Category: Uncategorized

The post is about how a good organizational culture within a workplace can enhance teamwork, trust and ingenuity between employees. According to a study by Harvard Business Review, the more communication a team has outside of formal meetings, the more productive it is likely to be. This is because as employees start to build connections with each other on any level, professional or not, it can help build a collaborative culture that is based on trust, thus will directly impact collaborative efforts.

The post reminded me of the class ‘People, Culture and Teams’ from COMM 101 about how the positive organizational culture of Zappos, the online shoe retailer increases the productivity of the workers. Zappos provides a comfortable atmosphere in its workplace, and Tony Heish, the CEO of Zappos only has an office corner, and does not place himself higher than employees that are lower in power than him. The concept the post brought up also relates to our everyday lives but in a smaller scale such as working on group projects. As a team is well bonded with each other, the team will know how to work with each other and thus can enhance productivity within the team.

(Source: Why Work Should Be A Little More Fun)

Wal-Mart Stores Inc. launched a mail subscription service called “Goodies” last Wednesday. For a monthly fee of $7 that includes tax and shipping, customers will get a box of five to eight sample-size food items. The food items range from organic to ethnic products that are not currently carried on Wal-Mart’s shelves. Customers can sign up through the Goodies website, and customers can even post reviews on the website to earn loyalty points, which the points in turn can be redeemed for items in store.

 “Goodies” not only gives customers the privilege to try the newest products before they are in stores, but also allows customers to tastes products in sample sizes without having the need to purchase the full-size versions, not knowing if they will enjoy it or not. The “Goodies” service of Wal-Mart is an effective marketing strategy as it differentiates itself from competitors that only deliver flyers to households in advertising products. Customers can also review products online to earn loyalty points that can later be redeemed for items in stores. The reviews will be valuable information for Wal-Mart as it will allow them to identify popular products, and to reduce the inventory of products with bad reviews, thus catering its customers.

(Source: Wal-Mart Is Rolling Out A Subscription Food Service Called ‘Goodies’, Goodies)

Sharon’s blog is about how brand appearances are important to consumers, and that companies should do a brand research before rebranding of a product, as it will affect consumers’ behavior. PepsiCo rebranded the packaging of Tropicana orange juice, however, there was a bad reaction from customers that it looked like an own-store discount brand.  PepsiCo quickly returned to its original packaging carton image, and within two months, the sales were increased by 20%.

I agree with Sharon that doing a brand research before rebranding is important as an ineffective rebranding will not only confuse consumer with its product, but may also lead to a decrease in sales.  The blog post reminded me of an ineffective rebranding of Coke last December. In supporting of World Wildlife Fund to help save polar bears, Coca-Cola rebranded the classic red can into a white can with polar bears on it. Even though the approach of changing its cans to raise awareness of the cause was encouraging, the white can received complaints from customers as they felt it looked too similar to the Diet Coke can. As Coca-Cola realized the rebranding created confusions to customers, the recognizable red can was returned to the market a month after.

Sources: Sharon’s Blog Post, http://money.uk.msn.com/investing/photos.aspx?cp-documentid=157654000&page=3)

Janice Cheam shared her experiences of what it is like to be an entrepreneur last Thursday.

Janice Cheam is a Sauder BCom grad with a specialization in Marketing. During her fourth year in UBC, she along with five teammates came up with a project idea and developed a business plan for it. As the business plan was successful and won cash prize from Enterprize Canada, Janice decided to put her project idea into action. She presented her business idea to Angel Investor, hoping to seek funds to start her own company. Angel Investors supported her idea, and that is when Janice started to think about the value of her company!

Energy Aware is based in Vancouver and was founded in 2005, with a vision to connect people to resource conversation. Janice Cheam introduced us the Power Tab, which is an in-home energy display that gives a simple reminder of our everyday use of energy and resources. It tells us how much energy we are using, and how much it is costing us.

