September 2014

Uber: The Movement of People

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The Uber controversy has been lingering in Vancouver for the past few months, this article by Business in Vancouver has an interesting outlook on the situation. The expansion of Vancouver’s taxi service has been in talks for a while now, but rules in Vancouver has put the Uber service to a temporary pause. Uber is a company in which allows for accessibility and possibilities for both drivers and riders. For instance, Uber offers vehicles at a different price. So whether you need a car to get around in like a typical taxi service or a luxury/larger vehicle, Uber has that capability. In addition, the innovation that comes with Uber is impeccable, with service available to anyone with a smartphone. (everyone these days) The article states that Uber Canada Representatives has been in and out of city council chambers trying to reintroduce the Uber service to Vancouverites. What the City is worried about is that Uber is able to operate without the same kinds of training/licensing taxi drivers receive and that the quality of the Uber service is also poor, due to self-employment. While expanding the taxi service in Vancouver would be excellent in creating full-time jobs for Vancouverites, the uniqueness of the Uber service and what it can do for a well-developed city such as Vancouver is hard to say without any chances given out. After further analysis, I believe that the Uber service is something that the city should carefully look into, and be given a chance. Uber not only provides a similar service to taxis, but they offer choice, while also providing jobs, something the city is hesitant with.

Apple’s Bending Technology

 

In The Verge’s article from the week following the highly anticipated release of Apple’s Iphone 6 and 6 Plus, wrote about the controversy of the bending of these new devices. The title is as stated, ” Apple says Iphone 6 Plus bending through normal use is ‘extremely rare.’ Apple has released a press statement saying that although there has been much controversy behind their bending products, they have only received a mere 9 complaints from users. Many users have sought to Youtube to show the bending of the Iphone, but reviews online by Verge and multiple other online blogs/articles have yet to show signs of this ‘bendgate’ story. Apple also said in their press release that yes, the Iphone will bend, but only in extreme cases where the phone is forcibly bent and not in most normal day situations. This conspiracy however has not stopped the sales of the new Iphone, where the Iphone 6 Plus has remained sold-out at most retailers. What I want you to take from this article is the power of social media and the words of others. It shows how such a large figure head company like Apple often takes a lot of hate and judgement of the company as a whole and their products. This is often far from true and the truth is stretched in order to keep the stories interesting. Social media has migrated into smartphones, tablets and computers, and is always with us. In another example, like during disasters and such, people often reach out to families and friends through this innovative source of communication. But what we need to understand is that social media is used to move around opinions, not facts, and therefore we need to carefully analyze one’s opinion before we use it as a factual statement.

New luggage fee to generate millions for Westjet

 

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Beginning October 29, 2014, Westjet Airlines will be charging a $25 baggage fees for all flights within Canada and the United States. Westjet spokesman, Robert Palmer said that this change will lead to lower economy flight pricing. Analyst say that this will help Westjet to generate an approximate 87.5 million dollars and cause Air Canada to follow close behind. Is this considered a valued proposition on Westjet’s part? Although this may dissatisfy Westjet’s customers to begin with, the lower flight prices practically pay for the expense that one must pay upfront. Also, the paid luggage fee in turn could be a benefit for Westjet customers and customer relations because with this added fee, it means that Westjet can dedicate a larger amount into baggage claims and lost and found problems. This in turn could benefit both parties. Westjet’s recent decision has great impact both socially and politically. For instance, it is now socially acceptable to be charging baggage fees, while politically, companies will add this fee to their airline cost. Though this is an added cost for those flying economy, the demand of economy flights will not be greatly affected, especially since competitors are following suit. My analysis shows that this added fee will generate revenue while still accommodating customers accordingly.

 

Globe and Mail- New luggage fees to generate millions for Westjet

The Vow: CVS’s Unprecedented Step in the Retail Industry

 

CVS bans tobacco sales

America’s largest drugstore chain has vowed to stop tobacco sales for good; effective October this year. CVS Caremark begins to morph the company towards becoming a health care provider. Tobacco defies that ideology. According to the article, CVS is said to “shave an estimated 2 billion in sales from customers buying tobacco and tobacco related products”. (1) Although 2 billion may appear to be a large sum, in actuality the company looses less than 1% of their generated profit. Business ethics come to mind, large corporations such as CVS is often under the watchful eye of society. This forces companies to act morally and often always promotes the company executives to come up with a plan that will attract positive media attention; such as CVS’s tobacco ban. Not only does this shows the public that profit is not the mere concern, it allows these companies to set a ‘newly improved’ standard, forcing others to follow closely behind. Looking now at Freeman’s stakeholder theory, in order for CVS to continue to be profitable, they must create value for their customers. America’s new trend is health, thus the demand for the opposing, such as tobacco, will fall. As Freeman said “the ideology that each one of these groups (customers, stakeholders, financiers, etc.)  can together create something that not one alone can”, (2) is crucial in creating a profitable and successful business.

(1) The Social Responsibility of Businesses: http://site.ebrary.com/lib/ubc/docDetail.action?docID=10187339&page=171

(2) Freeman’s Stakeholder Theory: https://www.youtube.com/embed/bIRUaLcvPe8 

Above Photo: NY Times