promotes positive change and sustainability.

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References:

1. Forbes. Forbes Magazine, n.d. Web. 16 Nov. 2015. <http://www.forbes.com/sites/jamespoulos/2012/04/11/toms-shoes-a-doomed-vanity-project/>.
2. “How Social Entrepreneurs Make Change Happen.” Harvard Business Review. N.p., 14 Oct. 2015. Web. 16 Nov. 2015. <https://hbr.org/2015/10/how-social-entrepreneurs-make-change-happen>.
3. “Our Ethos.” Our Ethos. N.p., n.d. Web. 16 Nov. 2015. <http://www.solerebels.com/pages/our-ethos>.
4. “The One-for-one Business Model: Avoiding Unintended Consequences.” KnowledgeWharton The Oneforone Business Model Avoiding Unintended Consequences Comments. N.p., n.d. Web. 16 Nov. 2015. <http://knowledge.wharton.upenn.edu/article/one-one-business-model-social-impact-avoiding-unintended-consequences/>.
5. “The One for One Company | TOMS.” The One for One Company | TOMS. N.p., n.d. Web. 16 Nov. 2015. <http://www.toms.ca/?cid=ps_cabrand&utm_source=google&utm_medium=cpc&utm_term=toms&utm_campaign=CA%2B-%2BBrand%2B-%2BHead%2BTerms%2B-%2BExact&utm_content=svNtDEdsn_dc%7Cpcrid%7C44861492509%7Cpkw%7Ctoms%7Cpmt%7Ce%7C>.
6. “What Is Social Entrepreneurship?” Skoll World Forum on Social Entrepreneurship. N.p., n.d. Web. 16 Nov. 2015. <http://archive.skoll.org/about/what-is-social-entrepreneurship/>.
7. Wikipedia. Wikimedia Foundation, n.d. Web. 16 Nov. 2015. <https://en.wikipedia.org/wiki/Dambisa_Moyo>.

Louis Vuitton, Tiffany & Co, Hermes, Prada, Celine, Hugo Boss. The list of luxury retail brands go on and on. In today’s day and age, the demographic for customers who prefer shopping online changes how luxury brands target consumers. “Why is this?” one may ask. With today’s demographic becoming more tech-savvy and having more available technology at hand, consumers are looking for convenience to complement their busy schedules. Luxury brands have been over-allocating expenditure on advertising through print ads when they should be investing more into digital ads.

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Luxury shopping is also less brand and status oriented than it used to be. As e-commerce becomes more and more popular, luxury brands have dipped their toes into the online shopping world, though many do not offer as many products online as they do in store. Luxury brands often value the in-store customer experience and may not prefer the lack of exclusivity. However, many who are of the age bracket tend to have less time to browse in store when they have the option to do so online. Fashion sites like Stylecaster also put together “celebrity-inspired” outfits for cheaper prices. As I have learned in class about market research and branding, luxury retail brands have to adapt to constantly changing preferences if they hope to attract loyal customers.

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References:

1. Halpin, Cooper Smith and Nancee. “How Luxury Shoppers Are Changing the Face of Retail.” Business Insider. Business Insider, Inc, 13 Nov. 2015. Web. 16 Nov. 2015. <http://www.businessinsider.com/the-luxury-e-commerce-report-the-shopping-preferences-of-high-income-consumers-2015-11>.
2. “The Definition of Luxury Retail Is Being ‘shattered’.” Washington Post. The Washington Post, n.d. Web. 16 Nov. 2015. <https://www.washingtonpost.com/news/business/wp/2015/01/12/the-definition-of-luxury-retail-is-being-shattered/>.
3. “Shopping.” StyleCaster. N.p., n.d. Web. 16 Nov. 2015. <http://stylecaster.com/shopping/>.
4. “Why Are so Few Luxury Brands Sold Online?” Ecommerce Platforms. N.p., 14 May 2015. Web. 16 Nov. 2015. <http://ecommerce-platforms.com/ecommerce-selling-advice/why-are-so-few-luxury-brands-sold-online>.

The term “authentic” described by dictionary.com is as follows: “not false or copied; genuine; real.” Businesses often times are associated with having a “self-seeking” nature. An authentic workplace with this assumption in mind seems like a stretch. According to Rob Goffee and Gareth Jones’ blog post on the Harvard Business Review, companies that “diversify” their workplace may not be reflecting the differences that mean the most. More often than not, these differences are more than skin-deep. Goffee and Jones suggest that businesses should hire those with, “fundamental differences in attitudes and mind-set between one person and another.”

