It seems as though the stereotype for the average business student has been reassessed, according to this very agreeable article in The Globe and Mail. To many, when the word “business” is mentioned, they think of heartless businessmen or women with no conscience, with the sole purpose of making money. However, recent studies have shown that this is a complete misrepresentation of what it means to be a successful business person. In today’s business schools, students’ top concerns now involve social contribution and benefits.

Like we discussed in class, many “social entrepreneurs” are starting their business with not only profit in mind, but how their product or service will benefit others. Programs like UBC’s ARC Initiative promote social entrepreneurs like Tesfaye, who has a sustainable system of creating paper out of bananas. Personally, I believe this is the direction that business students should head towards. Not only learning ways to make a profit for a business in today’s competitive world, but doing so in a way that benefits not only the business, but the world that we live in.

http://www.theglobeandmail.com/report-on-business/careers/business-education/commerce-beyond-the-profit-motive/article15274613/

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Fellow Comm101 student Matt Anderson makes a very interesting point in his blog on an article that immediately caught my attention. In numerous instances, both in class and out, Lululemon has been depicted as a prime example of positive business practices. This article(globeandmail) and video however, reveals a surprising mentality that  Lululemon Founder  Chip Wilson has on the company’s products, and the customers that use them.

In the video, Wilson makes the outrageous statement that “some women’s bodies just ‘don’t work’ for their yoga pants”, implying that the fabrics and shape of their products weren’t designed for certain non-athletic physiques. This obviously sparked a huge controversy, and supporters of the brand are extremely upset, with legitimate reason to do so. If we look onto any Lululemon bag, we will see the motivational statements in the photo above. Lululemon’s core values have always been about making their customers to feel good about themselves, including happiness, positivity, and freedom. The statements that Wilson makes, however goes completely against the values and organization culture of the company. Although it is very upsetting to hear these words come out of  an inspiration of mine, I do believe it was an honest mistake, and that work needs to be done in management to address the issue of lost support.

http://www.bloomberg.com/video/lululemon-pants-don-t-work-for-some-women-founder-ATKjgs7jQduIr_ou1z8XYg.html

http://www.coffeestain.ca/wp-content/uploads/2012/09/lulu11.jpg

http://www.theglobeandmail.com/life/the-hot-button/why-lululemon-founder-believes-some-womens-bodies-dont-work-for-their-yoga-pants/article15345965/

An interesting article written by fellow classmate Nick Haggert caught my attention, as it involved a service that I use very often. Nick’s blog is very well written, and for the most part, our ideas point to the same direction, although there are discrepancies. Earlier this week, Snapchat rejected a buyout offer from Facebook at the Valuation of 3 billion dollars US, but how has this non-revenue based company developed so quickly and successfully in just a short period of time?

Snapchat is a prime example of successful entrepreneurship combined with an efficient use of information technology systems. Although the services provided by the company is more of a vitamin than a painkiller, people experience enjoyment when sending a message or “snap”. Even though the company does not charge users for its service, they have been able to monitor the current number of snaps sent and received. With this valuable information, they have knowledge of the different demographics that currently use their services. Opportunities that emerge from information as valuable as this allows other companies to advertise their products to a certain demographic. For example, the next X-men movie is currently sending short clips periodically that eventually tell a story that cannot be found elsewhere.

Companies like Facebook not only find this information extremely valuable, but also see these emerging companies as a threat. Young users in the teenage range are found to be using Facebook’s services less and less. With that being said, Snapchat, with no revenue, only believes that their company can continue growing into more than what they are today. There have been instances in the past where companies overvalued their future selves, but only time will tell where this simply successful company will go.

http://online.wsj.com/news/articles/SB10001424052702303789604579196023009484870

http://www.nytimes.com/2013/11/14/technology/rejecting-billions-snapchat-expects-a-better-offer.html?ref=business&_r=0

http://www.smartinsights.com/wp-content/uploads/2013/11/snapchat.jpg

In today’s world, the internet has become part of our everyday lives. We can communicate through email, post pictures, and even pay bills all at the click of a button. Needless to say, a lot of our personal and private information can be found over the internet, but recently however, the U.S. government has been under fire for the non-warranted surveillance of this information, and Google employees are outraged.

