Alibaba and Singles Day

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Single’s Day is a holiday in China simply celebrating the life of single people. Recently, not only has it become the nation’s largest online shopping day but also the world’s, statistically.

Alibaba, which is Chinese e-commerce company providing consumer to consumer and business to business sales services has sold 5.9 billion dollars of merchandise this Singles Day benefitting massively from the holiday. Sales also came outside Mainland, including Hong Kong, US and even Brazil and Russia. In addition the company’s stock surged 75 percent in NYSE.

Alibaba is looking to further market its services to Malaysia and Singapore. Alibaba’s is showing a drastic growth in it’s operations and is soon to overtake other major companies to become the largest sale service provider in the world.

Link to image and article:

<http://www.bloomberg.com/news/2014-11-10/alibaba-adds-brands-to-drive-promotion-that-dwarfs-cyber.html>

Honda invests $857mill for Ontario Plant

The proposed move will add employment in the city of Canada as well as widen the Japanese company’s operation and increase it’s net profits. According to the article, about 4,000 jobs may be added.

Jerry Chenkin, who is the president and CEO of Honda Canada says “We are deeply proud to be the lead plant for the next generation of Honda Civic, a designation that reflects the incredible efforts of Honda associates over the past quarter century to produce products of the highest quality for our customers in Canada and around the world”. 

Not only is this a positive move for the firm but it also strengthens the relations between Canadian and Japanese economy.

Read more: http://www.ctvnews.ca/autos/honda-to-invest-857m-in-ontario-car-plant-1.2089649#ixzz3IkFzBs2b

Link to the article and image:

<http://www.ctvnews.ca/autos/honda-to-invest-857m-in-ontario-car-plant-1.2089649>

Pizza Hut Will “Re-New” It’s Brand Completely

Pizza-Hut--Cold-Storage-Jelita-Shopping-Centre--Singapore---20051224-jpg

Pizza Hut is planning to reboot itself for a completely new generation following declining sales for the past 2 years. It is said to be the biggest “re-construction” of the brand in it’s 52 year of operation. The decline in sales could be attributed to changes in consumer preferences or due to staleness of the old-classical logo’s and slogan’s. It could also be due to changing demographics as the younger generation of 21st century expects something different to consume and utilize.

According to the article, the company is looking forward to adding “11 new pizza recipes, 10 new crust flavors, six new sauces, five new toppings, four new flavor-pack drizzles, a new logo, new uniforms and, yes, even a new pizza box.”

I believe the company is spending larger amount of its budget on marketing as they want to further continue operating at high profits. The video also states that Pizza Hut isn’t the only company and there’s many that are currently going through the same phase. The reason why many of the firms in food industries are re-branding. The reason according to the video from the article is because firms are looking to appeal towards younger audience. Though, I am not completely sure about the end result, I do have to agree with the people in the video as well as the writer in that its a risky business decision.

Link to article and video:

<http://www.usatoday.com/story/money/business/2014/11/10/pizza-hut-fast-food-restaurants-pizza-skinny-slice-pizza/18641525/>

Link to image:

<http://www.wcvb.com/money/pizza-hut-testing-skinny-slice/28118758>

McDonald’s Happy Meal Toy and CSR

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A few weeks ago, I had learned about the importance Corporate Social Responsibility of a company wherein the company needs to regulate and lead itself to become a socially, economically as well as environmentally ethical entity. I had also learned about the importance the correlation of CSR and reputation of business and how negative company records may affect the it’s general appearance.

Earlier today I had read a professional blog by Ashley Keeler about the recent scandal involving minors choking on Happy Meals toys in McDonalds. This case was nothing new to me as I have heard multiple similar controversies happening in the past involving children eating miniature sized objects not meant to be eaten (famous example being Kinder Surprise). However, what I did realize was this was going to damage the company’s image and perception and employee and customer satisfaction (as they are both included in Social tab of CSR given the Triple Bottom Line).

