source: http://d2qce1f1y0zwhh.cloudfront.net/media/images/stories/businesshandshake.jpg

I agree with Mark Bickford’s blog post, “It’s Not About the Money.” The UN cannot help impoverished nations by simply giving donations. I think companies and organizations should invest in their own futures by educating some of their suppliers or other businessmen in these less developed countries and creating shared values and social entrepreneurs.

During my trip to South Africa, I noticed many workers appeared to be inefficient and unmotivated. The majority of these workers were Black. My ideas on why this occurs are relatively simple: The communities that were primarily Black lacked effective education systems. These people were then unqualified for well-paying jobs and unable to start an effective business, so they are unable to participate in any work save menial tasks without hope of promotion. Lack of hope or change was handed down generation to generation. Until a proper education system is established for the entire country I fear these conditions will not improve.

Businesses should educate the inhabitants in countries such as these so that they are qualified to work in more responsible roles. This would improve the quality of work obtained from these countries, as the workers will be more motivated to achieve higher salaries and will at least have a chance of improving their ways of life. This would also create a population that is able to innovate more easily and more reasonably. It’s not about the money, it’s about telling them they can do better, and showing them how.

Source: https://blogs.ubc.ca/markbickford/2014/11/09/its-not-about-the-money/

source: http://img2.timeinc.net/ew/i/2014/08/18/Taylor-Swift.jpg

I have recently decided, having heard it often on the radio, that I enjoy Taylor Swift’s new single “Shake it Off” from her album 1989. My interest, then, was captured when I saw Hugh McIntyre’s article in Forbes, “Taylor Swift’s ‘1989’ Moves 1.287 Million Copies In Its First Week“. Many believe that the music industry is no longer profitable, due to the arrival of online downloading. I agree that this has impacted the revenue streams of the music industry and of many artists; however, I also argue that the internet has brought with it great opportunities for artists, and not just threats.

The rapid spread of information online has allowed stars, such as Taylor Swift and Beyonce, to be raised to some form of legendary icon status. This insanely powerful name will bring thousands upon thousands of people to stadiums around the world simply to watch them live after having found out about the show on twitter and bought tickets online. It will also still allow Taylor Swift to sell 1.287 million copies of her album in a week. What has changed is the value proposition required to be a successful artist: In addition to recording catchy songs, artists must be willing to put on theatrical shows and stay true to themselves. I expect to see many more legendary musicians in the future, and their fame and wealth may be achieved much more quickly if they make use of the internet effectively to improve their image.

Source: http://www.forbes.com/sites/hughmcintyre/2014/11/05/taylor-swifts-1989-moves-1-287-million-copies-in-its-first-week/

source: http://images.moneymanager.com.au/2012/03/06/3102244/1623105-420×0.jpg

In  Avivah Wittenberg-Cox’s blog post, “LEGO’s Girl Problem Starts With Management“, Avivah states that the mostly-male management team at LEGO is not putting enough effort into the LEGO products that target young girls. Avivah argues that the girls’ LEGO products should, at the very least, be able to perform all the basic functions that are performed by the boys’ toys. I respond by supporting this argument. Would it not make operational sense to have the toys be more similar? This design would mean more overlap in production, which would lead to less equipment that needs to be purchased, reducing costs.

I argue that Avivah is correct in pointing out that it would be strategically advantageous for LEGO to differentiate themselves from doll companies such as Barbie, who have already established themselves at the top of that market. I would add that not putting effort into the girls’ products will severely damage their brand image in the future as this shows LEGO is not promoting gender equality in the same way its competitors may be. LEGO could even produce more gender neutral products as they had several years ago, as this would not force them to lose money on sales and new operational costs. Creating gender-specific toys is not a mistake, but creating a poor quality “LEGO for girls” product line will not only mortify many people in the future, it will increase their operation costs as well.

Source:

http://blogs.hbr.org/2014/09/legos-girl-problem-starts-with-management/

source: http://tony-wilson.com.au/blog/wp-content/uploads/2011/04/useless_kl-300×200.jpg

Having read Riana Ullattikulam’s blog post, “Are Managers Useless?” which describes criticizes the selection process of managers in many fast food chains, I agree with Riana’s argument that flipping burgers is often not a good indicator on whether or not somebody would be a good manager. Rather, as was argued by David McClelland in the Harvard Business Review, “[t]he manager’s job seems to call more for someone who can influence people” (McClelland).

