Jason Mah's blog

Recently I read a blog post regarding an online encyclopedia which has been the lifeline to many students’ assignments and a source of knowledge for many others: Wikipedia. My views about Wikipedia, their business model, their values, their approach, differs drastically from Lurie’s. Lurie makes the claim that Wikipedia  shouldn’t exist because  “it’s basic operating procedure defies our strongest convictions about incentives, work and community” (Lurie). His argument stems from the view that Wikipedia has limited regulation of their service and that the service does not turn a profit. In opposition to the statements made in Lurie’s post, Wikipedia still does use a top-down approach for managing its anonymous editors, administrators and stewards. As he very opportunely suggests in his post, Wikipedia has many knowledgeable and competent individuals vying for the sought after roles of stewards and rollbackers just to name a few. These individuals apply to work for free. From a business perspective, employee satisfaction seems far from being an issue!

Wikipedia as a service is completely customer orientated. Its success is largely attributed to its ability to offer value propositions which other online encyclopedias are unable to deliver. Most notably is the ability for any user to edit the vast archives of knowledge provided by Wikipedia. Lurie does make the observation that “people find it inherently satisfying to participate”. From another perspective, Wikipedia successfully models a business which has strong customer relationships and partnerships with key resources. Wikipedia is the sixth most visited website on the internet and has stewards who have a long list of impressive credentials. In essence, a company reaches a whole new stratosphere of success when both the company and clients strive towards the same vision and values. Profit then becomes a natural part of the process.

Image taken from here 

Source referenced:

Lurie, Stephen. “The 36 People Who Run Wikipedia.” Medium. Matter, 5 Nov. 2014. Web. 9 Nov. 2014.

There is a growing worldwide effort for improving humanity and becoming an interdependent global community. The United Nations (UN), initiatives such as The Arc Initiative and social enterprises are fundamentally changing the way we understand aid and how we make a difference on a global scale. These various organizations and efforts work collaboratively to improve our world. Theoretically, even if the United Nations was fully funded, efforts such as The Arc Initiative and social enterprises would be necessary nonetheless. Global change is effected by a variety of organizations. The United Nations represents a governing body which determines development goals and methods by which to achieve those goals for the global community. Furthermore, they act as a organization of neutrality and impartiality. In conjunction to the United Nations’ engagements, they rely on projects and social enterprises to produce the desired change from a level of smaller scale.

For example, one of the UN millennium development goals is eradicating extreme poverty and hunger. At a global policy level, the UN is effective in raising global awareness and to incite action on this goal. However, the progress towards this goal is made by projects such as The Arc Initiative and social enterprises. After reading this article, I was thoroughly convinced that the most direct way to effect change is through programs which allow entrepreneurs to advance their business by applying business strategies and tools. From another perspective, social enterprises are effective in creating this change since they balance making a profit and reinvesting the capital into making a better society. Social enterprises are in essence are fostering social stewardship while also maintaining a sustainable business.

Sources Referenced:

Article taken from here

Images taken from here and here

Every firm or company requires some form of organization management. It is essential for the firm to have a system by which the employees adhere to in order work cohesively. Human resources management guides and develops a company specific model for the organization of employees. I recently came across this article which directly addresses the issue of how companies manage their male employees responsibility towards  their family and the social stigma which fatherly roles entail. The article exposes how many men are unable to take paid paternity leave because their company does not offer the option. Although there are government policies which allow men to take paternity leave,  many men are bound by the “pressure and unwritten expectations”(Miller) they are subject to within their companies.

Firms are rapidly realizing that conventional social stigmas are rapidly changing as society evolves at the fundamental level. It is becoming more commonplace for men to take paternity leave as there is an increasing number of households where women are the primary breadwinner. Without a distinctive company culture which is shared by all the employees, policy and suggestions are limited. For example, Miller observes that Ernst & Young encourages men to take paternity leave, however very few men take all the allotted time. From an alternate perspective, this shows that the company has the intention to support their employees. However, the employees are concerned with the consequences of taking the encouraged leave. Companies such as Ernst & Young are making progress in human resources through showing their support for their employees. At a more fundamental level, companies can better build employee relationship and loyalty through establishing a unified company culture.

Source referenced:

Miller, Claire. “Paternity Leave: The Rewards and the Remaining Stigma.” The New York Times. The New York Times, 7 Nov. 2014. Web. 8 Nov. 2014.

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An activity that has gained popularity in the digital sphere is music streaming. A ubiquitous issue for streaming service providers is how to differentiate from their competitors in the industry. Companies often appeal to their customer segments by offering value propositions and points of differences. These efforts in turn provide them with a comparative advantage over their competitors in the industry. As seen in this article, Tidal is launching a platform in the UK and US which charges twice the price of its rivals for the proposition of a quadrupled standard in music quality.

