Girls.

For my final blog post, I want to go full circle back to the first topic we were asked to write about: business ethics. This time, I want to touch on something that many women and girls around the world have strong opinions on, which is how advertisements and media wrongly influence how we see ourselves.

Cherrie’s blog summarized nicely how advertisements on TV and in magazines can effect girls’ confidence and body image. These ads are impossible to avoid, and we are exposed to many of them each and every day.

I feel that this was a much bigger problem only a few years ago, but today we are slowly tackling the problem. I can remember flipping through a magazine when I was much younger, and wondering how the girls had such a nice tan, perfect skin, and long hair. Today I realize all those girls had was a fake-tan, a face caked with makeup, and a head full of hair extensions.

There are so many movements happening today that expose what goes into each photo you see that now when anyone sees a spread in a magazine, their first thought is, “Oh, that’s just edited.” Instead of “thinspo” sites popping up all over the web, it is now “fitspo”, which inspires girls to get in the best healthy shape that they can.

The topic of body image has become an advertising platform for many companies. Dove has led several campaigns to improve how we view ourselves. Demi Lovato is open with the world about her struggles, and has written a book. Nike advertised their Women’s Half-Marathon Shay Mitchell compete in the run, while promoting a healthy lifestyle.

The examples are endless, and although there is still a lot that must be changed with regards to this topic, I think women as a group are doing an amazing job at getting the point across that everyone should be happy with who they are, people should aim for fit not skinny, and the images you see in magazines are never fully real. Us females are the target of so many ads today that we have the power to say what we want and change how businesses advertise to the world.

After installing nearly 4,000 solar panels on the rooftops of Toronto stores, the CEO of Ikea clearly wasn’t satisfied. Recently, Ikea revealed their corporate sustainability plan, stating that by 2020 Ikea will be 100% renewable, meaning that they will produce the same amount of energy they consume.

To do this, Ikea is implementing plans such as installing solar panels on store roofs and minimizing packaging to reduce shipping pollution. Most notably, Ikea is committed to spending $2.4 billion on wind and solar energy. This plan is a bold one, but has brought Ikea the media and consumer attention that they were hoping for.

Looking back to an article I read for class, Ikea has done several things to “bring it’s core values to life”. The article stated that companies should makes the consumer the hero, which is exactly what Ikea is doing when they point out the fact that their customers will have sustainable furniture in their homes. The article also suggests to give solid proof of impact, which Ikea has done by purchasing the wind turbine project and installing solar panels. The real proof will come in 2020 when we see if Ikea truly is 100% renewable.

http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/ikea-eyes-low-carbon-future-with-alberta-wind-energy-project/article15436596/

http://www.ikea.com/ms/en_CA/about-the-ikea-group/people-and-planet/energy-and-resources/

After watching a video in class about the online shoe company, “Zappo’s”, I was intrigued by the atmosphere in the office. Contrary to the preconceived impression of an office job, you could truly feel the excitement, happiness, and dedication of the workers in the office.

I decided to do some more research on this topic and stumbled across Richard Branson’s Virgin Blog post titled Are You Happy At Work? . The blog post outlines how common it is for people to be unhappy or unsatisfied with their workplace, and how this problem is mistakenly overlooked. The bottom line was that “increasing engagement could add tens of billions to GDP.”

I definitely agree with this viewpoint, and also believe that employee satisfaction plays a key role in the success of a business. In terms of humans resources, the happier an employee is, the more pleased the people they react with will be. For customer service, this means that when a dissatisfied customer calls in with a complaint, it is important that the worker on the line be fully engaged, passionate, and happy to help.

Zappo’s provides a very positive customer service experience as every employee who answers the phone does so in a positive manner. In addition, there is no time limit on calls made. These factors, combined with several other policies are what create a lasting impression with a satisfied customer, and are what will keep the customers coming back.

http://www.newyorker.com/reporting/2009/09/14/090914fa_fact_jacobs

It seems like just yesterday that Target officially announced to the public it’s plan to bring Target stores to Canada. There was so much buzz and excitement created at the prospect of finally having this huge American chain come across the border, but recent reports show that Target is not having the smooth start it expected.

According to recent articles, Target is having a difficult time turning around the perception that it’s products are pricier than it’s main Canadian competitors such, as Wal-Mart and Shoppers Drug Mart.

Rachel’s blog stated that Wal-Mart was in fact losing customers to competitors such as Target, and while this may be true, Target seems to be the one losing the battle overall. Target entered Canada confident with their predicted outcomes, and have since then fell short.

