Social Entrepreneurship: Strengthening the Community through Business

The United Nations, the international organization targeting the issues of human rights and poverty, operates in a macro-environment that targets political, human rights, and poverty issues. However, due to the impact and political involvement UN holds, it is difficult for them to target anything “grass-root” related and their efforts may result in issues of diplomacy and produce negative results for certain demographics (Underwood).

However, the Arc Initiative is a prime example of social entrepreneurship that involves incorporating business strategies and efforts to stimulate local economic growth in developing portions of the world. Arc improves the economic well-being of a community while differentiating one’s business. It endeavours to teach local entrepreneurs the tools necessary to strengthen their own businesses (Kroeker).

As opposed to funding for issues impoverished communities, Arc aims to permanently improve the situation of struggling individuals. Sauder students also get the opportunity to apply learned concepts to pragmatic business situations, offering them a learning environment that also empowers the local community. The initiative differs from that of philanthropy, by educating entrepreneurs, who have the power to make changes in the community, to improve their business acumen and broaden the scope of their resources.

Works Cited

Kroeker, Jeff.  “In a crowded market, entrepreneur finds a sweet way to stand out.”  The Globe

and Mail. The Globe and Mail Inc., 11 Apr. 2014.  Web.  12 Nov. 2014.

<http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/going-

global/in-a-crowded-market-ethiopian-entrepreneur-finds-a-sweet-way-to-stand-out/article17912688/>.

 

Underwood, Brian.  “The U.N. – Irrelevant, Ineffective, and Immoral.”  The Mendenhall. 

The MendenHall, 17 June 2011.  Web.  12 Nov. 2014.

<http://themendenhall.com/2011/06/17/the-un-irrelevant-ineffective-and-immoral/>

Coding: The Engine of Modern Life

This is a response to Emmanuel Straschnov’s post on The Huffington Post. 

http://www.huffingtonpost.com/emmanuel-straschnov/you-shouldn’t-have-to-lear_b_6111914.html?utm_hp_ref=small-business&ir=Small+Business

Straschnov argues that individuals who are not in the field of technology should not learn how to code; instead the job of coding and programming should be left to those in the computer field (Straschnov). He believes in the revolutionary power of such technology, which will improve efficiency of labour in the future, but suggests that programming should be tailored to “our language” instead of vice versa; in a nutshell, he’s advocating for computer engineers to simplify the system to the laymen level (Straschnov).

It’s interesting how he opposes the learning of computer programming, and oversimplifies the process of coding. As a person who is beginning to learn code, I believe although computer programmers will the main group responsible for advancing the computerized interface of the modern world to improve the efficiency and functionality of basic activities, individuals should learn how to code, as it is a moral obligation to become informed on such an important driving force in the current era, and so that individuals may become self-sufficient with handling software. This kind of exploration among individuals may also encourage innovative discovery. To experience further technological advances and produce a simpler system of computer programming, the foundation of the computer language must be learned, as the foundation never changes. Computer programming is a technological discipline that empowers all industries of work and many facets of life; therefore it is as relevant for laymen to learn it as it is for professionals to enhance it.

Works Cited

Straschnov, Emmanuel.  “You Shouldn’t Have to Learn How to Code.”  Huffington

Post. TheHuffingtonPost.com Inc., 11 June 2014.  Web.  10 Nov. 2014.

<http://www.huffingtonpost.com/emmanuel-straschnov/you-shouldnt-have-to-

lear_b_6111914.html?utm_hp_ref=small-business&ir=Small+Business>.

 

Blackberry Becoming a Niche Market? (Response to Eric Lin’s post)

This is a response to Eric Lin’s post (https://blogs.ubc.ca/eric1lin/2014/10/05/is-blackberry-back-in-business/).

Eric Lin suggests that the falling Blackberry sales, attributed specifically to the outdated technology such as the physical keyboard, and with the advent of innovative Apple products, will eventually force Blackberry to innovate its interface (Lin).

However, recent analysis has found that Blackberry phone sales were higher than that of Apple’s, as seen in the table below, in Toronto, Canada (Reeder). The dominant reason is because Blackberry appeals to business-users who prefer its interface and style; Toronto, being a hub of professionals, prefers such a device. Blackberry cannot compete with Apple, which is already at the top of the ladder for electronics targeting middle to high income individuals and families who incorporate technology into their lives to some degree, a target market which is very broad, yet effectively marketed towards.

