This is a response to Seth Godin’s blog about Internet advertising.  He makes a valid argument about how advertising on the Internet may not be as effective as one might believe.  Even though advertising on the Internet, especially on popular sites such as Facebook is cheap, it may not be effective for many reasons.  One of the main reasons is that Internet users are constantly being bombarded by ads and associate most ads as “noise”.  Before a company decides whether to advertise on the Internet or other media sources, the company needs to consider whether people will perceive the company’s ads as an annoyance or if it will add value to the brand’s image.

I definitely agree with Godin’s point that even though the Internet has become a popular hub for advertisements, it’s not the best way to position a company’s brand; and brand positioning and value proposition is extremely important to the success of a company.  It is difficult for a company to position itself in the minds of users because there are so many ads on the Internet and many people associate ads in a negative way since they are skeptical or annoyed with them.

Sources:  http://sethgodin.typepad.com/seths_blog/2011/11/moving-beyond-impressions.html 

This is a response to Kevin’s insightful blog about Corporate Social Responsibility.   I agree with Kevin that companies should not feel obliged to support a social cause because it is unfair to shareholders and consumers.  A corporate executive’s main responsibility to shareholders is to use capital to maximize profits, “the only social responsibility of business is to earn profits while following the laws and basic ethical customs” as stated by Milton Friedman.  It is also unfair to increase prices for a product or service in order to support a social cause because the customer buying this product or service may or may not support the cause.

Just because a company isn’t obliged to support a social cause doesn’t mean that it shouldn’t.  Corporate Social Responsibility can benefit a company by boosting the morale of the company and possibly increasing sales.   Every company has a set of fundamental values and beliefs and if the company supports a social cause that reflects these values and beliefs, it will boost the morale of the company.  Also if a company supports a social cause that its consumers support, consumers will most likely support the company as well thus increasing sales.  In addition, a company that associates itself with supporting a social cause creates a good brand image in the minds of its consumers/target market.

Sources:  https://blogs.ubc.ca/kevinwong/2011/11/16/is-corporate-social-responsibility-truly-socially-responsible/

This is a blog response to Naaz’s blog about annoying advertisements on YouTube.  YouTube currently has 4 main types of advertisements running on its site, including home page advertising, promoted videos, banner ads and recently introduced preroll ads (which run 15-30 seconds before the video starts).   Users are constantly bombarded by advertisements.  So the question remains, are YouTube ads really necessary?

As a frustrated viewer myself, I thought that YouTube ran too many ads on its site and that this took away from the viewer’s experience.  However after reading Naaz’s response and the linked article; I realized that YouTube is a fairly new company and would definitely benefit from advertising.  There are 2 billon views on YouTube everyday and a video being uploaded every minute, all this activity wouldn’t be possible without the support from advertising.  YouTube also have a competitive advantage over other media sources because YouTube can easily identify a specific target market based on the type of video being watched.   Since the Internet and websites like YouTube are becoming increasingly popular, YouTube will have the ability to experiment with different types of advertising over other media sources.   In conclusion, yes ads are necessary for the continued growth and expansion of YouTube.

Sources:  http://www.brandchannel.com/home/post/2011/10/17/YouTube-Wants-Big-Brands-Advertising-Bucks.aspx 

Which is better:  the IPhone or the Blackberry?  Research In Motion products haven’t been doing so well against its competitors Apple Inc. and Google Inc., especially with the launch of Apple’s new iPhone 4s and the increase in popularity of Google’s Android phones.  RIM’s share of the U.S. smartphone market has dropped from 24% to 9% this year due to the disappointing launch of the Blackberry Playbook, a server crash on the Blackberry network this October and slowing sales of Blackberry smartphones.

However there is still hope for RIM, a new report from Gartner Inc. found global Blackberry sales have “stabilized” and RIM continues to see strong growth in areas such as Asia, Europe, and Latin America.  RIM is hoping to increase sales this holiday season by putting nine new Blackberry devices on sale and slashing prices on the Blackberry Playbook, with some retailers offering the Playbook for $200 as an alternative to the $499 iPad.

In my opinion, RIM’s plan to reduce prices during the holiday season to increase sales is a tactic, a quick fix to a long-term problem.  One of the main weaknesses of RIM products is the lack of innovation, especially compared to Apple products.  RIM needs to change its strategy if it wants to compete successfully against its competitors.

Sources:  http://www.vancouversun.com/sports/hoping+Black+Berry+Friday+sales+comeback/5748424/story.html 

Brothers Raja Tuli and Suneet Tuli, owners of Datawind, have an ambitious plan to provide Internet access to the less fortunate in India.  The UbiSlate runs on low speed networks with very low bandwidth costs because the Internet data is compressed. The tablet is also solar powered and only requires two watts of energy per day for the device to fully charge.  The UbiSlate will sell for $60 and unlimited Internet access will be provided for $2 a month.  Providing India with access to the Internet is life changing because the spread of information and ideas is the key to modernization.

As social entrepreneurs, the Tulis applied market base strategies to create a product that would achieve the social purpose of modernizing India.  They integrated market trends such as the increased popularity of tablets (i.e. iPad, Playbook, etc) and the shift towards sustainable products. By providing an affordable and easy way to access the Internet, the people of India will benefit from the access of information on the internet.  The Tulis have created a truly innovative product that will enrich the lives of many, they are currently working on a number of projects to provide UbiSlates in different countries.

Sources:  http://www.cbc.ca/news/business/story/2011/11/21/technology-datawind-ubislate.html

After turning down the proposed deal twice, flight attendants plan on going on strike this Thursday. Air Canada has started preparing for the strike by introducing a “flexible booking policy” where customers can change their reservations for free as long as seats are available. In the event of a strike, they plan on using managers as replacement workers and relying on partnerships with foreign carriers in the case of international flights.

