In the article of “The Power of Virtual Integration: An Interview with Dell Computer’s Michael Dell”, the author interviewed with the successful business giant, Michael Dell, and pointed out the key to Dell’s success.

Dell’s business model is a combination of efficient supply chain and focused strategy. This model allows Dell to minimize cost, speed time and specialize its customer segments. By eliminating the middleman, Dell could reduce operation cost and accelerate inventory turnover. It also diminished the cost of warehouse storage and extra administration expenses.  It assembles computer from parts as all of components arrive. Then the finished computer is shipped directly to the customer’s hand via UPS or FedEx. The entire process is cost efficient and time efficient. Through this virtual integrated supply chain, Dell has created strong relationships with manufacturers, suppliers and customers.

Dell’s success proves its business model of value chain is powerful, and both cost and time efficient. Today’s best practice in supply chain is virtual integration. Virtual integration relies on information technology to improve the value chain of manufacturers, suppliers, and customers. We now have the technology and tools to do so. Virtual integration eliminates the need of physical production, shipment or handling any products as they are outsourced. As a result, a business is able to concentrate on its brand and target market development.

Work Cited:

Magretta, Joan. “The Power of Virtual Integration: An Interview with Dell Computer’s Michael Dell”. 18 March 1998. Harvard Business Review. 10 November 2014.

https://hbr.org/1998/03/the-power-of-virtual-integration-an-interview-with-dell-computers-michael-dell/ar/1

Image Cited:

http://ch.hothdwallpaper.net/wallpapers/hd/256461/home-1600×900-dell-logo

http://mytechnews.tripod.com/features/20000930dell.htm

As I browsed through the different articles online, I found an interesting one which is about social enterprise. This article is written by one of our beloved lecturer at Sauder School of Business, Jeff Kroeker, who is also a member of our Comm101 team. In the article, he talks about a small Canadian business named Oser-Duro Clothing. The company specializes in the production of fashion clothing in Ghana, West Africa. Unlike usual enterprise, Oser-Duro Clothing is defined as a social enterprise, which focuses on the contributionto local communities by offering job opportunities to African women.

Running a social enterprise is not an easy job. The founders or owners apply commercial strategies to achieve both financial return and create social value for the society. In this case, the two partners encountered the issues of product quality control and low productivity. They strived to improve production process to meet quality standard for high-end U.S retailer. On the other hand, they were committed to provide ongoing training to their employees.

In conclusion, Oser-Duro Clothing operates in a sustainable and ethical manner. It links fashion to economic, social and environmental impacts. This social enterprise has achieved both financial and social returns on the investment.

Works Cited:

Koreker, Jeff. “Production issues threaten to unravel high-end fashion label”. 13 September 2013. The Globe And Mail. 9 November 2014.

http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/going-global/production-problems-nearly-unravel-high-end-fashion-label/article14286870/

Image Cited:

http://www.richmondsocialenterprisepartnership.co.uk

http://thinkchangepakistan.wordpress.com/2012/01/12/pakistans-top-social-enterprise-in-2011/

I read through an article named “Millennials Will Change The Workplace”. I strongly agree tothis topic and have some opinions on my own.

Millennials are certain generation whichdrives and dominates our future. This young generation is featured with learning passion, flexibility, socialization, creativity and innovation.

The lifestyle of Millennials is different from the previous generation. The previous generation tends to strictly follow the fixed work schedule and obey the rules of workplace.The majority of them prefer working at the office, whereas the majority of Millennials prefer flexible workplace, such as working at homes or flexible working schedule. Millennials even value workplace flexibility higher than the pay plan. This phenomenon illustrates their work- life balance lifestyle.

Millennials want their workplace to be social and fun. They like to work on a team and tend to get recognition and feedback from their peers and managers. They more value their working environment and condition when they apply for and stay with a job.

Be aware of the millemmials’ needs, the organization should design and implement its’ structure to promote collaborative virtual team and cross function project team. Also, the organization strives to develop better working environment and condition to improve employee’s job performance, increase job satisfaction, promote innovation and encourage leadership.

