Hazel Wong's Blog

Many companies have arrived to an understanding that the “business world and the natural world are inextricably linked”. Simply, companies are aware that the natural sources required for building their products are depleting. This is not a matter of choice but a matter of necessity. Mentioned in Sandra Pham’s blog post, sustainability is being modified into a competitive advantage. Why is that the case?

It is in the companies’ best interest to lower costs and create value. Unintentionally, environmental challenges are providing favorable circumstances. For example, Walmart, who is still “overshadowed by its legacy of questionable labor practices”, is determined to redeem itself by focussing on sustainability through the following methods: reduce energy usage, “eliminate harmful emissions”, and “tackle packaging”.  Currently, Walmart has managed to cover and improve a large range of sustainable practices including waste management. Dealing with these environmental risks has “lowered operating costs, and has strengthened relationships with customers”. In fact, profits are driven upwards by lowering sustainable-related costs. Therefore, corporate social responsibility is achieved regardless of direct pressure. In the long run, miniscule problems will accumulate to the point that businesses must address them because such issues shall affect their profits.

 Sources:

http://www.eco-advantage.com/book.php

http://www.sustainablebusiness.com/index.cfm/go/news.display/id/24279

Light up the world because you can.

Stated by Amielle Lake, an entrepreneur is “non-employable”. Yet, how should one define non-employable? Perhaps it is fair to say, entrepreneurs are people dedicated to their own visions opposed to being devoted employees. After all, entrepreneurs are dreamers and loyalty becomes an issue when dreamers become occupied with conjuring up personal ideas, while neglecting their duties at hand.

What happens if we consider ourselves highly-employable but a dreamer as well? The decision is split between a stable occupation and a role as an entrepreneur. This requires a second key player: risks. Do you consider yourself a risk-taker? Before responding, re-play the challenges that you have experienced.

Two outcomes follow a challenge. Those who enjoy challenges will persevere, whereas those who detest challenges will switch to an alternate route. For those choosing the latter option, entrepreneurship is the wrong path. Entrepreneurs possess passion for solving problems. They are prepared to endure that bitterness of defeat. Upon entering the world of an entrepreneur, there are no easy victories. If you are ready to be defeated repeatedly, you are destined to be an entrepreneur.

Washroom currently washed with tears.

Credit to Amielle Lake- Reasons to become an Entrepreneur

Where’s the honesty?

Business-Fundamental Prosperous Reviews  =  Consumer-Fake Product Reviews

In the perspective of a businessman, “good reviews” generate fundamental prosperous gains because “tech-savvy customers” rely on online ratings. Consequently, “fake product reviews” are becoming more popular as companies pay individuals to write nice comments about their products. Although it is true that “sustained postings of fake reviews” will influence buyers, a misconception is thrown into the mix.

The tip to selling a product is not based solely on making the product look good. Astoundingly, the underlying goal is to win the consumers’ trust by having negative reviews. “Potential customers” are smart enough to realize that all products have flaws. Truthfully, when customers find the imperfections of a product, they feel satisfied in having “done their homework” and their leniency would cause some limits to become irrelevant.  Once a connection between the company and the buyers is established, the message about the worth of a product and the company’s honesty is passed on. Therefore, the greatest achievement in writing good reviews is when customers believe in the product on the basis of sincere reviews.

 Sources

http://www.digitalvisitor.com/latestnewsandresources/social-media-blog/how-reviews-influence-purchasing-decisions.html

http://news.consumerreports.org/money/2012/01/fake-online-product-reviews-draw-regulator-attention.html

Zara rides the trend with speed.

As other companies begin to forecast for the upcoming season, Zara has already sold its latest designs and is moving on to next week’s display. Stated by Devangshu Dutta, speed plays a role in Zara’s “winning formula”. To acquire speed, production takes place in Spain where the design team is located.

