Cindy Fu

Nestle is creating shared value.

 Nestle is implementing CSV, through their products, markets, value chains and social/economic investment. Nestle has implemented CSV in many aspects of their company.

They have formed partnerships with The International Federation of Red Cross and Red Crescent Societies (IFRC) and United Nations Foundation – Every Woman Every Child Initiative (EWEC) and many more. Through these partnerships, tackling social, economic and environmental challenges are more impactful, providing financial support to help aid projects that in return changes current issues. The partnership is mutually beneficial hence ‘shared value’, because it enhances reputation while simultaneously recognizing and changing societal, economic and environmental challenges.

Nestle is responsibly sourcing, working with coffee farms, cocoa farms to improve their profitability which will in return also improve product quality.

        Creating shared value will slowly be adapted by other companies, replacing the concept of CSR, which did not seem to have a sustainable outcome. Some may use CSR as a way to receive sustainable awards, that may be unethical.

References:

“What is Creating Shared Value?.” http://www.nestle.com. N.p., n.d. Web. 18 Nov. 2013. <http://www.nestle.com/csv/what-is-csv>.

“Responsible sourcing.” http://www.nestle.com. N.p., n.d. Web. 18 Nov. 2013. <http://www.nestle.com/csv/responsible-sourcing>.

“January 2011.” Creating Shared Value. N.p., n.d. Web. 18 Nov. 2013. <http://hbr.org/2011/01/the-big-idea-creating-shared-value>.

Lee Graff expands her foundation company Cover FX, through serendipity.

Twitter recently had its IPO, moving from being a private company to a public one. What about small companies who don’t have capital to expand?

Cover FX,  a foundation cosmetics company landed an investment partner through serendipity. This is exactly what Sauder Alumni Brian Wong advised us about, to generate serendipity and by “creating your own luck…believe in people who understand how to build the right relationships and… their own capacity and propensity to create.”  

Cover FX targets a specific customer need, and their value proposition is to sell a high quality foundation to customers that want a natural look that is also good for the skin. With a clear and concise value proposition, they have a clear goal to achieve. Having a focused strategy,

The company’s business model canvas has actually been revised under different circumstances including supplying a sophisticated chain store rather than from being only available through a dermatologist. The revisions done to the business model canvas allows for growth, and is perfectly normal as learned from revising the business plan we created for a business. The customer strategy shifted when Cover FX built its online brand for awareness, widening the customer channel.

From a successful partnership with a private equity firm, that was unexpected, she now has a broader set of skills and financial power necessary for taking the company to the next level.

References:

“Twitter Goes Public.” Yahoo Finance. N.p., n.d. Web. 18 Nov. 2013. <http://finance.yahoo.com/blogs/breakout/watch-twitter-ipo-live-stream-coverage-nov-7-194141440.html>.

“Private investor takes cosmetics company to next levelAdd to ….” The Globe and Mail. N.p., n.d. Web. 18 Nov. 2013. <http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/going-global/private-investor-takes-cosmetics-company-to-next-level/article15387067/>.

“Vancitybuzz.” Vancity Buzz Vancouver Events News Food Lifestyle and More. N.p., n.d. Web. 18 Nov. 2013. <http://www.vancitybuzz.com/2012/07/vancity-entrepreneurs-brian-wong-kiips-it-real/>.

Nike’s corporate culture involves secrecy and mystery.

Many successful companies such as Apple, Google and Zappos have succeeded by creating a strong corporate culture. Nike depends on innovation, and being such an internationally known company with 44,000 employees, they continue to succeed because of its powerful culture that attracts employees who are loyal because of the sense of belonging to a goal-oriented organization.

If its employees were unsatisfied, Nike would fall apart because of its dependence on its workforce. A main component of Nike’s strong corporate culture comes from the secrecy of its company. Nike’s identity of having “the best-kept secrets” (Jackson) allows employees to feel important and key to the success of Nike. It makes them value all the work they put into Nike and how important it is to protect the company’s internal stories.

