Stephen's Blog

Although Google Inc. is an extremely large company, it has displayed entrepreneurial characteristics from its humble roots as an Internet tech start up. It satisfies the category of being an Entrepreneurship by the large creation of wealth in a small time frame, innovation in its products, and risks taken to innovate. After Google was officially founded in 1998, it has generated large amounts of revenue in a small amount of time and has continued to grow. From an initial investment of 100,000 dollars in 1998, Google now has a market capitalization of 194.64 billion dollars as of November 2011. Innovation is the driving force behind Google’s growth. From a mere search engine, it now offers news, maps, mobile devices and even operating systems! Risk stems from innovation, as not all of Google’s ventures have been successful. An example would be Google’s first attempt at social media, ‘Google Buzz’, which has just been killed recently by Google themselves. Another example would be ‘Google Wave’, a service that was a hybrid between instant messaging and old fashioned email. These ventures cost Google money, but at the same time, without innovation, Google would cease to exist in its current form.

(Google’s first ever Logo!)

http://ca.finance.yahoo.com/q?s=GOOG

http://www.google.com/intl/en/about/corporate/company/history.html
http://www.klimmedia.com/failed-google-projects/

http://en.wikipedia.org/wiki/Google_logo

As we approach winter, there’s a distinct gap missing from the basketball fan’s life. The National Basketball Association has a pretty bleak future at the moment: a lockout if negotiations fail once again before the Monday’s deadline. The main issue regarding the possible lockout is the failure to agree on a percentage split on league income. The past Collective Bargaining Agreement allowed the players to take a 57% split compared to the 43% that the owners took home. Over the course of the summer, the owners have made concessions for an even 50-50 split, but the players aren’t budging. Monday is the final deadline before the first two weeks of the NBA season will be officially cancelled. The longer it takes for this to drag on, the more both sides have to lose. In my opinion, the players will lose so much more. Sure, the owners will lose a year of revenue, but the players will suffer more in terms of salary loss. This is in comparison to the extra that they would make if they get their wish. I hope the players come to their senses and quickly make a deal fast. The ship is sailing to start the season on time.

http://www.ibtimes.com/articles/225726/20111005/nba-lockout-2011-news-update-david-stern-billy-hunter.htm

It looks like Air Canada is about to strike again: according to the Canadian Union of Public Employees, 65% of its members rejected Air Canada’s deal. As of now, they are scheduled to go on strike immediately starting from Thursday morning. This is the second time that they have rejected Air Canada’s offer. Although customers who have already bought tickets will be allowed to change their travel dates, many will be annoyed at Air Canada. Air Canada claims that some flights will still continue despite the strike, but this does little to calm the consumer’s faith in Air Canada. While doing my SWOT assignment on WestJet, I realized that Air Canada is a main competitor to WestJet. This strike that Air Canada is facing is an opportunity for WestJet to build on their brand name. Air Canada needs to restore and instill confidence in consumers as its competitors slowly chip away at its market share. Air Canada needs to act swiftly in stopping this strike. The longer Air Canada waits, it will lose potential revenue not only now but in the future as well. Consumer tastes and preferences will change if Air Canada does not change its act.

http://www.cbc.ca/news/canada/story/2011/10/09/air-canada-strike-looms.html 

http://business.financialpost.com/2011/02/04/bullish-on-canadas-airlines-2/

It’s not all rainbows and unicorn across the ocean in China’s housing markets. Years of rampant speculation have driven prices skyward and now, the average citizen cannot afford to buy into the housing market. Demand for housing has always been high in China as banks do not offer enough interest in comparison to inflation. Housing became an extremely attractive option for people looking to invest. That being said, Chinese housing prices have cooled down as China’s controlling party, The Communist Party of China, enacted measures to stop speculation.  For example, the CPC now restricts the number of homes a family could buy in select markets, as well as raising the minimum down payment for a second home. China’s housing bubble differs from the fact that Chinese homeowners usually place a bigger down payment on their purchases in comparison with their US counterparts. US homeowners rely on credit and thus when the bubble burst, it was mayhem. If the bubble ever bursts in China, the elite will lose a sizable portion of their wealth. However, the biggest losers of a housing burst would be the poor owners who saved up their entire life investing in a home. A no-win situation for the poor.

http://www.reuters.com/article/2011/10/07/us-economy-china-property-idUSTRE7960D720111007

Ever since the beginning of 2010, the Greek economy has been crippled by the high levels of debt. Public unrest continues in the major cities of Greece as more and more workers are starting to strike, opposing these “austerity” measures implemented by the government. Austerity simply means the cutting of services in an attempt to reduce total costs.  These measures include tax hikes, suspension of government services, and the firing of public servants. The Greek government has been trying to employ more austerity measures, but these have been met with fierce opposition from the public. If the Greek government doesn’t pass these measures, then there is one end result: default. I feel sorry for Greek politicians right now. They’re stuck in the sense that there’s no possible way to please everybody. Regardless of which ever decision they may choose to take, it will be met with unpopularity. It certainly does not help them that services and infrastructure are continually being disrupted by these strikes. If public opposition continues, maybe then the people will finally get their wish and Greece will default. The looming question is, what will happen if Greece defaults? It’s going to be messy. That’s for sure.

http://www.time.com/time/world/article/0,8599,2094869,00.html