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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/

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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

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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

One of the greatest sources of revenue that powers British Columbia’s economy is the extraction of metals from the vast reserves scattered throughout the province. However in recent years, as a result of expansion, companies have begun to encroach on lands in close proximity to reserves and cultural landmarks.

In the context of the New Prosperity mine, first nations members have banded together in an effort to conserve the land by declaring a large section of the Chilcotin as a tribal park. This would place restrictions instituted by the government on the extraction of resources and the level of industrialization that could occur in the park, which could potentially cripple the 1.1 billion dollar mining project. In a separate campaign located in BC, members of the Secwepemc nation have blockaded a road to gold mine Red Chris, preventing further development and garnering media attention.

These events, among others, have highlighted the social and political limitations that could hamper the economic growth of the mining industry in BC. As a result, fewer firm are willing to make substantial investments into developing in an area that is constantly under pressure from conservationists and First Nations groups. The constant external threats to mining operations have begun forcing firm to look to other parts of the world, taking with them valuable jobs and capital.

Sources:

http://www.vancouversun.com/news/metro/Unilateral+park+declared+Tsilhqot+includes+Prosperity+mine/10192766/story.html

Image from: http://www.globalresearch.ca/wp-content/uploads/2014/02/bc-mine.jpg

Within the aviation industry, Boeing and Airbus continue to dominate the market as the two largest producers of planes in the world. In the face of growing demand for air travel, both firms have increased their dependancy on outsourcing. Currently, Boeing and Airbus combined have an order backlog of over 10,000 planes valued at close to a trillion dollars. However with the forecast of output increasing by a quarter in the next ten years, increasing pressure has been placed on the supply chain manufacturers to keep up with increasing demand while maintaining the quality of their products. With the growing importance of operations in the aerospace market, suppliers have worked to consolidate the supply chain, with larger manufacturers subsuming smaller firms whom would have struggled if they were left financially independent. With only two main players in such a large market, one of the most important factors becomes specialization and efficiency, as there is a heavy reliance on external firms to produce much of the final product. With the continued demand, the power of external suppliers grows and as a result shrinks the margins for Boeing and Airbus. With no foreseeable change in supply chain structure, operations could be seen as the key to maintaining steady profitable growth.

Sources:

http://www.economist.com/news/business/21621851-fixing-one-supply-chain-problem-planemakers-may-be-creating-another-good-parts

http://www.freudenberg.com/en/Press/Pressereleases/Pages/Auftrieb-für-den-Airbus-A350

Image from: http://www.pageresource.com/wallpapers/wallpaper/clouds-sky-dreamline-planes-plane_140814.jpg

Response to the blog written by Kevin Kreigbaum titled ““Can blackberry achieve relevance with it’s new Passport?” Which can be found at https://blogs.ubc.ca/kriegbaum/

In the latest lecture we discussed brand positioning in relation to a companies success within the market, and with the entry of its newest product, blackberry looks to find a foothold in the industry it once dominated. However after having fallen down the “ladder” in the eyes of mass-market consumers, blackberry has repositioned its brand to appeal to “power professionals”. Having at one point a third of the market share in the US alone, Blackberry’s shift to the niche market allows it to gain traction in an increasingly saturated market that demands constant innovation by producers. By rebranding itself as a phone for professionals, blackberry repositions and realigns itself with the core values that made the company successful in the first place. Branching off into a separate sector of mobile users offers the ability for blackberry to focus more heavily on the aspects that business professionals need as opposed to playing a balancing act in an attempt to please a wider consumer base.

Sources:

http://www.cnet.com/news/blackberry-hopes-love-it-or-hate-it-passport-earns-it-a-second-chance/

BlackBerry Unveils A Gigantic New Square Phone Called The BlackBerry Passport

https://blogs.ubc.ca/kriegbaum/

Image from: http://img.ibtimes.com/www/data/images/full/2014/06/30/448444-new-blackberry-passport-a-tablet-with-qwerty-keyboard-killer-specifica.jpg

Recently, the topic of Scottish independence has been plastered throughout newspapers and journals as the public referendum is slated to begin on Thursday, September 18^th. Breaking away from the UK would mean that Scotland would become an independent nation with the absolute power to control the countries finances and parliamentary proceedings. However the two sides to this argument have created a distinct divide between many Scottish citizens. Personally, I stand against the separation of Scotland from the UK as I see the people of Scotland losing far more from independence than what they would gain. Scotland is an aging country, with many leaving the workforce and claiming pensions promised by the government, there is increasing pressure on taxpayers; and aside from Scotland’s recent wealth from oil in the North Sea, much of which goes to foreign nationals, Scotland is a relatively low earning state. With a struggling banking system that currently depends heavily on England’s Central bank, the economic situation in Scotland is forecast to worsen significantly with independence. To me, it seems as though Scottish independence could potentially be a self-destructive fantasy of which we will soon find out the outcome.

Sources:

<http://www.thewire.com/global/2014/09/yes-or-no-a-voters-guide-to-scottish-independence/380379/>

What did the Scottish Independence Referendum tell us about Nationalism?

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McDonald’s has and continues to be a dominant player in the fast food market and is able to captivate so many because it offers “tasty” food at lower prices than competitors, often achieved through cutting corners and ultimately sacrificing worker benefits and product quality. Stakeholder Theory presents the idea that all entities within a company must work together and maintain understanding in order to succeed in the market and create value within the company, which in theory should benefit everyone. Recently however, McDonalds has failed to maintain the relationship between its workers and decision makers, which has sparked a nationwide strike in the United States creating negative publicity and temporarily putting many chains out service. From the ethical perspective put forth by Friedman, McDonald’s only responsibility was to maximize its profits for stakeholders, which it achieved through low wages and little to no benefits or security for workers. This practice ultimately helped the company to increase its profits however, it also created a divide and distrust within the company’s ranks and has led to the current strike. Ultimately a company as a whole cannot function without each component working together and establishing a positive and fair infrastructure; and to achieve this companies must consider ethically the affect their decisions have on not only profits, but on their employees and society as a whole.

Sources:

http://www.theguardian.com/money/2014/sep/08/fast-food-workers-protest-strike-paid-mcdonalds

http://en.wikipedia.org/wiki/McDonald’s

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