The Cambridge Satchel Company: From Humble Beginnings to Household Name
With just £600, no prior business knowledge and the support of her mother Freda Deane, Julie Deane propelled her kitchen table business into a global brand.
I normally skip the adverts and go straight to the Youtube video I want to watch. This time however, not only did I watch all of Google Chrome’s “The web is what you make of it” advert on Julie Deane, but I immediately skipped my video and opened Google instead. Intrigued by the 60-second clip and hoping to learn exactly how she turned her home business to household name, I did further research on Julie Deane and her company The Cambridge Satchel Company and discovered both a mother determined to make ends meet for her children and a resourceful entrepreneurial spirit behind a successful brand.
Deane wanted to transfer her bullied daughter into private school. So with just £600 and no prior business knowledge, Deane founded The Cambridge Satchel Company. Her limited budget to cover all the start up expenses for her company, including promotional leaflets and the initial batch of bags, would normally deter aspiring entrepreneurs. But Deane saw things differently: “A limited budget makes you more creative – you know it’s about you making money, not how other businesses have done it before you.”
Since starting her business in 2008, Deane has since grown her business to an almost £12 million turnover with 70 employees and a global network of 100 countries. Her strength lies in her entrepreneurial ability to envision the untapped market and create a demand for her highly differentiated, traditional Harry Potter style satchel bags. Not only did she exploit a gap in the market by making and selling unique products, but she has never paid for advertising during her startup period and never borrowed money to fund her business. Instead of adhering to the traditional marketing norms, Deane capitalized on the current power of technology and networked her way to success through bloggers, Youtube gurus and finally, fashion editors.
The youngest CEO of a Fortune 500 Company at 37 years old and a new mom since September, Marissa Mayer knows no limits while heading Yahoo!.
In response to my fellow classmate Braxton Ryback’s post on the female influence in business, I would like to draw further discussion on women in financial services and the gender disparity in the business workplace. To start with the facts:
- Only 3% of Fortune 500 CEOs are women
- Men are paid approximately 25% more than women for the same work
- The 50 highest-paid executives in the U.S. are all men
As Anne-Marie Salughter points out the crucial issues many women face of seeking balance and advancement, many women—despite consistently performing at the highest level—are turned down at times for promotion. Women often face gender-based stereotypes particularly in intense and fast-paced job industries, such as in finance. Yet a Catalyst study reveals that companies who have at least three women on their board of directors have 16% higher financial results.
Braxton mentions how “women bring a unique perspective, adding spice and variation.” John Keyser, Founder of Common Sense Leadership, believes women are simply “more dutiful and thoughtful in preparing their work” and then draws a comparison between how the women he works with tend to start work early and turn it in on time as opposed to the men who pulls it together, “turning in an inferior product.” While these beliefs may be true in certain circumstances, I do not believe differences between the female and male gender should be the focus of the debate. It is not about demeaning the male gender and enforce stereotypes on the male work ethic (if there even is one) and promoting a female-dominated world but rather, about equality and implementing gender-balanced ratios in the boardroom, eliminating discrimination against and stigmatization behind the female force and ultimately providing equal opportunity in a more just society.
The women of Wall Street: Currently lacking in numbers, but a definite driving force for success.
Image via: http://news.ixwebhosting.mobi/2012/07/31/14880.html
What do you value the most?
a. Money
b. Power
c. Other
This recent iClicker question reflects a question I have put much thought into, particularly upon entering university and taking my first steps as a business student.
For the most part, I believe that those who claim to adhere to the trite saying “money can’t buy you business” and be perfectly happy living a minimalistic life without too much spare money have never experienced poverty. In fact, I have noticed that most of the people who tell me they do not need money lead rather privileged lives.
While money is important, it certainly is not everything. Making a reasonable amount of it would allow in one way me to fulfill my ultimate goals of contributing back to society and helping the less fortunate as well as seeking life’s greatest pleasures such as experiencing firsthand cultural and geographic diversity through travel. For me, happiness is ultimately of much higher value than extrinsic rewards and in this light, money serves simply as a means not an end. I do want to make money and I have no shame in saying so, but as Michael Kwan points out in his blog, “Chase money. There’s nothing wrong with that. But chase it with a very specific purpose in mind.”
With these thoughts in mind, I reached for my iClicker and confidently clicked c. other as my answer.
A customers sits in an unsold chair at the now-closed Sears downtown Vancouver location as Nordstrom lounges its way into Canada, where there are already 15,000 Canadians in their loyalty program.