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I agree with this statement entirely and believe that companies should strive to achieve authenticity in their workplaces that will create value for the organization as a whole. Though diversity in terms of age, disability, religion, sexual orientation, skin colour and culture are always great, those working in the organization should be able to be themselves. What does this mean, to be yourself in the workplace? Coffee and Jones describe it simply: “to have a voice, exercise discretion, express disagreement, show what they really care about, and feel “natural” or self-fulfilled on the job.”I have learned from class about management and creating a workplace where employees are passionate about the companys’ goals. Creating an authentic workplace is the perfect depiction of this and I hope to have the opportunity to work for an organization that understands the importance of difference.

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References:

1. Dictionary.com. Dictionary.com, n.d. Web. 16 Nov. 2015. <http://dictionary.reference.com/browse/authentic?s=t>.
2. Goffee, Rob, and Gareth Jones. “Authentic Workplaces Don’t Try to Make Everyone the Same.” Harvard Business Review. N.p., 12 Nov. 2015. Web. 16 Nov. 2015. <https://hbr.org/2015/11/authentic-workplaces-dont-try-to-make-everyone-the-same>.

How do companies respond to a good that is highly inelastic? You guessed it- they raise their prices like there is no tomorrow. With reference to Trisha’s blog, Alexion Pharmaceuticals’ drug for rare blood diseases, Soliris charges $700,000 in Canada for a year’s use. This is one of the many patented drugs that have driven prices up because of it’s inelastic nature. Lawsuits have been filed against the government for its attempts on cutting its prices. Similar to Trisha’s comments, this issue makes me question the values of Alexion Pharmaceuticals and the thoughts of their decision makers. If their core values do not include the wellness of patients and simply the profit generated, it is ironic for them to market their supposedly, “patient-focused” values.

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I believe that further measures should be taken to decrease prices of overly expensive drugs. Especially for drugs that have a, “life or death” impact, the inability to afford this drug can literally change someone’s life. Alexis Pharmaceuticals promotes the amount of research and development that they have on medicine, however this is deprived from people who cannot afford their products and therefore cannot benefit from their breakthroughs in research and technology. This issue really boils down to the company’s values and what it is that they truly support.

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References:

1. “Alexion Pharmaceuticals, Inc (NASDAQ: ALXN) | Global Leader in Treatments for Patients with Devastating and Rare Diseases.” [value]. N.p., n.d. Web. 16 Nov. 2015. <http://alxn.com/>.
2. News, CBC. “U.S. Drug Company Sues Canada for Trying to Lower Cost of $700K-a-year Drug.” CBCnews. CBC/Radio Canada, 25 Sept. 2015. Web. 16 Nov. 2015. <http://www.cbc.ca/news/health/u-s-drug-company-sues-canada-for-trying-to-lower-cost-of-700k-a-year-drug-1.3242172>.
3. Rana, Trisha. “Trisha Rana’s Blog.” Trisha Ranas Blog. N.p., n.d. Web. 16 Nov. 2015. <https://blogs.ubc.ca/trisharana/>.

Many banks have now implemented a mobile banking option that makes banking easier for customers on the go. Is this a positive or negative change? In regards to Laura’s blog, she states that, “the movement towards technology, banking in app form could soon become common practice.” I completely agree. 55% of Canadians have switched to internet banking as their primary choice of banking. Mobile technology and advancements in speed and efficiency for these banking applications and sites will only increase in popularity from here on out. This is also great for companies as this new channel picks up, profit for them will increase as well.

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However, an issue that I’d like to address is security. Is online banking safe? Although companies do their best to implement security policies to ensure confidentiality, traditional customers often question the security of these measures. There have been online hacking incidents that have negatively affected banks’ reputations. As our society evolves into a tech-savvy culture, I believe that it is important to take into consideration the possible loopholes in the technological system to further improve. Fortunately, there are already several banks that have daily security changes in their systems and top-of-the-line technology to ensure security for their customers.

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References:

1. “How Canadian Bank.” Canadian Bankers Association. Canadian Bankers Association, 29 July 2015. Web. 3 Oct 2015.
2. Sayson, Laura. “Laura Sayson’s Blog | Just Another UBC Blogs Site.” Laura Saysons Blog. N.p., n.d. Web. 16 Nov. 2015. <https://blogs.ubc.ca/laurasayson/>.

