Monthly Archives: November 2014

United Nations and the Arc Initiative

474633_422425427784491_133401115_oSocial entrepreneurs are often faced with challenges that cannot be solved merely through financial aid from organisations such as the United Nations. The Arc Initiative at the University of British Columbia applies business skills learnt by students to help communities in developing countries. By bringing together students from the Sauder School of Business with entrepreneurs from places such as Ethiopia, the Arc Initiative contributes to a movement towards a socially secure community.

Such was the case with Salem’s Ethiopia, a craft boutique and social enterprise in Addis Ababa. Salem Kassahun, the owner, was faced with the challenge of making a decision between ramping up production and building on her current business model. With the help of the Arc Initiative she realised that shifting to a factory was out of the question. Kassahun solved her dilemma by following the Arc’s advice to reinvest some profit back into her business by adding another room for new women to work on her compound.

These entrepreneurs could easily receive non-business related aid from the fully funded United Nations. However, partnering with the Arc allows entrepreneurs to enhance their businesses through strategic advice. Even though the Arc is an organisation of a smaller scale, I believe it attains a better outcome through its sustainable approaches and its employment of social entrepreneurship.

Reference

Kroeker, Jeff. “Can Fair Trade Boutique Expand without Alienating Customers?” The Globe and Mail. Web. 10 Nov. 2014.

Starbucks Delivery Service: Shift towards a sedentary society

57042dc6-c644-4f4d-9457-a3de27d6c625Coffee is often linked to businessmen. However, coffee breaks are often regarded as a setback to productivity. Caffeine keeps workers focused, but leaving the office to get coffee wastes valuable work time. This troubling paradox is what encouraged Starbuck’s new proposal. As a way to gain competitive advantage, Starbucks is attempting to add delivery service, which would make it the first café chain to deliver. Starbucks would be the first in the market to do this, making it a disruptive innovator because the coffee chain will be creating a new market of delivery café chains.

The delivery service will be available through Starbucks Corp.’s mobile app, which illustrates a shift towards globalisation but also a shift towards a sedentary society. My analysis shows that the money made from the delivery will not compensate the delivery costs, such as the staff and transportation costs. I believe that even though this service brings an array of benefits, especially to businessmen, it has the potential to destroy the coffee shop culture: the free Wi-Fi, naming of the cups, and the overall ambiance. Therefore, it is not wise for Starbucks to fully develop a delivery service.

Reference

Wong, Venessa. “Your Boss Will Love the New Starbucks Delivery Service.”Bloomberg Business Week. Bloomberg, 31 Oct. 2014. Web. 10 Nov. 2014. 

What Makes Someone an Engaging Leader?

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In order to achieve organisational agility, innovation and growth it is necessary to combine profitability with employee engagement. According to Ken Oehler, Lorraine Stomski and Magdalena Kustra-Olszewska’s post on Harvard Business Review, this can be achieved through the guidance of an engaging leader. Engaging leaders throughout the ranks of the organisation are distinguished by their “formative early experiences, guiding beliefs and engaging behaviours”.  Research suggests that they are guided by their responsibility to serve their followers and prioritise human relationships while staying grounded and humble.

My analysis shows that by combining an engaging leader, a comfortable working environment, and a motivated set of employees, an organisation can attain success on the market. Tony Hsieh, the C.E.O of Zappos is a paragon of all the qualities that make an engaging leader. He truly believes in maintaining strong relationships with his employees and making sure all employees truly want to work for the company. For instance, Hsieh made sure all his employees were fully committed to the company by offering them $2,000 to quit. He also places a lot of importance on creating a comfortable and appealing environment for his employees. As a result, Zappos is known for its excellent customer service and has achieved profitability and employee engagement.

Reference

Oehler, Ken, Lorraine Stomski, and Magdalena Kustra-Olszewska. “What Makes Someone an Engaging Leader.” Harvard Business Review. Web. 10 Nov. 2014. 

 Jacobs, Alexandra. “Happy Feet – The New Yorker.” The New Yorker. Web. 10 Nov. 2014. 

Ello: You are not a product.

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Social media has taken over globally through increasingly popular networks. Regarding Alejandra Oviedo’s post on Ello: Recently, Facebook has been dealing with complications concerning users and “fake names”.  By appealing to a broader range of customers with the slogan “You are not a product,” Ello, an eight-week old social network, has received numerous requests in a very short time. The major reason why is because it is counteracting Facebook’s defects. Facebook booted drag performers for not using their “real names.” Performers’ protests triggered a request to Ello asking to use whatever names they wanted. People’s dissatisfaction with Facebook is what is propelling Ello to succeed. (Stone)

Furthermore, Ello is very responsive to customer complaints. The company modifies its own software according to customer preference. For instance, users write app ideas of features they are willing to pay for. Ello has been so prosperous due to its exclusivity, distinct vision and clear understanding of customer preference. Even though Ello will never reach Facebook’s standards, I believe it has a huge potential on the market. However, Ello’s purpose is not to have everyone join the network. In order to maintain its popularity, Ello must keep adding interesting effects with further appeals to innovation.

Reference:

Stone, Brad. “Ello CEO Slams Facebook: ‘An Ad Platform More Than a Social Network'”Bloomberg Business Week. Bloomberg, 30 Sept. 2014. Web. 5 Nov. 2014.