http://news.ubc.ca/2014/06/30/upward-arc/

http://www.sauder.ubc.ca/Global_Reach/ARC_Initiative

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I believe that initiatives such as the Arc can be best summarized by the proverb: “Give a man a fish and he will eat for a day; teach him to fish and he will eat for a lifetime.” Keeping this in mind, it is imperative to acknowledge that social enterprises differ greatly from many of the social causes of the United Nations. Where
many social ventures do not address the underlying factors of an issue, the Arc provides tools that enable entrepreneurs in developing countries to achieve sustainable growth in the hopes of creating a positive ripple effect in the area. In this regard, I believe that the Arc Initiative arguably supersedes many of the charitable efforts of the United Nations, creating a necessity for it even if the UN was fully funded.

The legacy that Arc has left behind in various communities is a testament to Jeff Kroeker’s goal of “building capacity, building relationships and ultimately, building a better future.” Having just learnt about the Arc and the lasting impacts that it has on communities in Africa and South America has opened my eyes to the array of opportunities available at Sauder. Programs such as this are key components of the global commerce community. I would like to get involved with a social enterprise one day; hopefully using my knowledge to contribute to the business communities in developing nations, while at the same time gaining valuable lessons from the experience. 

http://www.economist.com/blogs/schumpeter/2014/02/our-schumpeter-columnist

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The above article discusses what it means to be an entrepreneur and the implications for our economy. It elaborates on two different types of entrepreneurs: “replicative” entrepreneurs are people who set up small businesses similar to other small businesses in the industry whereas “innovative” entrepreneurs are disruptive innovators who reinvent the industry. The article notes that the latter type of entrepreneurs are vital for the growth and health of an economy.

I recently had the privilege of listening to two successful entrepreneurs share their experiences and insights with our COMM 101 class. For the majority of my life, this was not a career that I envisioned myself pursuing. I believe that financial security is optimally achieved through a traditional corporate job at a well-established company. However, listening to the trials and tribulations of Zimt and Tagga opened my eyes to the viability of a career as an entrepreneur. The passion and enthusiasm that Amielle and Emma had towards their companies has inspired me to not rule out pursuing my own passions and inclinations in terms of building a career. With that being said, I still possess lofty professional aspirations and I do not think it is practical or wise to start a company for the sake of starting a company. If I were to one day pursue this path I would strive to be an “innovative” entrepreneur, attempting to balance my desire for professional success with the yearning to be in charge of my own career path. 

http://www.fool.com/investing/general/2014/10/26/warren-buffett-lost-25-billion-this-week-and-hes-t.aspx

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Recently Warren Buffett lost $2.5 billion between his positions in IBM and Coca-Cola. This article discusses how
poor earnings on their quarterly reports led to a drop in IBM’s and Coke’s stock price by 11% and 6% respectively. Buffett is undoubtedly the most famous value investor in history who follows the teachings of Ben Graham – searching for high-quality companies that tend to rise over time because of their intrinsic value. This is a strategy that was briefly touched on in our COMM 101 class about capital markets. Having an interest in equities, this is an approach that I am familiar with and is one that I often implement when evaluating various securities. Searching for undervalued companies was a focal point of discussion that the PMF guest speakers touched on when they explained how they pick stocks for their portfolio. Although this strategy has proven to be successful for many investors, it is imperative to acknowledge that the capital markets never come without risk. Warren Buffet has made a fortune investing but even he is not immune to the forces of the market. The long term success however of the PMF program and Berkshire Hathaway is evidence of the effectiveness of investing in companies with strong fundamentals. Keeping this in mind I think it is highly unlikely that Buffett will liquidate these positions or change his investment strategies.

Social Entrepreneurship Pays Off in Many Ways

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As I was scavenging through some of my classmate’s blogs, Carolina’s most recent post pertaining to social entrepreneurship caught my attention. Her discussion of Justus Uwayesu provided me with insight about a particular social issue that I believe would ideally be addressed by various social enterprises. The ever-increasing cost of attending college means that there many bright, capable, and talented young minds that miss out on this opportunity because of financial reasons.

A global issue of this magnitude cannot be fixed with just one solution, however, I do believe that the establishment of social enterprises with different business models will be instrumental into progressively bringing change. I want to relay what Carolina mentioned in her blog in terms of the fact that charities are often difficult to sustain which is why the entrepreneurial approach of social enterprises is more effective for creating viable solutions. The challenge to society in terms of bringing more of these businesses into fruition is the lack of understanding many people in the business world have about creating shared value. It then becomes the responsibility of the next generation of business leaders to broaden the scope of the professional world with the emergence of new businesses that use commerce skills to produce profits, as well as improving social and environmental wellbeing. 

http://www.businessinsider.com/goldman-sachs-critical-thinking-questions-2014-10

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The article above briefly outlines some of the questions that are asked to candidates during their interviews for employment at Goldman Sachs. The firm’s global head of recruiting, Michael Desmarais says that a common interview question would be to evaluate a company’s market valuation or to provide a stock pitch. In addition to this, the company blog indicates that it attempts to use the interview process to judge an individual’s creativity and problem-solving abilities. They do this by asking prospective employees to describe a procedure that can be used to figure out how many manhole covers there are in New York City, or similar thought provoking questions.