Although Target is by no means a “lean start-up”, I remember talking in class about the fact that when a business starts up, everything in their business model canvas is a made up prediction. Target made up these optimistic predictions, and it just goes to show you that even some of the biggest companies will fall short of their expectations.

http://www.theprovince.com/business/Target+Canada+still+plagued+price+perception+problems+sales+fail+meet/9103974/story.html

Here in Vancouver, we have some of the most scenic routes for bike riding, and also some of the strictest laws on helmets. Although the laws are to protect our safety, wearing a helmet deters many people from biking places. I have met people that say they don’t like going for bike rides solely due to the fact that they have to wear a helmet.

Enter the new Invisible Helmet, an exciting innovation created by two students studying industrial design. By now, you have probably heard about this invention in one form or another, as there has been a huge buzz created online surrounding the product. After developing and testing this new helmet since 2005, these entrepreneurs have finally created Hövding, an airbag for cyclists.

Living in a city where helmets laws are in place, I think this invention could be hugely successful. Just imagine if there was a way to ride your bike without messing up your hair, or having to carry around a helmet after you park your bike.

The anticipated Public Bike Share Program in Vancouver has been running into several problems lately, one of which is in regards to helmets. It has been proposed to build helmet dispensers at each bike station; however, this would increase infrastructure costs. In addition, people seem very reluctant towards the idea. In a survey asking if people would use a bike helmet from vending machines, an overwhelming 60.4% responded no. This brings to question what should be done about the bike helmet laws that may affect the success of the new Bike Share Program.

Nevertheless, these entrepreneurs have a bright idea that I think will become very successful. Someone has finally made a helmet that is discrete, and that people actually wouldn’t mind wearing. The only problem with the product in my opinion is that it costs roughly $600, and at that point, people might not even bother.

http://www.hovding.com/en/about/

http://mashable.com/2013/11/16/invisible-helmet/

http://www.vancitybuzz.com/2013/11/vancouver-bike-share-program-could-be-in-jeopardy/

As a loyal Blackberry user myself, I definitely experienced firsthand how quickly Blackberry users declined. It seemed like each day I was losing a handful of BBM contacts to their new iPhones or Androids. Recently, when BBM was made available on other phones, I was excited to see my contacts begin to return.

With Blackberry no longer selling their company, this is a new direction they have taken and it seems to have been successful. After making BBM available to competing brands of cell phones, over 20 millions new users joined the network, bringing the total number of users over 80 million. But one has to wonder if the excitement                                                                                          will last.  And it is a valid question.

Although user numbers seems promising, I have to wonder what it will really do for the company. First of all, BBM does not bring any monetary benefit to Blackberry. Also, thinking of Porter’s Five Forces, there is a strong threat of substitutes for BBM such as imessage, Snapchat, or simply texting. Even the exciting BBM video is rivalled by iPhone’s “facetime”. As one of my friends simply put it, “Why would you BBM someone who has an iPhone?”.

http://www.theglobeandmail.com/report-on-business/blackberry-boasts-of-smashing-success-with-20-million-new-bbm-users/article15134557/

These days, when an artist releases new music, getting it for free is just a click away. Within the music industry, this has been perceived as a scary prospect and major problem to tackle; however, recent studies from The London School of Economics and Political Science prove otherwise.

The graph below shows the results form a study done by The London School of Economics and Political Science. It proves that contrary to popular belief, the music industry is doing just fine. In fact, 2012 was the first year in over a decade that sales around the world had an upward trend[1].

So, if free music downloads are becoming more readily available each year, then why is the state of the music industry actually improving? The study showed that the less people tend to spend towards buying records, the more they put into other areas such as live entertainment and merchandise. With people using the Internet for streaming, music is actually able to reach more people than it would if people had to pay. In fact, the Internet has proven to be an extremely useful marketing tool.

U.K. singer-songwriter Ed Sheeran recently stated during a radio interview that he was currently the most illegally downloaded artist. Although an artist may find this troubling, Ed was instead thrilled, saying that the more people’s iPod’s he could be on the better (given he was still making a living).

Despite thoughts that piracy and online streaming are severely detrimental to the music industry, they have actually become a great way to promote artists and gain fans, as well as allow consumers to place more cash in other areas of the industry.

In 2012, Michael Hallatt of Vancouver B.C. had a genius idea, and even amidst being sued by a huge company, has never looked back.