The Innovation Kitchen and the Winnebago are only a few of the company’s ‘secrets’ that keeps employees conscious of Nike’s history and story. These stories strengthen the corporate culture, as having a physical object will be a reminder of the huge secret that they take part in. There are other “secret” facilities like the ‘Zoo’, and employees internalize their own stories, that their work is so valuable it must be kept a secret.

References:

“Nike: The No. 1 Most Innovative Company Of 2013 | Fast Company | Business + Innovation.” Fast Company. N.p., n.d. Web. 18 Nov. 2013. <http://www.fastcompany.com/most-innovative-companies/2013/nike>.

“Strong Organizational Culture: How Nike Drives Innovation.” Corporate Culture Pros. N.p., n.d. Web. 18 Nov. 2013. <http://www.corporateculturepros.com/2013/06/strong-organizational-culture-how-nike-drives-innovation/>.

Chip Wilson makes a comment that does damages to Lululemon’s brand image.

Lululemon founder, Chip Wilson has damaged its brand by a comment that sparked up anger. During a Bloomberg TV interview, he said, “They don’t work for certain, some women’s bodies.” This insulted many women and began an online debate, where some sided with Chip Wilson and others feeling insulted, decided to not shop there anymore.

We can take a look at how this all happened by imagining a fishbone diagram. What caused all of this? What were the effects? It began with a seemingly harmless question on Bloomberg TV when Trish Regan asks for the reason behind the piling of the yoga pants and the sheerness causing the pants to become see-through.  Chip Wilson formulated an answer on the spot that went against its company’s value and culture. It went against all the inspiring quotes found on Lululemon’s eco-friendly bags. Most importantly, his answer did not support the core value of Lululemon. In the end this hurt his brand, and narrowed his customer segment.

This promted Lululemon to express a public apology that Justin Uyeno briefly touches upon. Chip Wilson is entitled to freedom of thought and speech, but he must take into account he represents the entire company. His public apology was arguably insincere, leaving Lululemon’s image tainted.

References:

“Cause and Effect Diagram | Fishbone Diagram (Kaoru Ishikawa).” Ishikawa’s Fishbone / Cause and Effect Diagram: Summary and Forum. N.p., n.d. Web. 18 Nov. 2013. <http://www.12manage.com/methods_ishikawa_cause_effect_diagram.html>.

Justin Uyeno’s Blog:

https://blogs.ubc.ca/justinuyeno/2013/11/10/lululemon-founder-contributes-to-the-companys-negative-publicity/

“Lululemon founder Chip Wilson’s yoga pant comments justified: CBCNews.ca readers – Your Community.” CBCnews. CBC/Radio Canada, n.d. Web. 18 Nov. 2013. <http://www.cbc.ca/newsblogs/yourcommunity/2013/11/lululemon-founder-chip-wilsons-yoga-pant-comments-justified-cbcnewsca-readers.html>.

“Lululemon founder Chip Wilson issues apology following thigh-rubbing pants comments.” CBSNews. CBS Interactive, 13 Nov. 2013. Web. 18 Nov. 2013. <http://www.cbsnews.com/8301-505263_162-57612083/lululemon-founder-chip-wilson-issues-apology-following-thigh-rubbing-pants-comments/>.

A key partnership creates shared value in the Canadian e-commerce market.

Sean Clark recognized the shoe market online in Canada was an opportunity. Assessing the shoe market in Canada using SWOT, Mr. Clark identified the weakness of an online shoe retailer for Canadians. Since Zappos had to cease Canadian shipping due to border crossing issues in 2011, there were no barriers to entry. The strength of starting an online shoe retailer in Canada was that it was less developed and competitive than in the United States. All in all this creates shared value for the Canadian online consuming market, where Canadians will purchase from a Canadian online retailer rather than a website that is US based.

