Zappos has stepped into the future of online shopping.  They have united the friendly service from shopping in a store, with the convenience of shopping from home.  Tony Hsieh, CEO of Zappos, has created a unique business atmosphere.  Hsieh has set up a comfortable and friendly workplace environment.  Unlike most CEO’s, Hsieh sits in a cubicle amongst the rest of the employees.  The business also supplies free food, hosts numerous events, and offers medical benefits.

This is extremely beneficial, as people will enjoy coming to work.  Happier workers equate to happier clients!  If employees appreciate their job they are less likely to leave.  Therefore there will be a smaller turnover rate, decreasing the costs for the company.

Many avoid online shopping, as the after-sales services are usually poor.  Helplines tend to create frustration and anger.   Zappos main value proposition is their strong sense of customer service.  Employees are obliged to participate in a 3-week customer service training program prior to starting work.  Contrary to most help desks, Zappos employees remain on the phone for as long as the client wishes.  Zappos has adopted effective business ethics, opening the door to a new way of running online businesses.

Resources:

http://about.zappos.com/

Douglas Todd, a popular North American writer.

Douglas Todd made a compelling case in his blog about Canada’s immigrant workforce.  Canadian businesses have been heavily reliant on foreign workers to work for less pay than Canadian workers.  This intake of immigrants, however, has caused underemployment and unemployment throughout Canada.

Employment minister, Jason Kenney, expressed his disproval of the reliance on foreign workers.  Companies tend to hire foreign workers who are not properly suited for the job.  Immigrants are now required to provide an assessment of their education when applying for Canadian jobs.  This is to ensure that their level of education is close to Canadian standards.

Jason Kenney: Canada’s Minister of Employment and Social Development and Minister for Multiculturalism.

As Todd believes, Canadian businesses should hire Canadian workers.  The government should enforce policies which make businesses inclined to employ local employees.  Not only will it lower Canada’s unemployment rate, but also decrease the underemployment rate.  As many immigrants come to Canada underqualified since standards vary in different countries, they end up working “survival jobs”.  If companies are not hiring immigrants with the necessary qualifications, it is beneficial for all if they began hiring the qualified Canadians.

Resources:

http://www.calgarysun.com/2013/04/20/canada-immigration-minister-jason-kenney-calls-for-tighter-rules-higher-standards-for-foreign-workers

http://blogs.vancouversun.com/2013/11/15/jason-kenney-tells-business-dont-expect-migrants-to-solve-your-needs/

When launching a new business, it is beneficial for the company to differentiate themselves from other companies.  Wade Larson, a former Sauder student, offers major points of differences in his company Urthecast.  Urthecast has set up two high-definition cameras aboard the International Space Station.  By live streaming images and videos, people will be able to see the world from a new perspective.  Larson’s company will be the first to offer a live video stream of the planet earth 24/7 for no charge.

Urthecast intends on bringing in revenue through advertisements and selling information to various businesses and governments.  There are many opportunities for this company to grow and expand.  Urthecast is able to partner with numerous agencies, such as those which specialize in natural disaster relief or environmental monitoring.

The company has already sparked intrigue not only with agencies, but with the general public, as it is the first of its kind.  Currently, stocks are being offered at $1.88 Canadian per share, with the market value being $109.18 million.  Urthecast is a creative and a true piece of ingenuity.  Depending on how Larson markets his establishment, the future of Urthecast may be substantially popular and profitable.

Resources:

http://www.bloomberg.com/quote/UR:CN

http://www.urthecast.com/

http://online.wsj.com/article/PR-CO-20131114-913437.html

Google Plus’ plan to release user names and photos into the public in attempt to advertise at a more personal level, caused immediate controversy.  With a simple like or a follow, the user’s comments are broadcasted over online ads.  Many believe it is an invasion of privacy, and others think it is a clever innovation.  Users have the opportunity to opt out, but must physically change their settings in order to do so.

Clarisa Madilao concluded that “Google users will soon become product or brand endorsers.”  As Clarisa said, it is highly important for Google to keep user privacy a priority.  This technique is innovative, as people are more likely to invest in a good or service if a friend or family member recommends it.  A sense of trust is formed with the company.  The initiative generates feedback for the company, as well as offers useful, reliable information to consumers.  These “shared endorsements” are bound to get criticism no matter what Google chooses to do.  Depending on their strategy, this program could either thrive or collapse.

