Florence Fong's COMM 101 Blog

Reading Saxon Yeung’s blog on the startup company Signpost reminded me of the common topic and similar startup, Bench. Signpost is a cloud-based marketing software company that offers a product that assists businesses in getting and keeping customers. Similarly, Bench is a startup that provides bookkeeping services that are quick and tax-ready.

Both companies are recent establishments that were presented within the past three to four years. In saying so, the companies could benefit from Porter’s five forces analyses as it allows for better understandings of the industries in which the firms have entered.

As for their products and services, Signpost and Bench have exhibited disruptive innovation within their markets. As the companies were freshly introduced to their corresponding industries, the costs for their work is affordable and more attractive to business owners. Fortunately, with young entrepreneurs familiar in the world of technology, both Signpost and Bench incorporate advanced technology thus enhancing the speed and simplistic outlook of the consumer’s data. In doing so, the companies employ lower net costs than larger companies at the upper end of the niches.

To me, successful entrepreneurs, in the current era, must produce and innovate pertaining to the desires of consumers. And over the past decade, technology has been the thriving industry.

During The Spark, Sauder’s first year orientation event, I was luckily placed in a team led by a fifth year BTM student. Initially, I was disinterested in the conversation topics as I was not a big fan of technology; however, my Spark leader provided and insightful summary of what business technology management is all about which caught my attention. In fact, this was when I first learned that Target, the department store, figured out a teen girl was pregnant before her dad did.

I then did some research and came across this article that offers more information on this news story. Target labels each customer a Guest ID number which is sorted through attaining the names or email addresses of consumers which is tied to bankcards. The large department store was able to do so with a teen girl. Knowing she was pregnant, the company sent coupons for baby items which her father unfortunately received.

From here, I can see the outstandingly accurate and extensive customer targeting and marketing can get. Additionally, Target was able to collect this information through revolutionary technology. Although, targeting is a successful tactic to increasing sales and brand awareness, at what point does it become unethical? In Target’s case, one can say gathering all this information invades one’s privacy. Thus, firms should be careful and strive for compliance as this way of advertising may drive consumers away.

After reading Juliet Choi’s blog, I thought back about a week ago when we welcomed Danielle van Jaarsveld as a guest speaker. Similar to what Juliet took from Danielle’s lecture, I was also able to see the significance of passion and dedication from employers and employers. In the article she came across, future employees are said to alter organizational culture as they make up a big proportion of the workforce.

I believe this to be true as employees are often the individuals that provide service firsthand to consumers. With this being said, it is important for employers to seek workers whose values comply with the companies corresponding vision.

In saying so, I came across this article exploring the reasons for Disney’s success. Being rated as one of the top 17 most enjoyable companies to work for as stated in this editorial, the Walt Disney company pursues a culture that aims for innovation, organizational support and education for employees, and entertainment for all. To ensure this to be successful, the company offers training at Disney University which prepares employees to perform accordingly. As well, Disney has a wonderful community and offers amazing growth opportunities and benefits  for employees.

Clearly, Disney is operating in the correct manner as Disney theme parks are referred to “The Happiest Place on Earth”.

As one of the many poplar retailers located all over North America, Costco is taking a glimpse at long-term success. In fact, the company is already “consistently outperforming competitors like Wal-Mart and Target.” At first glance, these retailers come off as essentially the same providing similar products that comply to all types of consumers. As can be seen, Costco and its rivals have many points of parity offering necessities to purchase ranging from vegetables to stir-fry to shaving gel for your everyday routines.

Nonetheless, Costco is constantly displaying outstanding financial results in comparison to its rivals. This wholesale retailer is flourishing by following one simple strategy – “concentrating on driving sales.” Costco invests its earnings in their employees through improved pay and benefits in lieu of advertisement of the brand. This business also limits the number of items on the shelf. In comparison to Costco’s competitors, the company holds the points of difference offering notable customer service and limited variety of products. This form of value proposition attracts customers to spend their time and shop at Costco instead of Wal-Mart and Target. Thus, Costco is seen implementing the lack of innovation and the lack of diversity to add value to consumers in a simplistic, strategic way. It surprises and relieves me that such a successful retailer is prospering in sales without the integration of unsustainable or disruptive innovation.

