Emily Eden's Blog

Coca-Cola has increased its advertising budget by $1 billion over the next three years. This budget increase is a response to external threats such as concerns of obesity and artificial sweeteners, which are contributing to the company’s decrease in sales.

After a decade long decline in the number of Coke sales in the US, Coca-Cola launched its “Share A Coke” campaign. By replacing the famous Coca-Cola logo on its bottles and cans with different names of individuals the company hoped to re-engage consumers. The aim of the campaign was to get consumers to buy the personalized bottles for friends and family members, not just themselves. The campaign has already been a huge success as sales in the US alone have increased by more than 2%.

The demand for the personalized bottles has been overwhelming, and some individuals admit to spending months searching for a bottle with their name on it. Dean Crutchfield, an independent branding consultant states, “A Coke can or bottle is the most iconic design in the world and the fact you can impact that with your name has a huge curiosity and wow factor”.

The “Share A Coke” campaign demonstrates how impactful a company’s marketing technique can be on its sales. With one major marketing campaign Coca-Cola has been able to reverse its decreasing sales pattern.

Sources:

http://online.wsj.com/articles/share-a-coke-credited-with-a-pop-in-sales-1411661519

Media Sources:

http://www.iab-community.be/cases/share-a-coke-2/

http://www.brandsynario.com/news/cocacola-brings-global-share-a-coke-campaign-to-pakistan-in-ramadan

English Businessman, investor, and founder of Virgin Group, Richard Branson is a firm believer in empowering employees – not ruling over them. In his recent blog post, Richard Branson discuses his decision to give unlimited leave to his employees. Branson is testing this new unlimited leave policy with his employees at Virgin Management. By giving employees the ability to take longer holidays Branson hopes that they will fulfill their objectives efficiently, instead of fulfilling a time quota. With the introduction of this new policy Branson is demonstrating his belief that “companies should give their teams freedom to make their own decisions and express themselves”.

This new policy that Virgin is introducing is very different from the strict holiday leaves that many other companies offer to their employees. However, this policy may be more effective. Employees often feel ‘controlled’ by company rules and policies. By giving employees the ability to make their own decisions they feel valued and trusted by the company. Most employees will enjoy their job more, choose to work efficiently, and be loyal to the company, given these opportunities. Therefore, I believe that Richard Branson’s new unlimited leave policy is one that more companies should consider.

Sources:

http://www.virgin.com/richard-branson/empower-your-employees-dont-rule-over-them

Media Source:

http://alexlovellsblog.blogspot.ca/2010/10/sir-richard-branson-six.html

In Alexandra Skarsgard’s blog she writes about the new approach Harper Collins has taken towards maintaining its sales channels. The simplicity of purchasing books through online companies such as Amazon, eBay and Alibaba creates an advantage for consumers. However, for companies such as Harper Collins, there are risks associated with relying on such companies. For this reason Harper Collins has decided to sell directly to customers through their own website.

Similar to Harper Collins, HBO has recently decided to launch their own streaming service, providing an outlet for which customers can watch HBO shows without having to pay for cable packages. This strategy targets the 10 million people in the US that have internet connection but no pay-television service. As companies such as Netflix, Amazon and Hulu have been increasing in popularity it has become easier for consumers to stop paying for rising TV bills and instead stream shows online. With the development of these sites, it is no surprise that HBO has decided to stream their own shows online, potentially creating millions of dollars in additional revenue for the company.

By providing to their consumers directly, both Harper Collins and HBO are creating the potential to expand their target audience. As advances in technology continue, it will likely become more common for companies to follow in their footsteps. In the meantime, many companies will stand by and observe the success this strategy brings to Harper Collins and HBO, before deciding on implementing it themselves.

Sources:

https://blogs.ubc.ca/alexandraskarsgard/2014/10/05/going-the-distance/

http://online.wsj.com/articles/hbo-to-launch-standalone-streaming-service-1413385733

Media Source:

http://hbowatch.com/watch-hbo-online-for-free-with-hbogo/

As environmental awareness has increased, the focus on biomass energy production has also increased. The most popular forms of renewable energy sources are the sun and wind. However, there has recently been an increased interest in the use of wood pellets for biomass energy. As the global demand for wood-pellets is expected to double in the next few years companies such as BC’s Canfor Corp. have been investing into the market by constructing new pellet mills.

