Category Archives: Uncategorized

Small business week Canada takes place every year to create a place to network, share ideas and learn. This year the theme was “back to basics- re-energizing your business.” I found this article particularly interesting as when I first came to Sauder I was surprised by the amount of attention they gave to networking even in our first year. However, over time I have realized that this is the backbone to the business industry: it’s more about who you know, how you can influence them, and how you can motivate them if you want to be an entrepreneur or in a managerial position. Three out of the 5 “top do’s” we to do with engagement with people and building strong and lasting relationships. (“The 5 Do’s and 5 Don’ts of Successful Businesses.”) This reminded me of the Sauder Alumni class when Nolan Watson said that most entrepreneurs are “day-time extroverts” meaning they are out going during the day and then after work they stick to themselves more. It is interesting to understand just how important connections are throughout your business career.

Most of the “top don’ts” were based on understanding your market and minimizing risk by diversifying. This is not surprising however it taps into a lot of what we have done in class already – the importance of management accounting, market research etc. Reading this article has in a way summed up a lot of what we have learned in COMM 101 so far this term, putting into perspective the most important areas of business and helping me understand what it will take to become a successful entrepreneur like many of the Sauder graduates.

“What Business Do’s and Don’ts Have Impacted Your Success? BDC Celebrates Small Business Week.” What Business Do’s and Don’ts Have Impacted Your Success? BDC Celebrates Small Business Week. Web. 10 Nov. 2014. 

“The 5 Do’s and 5 Don’ts of Successful Businesses.” BDC. Web. 10 Nov. 2014. <http://www.bdc.ca/EN/about/sme_research/Pages/five-dos-and-five-donts.aspx?ref=shorturl-dosanddonts>.

The Arc Initiative helps entrepreneurs understand and develop their businesses by teaching them business tools and knowledge while they teach the UBC students / alumni about their business and provide them with experience with small businesses.

The United Nations on the other hand looks towards finding peace between nations, maintaining international security, solving international problems etc. (“The UN in Brief.”) This is fantastic for many businesses as they strive to provide more stable nations politically, which can greatly hinder some firms, and of course this will lead to a greater economy – with more people getting educated, better health care etc.

However, Arc Initiative is an important tool for under-developed countries at the moment as it helps entrepreneurs with their businesses allowing them to succeed to a high degree in their city or town. It is important for two reasons; firstly, the world is better and more efficient when people are taught how to do things rather than given things. This is why there is such high debate about aid; it is only a very short term solution. Norman Borlaug (leader of the green revolution) proved this to be very true.

He went through a lot of Asia to teach developing countries efficient ways to farm using new technologies creating a much larger yield and thus profit for the farmers to expand. This is how I see the Arc Initiative- they give the entrepreneurs the tools and push them in the right direction- allowing them to strive in their business and hopefully teach their new skills to others in their company to create a more knowledgeable group of people who can potentially run their own businesses.

Overall, it is a very necessary program, regardless of the united nations involvement in the world.

“The UN in Brief.” UN News Center. UN. Web. 10 Nov. 2014. <http://www.un.org/Overview/uninbrief/about.shtml>

Some entrepreneurs start up a business with the goal of creating it big enough to sell off for a large lump sum, others create a business because they believe in their product and want to make it as big as possible. Of course, with acquisitions we can argue that the seller has the option to sell or not- however often these companies create such an appealing offer that it’s difficult to say no. For example, Apple spent $3 billion on Beats. (Welch, Chris) Is this bad for Beats as a business? They retained most of their managers, but now have a much larger parent company to help them in times of need and increase their customer base. This is the way I have thought about acquisitions before Adam pointed out that this may be ruining the innovation of a lot of large firms such as Apple, Google and Microsoft, and will potentially change the way businesses are run.

Small start-ups do not have the money for the most advanced technology (in most cases) or the time needed to create disruptive innovations (like Amazon in the book industry). It is usually left up to the larger more profitable companies to do this. So now they’ve shifted their focus on acquisitions, who’s going to innovate?

Welch, Chris. “Trent Reznor on His New Role at Apple: ‘it’s Everything I Asked For'”The Verge. Web. 3 Nov. 2014.