In response to Sharon Zhao’s blog post found here, Tidal does not need to embrace the widespread freemium business model that many competitors in this industry choose to adopt because Tidal is positioning itself as a premium service which dominates the exclusive market of audiophiles who are willing to pay for high quality music. The Scandinavian tech company Aspiro  launched Tidal which offers value propositions which its rival firms are unable to match. The consumer is often willing to pay more for a unique service or product, and in this case, Tidal is offering over 25 million songs, 75 thousand music videos and interviews and editorials of emerging artists. Competitive markets often pushes firms to re-position themselves to achieve more market dominance. This often means differentiating from other firms in the industry. Unlike its competitors, Tidal doesn’t offer a free version of its services. This indicates that the firm targets a customer segment which is willing to pay a high price for high quality service. Other similar streaming service providers such as Deezer, Spotify and Qobuz are trailing Tidal in their ability to offer lossless quality music streaming technology and will still rely heavily on the freemium business model which has such a firm grasp on this particular industry.

Sources Referenced:

Dredge, Stuart. “News Technology Digital Music and Audio Tidal Takes on Spotify with Lossless-quality streaming music.” Digital Music and Audio. The Guardian, 28 Oct. 2014. Web. 29 Oct. 2014.

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Social enterprise has been gaining momentum as a movement and the issue of corporate social responsibility has made its way from boardroom meetings to dinner table discussions. Business ethics and social stewardship becomes and increasingly integral part of many companies’  core values and vision. Contrary to the notion that a firm must have deep pockets in order to make a change, two young entrepreneurs from Charlottetown are making a difference with their company Kioha. As indicate by this article Hughes and Manning have created a social enterprise which is making a difference for the youth in their community.

An aspect of social entrepreneurship which Hughes and Manning approach in a different manner is that of philanthropy. Kioha follows the concept of reinvesting profit into the community. This differs largely from many large firms wherein their contribution to the society is in the form of a pledge. Hughes and Manning’s approach of reinvesting into the community through youth programs is novel. Kioha demonstrates its social stewardship through its large stake in initiating youth programs. In addition to a social enterprise representing a commitment towards benefiting society, it also represents a sustainable business in the financial realm.  Both Hughes and Manning are aware that the change they are making in the community they must equally grow their company. The company’s primary channel is through their website. As opposed to creating more channels, Kioha is developing new partnerships with other social enterprises to create a greater change for youth. Kioha is being established as a social enterprise which acts as a platform from which Manning and Hughes can effect a change of a larger scale. As Manning would describe, he intends Kioha to be “something that will be strong and reliable and a part of the society and community”.

Sources referenced:

Heald, Melissa. “Young Entrepreneurs Want to Give Back.” – Business. The Guardian, 19 Oct. 2014. Web. 20 Oct. 2014.

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When a large decision is made, contention is inevitable. However, when a gargantuan project the size of BC Hydro’s Site C is proposed. Many more voices are calling to be heard. As shown in this article, Site C project is a controversial hydroelectric generation station on the Peace River in Northeastern British Columbia being proposed by BC Hydro, the province’s principle energy company. The project is currently awaiting determination on the company’s proposal. Although this project is of high value economically to both the government as well as BC Hydro, many industry forces are slowing the progress of this proposal and pose a significant threat to a positive determination on the proposal.

A key stakeholder impeding the progress of this decision is the Tsilhqot’in First Nation. Aside from the government and BC Hydro, the First Nation affected by this decision has political, economic and social role in this decision. The First Nation, which has inhabited the land in question has inhabited the territory for many generations. As a result, the Tsilhqot’in First Nation has been de jure in title of the land. This project would economically benefit the company and the government. However this economic benefit is marginal with respect to the First Nation. The controversy surrounding this contention is centered around the political statement and social unrest an approval of this proposal would be. In essence, a widespread awareness of the consequences this project would have on both the aboriginal land and its inhabitants raises questions about business ethics. Sources cited: O’Neil, Peter. “First Nation Chiefs to Stage Site C Showdown.” First Nation Chiefs to Stage Site C Showdown. Vancouver Sun, 18 Sept. 2014. Web. 7 Oct. 2014. Picture taken from here

Image taken from here

In recent years, outsourcing and exporting production away from the company’s home nation has been a trending strategy to reduce costs and maximize profits. Providing that outsourcing labor to a different country may reduce costs and maximize production, moving production away from the home country often raises issues of national pride. In the article found here, Pitas argues that government intervention and a unique case of globalization has resulted in British automakers overtaking French automakers. I must agree with Pitas in his position that it is government intervention and policy is a key determining factor as to where a company locates its production. In the article, the gravity of a company moving away from its host country is clearly expounded. Exporting production to a foreign country has a large impact on the local employment market. Meanwhile, from a positioning perspective, it makes sense from a managerial perspective for a company to minimize costs in order to maximize their profits. As Pitas mentioned, the dilemma of whether to outsource production efforts to a foreign country is not black or white. I would say that although this is pointing out the obvious, it is true that their are both benefits to outsourcing production such as minimizing production costs and taking advantage of government incentives. On the other hand, the argument that many losses such as employment and national pride also comes with the exporting of labor. In essence although exporting labor may not be black or white, it may be the current prettiest shade of gray.

