My Blog

In one of the Comm101 lectures, we discussed about Zara’s success and the story behind it. And the reason for Zara’s triumph in the clothing industry is its moving-fast strategy.

Based on the article, “A Definition of Entrepreneurship,” it mentions that an entrepreneur is one who possesses characteristics found only in a few. Zara’s ability to produce their products and place them on shelves in such a small amount of time (approx. 2 weeks) and in an area with high cost of labor makes it unique, therefore, Zara is considered to be entrepreneurial.

According to Joseph Schumpeter’s definition of entrepreneurship, he emphasizes that innovation is key to wealth. Zara’s unique way of doing business, a new production method, qualifies it to be innovative and hence, it being entrepreneurial based on definition.

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Sources:

“EBSCOhost.” EBSCO Publishing Service Selection Page. Web. 07 Nov. 2011. <http://web.ebscohost.com/ehost/detail?vid=4&hid=105&sid=0153f02c-f699-4548-acd5-70c516c92107%40sessionmgr111&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&AN=22161327>.

“A Definition of Entrepreneurship and the Entrepreneur.” QuickMBA: Accounting, Business Law, Economics, Entrepreneurship, Finance, Management, Marketing, Operations, Statistics, Strategy. Web. 07 Nov. 2011. <http://www.quickmba.com/entre/definition/ >.

Don Cayo comments about having fewer writings published on paper in his blog, “Less and less published on paper in the new ‘eworld’.” He mentions that with the increasing number of articles, stories, news, and even books that are available online, paper manufacturers are greatly affected by this. Moreover, the new generation is moving towards ‘ereading.’

I don’t see this shifting to ‘ereading’ entirely bad. On the one hand, we have the paper manufacturers suffering, on the other, we use less paper which means less tress will be cut, and less deforestation will happen, therefore, helping save the Earth.

If we think deeper about the issue Don Cayo has presented, I think the ‘green thinkers’ are doing a very good job helping save Mother Earth. For the paper manufacturers, it is time they search for other business opportunities and hopefully they consider the environment in their decisions.

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Sources:

Cayo, Don. “Less and Less Published on Paper in the New Eworld | Vancouver Sun.” Blogs – Vancouver Sun. 31 Aug. 2011. Web. 05 Nov. 2011. < http://blogs.vancouversun.com/2011/08/31/less-and-less-published-on-paper-in-the-new-eworld/ >.

In response to Adelle Tepper’s question in her blog, “should the government limit the amount of caffeine an individual consumes,” I say that it should and it is. Caffeine is a drug and it is regulated under the Food and Drug Regulations.

I think a better way to impose this question is, “Should the government limit the amount of caffeine contained in energy boosters or drinks?”

According to Health Canada, the caffeine intake for an average adult is around 400mg/day. You might be thinking that it isn’t that bad since strong boosters contain about 200mg only. The problem with energy drinks is that they are easily available; anyone could buy them. I think it’s a good thing that the government controls the caffeine content in energy drinks, reducing them to 180mg. That way, it reduces health problems.

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Sources:

Tepper, Adelle. “Adelle Tepper.” UBC Blogs | Home. 6 Oct. 2011. Web. 28 Oct. 2011. < https://blogs.ubc.ca/adelletepper1/>.

“Caffeine in Foods.” Health Canada. 6 Oct. 2011. Web. 28 Oct. 2011. < http://www.hc-sc.gc.ca/fn-an/securit/addit/caf/food-caf-aliments-eng.php >.

Schmidt, Sarah. “Energy Shots Will Exceed Caffeine Cap for Drinks.” The Vancouver Sun. 8 Oct. 2011. Web. 28 Oct. 2011. < http://www.vancouversun.com/health/Energy+shots+will+exceed+caffeine+drinks/5523210/story.html >.

I came across Jaskaran Chauhan’s blog and was able to read the article about the increasing income inequality in Canada. Even if America has the highest magnitude of inequality among its 17 peers, Canada’s rate at which inequality increases is more alarming. According to the article, one way an economy can address this problem is by taxation. But taxation policies in developed countries are always against redistribution.

According to Jaskaran’s blog, he agrees and suggests that everybody has to think of everybody else’s welfare and not just theirs, and that the rich should learn how to share their wealth to the many people in need. This is an extremely idealistic stand. In reality, no one will ever want to share their wealth with others, let alone, be equal. Companies never stop proclaiming they are the best through striking and distracting ads we see or hear every day. It will take a while and a lot of stricter regulations for Canada to lower its Gini index.

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Sources:

Morrissy, John. “Gap between Rich and Poor Rising Faster in Canada than U.S.: Study.” The Vancouver Sun. 13 Sept. 2011. Web. 21 Oct. 2011. < http://www.vancouversun.com/business/between+rich+poor+rising+faster+Canada+than+Study/5394730/story.html >.

