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Monthly Archives: November 2013

Friedman’s proof; not one simple recipe to make Popcorn.

When asked in a lecture of 100 first year university business students, “What do you want to do after you graduate?” the most selected answer was “I want to raise millions of dollars to start my own company.” Easy to say and think, however, the limitation in statistics; “75% of startups fail”. This is what limits students to develop this dream; fear of failure.

 Famous in a day; Ryan Friedman, a 24 year-old developer with his social networking start-up App, Popcorn. Don’t over think it, Ryan is an individual who set up his own business with his own financial risks in desire of profits. Regardless of failing 3 times with unsuccessful apps, no faith or motivation was lost.

 

 

Controversy comes to mind when reviewing Ryan’s strategy which is not structured (very open); find an idea that has potential in the market (communication), aim the idea to certain market segments (university students) and take the leap of faith, not allowing failure to be an option.

 

Start-ups however, when learnt at university, claimed to need 5 essential factors; purposeful vision, moral compass, business model, process and big market.  Then how did Ryan successfully gain 1000 users in a day and create this successful app “Popcorn”, without the use of a business model?

Motivation, passion & determination

Today’s view of a start-up by teachers and students is too closed and text booked. There is not one specific recipe for a successful startup. Be like Ryan, never give up and learn by your mistakes, that is the key to a successful start up.

 

http://www.forbes.com/sites/alextaub/2013/11/14/how-popcorn-messaging-got-their-first-thousand-users-in-one-day/

Two angle view; cloud is invisible or cloud is full of water?

A world without technology?! Don’t even try to think about it..

Information technology is a tool that has revolutionized the world for individuals and more importantly, businesses. One of today’s hits is innovating the world with “the cloud”; a computing concept that creates a communication network through a large number of connected devices such as computers.

Let’s not drift away from what the main aim of a business is after all; profits. A cloud is a business technology management system (BTM); this brings together information and technology in order for the business to make decisions. Businesses, after all, are faced with hundreds of decisions on a regular basis and what BTM helps do is measure, experiment and replicate.

Why do businesses even need to sample new technologies like the cloud?

Simply in order to see if it is a profitable investment and how it can benefit the growth of the business.

Can the negative factors of small businesses investing in cloud technology affect their profit line?

Factors stated like “system complexity”, “loss of control” and “risk of unintended data disclosure”, are negative impacts that can be overcome by benefits like “cheaper security measures” and “resource concentration benefits”. These effects are extreme advantages for small businesses that are seeking to improved communication and overall growth in their respectable markets with customers and employees.

At the end of the day, small firms are normally in a perfectly competitive market. Just a slight benefit of lower costs or a more advanced technological system can allow them to gain a competitive advantage. With competitive advantage, businesses decisions of either increasing sales by lowering price or leaving it at initial price will both benefit a business with profitability.

 

http://www.forbes.com/sites/ericbasu/2013/11/12/best-practices-for-cloud-implementations/

Tchala; a businessman with a heart!

Olowo-n’djo Tchala; a social entrepreneur with a passion to boost Togo’s economy.

Think of the word “entrepreneur” and most people have the sole image of a profit driven manager that comes to mind. Tchala is different, he has used his entrepreneurial skills to make a huge social impact in the lives of Togo’s women whilst  “keeping it natural and keeping the ethics of fair trade”.

My person view about Tchala, is described by Reanne Derkson, “For certain types of people, living, breathing, eating, and experiencing their passion everyday is just something that seems to be hardwired into their systems”.

“Being able to start your own personal business which generates $9.5million in annual sales and  growth of 47% a year on the back of word of mouth only is an obvious sign of a successful entrepreneur. The inspiring thing about Tchala is that he managed to apply market-based strategies in order to pursuit social goals at the same time.

What helps a social entrepreneur succeed is passion and expertise. Tchala has managed to become a preferred buyer in Togo, due to the fact that his production of butter is helping 4 million women support their families and get out of poverty, pay for school uniforms and allow better educational in Togo.

Tchala is living proof that entrepreneurs with social goals have a higher chance of being successful. The reason for this is obvious: consumers are very sensitive and grateful to businesses that help society overcome its problems (like unemployment) and will respond in return by purchasing these companies’ products. Of course the product has to be of an equal quality to competitors but consumers would be prepared to pay 50 cents more for a product that contributes positively to their social environment.

 

http://www.forbes.com/sites/karstenstrauss/2013/10/13/making-profit-and-saving-lives-west-african-womens-gold/

http://blog.thechangeheroes.com/how-social-entrepreneurship-leads-to-purposeful-living/

Tech giants Google… Dominating a one-man race?

