Monthly Archives: October 2014

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/