Game of Thrones is one of the most popular TV shows presently airing, which has created a new market for tourism in previously unimpressive areas. The blog Making Game of Thrones is one example of a cause of this, with staff writers and other film insiders providing beautiful photos and a real-life view of people’s favourite show in the works.

However, what effect has Game of Thrones had on these filming sites?

Game of Thrones is estimated to have produced almost 65 million dollars of value for the economy of Northern Ireland. In other filming locations such as Morocco, hotels and other parts of the tourist industry have reported enormous gains in occupancy rates and demand. Clearly, Game of Thrones and the culture and fandom surrounding it not only present a value proposition to those directly tied to the consumption of the content, but also to businesses and countries that operate in filmed areas.

Northern Ireland has recognized this, and through several governmental programs £9.25 million has been given towards productions as of April 2013. It’s clear that there is a component of shared value in the value proposition of the show, which has provided an economic opportunity to both Northern Ireland and the show’s producers, which they have clearly exploited to great effect. This arrangement also has the added benefit of further reducing their costs by providing producers with leverage in dealings with other countries and filming locations. By leveraging the deals and growth previously seen, Game of Thrones can and has been lowering its costs in order to ensure further profitability, a step that is innovative and uniquely rare within the television industry.

Sources Used

http://www.makinggameofthrones.com
http://static.squarespace.com/static/52fc05c9e4b08fc45bd99090/t/542db6e7e4b0d845f5175f07/1412282089077/?format=1500w
http://en.wikipedia.org/wiki/Game_of_Thrones#Effect_on_location

Peter Hawkins’ blogpost on the topic of disruptive innovation intrigued me, but I came to a few different conclusions than he did.

First of all, I find it unbelievable that no company was serving this market previously! I guess in retrospect every idea seems basic, and I think that recognizing an unserved customer need is an important value proposition for emerging startups (which may influence my company in the future).

There are several food services that order food through fast food restaurants that don’t typically offer delivery services, however, Foodee builds upon this model, offering high quality food with professional delivery, primarily catering towards office clients.

Crucially, this online-order based system allows for the storing of consumer information, allowing preferences, allergy information, and other pertinent details to be saved. This means that if a consumer such as myself, a celiac, wished to set up a recurring catering system through my company, Foodee would consistently suggest gluten-free options to ensure that every person is satisfied. I feel as though this system presents clear benefits when contrasted with relatively less personalized services that don’t offer these important distinctions. These points of difference show why Foodee has been successful in breaking into this market with their innovative business plan.

Sources Used

Home ABC Test

http://www.theglobeandmail.com/report-on-business/small-business/starting-out/how-foodee-is-shaking-up-the-corporate-catering-industry/article21161624/

http://thefoodqueendotcom.files.wordpress.com/2011/09/foodee_logofox_web.jpg

Giancarlo Gatti’s blog reminded me of the well-publicized struggles of HSBC within the media.

The article he referenced presented a strong analysis of HSBC’s issues with organizational culture.

To me, HSBC is a textbook example of prioritizing profits at the expense of responsibility. In order to keep cash flowing, HSBC failed to conduct due diligence and allowed billions of dollars of cartel money to become legitimized.

Moving forward, however, something must be done. The United States’ mandated restructuring plan was a strong start, however, it doesn’t necessarily tackle the root of the problem. If individual agents see opportunities to conduct themselves in an unethical manner and are rewarded for it, it distorts the incentive model of the bank, and threatens to destroy culture. Not only do banks need to ensure that they have ethical people in their teams, they also need to ensure that these individuals can never be tempted to exploit these opportunities. Ultimately, I believe that the government has to provide banks with a helpful nudge in the right direction – through stricter oversight, and heavier fines, the government can eliminate opportunity, while banks rework their corporate culture to eliminate the incentive.

Sources Used

http://www.scmp.com/business/article/1553555/hsbc-seems-find-it-easier-pay-fines-fix-corporate-culture

http://gulfbusiness.motivate.netdna-cdn.com/wp-content/uploads/HSBC-good3-620×310.jpg

HSBC: Changing Organizational Culture

” If  the United Nations was fully funded why would we need the Arc or social enterprise”?

The question posed here is difficult to answer directly, but the short answer is this: We would need social enterprise and other ventures like the Arc because the UN is inefficient, and cannot solve every problem.

In an overarching sense, the United Nations is a macro organization, in that they deal with large-scale problems and create conceptual frameworks. Organizations such as the IMF, World Bank, or WHO are all examples of this. While there is some specificity, and some entrance into smaller projects, these UN commissions typically focus on larger issues facing LEDCs and the rest of the world.

Obviously, if the UN was fully funded, these agencies might reposition themselves, and carve out new responsibilities. However, would they be equipped to fulfill these obligations alone?