Link to image and article:

<http://consumerist.com/2014/11/10/mcdonalds-recalls-happy-meal-toy-for-choking-hazard-after-two-children-cough-up-pieces/>

Other sources involving similar incidents:

<http://www.independent.co.uk/news/world/cabbage-patch-doll-eats-girls-hair-1316481.html>

A Case with HTC

A11_3V_White_SI have recently read Nigel’s article on HTC which in itself was based on another blog by Danny Jung discussing the current situation of Blackberry and Lenevo.
Nigel brought up the point that HTC’s main source of failure came from the company’s inability to “recognize consumer gains and pains”.

In fact, reading recent news articles, HTC stocks has indeed plummeted “90% since 2011”. The article linked aboce by Bloomberg also states HTC was competing with bigger rivals such as Apple and Samsung in the smartphone market. However, what it also points to is its failure came instead from its weakness in design and engineering rather than its recognition of “consumer preferences”.

Personally, I believe that both equality and lack of consumer insight led to HTC’s failing sales and eventual plummeting. From this, we can learn the importance of research and development in operations.

Link to image:

<http://www.htc.com/managed-assets/shared/desktop/smartphones/htc-desire-510/en_US/A11_3V_White_S.png>

Link to Bloomberg article:

<http://www.bloomberg.com/news/2013-09-27/htc-to-sell-back-stake-in-beats-headphone-maker-for-265-million.html>

Link to Nigel’s blog:

<https://blogs.ubc.ca/cctsaur/2014/11/04/htc-what-happened/>

Decreasing unemployment rates in United States

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I have recently read Kelly Hu’s blog on falling unemployment rates in United States and how that may signal the rise of economic growth in the nation. Though I do agree with her view on falling jobless rate leading to levels of income and GDP, I believe she hasn’t mentioned the biggest problem this can pose in the future. This relates to the Phillips Curve wherein a change in rates of unemployment of a country will have an inverse change in rates of inflation of that country. Kelly should’ve also mentioned that a decrease in unemployment rates in US could lead to inflation of dollar ($) since they both functions as long term economic tradeoffs. Higher price levels can thus lead to lower value of money and decreased purchasing power of money.

In addition, inflation also leads to uncertainties in the future about investments and savings. Because companies focus more on profit and less on products they will decide to raise the price levels of their individual goods. This is however given that economy functions at low rate of unemployment. In order for the economy grow, not only do we require low jobless rates but also low levels of inflation.

Link related to the image: <http://www.rte.ie/news/business/2014/1107/657649-us-jobs-figures/>

Other articles related to the ongoing event: Solid Job Gains Belie Economic Unease <http://online.wsj.com/articles/jobs-report-economy-adds-214000-jobs-1415367269>

Japan’s first homegrown airliner finally unveiled

Mitsubishi Regional Jet, the first aircraft that is designed and produced in Japan in over half a century recently had its debut official rollout on October 19th. According to the article, this midsize aircraft was created due to help from state as well as other companies such as Japan Airlines and All Nippon Airways.

The new jet will have its first flight sometime next year and will have its first deliveries sometime starting in 2017.

So far 400 orders have been made worldwide for MRJ’s even some coming from United States airlines “which agreed  to pay up to [forty 70-90 seat aircrafts]”. JAL on the other hand has agreed to buy 35 for the intent of strengthening it’s domestic services and establishing fuel-efficient jets. MRJ which has a small capacity of 70-90 passenger is a likely alternative to the bigger aircrafts. In addition, smaller aircrafts are economical meaning the airlines will likely receive higher benefit during winter season.

All of this shows that Mitsubishi Heavy Industries is inventing a product that (although not original), is sustaining innovation and one that’s focused on lower cost.

Link to article and image:

Nagoya. “Japan’s First Homegrown Airliner Finally Unveiled.” Japan Times RSS. N.p., 18 Oct. 2014. Web. 23 Oct. 2014.

http://www.japantimes.co.jp/news/2014/10/18/business/japans-first-homegrown-airliner-finally-unveiled/#.VEmJ44tjMVh

Microsoft Looks to China for an Xbox One Rescue

The country of China has had a long history with video games. As evidenced in many other articles, including the official Wikipedia page, China is known to have a booming domestic video game industry such as arcades though not traditionally  in modern game consoles. In the year 2000, all video game consoles were banned allegedly due to “graphic violence these games contained and morally corrupt undertones”, which the government greatly cared for. In the January of this year, these restrictions were lifted as the country became continuously modernized and further embraced globalization.

