Tag Archives: sec102

Micro-entrepreneurs in Collaborative Economies

The traditional ways of the economy have long frustrated those freshly entering the workforce, prompting the creation of “collaborative economies”, a rising movement that strives to “save people time and money through cooperative efforts.”

“AskforTask” is the perfect example of what a collaborative economy is. This is an online marketplace where “askers” request for “taskers” to complete tasks at a negotiated price. Similar to sellers on sites such as Etsy, those who work through AskforTask have been dubbed “micro-entrepreneurs”, who continuously build their personal brand upon job completions.

This method allows one to obtain invaluable work experience and build networks while they continue education or search for a full-time position. Although most enter for financial reasons to begin with, many stay for the human connections they make while doing tasks.

AskforTask Helping Canadians Find Jobs They Love

As a student, entering a collaborative economy or becoming a micro-entrepreneur sounds exceedingly appealing, as I am able to make connections and money while completing school. This article has illuminated a new definition of “entrepreneurs” for me, showing just how fast business sectors adjust to keep up with the changing times as well as the importance of micro-entrepreneurs, something Etsy CEO Chad Dickerson also agrees with.

November 18, 2013Permalink Leave a comment

Need to Pay Tuition? Use Aeroplan Points!

Loyalty programs have always been a method companies utilized to try and keep consumers. This usually consists of collecting points in exchange for free items or “store money” that can be used for the following purchase. The market has been greatly saturated by variety though; consumers are now more perceptive when choosing which programs to join, selecting only those that are relevant.

Aeroplan saw this happening, and in addition to their current base of rewards consisting of flights, charitable donations, song downloads, necklaces, and fondue set, they have now expanded to include tuition with Higher Ed Points Inc.

“This was a category that we hadn’t touched before, and nobody else was playing in that area.” ― Francine Sternthal, Project Management Director, Aeroplan

Although 90% of Canadians belong to at least one loyalty program, this number has decreased from 94% in 2009. Sternthal makes good use of the first-in-the-market advantage, giving Aeroplan an edge at targeting youth with this innovative idea. While Bank of Nova Scotia and Cineplex Inc. have experience success with their SCENE loyalty program for young people, they are not active in the industry, giving Aeroplan even higher chances of success.

The use of tuition as a reward is infinitely more appealing to youths than fondue sets. As a student, I understand the pain of dealing with ever-increasing tuition fees and so I believe that if Higher Ed affiliates with more schools, it will definitely attract a large amount of the young adult consumer base.

November 17, 2013Permalink Leave a comment

App for Brats: a Market to Help Parents

Parenting has always been a tough task, but now parents can take a different approach instead of yelling to get their children to eat their vegetables.

Educational software and related content amount to a stunning $7.8 billion a year in the United States, with schools as the top consuming segment and parents trailing close behind. As such, app-makers have expanded their target markets ― and therefore their products ― to suit parental needs.

The common value proposition all educational apps deliver is “learning made fun”. Innovators have realized by making “dull” activities such as chores, eating healthy, and learning seem like a game, children are more likely to engage in it. In addition, the current generation, bombarded by technology as they are, pays more attention to devices such as iPads and tablets than their parents. Using apps would therefore be the natural solution to dealing with disengaged children.

“A little bit of digital babysitting is absolutely fine. But just like you don’t leave your child totally alone in a real playground; don’t leave them totally alone in the virtual playground.” ―Dr. Kate Highfield, Macquarie University

Parents should not rely wholly on these apps though, as it is vital for them to personally support their child in the growth process. As appealing as it is to obtain free or cheap apps to replace teaching a child math, learning in the real world will better prepare them for the future.

November 17, 2013Permalink Leave a comment

Using One Method on Another: How to Beat the Kickstarter Odds

Often used for start-ups, Kickstarter is “the world’s largest funding platform for creative projects.” It does, however, run on an all-or-nothing policy, meaning $1 off the target amount would cause a project to fail; this has created a failure rate of 56%.

Janice Cheam, co-founder of Energy Aware Technology, knew about this when she considered launching a crowdfunding campaign for new product idea Neurio on Kickstarter.

“Neurio is a home intelligence technology that monitors the power a home uses, and calculates the cost of running individual appliances in real time.”

Cheam knew Neurio would be desirable for homeowners, but was unsure if they would be willing to buy it. Kickstarter allowed her to put the idea out onto the market beforehand so as to gauge consumer interest levels, all the while raising funds for initial manufacturing costs. Keeping the failure rate in mind, Cheam recruited niche bloggers to help promote the brand story before official press releases to the media, effectively planting appeal and information that were waiting to be found once major media outlets learned about Neurio.

