Monthly Archives: November 2014

“If the United Nations was fully funded why would we need the Arc or social enterprise?”

The United Nations is a large organization created to promote international cooperation. This entity is designed for tackling large international issues. Indeed, their funds are needed and justified. So, what’s the point of the Arc or social enterprise?

The Arc Initiative

Think global and act local, this is a core principle of the Arc initiative, and many social entrepreneurs. While the United Nations deals with issues around the world, these issues are often large problems that require the full and immediate attention of the United Nations. This leaves little room for the United Nations to support smaller communities in developing countries.

This is where social enterprise and the Arc come to play. Using a method known as micro financing, social enterprise can promote micro economies in communities where banking, among other things, never existed. The Arc works at the local level as well, facilitating an exchange of knowledge and skills. Aiding communities in South Africa, Ethiopia, Colombia, and Rwanda, the Arc is building a brighter future by building the stepping stones for economic well-being in these countries. With programs teaching leadership and business skills, the Arc is creating entrepreneurs of the future.

Community in Ethiopia helped by the Arc Initiative

I believe the Arc to be an excellent idea. Lack of education is often the factor that plagues developing countries with poor economies, and thus, a poor living standard. By starting at the roots and creating skilled and educated business leaders, these communities may begin to flourish, and perhaps, we may see a future where these countries do as well.

Image sources:

https://blogs.ubc.ca/amnamasud/2013/11/14/arc-initiative/
http://www.sauder.ubc.ca/Global_Reach/ARC_Initiative/Locations/Ethiopia

After reading Logan Presch’s blog on HR, two things come to mind: that’s an interesting point and I disagree. Logan wrote about an article suggesting that HR should be eliminated as a factor for business decisions. He agrees with the article, stating that optimal business performance can only be attained if HR and employee satisfaction are not factors in external business decisions. In my opinion, this couldn’t be farther from the truth.

Happy Zappo Employees Lead to Happy Customers

A business is only as good as its workers. HR and employee satisfaction are very important to a business’ success. A prime example is Zappo, which we examined in class 19. It prides itself and thrives on treating the employees well. While Logan acknowledges this, he believes that manufacturing firms (unlike customer service based companies like Zappo) should ignore HR in external business decisions. However, I see manufacturing firms as requiring HR in external decisions just as much as customer service based companies.

Even if a firm’s responsibility is to maximizing its profits, HR still need be considered in external decisions. Consider the investment made in the workers and their performance on the job. External decisions, like it or not, will affect employees. HR is crucial in this sense. Again, a business is only as good as its workers. Without the consideration of HR in external decisions, companies will suffer. Manufacturing companies are no exception.

For Logan’s original blog post, see this link.

Image source: http://archive.fortune.com/magazines/fortune/best-companies/2013/snapshots/31.html

Daniel Starr’s blog “Corporate Crime & Harper’s Government” discusses an article about Prime Minister Harper’s regulations on companies trying to do business with Canada. He believes, as does the author of the article, that Harper’s restrictions on contracts with companies are too strict. Such “strict” rules include not initiating contracts with businesses that have been convicted of serious crimes anywhere in the world. While it may seem unfair, I believe it is necessary for the government to set such rules and laws.

PM Harper Shows his Softer Side

I used to favour a more laissez-faire approach to the market, similar to that of Hong Kong’s government system. Indeed, Hong Kong has seen significant economic growth in the last couple of decades. However, success should not merely be measured economically. Social responsibility and social growth are also essential in any society. It is difficult to give such a task to businesses, as their focus and skills lie with profit maximization. Where should the onus of social responsibility fall? The government, as it is also their job to ensure that the general public’s interests are met, on top of keeping organization and structure of its society.

In this situation, where Daniel argues that many may suffer from the illegal/unethical actions of a few, it is also true that many may benefit from the illegal/unethical actions of a few. Thus, that argument does not justify milder regulations with these companies. Yes, these laws may be strict on these companies, but it also does its job as a deterrence. As the rule setters ensuring the public’s general interests, sometimes the government has to show tough love.

For Daniel’s original blog post, click here.

Image source: http://www.huffingtonpost.ca/rachel-decoste/harper-seven-years_b_2539322.html

According to this article, it is important for business owners to “talk money” with stakeholders, including suppliers, customers, and employees. The three main reasons are it shows confidence, it shows you have listened, and it’s a win-win.

Talking Money

Just like for business owners, I believe that this philosophy extends to all aspects of business. As I have come to learn, at least a general understanding of other fields other than your own is essential to becoming a successful and thoughtful person in any area of business. In other words, an accountant should be able to “talk marketing” and a person in marketing should be able to “talk operations”. While other fields may not interest you as much, it is important to have an understanding of them for a broader view of the business world and to be able to acknowledge and respect other perspectives (though agreement is not necessary). Even beyond business, it is important to understand what you are working with. For example, an entrepreneur in the gaming industry should be able to “talk coding”.

Above all, knowledge shows understanding and respect. Not just for others, but also for the business. The philosophy “it’s your business” requires knowledge and appreciation of one’s work and work environment, and benefits both the person and the business, regardless of whether the person is the owner or an employee.

For original article, click here.

Image source: http://valueofsimple.com/daily-money-manager-hand-guide/

After years of declining sales, Pizza Hut has taken the initiative to completely remodel itself. “So when you think of Pizza Hut, you think of a chain that has taken, essentially, a giant pizza, thrown a bunch of stuff on it, thrown it up in the air, it’s falling down, and they’re hoping it falls right side up.” According to marketing reporter Bruce Horovitz, that is Pizza Hut’s current situation.

New Pizza Hut Logo

Indeed that is the case. Trying to appeal to the younger consumers, Pizza Hut is now moving towards a restaurant where one can order and customize their pizza in numerous ways. With an additional eleven new recipes, ten new crusts, six new sauces, five new toppings, four new flavours, Pizza Hut is going all in. There’s more. With a new logo, new uniforms, and a new pizza box, it’s fun, it’s new, but most importantly (with all their chips in the pot), it needs to work.

Evaluating their business with the business model canvas, we can see that their revenue streams have been suffering sales declines for eight consecutive quarters. Pizza Hut has already found the biggest root to this issue, its value proposition. Now, it is attempting to change the outlook of its brand. However, is their method the best way to tackle this situation?

No. Instead, I agree with Darren Tristano (executive vice president at Technomic), and suggest a gradual approach with smaller changes over time. Such drastic changes, though targeting the younger consumers and making Pizza Hut seem more “hip” and “fun”, may also be overwhelming for customers, especially the chain’s loyal customers which Pizza Hut does not want to lose.

For original article, click here.

Image source: http://www.indiaprwire.com/pressrelease/food/2011021878191.htm