A Bloomberg article recently reports the makings of a new Nordstrom Inc. billionaire: 76-year-old Anne Gittinger, the company’s largest shareholder after her billionaire brother Bruce A. Nordstrom. The Seattle-based retailer, whose shares have increased 17% since June and during an economically deteriorating period, operates 240 stores and remains “one of the few department store retailers that is still growing.” In fact, four stores will open in Canada between 2014 and 2016. From case studies such as Zara and Aldo, the mass customization strategy clearly helps generates increasing revenues and meets ever-changing consumer demands. But what makes Nordstrom, a company whose strategy isn’t primarily mass customization since it is a department store, stand out despite a slow changing stock? I did some research on the company and list a few reasons below:
1. Variety in style
The increasing variety of brand and style makes up for the lack of a constantly changing stock within each season. The company also recently partnered with TopShop, everyone’s favourite London brand whose inspirations come directly from the runway targeting young customers.
2. Development of a stronger technological presence
Having purchased hautelook.com, an online shopping website, Nordstrom targets the dollar yet style savvy customer and integrates Nordstrom Rack and hautelook.com marketing under one online premise. Furthermore in 2010, the company invested $69 million to upgrade the company website, better enabling customers to shop at the comfort of their own home and provide in store wi-fi, ultimately enhancing and prolonging the customer experience.
3. Consumer engagement through loyalty programs
The perks of the Fashion Rewards program are hard to ignore. Two points are awarded for each dollar, and for every 2,000 points you spend, you receive a $20 voucher in the mail. The store card also holds key to pre-admission to the Anniversary sale, a fashion hotline and extra points during special sales. Furthermore, the card tracks how each consumer spends and tailors advertisements to particular taste. Some call it an invasion of privacy; Nordstrom calls it two billionaires behind its belt and a third one in the making.
Young entrepreneurs at work.
Having read Ben Mezrich’s The Accidental Billionaires which profiles the rise of then 20-year-old Mark Zuckerberg’s social networking innovation called—you may have heard of it—Facebook, I started to think about the relationship students have with their aspirations, specifically pertaining starting their own businesses while they are still in school. This led me to the question: Why is it so hard for many students to actually turn their big, bold, entrepreneurial thoughts into action?
Upon entering university, I have never met as many bright, young students who have dared to dream as big. Become CEO of a major corporation, start my own my business, be my own boss—these are the common goals I hear from my peers. And then I ask, “When will we start?” The response? “When I’m older, when I graduate, after I get work experience, after I start a family.” Why? “I have no time. Plus, I’m too young.” Cue in now 28-year-old Marc Zuckerberg of Facebook, 21-year-old Brian Wong of Kiip or 25-year-old Glenn Clayton of AppletonLearning—the list goes on. Each of them were students, barely a few years my senior, when they started their first ventures. What stops people like them from starting now when they had such big dreams? Nothing.
As students of the Sauder School of Business at UBC, we’ve been given so many resources and as cliché as it sounds, we really do take it all for granted—at least I have. As I slowly ease into my transition to university, I now realize that I have the real opportunity to chase my dreams. I may not know exactly what I’ll be doing, but there’s one thing I do know: I dare to not only dream big but to also pursue these dreams with fearlessness.
Image via: http://jdwphoto.wordpress.com/page/2/
With much emphasis placed on societal change and ethical practices, the line between a socially responsible and a social enterprise become blurred. However, could this simply be another marketing platform to support the ultimate goal of maximizing profits and satisfying corporate greed?
In light of our classes about corporate social responsibility, The Body Shop immediately comes to mind. The founder and one of the richest women in England with a net worth of more than $200 million, Anita Roddick, is clearly an entrepreneur mindful of both the market demand—cosmetics—and the message her cosmetic products embody to appeal to consumer behaviour—concern for the environment. Combining these two aspects together create a differentiated business venture with many strengths and opportunities to capitalize on.
However, while browsing The Body Shop’s website, the line between its role as traditional and social enterprise does appear to be at times blurred. As the homepage quotes Roddick’s personal statement on the purpose of enterprises, “The business of business should not just be about money, it should be about responsibility. It should be about public good, not private greed.” From this, it seems that she places a much greater emphasize on generating societal change as opposed to maximizing private. If this was The Body Shop’s official mission statement, such a business may be classified as a social enterprise rather than a socially responsible corporation. But the question remains: To what extent is the line defined between a socially responsible enterprise and a social enterprise?
Image via: http://rougebeauty.co.za/brand-body-shop/
Beyond this literal representation of green growth is a concept that has the power to change the direction our future is heading—for the better.
There’s no doubt that the rate of economic growth experienced around the world—namely in NICs (Newly Industrialized Countries) such as China and India—has been enormous in past years. Like my classmate Mandy Xu, I too hear stories from my parents relating their childhoods of the Cultural Revolution to the vastly different and technologically advanced China of today and initially thought that the present growth comprised solely positive progress. However, according to the World Bank’s report on the quality of growth, 16 of the 20 most air-polluted cities are in China. The question “Are we growing too fast?” Mandy prompts us to ask ourselves whilst enjoying the benefits of the economic boom resonates deeply with the inevitable issues that go hand in hand with the “progress” I once saw through a purely favourable lens.