This evolution of this company’s interview process is indicative of the fact that they are trying to optimize their ability to find intra-preneurs. As discussed in a recent COMM 101 class, large multinational corporations are seeking employees that will be able to think quickly on their feet, and outside the box, therefore demonstrating problem solving, analytical, and critical thinking skills. Goldman Sachs has recognized the benefits of hiring corporate innovators – people who possess the creative qualities typically associated with entrepreneurship, but utilize them within a large company. Employing the skills of such individuals is imperative to the growth and success of any firm and I believe that more companies will begin to ask similar brain teasing questions during interviews in order to help them find ideal employees.

http://www.vancouversun.com/news/First+Nation+chiefs+stage+Site+showdown/10215965/story.html

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The current issue concerning BC Hydro and First Nations in British Columbia is multilayered dispute. BC Hydro is working on developing a megaproject to produce a hydroelectric generating station in Native American land. The endeavor would also result in flooding of land that is deep-rooted in Aboriginal culture. First Nations are arguing against this project, referencing the Number Treaties and claiming that it would infringe upon their rights.

Undoubtedly this creates certain business problems for BC Hydro from a macro environmental perspective. The legacy of treaties with Aboriginal groups provides us with a keen understanding of how the PEST analysis is applicable to real business problems. The primary factor that is influencing this issue is political (with a legal subset). Considering that there is legislation in place to protect First Nations, a question of ethics arises in terms of whether or not BC Hydro should be allowed to continue with their efforts. This notion is further complicated when we acknowledge that BC Hydro is a crown corporation who’s actions are a direct reflection of the government. Furthermore, any potential fallout will surely test the validity of the current legislation that we have in place. All the parties involved are key stakeholders with different beliefs and values about what is in everybody’s best interest. If a resolution is to be reached, a great deal of compromise will have to take place.

https://blogs.ubc.ca/tabraham/

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As I was reading some of my classmate’
sblogs, Trent’s
post about Alibaba’s IPO was an article that instantly appealed to me. Trent effectively summarizes an article from Forbes written about why Warren Buffet would not invest in Alibaba. A quick fundamental analysis has led me to the conclusion that at this point in time, Alibaba is not a very strong value investment. While I agree that Alibaba fails across the board as a Graham or Buffet stock right now, I also believe that there is money to be made following the record-setting IPO. As soon as the buzz surrounding the stock dies, taking on short positions in Alibaba could become a very profitable endeavour as the inflated valuation falls to a more realistic level. Alibaba’s IPO also presents a very lucrative opportunity to short other stocks in the technology sector. Chief investment officer of Huntington Asset Advisors, Randy Bateman has said that Alibaba could create additional volatility in the tech sector since some investors may be selling positions in other tech stocks in order to buy Alibaba. This opens up an opportunity for bears to profit off of the temporarily decline in value of these other stocks. Trent concluded his blog post by asserting that guaranteed returns on investments are a myth in today’s economy. I would disagree with this argument and rebut that even though certain stocks may decline in value, understanding the interactions within the stock market can enable intelligent investors to profit off of both increases and decreases in price.

http://www.edmontonjournal.com/business/Costco+stop+accepting+American+Express+cards+Canada+switches+Capital/10215453/story.html

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The article above caught my eye last week, having just obtained a credit card for myself. It discusses how Costco will switch from only accepting American Express in Canadian stores, to having an exclusive deal with Capital One and MasterCard. Negotiations between Costco Canada and American Express fell through, ultimately ending a 15 year relationship between the two companies. In 2013 Costco’s Canadian operations resulted in $17.2 billion in revenue. Costco is arguably the largest wholesale mega-market in the world and as a credit card company, having exclusive access to their customers can be tremendously beneficial. After studying business models in class this past week, a key component of any company’s model is going to be customer relationships. Costco members tend to be very loyal; this enables credit card companies to have prime access to a large target market. If a customer switches to a Capital One credit card, they are very unlikely to have isolated use of this card within Costco locations. Chances are that the customer will end up using their new card for other purchases as well. This deal has tremendous implications for Capital One and MasterCard, considering that it allows them to grow their Canad
ian customer segment, thus improving overall revenue and profit.

http://fortune.com/2014/09/08/u-s-legislators-are-stepping-into-the-tax-inversion-fray-as-companies-continue-to-pursue-the-tax-advantaged-deals/

It has been said that there are only two certainties in life: death and taxes. Accepting this, it is still important to acknowledge that no one likes paying taxes; corporations are no different. One of the newer mechanisms they employ is a strategy called tax inversion. This involves American businesses buying land subsidiaries overseas, which then becomes their corporate headquarters, enabling said company to classify itself as a foreign company. The result is lower corporate taxes. The question then becomes: should tax inversion be classified as fraud? By forgoing certain taxes, these companies are essentially robbing both the people and the government of the United States, even if it is through legal actions. It is important to distinguish legality from ethics in this example. If a company wants to continue to call themselves “American” and receive the benefits associated with this (tax credits and direct business with government) they must accept their necessary responsibilities. Taxes are not subjected to personal tastes. If corporate personhood is truly evident in our society, then bias cannot be shown towards corporations. Businesses cannot pick and choose the components of this construct that they wish to indulge in. Their actions have and will continue to be unjust, unless proper government legislation is implemented, as alluded to in the article.