The UN is a large organization that provides a platform for countries to address problems and discuss solutions. Alternatively, social enterprises are smaller in scale and use methods of business to create healthy communities. Taking this fundamental difference into consideration, I feel that the world would still need social enterprises even if the UN was fully funded.

One issue with relying so much on the UN is that it can be heavily influenced by the interests of certain member nations which may have their own agendas. The UN consists of fifteen member nations, five of which are permanent. The issue with this is that if any country among the five vetoes a vote, even if there is consensus among the rest of the nations, the council resolution cannot be adopted. For example, despite attempts to intervene and prevent genocide in Syria, China and Russia used veto power to halt any international action. On the other hand, social entrepreneurs like Muhammad Yunus do not have to go through such a biased decision making process and can make change through their own volition. Muhammad simply saw an opportunity to instigate social change by giving money to impoverished Bangladeshis which created a sustainable business model. The world needs companies that have specific target beneficiaries that prioritize individual communities. I feel that social entrepreneurs have more of a connection to their community and sense of accountability to the outcomes created, and the world needs this missionary mindset.

This blog post is in response to Amanjot Chahil’s post. While I agree with some of Amanjot’s  points, I feel it is too soon to tell how this will affect the country’s economy. I want to respond in a way that somewhat defends the investments.

His blog post mentions that Brazil has spent 2.5 times that of South America for the World Cup. However, it is important to consider that Brazil’s GDP is about $2.2 trillion per year compared to South Africa’s $350 billion per year. The government has roughly put around $10-14 billion into the World Cup – which is less than 1% of the total GDP. It makes sense in my opinion for Brazil to spend so much more than South Africa because they have a serious connection to the sport – as it is often considered a “second religion” there.

(Image taken from Wikipedia)

Additionally, I feel that it is important to recognize that improvements to infrastructure are not necessarily only for the rich. One unique thing about the World Cup is that it is held in many cities around Brazil – which provides a more equal distribution of funds. Some of the locations of the new sporting stadiums are fairly remote, and this can provide opportunities for developing young athletes in these areas.

The last point is that the amount of tourism that the World Cup generates is outstanding. In fact, the Brazil Economic Research Foundation believes it could make $27.7.billion additional income. In conclusion, I agree with the decision to invest in something that the entire country enjoys – the beautiful game of football.

The first thought that comes to mind when thinking of fast food is McDonalds. However, the company has had a 30% slump in profit recently. My knowledge of the McDonald’s crumbling empire stems from an insightful blog post by fellow Sauderite – Peter Lee. I definitely agree with his notion that customer preferences have evolved and McDonalds hasn’t really brought anything truly unique to the table.

(Image taken from wikipedia)

One thing that surprised me when I went to McDonalds recently, was that they were selling parfaits which  can be viewed as a more luxurious food item, when compared to the common burger. According to Bloomberg Intelligence Analyst Jennifer Bartashus, “They’ve tried to be something for everyone as opposed to being everything for some people”. With reference to Michael Porter’s Generic Strategies, McDonalds is currently using cost leadership strategies but may need to adopt a variant of the focus strategies to once again dominate the burger loving populace (much of the market is shared with other companies like Burger King). I disagree with Peter’s implication that McDonalds should be more like A&W as it probably can’t compete with its rivals in terms of health options or quality due to its damaged reputation over the years. Instead, it should continue the millennial trend of customizable orders. This should provide McDonalds with the new value proposition it needed like Phillip said. McDonalds has huge economies of scale and should be able to revamp their restaurants to offer this. However, it may need to change its corporate culture to become more accommodating to consumer preferences.

Massively multiplayer online (MMO) games can be viewed as the cash cows of the gaming industry, and the king of this lucrative market is Riot Games’ MOBA (Multiplayer Online Battle Arena), League of Legends (LoL). Currently in 2014, LoL is on pace to crack US$1 billion in revenue.