Considering that Zara has begun its conquering of China, its recent ambition entails the adoption of a global fashion sense. Surprisingly, Europeans’ fashion taste appeals to the Asian market, but what looks good on others may not apply to everyone. In other words, Zara must invest a substantial amount into recruiting designers familiar with the figure and skin tone of the Asian population. Looking ahead, it is imperative that Zara maintains its speed to match the rapidly changing interests of Asian fashionistas. Such feat is both time- and money- consuming. Despite Zara’s current success, its business model is not necessarily ideal for global expansion. In the long run, is it sustainable? And for how long can Zara continue its creation of weekly designs? Only time can tell.

Source

http://thirdeyesight.in/articles/ImagesFashion_Zara_Part_I.pdf

http://www.economist.com/node/21551063

http://www.zara.com/webapp/wcs/stores/servlet/home/ca/en/

Make a difference.

When we think of business, we relate it to a model that focuses primarily on maximizing profit and omitting “social benefit”.

“Social enterprise” is a newly exposed field that differentiates from the standard profit-driven businesses. Opposed to “making money”, social enterprise strives to “generate social value” and to become “socially-responsible” with the combination of “financial and social returns”- the best of both worlds. Consequently, the popularity of “social enterprise” is rising as more graduate students enter this “nascent field”. However, there are many skeptics who argue that such discipline is impossible.

For instance, certain “socially-responsible practices” may yield economic losses. If this is the case, how many people are willing to continue with these entrepreneurial principles? The opportunity cost of conducting ethical practices is a financial loss. This is the “dark side” that lures students to the pitfall of becoming “money-oriented”. From a social entrepreneur’s perspective, “customer loyalty fostered” by social-conscious missions allows the social and financial return to exceed the losses in the long run.

Therefore, replace the mindset that social benefit cannot co-exist with profit gains by having an open mind.

Source:

http://www.yaledailynews.com/news/2012/oct/17/panelists-champion-careers-in-social-good/

http://www.newsroom.gov.bc.ca/2012/03/bc-introduces-act-allowing-social-enterprise-companies.html

http://www.ssireview.org/articles/entry/social_entrepreneurship_the_case_for_definition

Target loves Canada

By now, Target’s “friendly invasion” into Canada is well known after its purchase of the “rights to 220 Zellers leases”. Moving beyond the battleground in US, many factors affect Target’s future success in Canada.  Based on “Porter’s five forces”, I decided to examine the “framework” of the industry that Target has chosen to enter.

A key force inhibiting Target’s progress is “rivalry”.  Up-to-date, Target’s main competitor is Wal Mart who offers low, affordable prices. Target acquires a competitive advantage by providing “high-quality goods and low prices”. This is rare because “low costs” is the main concern for large retailers, who target a “broad market segment” based on the “Cost Leadership Strategy”.  Disregarding the other three forces, buyer power has greater influence on the industry. It is reasonable to say that buyer power in Canada has created a “monopsony, a market where there are many suppliers but one buyer”. If Target displeases the buyers with its price or quality, its reputation becomes damaged. For most Canadians, great deals are valued over “chic designs”. If Target uses the wrong strategy, it will miss the bull’s eye completely.  —- “becoming off target”

https://www.youtube.com/watch?v=hthcJr6c6bw&feature=related

http://www.canadianbusiness.com/article/100001–target-s-friendly-invasion

http://www.quickmba.com/strategy/porter.shtml

Satisfy your craving

Sally Gao’s blog on Qoola and Yogen Fruz has prompted me to look further in depth regarding “points of difference”. Generally speaking, competitions between companies are sparked by similar products. Once again, using Qoola and Yogen Fruz as an example, it is clear that both brands share a standardized “frame of reference”. First, consider yourself as a regular customer. How can your craving for a mouth-watering frozen yogurt be satisfied? You have the option to either pick from a menu or to self-serve. Which seems more appealing?