Energy Aware works with a number of big utilities such as BC Hydro, which will sell the Power Tabs to consumers on behalf of Energy Aware. Janice said that customers can soon order online, however, there are several concerns such as ways of delivery and inventories problems for online ordering.

Currently, Energy Aware manufacturers Power Tab based on order demanded by big utilities. If Energy Aware were to sell products online, it will be more risky for the company as it will have to manufacture products first, then hoping for orders after.

Energy Aware Homepage:
http://www.energy-aware.com/

Starbucks opened its first store in Indian on Friday. The store is located in a historic building in southern Mumbai and is described as ‘the most elegant, beautiful, dynamic store’ by Howard Schultz, the chief executive of Starbucks.

As coffee houses are still a relatively new trend in India, there is no surprise that Starbucks have spent over six years studying the local market before making the decision to enter the industry. Market research not only helps reduce uncertainty, but also aids in decision-making. The study of consumer behavior and how Starbucks positioned itself is greatly reflected through the store.  As Starbucks’ coffee prices are relatively higher than other coffee shops, the target market is for people with moderately high income. Starbucks is located not far from a vast Hermes shop and a stately local park. By locating Starbucks near high-end stores, it can attract customers that can afford Starbucks despite the high prices.

Starbucks in India also provides points of difference from other existing coffee shops as the menu not only provides popular western pastries, but also includes local pastries such as Elaichi Mawa croissants and tandoori paneer rolls, in order to accommodate customer’s tastes preferences.

(Source: Starbucks opens first ‘shrine’ to coffee in tea-drinking India)

Kayla’s blog talks about how McDonald’s Canada Campaign “Our food. Your questions.” helps reinforce McDonald’s image as a fast food restaurant as it creates an opportunity for McDonald to rebut negative claims from customers and to reposition itself in the fast food industry. I agree with Kayla that the campaign is an advantage to the restaurant as it not only helps reassure consumers’ concerns about the food products, but also builds a connection with its consumers. With having the presence of E. Coli in beef few months ago, consumers could easily express their concerns about the beef used in McDonalds by asking questions through the campaign. The campaign efficiently reassured consumers that the beef was safe to eat, thus preventing consumers of being undecided with the product quality when buying the burger the next time.

With having a 10-member “social media response team” to answer consumer’s questions through text, photos and videos in the campaign, it reflects that McDonalds values consumers’ concerns highly and works its best to provide a clear and precise response. I was reviewing some of the questions and responses on McDonald’s website, and the video below was a response to one of the questions “Does your Egg McMuffin use real eggs? They look too perfect” on the campaign. Enjoy!

Video: Real Egg Crackdown

(Source: Kayla’s Blog Post, McDonald’s Webpage)

The world’s largest beverage company Coca-Cola introduced its new product, Dasani Drops in early September. The Dasani Drops are liquids that can be squeezed into water in order to create a fruity flavor.

Even though Coca-Cola is not the first to come out with flavor drops, the company still seeks big potential for growth with Dasani Drops. Referring to the company’s SWOT analysis, I believe that the S-O strategies will allow the Dasani Drops to become successful in the market. Coca-Cola’s strengths is that the company has a very strong brand name and a good reputation among customers; therefore as it introduces Dasani Drops, reaching out for customers will certainly not be a problem for them. Also, with having a great turnout for Kraft Food Inc’s MiO, the first company that sold flavor drops for their product, Coca-Cola will be guaranteed that the drops will be popular in the market. As healthy living is becoming a trend in the market, it creates an opportunity for Coca-Cola to introduce zero calories Dasani Drops, as well as packaging them into small containers for consumer’s convenience. Even though Coca-Cola is not the first to position flavor drops in the market, the S-O strategies shows that Coca-Cola has the potential to succeed with its new Dasani Drops.

