Jordon's Next Level Blog

With the mega explosion of the Icelandic volcanoes, the giant plume of ash and volcanic dust is creating a headache for commuters worldwide. The name of the volcano Eyjafjallajökull, is just about as unique as the problem itself. The ash cloud is preventing flights from going in or out of the majority of Europe. As many as 81,000 flights have been cancelled since April 14th when the volcano erupted. This huge number is very costly to the already weak aviation industry. According to experts, it is costing the industry $300 Million a day for the cancelations.

The massive ash cloud making its way over Europe, preventing millions of commuters from reaching their destinations

As such eruptions are difficult to predict and measure, many of the aviation companies were not well prepared for such a disaster. If some were already struggling, the cancelation has made it even worse. Companies in well off positions may have had the stability to deal with such sporadic situations, but it may be devastating to smaller ones. Currently the plan is to section the European Airspace into areas where planes are able to fly, slightly alleviating the situation at hand.

Hopefully the weather and atmospheric currents are in the favour of the aviation industry and planes start flying as soon as possible. The future of the aviation industry will soon need to prepare itself for other imminent naturual disasters such as the eruption of Eyjafjallajökull.

The mountain in Iceland erupting.

After completing a set of questions, my carbon footprint was calculated at 4.739 tonnes of CO2 per year. This number was somewhat intriguing to me. The sheer amount of CO2 that can be produced by a single human being is surprising as extrapolating this number presents a gargantuaian amount of CO2 that is emitted by the entire world.

The questions are very thought provoking as they questioned a multitude of house hold energy usage and saving techniques. Some of the energy saving methods I have never thought about such as windproofing windows and wrapping thermal blankets around water heaters. These types of activities were always taken for granted and I’m sure a vast majority of the population also does not go out of their way to do it. It made me really think about what I can do in the future to become even more eco-friendly and how if everyone was aware how it may really change the planet.

My immediate plan is to change my diet by adjusting to one that is more focused on local fresh foods as opposed to foods that are processed and transported long distances.

Just filling out the questionnaire and learning about your carbon footprint is the right direction for millions of people around the world. Just as it has allowed me to think about my impact on the planet and re-evaluate how I can change, it should do the same for others. So take the first step, go to the link below and try it out for yourself!

• http://go-beyond.ca/carbon-footprint-calculator

Within the corporate ladder of the well known bank, Royal Bank of Canada, lies a diverse team of executives and directors. The company has recently been awarded the Catalyst Award, a distinction given by the non-profit organization to honour ‘innovative organizational approaches with proven, measurable results’.The step into the multicultural organizational structure is something that business around the world  are slow to step into. RBC sees this as a major step forward, as Gord Nixon, the CEO of RBC describes as ” diversity through two different lenses. From ethical perspective, it’s the right thing to do, but it also represents incredible business potential. To ignore the value offered by this huge part of Canada’s workforce and potential client bas is a missed business opportunity.” This reflects upon the changing landscape of multiculturalism and co-existance in Canada and the rest of the world. This in turn will help create a unique organizational culture for RBC and it will distinguish themselves from other companies. The diversity is a strength that RBC prides themselves on having and they promote it through the organization from the very top of the ladder to the bottom. Their business decisions are based upon these values and it will pave the road for success in the future. This change in organizational structure and culture should be adapted for many other large companies as the cultural landscape of our world changes too.

Google is planning once again to capture another market and earn billions of dollars. This time, the target is online website advertisements, which may even grow to a $10 billion market this year. Surprisingly, Google only attributes 4% of its total revenue to display advertisements online, around $1 billon. Compared to the rival company Yahoo, where they have been earning approximately $6.5 billion dollars from online advertising.

The iconic company

This year however, that may change, as Google is setting itself up for a come back. Google strategically acquired multiple companies to help with this online market, by purchasing Youtube for $1.65 billion, and Doubleclick for $3.1 billion.  In addition, Google will use the marketing technology offered by another company that they bought, Teracents, and Google’s own technology called AdWords to effectively capture revenue from this growing market. Google is developing the advantages of cheaper advertising online and wishes to expand its grasp on the particular market. This move by Google has not gone unnoticed by their competitors, mainly Yahoo. CEO of Yahoo, Carol Bartz has made the announcement to step up interest in professional websites and other measures. This will definitely become a lively market for these giants to compete and it will be interesting to see what each company does next.

http://www.businessweek.com/technology/content/feb2010/tc2010027_356976.htm

Earl Jones, a financier in Montreal has a first hand account of what the possible consequences of a breach of business ethics may entail. Judge Helen Morin recently sentenced Jones to 11 years in prison for his involvement in a Ponzi scheme that defrauded clients approximately $50 Million Dollars.