(Image taken from wikipedia)

Why is LoL so popular? Well…One way is that it differentiates itself from direct competitor Dota 2 (MOBA game with similar gameplay), in that LoL is a lot more streamlined for newcomers. Having played both games, LoL is definitely more appealing in this regard because there is less memorization which is a barrier to entry. However, LoL has also catered to the hardcore gamers by hosting World Championships each year in several countries. Thus, the game successfully caters to both consumer bases – effectively maximizing its revenue opportunities.

The amazing thing is that LoL is completely free. Players don’t have to spend any money to play the game but can choose to pay for optional skins, which often go on seasonal sales. Riot Games is committed to enhancing the games value propositions by providing consistent monthly updates, and temporary game modes – all of which is free. This dedication highlights why LoL has such a loyal consumer base. Another interesting feature is that players need to play more of the game to unlock more champions which provides incentives for players. In my opinion, Riot Games seems like a company with a strong sense of community understanding and core values and this is why they are successful.

HSBC Hong Kong is currently operating under a five year deferred prosecution agreement and needs to change their organizational culture as part of an agreement. Over the years, HSBC has been involved in many instances of money laundering among other things. HSBC needs to do its own corporate soul searching to re-establish their lost values.

(Image taken from article)

One of the main influences on HSBC’s current culture is the lack of a coherent team unit. According to the article, there is a sense of hierarchy in HSBC’s staff that leads to lower level employees catering to the higher-ups. HSBC has a high level of individualism which creates an environment where workers do not share information, and are not able to embrace any core values. In my opinion, HSBC may need mass layoffs, and the hiring of new employees (through a stringent recruitment policy). While this may cause chaos in the short run, as workers are afraid to lose their jobs, I feel it is necessary in the long run because it’s impossible to build an organizational integrity with their current foundation.

I also feel that HSBC will have a hard time changing because they may feel above the law. This can, in the large part, be attributed to governments not taking drastic legal action for fear of disrupting the country’s financial system. This may dig HSBC’s grave as they may not be motivated to implement changes with the lack of a real threat of closure. As the article title states, “HSBC finds it easier to pay fines”.

The COMM 101 class was introduced to Sauder alumni Jennifer Martin who founded SIP Soda, healthy alternative to regular soft drinks. I feel that this is a really smart idea because it capitalizes on the current soft drink company’s struggling sales in the Canadian market, and the obesity epidemic. For three years, I lived in the Philippines, where the locals drank Coca-Cola with every meal. Thus, I found it interesting how Vancouver has a lot more heath options in terms of food. Everywhere I went, I would see “Gluten-free” this and “Sugar free” that. This shows that there is a market for this, as it part of an ongoing transformative change in Vancouver at the moment.

One area where SIP Soda stood out to me is in its use of packaging. The use of large capitalized letters on a white background stands out to customers because it is a simple and clean appearance. Furthermore, using non-leaching glass bottles reflects the company’s value proposition of being environmentally sustainable – and this effectively adds a new customer segment (environmentally conscious people). Glass packaging also differentiates itself from most other soda companies that use metal cans or plastic bottles as packaging. Glass is often associated with quality – and this only improves customer’s perception of the product.

SIP Soda (image from  company website)

However, I do feel that the zig-zag visual design on the bottle does not appeal that much to consumers. While the matching of colors to the flavors is visually intriguing, I feel overall that it is confusing and unrepresentative. I personally think images of the herbs would be more ideal.

As seen in the First Nations article, external factors heavily influence the way in which a business will operate. For example, a portion of the article is about how Taseko Mines found a large deposit of copper and gold on aboriginal lands and they wanted to destroy the entire lake. In order to fight this, First Nations got into a lengthy court preceding that enforced the protection of their lands. This serves to illustrate how First Nations was basically an external factor that influenced Taseko Mines and effectively halted their plans.