References:

https://blogs.ubc.ca/clarisamadilao/

http://www.cbc.ca/news/technology/google-shared-endorsement-ads-spark-user-backlash-1.2074983

A negative spotlight has been casted down on numerous Western clothing stores for discrimination, including Abercrombie & Fitch and Lululemon.  Lululemon is known for its high-end yoga wear.  In 2012, Lululemon sold $1.4 billion worth in merchandise.  However, when products began getting recalled for poor quality, the company took a turn in the wrong direction.  Chip Wilson, founder of Lululemon, put the blame of pilling and sheer products on the customers.

Michelle Sieklucki believes Chip Wilson was wrong to make these claims.  I agree with her point of view, as it is unlawful to discriminate against certain customer segments.  Chip Wilson’s thoughtless comments of women buying clothes which were unfitted for their size, or their bodies just being unsuited for their clothes altogether, was a step away from the positive-lifestyle image Lululemon promotes.  When running a business, it is beneficial to work towards pleasing the customer.  Wilson acted contrary to this belief, causing major controversy.  Although it is naïve to believe every company must cater to women of every shape and size, it is unjust to publicly discriminate against one type.  Many may agree with Chip Wilson, but just as Michelle said, I for one do not.

Michael Hallatt, founder of Vancouver-based Pirate Joe’s, faces lawsuit from supplier.

Michael Hallatt: a name which sparks controversy and battle.  After falling in love with the organic products of USA store Trader Joe’s, Hallatt believed they should be offered to Canadians as well.   In 2012, Michael Hallatt opened Pirate Joe’s in Vancouver.  Truckloads of Trader Joe’s products brought over the border by Hallatt were to be resold at a premium.

A war between Hallatt and Trader Joe’s erupted.  Trader Joe’s claimed Hallatt falsely advertised their product and disregarded a federal trademark.  However, Hallatt purchases products at their retail price, bringing in revenue for Trader Joe’s.  Unfortunately, winning the lawsuit did not remove “Michael Hallatt” from the black-list, forcing Hallatt to hire shoppers.

Pirate Joe’s storefront in Kitsilano, Vancouver.

Pirate Joe’s is unsustainable, as taxes and costs of legal battles create a low profit margin.  Rather than creating friction, Trader Joe’s ought to see Pirate Joe’s as an opportunity instead of a threat.  Michael would make an exceptional cross-border employee as he knows the products and the business model of the company.  Partnering with Pirate Joe’s offers an increase in business and an easy way into the Canadian economy.  Until they come to this realization, Pirate Joe’s will remain: “Unauthorized.  Unaffiliated. Unafraid.”

References:

http://www.traderjoes.com/about/our-story.asp

http://business.financialpost.com/2013/10/04/trader-joes-pirate-joes-lawsuit/

http://www.dailymail.co.uk/news/article-2395935/Michael-Hallatt-shop-Man-spends-350-000-Trader-Joes-Seattle-resells-profit-Vancouver–hes-sued.html

Another company criticized for discrimination and unacceptance is nothing new.  Bullying and speaking ill of the disabled have become a prevalent topic within our society.  Companies are obliged to take this in

The 2013 slogan “DUMB IS never cute” was immediately recalled after public outrage.

to consideration when marketing and branding.

Vancouver-born business Aritzia was criticized this summer for being inconsiderate to those with disabilities.   The summer-slogan “DUMB IS never cute”, for the Talula, line were printed on ribbon which was then attached to tags with hands forming sign language letters.  Customers were immediately appalled, as “dumb” seemed to refer to those who possessed speaking disabilities.  Is Aritzia at fault or is the public overreacting?  Aritzia director of public relations, Corinne Kepper, explained their intentions were positive: “to celebrate smart girls and girls who are proud to be smart.”  However, their intentions are irrelevant if customers are offended.

In 2009, Aritzia reeled in over $2000 in sales per square foot, four times the industry average.  Aritzia is rapidly growing, with 52 stores across Canada and the US, and more on their way.  The company has recently began online shopping opportunities.  However, if this upscale boutique wants to further build their business, they must be cautious of how they sell their products and themselves.

