This article discusses the how Arc Initiative has helped a failing restaurant in Ethiopia. This is only one of the many cases where Arc Initiative has helped firms and entrepreneurs in Africa. However, a question to reflect on is…

“If  the United Nations was fully funded, why would we need the Arc or social enterprise?”

Source: https://media.licdn.com/mpr/mpr/jc/p/1/005/01d/3b0/05deca2.png

The question is a fair one, but the answer is simple. United Nations alone is simply not enough to help everyone in the entire world. Neither can they hire every single person who wants to help. Indeed, if United Nations were fully funded, they could have a huge impact upon the world, but they cannot do everything. Here we can discuss organizational structure.

In order to help everyone, the organizational structure of United Nations would need to be insanely large, and an organization such as this would be impossible to fully control. Therefore, other organizations, big or small, are required so that the chain of leadership will not grow too long, and more tasks can be done in an efficient manner.

There is no point in blaming United Nations for not fulfilling their job, because in this case it is not a matter of funds, but rather the task of managing a large enough organization that can help the entire world, which is, quite frankly, impossible.

The article here discusses Marks & Spencer and their decision to cooperate with CSR Company International. The aim of this business decision is to be more aware and involved in Corporate Social Responsibility by working towards a sustainable supply chain management.

Corporate Social Responsibility is an idea often glazed over by other firms, as most firms aim mainly for profit. However, by cooperating with CSR Company International, Marks & Spencer is able to better the company’s public image by being more ethical about the production of their products.

Source: http://www.claimspower.com/wp-content/uploads/Marks-Spencer-PPI1.jpg

Recently, the idea of Corporate Social Responsibility has been growing bigger, and the methods by which firms manage their factors of production become more and more important in the eye of the public. Although Marks & Spencer may have reduced their profits in the short-run with their aim towards a sustainable supply chain management, ultimately, it is a necessary decision that will prove to be beneficial in the long-run.

As social trends demand more importance upon business ethics, firms will have to be more aware of their own corporate social responsibility if they are to thrive in society.

Angela Liu’s blog mentions an article about CPI hoping to make a windowless airplane. Angela says that this upgrade “fulfills all social, environmental and economic aspects through the overall reduction of airplane fares, costs and emissions.”

Source: http://rack.1.mshcdn.com/media/ZgkyMDE0LzEwLzI4LzJjL0NQSWNhYmluLjZjMzNhLmpwZwpwCXRodW1iCTk1MHg1MzQjCmUJanBn/9f74c68c/18d/CPI-cabin.jpg

Indeed, she is right when she says that, but it seems to me that she has overlooked the huge competitive advantage CPI would gain from this. The mentioned article is a great example of taking a “consumer pain”, which is their desire to sit in the window-seat, and “relieve” them of this. It is a very customer-based competitive strategy where CPI not only reduces airplane fares, but also solves a customer’s problem in a much more creative way than the customers, or even the competitors, could have ever imagined.

If they can achieve this, they will surely gain a competitive edge in the market, increasing their market share and perhaps even changing the standards expected of a product/service from that industry. However, it is easy to “hope” to create a plane such as this, whilst in reality such a plane is not easy to create. The question that remains is whether such an idea can be turned into reality…

Yudan Liu’s blog brings up an interesting topic on the importance of customer-based design by reviewing the impact of Coke’s new customer-based strategy. Indeed, seeing my name on a coke bottle makes me want to buy it, as it adheres to a kind of personal feeling, and this feeling the new design instills in its customers has boosted sales “for the first time in a decade.”

Source: http://scontent-a.cdninstagram.com/hphotos-xaf1/t51.2885-15/1799682_358755310960167_1437984351_a.jpg

Right now, competition in the market is high, and in any market, firms will have to consider using transient advantage to increase or even maintain their market share. More and more, the strategy grows customer-specific, and we see that any original idea that appeals to customers can boost sales by a large volume.

As a commerce undergraduate, the prospect of transient advantage excites me with its endless prospects yet scares me with the level of rivalry and difficulty I will eventually have to face. However, for consumers, these competitive strategies can lead to benefits they could never have imagined. As a consumer, I eagerly look forward to what other new kinds of strategy firms will create to capture my attention…

Recently, a large concern in the world has been the deadly disease Ebola, and its effect is not only limited to people or governments, but to firms as well. Ebola presents itself as an unexpected external factor or problem that a company must adhere to within their Model Canvas. This article here states that both WestJet and FlyFrontier have made the appropriate changes to this external factor, such as requiring their employees to wear gloves and masks.