Cheam reached her funding goal in half the designated time acquiring almost double the amount, showing how meticulous planning can lead to success. She applied lean-start up methods and put her idea out there to measure market interest, evaluating whether or not further improvements would be needed. This highlights how knowledge in one aspect of business can be applied elsewhere to bring success.

November 17, 2013Permalink Leave a comment

Identity Crisis: What is Etsy now?

Customers and sellers of Etsy, a popular online marketplace for handmade crafts, are enraged by a recently implemented guideline meant to accommodate vendors who have a hard time meeting growing customer demands. The new policy allows sellers to hire employees, outsource shipping and fulfillment, and use manufacturers to produce their designs, all in exchange for transparency regarding the works of the business.

 “Your place to buy and sell all things handmade.” ― Etsy sales pitch

Etsy users complain about the site deviating from their original value proposition and how it is becoming a sales platform for small businesses, essentially losing the ethos that differentiated it from eBay.

Etsy rivals Aftcra and Zibbet jump for joy at the news, as they both advocate a strict definition of handmade. Zibbet even reported increased account registrations on their site after Etsy’s policy announcement.

As online blog Babbage points out, Etsy buyers “seek a sense of authenticity” from the items they purchase on this site. Elizabeth Wayland Barber, however, argues that none of the object we think are “handmade” truly is, as they almost always have manufactured parts (eg, processed thread and yarn).

As it stands, I agree with Barber; “handmade” items today are rarely that. Etsy sellers are simply trying to be more efficient with their sales by using manufactured parts to create their products. What should matter more is the effort and ingenuity used to craft the item; that is my definition of handmade.

How do you define “handmade”?

November 17, 2013Permalink Leave a comment

Corporate Social Responsibility: Now a Law?

6 core areas of CSR

As pointed out by fellow student Vivian Jung, corporate social responsibility (CSR) has become an important factor in the success of a business.

In fact, India has recognized how crucial CSR is by instigating a law mandating its implementation in a company. The 2013 Companies Act requires all companies to direct two percent of average net profits in the three preceding financial years for CSR activities. Firms will have the freedom to select the causes they would like to contribute, and are required to appoint an internal CSR committee within the company. Should they not comply with this law, businesses will have to disclose reasons in books as to why they were unable to fulfill this requirement or face disciplinary actions.

Critics of this law say that pressuring firms to incorporate CSR into their business models will not produce the positive outcomes the Indian government is hoping for. I disagree with this, however, as companies will still be giving positively in some form to fulfill this social commitment, perhaps simply not as effectively or efficiently. A benefit of this law are the openings in employment opportunities for fields like social work and environmental development, as some see CSR equivalent to industrial social work.

November 17, 2013Permalink Leave a comment

Un-marketing Rhino Horns

As opposed to thinking of strategic ways to sell a product, governments must put their heads together to come up with a way to “un-market” rhino horns before the precious animals become extinct.

Rhino horns are a popular commodity in Asia used as a symbol of rank and for “supposed” medicinal purposes, but the latter has never been proven. The market has grown in South Africa due to an influx of Chinese immigrants, creating new records for the number of rhinoceroses killed per year.

In an effort to obliterate the market for rhinos, Tanzania has proposed a tactic in which horns will be injected with poison to discourage purchases. After all, why would anyone pay a high price for a potentially toxic product? The only concern is for the long-term health of the rhinos, possible complications with the injection, and if people will still risk buying a horn despite the dangers.

Other suggestions include educating people about rhino horns, legalizing the sale of rhino horns so as to prevent black markets while decreasing the incentive for poachers, and ―if the former suggestion goes through― increasing supply to drive down prices. Problems with these recommendations include government indecision/lack of action, possibility of more demand than supply, and the inelastic nature of the supply of rhinoceroses due to their breeding patterns.

So what else can we, as human beings, do? What are other ways to un-market rhino horns?

A de-horned rhino, a sight that no one wants to see.
October 8, 2013Permalink Leave a comment

From the West to the East: Energy East

While Canada’s oil industry waits on decisions regarding TransCanada’s Keystone XL and Enbridge’s Northern Gateway pipeline, the former company has put together an alternative project: the Energy East pipeline.