Chauhan, Jaskaran. “Ethics: Should We Share? | Jaskaran Chauhan’s Blog.” UBC Blogs | Home. 14 Sept. 2011. Web. 21 Oct. 2011. < https://blogs.ubc.ca/jaskaran/2011/09/14/ethics-should-we-share/ >.

There are six brands that are reported going back in business after a terrible downfall.

Lego dealt with its problem by reducing production and keeping its price reasonable. Doing this was a good idea when the recession came. Marvel dealt with its problem by making their comics into movies since there was a decline in comic readers in the current generation. Old Spice made a specific target approach and that turned out to be a successful move. Nintendo and Apple sought innovation while Volkswagen focused on reviving the old but catering to the new generation with its “new Beetle.”

These companies are able to do so because of the different tactics they applied. These tactics are some of the valuable ways to survive in a business. Innovation is risky but if market research is done rightly, it will boom a business just like what happened to Apple and Nintendo. Old Spice, Volkswagen, and Marvel focused on their target market: the younger generation. Working your ways within the company is also a good start just like how Lego handled their situation.

Source:

McIntyre, Douglas A., Michael B. Sauter, and Charles B. Stockdale. “Six Brands That Have Come Back From the Dead – 24/7 Wall St.” 24/7 Wall St. – Insightful Analysis and Commentary for U.S. and Global Equity Investors. 14 Oct. 2011. Web. 16 Oct. 2011. < http://247wallst.com/2011/10/14/eight-brands-that-have-come-back-from-the-dead/2/ >.

TR Auto Truck Plaza, an American truck stop located in Tennessee, was completed last July and ready to operate with 20 E-Dock units that supply heating and cooling and 10 PowrDock shorepower pedestals for drivers who don’t need HVAC¹ and is the state’s first electrification terminal. The stops are installed with technology that helps save money by reducing idling costs and helps save the environment from the harmful engine emissions when trucks are parked.²

After a few months in business, the company filed for bankruptcy. TR Auto Truck Plaza’s owner, Rick Lewis, was sued for not repaying its $2 million loan. The company’s debts was approximately $75,312.³  

Their idea of providing environmentally friendly services is a plus point for entering this business. They even differentiated themselves as the only truck stop in Tennessee that saves money and the environment. But how, with the right ingredients for a good business, would it fail tragically and could only survive such a short lifetime?

Maybe it was because of poor strategy and tactics. Yes, they were able to position themselves well but there was poor management. They may have failed to inform consumers. The idea of eco-friendliness may have been so overwhelming that they failed to attend to other aspects.

¹Heat, Ventilation, and Air-conditioning

²Greene, Tom. “EnviroDock, Inc Announces the Opening of Its New Truck Electrification Site at TR Auto Truck Plaza in Dandridge, TN – Yahoo! News.” Yahoo! News – Latest News & Headlines. PRWeb, 21 July 2011. Web. 09 Oct. 2011. < http://news.yahoo.com/envirodock-inc-announces-opening-truck-electrification-tr-auto-101710530.html >.

³Gee, Brandon. “E. Tenn. Truck Stop Got Stimulus Money despite Bankruptcy | The Tennessean | Tennessean.com.” The Tennessean | Nashville News, Community, Entertainment, Yellow Pages and Classifieds. Serving Nashville, Tennessee | Tennessean.com. The Tennessean, 3 Oct. 2011. Web. 9 Oct. 2011. < http://www.tennessean.com/article/20111003/NEWS0201/310020028/E-Tenn-truck-stop-got-stimulus-money-despite-bankruptcy >.

As everyday tasks become more and more complicated, there is definitely a need for technology’s help, right? One thing that keeps me thinking, though, is what actually came first, complicated tasks or the invention of a new technology? Could it be that at some point, technology no longer was the solution to the demands of our daily activities but actually became the cause of complication?

Technology has become so advanced that it has exceeded the capability of a normal human. Robots now are doing most of the jobs humans use to do because they are more efficient. We also have become so dependent on technology that machines and gadgets have become the extensions of our brain.

So the answer to the last question is yes, technology is hurting us but do these negative effects outweigh the numerous benefits we get from it? We have built a world that is so technology dependent that without it, life would be just impossible.

Source:

“What Are the Disadvantages of Technology Today.” The Q&A Wiki. Answers Corp. Web. 06 Oct. 2011. < http://wiki.answers.com/Q/What_are_the_disadvantages_of_technology_today >.

An increase in a country’s income is not always a good thing. It is my first time to encounter the term ‘Dutch Disease’ when I read an article in Vancouver Sun, “Canada’s resource harvesters need a lesson from Lougheed”.