Works Cited:

Williams, Ray. “Like it or not, Millennials will change the workplace “. 16 September 2013. Financial Post. 4 November 2014.

http://business.financialpost.com/2013/09/16/like-it-or-not-millennials-will-change-the-workplace/

Ganapathy, Shankar. “10 Millennial Personality Traits That HR Managers Can’t Ignore”. MindTickle. 11 November 2014

http://www.mindtickle.com/blog/10-millennial-personality-traits-hr-managers-cant-ignore/

Image Cited:

http://www.sourcelink.com/blog/matt-haskell/2013/05/24/millennials-business-and-social-media

Ganapathy, Shankar. “10 Millennial Personality Traits That HR Managers Can’t Ignore”. MindTickle. 11 November 2014

http://www.mindtickle.com/blog/10-millennial-personality-traits-hr-managers-cant-ignore/

As I read through Richards’ blog, I find it’s interesting that more and more music lovers choose and use online music streaming service to access their favorite songs. They have shifted their ways of listening music from purchasing the traditional albums to access free online streaming music sites. This change has resulted in continuous decreasing of album sales in the mainstream market. Spotify is a recognized online music streaming service provider in this emerging market.

As one of music lovers and funs, I appreciate Spotify has stepped in and brought the innovation to the new market.

Firstly, Spotify brings innovation of media technology to the music industry. Spotify gives you instant access to whatever you like at anytime and anywhere. Spotify works on your computer, mobile, tablet and TV and allow you download music legally and listen to offline.

Secondly, Spotify creates new market by attracting different set of consumers. Formerly, the only and illegal way to download free music is to download pirate version through file sharing platforms.  The majority of listeners choose to download pirate version music because they have no enough motivation to purchase albums or online music. Spotify provides free and legal download for this type of consumer.

Thirdly, Spotify creates new value network. Spotify has acquired The Echo Nest means the importance of digital technology used in music industry. In addition, Spotify has established the partnership with Yahoo. Yahoo will integrate Spotify’s music service into its media network.

In conclusion, Spotify has generated the disruptive innovation to the music industry. The new market and value network created by Spotify are making challenge and disruption on the existing market of albums and download purchasing, and illegal downloads.

Reference:

Music Industry and Online Music Streaming- A Response to Will Zhang’s blog

Image Reference:

https://press.spotify.com/int/2013/01/22/logotype/

By reading Genesia Tang’s blog, I learned that “Sandwich Me In” is a small restaurant that produces sandwiches and salads in Chicago.Its core value of sustainability differentiates this business from others.

From my point of view, “Sandwich Me In” is a successful and sustainable business. Though it’s unable to generate large amounts of profit as large corporations do, but the business value held inside is admirable and the social impacts delivered are no less than multinational corporations. There are several reasons to support “Sandwich Me In” is successful and sustainable.

Firstly, the sustainable value held and shared in “Sandwich Me In” precisely fits Michael Porter’s famous Five Forces of Competitive Position model. For most of companies, their only goals are profit maximization,no matter what kind of negative impacts to our societies. “Sandwich Me In” stands out through its mission of making a world a better place and brightening people’s lives.The restaurant development focuses on the connection between society benefits and economic progress.

Secondly, “Sandwich Me In” creates the society benefits through its operation in several aspects.Within two years, it produces zero ecological footprints; it regenerates used cooking oil as biofuel and generates wind energy to power up restaurant etc. These sustainable practices allow “Sandwich Me In” to differentiate from other competitors and attract those environmentally conscious customers besides the normal customers.

In conclusion, “Sandwich Me In” is a successful business because it demonstratesits competitive strength of sustainability and creates positive influence on the society.

References:

https://blogs.ubc.ca/genesiatang/2014/10/21/sandwich-me-in-sustainability-at-its-core/

Image Reference:

http://thechicagoelstopfoodhuntproject.com/2012/10/20/i-managed-to-sandwich-in-sandwich-me-in-and-it-was-well-worth-the-effort/

First Nations’ representatives of British Columbia have a dispute with the federal government, claiming to shut down the $ 8-billion B.C. Hydroelectric mega project “Site C”. The purpose of “Site C” is to support the demand of energy for growing population in B.C., also support the regional oil, gas and mining industries.

In my opinion, it is hard to decidewhether it is right or wrong to construct the plant. From the government’s point of view,the “Site C” project could stimulate the economy, improving regional industry activities and generating more job opportunities.

On the other side, the cumulative impact tothe environment is devastating. This industrial development would destroy the farmland and wildlife habitat. Also, the project would result in serious adverse effects on the traditional hunting, fishing and other land uses of First Nations.

As a result, while conducting the review of the proposed site C hydroelectric project, the government should take careful considerations in the aspects of significant environmental & cultural impacts, as well as the violation on the First Nations’ constitutionally protected treaty rights. In addition, the government should examine other option as back up.