Source: http://assets.nydailynews.com/polopoly_fs/1.1975381.1413397266!/img/httpImage/image.jpg_gen/derivatives/article_970/aptopix-ebola-ohio.jpg

Ebola brings up many ethical issues within a business, such as how they should value and protect their employees or how the ethical expectations of the public will affect the business as a whole. Here, an external factor like Ebola can disrupt business plans, cancelling flights and creating loss of revenue. It can also threaten public image if appropriate measures are not taken, forcing firms to spend more money on employee welfare, money that could have otherwise been spent elsewhere.

Ebola is not the only kind of external factor. Linking to my previous blogs, environmental and cultural issues are also gradually increasing their impacts on business decisions. Running a firm in reality isn’t as simple as one would have thought in theory, as there can be so many external factors that can show up unexpectedly. A good company should be prepared for this and be able to react swiftly to any external changes in society.

According to this article I read, First Nation chiefs protest against a new dam being built as they are concerned about the environmental and cultural loss the demolition caused by the project would create.

This article is a prime example of how external factors such as First Nations and their concern for the environment/culture can affect a firm’s business model and disrupt their plans. Here, BC Hydro should have, and will have to, take into account not only their project-related costs, but also the public image of their project and how people might react to it.

Source: http://archemdis.files.wordpress.com/2011/11/saskatchewan-first-nations-protest.jpg

More and more organizations such as First Nations are appearing world-wide that support the protection of wildlife and aboriginal culture, and firms must be able to tackle these problems as external factors when making their business model. A good explanation or compensation will likely be required if they are ever to maintain a good public image and attain public approval of their activities. BC Hydro is currently on the losing-side for its dam project as they cannot supply a good reason for their project.

Ethical issues are slowly increasing its impact on companies. Does this mean that progress in the world… slows down progress for individual firms?

Recently, consumers have been more and more engrossed in online shopping and I know the convenience of it, being one of the online shoppers myself. However, these have led devastating blows to large pop music supplies like HMV now faces an uncertain future with their £36M loss, as an article from The Guardian states.

source: http://cdn2.thelineofbestfit.com/media/2013/01/hmv-store.jpg

An interesting blog gives their opinion of it, stating that small chains are more likely to survive because of their flexibility to add in more physical products like toys and other goods. And it is true, as he says, that people often go into HMV stores to browse through their CDs so they can go home and buy it online.

What can they do? I think HMV faces no other choice but to cater online shopping as well, and to rely heavily on this rather than expect CD sales from their stores. Not only that, but perhaps they should also consider selling more physical products like T-shirts and collectibles of certain bands, although I hear they are already starting to do this. Finally, a focus on more customer service may lure customers in to the physical shop for the shopping experience itself.

However, whether these tactics will work or not is still uncertain, as it may be a little too late for HMV…

Apple’s inventory levels have decreased significantly since Tim Cook, labelled an “operational genius”, became their CEO and started managing their supply chains. This is interesting because it shows how important operations can be towards the success of a business, especially in the case of Apple where their low turn-over rate meant less expenses and more cash to spend elsewhere. Unfortunately, this means more difficult competition for companies like Samsung, as Charmian mentions the ongoing rivalry between it and Apple, especially with its new product the iPhone 6 so recently out.

Source: http://www.activebeergeek.com/wp-content/uploads/2011/05/apple-products.jpg?w=300

A high inventory turnover rate can be a key factor for success, and this may be the concern of Sony, who seems to be struggling with the mobile phone market whilst competing against strong competition like Apple, just as Neysa mentions. Perhaps the only method left for them to close the gap is to find an “operational genius” for themselves, just as Apple had. Nevertheless, none can say how long Apple can maintain their low inventory turnover and overwhelming success, as their popular new iPhone 6 finds itself in the midst of much criticism.

reference: http://seekingalpha.com/article/2046823-apples-inventory-the-sum-of-all-fears

Source: http://blogs-images.forbes.com/deborahsweeney/files/2013/01/small-business-saturday.jpg

NBC News discusses the 5 issues that small businesses face in the year 2013. Every firm faces problems, especially small firms as they first enter the market. I have learned from my class prep 4 that there are several ways to identify these problems, such as using the fish bone diagram to identify the causes of a problem. In this case, we can put in what the bases of the problems are, such as health care, taxes and competition.

A good example of a small or failing business is in Candy Liu’s blog about Moblicity falling into bankruptcy, where they would need to find the cause of the problem and solve it by level of urgency if they ever want to recover. A contrary example would be from Shannon’s blog, where she talks about Apple as a prime example of success. Comparing these two blogs/articles, we can see that organization is a key factor in success or failure and the application of things like a fish-bone diagram can be vital in finding the root of a problem.

So what can a small firm like Moblicity do to achieve success and someday become as large and successful as Apple?

Reference: http://www.nbcnews.com/business/economy/5-issues-facing-small-businesses-2013-f1C7660251