Macy’s inventory percentages have rung warning bells at its stores this past month. By the end of October, inventory was up 4.6 percent due to the incoming holiday season and new winter merchandise. Sales for Macy’s have also dropped, causing other department stores’ sales to drop as well. Because of this inventory pile up, Macy’s has marked down many of their products to clearance in hopes of attracting thrifty customers. In its last quarter, Macy’s CFO has reported that they will need, “to liquidate this inventory in the fourth quarter so that we can maintain the flow of fresh new merchandise.”

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I agree with this statement that Macy’s CFO Karen Hoguet says. Based on what I’ve learned about inventory and operations, high inventory is never a good thing. A company’s quick fix to this usually results in clearance sales and mark downs. Though this is a quick fix for the short run, I believe that operation changes should be made on the way that inventory is dealt with. If the company can find a way to generate a fluid flow of merchandise that will benefit them in the long run, it can improve sales and increase efficiency for the company altogether.

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References:

1. “Macy’s Sales Continue to Slump.” WSJ. N.p., n.d. Web. 16 Nov. 2015. <http://www.wsj.com/articles/macys-reports-disappointing-sales-1447248170>.
2. “Macy’s Cuts Outlook, Says Markdowns on the Way to Clear Elevated Inventory.” Www.theprovince.com. N.p., n.d. Web. 16 Nov. 2015. <http://www.theprovince.com/business/fp/macys+reports+lower+sales+trims+profit+forecast+2015/11508764/story.html>.
3. “Macy’s – Shop Fashion Clothing & Accessories – Official Site – Macys.com.” Macys. N.p., n.d. Web. 16 Nov. 2015. <http://www.macys.com/?&cm_mmc=GOOGLE_Trademark_International-_-Macys%2BTrademark%2BExact%2BCAN%2B-%2BG_Macy%27s%2BCanada-_-43774054774_Exact-_-macys_mkwid_sqNMXP9D8%7Cdc_43774054774%7C-%7CqNMXP9D8>.
4. Ramakrishnan, Sruthi. “Mounting Inventory at Macy’s Is Ringing Warning Bells at Department Stores.” Business Insider. Business Insider, Inc, 11 Nov. 2015. Web. 16 Nov. 2015. <http://www.businessinsider.com/mounting-inventory-at-macys-is-ringing-warning-bells-at-department-stores-2015-11>.

Snapchat’s new update. Source

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Do rainbows spewing out of mouths appeal to you? Tweets have fired everywhere about the new filters on Snapchat.

Snapchat, the popular social media photo hub is expecting to generate a whopping 100 million dollars of revenue this year. One may wonder, “How did this start up company even get here?” Their strategic ad placement has contributed largely to incoming revenue. They have constantly revamped their app through updates that include new filters, stories, and events that occur around the world in real time. Recently they have also put a fee on replaying snaps.

Through my analysis, I believe that Snapchat will continue to expand as fast as they are now. The start up’s platform has an innovative team that is constantly trying to look into the minds of customers. I’ve noticed how other social media platforms like Vine have flat-lined and lost a significant number of users almost as quickly as they started. I wonder what would happen if Snapchat used their app as a service for businesses to promote their events and share information. BuzzFeed has revealed where they have attracted many of their viewers—Snapchat! I admire their strategy of advertising and continually finding quirks to their app that will attract consumers which applies Rita McGrath’s tool of constantly changing strategies.

Snapchat’s annually increasing revenue is definitely a story that I will be following.

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References:

1. “10 Things You Need To Know About Snapchat.” The Guardian, n.d. Web. 2 Oct. 2015. <http://www.theguardian.com/technology/2013/nov/13/snapchat-app-sexting-lawsuits-valuation>.
2. Kosoff, Maya. “Snapchat Is on Track to Generate $100 Million in Revenue.” Business Insider. Business Insider, Inc, 01 Oct. 2015. Web. 03 Oct. 2015. <http://www.businessinsider.com/snapchat-is-on-track-to-generate-100-million-in-revenue-2015-10>.
3. Kosoff, Maya. “Snapchat Is Reportedly Generating $50 Million in Revenue This Year.” Business Insider. Business Insider, Inc, 31 July 2015. Web. 03 Oct. 2015. <http://www.businessinsider.com/snapchat-said-to-be-generating-50-million-in-revenue-this-year-2015-7>.
4. McAlone, Nathan. “Snapchat Provides a Firehose of Readers to BuzzFeed.” Business Insider. Business Insider, Inc, 16 Sept. 2015. Web. 03 Oct. 2015. <http://www.businessinsider.com/buzzfeed-gets-21-of-its-traffic-from-snapchat-2015-9>.
5. Shontell, Alyson. “Snapchat Generated Only $3.1 Million Last Year.” Business Insider. Business Insider, Inc, 19 Aug. 2015. Web. 03 Oct. 2015. <http://www.businessinsider.com/snapchat-only-generated-31-million-last-year-2015-8>.
6. “Snapchat Now Charges If You Want to Replay Snaps.” Wired.com. Conde Nast Digital, n.d. Web. 03 Oct. 2015. <http://www.wired.com/2015/09/snapchat-replay-paid/>.

Tesla’s unique differentiation has singled the company out like a sore thumb. As a rapidly growing company in the emerging market of electric, sustainable cars, Tesla has managed to create itself a top-notch brand. Customization allows for consumers to find little to no substitutes; their models encompass safety, sustainability, style, service, and speed exceptionally.

Tesla Model X Source

Tesla also differs from other car dealerships as they channel direct sales. Their partnership with companies like Daimler, aid in their vehicle programs and the development of their battery system. However, critics continue to weigh out Tesla’s future. Currently, there are a limited amount of models being sold due to constrained manufacturing—conversely, plans of revamping their production will enable them to produce to their full capacity.

Tesla Logo Source

I believe Tesla is on the right path to sculpting sustainable transportation. Their values of creating sustainable and safe transportation is extremely attractive to consumers. In my opinion, a company that pushes its boundaries through constant technological advancements and improves its customer experience will go far in the long run. (Or shall I say “drive”)? This does not guarantee an easy road in their future. As demand for sustainability increases, competition will increase as well.

As the saying goes, “It’s not about the destination. It’s about the journey (in your Tesla) along the way.”

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References:

1. “Blog.” Strategic Partnership: Daimler Acquires Stake in Tesla. N.p., n.d. Web. 02 Oct. 2015. <http://www.teslamotors.com/en_CA/blog/strategic-partnership-daimler-acquires-stake-tesla>.
2. “Meet Model X.” Model X. N.p., n.d. Web. 02 Oct. 2015. <http://www.teslamotors.com/modelx>.
3. McDonald, Michael. “Tesla’s Profit Margin Might Be about to Skyrocket.” Business Insider. Business Insider, Inc, 01 Oct. 2015. Web. 02 Oct. 2015. <http://www.businessinsider.com/tesla-profit-margins-about-to-skyrocket-2015-10>.
4. Orwig, Jessica. “We Used Physics to Show What It’s like to Take Tesla’s Newest Car for a Spin.” Business Insider. Business Insider, Inc, 01 Oct. 2015. Web. 02 Oct. 2015. <http://www.businessinsider.com/science-explains-why-tesla-model-x-is-great-2015-9>.
5. “Tesla’s Model X Falcon Wing Door Design Is an Engineering Marvel.” Tesla’s Model X Falcon Wing Door Design Is an Engineering Marvel. N.p., n.d. Web. 02 Oct. 2015. <https://www.yahoo.com/tech/s/tesla-model-x-falcon-wing-door-design-engineering-114507970.html>.
6. “What Makes Tesla’s Business Model Different? (TSLA,GM).” Investopedia. N.p., 21 July 2015. Web. 02 Oct. 2015. <http://www.investopedia.com/articles/active-trading/072115/what-makes-teslas-business-model-different.asp>.

Kellogg’s is taking a big step by investing 450 million dollars to build an arm in Africa for a 50% stake in hopes of reaching a new target market. Many have asked the question: “Why is the company looking at this expansion in such a relatively diverse culture?”

Kellogg’s Logo.

The answer is simple: cereal is losing its appeal amongst North Americans. Sales and revenues for cereal-based companies in North America have decreased significantly. Consumers prefer less carbs, more protein, and hot breakfasts on the go due to busy schedules, fewer children, and increased health awareness.

Students in Africa learning about nutrition.