Jones pleaded guilty to misleading and in essence stealing money from 158 clients over the past 2 decades. This huge amount of money that was illegally acquired, has a pivotal role in terms of business ethics. This case will help open the eyes of millions in the business world, allowing them to see that courts and society will not stand for such unethical practices. It will also show that unethical behaviour happens everywhere and is still ongoing problem.

This case also shows the dark side of greed and money, as Jone’s family describes it as corrupting him and turning him against everyone he knew. He started off his career as an avid hockey player, and ended it off with a bad reputation in the financial world. Due to the non-violent nature of this crime, if Jones displays good behaviour, his prison sentence may be relaxed to 22-months.

http://www.vancouversun.com/business/Disgraced+financier+Earl+Jones+learn+fate+today+friends+tell+trust+built+lies/2565810/story.html

As one of the most prominent motor vehicle manufacturers, Toyota’s reputation has been tested as they continue to recall 437,000 2010 Prius hybrid models. The recalls are a result of problems to do with the braking system and the gas pedal sticking or lagging.  Toyota claims to have a solution to this problem, an ‘easy’ fix that has to do with the anti-breaking system; however, it does pose other significant problems. The sheer amount of vehicles that need to be recalled creates a challenge of acquiring the cars and then transporting them to locations where they are fixed all the way to delivery back to the initial consumers. This obviously creates a large cost that the company must bear. Just like any other company that experiences large recalls, the publicity destroys and tarnishes their reputation. The stock price for Toyota fell 20% in January after the announcement of the recalls. To make matters worse, the President of the company, Mr. Toyota, has been criticized for his lack of involvement into the issue and his slow response. This issue deals with problems in the manufacturing all the way to the organization of the company and it must be addressed if the company wishes to regain its reputation.

Thousands of these cars are being recalled

http://www.theglobeandmail.com/report-on-business/toyota-recalls-437000-prius-hybrids-globally/article1460824/

The Spanish fashion company, Zara, has been immensely successful in expanding and outdoing their competitors. They are renown for their creative and efficient supply chain that allows them to ship out new trends of fashion in 2-3 weeks compared to other clothing retailers which usually take months to do the same.
How was it even possible for this relatively new clothing retailer to pull out as a leader in the fashion industry? Multiple factors are attributed to their success which mainly encompasses their unique supply chain. Zara takes full control of their production and distribution which has been proven to work. Zara engages in a highly competitive design and manufacturing style, by really pushing design teams to be the first ones with the new fashion trends and getting the edge over their competitors. However, Zara’s success is also due to their extensive use of outsourcing which allows them to adjust to the rapid changes in the fashion industry. They outsource their clothing to parts of Spain, Europe, Asia, and Africa just like many other clothing retailers. Despite the lower costs of production it does pose some ethical issues. In many of these nations the workers who create the clothing garments are underpaid and do not abide by labour laws. We must look at the whole picture of Zara, from its successes all the way to ethical issues that are brought upon by the success.

This recent article titled ” Why ‘Made in China’ is a Mark of Shame” by Paul Midler focuses on the ethical issues of goods that are produced in China. Everyone has witnessed some form of this whether it is your televisions or your furniture, almost all products in households are manufactured in China. Why? The amazingly low cost of production in China. This aspect that millions of business leaders take advantage of allows for unethical practices.
In China, the factory owners and investors generally do not believe or care for the well being of the good’s final consumer. They focus on gaining profits and reducing production costs. In order to achieve this, quality must depreciate. As Midler describes it as ” quality is seen as a barrier to greater profitability” . This poses multiple ethical issues as potentially dangerous or harmful products begin to hit the store shelves around the world. Examples such as the tainted baby formulas and even excessive amounts of lead in products.
In general, businesses must think about the balance between profitability and ethical practices. The cheaper production and supply chain may not always be the answer.

http://www.telegraph.co.uk/finance/comment/6962703/Why-Made-in-China-is-a-mark-of-shame.html