There are many problems in the world, and so many different circumstances which would prevent this. Firstly, this would drastically increase the power and funding of the United Nations, and who is to say that this funding will be distributed equitably? Will the expanded UN target world health projects on a cost-per-life basis, thus neglecting issues like Ebola in favour of Malaria? Will development projects favour countries outside of sub-Saharan Africa? As well, unlike small, mobile NGOs, these UN organizations will be subject to the whims of political leaders, and will be unable to escape notice. This could complicate operations in countries such as the Democratic Republic of Congo, or other war-torn areas where political considerations stem the flow of aid.

The Arc Enterprise and social enterprise organizations may not be the most efficient way of allocating aid, however they fulfill niche requirements, and allow for more specific application of aid. With UN organizations such as the Convention to Combat Desertification causing inefficiency and waste, it is clear that a large bureaucratic United Nations may be less targeted and effective than these smaller, more specialized organizations, and has to work in conjunction with them to achieve the optimal result for bettering society.

Sources Used

http://www.thestar.com/news/canada/2013/03/28/canada_saw_bureaucracy_and_inefficiency_in_un_convention_on_deserts.html

http://www.thestar.com/content/dam/thestar/news/canada/2013/03/28/canada_saw_bureaucracy_and_inefficiency_in_un_convention_on_deserts/wajir.jpg.size.xxlarge.letterbox.jpg

http://en.wikipedia.org/wiki/United_Nations#Specialized_agencies

One of the most aggravating yet inevitable occurrences is the announcement of yet another delay in the creation of a pipeline or industrial project as a result of First Nations legal challenges.

The Northern Gateway oil pipeline has faced numerous challenges in its conception. Firstly, it has had to face environmental standards testing. The pipeline has faced stiffness in cooperation with the BC government – a conflict wherein BC erroneously asserted that it deserved compensation for the pipeline’s existence, despite the fact that cross-province resource transportation operations should not face this burden.

Finally, Northern Gateway faces difficulty in dealing with the land claims of 40 separate First Nations groups whose territory is crossed by the pipeline. I find it extremely difficult to sympathize with First Nations groups in this case, and most related ones. Environmental concerns are almost always overblown – spills are extremely rare, and even if one was to occur, fair value for unrecoverable assets can be determined. I recognize the fact that in an extremely unlikely spill scenario, areas that are significant to First Nations can be damaged, perhaps permanently. However, the downright refusal to allow pipelines to pass through their territory is unsustainable. The decrease in the quality of life of these Nations due to the loss of small portions of these traditional lands is minimal, while this, and other projects, represent major opportunities for Canadian industry, and by extension, all Canadians. Consistently holding projects like this hostage is unsustainable, and I support the federal government’s attempts to push this project through.

Sources Used

http://www.vancouversun.com/technology/There+will+pipeline/10122968/story.html#__federated=1

http://wpmedia.business.financialpost.com/2013/12/fp0410-northern-gateway.jpg

Christmas-time is a magical time for retailers: sales in this quarter are higher than any other. Complicating this already-stressful season is the entry of competitor Target into the Canadian market, especially now that they’ve ironed out their initial inventory problems. With an extremely competitive atmosphere fraught with undercutting, retailers need a strong marketing strategy to differentiate themselves, and ultimately win the battle for the mind of the consumer.

The Financial Post provides two recommendations for retailers in this article. The first is a cost leadership strategy, while the second is both a differentiation, and focus differentiation strategy.

Ultimately, I believe that the differentiation and focus strategies will be more successful this season. The article points out that despite lower gas prices, consumers this season will be more responsive to price decreases thanks to rising personal debt and mortgages. However, all retailers will be attempting to lower prices, and these will end up simply as points of parity in a race to the bottom.

The strategy of Target, for example, to offer exclusive merchandise with celebrity endorsements will certainly attract a segment of customers who are seeking something quite specific. By drawing in these customers with differentiated products, Target can entice them to purchase other goods that would otherwise not be as attractive.

Which Strategy is Best?

I believe that retailers should disregard this article’s advice – a cost leadership strategy as outlined by Michael Porter will most likely be unsuccessful. Rather, Target should invest significant resources towards the provision of differentiated goods, and strong marketing to cement Target in the consumer’s mind.

Sources Used

http://business.financialpost.com/2014/10/30/key-to-better-holiday-sales-brand-tie-ins-says-new-report/
http://www.quickmba.com/strategy/generic.shtml

http://upload.wikimedia.org/wikipedia/commons/0/01/Target_store-Springfield-2005-10-15.jpg

What is a Green Bond?

Green bonds are a tax-exempt bond which is issued by federally qualified organizations and/or municipalities for the development of brownfield sites and sustainable projects¹.

Why are Governments Issuing Green Bonds?

By providing a more attractive option with no tax, governments can incentivize corporations to develop sustainable projects. These projects must meet minimum requirements to be considered “sustainable.”

The National Post recently published this article which outlines the emerging success of the green bond market. With several major players entering the market, green bonds are becoming legitimized, through their organization into indexes and general availability.

Why is this Important?