This expansion into other countries could mean increased revenue, lower costs, and fresh, new target audiences. Through my analysis, I believe that this is beneficial for the company. By targeting an audience of a different demographic, they can attract those in developing countries; who may appeal to the company’s sugary breakfast cereals. I do not believe that new revenue streams will be profitable in developed countries because the value of their brand is decreasing. I still wonder how far the company will go if they do not increase sales through this hefty bet and if the 450 million dollars is a gamble for the company.

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Sources:

1. Baer, Drake. “Americans Have Changed the Way They Eat Breakfast – and It’s Killing Kellogg’s.” Business Insider. Business Insider, Inc, 03 Mar. 2015. Web. 01 Oct. 2015. <http://www.businessinsider.com/slow-death-of-kelloggs-cereal-2015-3>.
2. “Creating Brands.” Kellogg Company. N.p., n.d. Web. 01 Oct. 2015. <http://www.kelloggcompany.com/en_US/brandportfolio.html>.
3. Lutz, Ashley. “3 Reasons Americans Are Abandoning Cereal.” Business Insider. Business Insider, Inc, 26 Feb. 2015. Web. 01 Oct. 2015. <http://www.businessinsider.com/3-reasons-americans-are-abandoning-cereal-2015-2>.
4. “Overview.” Kelloggs Corporate Responsibility. N.p., n.d. Web. 01 Oct. 2015. <http://crr.kelloggcompany.com/en_US/corporate-responsibility/overview/business-strategy.html>.
5. Reuters. “Kellogg Is Making a $450 Million Bet to Build a New Empire.” Business Insider. Business Insider, Inc, 15 Sept. 2015. Web. 01 Oct. 2015. <http://www.businessinsider.com/r-kellogg-to-spend-450-million-to-expand-in-africa-2015-9>.
6. “What Kelloggs’ Spread to Other African Countries Really Means – Ventures Africa.” Ventures Africa. N.p., 17 Sept. 2015. Web. 01 Oct. 2015. <http://venturesafrica.com/what-kelloggs-spread-to-other-african-countries-really-means/>

Photo Sources:

1. “Aspire Africa.” Aspire Africa. N.p., n.d. Web. 01 Oct. 2015. <http://aspire-africa.com/2015/09/15/kellogg-company-and-tolaram-announce-new-long-term-partnership-to-significantly-expand-presence-in-africa/>.
2. “How Are We Helping?” How Are We Helping? N.p., n.d. Web. 01 Oct. 2015. <http://chezmandn.weebly.com/how-are-we-helping.html>.

Twitter feeds have gone off the hook with posts about Nestle.

A unique view from a religious source.

The multi-product line company has been bottling water from several reserves in California while residents in the area are receiving rations due to the severe drought over this past year. There has been backlash as shown on social media.

Little do they know, Nestle claims they support water conservation education programs; to me, this is controversial. Nestle’s actions have a negative impact towards their brand reputation as they prove to be a company that bends core values to meet sales goals through unethical means.

I believe that when the nature of the company is more important than its brand and core values, it results in a tarnished reputation. I find it hard to see into the minds of decision makers at Nestle. They may have foreseen the criticism they would receive from their actions; yet still chose to pursue them. Financials aside, I wonder what Nestle’s reputation would be today if they completely stopped bottling water during the drought. After all, they have many other streams of revenue ranging from candy bars to baby formulas.

You don’t see angry tweets about chocolate bars being sold during the drought.

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References:

1. “About Us.” Nestle, n.d. Web. 16 Sept. 2015. <http://www.nestle.com/aboutus>.
2. Bacher, Dan. “Nestle Continues Stealing World’s Water During Drought.” MintPress News. Indy Media, 20 Mar. 2015. Web. 16 Sept. 2015. <http://www.mintpressnews.com/nestle-continues-stealing-worlds-water-during-drought/203544/>.
3. Brodwin, Erin. “People Are Furious That Nestle Is Still Bottling and Selling California’s Water in the Middle of the Drought.” Business Insider. Business Insider, Inc, 10 Apr. 2015. Web. 16 Sept. 2015. <http://www.businessinsider.com/nestle-is-bottling-water-from-california-2015-4>.
4. “This Bottled Water Company” SumOfUs. Sum Of Us, n.d. Web. 16 Sept. 2015. <http://action.sumofus.org/a/nestle-water-ontario/4/2/?sub=homepage>.