Instead, Blackberry should develop a differentiation-focus strategy that targets business professionals, highlighting the interface that allows ease of access to communication platforms such as text or email, and capability with business management programs. Blackberry phones should be marketed as a business tool and not as a toy or entertainment gadget. If Blackberry can successfully differentiate its brand in this manner, there should be little overlap of competition between itself and Apple, as the former will be seen suitable as a business utility and the latter will be viewed as family and individual entertainment technology.

blackberry  redemption(Reeder)

Works Cited

Lin, Eric.  “Is Blackberry “Back In Business”?.”  Eric Lin’s Blog.  WordPress, 5 Oct. 2014.  Web.  9

Nov. 9, 2014.  Web.  <https://blogs.ubc.ca/eric1lin/2014/10/05/is-blackberry-back-in-

business/>.

Reeder, Matt.  “Is BlackBerry Ltd dead? Not in Toronto, new third-party sales data suggests.”

     Financial Post.  Postmedia Network, Inc., 10 June 2014.  Web.  9 Nov. 2014. <http://

business.financialpost.com/2014/06/10/blackberry-ltd-sales-toronto/?__lsa=d127-4ef8>.

 

Target Canada Misses It’s Mark (Response to Rachel Chan’s post)

This is a response to Rachel Chan’s post (https://blogs.ubc.ca/rachelchan/2013/09/21/target-ing-the-right-things/). 

The post highlights three main issues attributed to Target Canada’s disappointing results: 1) unbalanced inventory 2) higher than expected prices 3) poor customer service

According to the graph below, Target Canada sales are lower relative to that of Target U.S.         Target announced its action plan to remedy the situation by increasing sales in the various store divisions and by improving inventory stock. Rachel Chan stresses the importance of Target’s timed decision-making progress and the consideration of consumer satisfaction.

However, the higher prices of Target Canada products are the main reason attributed to lack of sales. Since there is major competition from other retail stores such as Walmart and Superstore, consumers can easily substitute towards the other stores, should the product prices be undesirable, entailing that demand is elastic. Target Canada possesses few specialty goods, meaning it cannot justify its higher prices in the perspective of the consumer. Target has likely underestimated the high barriers to entry in allocating their stores to Canada, barriers which may include factors such as tariffs and transportation fees. There are also less Canadian consumers than American consumers, further lowering the sales of Target Canada relative to Target U.S. Furthermore, the purchasing patterns and preferences of Canadian consumers may also be different than American consumers; this may be part of the reason why Target Canada has difficulty matching demand with inventory.

Target canada sales(Shaw)

 

 

Works Cited

Chan, Rachel.  “”Target” –ing the right things.”  Rachel Chan’s Blog.  WordPress, n.d.  Web.  7 Nov.

2014. < https://blogs.ubc.ca/rachelchan/2013/09/21/target-ing-the-right-things/>.

Shaw, Hollie.  “Target Corp expects Canada sales to double despite weak start, data breach.”

Financial Post.  Postmedia Network Inc., 26 Feb. 2014.  Web.  7 Nov. 2014.  <

http://business.financialpost.com/2014/02/26/target-corp-profit-almost-halved-as-cost-of-data-

breach-bites/>.

Telus: Top of a Monopolistic Industry

Telus has added 113,000 more users in its third-quarter results, substantially higher than the numbers of its competitors such as Bell and Rogers (Brownell). Telus’ sales over the years, as seen below, has also reflected its corporate growth. Darren Entwistle, Telus’ CEO, states [the growth rate] “That really is reflective of our industry-leading customer loyalty rate” (Brownell). Mobile and cable services lean toward a monopoly industry, as barriers to entry are nearly insurmountable due to the massive initial capital required and the unique service that corporations in the industry provide.

Based on Entwistle’s statement, a high customer loyalty rate, in the context of this industry, can more likely be attributed to superior customer service as opposed to low pricing strategies. Since Telus has been able to retain its customers and expand its network, efficient and effective customer service must be a key component to its success. The employee attitudes toward customers is linked with the corporate culture within the company.

To boost employee morale, incentives are commonly used; however, a more permanent alternative is an intrinsic motivation from the employee who believes his work truly adds value and has societal importance. This concept was introduced by economist Steven Levitt. However, it is often difficult for employees to place their job on such a pedestal, especially in larger corporations such as Telus where corporate culture must extend to every branch of the company.

telus growth(“Dividend”)

 

Works Cited

Brownell, Claire.  “Telus winning the battle to attract new customers and keep existing ones.”

            Financial Post.  Postmedia Network Inc.,  6 Nov. 2014.  Web.  7 Nov. 2014.  <http://

business.financialpost.com/2014/11/06/telus-winning-the-battle-to-attract-new-

customers-and-keep-existing-ones/?__lsa=66a1-8edd>.

“Dividend Yield: Telus Corporation (T).”  The Passive Income Earner.  The Passive Income Earner,

28 Apr. 2011.  Web.  7 Nov. 2014.  <http://www.thepassiveincomeearner.com/dividend-

yield-telus-corporation-t/>.