The article I have chosen revolves around how Chinese companies in the USA are urged to learn the country’s employment laws. Often times, foreign companies in the USA are targeted with lawsuits because they do not understand how it works in the USA, as the culture and ethical guidelines are different. This is similar to the case of First Nations because both parties had different agendas, and neither are necessarily wrong. The external factor in the case of the Chinese companies essentially forces them to adopt to a new way, which involves restructuring and educating. I believe that external factors can be a positive or negative. This ties in nicely to ethical guidelines of business and the grey line between what is or isn’t morally acceptable. In the case of Taseko Mines, I believe that the external factor (First Nations) was positive, because it allowed for the preservation of land and culture. In the case of the employment laws, I think it is one of those external factors that is inevitable, and it has less to do with personal agendas, and more to do with practicality.

Sources: http://thetyee.ca/Opinion/2014/07/26/Tsilhqotin-With-Gloves/

http://usa.chinadaily.com.cn/us/2014-09/18/content_18622649.htm

Recently, Warehouse Retailer XS Cargo has decided to close 50 stores across Canada after a failed bid for reconstruction. The downfall of XS cargo occurred due to the emergence of new retailers in the industry.

In my opinion, XS Cargo had to close down because of its failure to adapt to competitors. This falls under financial accounting because they were unable to gain any new assets in time to execute a turn around strategy. As mentioned in the article, the assets of XS Cargo are $15.8 million, while the liabilities are $18.7 million. Furthermore, I feel that it was a poor decision to do a liquidation sale because that shows that the company is not confident in the quality of their product as they are willing to sell it for an incredibly low price. Combine that with the fact that XS Cargo’s liquidation sale was not even much lower than that of the competitor’s base prices, it was easy to see why this strategy did not work. In addition, a look at the company’s debts reveals that they owe money to unsecured creditors. This is a poor use of money as XS Cargo did not gain any assets as collateral and merely added to their growing list of liabilities.

Source: http://business.financialpost.com/2014/09/28/mississauga-warehouse-retailer-xs-cargo-to-close-its-50-stores-across-canada-after-failed-bid-to-restructure/

http://www.thestar.com/business/2014/08/07/xs_cargo_files_for_protection_from_creditors.html

Source: http://business.financialpost.com/2014/09/28/mississauga-warehouse-retailer-xs-cargo-to-close-its-50-stores-across-canada-after-failed-bid-to-restructure/

Canadian Tires has recently taken over as MLSE sports team sponsor, which represents a variety of Canadian sporting properties. Tim Leiweke (CEO of MLSE), chose Canadian Tires over US based retailers as he felt it would be the best option for representing Canada. This falls under managerial accounting, which can be defined as “the provision of financial data and advice to a company for use in the organization and development of its business”.

I feel that this was a great decision for Canadian Tires to take on the sponsorship as it will allow for increased publicity and support from the Canadian public. The fact that Canadian Tires won the sponsorship role over even bigger competitors represents a great victory. This was clearly a strategic move by Canadian Tires as it will be able to differentiate its products from other sports retailers, and they will also be able to place their logos at other MLSE owned outlets. This clearly benefits both parties as Canadian Tires also clearly has the money to give to MLSE over the next 10 years (owns huge portion of market share in Sports industry), unlike Rona (old sponsorship). Thus, it is clear that this managerial decision will be beneficial as combining two big names in the sports industry should be able to dominate market share.

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

Often times in the world of business, ethics and maximizing profit do not go hand and hand. A prime example of this is the company Nestle. The article discusses how a multi billion dollar corporation is permitted to continually extract the ground water in B.C.

In my opinion, I feel that while it is easy to blame Nestle for abusing the groundwater in B.C., one also needs to deem the B.C. government as culpable for not putting any sort of limit or fee on the extraction of water. I think Nestle is actually moving in the right direction, due to the fact that it mentions in the article that “[Nestle is] largely supportive of what the government is trying to do”. I feel that Nestle should consider lowering the price of their water because people are not going to purchase as much bottled water, considering that the tap water is regarded as clean. Therefore, it is possible that Nestle is actually losing money. This will hopefully paint Nestle as a more ethically sound company, which will help improve their public perception.

Source: http://www.timescolonist.com/news/local/wild-west-of-groundwater-billion-dollar-nestl%C3%A9-extracting-b-c-s-drinking-water-for-free-1.587568