In fairness to those deciding who will receive managerial roles at your local A&W, it is likely difficult to find individuals motivated to manage an A&W that is motivated by a desire to influence people. Based on my own goals and the goals of many of whom I talk to, if somebody desires power in their future, they do not seek it by managing a McDonalds, where they are but a grain of sand on the beach that is the McDonalds food chain. If the role in the organization is seen as being relatively devoid of responsibilities compared to other managerial positions, those who would qualify to be great managers will find other jobs. Those who select fast food managerial positions often need to settle with anybody reliable and hard-working. To solve this problem, managers may be given more power and abilities to distinguish themselves, so that they are not seen as useless no matter what they do.

Sources:

Are Managers Useless?

http://hbr.org/2003/01/power-is-the-great-motivator/ar/1

source: https://huesofasoul.files.wordpress.com/2014/10/game-of-thrones.jpg

A recent article by Issie Lapowsky titled “Down With Cable! Why HBO is Finally Launching a Standalone Streaming Service” highlights the difficulties cable companies face in their quickly changing industry. The article indicates that HBO would gain more viewers by establishing a streaming service, as many consumers see HBO as “one of the last remaining reasons to stick with cable” (Lapowski).

This decision, and the fact that it is highly beneficial for HBO, demonstrates to me the shift in power away from Cable networks due to cost leadership strategies, superior value propositions and effective substitutes provided by competitors. Netflix, for example, provides a massive variety of television programs for $8 every month, a rate that is substantially less than the $120 monthly fee charged by many cable companies. A poll presented in Lapowski’s article indicates that most participants would pay $12 every month gladly for an HBO streaming service, as that is still 10% of what they pay for cable (Lapowski).

In terms of value propositions and substitutes, I think the high cable rates has encouraged many companies to create cheaper and easier means for consumers to watch their television programs. I can find most programs online for rates far bellow those of the cable company without compromising quality. I predict that this competition will likely prove to be the end of many cable companies, unless they manage to establish a new system that is able to better compete with these internet providers.

Source: http://www.wired.com/2014/10/hbo-streaming-service/

source: http://www.vancouversun.com/technology/cms/binary/9284863.jpg?size=620x400s

In the CBC News article, “Skeena River First Nations Oppose Petronas LNG Plant Near Prince Rupert“, the First Nations argue that their fishing will be greatly affected by the new plant on Lelu Island proposed to be built by Petronas LNG. I am unable to take a side in regards to this conflict, as both parties have valid arguments supporting either the construction of the facility or lack there of.

On one hand, not only do the First Nations people obtain much of their food from the salmon that would be affected by the construction, much of their wealth would be affected as well, as the buying and selling of animal-based goods is significant in their culture (CBC). I think many of the small businesses in that region would be greatly affected by the construction of the factory, which would have a negative impact on the economy in that region.

Despite this, the construction of the plant would likely have a positive impact on our national economy. In addition, the land being considered is distant from the land inhabited by the First Nations in opposition of the project. I think this emphasizes the blurred lines in terms of what rights they have with regard to the land in British-Columbia and how much power they have a right to in land development projects.

The results of this conflict will definitely have a large impact on the economies of different regions, but who would pay the greater price?

Source: http://www.cbc.ca/news/canada/british-columbia/skeena-river-first-nations-oppose-petronas-lng-plant-near-prince-rupert-1.2824967

Source: http://fitwellssu.files.wordpress.com/2011/02/grocery-store-lg.jpg

In an online article titled “Online Recipes Will Soon Have a Button That Sends You the Ingredients” by Issie Lapowski, what could very well be the future of grocery shopping is explained. The company Chicory allows recipe suppliers to add “a ‘Get Ingredients’ button at the bottom of a recipe” (Lapowski). The company then automatically adds certain brands (by whom they are paid for priority) to the shopper’s cart and is delivered to them in the near future. Though the consumers are able to switch away from a brand suggested by Chicory, the advantage given by Chicory is more so than a grocery store, where customers compare products before picking one to add to their shopping carts. What interests me about this business, however, is more their value proposition and customer segment which has been brilliantly thought out. The company allows customers to pick their meals for the week (on the recipe site) and order the ingredients for these meals without leaving the web page. The value proposition reduces the pain of leaving the house to buy groceries, provides an easy way to organize meal plans in the short term and also allows food brands to pay for an incredible advertising opportunity. I could see companies such as Chicory doing very well in many cities in North America.