Our phones and computers don’t just help us connect with friends and family anymore- they help businesses convince us to come to them. With more and more people spending 24/7 on their electronic devices, it’s no wonder business are starting to put more information and purchase options online. However, the fast food industry seems the last to catch on with the new trend. Statistics show that loyalty programs influence a customers decision of where to eat up to 40% in 2012. (Wong, Venessa)

Finally, McDonalds seems to be stepping up their game after declining restaurant sales over the past few years. Offering a loyalty card for it’s subsidiary “McCafe,” perhaps testing out the waters. They’ve made it easy and simple to use – just tear it from the hot beverage drink you order, and the stickers (for each drink you buy) are also on the cups every time you order. After every 7 drinks, you get the eighth one free. (“McDonald’s Launches McCafé Loyalty Program.”) Will this increase McCafe’s sales? And will McDonalds end up creating a loyalty card for their frequent customers? 

I can see protests arising from loyalty cards for McDonalds food as it encourages people to eat unhealthy, a subject everyone seems very interested about lately. At the same time, people will definitely take advantage of this card- perhaps increasing McDonalds sales. We will have to wait and see..

Wong, Venessa. “McDonald’s Doesn’t Have a Loyalty Program, but It Could Use One.”Bloomberg Business Week. Bloomberg, 3 Nov. 2014. Web. 3 Nov. 2014.

“McDonald’s Launches McCafé Loyalty Program.” Marketing Magazine McDonalds Launches McCaf Loyalty Program Comments. Web. 3 Nov. 2014.

While scrolling through a multitude of different blog posts written by my class-mates, this article caught my eye. Not just an interesting read, but the way that Heidi linked both marketing and ethics into the subject was creative and alluring, so I looked into finding out more. I had never been on the Ben and Jerry’s website however after reading this article I did a quick google search and sure enough their cover page is streaming with corporate social responsibility, ethics, and marketing. You can learn how they do business, get information on the ingredients used- not just how they affect you personally but how they have affected the lives of others around the world. This got me thinking back to the reading on the chief sustainability officer- and the three stages of sustainability.

Compliance:

– Although Ben and Jerrys have gone through a few court cases such as the “Schweddy Ball” incident (Polis, C) and the “All natural” removal (Fulton, A) they have managed to stay within the laws of the industry.

Efficiency:

– As Heidi mentioned in her blog post, since Ben and Jerrys vow to not go the GMO route, as well as establishing fair trade with all of its suppliers, they have ensured customer loyalty and a strong, ethical brand image that will allow for larger revenue streams in the long run.

Innovation

– Ben and Jerrys have quite recently aided in the development of social metrics aimed at measuring and reporting the social sustainability of a company (11.1.06) which will help the world markets in the long run. This type of behaviour will mean they gain from insider knowledge in the criteria which may give them a head start in terms of competing, as well as being a morally correct thing to invest in.

11.1.06 – Ben & Jerry’s Pilots Social Footprint Method for Social Metrics. (n.d.).Ben & Jerry’s. Retrieved October 28, 2014, from http://www.sustainableorganizations.org/ben-and-jerrys.html

Fulton, A. (n.d.). Ben & Jerry’s Takes ‘All Natural’ Claims Off Ice Cream Labels. npr. Retrieved October 27, 2014, from http://www.npr.org/blogs/health/2010/09/27/130158014/ben-jerry-s-takes-all-natural-claims-off-ice-cream-labels

Polis, C. (2011, October 21). Supermarkets Give Ben & Jerry’s ‘Schweddy Balls’ The Cold Shoulder. The Huffington Post. Retrieved October 28, 2014, from http://www.huffingtonpost.com/2011/10/21/some-stores-freezing-out-_0_n_1023767.html

We have all heard about the ebola crisis, whether it be from reading an article, hearing it on the radio, discussing the issue with friends, or receiving and email asking to donate.