The following article talks about the grand opening of Xbox One in China and interviews a man on his opinions on video gaming in China. Perhaps the big focus of this articles is not in the gaming culture of China but of the continuing expansion of Microsoft’s video game brand Xbox. The famous company, Microsoft is known to expand into large and countless territories in order to increase their total revenues and gather consumers.

The loosening of restrictions has created a terrific opportunity for the company to expand their operations and as Phil Spencer, head of Xbox, Microsoft puts it “We know there are millions of gamers there and lots of pent-up demand”. I believe that not only is Microsoft as a whole using these opportunities but also expanding their brand as well.

 

Link and Image:

Bass, Dina, Edmond Lococo, and Bruce Einhorn. “Microsoft Looks to China for an Xbox One Rescue.” Bloomberg Business Week. Bloomberg, 02 Oct. 2014. Web. 06 Oct. 2014.

<http://www.businessweek.com/articles/2014-10-02/microsoft-looks-to-china-for-an-xbox-one-rescue#r=nav-f-story>

Netflix’s First Original Movie.

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Images:

CTHD:http://www.maactioncinema.com/wp-content/uploads/2014/05/film-crouching-ti.jpg

Netflix logo: https://pbs.twimg.com/profile_images/483716154498633729/VdpuuFke.png

Video-streaming company Netflix has signed a deal with a mini-major film studio Weinstein Company to distribute the company’s very first original motion picture, a sequel to the successful 2000 wuxia film “Crouching Tiger Hidden Dragon”.
The upcoming film which will be released in August 28, 2015 on both Netflix and selected IMAX theatres around the world is tentatively title “Crouching Tiger Hidden Dragon: The Green Legend”. The move will mark the first time a video-streaming company would distribute mainstream motion picture similar event when Netflix startred to release original programming “House of Cards” and “Orange is the New Black”.

The move is one of many in recent years  made by video-streaming services like Hulu and Amazon Prime (the latter of which is also releasing their first web-series this fall) that is shifting focus of entertainment away from theatre and television into digital online environment. The early 2010’s also saw an increasing trend in streaming websites as well as decline in overall television viewing showing the capability of Netflix and other streaming companies making a wide emergence of digital entertainment services.

As Harvey Weinstein, the founder and CEO of Weinstein Company puts it “The moviegoing experience is evolving quickly and profoundly, and Netflix is unquestionably at the forefront of that movement.” 

Relating to my knowledge from the Comm 101, the following strategy could be a form of mixed cost or fixed cost for Netflix. Regardless, the news is yet one of many to signal the rise of digital cinema.

Works Cited
Spangler, Todd. “Netflix, Weinstein Co. Bust Windows With ‘Crouching Tiger’ Sequel Day-and-Date Release.” Variety. N.p., 29 Sept. 2014. Web. 02 Oct. 2014.
<http://variety.com/2014/digital/news/crouching-tiger-hidden-dragon-sequel-netflix-weinstein-co-1201316645/>

Business ethics

Nestle Takes on Animal Cruelty.

For years, the world’s largest food company Nestle had been criticized for variety of reasons including infant formula in 1970’s LEDC countries, price fixing of chocolate, and unequal palm oil use. However, recently the company was one of many to introduce the policy of safe animal treatment. The new policy tackles issues involving drugging of chickens to make them grow quicker and bigger as well as mutilation of animals cutting of their legs, hands and tails specifically the pigs. The company is one of many during the last decade to change its stance on methods of food production, one of which is fast-food company “Burger King” introducing a similar policy in 2012.

Personally, I do not support Nestle as I am well aware of all the wrong business decisions they’ve made in the past but I believe that even if Nestle throughout history has been a polarizing company the newest step that they took will be beneficial for the company’s reputation. I also came to the conclusion that ethics plays a big role in determining the firm’s overall image as well as ethical status.

Source of article and image:

http://www.livescience.com/47747-nestle-adopts-humane-farming-policy.html