Partnering with Clearly Contacts CEO Roger Hardy, has opened up doors for Sean Clark’s  new online footwear retailer ShoeMe. Clark’s key partner is Roger Hardy who has experience from expanding a small startup into a successful multi-continent retailer. Finding this partnership, and maintaining it will bring the much-needed guidance to start up ShoeMe.ca.

Mr. Clark decided on a focus strategy (differentiation)  in the narrow segment strategy similar to that of Clearly Contacts. He decided to focus on the domestic market after weighing the risks and identifying the strengths of his value proposition. His value proposition was to give Canadians an online shoe shopping experience similar to Zappos, with over 100 different shoe brands.

Will Mr. Clark create corporate culture similar to Zappos? Hiring only those who will be amiable, and a person that fits into the company’s culture. Corporate culture is extremely important, and can propel Mr.Clark’s online business.

References:

“Porter’s Generic Strategies.” Porter’s Generic Strategies. N.p., n.d. Web. 18 Nov. 2013. <http://www.quickmba.com/strategy/generic.shtml>.

“Tony Hsieh, Zappos, and the Art of Great Company Culture.” Tony Hsieh, Zappos, and the Art of Great Company Culture. N.p., n.d. Web. 18 Nov. 2013. <http://blog.kissmetrics.com/zappos-art-of-culture/>.

Gildan Activewear Inc. invests in brand recognition

Gildan Activewear Inc., has a low-cost strategy and is the manufacturer of blank T-shirts that are imprinted with logos, slogans and designs.  They are nearing its 30^th anniversary of incorporation and have a global workforce of almost 30,000 employees.

They are an established company but what more does the company want? What are its weaknesses? It seems as though the company is stagnant and the only way for growth, is to establish brand name recognition. Branding is what they have lacked all these years; they have failed to establish a brand in the minds of the consumers.

The importance of creating brand awareness has caused Gildan Activewear Inc. to spend $30 million for a huge ad push its name into their customer’s heads. Customers recognize and remember a brand not for what it sells but the overall brand built. They created an ad to be shown during Super Bowl XLVII, and are risking it for wider recognition. This marketing strategy goes against its cost leadership strategy.

Running a smaller scale marketing technique in a test market can project profitability. However, Gildan Activewear Inc. took a risk and invested its capital on a huge marketing campaign that may grow its company in the future.

References:

“Porter’s Generic Strategies.” Porter’s Generic Strategies. N.p., n.d. Web. 18 Nov. 2013. <http://www.quickmba.com/strategy/generic.shtml>.

MAROTTE, BERTRAND . “Blank T-shirt maker pins growth hopes on retail brandingAdd to ….” The Globe and Mail. N.p., n.d. Web. 18 Nov. 2013. <http://www.theglobeandmail.com/report-on-business/economy/manufacturing/blank-t-shirt-maker-pins-growth-hopes-on-retail-branding/article15479128/>.

“Can Gildan Sew Up Some Brand Recognition?.” 2014 Super Bowl Commercials Watch Laugh Share. N.p., n.d. Web. 18 Nov. 2013. <http://www.superbowl-commercials.org/18111.html>.

Japan Airlines has decided to switch and purchase its very first ever European manufacturer Airbus jets, instead of its traditional U.S. Boeing jets. This decision, made by the JAL on its own without any consultation from the government despite sinking into bankruptcy just three years ago. It only re-emerged through a government bailout.

This shows that competition can appear unexpectedly, even with a key partnership that you have built a relationship with for 50 years. It is of the companies’ best interest to do what will maximize efficiency. JAL switches to Airbus because it was well suited to their needs, but when the time comes, will the cost of training new pilots be too expensive for JAL, sending them to lose a big sum of money? The decision was made, and it definitely shocked US aircraft manufacturer Boeing, which must now look for a way to deal with the sudden lost. It is hard to forecast such decisions, but what should Boeing do? It could firstly re-invent its image by creating something positive to counteract the negativity around 787 jets.