References:

http://www.torontosun.com/2013/05/22/aritzia-tags-offend-disability-groups

http://www.canadianbusiness.com/companies-and-industries/an-empire-state-mind/

http://www.theglobeandmail.com/report-on-business/rob-magazine/aritzia-fashionably-late-to-internet-retailing/article4572317/

http://www.businessoffashion.com/2009/08/ceo-talk-brian-hill-chief-executive-officer-aritzia.html

Blockbuster permanently closed its doors in Canada in 2011.

“Want to rent a movie from Blockbuster tonight?” A question from the past.  No longer is it needed to make the trek to the Blockbuster on the corner.  Nowadays it merely takes a click of a button to watch the latest movies.

Blockbuster was once the leading company in rental movies and games.  However, with businesses such as Netflix and Redbox, Blockbuster seemed passé.  Netflix offered a convenient way to stream movies and shows.  It proved to be one of Blockbuster’s main competitors, with stocks consistently climbing.  Billionaire investor Carl Icahn made numerous attempts to expand their product.  In 2005 he pushed for a DVD-by-mail service, which only dug the company into a deeper hole. Running for nearly 26 years, Blockbuster filed for bankruptcy in 2010 with a $1 billion debt.  A few months prior, the New York Stock Exchange had delisted Blockbuster Video claiming their stocks were nearly worthless.

It is unfortunate for long-time running businesses to fall in such a short period of time. It goes to show that businesses must always be growing and altering their product to fit consumer wants. If a company believes they can stand still, they will not stand for long.

Resources:

http://www.huffingtonpost.com/2010/09/23/blockbuster-bankrupt-vide_n_736072.html

https://www.google.ca/finance?q=NASDAQ:NFLX&sa=X&ei=LV1QUsa0BembiQLQ24H4BQ&ved=0CCwQ2AEwAA

Blackberry launched the Blackberry Z10 and Q10

The stocks of Blackberry Ltd has hit a low of 7.75 this year.  In contrast, Apple, one of Blackberry’s major competitors, have hit highs of 674.25.

When Thorsten Heins took over as C.E.O. in 2012, he admitted Blackberry was a year behind.  RIM prided themselves on their sense of durability and security for government and corporate clients.  However, attempting to entice Blackberry customers, Samsung introduced high-level security features and physical keyboards.  To remain a major competitor, Blackberry must alter their products to fit the wants of the consumers, such as higher quality apps.  However, is it too late?

Last Friday, RIM broadcasted tragic financial results.  The company reported a quarterly loss of $965 million; $934 million from unwanted inventory of the Blackberry Z10 phones, and $72 million in layoff charges.  This is surprising as it was once the chosen cell phone of President Barack Obama and Queen Elizabeth.  The company’s largest shareholder, Fairfax Financial, has offered to buy-out the company.  However, analysts believe Blackberries will be relics no matter the owner.  If business continues in this direction, it will only be a matter of time until the final Blackberry user gives up their beloved keyboard.

References: http://www.nytimes.com/interactive/2013/09/29/technology/when-blackberry-reigned-the-queen-got-one-and-how-it-fell.html?ref=researchinmotionltd&_r=0

http://www.nytimes.com/2013/09/28/technology/blackberry-loses-nearly-1-billion-in-quarter.html?ref=researchinmotionltd

Over the past few decades, a spotlight has shone on companies who use “sweatshops”.  The highly popular brand, Gap, was one of these companies.  Although the Gap has made many efforts to rebrand itself “as a leader in ethical and socially responsible manufacturing”, they have been committed of using Indian sweatshops.

Children as young as 10 are forced to work 16-hour days hand-sewing the Gap logos on clothing.  The children are subjected to abuse, work conditions “close to slavery”, and receive the bare minimum pay.  Supervisors claim workers must “work off the fee” the owner paid initially. The Gap denied any involvement, blaming the vendors who violated their agreement to ban sweatshops.  Although the Gap took action immediately, they must create a plan which will prevent this from repeating.  It is unjust for the thousands of people who have to endure terrible conditions in order for a Western company to make a larger profit.

Society needs to realize the consequences they create when cutting costs.  Why are businesses making a substantial profit?  Why are we as consumers paying so little for clothing?  Where along the chain were cuts made in order for cheap prices?  Who had to suffer?  Whether it be the Gap or some other international company the goal is the same: to make money.

Sources:

http://www.theguardian.com/business/2007/oct/28/ethicalbusiness.india