For most customers, they lean towards the self-serving option because it grants the freedom that a menu lacks. Qoola managed to create a “unique brand association” by accommodating the consumers’ need for “flexibility”.  Therefore, accommodation is the key behind a “compelling point of difference”. Contrary to Yogen Fruz, Qoola understands that consumers enjoy flexibility along with a soothing environment. It targets the community through their “mission[s]”: “pure heart, pure body, all natural and recyclable containers”. Remember: A product may be sold at the same price, at the same amount, at the same location; however, the difference lies in how they please their customers.

https://blogs.ubc.ca/sallygao/

http://www.ncbi.nlm.nih.gov/pubmed/12227148

http://qoola.com/aboutus/ourmission

Person 1: I know you!
Person 2: Who are you…?

Recently, I found an interesting blog by Hank Blank covering the topic: networking. One particular entry, called “It’s not about who you know. It’s about who knows you”, caught my attention because I recalled this phrase being mentioned during class. Immediately, “word of mouth” appeared in my mind. Words spread quickly due to two reasons: either someone has a good reputation or the opposite. In a society with media like LinkedIn serving as the basis for networking, it is nearly impossible to stand out.

For instance, consider the situation of applying for a job. Imagine the hundreds of resumes that a company receives. Perhaps, some resumes are recycled before viewing by potential employers. The chances of being hired are slim, but what happens if the “people of influence” know who you are? By having your skills interwoven into your network web, words become an opportunity. Likewise, a brand’s success is based upon “word of mouth” because reputation is acquired when someone knows you and can relate you to your assets. If no one can recall your name, then you have earned the title: know-you not.

http://hankblank.wordpress.com/2012/07/05/its-not-about-who-know-you-its-about-who-knows-you/

http://hankblank.wordpress.com/

Apple is or was known as the “cool underdog”, who blew the world away with its innovations. When people think of Apple, they think of iPhone or iPad. At a glance, it appears that Apple was the first company to create such products. Yet, this is false because they rely on “reinvention” opposed to creation. By positioning itself as the market leader of reinvention, Apple nabbed the gold medal within the consumers’ mind. They were the first to establish distinct points of differences from its competitors.

One key difference is their attitude; “the people who create the products have to want it themselves”. More simply put, the engineers are the potential customers. Their success is linked with its dominant marketing campaign. Despite a lack of originality, their sales continue to rise. However, Apple’s Rival, Samsung, has begun to “reposition the competition”. An interesting ad has caught the attention of many consumers including “die-hard Apple fans”.

It seems that Apple is at its peak and there is nowhere to go but down. This raises the question: Is there an everlasting position in the consumers’ mind or do consumers simply want the “next big thing”?

http://www.cbc.ca/news/business/story/2012/09/21/f-vp-pittis-iphone-launch.html

http://www.quickmba.com/marketing/ries-trout/positioning/

http://techland.time.com/2012/05/07/six-reasons-why-apple-is-successful/

 

E- Cigarettes, otherwise known as electronic cigarettes, are currently a newfound trend for teenagers. Supposedly, these cigarettes are a “healthy” alternative to smoking cigarettes because its health effects remain unknown to the public. Nonetheless, it raises concerns for parents including experts who are skeptical about the safety of this product. How can a product producing a substance that resembles tobacco smoke be harmless? Despite its lack of reports since 2009, the risks involved have never been published.   

Acting in a righteous manner, the company advocates the nicotine-free version of this product. Consequently, the possible safety issues are overlooked. This is a common ethical issue addressed in Freeman’s Stakeholder Theory. There are businesses who do not act as “good citizens in the community” because they neglect the “quality of life” and disregard their “effects on civil society”. As a result, these businesses end up being “regulated into decline”. (https://www.youtube.com/watch?v=bIRUaLcvPe8) This can be seen for parents are now voicing their concerns, which raises awareness regarding the potential threats associated with e-cigarettes. As health services departments look further in depth into this product, we will soon observe the predictable decline of an unethical business.

Source:

http://www.cbc.ca/news/health/story/2012/09/11/electronic-cigarettes-quebec.html