For a company like Google, a number of issues will surface as a result of this. Firstly, Google is a tech company with a global infrastructure, so  wherever their services are used, information will be sent onto a global network. If the U.S. government is able to gain access to this information, countries in other parts of the world will not feel safe using Google’s services. Brazil for example, is considering “data localization laws”, preventing Google from doing business in “one of the world’s most significant markets”.

Another issue that arises is the fact that this completely goes against not only Google’s undermining organizational culture, but business ethics in general. To the public, Google has always been known as a positive place to work, with lots of empowerment and intrinsic motivation for employees. When something their users realizes the information they give while using Google’s services have been under surveillance from the government, it takes a huge lash at both the trust they share, and the revenue streams of Google.

http://bits.blogs.nytimes.com/2013/11/14/google-employees-speak-out-about-government-spying/?hpw&rref=technology

http://images.electricpig.co.uk/wp-content/uploads/2011/01/google-hq-6.jpg

Creation. The fundamental of entrepreneurship is either taking something that’s been done already, or is completely new, and creating something out of it. It’s always interesting to see where technology takes us next, and with the world developing so quickly, it’s safe to say that entrepreneurs can find success in almost any industry. But what about an entrepreneur who finds a business in creating other entrepreneurs? This blog in the NY Times explores, Adeo Ressi, founder and CEO of the Found Institute, who has done just that. In just under 4 years, Ressi has mentored and helped developed over 1000 successful business, with a 90% survival rate. In doing so, 10,000 jobs have been created, and the company is on track for 20,000 by 2020, essentially “globalizing” Silicon Valley, from Johannesburg to New York.

It’s interesting to hear about an entrepreneur who stands out from those who already stand out. Like we have learned in our class, entrepreneurs do not think of good start-up ideas, but rather find something missing in our everyday lives, and creates something to address that. Ressi has done just that. The value proposition offered by this company cannot be found anywhere else, offering first hand training on how to specifically make your dream a reality.

http://www.nytimes.com/2013/11/14/business/smallbusiness/an-entrepreneur-who-manufactures-entrepreneurs.html?ref=smallbusiness

http://fi.co/

http://boss.blogs.nytimes.com/2013/11/13/is-this-the-way-to-teach-entrepreneurship/

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Mercedes Benz, Daimler’s motor vehicle division, once a king in the European automotive industry, is watching from the sidelines as BMW and Audi pull away from the crowd. Since 2010, both BMW and Audi have grown considerably in terms of sales and profit, and are only growing. While Mercedes is roughly at the same amount of shares as in 2006, BMW has doubled. Evidently in China, home to the world’s largest automotive market, BMW outsells Mercedes by 70%, and Audi 100%. With all of this, current CEO Dieter Zetsche still believes they will become the world’s number one premier carmaker by 2020.

If Mercedes is truly looking to reach this goal by 2020, they must address a number of reasons. Firstly, they must look at their brand positioning: what is the point of difference of the products they offer? At the moment, BMW and Audi are destroying them in every car class possible. Mercedes claims to be a high-class luxurious auto maker, but at the same time, the poor quality and reliability that they offer cannot justify the premium prices that they charge.

The second issue they must address is the expansion of their brand into China, the world’s leading automotive market. BMW and Audi have already settled nicely with local firms, but MB has yet to make a favourable deal. The company must set up a successful network of outlets to catch up to the already settled BMW and Audi.

Although their goal seems to be far fetched at the moment, with the right guidance and adjustments, the Daimler company may not have to stay in third for long.

http://www.economist.com/news/business/21589466-daimler-set-keep-chugging-down-autobahn-behind-bmw-and-audi-stuck-third

http://www.reuters.com/article/2013/08/30/us-china-autos-mercedes-idUSBRE97T02920130830

http://upload.wikimedia.org/wikipedia/commons/f/f8/Mercedes-Benz_S_350_CDI_BlueEFFICIENCY_4MATIC_%28W_221%2C_Facelift%29_%E2%80%93_Frontansicht_%281%29%2C_6._Mai_2011%2C_Velbert.jpg

The Motor City, Detroit, once the fourth biggest city in the United States, filed the largest municipal bankruptcy on July 18. This, in many ways, will be a huge benefit, considering that this once flourishing city has nearly 150,000 vacant homes and 700,000 people in 360 square kilometres. By declaring municipal bankruptcy, a new plan can be implemented for the beginning of a new start, but how would a plan like this work?