We frequently view economic growth and environmental protection—generally implied through clean air and water, healthy levels of wildlife population and biodiversity—as two, almost opposing ends of the spectrum. Trade-offs are inevitable right? Not at all. In fact, as John Parker of The Economist coins it, “green growth” is key to global development. The common perspective “Get rich first, then clean up” fails to see how environmental degradation actually hinders economic growth. My classmate Katya Sen details how Sempra Energy stationed its power plant in Mexico to avoid stricter American environmental regulations. The lack of restriction resulted in consequences to not only the environment but to locals’ health, highlighting how firms and governments often reject the notion of protection in exchange for profits.
We need to see the environment as a form of natural capital and that when properly invested in and integrated in governmental policies, environmental conservation has in fact huge potential to both accelerate and sustain—not hinder nor limit—economic growth and ultimately our standards of living for generations to come.
Image via: http://islandbountyblog.wordpress.com/category/world-food-crisis/
Marketing towards children in a way that speaks to them.
During October 2nd’s class, we were briefly shown an old McDonald’s advertisement of a baby swinging and smiling only at moments when he/she swung high enough to see the McDonald’s sign from the window and crying otherwise. What seems like harmless fun for older audiences may in fact be misunderstood by younger audiences who are less able to think critically, underscoring the implications of at times controversial marketing techniques and the responsibility of marketers and parents concerning more vulnerable audiences.
As Rebecca Clay writes in an article published by the American Psychological Association, the effect advertisers have on children can be profound and are generally focused on increasing profits rather than helping children. Children under 12 are already spending $28 billion a year and influence an additional $249 billion spent by their parents; it’s clear that children seem to have a special role in decision-making of a family’s purchases. As a result, children are now becoming the bullseye target for advertisers and more exposed than ever to consumer culture and unhealthy habits.
However, even though external influences like TV ads are making such strong impressions on children, the blame should not solely fall on the media or the government’s shoulders. I believe parents also have a great responsibility to take a limiting stance and talk candidly to their children when appropriate. Therefore, it is imperative that all three parties work together to regulate and restrict what is seen, heard and believed by children in their daily lives.
Image via: http://farstarblog.com/?p=427
A simple smile is often the first step towards great customer service.
Since entering the job market for the first time this summer as a barista, I’ve learned valuable lessons on dealing with customers, maintaining their satisfaction and the product quality while ensuring efficiency. However, I think it also goes without saying that the whole “#1 customer satisfaction guaranteed” shebang is no easy feat and requires time and dedication. While my current job initially seems peripherally unaligned with my future career aspirations, I’m certain that the customer interaction I’m dealing with today will be applicable to my future.
That’s why Sunday Steinkirchner’s blog post on improving one’s customer service skills has given me much to reflect on. These are the tips that I found particularly useful:
3. Special Services/VIP
As Steinkirchner writes, “Offering special treatment to your customers will help them to feel taken care of and it’s also something they might be willing to pay more for.” It simply makes sense to reward those who have been with the company the longest and by doing so, their loyalty is strengthened.
5. Offer Community
Creating a special community for customers not only helps establish their satisfaction but also makes them want to come back. When a company truly takes the time to engage their customers as friends, they are rewarded with loyalty. Furthermore, this helps catalyze word-of-mouth marketing, one of the most powerful forms of promotion.
Image via: http://www.mycustomer.com/blogs/colin-shaw/colin-shaw/excellent-customer-experience-starts-smile
Not the common image we would associate—or even want to associate—with the chocolate that soothes our soul.
How guilty do you feel eating a chocolate bar? Or, to reword the question, how guilty do you now feel eating a chocolate bar heavily based on forced child labour in harsh working conditions? The answer’s a no-brainer.
Since 2010, advocates from Raise the Bar campaign and their partners against the exploitation of children on chocolate farms have been calling on Hershey’s—the largest chocolate manufacturer in North America—to meet the standards of ethically sourced cocoa. In August 2012, Hershey’s finally made a big announcement following the International Labour Rights Forum’s threat to air an ad about Hershey’s child labour conditions on a Jumbotron screen during a Super Bowl game, along with pressure from 41 independent food and natural grocery stores through Raise the Bar’s letter campaign.
The company has pledged that all the cocoa for its Bliss line of chocolates would be Rainforest Alliance Certified by 2013, meaning the chocolates would meet the three pillars of sustainability: Environmental protection, social equity and economic viability. Hershey’s also plans to invest $10 million in West Africa by 2017 to encourage economic initiatives, reduce child labour and improve cocoa supply and launched CocoaLink in Ghana and the Ivory Coast, a communications project which delivers information via mobile phone to improve yields, incomes and standards of living for farmers and ultimately reduce the need for child labour and increase the opportunity for their children to attend school.
For more information on child trafficking and chocolate farms, see BBC’s documentary Chocolate: The Bitter Truth.
Information from: http://www.pennlive.com/midstate/index.ssf/2012/08/post_397.html and http://www.huffingtonpost.com/2012/02/01/hersheys-child-labor_n_1247111.html