Source:

“Japan Airlines chooses Airbus over Boeing for new jet order – Business – CBC News.” CBC.ca – Canadian News Sports Entertainment Kids Docs Radio TV. N.p., n.d. Web. 8 Oct. 2013. <http://www.cbc.ca/news/business/japan-airlines-chooses-airbus-over-boeing-for-new-jet-order-1.1928080>.

Twitter is preparing for its initial public offering, and to do so, Twitter is pushing hard to get itself into the TV advertising economy. Twitter has already made partnerships with big television content owners, MTV, NFL, CBS. This way, real-time clips are available on Twitter with a short ad right before. Twitter breaks out of its narrow revenue stream and broadens it by luring in potential investors with such ads that pitches to smartphones and tablets as well.

Initial public offering is when a private company becomes a public one and offers its stock to the general public. The preparation Twitter has arranged connects to the business model canvas in such a way that every aspect needs to be well planned in order for a successful IPO, as an example. Expanding niche-like revenue streams, thinking about possible key partnerships that will make the value proposition successful is basically what Twitter is doing right now.  The competition in the market also surfaces, as Facebook is threatened by the number of celebrity’s on Twitter and its unique hash tag system, in which Facebook adopted. Competition will always lead to innovation, and that is crucial for long-term success.

Will the TV ads embedded into clips be a success?

Source:

“Twitter IPO details raise questions over financials, bots – Business – CBC News.”CBC.ca – Canadian News Sports Entertainment Kids Docs Radio TV. N.p., n.d. Web. 8 Oct. 2013. <http://www.cbc.ca/news/business/twitter-ipo-details-raise-questions-over-financials-bots-1.1912936>.

Recently in the summer, Verizon Wireless, which is the second largest mobile network operator in the U.S, announced its interest in expanding their assets by entering the Canadian marketplace.  Right away, the big three wireless network providers in Canada told their customers that if Verizon were to enter the Canadian telecom industry, it would be costly, in a sense of lost jobs and unfairness. The big three lobbied that there should be the federal government should place a barrier to entry on this foreign company.

The truth is, Canadians “pay some of the highest prices for some of the worst telecom services in…world” (Chan) Allowing a foreign telecom company to enter the Canadian market will ensure enough competition so that the rates of The Big Three will be reasonable. Competition allows the consumer and sellers to meet at equilibrium, that will adjust the price accordingly, and both the consumers and sellers will be happy. The narrow mindset of Bell only cutting prices and putting a cap on additional charges on plans because of the said feedback from customers when they were instructed by CRTC is fairly misleading. (Laudrantaye, The Globe and Mail)

Sources:

LADURANTAYE, STEVE . “Bell to cut roaming fees by half – The Globe and Mail.” Home – The Globe and Mail. N.p., n.d. Web. 5 Oct. 2013. <http://www.theglobeandmail.com/report-on-business/bell-to-cut-roaming-fees-by-half/article14333517/>.

Read more about this here

Companies are being awarded for being sustainable and a ‘green’ brand, but how are you certain with the simple awarding process involving “completing a questionnaire and supplying supporting documents…”(Ethical awards: green wash or genuinely recognising sustainability? The Guardian) has actually committed in becoming both an ethical and sustainable company. Any company has the ability to go through these processes. Kellogg’s who is a recipient of such awards actually avoid any opportunity to talk about what they will be continuing to do to commit to long-term sustainability. It does not seem that companies have a genuine interest in becoming a brand that views social responsibility as a priority. It is not even a mere note on the company’s extensive agenda. The fact that such companies are claiming to be “green” in order to falsely lead the public in perceiving their brand has a positive effect on the environment is not ethical at all. Attaching the idea of being sustainable to a company will generally attract consumers as well as satisfy the current importance of being environmentally friendly. But again, is it fair to the consumers to claim such an award that you have not fully deserved?

Source: http://www.theguardian.com/sustainable-business/blog/ethical-awards-green-wash-sustainability