While actively working on our Group Business Plan Assignments for over a month now, I am familiar with creating and studying business model canvas. Hence, after coming across Robert Cordray’s blogpost which speaks about a new and innovative printer, I instantly analyzed the technology producer, HP.

As the popularity of technology is growing exponentially, HP must feel the need to differentiate their printers from others on the market. With everyone’s extensive to-do lists, technology that performs quick and effective are in high demand. Ingeniously, HP teamed up with Neat as they are admired for their scanners and the cloud-based system. 

Initially, I realized HP’s enlargement of key partners. The company is teaming up with Neat to produce this new printer. Also, HP works with Apple and Google as the printer supports printing from iOS devices and Android. In doing so, the company is better able to add value to a wider range of consumers.

With the low price that the printer is offered at of $399, HP can target home-owners and small businesses in search for an all-in-one printer at an affordable price.

As for its key activities, HP’s Officejet 8040 features wireless printing and automatic ink ordering as it detects low levels. As for additional key activities, Fox Van Allen’s blogpost on the printer touches upon the company’s advantages. 

HP is successfully intriguing consumers as the company continues to expand and diversify various components of their business model.

Without any formal business education before entering Sauder School of Business, I have found the world of finance to be overwhelming yet profound. Initially, I assumed finance would simply be a collection of calculations and investments based off of unstable stocks; however, I remember when we welcomed Professor Mahesh to our lecture where he spoke about risk and ambiguity in operations. I was able to apply this to the discussion we had with Jeff Kroeker where we dissected financial statements. Instantly, I realized the difficulty of justifying whether certain costs should be included on statements or amortized.

Eventually, I came across an engaging article on Netflix’s current situation pertaining to their cash flow and earnings. Taking a look at the market, Netflix’s shares seem to untouched in comparison to the broader market. Although the company anticipates over 13% increase in subscribers globally and high valuations in trades, the cumulative free cash flow of the company has been negative for over nine quarters although net income has been increasing. In addition, Netflix has even deferred the amortization of expenses thus analysts are skeptical of the continuation of successful shares. Since Netflix has recently expanded into numerous European countries, it is easy for operation and production of financial statements to get out of hand.

The realm of finance is not only about completing calculations to balance out at the end of the day, but a thoroughly prepared game plan is required as well to succeed.

Photo 1: Toronto Maple Leafs

http://o.canada.com/sports/nhl/will-cbc-ratings-drop-with-only-one-canadian-team-left-in-stanley-cup-playoffs

A year ago, Rona opted out of a contract renewal being a sponsor of Maple Leaf Sports and Entertainment. In doing so, numerous retailers vied to take their place; however, Tim Leiweke decided to “go with Canadian Tire Corp. Ltd.” He avoided foreign-owned retailers as a shot at maintaining the interest of the Canadian public. Tim did so to differentiate the MLSE from newcomers.

This management decision is an attempt to expand MLSE’s popularity at a national scale. In doing so, the key partnerships component of the business canvas model is enhanced. This partnership with Canadian Tire and Sport Chek allows for the expansion of the Maple Leaf brand. This alliance was made to optimize MLSE’s business plan, reduce risk and aquire resources. Learning about managerial accounting in Class 9 allowed me to understand how this cost shapes management decisions. It is an investment to further develop and advance the logo and name of Maple Leaf Sports and Entertainment.

Photo 2: The Toronto Maple Leafs Crowd

http://www.thestar.com/business/2013/09/09/mlse_and_canadian_tire_team_up_in_10year_retail_deal.html

Works Cited

http://www.theglobeandmail.com/report-on-business/industry-news/marketing/canadian-tire-takes-over-as-mlse-sports-team-sponsor/article14207122/

Photo 1: Jell-O

http://thebonnieblueblog.blogspot.ca/2011/03/how-to-govern-american-people-just-like.html

In the 2000s, the bouncy dessert company, Jell-O, prospered as the products they offered exceeded the desires of the public. During the time, fad diets reinforcing low-sugar and low-calories were popular among customers. Kraft Foods Group, the snack food company owning Jell-O, acknowledged this trend thus offering sugar free brands aimed at the adult crowd. In Class 8, we explored the value proposition component of the business model canvas. After reading this article, I applied my knowledge hence allowing me to relate it with the intentions of the company. The new product adds value to customers as they offer a functional and emotional job done that satisfies their needs.