Dutch disease is when the increase in revenues coming from natural resources meant stronger currency of a certain country. But when this happens, it may result in the neglect of operation in the manufacturing sector, therefore, an increase in the price of exports that will eventually affect other countries buying the goods and making it less competitive.

For me, this probably has something to do with the principle that people respond to incentives. When the government realizes that the benefits of natural resources are greater than any other sources of revenues, employees may be encouraged to shift to the natural resources sector, affecting the manufacturing industry. If natural resources were abused, the country will suffer a big crisis as these are limited resources and reviving the manufacturing sector is not as easy as how they were extinguished.

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Sources:

 Cayo, Don. “Canada’s Resource Harvesters Need a Lesson from Lougheed | Vancouver Sun Blogs.” Blogs – Vancouver Sun. 23 Sept. 2011. Web. 24 Sept. 2011. <http://blogs.vancouversun.com/2011/09/23/canadas-resource-harvesters-need-a-lesson-from-lougheed/ >.

Moffatt, Mike. “What Is Dutch Disease – Your Dutch Disease Questions Answered.” Economics at About.com. Web. 24 Sept. 2011. < http://economics.about.com/od/tradeexchangerates/f/dutch_disease.htm >.

Today, I read a few articles online and came across a similar situation among them: the problems businesses have in dealing with the government. One of the articles was a Philippine article, “ Financial Crisis? Welcome to my World, says Philippine Billionaire ” Enrique Razon, the top7 richest man in the Philippines who operates containers services, claimed, “Political risks are the biggest risks.” Another one was entitled, “ Why Government Can’t Run a Business: Politicians need headlines. Executives need profits. ” It discussed thoroughly the reasons why government intervention in businesses has bad side effects.

We have discussed before about the Russian Vodka issue and how the Russian government intervened. We also debated whether the government should or should not interfere in businesses. I can say that that, very much, depends on what your position is.  Businesses are usually the ones affected in a bad way by government decisions, which is why we hear a lot of news about companies complaining. The consumers, on the other hand,  are usually affected positively because the government is supposed to help the masses. But this is not true for all cases. There are situations wherein the government support businesses which sometimes affect consumers badly. This is very evident in corrupt governments where most of businesses are done under the table.

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Sources:

Montlake, Simon. “Financial Crisis? Welcome to My World, Says Philippine Billionaire – Forbes.” Information for the World’s Business Leaders – Forbes.com. Forbes.com, 15 Sept. 2011. Web. 17 Sept. 2011. < http://www.forbes.com/sites/simonmontlake/2011/09/15/financial-crisis-welcome-to-my-world-says-philippine-billionaire/?feed=rss_asia >.

Gordon, John Steele. “Why Government Can’t Run a Business – WSJ.com.” Business News, Finance News, World, Political & Sports News from The Wall Street Journal – Wsj.com. The Wall Street Journal, 21 May 2009. Web. 17 Sept. 2011. < http://online.wsj.com/article/SB124277530070436823.html >.

I’ve read this article entitled, “Money and the Meaning of Life: Why do brilliant people allow their hunger for money to cause their ruin?” It talked about several news such as Raj Rajaratnam’s conviction, David Sokol’s unforgivable acts and the movie, “Too Big to Fail.” All of them were about one trait that flows in most, if not all, of businessman’s veins. The trait that always says, “It is never enough.” The article talks about why people are unhappy even if they have a lot of money. It is simply because money, sometimes, does not create happiness. It is somewhat like depreciation where the two components are money and happiness. There will be a time that an increase in money will result in a decrease in happiness because of the urge of these businessmen to go further, to get more money. Some try to get more money in the right way but in the three cases that were mentioned in the article, the wrong path was taken.

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Sources:

Taylor, Bill. “Money and the Meaning of Life – Bill Taylor – Harvard Business Review.” HBR Blog Network – Harvard Business Review. Harvard Business Publishing, 17 May 2011. Web. 14 Sept. 2011. < http://blogs.hbr.org/taylor/2011/05/money_and_the_meaning_of_life.html >.

Hurtado, Patricia. “Rajaratnam Friend Goel’s Sentencing Postponed Until January – Bloomberg.” Bloomberg – Business & Financial News, Breaking News Headlines. Web. 19 Oct. 2011. < http://www.bloomberg.com/news/2011-10-19/rajaratnam-friend-goel-s-sentencing-postponed-until-jan-20.html >.

Bishop, Mac William. “David Sokol – The New York Times.” Times Topics – The New York Times. 3 May 2011. Web. 14 Sept. 2011. < http://topics.nytimes.com/top/reference/timestopics/people/s/david_l_sokol/index.html >.

“Too Big to Fail (TV 2011) – IMDb.” The Internet Movie Database (IMDb). Web. 14 Sept. 2011. < http://www.imdb.com/title/tt1742683/ >.