Using wood pellets for biomass energy is sustainable as they are composed of sawdust and wood waste. Forestry companies in the interior of BC already direct almost all of their sawdust and wood waste into pellet production. Not only does this production benefit the company as they are able to make revenue off of materials that would have otherwise gone to waste, but global communities also benefit, as they are able increase their renewable energy use. Currently, Europe and Asia are scrambling to convert to wood pellet fuels in order to meet their greenhouse-gas emission reduction targets. As companies such as Canfor Corp. invest into building additional pellet mills they are able to better supply this demand and convert more of their waste into sustainable energy. This proves that the new trend of using wood-pellets for fuel not only makes BC’s forestry industry a bigger business but also gives many BC forestry companies the opportunity to create shared value.

Source:

http://www.vancouversun.com/business/resources/Global+push+power+makes+wood+waste+bigger+business/10332856/story.html

In Robert Murphy’s blog post he discusses Goldcorp’s need to create good relationships in the communities that they are involved. The Chilean Supreme Court has recently ordered Goldcorp to halt the development of the El Morro mine, on the basis of the appeal filed by the Diaguita community that the mine would pollute a nearby river. In order to receive an environmental permit that would allow the mine to be built, Goldcorp must undergo consultations.

Earlier in the year I wrote a blog post on the controversial Barrick Gold Corp. mine in Tanzania. Similar to Goldcorp, Barrick Gold Corp. was undergoing a battle with a community which one of its mines was located. However, Barrick did not appear to be concerned with their relationships in the community, but focused on making profits. The difference in Goldcorp’s view is striking, as a company spokesperson stated that Goldcorp is “committed to open and transparent dialogue with its stakeholders and to responsible practices in accordance with the highest applicable health, safety and environmental standards”.

The halt ordered on the El Morro mine shows that mining companies will not be able to continue practices easily without considering all stakeholders. As Goldcorp begins consultations and hopes to develop a relationship with the Diaguita community, other companies such as Barrick Gold Corp. should emulate this. I agree with Robert as he states in his blog that building good relationships will ensure a sustainable future for these companies.

Sources:

https://blogs.ubc.ca/robertmurphy/2014/10/27/chile-supreme-court-orders-halt-to-mine/

http://www.bbc.com/news/world-latin-america-29531430

http://www.theglobeandmail.com/report-on-business/international-business/deadly-clashes-continue-at-african-barrick-gold-mine/article20216197/

Media Source:

http://www.mining.com/chilean-authorities-divided-over-goldcorps-3-9bn-el-morro-mine/

BC Hydro’s $8 billion Site C hydroelectric megaproject is a 1,100-megwatt hydroelectric generating station, which BC Hydro has proposed they build in northeastern British Columbia on the Peace River. This proposed area is home to many First Nations who are concerned about the impact that the 83 kilometers of flooding would cause to the farmland and wildlife of the area. Next week, a few BC First Nation chiefs are making their way to Ottawa to voice their disapproval of the project to Stephen Harper.

Both of the First Nations communities that would be affected by the dam have said that they would not oppose smaller wind, solar or geothermal powered projects in the area. However if Harper approves Site C, First Nation Chief Roland Wilson has stated that many aboriginal groups will challenge the project in the Federal Court of Canada.

This disagreement over the use of aboriginal land is not a first in British Columbia’s history, and will likely not be the last. I think it is important that we take the concerns of the First Nations seriously, and think about the effects that our decisions have on everyone. Many projects such as Site C are proposed for areas containing an abundance of wildlife that are easily destroyed. I believe that companies should not propose projects such as this to be developed in areas where the environment feels their impacts greatly, and that companies begin to look into greener, environmentally friendly innovative projects.

Sources:

http://www.vancouversun.com/news/First+Nation+chiefs+stage+Site+showdown/10215965/story.html

http://www.sierraclub.bc.ca/our-work/mining-energy/spotlights/review-panel-ask-bc-hydro-for-more-information-on-site-c/image

Patagonia has a business strategy that is quite unique. Unlike many clothing brands, the outdoor clothing company Patagonia is telling customers to think twice before purchasing their products. At first this seems like a strange business strategy, don’t companies want to make sales? Well, since launching their famous campaign, Patagonia has seen their profits almost triple.

Patagonia’s Common Thread Initiative promotes reducing, repairing, reusing, and recycling. This unique approach renounces over consumerism. Based on the increases in Patagonia sales since launching this strategy we can conclude that consumers are responding positively. Consumers feel that they can trust Patagonia and that the company truly values the environment.

Patagonia’s products are not cheap, however, the guarantee of quality and longevity of their products is making consumers consider quality versus quantity when shopping.

An advertisement in which the company states, “don’t buy this jacket” with a picture of their own product seems quite contradictory, but Patagonia is proving to the world that in order for a business to succeed they must create trust with the consumer and show that they have goals beyond creating profit.