It’s rapidly becoming a world-wide issue that must be dealt with on a global scale. Governments are donating money to combat the disease however some nations are not donating as much as seems sociably acceptable for example Austria who is donating a mere £164, 143. On the other hand, some companies are donating an extraordinarily large amount such as Ikea who is donating £4.1 million. (Wheaton, Oliver). Although most news articles discuss the lack of donation from many european companies, the underlying message is Ikea has donated  £4.1 million.

This viral information must be doing wonders for Ikeas brand image. This is their largest donation in the history of the company, and is an excellent move from the corporate social responsibility department of the company. (O’Mahony, Paul). Ikea even has a whole non-profit sector of the business called “The Ikea Foundation” found at http://www.ikeafoundation.org/ This foundation has earned Ikea a well-known image of being a moral and ethical business which would make potential employees more willing to work there as well as potential consumers more likely to purchase Ikeas products. This relates to the “social” aspect of the triple based line as it helps Ikea connect with its customers in a moral way and it increases brand awareness. Although it is a large cost for Ikea, it could be seen as a long term investment into their brand image as in the future potential customers may be more likely to buy their products due to their high morality, with it becoming a larger and larger factor in todays world.

O’Mahony, Paul . “Ikea Foundation sends millions to fight Ebola.” – The Local. N.p., n.d. Web. 23 Oct. 2014. <http://www.thelocal.se/20140929/ikea-foundation-sends-millions-to-fight-ebola>.

Wheaton, Oliver. “IKEA has pledged more money to fight Ebola than 40 European countries.” Metro IKEA has pledged more money to fight Ebola than 40 Europeancountries Comments. N.p., n.d. Web. 23 Oct. 2014. <http://metro.co.uk/2014/10/23/ikea-have-pledged-more-money-to-fight-ebola-than-40-european-countries-4917916/>.

Value Proposition = Product/Service Attributes (functionality and quality and price and time) + Image + Relationship. (Davis, R.)

Are value propositions all that important? Will a company benefit from it’s employees understanding and being able to explain their value proposition? I believe so. Many companies today do not focus on their value propositions and hire thousands of staff who are unable to recall what the organization stands for. The value proposition is supposed to introduce stakeholders to what the outcome is of what you’re delivering. For example, Tesco, one of Englands leading supermarkets value proposition is “every little helps” as they strive to make everything as convenient as they can. (Evaluation Value Proposition) They have made this phrase their slogan and most customers, and all employees, know this phrase and understand the meaning behind it, and with that have went on to earn massive profits constantly being in the top 5 supermarkets in England.

I think this is very important for a company to ensure that both the employees and customers have a good understanding of the value proposition so they know what they are working towards or what they are supposed to receive. However, as mentioned in the article “Why your value propositon has no value” written by Colleen stanley, it is only as beneficial as you make it. Research shows that the number one challenge most organizations have is how to portray their value. (Stanley, C.)

Thus, businesses should start working on their value propositions making sure they portray it to the employees and the customers, and will reap the benefits in the long run. Employees will feel more motivated, and as though they have a reason to be working, whether they are a sales assistant or the CEO they will feel important in being part of the bigger picture.

Davis, R. (n.d.). The original value proposition — Washington Technology. The original value proposition — Washington Technology. Retrieved October 6, 2014, from http://washingtontechnology.com/articles/2014/10/02/insights-davis-value-proposition.aspx

Evaluating Value Proposition. (n.d.). MBA Marketing Management. Retrieved October 5, 2014, from http://www.ftms.edu.my/pdf/Download/PostgraduateStudent/MBA-Marketing%20Management%20lecture-5%20evaluating%20Value%20proposition.pdf

Stanley, C. (n.d.). Strategies: Why your value proposition has no value – Denver Business Journal. Denver Business Journal. Retrieved October 6, 2014, from http://www.bizjournals.com/denver/blog/broadway_17th/2014/09/strategies-why-your-value-proposition-has-no-value.html?page=all

Nowadays everyone has an iPhone, whether it be an old iPhone 3G or a new iPhone 6s. We communicate using apple apps such as snapchat, whatsapp and imessage. Finding a teenager with an andriod phone is uncommon and usually a surprise. So it is no wonder Samsung has been feeling the wrath of tough competition who control so much of the market base. Although currently Andriod actually still holds the vast majority of the market share for smartphones, the young up and coming customer base are mostly choosing the Applie iOS system instead, according to sources. (Edwards, J. )

Also, another worry for Samsung is how much money Apple is making. Although they do not own nearly as much as Android, Apple seems to keep rolling in profit from all areas. Figures have shown that “Apple made more money than all of its competitors combined, taking in 56 percent of the profit in the mobile device market.” (Bradley, T.)

