Category: Uncategorized

After reading Jenny Lee’s Blog in The Vancouver Sun which emphasizes Arlene Dickinson’s business advice, I realized the truth that the simple phrase ‘slow down’. It is such a simple phrase that bears such great importance. The blog continues to say that one of the main questions that owners should asks is “Why and what’s the point?” Continuously throughout my Commerce 101 class, the students are expected to be able to support their answers and statements, whether in person or especially when writing a case recommendation. It is easy to make the mistake of saying a recommendation and thinking that it’s a good idea but not really examining the consequences and purpose. Therefore, it is not surprising that new entrepreneurs are faced with the same problems. However, the simple concepts and decision making are necessary throughout all aspects in business that professors strive to teach to students and which is additionally reinforced through other well-known business professionals advice. Reading the advice of Arlene Dickinson, made me realize that being able to make good decisions that are supported and that maintain purpose are absolutely key to success and are emphasized throughout my school and classes.

In the past year, Dollarama has reached a new record of $442-million, as stated in Luna Tsoi blog. Its revenue has increased 13.8%. Dollarama has transformed from the typical dollar store and has increased its revenue by offering many products, at different prices and not always just for one dollar. As people budget their money efficiently, dollar stores offer a cheaper alternative. For newer customers, having a slightly higher price also may give the illusion that the quality is a little better than if it was for only a dollar. Additionally, the higher prices “bring a higher net profit” as Luna Tsoi mentions. Only some of the products will increase to three dollars, but the true idea of a dollar store will remain, keeping most products at one dollar.  Although the company’s recent success brought in increased revenue, some investors are having concerned that the core value and strength of the dollar store will decrease. (http://www.cbc.ca/news/business/story/2012/06/13/dollarama-price-hike.html) If Dollarama stays with the target of a dollar store and doesn’t greatly increase their prices, they will maintain their success.

The ecoATM, as shown in this article, is an interesting and innovative idea. The company has identified the current market of cell phones increasing and wondered the question: what happens to the old phone or mp3 players(since most smartphones currently contain one)?  It captures an interesting angle of consumer wants. Instead of focusing on the consumer spending money, it focuses on the consumer getting money, instantly. Instead of keeping old technology sitting around the house, or throwing it away, people are presented with an eco-friendly convenient option. Furthermore, ecoATM is only a facilitator, doing the tedious work for the consumer by automatically assessing the quality and putting it in an electronic auction. This avoids the problem of ecoATM having an inventory of used phones-it avoids the hassle. However, ecoATM faces some competition through markets such as Ebay and Craiglist, as some consumers although they like the concept and easy accessibility, there have been concerns about the low price offers. (http://www.usatoday.com/story/news/nation/2012/10/07/phone-atms-cash-devices/1578487/)  Overall, the concept is very pleasing towards consumers but the low prices are turning consumers away. Perhaps an adjusting the scanning technology by adding in a comparison can assist in providing a more competitive price.

Rachel Warner’s blog post, Yoga wear creating a black market?!, brought up an interesting and different point. When thinking of black markets, as the title suggests, yoga wear isn’t the first thing that comes to mind. It is interesting to see that the main drive behind the black market is not price but the quality, or in this case lack of, customer service. I agree that this is an issue that should be addressed and dealt with because if it continues and becomes a large scale problem, a negative image of the company will form and therefore re-position the company in the consumers mind. Furthermore, as Rachel mentioned, the recent increase of competitors, such as Calvin Klein or the Gap’s new line, provides alternatives for the unsatisfied consumers. Also, the troubles Lululemon has with customer service can be an advantage to other company and they can create a more pleasing and return-policy friendly system. Of course there is always some criticism and unhappy customers in each company,  but Lululemon needs to monitor and be aware of similar concerns which could rise and create a larger issue.

For the farmers, the cocoa industry is a difficult and problematic. There is an uncertainty and lack of security due to the fluctuating world price. More importantly,due to the large trading chain, they only receive a fraction of profit,which then is mostly spent on tools and other needs for farming, leaving them with very little.(http://www.papapaa.org/ks2/info_2.htm) To diminish the large social problem of unfairly traded cocoa, a social enterprise named “Divine” was co-created by the Kuapa Kokoo with the support of other companies. Divine’s mission is to “increase power and representation within the market for the farmers, social, economic and political empowerment, enhance women’s participation in all its affairs [and] environmentally sustainable production processes.” (http://www.divinechocolate.com/default.aspx) The difference between Divine and other cocoa companies is, like all social enterprises, that the larger focus of Divine is social change not financial profits. Previously, cocoa farmers did not receive the fair wage and only a fraction, Divine’s farmers always receive the fair trade price and own shares. Demonstrating the true meaning of social enterprise, Divine not only gives fair wages and financial support, the farmers can obtain knowledge and broaden opportunities through owning part of the company, creating an overall better and effective community.