Trader Joe’s is an extremely popular store in the United States, selling mainly healthy and organic foods at affordable prices. With health food prices through the roof in Canadian stores such as Whole Foods, it’s no surprise that many Canadians drive across the border on a regular basis to save on groceries.

After visiting Trader Joe’s several times himself, Hallatt had the idea to open up a Trader Joe’s in Canada, in order to accommodate Canadians who love the brand.
This is when Pirate Joe’s was born. Hallatt began to make weekly trips to Bellingham to stock up on Trader Joe’s products, sometimes spending up to $5,000 in one trip[1]. He brought these items back to Vancouver and began selling them at a marked up price.

Upon hearing of Hallatt’s business ventures, Trader Joe’s filed a lawsuit and immediately banned Hallatt from entering their stores. Instead of halting his business, Hallatt simply sent friends down to the states to complete the shopping for him. Just this week, Hallatt came out of this lawsuit on top, and will be allowed to continue to run Pirate Joe’s.

Trader Joe’s argued that this was hurting their brand, however it’s possible that the lawsuit they came up with themselves may have hurt their brand even more. Trader Joe’s was attempting to bring down the ‘little guy’, which from a PR perspective just looks bad. If Canadian customers really are responsible for 40% of Trader Joe’s purchases in Bellingham locations, maybe it actually was time for Trader Joe’s to branch across the border[2]. Instead of creating a lawsuit, they could have welcomed the driven and passionate man behind Pirate Joe’s into their company, and had him be a part of opening their first Canadian location.

As the fall season rolls around, damp drizzle replaces the summer sunshine, leaves begin to float to the ground, and pumpkin flavoured everything is everywhere. Yesterday, I finally gave in to this fad, and ordered my first Pumpkin Spice Latte at Starbucks.

Approaching the drink’s tenth year anniversary[1], Starbucks has sold over 200 million of these popular drinks[2], and last year alone Canadians downed upwards of 1.2 million litres of Pumpkin Spice Latte[3]. So, what makes this drink so popular? At around $4 a drink, the price is likely not the reason. Possibly the limited season of the drink pushes consumers to get as much of it while they can; last year there was so much demand that Starbucks experienced a pumpkin spice shortage, sending loyal customers into a frenzy.

With the success Starbucks has had, it is no surprise that several other companies are jumping on the pumpkin bandwagon. Tim Hortons is already selling their version of a Pumpkin Spice Latte, and McDonalds will begin selling a McCafé Pumpkin Latte competitively priced at $2.89 for 16 ounces[4].

Starbucks, Tim Hortons, and McDonalds are constantly battling on every single front for market share. Originally Starbucks and Tim Hortons were head to head to win over coffee consumers, but when McDonald’s introduced the McCafé coffee products, they became a main competitor. With all three major companies fighting each other for market share, the Pumpkin Spice Latte has become the battle of the fall.

* Note: If you’re one of the people that rolls your eyes at this fad, then you might enjoy the video below:

Last May, we witnessed the horrific collapse of a Bangladesh garment factory that took the lives of thousands of innocent workers. With illegally added floors, poor construction, heavy machinery, and swampy land as a foundation, Rana Plaza was a disaster waiting to happen.

Immediately following the collapse, worldwide criticism took off. How could anyone be expected to work in such a dangerous environment while making a mere $38 a month? The shock and disgust associated with this incident quickly evolved into a wave of guilt, as people looked at the tags of the clothes on their back, realizing that they too were contributing to this global problem.

After the Bangladesh incident, the unethical procedures many companies were accustomed to became such common knowledge, that they had no choice but to improve these procedures. Consumers began to demand knowledge about where their clothes were coming from. As a result, ethics have become a marketing tool for many companies.

TOMS, for example, is not only dedicated to addressing the problems of human trafficking and slavery, but has also guaranteed that for each pair of shoes purchased, a pair of shoes is given to a child in need. All of a sudden, paying $60 for a pair of canvas shoes doesn’t seem so bad.

In addition to company’s individual strategies, this past July, over 15 major companies, including Target, Walmart, and Macy’s, signed onto The Alliance for Bangladash Worker Safety. Many people cried it was far from a solution, but nevertheless it was a step towards one.

Sources:

http://www.cbc.ca/news/world/story/2013/05/23/bangladesh-building-collapse-report.html

Thousands mourn 1,127 people killed in Bangladesh factory collapse

http://www.toms.com/media/files/TOMS_TraffickingSlaveryEfforts.pdf