Green bonds are an excellent example of creating shared value, and promoting sustainability through responsible and practical government policy that incentivizes, rather than punishes, firms. Green bonds create shared value because both companies and society benefit. Companies receive a tax free bond, while also improving upon their ethical considerations and image. Society benefits as brownfield sites are repurposed and redeveloped, whereas without these policies they would remain waste sites. Furthermore, society benefits through the actions of companies to reduce their ecological impact, primarily through adhering to LEED standards. The sole cost of this policy (assuming the government only backs ventures that do not default on payments) is the loss of interest revenue on bonds issued, however, this is a small price to pay for the benefits shared by all.

Sources Used

http://business.financialpost.com/2014/11/07/how-the-green-bond-market-will-develop/
http://www.investopedia.com/terms/g/green-bond.asp

₁ http://www.investopedia.com/terms/g/green-bond.asp

The recent collapse in oil prices has led to a severe depreciation of the Canadian dollar and has sent world markets reeling. Canada’s dollar is heavily tied to resource prices, and as a petro-dollar, expected future oil prices have a large effect on the stock market, exchange markets, as well as future industry projects.

This article from Thestar presents compelling analysis and speculation on oil prices for the future. However, based on my analysis, this article understates several important factors. Firstly, the article claims that “Iranian oil has been largely held off the market due to sanctions[….]If negotiations can resolve that issue, production from the world’s second-largest holder of conventional oil will flood an already glutted market.” This analysis understates the urgency of a nuclear deal in the eyes of Tehran. In fact, it’s quite likely that Rouhani will bow to internal pressures within Iran, which is facing a 19.4% inflation rate and 16.4% unemployment.

This pressure is underscored by this Haaretz article which outlines the possibility of a deal by November 24th. A supply shock such as the reemergence of Iran on the world markets would negatively impact the Canadian oil industry, and would certainly cause further depreciation of the Canadian dollar, as well as losses within the TSX, which is heavily reliant upon resource prices.

Sources Used

http://www.haaretz.com/news/middle-east/1.625316
http://www.thestar.com/business/2014/11/07/collapse_in_oil_prices_should_come_as_no_surprise.html
http://en.wikipedia.org/wiki/Economy_of_Iran

http://www.aljazeera.com/mritems/Images/2013/6/11//2013611165820528734_20.jpg

Entrepreneurship is the most appealing specialization option to me, yet I’m apprehensive in considering it. This apprehensiveness is primarily due to my fear of failure, and fear of the unknown.

The New York Times article linked below outlines the conference called FailCon, which is dedicated towards celebrating failure. The article presents some staggering stats (gathered by HBS): 30 to 40 percent of venture-backed startups blow through most or all of their investors’ money, and 70 to 80 percent do not achieve their expected return on investment. However, despite the bleak outlook, innovators continue to innovate, and create value where it previously wasn’t perceived to exist.

Pictured above are 2 entrepreneurial alumni, Paul Davidescu and Paul Gill, along with professor Paul Cubbon. I found the interactive class session with these entrepreneurs to be immensely informative, and also found that it gave me more insight into the idea of failure. When Paul Davidescu of Tangoo spoke about the failure of his company, and the subsequent restructuring and rethinking of his business plan, I was reminded of my love of the dynamic, intense, and rewarding nature of entrepreneurship. His ability to turn failure into a learning experience followed the same ideals as the FailCon conference. Ultimately, I believe that this lecture will significantly impact my decision to specialize towards the end of second year.

Sources Used

Comm101 at The UBC Sauder School of Business Facebook Page:

https://fbcdn-sphotos-c-a.akamaihd.net/hphotos-ak-xpa1/t31.0-8/10380237_888472844497560_7255868019600428509_o.jpg

http://www.nytimes.com/interactive/2014/06/30/us/annotated-supreme-court-hobby-lobby-contraception-decision.html?_r=0

Milton Friedman wrote the piece The Social Responsibility of Business is to Increase Profits to stress the importance of business taking a profit-maximizing approach and maintaining a firm policy of self-interest, as opposed to making decisions for social or political reasons. The Hobby Lobby case in the United States is an example of how a closely-held private business can choose not to follow the teachings of Friedman or competing theories such as those of R. Edward Freeman, and draw the ire of the public to the detriment of the business.

The decision by Hobby Lobby to not provide morning-after contraceptive is not necessarily economically sound. The cost borne by the firm to train new employees as mothers go on maternity leave, as well as the legal battle that ensued as a result, have costed significantly more than any contraceptive policy under the ACA. In essence, Hobby Lobby took a stand according to its owner’s personal code of ethics, and as a result harmed their company.

By choosing to follow their personal code of ethics, rather than react to the social pressures placed on them by the majority, who favour a more liberal approach to the use of contraceptives, Hobby Lobby has became infamous, but scarred. Evidently, ethical considerations in this case will play a huge role in the future performance of the company, and also pitted the employees of the company against its owners.