Predicting The Stock Market

There are many analyses on the growth patterns of stocks, analyses which include examining the price highs and lows of a stock and certain ratios such as the P/E ratio (“Yates”). However, due to the numerous claims of stock predictions and the volatility of stocks in the market, there is always a degree of uncertainty in how the stock will move in the future. Investors’ confidence is what determines the stock price; however, determining and predicting this behaviour is difficult. The graph below attempts to analyze stock patterns and predict future movement.

It is logical to believe that an increase in the company’s profits will likely increase investor’s confidence and cause greater volume of purchases and drive up the stock price to some degree. A good indicator of such may then be the growth of earnings per share. A change in company’s profits may be due to new innovation or change in technology or consumer beliefs. For example, Blackberry’s constantly falling stock prices are linked to its lack of company growth and profits, attributed mainly to the innovation of its competitors, such as Apple (Alter). However, stock prices are still subject to human behaviour, which can be unpredictable.

stock fluc (“Technical Analysis.”)

 

Works Cited

Alter, Diane.  “Why BlackBerry (Nasdaq: BBRY) Stock Price Keeps Falling.”  Money Morning.  Money MapPress, 24. Sept. 2013.  Web.  1 Nov. 2014. http://moneymorning.com/2013/09/24/why-blackberry-nasdaq-bbry-stock-price-keeps-falling/>.

“Technical Analysis.”  StockCharts.com.  StockCharts.com, n.d.  Web.  1 Nov. 2014.  < http://stockcharts.com/school/doku.php?id=chart_school:overview:technical_analysis>.

Yates, Tristan.  “4 Ways To Predict Market Performance.”  Investopedia.  IAC, n.d.  Web.  1. Nov. 2014. <http://www.investopedia.com/articles/07/mean_reversion_martingale.asp>.

Angry Birds: A Long Shot

Rovio, the owner of the Angry Birds brand, hopes to “become an entertainment brand on par with Disney” (Rosendahl). The brand has endeavoured to do so by expanding into Angry Bird merchandise and other entertainment facets. The chief executive stated that “faster growth” was the primary reason to downsize. Due to their success despite the lower than expected profits last year, Angry Birds has no reason to downsize to cut costs, the typical reason for downsizing; therefore they hope to do restructuring changes and encourage new investors (Lewis). However, the brand’s dream to be a competitor with Disney is very optimistic. Disney has had a long history in entertainment and has revolutionized color animated films with its early works, effectively becoming one of the pioneers in films and entertainment and positioning themselves as the leader in the consumer’s perspective. According to Ries and Trout, it is very difficult to overthrow the first brand in a market (“Positioning”). Disney also controls a mass media empire, whereas Angry Birds is based on only one mobile game. Angry Birds should not expand beyond the realm of mobile games. Instead, the company should seek to produce different mobile platform games and associate them with the Angry Birds brand. The company should move in the direction of monopolizing the mobile gaming industry.

 

Works Cited

Lewis, Jared.  “Causes of Employee Downsizing.”  Chron.  Hearst Newspapers, LLC, n.d.  Web.  20 Oct.

2014.  <http://uk.reuters.com/article/2014/10/02/us-finland-rovio-

idUKKCN0HR0MY20141002>.

“Positioning.”  QuickMBA.  Internet Centre for Management and Business Administration, Inc., n.d.

Web.  20 Oct. 2014.  <http://www.quickmba.com/marketing/ries-trout/positioning/>.

Rosendahl, Jussi.  “Angry Birds Maker Rovio To Cut Up to 130 Jobs.”  Reuters.  Thomson Reuters, 2 Oct.

2014.  Web.  20. Oct 2014.  <http://uk.reuters.com/article/2014/10/02/us-finland-rovio-

idUKKCN0HR0MY20141002>.

First Nations vs Corporation

The Tsilhqot’in Indians’ attempt to preserve the ecosystems and natural estate of Chilcotin, the Dasiqox Tribal Park, by extending a government-protected boundary is to ultimately protect the First Nations’ heritage and the environment of B.C.; however, the implications can stunt the growth of Canadian natural resource corporations, such as Taseko Mines (Pynn). If the Indians are successful, clear-logging and extensive fishing are to be prohibited, and most importantly, Taseko Mines’ New Prosperity Mine Project will be challenged. Their new project will act as an economic stimulus by raising Canadian GDP, government revenue, and opening over 70,000 new jobs, effectively producing over 5 billion pounds of copper and over 10 million pounds of gold for the market (“New Prosperity.”) Such positive economic stimulation will also create positive market feedback.