In the proposal, Air Canada planned to improve work rules for “duty days” by introducing a new system to calculate paid times during stopovers. For example, some shifts in layovers can last 13 hours and pay out 6.5 hours of wages, the proposal planned to increase this to 9 hours of paid wages. This work rule would be based on the formula “duty day minus 4 hours” and would be effective October 1, 2012. Despite Air Canada’s efforts, more than 65% of the Canadian Union of Public Employees voted to reject the proposed deal on September 20. Most likely, the federal government will intervene with back-to-work legislation to stop the strike from happening.

There is no question that flight attendants have to work under difficult conditions however I feel like Air Canada proposed a fair deal. A strike will only cause both parties to suffer as Air Canada will lose market share and could go bankrupt (again), thus losing all potential jobs. Flight attendants need to realize how difficult it will be in this economy to find better jobs.

Sources:  http://www.theglobeandmail.com/news/national/air-canada-flight-attendants-could-strike-thursday-after-rejecting-second-deal/article2196189/

With the emergence of shale gas in the U.S. (Canada’s only customer for export), profits in Canada’s natural gas industry have decreased by half but Canada may have found a solution to this problem. Canada has decided for the first time to ship natural gas to buyers in Asia, this $5 billion project started this summer where more than 40,000 cubic meters of hard rock have been excavated at Bish Cove on the north coast of British Columbia. Industry officials believe that Canada has an advantage over its competitors (such as Australia) because shipping times from Kitimat to buyers in Japan, southern Korean and northern China are shorter which will save transportation costs. The Kitimat LNG project is waiting to receive a permit from the National Energy Board. If the Nation Energy Board gives this project the green light, by the end of this decade, 3 billion cubic feet a day of gas could flow through Kitimat.

Exporting to Asia is a great way for Canada to expand its natural gas industry. However this gas export plan will increase Canada’s greenhouse gas emissions and could cause higher energy prices for residential and industrial customers.

Sources:  http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/kitimat-bc-ground-zero-in-the-race-to-fuel-asia/article2195213/

Engineer Bradley Pierik invented a simple to use filtration device that purified water.  Since there is a large market demand for clean water in developing countries, he decided that starting a business would be the best way to distribute his devices.  He had a great idea for a business venture but he didn’t have the business knowledge or connections to turn his idea into reality.   While studying engineering at UBC, he decided to take some business courses at the Sauder School of Business’s Robert H. Lee Graduate School.  After taking a course in technology entrepreneurship, he gained the skills necessary to enter the marketplace.  He started working with the Canadian charity Water School to test his filtration devices in Uganda, the Dominican Republic, Kenya and Haiti, his work quickly attracted the Vancouver business Institute B.  With the help of this institute, Pierik established his company Twothirds Water Inc.  $10,000 in funds has been raised and his company is moving forward with 50,000 to 80,000 units in production.

This case exemplifies how applicable business skills are to everyday life.  No matter how great your idea is, it’s often difficult to pursue a business venture without business knowledge and connections.

Sources:  http://www.theglobeandmail.com/report-on-business/small-business/starting-out/with-no-know-how-how-to-spring-water-filter-device-from-idea-to-creation/article2193471/

(Apple’s Senior Vice President of Worldwide product marketing Phil Schiller discusses the new iPhone 4s at the company’s headquarters in Cupertino, California on October 4,2011)

With the disappointment surrounding the release of the iPhone 4S, rivals to Apple could take a bigger share of the phone market. Even though iPhones are the world’s best selling smart phones, Android phones (Samsung, HTC, LG and Motorola) have a greater combined market share than Apple’s iPhone. Apple’s biggest rivals Samsung Electronics, HTC, and Nokia increased their shares right after the release of the iPhone 4S. Apple’s decision to not launch new hardware gives rivals the opportunity to catch up to Apple’s lead before the iPhone 5 arrives.

Apple plans to keep their lead by lowering the prices of their phones, the iPhone 4 will sell for $99 on a contract and the older 3GS model will be available for free on a contract. Analysts note that Apple’s decision to lower prices will help them expand into the low end smart phone market. Despite the disappointment with the iPhone 4S, Apple will still sell millions of iPhones because Apple has such a strong customer base and brand name.

What do you think of Apple’s decision to lower prices instead of releasing a new phone?

Sources:  http://www.vancouversun.com/business/Apple+stumble+opens+door+rivals+analysts/5506208/story.html#ixzz1a5CuPijQ

According to a report released Wednesday, days before the BP oil spill, BP made a series of decisions that complicated cementing operations.  These decisions may have caused the cement seal to break and trigger the explosion.  The decisions included using only one cement barrier and choosing Macondo as their location, this location created an additional risk of influx of oil and gas.  In addition, BP failed to communicate these decisions and the increasing operational risks to Transocean, owner of the Deepwater Horizon.

Further changes to offshore drilling practices have been recommended, including requiring at least two barriers to be placed in a well – one mechanical and the other cement.  The panel also recommended that BOEMRE should do standardized testing procedures on oil and gas wells.

Offshore oil drilling is a hazardous practice that can and has severely polluted the environment.  Thus it is important for all oil and gas companies to take every precaution possible to prevent oil spills.  BP’s decision to use one cement barrier without thoroughly thinking it through (and taking the environment seriously into concern) and not letting Transoceans know about their decisions was extremely unethical.  This resulted in the largest accidental marine spill in history, releasing 78 million litres of oil into the Gulf of Mexico, killing 11 workers, and severely damaging the marine and wildlife habitat.

Sources:  http://www.cbc.ca/news/business/story/2011/09/14/bp-offshore-oil-spill-report.html