With the release of their new smartphone, the Galaxy S III, Samsung has taken an interesting and clever approach to their marketing and advertisement. “The next big thing is here” can be seen at the end of each commercial and on their ads. The commercials are played and promoted on YouTube in addition to television. In its commercial, it emphasizes its points of parity from other smartphones, such as the multiple shots and instant file transfers by just touching phones. Furthermore, Samsung took excellent advantage of the release date being in a similar time frame as their biggest competition, Apple, which released its newest IPhone, the IPhone 5. Samsung has entered a market which is highly populated by Apple products and to be successful, it must promote itself and show that it is just as good, if not better. In their commercials, Samsung uses the downfalls people face with waiting for the iPhone, as well as other subtle comparisons, and successfully connecting it to their slogan which informs consumers of the new and fresh product on the market. Samsung uses the perfect combination of advertising methods to produce an entertaining commercial.

https://www.youtube.com/watch?v=nf5-Prx19ZM

Entering H&M for the first time in my local shopping center, I was impressed by the new innovative clothing line that was being presented.  H&M encompasses the unique and daring styles of the runway with casual and wearable clothing. It has a great diversity of clothing: from regular t-shirts all the way to blazers and dresses. In addition to ladies clothing, H&M also provides clothing for men and children, creating affordable yet fashionable clothing. The affordability factor also attracts many consumers. The numerous amount of people in every store around Vancouver proves that is it a success on the west coast. However, on my trip to Europe, I noticed the large amount of H&M stores there as well. H&M is the perfect example of a company successfully expanding. It currently has multiple stores in 49 different countries around the world. (http://www.hm.com/ca/store-locator) In addition to its large diversity and global expansion, H&M has the promotion of several famous individuals, such as David Beckham or Lana Del Ray as endorsers of their new product lines. Overall, H&M has shown skill in many aspects of their business and therefore proving their right for success.

http://www.hm.com/ca/

http://articles.cnn.com/2008-05-26/us/gas.driving_1_gas-prices-gallon-of-regular-gas-gas-consumption?_s=PM:US

As gas prices go up, people try to drive less. How does this affect the car industry?  Several factors in the car business have changed in the past number of years. The effect of the rising gas prices has a positive effect on public transportation and the environment but for the car industry, it is a potential problem. Many of the small cars such as Toyota advertise for their high fuel efficiency. As the article explained, many families have decided to stay home with the family instead of driving to a campsite. Toyota perfectly advertises their Prius for this target consumer. https://www.youtube.com/user/ToyotaUSA?feature=CAQQwRs%3D. Although the smaller cars are able to adapt towards the new change in consumer needs, larger cars, such as Ford, are not as fuel efficient and with the gas prices “being near $4 a gallon”, as stated in the article, need to reconsider their target towards a non-metropolitan market which demands the large durable trucks. Overall the gas prices do have an effect, and each company must readjust.

http://www.vancouversun.com/business/industry/Canada+weeks+away+from+launching+cost+carrier+plans/7268277/story.html

As plane tickets increase regular income families cannot afford to travel as frequently as they desire. However,  Air Canada is offering flights with just the bare-minimum; adapting ideas similar to the already successful Ryan Air in Europe or JetStar in Asia. The cheaper flights will help families and even workers to get places cheaper but will this help Air Canada? Air Canada has been faced with many problems throughout the years that have been publicly displayed. (http://www.cbc.ca/news/canada/story/2012/03/23/f-air-canada.html) According to Air Canada, the new low cost carriers will bring many benefits: more flexibility for workers hours and a greater option of flights due to the larger size of cabins for passengers. Although everything seems great as Air Canada is trying to get-back-in-the-game, it still faces a strong competitor;  the current well known low-cost carrier in Canada, West Jet.  Air Canada must advertise their point of difference in order to attract consumers to switch to Air Canada’s new airline. Currently, there is a sense of excitement to see the new models which Air Canada is announcing but until then, Air Canada must promote their qualities and position them in the low-cost carrier market as well as reposition themselves in the travelers mind.

http://www.bbc.co.uk/news/world-18645010

http://www.bbc.co.uk/news/world-africa-18644870

Child labour has been an issue emphasized in societies and media. “215 million are in child labour as a matter of survival.” (Juan Somavia, ILO Director-General) Large corporations have been pressured to answer the location and process that their goods came from, yet many corporations can not. One of the largest chocolate companies, Nestle, is in the spotlight for the usage of child labour to receive cocoa. Revealed by media, Nestle must change their methods into fair trade, otherwise they will feel the pressure from competitions such as Cadbury, who’s famous chocolate bar, Dairymilk, now carries the “Fairtrade mark”.(http://www.guardian.co.uk/environment/2009/mar/04/cadbury-fair-trade-dairy-milk) Although the unethical issue of child labour strongly diminishes attractiveness of a company, a positive side is the awareness and desire that Nestle is showing by sending the Fair Labor Association to investigate the conditions of the workers throughout the cocoa’s path to their factories. Nestle has successfully changed attitudes from injustice to awareness. However, in 2001, companies, including Nestle, promised improved conditions for workers yet there was little change. Is “tackling child labour is a top priority [for Nestle]” as Jose Lopez, Nestle’s Executive VP of Operation says? Only time will tell about the authenticity of these ethics.