Source: http://www.vancouversun.com/business/Coca+Cola+unveils+marketing+move+Things+better+with+drops/7207485/story.html

A Google-inspired commuter bus club, Pacific Commuter was launched by two metro Vancouver tech workers. The purpose of launching a commuter bus club is to help employees to turn their commuting time into working hours, so that they will have more time to spend with their families. The deluxe coach includes coffee services, wireless Internet, leather seats and marble topped tables, which is to create a luxurious experience for commuters.

The kind of services that Pacific Commuter provides is very unique. It relates to our class on ‘Positioning and Value Propositions’ as the company has clearly displayed its perception approach and target market. Pacific Commuter defined a problem of people spending too much time on commuting leading to not having enough time with family. Therefore, it provided a solution that not only allow people to make better use of commuting time, as well as creating an incentive as some companies even allow employees to take Fridays off if he/she works during his commute. Pacific Commuter targets people who drives, and can work as long as there’s computer and Internet connection. By identifying a smaller group of consumers, it is easier for Pacific Commuter to focus on and to provide the best facilities for its specific target market.

Video about the Pacific Commuter Club: Click Here

Source:  http://www.vancouversun.com/business/innovation/Google+inspired+commuter+hoping+lure+people+their+cars+with+luxury+mobile/6863938/story.html

Have you ever made numerous trips to specialty stores just to buy green products? If so, you may want to check out the Terra20 store, which stock everything from environmentally friendly cleaning products and kitchen supplies to clothing, makeup, and even light fixtures!

According to the article, two entrepreneurs have planned to create a national retail chain, starting an eco-friendly store in west-end Ottawa. Terra20 aims to make it easier for people to find ecologically sensitive products, by stocking in more than 12,000 products from 400 brands in store. Terra20 even has eco-friendly cleaning supplies, and the products will be dispensed into containers that shoppers bring themselves, further cutting back on packing and waste.  Even though the whole concept is a ‘huge risk’, being the first eco-friendly department store will make them positioning as a leader in the market, and that they will not have any competitions yet. Terra20 aims to create a comfortable shopping experience for consumers as they sell a variety of products ranging from food and clothing to makeup, they also provides natural organic food and goods that promote personal health. According to a research, it shows that between 13 and 19% of all Americans are already consumers of green products. Even though the target market for the store is not a huge number yet, I believe that the number will grow overtime as green products are getting more popular nowadays. The name of the store Terra20 is also unique as it contains the meaning of the year 20-something will be a year we get it right, which I believe will get people excited about the store.

Source: http://www.vancouversun.com/business/Startup+stop+store/7192706/story.html

Having good business ethics is beneficial to the company as it gives a good reputation, however, some major brands may not view business ethics as their top priority when it comes to making money.

According to the article “Apple and the Ethical Problems of Child Labour and Other Unsavory Practices”, two business ethical issues are raised regarding Apple and its suppliers. A report reveals that 11 minors were found in the factories that manufacture their products, and not only were these workers receiving less than the minimum wage, but were also on the job for longer than the maximum 60 hour work week. The other ethical issue in the article is the illegal use of chemical, n-hexane in Wintek Suzhou, a major supplier of components for Apple’s products. Apple had caused 49 workers into n-hexane poisoning, as the company illegally used hexane in place for alcohol for the workers to clean the mobile phone screens.

The business ethical issues in the article have definitely shock people as they discover the human cost that has been put in making an Apple product. Some ethical issues of a company may lead to a decrease in sales. However, with Apple, a major brand in the world, it seems like their constant new waves of products have drift away the public’s attention toward the actual costs of their innovative products.

Sources:
http://www.itbusinessedge.com/cm/blogs/enderle/apple-and-the-ethicalbusiness-problems-of-child-labor-and-other-unsavory-practices/?cs=39724
http://gizmodo.com/5481832/child-workers-discovered-in-apple-factories
http://www.chinatechnews.com/2010/02/22/11610-n-hexane-poisoning-scare-at-apple-supplier-in-china