Work Cited:

O’Neil, Peter. “First Nation chiefs to stage Site C showdown “. 18 September 2014. Vancouver Sun. 7 October 2014.

http://www.vancouversun.com/news/First+Nation+chiefs+stage+Site+showdown/10215965/story.html

Image Reference:

http://energeticcity.ca/article/news/2014/07/25/b-c-hydro-and-cope-ratify-agreement

https://www.bchydro.com/energy-in-bc/projects/site_c.html

On May 28, 2014, Apple confirmed to buy headphone producer Beats Electronics for three billion US dollars. This purchase is the largest acquisition in Apple history. In the deal, two Beats co-founders, hip-hop artist entrepreneur, Dr. Dre and Interscope Records executive Jimmy Iovine will join Apple Inc. as part of the agreement.

People were wondering why Apple would spend such large amount of money to buy a headphone company. Here, I generalize some reasons.

Firstly, Apple seeks the high potential of Beats Music streaming service and its backstage developing team. This service allows Apple to compete against other rivals such as Spotify and Pandora, the dominant music streaming companies. Apple’s iTunes, once the dominant force in paid music downloads, has become more of a window-shopping venue. According to Billboard statistics, only 1-2% of consumers hit “download/buy” when listening to iTunes Radio.

Secondly, the headphones/earphones that Beats produce are certainly better than the Apple earphones in the aspects of sound quality and design. It seems much more appealing to have a Beats headphone/earphone package with an iPhone rather than an ear pod.

Thirdly, the innovative design of Beats perfectly fits with the design of Apple products. Both of the brands target teenagers and young adults who like fashionable products that look cool. Beats has also built a solid business off the back of celebrity endorsements, which is similar to Apple.

In conclusion, the main motivation Apple bought Beats is Apple wants to prevent its iPod and iTunes business from failure. The music streaming service may lead to more purchase and download from iTunes, while the Beats headphones/earphones may lead to increase in demand for iPod and iPhone.

Work Cited:

Moore, Heide. “Apple buys Dr Dre’s Beats for $3bn as company returns to music industry “. 28 Wednesday 2014. The Guardian. 6 October 2014.

http://www.theguardian.com/technology/2014/may/28/apple-buys-beats-dr-dre-music-streaming

Bershidsky, Leonid. “So Why Did Apple Buy Beats? “. 23 September 2014. Bloomberg View. 6 October 2014.

http://www.bloombergview.com/articles/2014-09-23/so-why-did-apple-buy-beats

Image Cited:

Moore, Heide. “Apple buys Dr Dre’s Beats for $3bn as company returns to music industry “. 28 Wednesday 2014. The Guardian. 6 October 2014.

http://www.theguardian.com/technology/2014/may/28/apple-buys-beats-dr-dre-music-streaming

Beats rumoured to be launching in Australia in the next few weeks

“Xiaomi” is privately owned ChineseElectronics Company headquartered in Beijing,capital city of China. It is one of the local largest enterprisesthat design, manufacture, and sell smartphones and consumer electronics.

According to the statistics, “Xiaomi” has recently become the world’s 5^th largest smartphone company. The young electronic star has captured 5.1% global market share compared to1.8% this time last year, with a growth of 3.3% within one year. Unbelievably, “Xiaomi” is only four years old, and just a“freshman” in the market.

“Xiaomi”s’ main strategies leadto its success.  It’s differentiated as cheap price, clearly targeted market and clear brand image.The price of “Xiaomi” phone ranges from 80 to 400 US dollars, which is very cheap comparing to global rivals iPhone and Samsung. It targets the middle to lower income customers who desire an affordable smartphone. Xiaomi satisfies all the wants and needs of this type of customers: cheap price, big screen, nice looking and easy to use.

There is a rapidly growing demand of smartphone in poor emerging markets, notably in India, Africa, South America and Southeast Asia. “Xiaomi” will grasp those market opportunities to position its’ smartphones with cheap price and competitive qualities what an iPhone and Samsung has.It will generate greater demand in the future. “Xiaomi” is heading to ten new countries this year, it is going global.