Demand for cheaper commercial pitches increased dramatically alongside the number of paid clicks, giving the company’s executives the obvious proof that advertisers are seeking the cheapest options. Despite this shift in advertisers’ behavior, the popularity of Google as a platform surged as well as its quarter earnings by an enormous 36% in the 2013’s third quarter. The advertisers’ demand for cheaper commercial pitches has proved immensely elastic! Decreases of 8% in average spend per advert lead to 26% increase in paid clicks; Google is laughing all the way to the bank.

Google model has proved an undoubted success with huge profits but what is amazing is the company’s capacity to feel and adapt to the changing demand in its market. Its direct market (the advertisers) loves the new formula; less outlay initially but more when its secondary market (the site user) click in vast numbers on these adverts. The advertisers know that their adverts are reaching its customers and willing to pay when they get evidence of that. Like a reward for performance! Incredibly clever and…effective!

This statement is in direct relation with Ashley Mui’s post about Google v/s Facebook as Ashley only stated the reasons of Google’s Ad success, my article supports her claims with the financial figures of revenue. Ashley equally agrees that Google succeeds in generating revenue due to the fact that Google’s advertisements are better when she says  “Google advertisements are catered to what users are searching for”.

There is no doubt that Google will find more solutions to adapting its offering to smaller screens of mobile devices and further please customers. Its interest in acquiring the highly successful instachat shows that the company is further targeting the mobile devices market. All great news for investors as they see the company’s prospects rise and rise and earnings shoot to the roof!

Why Google is Succeeding over Facebook

http://www.vancouversun.com/business/technology/Google+shares+surge+earnings+increase+cent/9049188/story.html

Success? Just be passionate about it.

Entrepreneurs are driven by various emotions and desires, essentially passion and money!

Ashish J.Thakkar is the typical role model of a passionate and hard working entrepreneur, seeking, as described by Professor Howard Stevenson, the “pursuit of opportunity beyond resources controlled”.

Ashish J.Thakkar, recently named as “World’s Young Entrepreneur of the Year”, is a pure motivator for business students. At Sauder School of Business, students are encouraged to take the leap of faith, spread their wings and take that exhilarating risk of becoming entrepreneurs during their years at Sauder. They are constantly reminded that; “as students, your opportunity cost is at its lowest”.

Take again the example of Thakkar, his leap of faith came when he was only 15 years of age in high school. He dropped out of school and, a few years later, his company is grossing annual revenues of more than $100 million.

One word to explain this? Passion!!!

Money is not the primary driver of this passion; mainly energy, sense of pure willingness, hard work and desire. It does not matter where you are, North America or Africa, the same characteristics are what’s needed.

And it all bodes well for the African countries. Often thought of as lacking business ethics, the change is evident and promising for African nations. “Africa is open for business” in what has been forecasted as the “century of Africa”. And don’t be surprised if many “Thakkar’s” turn out to be the “Richard Branson’s” of tomorrow!!!

 

http://www.forbes.com/sites/mfonobongnsehe/2013/11/12/african-millionaire-is-named-worlds-young-entrepreneur-of-the-year/

http://blogs.hbr.org/2013/01/what-is-entrepreneurship/

Coca-Cola & Ford, driving in the same bottle?

Car seats made of Coke’s bottles… What will they think of next?

Millenials represent the consumer purchasing power of tomorrow. And they are more environmentally aware than their parents.

How do you please them?

Ford had a great idea. Make its car seats out of Coke bottles! Gone are the traditional glass bottles. Let’s have a sustainable alternative. Why not use Pet resin, with its plant extracts, and the PlantBottle technology Coke has turned to in packaging its products?

Surely profits is not the sole motivator for this action?

Ford and Coca-Cola have taken a different path from competitors, changed their production methods to use recyclable materials that come from plant extracts and aimed for a triple “whammy” to their bottom line; social, environmental and economic benefits. No doubt profits will follow as their consumers won’t remain insensitive to their commitment to the future generations and general  contribution and care of society.

This article is supporting evidence of what was said in Christian Borgen’s blog,  “The world is constantly becoming more environment aware… companies are following the trend with continuous improvement with regards to sustainability.”

However, for all we know, this could simply be a strategic move that Ford and Coke are putting forward to simply boost demand and therefore profits. James Epstein-Reeves simply reckons that one of the main reasons why companies like Ford embrace CSR is in order to benefit from cost savings.

Ford’s intend to use “customer feedback” in order to see if this development satisfies customers needs and wants.  The overall aim of corporate social responsibility and sustainability is to impose a positive environmental change for the benefit of the people; however, firms are taking over the consumer’s perception in order to benefit themselves from lower costs, higher demands and higher profits.

Could we soon see cars running on Coca Cola? Don’t bet against it if it makes “sustainable” sense…

 

http://www.forbes.com/sites/dalebuss/2013/11/15/ford-coke-have-better-idea-car-seats-made-of-plantbottles/

http://www.forbes.com/sites/csr/2012/02/21/six-reasons-companies-should-embrace-csr/

Present Needs vs. Future Sustainability; the Triple Bottom Line

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