As of today, there are over 10,000 vacant homes in neighbourhoods that are unlikely to ever rebound. The plan that Detroit Future City has implemented is to vacate the rest of the citizens living in these “ghettos”, and tearing down the land completely to plant orchards and hardwood. In doing so, many benefits can be seen. Not only will the “streets” see reduced violence and crime rates, but just the growth of this urban landscape would attract more investors. Real estate investors might consider the city to be an adequate candidate for purchasing homes in, if they see recovery.

Although there are many skeptics about this plan, including many current residents of Detroit, there is no question whether this city needs a committed team to bring it back on its feet, and I believe the Future City’s project for restructure can be a successful one.

http://business.financialpost.com/2013/10/07/detroiters-living-amid-ruins-resist-moving-as-city-struggles-to-restructure/

In recent years, cellphone cameras have come on par, if not better, than many entry level SLRs. What does this mean for the older guys in the game? Companies like Nikon, who is known as one of the kings of photography, find themselves fighting a losing battle to the light and portable, yet superior camera technology in these smartphones as seen in this article.

Through a quick SWOT analysis, Nikon, who relies on camera sales for 78% of their revenue, shows an obvious weakness in the fact that their target is a very narrow market segment. Point-and-shoots are no longer sensible (smartphone camera capabilities are surpassing), and today’s fast-paced world, many would prefer to carry a smartphone with multiple functions. Along with the new “professional photography” accessories that Sony offers for their phone, there’s even less reason to purchase an SLR. However, a good way to approach this problem, I believe, would be an industry-wide differentiation strategy. There is no question that for professional photographers, SLRs must still be used, but which brand? There has not been many technological breakthroughs in the SLR industry in the past decade, and if Nikon were to develop a research program to set them apart from other brands, this would definitely give them the edge over another company like Canon, who are distracted with many other focuses. Successfully implementing this into a 5-year program would definitely allow Nikon to get on their feet, and return to its rightful place on its throne.

Over the past few years, the automotive industry’s engineers have made numerous technological breakthroughs, one being the modern and futuristic idea of electric vehicles. Now that the technology of these electric vehicles has been nearly perfected, its previous idealistic image is being re-evaluated. Are the electric cars overall good for our society, or does it only add more complications and poison to our environment?

Though one might believe that being “electric”, these new automobiles generally have a smaller carbon footprint, but according to the article linked, this is not the case. Electric vehicle sales has risen to 0.01% of total automotive sales in the last year, and manufacturing is becoming more and more popular. However, the true success of the electric car depends entirely on “how much we can clean up our electricity grid”. In the UK alone, 40% of electricity generated is by coal-powered plants., reducing the “green” advantage of the EVs (electric vehicles) by a considerable amount. It seems almost hypocritical, using extremely pollutive methods to produce a non-pollutive method of transportation. A good way to approach this problem would be to consider alternative energy providing sources, making the EV projects a “complete package”. This might include using solar, wind, or hydro powered plants, and eventually eliminating the use of coal-powered plants completely.

Another issue that should be considered is on the economical side of the situation. As of now, the world consumes over 85 million barrels of crude oil per day, a large portion of which goes into commercial and domestic transportation. If the world were to switch over to electric vehicles, the demand for oil would plummet, reducing profit for governments and oil companies who play a big role in the economy. With the excess supply of oil, mining and oil companies would have no choice but to sell at non-profit prices, eventually resulting in the loss of labour jobs and even bankruptcy.

Call me a sceptic, but with all of these negative impacts, it seems like the glorified electric vehicle is not an answer to our world’s questions, but merely a trade-off for whatever problems we have today.

http://www.bbc.co.uk/news/magazine-22001356

http://images.thecarconnection.com/med/2014-tesla-model-s_100436548_m.jpg

On a more positive and less serious note, with the revealing of the new iPhone 5s and 5c, we find ourselves, again, asking: Is it worth breaking our piggy banks again to upgrade from the older, “outdated” iPhone?

Let’s see what others have to say!

https://www.youtube.com/watch?v=oprUI6nupfc