Work Cited:

Olson, Parmy. “China’s Xiaomi Becomes World’s 5th Largest Smartphone Maker “. 31 July 2014. Forbes. 5 October 2014.

http://www.forbes.com/sites/parmyolson/2014/07/31/chinas-xiaomi-becomes-worlds-5th-largest-smartphone-maker/

Photo Cited:

http://www.geek.com/mobile/xiaomi-phone-2-unveiled-as-quad-core-beast-with-jelly-bean-for-just-310-1509745/

http://www.forbes.com/sites/parmyolson/2014/07/31/chinas-xiaomi-becomes-worlds-5th-largest-smartphone-maker/

On April 25^th, 2014, Microsoft completed the U.S dollar 7.5 billion acquisition of Nokia. Nokia’s phone and tablet service would run as a separate division of the Microsoft Corporation called Devices Group, Microsoft Mobile.

Nokia was almost bankrupt due to the intense competition within mobile phone market. It was once the biggest mobile phone producer in the world, an absolute leader in the market. When Apple released its first iPhone in 2007, everything dramatically changed. Nokia was slow to adapt to the new generation of smart phone, which features the quality of sensitive touchscreen and application (“app”) store. Other manufactures such as Samsung and HTC using Android system, a sensitive touchscreen display that provides an efficient, convenient and stabilized mobile phone operating system. Though Nokia later tried to use the Windows mobile phone system for its top-tier products, but was still hard to compete with three dominant smartphones, Apple, Samsung and HTC.

In my opinion, this acquisition is beneficial for Microsoft, but it has uncertainty. First of all, this acquisition gives Microsoft access to hardware technology and access to Nokia’s distribution network. In the other words, it assistsMicrosoft to accelerate innovation and market adoption for Windows Phones and attracts billions of customers by integrating Microsoft services with Nokia mobile phones.

In addition, this acquisition gives Microsoft the opportunity to expand its product to the business users. Apple and Google’s Android dominate the consumer mobile devices market today. iPads and Android tablets tend to get used mainly for entertainment, but for business users they have limited business value. Therefore, combining Nokia and Microsoft devices have the potential for a stronger offering for the business market.

Last, this acquisition also has uncertainty.The completion of this acquisition is just a key step on the journey towards integration. Google had acquired Motorola with a similar intention and then sold it off recently.

Work Cited:

Kovach, Steve. “Microsoft Closes Its $7.2 Billion Purchase Of Nokia”. 25 April 2014. Business Insider. 5 October 2014.

http://www.businessinsider.com/microsoft-closes-nokia-acquisition-2014-4

Cambell, Anita. 4 September 2014. Small Business Trends. 5 October 2014.

http://smallbiztrends.com/2013/09/microsoft-nokia-acquisition.html

Molina, Brett. “Microsoft to close Nokia deal on Friday “. 21 April 2014. USA Today. 5 October 2014.

http://www.usatoday.com/story/tech/2014/04/21/microsoft-nokia-deal/7969279/

Imaged Cited:

Cambell, Anita. 4 September 2014. Small Business Trends. 5 October 2014.

http://smallbiztrends.com/2013/09/microsoft-nokia-acquisition.html

Business ethic is the moral code and principals that a business or corporation should always follow and obey. In my opinion, I agree to what Ed Freeman says businesses should manage their operations to satisfy the benefits of all stakeholders.

This is an example demonstrating the wrong business ethics. A hidden camera done by local reporters exposed the plant workers re-labeled the expiredmeat as fresh and handled with bare hands. The meat was lying on the ground with rubbish and sewage, being scooped up and thrown into mixers. This act of deceiving customers by using rotten meat instead of fresh meat is completely unethical. Especially in the food industry, using rotten meat may cause harmful health issues such as food poison, allergy or even death to customers. It is also bit sarcasm that the manufacturer of such rotten meat, “Shanghai Husi Food” was named “Advanced Unit (A-Class)” of “Safe FoodProduction” recognized by local authorities.

In this case, the company is engaging in fraud and deception in order to maximize its profit. Since Milton Friedman says that businessshould maximize profit through not engaging in deception; Ed Freeman says that businesses should manage well so the stakeholders including customers, suppliers, employees, communities, and financiers all benefit. Husi does not satisfy any of these two theories and demonstrates an unethical business behavior.

Work Cited:

Vaitheeswaran, Vijay. “Food Safety: Not Yum”. 23 July 2014. The Economist. 10 September 2014.

http://www.economist.com/blogs/analects/2014/07/food-safety

Image Cited:

http://www.japantimes.co.jp/news/2014/07/22/business/corporate-business/china-food-scandal-drags-in-other-chains-spreads-to-mcdonalds-japan/#.VBIxvBYVxFI