So what is Samsung doing to increase their profits? They are doing what an respectable business would do- and are investing in what they do best. They plan to spend over $14.7 billion on a plantation in South Korea that could make memory chips or logic chips. They are currently the worlds largest supplier of memory chips and obviously hope to make money on this. Will this be a wise investment by Samsung, or will this leave them with an even worse profit margin signalling the end of the great era of Samsung? We will find out in the near future. (Samsung Electronics)

Bradley, T. (n.d.). Android Dominates Market Share, But Apple Makes All The Money. Forbes. Retrieved October 6, 2014, from http://www.forbes.com/sites/tonybradley/2013/11/15/android-dominates-market-share-but-apple-makes-all-the-money/

Edwards, J. (2014, May 31). The iPhone 6 Had Better Be Amazing And Cheap, Because Apple Is Losing The War To Android. Business Insider. Retrieved October 6, 2014, from http://www.businessinsider.com/iphone-v-android-market-share-2014-5

Samsung Electronics to invest 15.6tr won in Korean chip plant. (n.d.). South China Morning Post. Retrieved October 6, 2014, from http://www.scmp.com/business/companies/article/1610559/samsung-electronics-invest-156tr-won-korean-chip-plant

Japanese Autombile company Toyota Motor Corporation has recalled over 690’000 Tacoma pickup trucks in the US due to potential danger. Although currently there have been no accidents, over 1.69 million cars are expected to be thoroughly examined over the next while to ensure safety among it’s consumers. A small quantity of the cars under inspection date back to models of 2005-2006. Previously, in 2009-2010, over 10 million Corollas were recalled due to the same fault, a surge in the engine causing random accelerations.

What the largest damage to Toyotas brand image has been, relating to this incident, is the customer service they have provided following complaints. Many customers have been told that their driving skills are not on point, rather than admit to a fault in design. Although they have now realized their negligence to the issue and recalled multiple cars solving the problem with the acceleration, they now have a much larger and potentially more costly problem; the damage to their image.

The first thing that a future car owner will consider imperative is the safety of the vehicle itself. Once this criteria has been satisfied style, speed, engine quality, etc will become an issue. As Toyota has proven unsafe regarding it’s acceleration, consumers may be reluctant to purchase such a car. This would obviously cause a decrease in sales, revenue and thus profit for the business as well as potentially causing a decline in market share.

Overall, Toyota must seriously consider a strategy to keep customers enticed with their brand, as well as fix the acceleration problem to ensure this does not occur for a third time.

Plungis, J. (n.d.). Toyota could be facing backlash over Tacoma, Corolla issues. RSS 20. Retrieved September 30, 2014, from http://driving.ca/toyota/corolla/auto-news/news/toyota-could-be-facing-backlash-over-tacoma-corolla-issues

Dart Energy is a company who is currently fracking in Scotland to retract natural gas, specifically methane gas. This has been a huge ethical debate, getting the mayor of scotland involved due to so many protests including people starving themselves, tying themselves to fences, and refusing to come down from trees in areas they need to clear out. This is a prime example of a lack of corporate social responsibility as DartEnergy has not thought about the negative affects that this has on their company. Environmentalists will not choose DartEnergy as their energy source causing them to lose business. The constant news articles also gives the company a bad image which will cause a further decline in sales or potentially a ban on fracking in the area for an extended period of time which would obviously halt production and therefore sales. This example also relates to the stakeholder effect as many stakeholders (particularly stakeholders living in the areas that are being torn apart) are unhappy and therefore causing problems for the business. Also, employees are starting to leave, including the CEO, CFO and many admin workers (according to a source in the headquarters in Singapore) as they do not want to be associated with the business.

http://www.bbc.com/news/uk-scotland-tayside-central-26625385