Monthly Archives: November 2014

Globalization has contributed to the integration of increasingly aggressive marketing as a necessity to compete with a larger number of firms entering the market. The article above details the expansion of a coupon distribution company, which blankets the five boroughs with discounts and promotional offers for items ranging from detergent to pumpkins. Firms like these provide a channel for companies to expand their brand presence, by offering consumers discounts in the hope that they will establish their product in the mind of the customer. By offering coupon packages companies also are able to acquire important market data by identifying public demand for a certain product at different prices through the number of redeemed coupons. This valuable data offers firms a clearer view of market trends and allows firms to re-arrange production to meet the constantly changing demand, as markets become increasingly saturated with new products. Additionally, most firms that promote coupons this way often times focus around low cost and low margin goods, which depend heavily on volume movement. In identifying goods that move at a slower velocity, they are able to increase demand by reducing the price, which also allows firms to identify the best price point at which a products demand is equal to its supply. Ultimately, with the increasing importance of establishing brand presence and recognition in a competitive economy, firms out of necessity have begun to increase spending in marketing their products in an effort to compete. As a byproduct marketing outlets just like the coupon distribution mentioned above, have seen significant growth.

Sources :

http://www.nytimes.com/2014/11/09/nyregion/doorknob-to-doorknob-with-the-coupon-crew.html?action=click&pgtype=Homepage&module=c-column-middle-span-region&region=c-column-middle-span-region&WT.nav=c-column-middle-span-region&_r=0

Image from: http://epiclaunch.com/wp-content/uploads/2013/03/coupons-2.jpg

In response to Ingrid Yau’s Blog “Response – Hard Work is What Immigrants Do” the link to which can be found at https://blogs.ubc.ca/iyau/

In Ingrid’s blog, she draws a contrast between the physical or menial labor prominent years ago, and the critical thinking or “mental labor” that has become more prominent today. I agree with the basic premise of Ingrid paper, in that skill sets that are demanded today differ greatly than those demanded years ago as a function of our evolving job market. However where I draw differences with Ingrid, begins with her statement that “Even the most unskilled American worker wouldn’t want a job that is physically demanding, thus leaving all the hard labor to immigrants.” I believe this statement is overgeneralization of the workforce in developed and “wealthy” countries. As the integration of technology has permeated our society, we have had to adapt in order to meet the demands of society, which in many cases involves more analytical and technical skill than ever before. However manual labor still remains integral to the supply chain in almost every industry around the world, and America is no different. With the increasingly large volume of immigration and the recent scarcity in the job market, I believe that it seems illogical to believe that there is no domestic demand for manual labor jobs. With an increasing labor force, demanders of labor can pay lower wages as more individuals become willing to work for less money and ultimately these “menial” jobs become occupied due to low cost, not low demand.

Sources:

http://www.nytimes.com/roomfordebate/2011/10/09/what-happened-to-the-american-work-ethic-2/hard-work-is-what-immigrants-do

https://blogs.ubc.ca/iyau/

Image from: http://www.cagle.com/news/immigration06/

The development and expansion of companies has always depended on the acquisition of capital, either through private funding, or through distribution of equity through capital markets. Recently, the issue of volatility in the price of raw materials has forced much of the mining industry into collapse amid falling gold and silver prices. Recently we were visited by Sauder alumni Nolan Watson, whose company Sandstorm, has seen it’s stock plummeted to a 52 week low of $2.45 as of Nov.4^th. Being a public company, Sandstorm has relatively easy access to capital in order to fund ventures and expand, however they also must be transparent in releasing their financial information and remain accountable to shareholders and the public. This unfortunate example of falling share prices highlights the sensitivity of the market to changes in external factors, as the US economy begins to recover and interest rates increase, we have seen gold prices drop so dramatically that they have forced many junior mining companies out of the market. However, Mr. Watson has positioned his company to capitalize on the struggling market, as Sandstorm has consolidated considerable cash in order to purchase undervalued assets in preparation for the eventual resurgence of gold. The focus on accumulating cash also functions to provide Sandstorm a safety net on which it can rely on to sustain operations throughout the downturn without having to sustain debt in order to function. The capital markets are a complex place with a great degree of uncertainty, however it proves fundamental to economic growth and expansion.

Sources:

http://www.vancouversun.com/business/story.html?id=10151471

Image from: http://logosandbrands.directory/wp-content/themes/directorypress/thumbs/Sandstorm-Gold-Ltd-logo.jpeg

Response to blog by Marissa Levin “Goldmen Sachs Exec Leaves Due to Toxic Culture” which can be found here http://www.successfulculture.com/goldman-sachs-exec-leaving-due-to-toxic-culture-three-lessons-for-all-of-us/

In entering a market, which is founded and determined by company profit, for the vast majority of companies, the only important contribution they expect from employees is the fiscal value that they bring to the company. This ideology is embedded throughout corporate culture and has resulted in the deterioration of core values that differentiate a company from the competition.

In a blog response to Goldman Sachs executive director Greg Smith, titled “Why I am leaving Goldman Sachs”, Marissa Levin discusses the permeation of individualistic thinking in the workplace. More specifically, the idea that company culture and core values are dependent on one another. In the resignation letter, Smith uses the term “Toxic Culture” to describe his workplace environment, as core values become more obscure and profitability becomes the main concern. Implicated in the deterioration of core ideas is the disorganization of a firm, as teamwork and shared identity become secondary and customers become exploitable assets. The idea of establishing a positive and constructive corporate culture functions to offer more than simply satisfying ones ethical conscience, it also creates a sense of pride and commitment to the values of the company. In an evolving economy, the greatest asset of any firm in business today remains the employees, and in creating an environment that disregards ethics and bases promotions on exploiting customers, firms are corrupting their workforce and weakening the very foundation of the company. As firms disregard other factors and focus simply on profit, they lose touch with their corporate identity and ultimately self-destruct.

Sources:

http://www.successfulculture.com/goldman-sachs-exec-leaving-due-to-toxic-culture-three-lessons-for-all-of-us/

Image from: http://images.dailytech.com/nimage/goldman-sachs-wall-street.jc.top.jpg

The stipulation and growth of our society has been a function of individuals who are able to think differently and provide unique answers to solving our world’s problems. This process ultimately produces what is termed as “disruptive innovations”, which revolutionize industries by bringing products previously limited to the elite, to a wider consumer base.

In the context of the article cited above, entrepreneur Jonathan Rothberg aims to alter the healthcare industry by bringing to market a portable handheld ultrasound scanner that is “as cheap as a stethoscope”. By integrating software to scan for anomalies and diagnose illnesses, this device could be sold cheaply around the world and operated by any technician with basic training. Potentially, this device could be used as a vehicle to vastly improve quality of life, especially in developing countries around the world, where the level of incorrect diagnosis remains unacceptably high.

Previously, an ultrasound scanner cost somewhere in the neighborhoods of six million, however by eliminating the cost barrier of this technology, Butterfly technologies positions themselves to monopolize the market. Additionally, in possessing the first movers advantage the firm could potentially be able to expand their technologies for use in other capacities. The automation of healthcare and reduction in the cost of operations presents a huge opportunity for providing better treatment for patients around the world, as well as a step towards decreasing the gap in quality of health care offered around the world.

Sources:

http://www.technologyreview.com/news/532166/with-100-million-entrepreneur-sees-path-to-disrupt-medical-imaging/

Image from: http://news.bbcimg.co.uk/media/images/50965000/jpg/_50965159_ion.jpg