Sources:

http://www.businessinsider.com/patagonia-business-strategy-2014-9

https://utstatic.a.cdnify.io/wp-content/uploads/2011/12/Patagonia.jpg

The debate of feminism and gender equality has been discussed for years. The common misconception of the word ‘feminism’ is that it is anti-men. However, by definition feminism is: “The belief that men and women should have equal rights and opportunities. It is the theory of the political, economic and social equality of the sexes”.

UN Women Goodwill Ambassador Emma Watson gave a speech last week discussing gender equality. She states that to end gender equality everyone needs to be involved and men need to join women as advocates for gender equality. Watson argues that gender equality is an issue for men as well. Men are imprisoned by gender stereotypes and boys are shaped by what they believe is the definition of a ‘man’. Watson believes that, “if men don’t have to be aggressive in order to be accepted women won’t feel compelled to be submissive. If men don’t have to control, women won’t have to be controlled”.

The HeForShe campaign, which Watson was speaking on behalf of, promotes men advocating for gender equality. Watson’s speech represents a milestone in the discussion of gender equality. For the first time, it has been promoted as not only an issue for women, but men as well. This discussion has major relevance in the business world, as the unequal treatment of women in the workplace has been brought into the light with the US Census Bureau’s report in 2003. They announced that the average woman makes 77.5 cents for every dollar the average man grosses.

HeForShe has potential to begin a revolution. If it succeeds, gender equality will become the norm, and the treatment of women around the globe and within the workplace will improve.

Sources:

http://www.unwomen.org/en/news/stories/2014/9/emma-watson-gender-equality-is-your-issue-too

http://www.heforshe.org

http://www.census.gov/newsroom/pdf/women_workforce_slides.pdf

https://www.facebook.com/heforshe

After passing the Federal Reserve’s annual stress test in March and earning approval to increase quarterly dividends, Bank of America admitted to accounting errors in April. The error was a miscalculation in losses from 2009, when the bank bought financial advising company Merrill Lynch. The error accounted for an overstatement in the amount of capital on the company’s balance sheet by $4 billion. This miscalculation was not noticed by Bank of America accountants or by external auditors PwC.

The Securities and Exchange Commission and Bank of America have reached an agreement this week, where Bank of America will pay $7.65 million to settle the federal charges. The S.E.C. announced that when constructing the penalty they did take the fact that the bank self-reported the incident and took its own steps to amend the error into consideration.

The penalty is not a large sum considering the magnitude of the error. However the humiliation that has been adopted by the bank as a result of the mistake will cause damage to the company for years. It can be noted that once an accounting error is made it is nearly impossible to rectify it and many companies will keep the error hidden, in hopes of maintaining the reputation of the company. In the case of Bank of America, self-reporting the mistake will not only help to correct the error more quickly, but also give stakeholders in the company a greater sense of trust in the bank. By self-reporting the error Bank of America has let it be known that they mean to work in a truthful and reputable manner.

Sources:

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11113623/Five-embarrassing-accounting-blunders.html

http://dealbook.nytimes.com/2014/09/29/bank-of-america-settles-s-e-c-case-on-4-billion-accounting-error/

http://www.picturesnew.com/bank-of-america.html

Barrick Gold Corporation has been under close examination by the public as questions of their business ethics have been brought up. The company has been receiving negative media attention, and the scrutiny only continues as Geoffrey York of The Globe and Mail reports “Deadly clashes continue at African Barrick gold mine”. The company has been trying to avoid dealing with the problem at hand and continuing with their usual mining in the area. Only after several reports and the creation of bad will has Barrick discussed the situation and announced solutions currently in progress. The unethical nature of the company has shocked many. Not only has the company been involved in the deaths of several civilians, but they have been more concerned with the running of their company and making profits for shareholders than the community in which they operate.

A company of good will is one that considers all of their stakeholders and cares about each of them. The community that a company involves itself in should be valued equally to all other stakeholders. Edward Freeman suggests in his stakeholder theory that a business that is not a good citizen and doesn’t pay attention to the quality of life in the community or the effects in which they have on civil society is a business in decline. If Barrick Gold wants to correct this problem they should take a step back to look at everyone that they affect, and consider all of the stakeholders in their company.

Sources:

http://business-humanrights.org/en/african-barrick-gold-lawsuit-re-tanzania

http://www.theglobeandmail.com/report-on-business/international-business/deadly-clashes-continue-at-african-barrick-gold-mine/article20216197/

https://www.youtube.com/embed/bIRUaLcvPe8