In a PEST(LE) analysis, the major threats to this company are the political factors, ruling from government that forces Taseko to revise their operations plan to ensure the safety of the Fish Lake, and the environmental forces brought on by the First Nations. Taseko’s opportunities lie in stimulating economic growth through their contributions to the mining industry. Although the economic prosperity of a company should not be at the expense of natural environment, Chilcotin is outside the First Nations recognized treaties and the economic benefits greatly outweigh the potential cost. The First Nations need to understand the employment and economic importance of such a contribution.

 

Works Cited

Pynn, Larry.  “Tsilhqot’in Set To Declare Site of New Prosperity Mine A Tribal Park.”  The Vancouver Sun.

Postmedia Network Inc., 11 Sept. 2014.  Web.  4 Oct. 2014.  <http://www.vancouversun.com/

news/metro/Unilateral+park+declared+Tsilhqot+includes+Prosperity+mine/10192766/

story.html>.

“New Prosperity.”  Taseko.  Taseko Mines Limited., n.d.  Web.  4 Oct. 2014.  <http://

www.tasekomines.com/new-prosperity/ID540205>.

An Even Higher Minimum Wage

NDP Leader Tom Mulcair, hopes to raise the minimum wage to $15 an hour by 2019 to help families raise their standard of living (“Tom Mulcair”). However, an increase in minimum wage will likely cause a decrease in demand for minimum wage workers, resulting in greater unemployment and a decrease in the number of small businesses, which cannot afford to pay the workers such an increase. Minimum wage jobs are best suited for youths or teenagers due to its pay rate. Specialization programs and the creation of more jobs for adults with higher education are a more effective substitute than raising minimum wage.

However, according to the Federal Reserve Bank of New York, “Almost half of all recent college graduates are working at jobs that don’t require a bachelor’s degree” (Weiner). Weiner suggests that the possible reason why college graduates are underemployed is either they under-educated or their college-earned skills do not match the demand of employers (Weiner). The latter argument suggests that those who graduate with degrees similar to psychology or philosophy, which are perhaps less pragmatic than science or engineering, have a more difficult time getting a job (Weiner).

Nonetheless, professionals which revolve around more theoretical subjects do exist, yet are more presently found beyond a four year degree. It would appear that a large percentage of jobs either do not require a bachelor’s degree or require education beyond an undergraduate degree. However, the high cost of tuition can make the road to graduate studies difficult. Government should focus more on subsidizing education, companies could open more internship or paid positions for college students.

 

Works Cited

“Tom Mulcair Says He Will Propose $15 Federal Minimum Wage.”  CBCNews.  CBC, 13 Sept.

2014.  Web.  29 Sept. 2014.  <http://www.cbc.ca/news/politics/tom-mulcair-says-he-

will-propose-15-federal-minimum-wage-1.2765515>.

Weiner, Joann.  “Why Sally Can’t Get A Good Job With Her College Degree.”  The Washington

            Post.  The Washington Post, 5 Sept. 2014.  Web.  29 Sept. 2014.  <http://

www.washingtonpost.com/blogs/she-the-people/wp/2014/09/05/why-sally-cant-get-a-

good-job-with-her-college-degree/>.

Is Franchising Worth it for Corporate?

Fast food franchising has been the major expansion factor for most fast food restaurants, such as McDonalds and Subway. According to A&W CEO Paul Hollands: “independent business people who have got their life savings, in most cases, tied up in the enterprise…are very committed to making that business a success.” (as cited in Korstrom), making the franchising factor an effective option for fast food companies.

Therefore, it’s questionable why certain food & drink companies choose not to franchise, such as Starbucks, which only allows a small percentage of licensees, and Chipotle (Taylor). Both companies have still been able to put up a strong presence in the fast of the industry, despite not offering franchising options. Allowing public franchising permits faster expansion, as seen in Subway’s example in Figure 1 below, and faster financial growth from the option of being in the public equity market; however, companies only receive a cut of the profit and have less direct operational control of each unit, and less corporate control, as shareholders’ input now have power. It is also harder to protect the exclusivity and quality of the brand, as there seems to be a correlation between perceived quality of product or service and presence of franchises.

subway Figure 1 (Oches)

 

Works Cited

Korstrom, Glen.  “Franchisees Taking Bigger Slice Of Fast-Food Chains.”  Business Vancouver. 

Business in Vancouver, 2 Sept. 2014.  Web.  28 Sept. 2014.  <http://www.biv.com/

article/2014/9/franchisees-taking-bigger-slice-of-fast-food-chain/>.

Oches, Sam.  “The 2011 QSR 50.”  QSR.  Journalistic Inc., n.d.  Web.  28 Sept. 2014.  <http://

www.qsrmagazine.com/reports/2011-qsr-50>.

Taylor, Kate.  “Why Chipotle Won’t Franchise.”  Entrepreneur.  Entrepreneur Media, Inc., 10

Sept. 2014.  Web.  28 Sept. 2014.  <http://www.entrepreneur.com/article/237252>.