A CAD$12 billion pipeline to connect oil sources in the west to demands in the east, Energy East would link Hardisty, Alberta to Quebec and New Brunswick, where Irving Oil ― Canada’s biggest refinery nearby  ― would partner with TransCanada to build a terminal so that Canadian oil can finally reach greater markets.

Unlike its predecessors, Energy East’s success rate is high. Where other pipelines needed to acquire land for its route, Energy East proposes a route that will build on existing infrastructure, adding another 1,400 km of pipe where TransCanada already claims most of the necessary rights-of-way. In addition, there’s wide support from Irving Oil to Stephen Harper, who either want to improve the refining industry or obtain energy security.

However, there are still hurdles to jump before pumping 1.1 million barrels of oil per day. Opposition is predicted to come from Ontario, who is concerned about its benefits, and Quebec, a province still shaken from a derailed train explosion this past July.

With the risk all pipelines bring, some wonder if it’s worth it. Analyzing the information, I’d say Energy East would be the most “worth it” of the three projects, as it has considerably less risk to the environment with a lot to gain.


A news clip discussing the Energy East Pipeline. 

Nevertheless, compared to other pipeline projects, Energy East’s future looks bright. Having secured crucial support, it’s taking firm steps toward official operation in 2017.

October 8, 2013Permalink 1 Comment

E-cigarettes: a rising demand

In recent years, smoking has fallen in many countries; however, consumers have turned to “vaping”, the result of a new alternative called E-cigarettes.

E-cigs have become the new hype, and work by heating liquid nicotine into vapour which smokers then inhale and exhale. In Europe alone, 7 million people use e-cigs, where it competes with cigarettes and smoking cessation products without the taxes and regulations.

As e-cigarettes rise in popularity, the tobacco industry must consider whether or not a “Kodak-moment” (when Kodak, the biggest maker of camera film, failed to adapt to consumers’ change in taste) will come and how they should adapt to stay in the game. Some firms have taken pre-emptive measures against this possible future, using tactics such as taking stakes in e-cigarette companies or developing their own products; nicotine-inhalers and less-toxic tobaccos are expected to roll out within the next few years.

Check out this news report regarding the safety of e-cigarettes (watch till 4:05)

The safety of e-cigs are controversial; however, it does not seem to be affecting the rising demand for it. Yet.

Standing alongside Rafael Castillo, I agree that although tests have been done to judge the e-cigs’ effectiveness in smoking cessation, its use can only be condoned, not recommended. Reasons being it fails to ween one out of the habits of smoking (holding, lighting, and breathing a cigarette) and some users may misinterpret e-cigs as a “healthier” alternative to tobacco, continuing their intake of nicotine through that.

Fellow student Scott Marshall also gives his take as to what the European Union should do. What’s your take on e-cigarettes?

October 8, 2013Permalink Leave a comment

Edgy Advertisement

Trying to Be Hip and Edgy, Ads Become Offensive

Controversial ad by Mountain Dew, whose parent company, PepsiCo, had to apologize on behalf of later on.

In an effort to breakthrough to the millennial market, many major companies have fallen victim to ad controversies, where the viral commercial they wanted to create comes out offensive and degrading, causing public outcry. The market has become an increasingly competitive place, and companies now view the production of ads as a “race to retweet and to click ‘thumbs up’, ” (Nancy Hill, president and chief executive of the American Association of Advertising Agencies) causing the inevitable cycle of contentious ads being released, public outrage, and apologies from firms with promises to never do it again. But does it stop at that? Take PepsiCo for example, a big name corporation facing several controversies regarding its Mountain Dew brand due to vulgar lyrics in an ad sung by Lil Wayne, and another discriminatory ad created by hip-hop producer and rap artist Tyler, the Creator.

Personally, I do not think it will stop. Although I understand the intention of advertising agencies, who desire to create ads that do not get tossed away and forgotten within months of airing, the tactics used are unacceptable. An ad does not have to be sexual or violent in order to attract attention; creativity and humour are alternatives to producing pleasant and popular ads.

Bottom line: edgy advertisement can quickly draw public attention; however, is it ethical to exploit sensitive subjects for the mere publicity?

More information can be found below:

Link to original article: http://www.nytimes.com/2013/05/11/business/media/trying-to-be-hip-and-edgy-ads-become-offensive.html?pagewanted=all

Further reading: http://business-ethics.com/2013/05/17/1631-when-edgy-advertising-sends-the-wrong-message/

September 11, 2013Permalink Leave a comment