In addition, I noticed the significance of research and development for a company to flourish. With analysis, the value proposition of a business can be shaped thus complying to the public’s demand. A little over a year ago, Jell-O experienced a decline in demand and sales. They did not model their products according to the customer’s interest. Although late, Kraft is making an attempt altering their value propositions to fit the need of consumers. In the end, only time can tell the success of Kraft’s new marketing plans in hopes to regain stability in their product’s value.

Works Cited

http://adage.com/article/news/kraft-launches-campaign-revive-jell-o/243616/

https://www.youtube.com/watch?v=Z7JyRvECaNs

Photo 1: Christy Clark http://www.vancouversun.com/life/Premier+urges+cooperation+more+litigation+government+natives+reach+fork+road/10194776/story.html

The B.C. government and First Nations have been quarreling for centuries over fair common ground that satisfies both parties. The dispute between the government and native people is over “government support for aboriginal rights and titles to lands” as well as revenue sharing; however, B.C. Premier, Christy Clark, began the All Chiefs Summit with opening remarks acknowledging the failing ties between the parties but ensuring upcoming progress and negotiation.

Photo 2: Metro Modular Homes

http://metromodularhomes.ca/

With decades of continual dissatisfaction and irritation, there seems to be a glimpse of hope in this relationship. The disclosure of this proposal comes external factors that may favor or hinder an organization’s business model. For instance, a loosening of regulations and improvement in relationships with native people is anticipated. Downfalls to this attempt at reconciliation are new, stricter regulations and further impairment to the relationship with First Nations. As for reference, Metro Modular Homes is a company that  has been “supplying manufactured and modular homes throughout British Columbia for over thirty six years.” This business’s customer band is largely based with First Nations. With a positive outcome from the issue, the company and customer relationship will continue to flourish; however, new regulations may arise thus preventing business and trade between specific peoples. In the case of an unfortunate outcome, First Nations may prefer not to execute transactions with people other than their own kind. Thus, in Metro Modular Homes’ business model, this issue would impact the customer segments and relationships components of the company.

Works Cited

http://www.vancouversun.com/life/Premier+urges+cooperation+more+litigation+government+natives+reach+fork+road/10194776/story.html

http://metromodularhomes.ca/about/

Photo 1: Apple Logo

http://www.theguardian.com/technology/2013/jan/25/apple-child-labour-supply

In the last year, The Guardian released the news article “Child labour uncovered in Apple’s supply chain” which informed the public that Apple discovered numerous “cases of underage labour” and reports of “a series of worker suicides over working conditions.” Although Apple has the net worth of billions of dollars, the business is seen adopting the practice of child labour. In the case of Apple, value-based management can be seen as relevant as the employees are neglected and forced to work in poor conditions. For instance, the chief executive of Apple, Tim Cook, was previously responsible for building these supply chains; however, Cook made an attempt to resolve the issue by hiring an independent auditor thus displaying proper business ethics.

Milton Friedman believes that the social responsibility of business, i.e. individual proprietors or corporate executives, is to increase profits while complying to social standards. This includes “conduct[ing] the business in accordance with [the employees’] desires”. Regarding the article on Apple, the business does submit to this responsibility as many cases of underage labour has been uncovered. As can be assumed, the company’s success and income overcome the working state of the employees, in the management’s point of view.

According to R. Edward Freeman, a successful business needs to “create value for customers, suppliers, employees, communities, and financiers.” This is the stakeholder theory. As can be seen in the article, the stakeholders of Apple do not work together as crucial information is withheld from auditors in order to stray away from the repercussions. On the other hand,  for the case Apple, the company is still successful regardless of its unethical practices.

Works Cited

Article: http://www.theguardian.com/technology/2013/jan/25/apple-child-labour-supply

Friedman: http://site.ebrary.com/lib/ubc/reader.action?docID=10187339&page=171

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