Citation: Pitas, Costas, and Gilles Guillaume. “Special Report: In Foreign Hands, British Automakers Overtake France.” Reuters. Thomson Reuters, 1 Oct. 2014. Web. 1 Oct. 2014.

Uniformity and a strong brand equity are important pillars of any company. However, developing a unique and consistent brand can sometimes result in undesired outcomes. Abercrombie has had multiple lawsuits against them for discrimination both towards customers as well as towards their employees. Through this article, I asked myself whether it is possible to create an exclusive brand without being exclusionary. In essence, it is. However certain values must be prioritized over interest in profit.

In a 2004 lawsuit against Abercrombie, the company was accused of hiring a disproportionate sales force and once again in May of 2013, Abercrombie’s CEO openly stated that the company only sells to ‘thin and beautiful’ customers. From a social critique point of view, statements made by both the CEO and the company’s recruitment division as seen in this article may be seen as derogatory. However from a strictly business approach, Michael Jeffries (CEO) makes a valid claim. He suggests that when a company becomes “totally vanilla, you don’t alienate anybody, but you don’t excite anybody, either.”

Abercrombie takes a differentiation approach by focusing on a targeted group of consumers, the young and popular. And even with the negative spotlight due to the large consumer base it marginalizes, the company thrives. From a socially responsible perspective, Abercrombie maintains its specific consumer base and expresses that equality is not part of its core values.

Sources referenced-

Articles:

Murray, Rheana. “Abercrombie & Fitch Targets Skinny Shoppers, Won’t Sell Larger Sizes for Plus-sized Women .” NY Daily News. Daily News, 9 May 2013. Web. 23 Sept. 2014.

Leung, Rebecca. “The Look Of Abercrombie & Fitch.” CBSNews. CBS Interactive, 24 Nov. 2004. Web. 23 Sept. 2014.

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There is a fine line between a company’s responsibility in being environmentally sustainable and the company’s agenda to be as financially successful as possible. Through reading this article, I was faced with the question as to whether environmental stewardship and financial progress can coexist in a large company. It seems that Southwest airlines, America’s largest budget airline has found a creative solution to a temperamental dilemma.

Southwest Airlines has redirected the 80,000 leather seats- which would otherwise meet their end at disposal facilities- to  manufacturing facilities which utilize them in making luxury products. I found this operations management decision to be very impressive as the company is able to create a new revenue stream out of material which was once of no value to the company. Through the method of differentiation, the company is able to appeal to the consumers that are willing to pay more for a luxury good. Moreover, an effective selling point of their luxury goods is that the materials are recycled which appeal to the customers such that they may also be environmental stewards.

In addition, I would like to offer a contrast to my peer Sam Wong’s blog post which may be found here. I would rather comment that the company’s upcycling of the leather seats begins with the intention of being environmentally sustainable and that the increase revenue comes rather as an added benefit rather than an ulterior motive.

Sources referenced:

Article:Braw, Elisabeth. “Southwest Airlines Upcycles 80,000 Leather Seats into Bags, Shoes and Balls.” Circular Economy Hub. The Guardian, 15 July 2014. Web. 15 Sept. 2014.

Image found here

image taken from site

Often, scrutiny of a lack of corporate social responsibility is imposed on large companies. The concept of corporate social responsibility is not new, however it has evolved into a pressing issue which many companies face. In the article found here  the emergence of corporate social responsibility(CSR) is explored. The article suggests that the reason for the corporate apathy towards CSR is due to the “fragmentation” (Porter, Kramer) between the company’s business approach and the society. The article suggests that a company is compelled to CSR is due to “pressure from public response” (Porter, Kramer). However the question that should be addressed is: what is the motive behind the company’s efforts towards CSR? At first glance, it is plausible that the company simply wants to escape public scrutiny. However, it is more likely that the company is involved with CSR initiatives as a by-product of capitalistic interests. As often the scrutiny of the public screams the accusations of capitalistic and soulless corporations, many company’s use CSR initiatives to portray the image of a eleemosynary institution. In the long run, it is essential that an equilibrium is reached between the social responsibility of a  company to its stakeholders as well as to society itself.

Citation: Porter, Michael E., and Mike R. Kramer. “Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility.” Harvard Business Review 1 Dec. 2006. Web.