Source: http://www.wired.com/2014/10/chicory/

In Dorothy Pomerantz’s article, “How to get more people into movie theatres (without higher ticket prices)”, the difficulties of the theatre industry in response to the easier and cheaper at-home experience are analyzed. It is explained that many theatres are looking for any excuse to “boost ticket prices” in order to maintain profits, though this is discouraging many customers further due to the financial savings of simply watching movies at home (Pomerantz). The article then refers to the Belgian company Barco, which is creating theatres with three screens and selling time for companies to develop short films to play on them as opposed to rising ticket prices. These theatres are also being used to watch video gamers and concerts throughout the week, when movies are not as popular. This strategy reminds me of Rita McGrath’s article, The Transient Advantage, in which it is argued that in order to maintain a strategic advantage, companies must always be innovating. It is also argues that there are no long term strategic advantages in modern times. I think the movie theatre industry is beginning to be left behind by technological advances and because of the internet, and increasing their prices for small added benefits will not help them. Barco’s strategy to alter the experience in a unique way is an example of what movie theatres should be doing, as it demonstrates innovation and adaptation with the times.

Source: http://www.forbes.com/sites/dorothypomerantz/2014/09/30/how-to-get-more-people-into-movie-theaters-without-higher-ticket-prices

Source: http://pandorf.files.wordpress.com/2012/01/scr-10.jpg

Source: http://supercell-www-content.s3-website-us-east-1.amazonaws.com/201401/cache/images/made/b136aec39c9210cd/CoC_titlescreen_2013_1440_727_c1.jpg

As an avid fan of the mobile application, Clash of Clans, I decided to do some more research into what has already struck me as an incredible business. Clash of Clans is an online mobile game created by Supercell, a company based primarily in Helsinki, Finland. What I find interesting about the sales portion of the game is that while the game itself is free to play, many players will still spend money on the game in order to progress more quickly due to their own impatience and pressure from their war teams. Supercell itself is a small company, and hearing of its small, devised organization reminded me of the class focused on marketing and decision making. Supercell is divided into multiple groups, each responsible for a different aspect of the company with almost complete power over that aspect. Other than schedules which they are to follow, there is nobody with complete power in the organization and the CEO himself states that his goal is to be “the world’s least powerful CEO”. The games themselves are played by millions of people around the world, though only five people are needed to keep them running. The small company and de-centralized business model helps efficiency in decision-making as well as a constant production of different and new ideas.

Source:

http://www.forbes.com/sites/karstenstrauss/2013/04/18/the-2-4-million-per-day-company-supercell/

Stephanie Strom’s story in the New York Times regarding CVS Caremark and it’s decision to halt it’s sales of tobacco products brings into question the role of ethics in the world of business. Connecting this decision to Edward Freeman’s stakeholder theory, it may be determined that this company seeks to cease it’s tobacco sales in order to improve their brand name and become more appealing to the majority of their clients. Despite the fact that CVS Caremark would be losing profit initially, the company seeks to better their reputation so as to appeal to more potential clients. Consistency is an important attribute of any company, and so with this course of action, CVS Caremark seeks to appeal to their non-smoker clients as opposed to their smoking clients. In stopping their tobacco sales, CVS Caremark is encouraging their market to be healthy, which is consistent with their pharmaceutical nature. Connecting this situation to Milton Friedman’s essay, The Social Responsibility of Business is to Increase its Profits, encouraging healthy living at the companies own expense could be considered a mistake; however, if one analyses the long term effects of this action it may be beneficial. The tobacco sales did not represent a significant percentage of profit for the company, and improving their brand name and reputation among the general public could prove to aid CVS Caremark in the future.

Sources:

http://site.ebrary.com/lib/ubc/reader.action?docID=10187339&page=171