Joseph Liu's Blog

Since this is already my 10th blog post, that means the semester and therefore this course, is sadly almost at its conclusion.

Even though Comm 101 is not mandatory course for first year Sauder students, I strongly believe those who decided not to attend this class forwent an incredibly valuable experience. This class introduced to us countless useful concepts of business; such as business ethics, entrepreneurship, several tools:

SWOT: Diagram showing “Strengths, Weaknesses, Opportunities and Threats”, which provide a solid overview of a company.

SWOT Analysis

Porters 5 Forces: Displays the characteristics of an industry, and can be used for strategic planning for a business.

Porters Five Forces Template

and many more.

Differing from other classes, instead of simply teaching the concept, we were given the opportunity to apply what we learned through the class’s many interactive activities. I thoroughly enjoyed this method of learning, as I learn better through doing, rather than conceptually visualizing. The projects we were given were challenging, yet not impossible, which motivated me to learn. Another aspect of this course that I appreciated was the open, yet professional learning environment Jeff and Paul created in that class. Their knowledge in Commerce is undeniable, and their willingness to make our learning enjoyable was something I found incredibly admirable.

Thanks for Making Comm 101 Enjoyable

Comm 101 was a wonderful experience, and although my career in business has just begun, I feel much more prepared than I did in September.

After BC Hydro’s announcement of the introduction of Smart Meters, the response from local citizens was generally negative largely attributed to the lack of information given in regards to their purpose. Smart Meters seem to provide few visible benefits, while they seem to give BC Hydro many advantages.

Powersmart? Or Profitsmart?

Where is the support for the Smartmeters?

Smart Meters act as ‘surveillance tools’ and give BC Hydro detailed energy information about each household. Unsurprisingly, this has brought forth the formation of several Anti Smart Meter protest groups; not only are citizens fearful of their privacy, health, there have also been cases of increased electricity bills immediately after the installation of these devices. Consequently, I would agree with Frederick Wong’s blog post regarding the public’s disapproval of Smart Meters, but I would argue on his statement that Power Tab’s should “steer clear of British Columbia”.

I believe it is completely unfair that Smart Meters are mandatory, and Power Tabs could be a rather effective alternative. If households are allowed to use a product that has its functions explained in detail, users are much less likely to protest.

Frederick Wong’s Blog: https://blogs.ubc.ca/frederickwong/

In last week’s Comm 101 class regarding entrepreneurship, we were introduced to actual entrepreneurs, Janice Cheam and Wade Larson, who shared their innovative product ideas to our class. Both Janice and Wade are in the process of developing and releasing their products in the near-future, and after listening to their sales pitches, both seem to have developed potentially successful products.

Janice Cheam

Janice’s main product, the PowerTab, aims to assist users in lowering energy usage/costs, while also bringing attention to sustaining the environment. By measuring and displaying the amount of energy a household uses, families will begin to apprehend the amount of electricity they use, and consequently look to use less energy. This is a brilliant idea, but will individuals be willing to spend $50-$100 to measure their energy use?

The PowerTab helps you track your energy use, saves money and the environment at the same time!

Wade Larson

Wade’s innovative idea, URTHECAST, is a service that provides real-time HD satellite imaging that brings a revolutionary experience to the world. Although the idea is risky due to the high startup costs, I believe the wide interest it will gather  will allow the service to become lucratively profitable. Wade’s partnership with RSC Energia is one of the companies greatest strengths, as it allows him to forgo the multimillion dollar cost of purchasing a satellite by sharing it instead, thereby giving his company a competitive advantage.

https://www.youtube.com/watch?v=wVZA1V4Ttc0

Although both entrepreneur ventures are impressive, I personally believe URTHECAST will become a more lucrative business due to its broader target market. People of all ages will find this service intriguing.

Anyone who has ever been interviewed for a job position can relate to the amount of stress and psychological pressure connected to the situation. Therefore, doesn’t it seem unfair for companies to further distress their candidates by asking unanticipated questions about their personal life?

Susan Shellenbarger of the Wall Street Journal Blog certainly believes so. In her post, she regards simple questions relating to a candidate’s past history, such as: “When did you graduate from high school?” and “Are you currently using birth control?” as discriminatory questions that are too personal.

Although these types of questions may trigger some discomfort in the candidates, my personal opinion is that job interviewers have every right to this knowledge, as the applicants are in line to work at that organization for a potentially lengthy period of time. Consequently, Shellenbarger must sympathize for businesses, as they are most likely interested in hiring employees that provide the best fit, and least likely to cause internal problems in the organization. As long as questions are relevant to providing a better understanding of a candidate’s ability to do what is expected of them, companies should have the right to ask those kind of questions.

Wall Street Journal: http://blogs.wsj.com/juggle/2010/09/13/when-job-interview-questions-become-too-personal/

What attracts millions of gamers to camp outside their local video game retailer a day or two prior to its release? Call Of Duty.

Avid Gamers Lining Up for the Midnight Release

It would be ridiculous to say that the Call Of Duty series is not one of the most successful in history, as the last 3 titles have sold a whopping total 43 million copies. Consequently, there is no doubt that Black Ops 2, the next instalment, will sell millions of copies, but the question on everyone’s mind is how much longer can the makers retain this incredible level of success?

Large Sales Numbers indeed, but will a downward trend continue?

I have long been regarded as a Call Of Duty ‘fanboy’, but myself and many other players have become bored of the same game with minor tweaks here and there. This reality is observed through the last instalment, which is currently selling slower and behind 2.7 million copies than its previous game, which is a cause for concern. If Black Ops 2 fails to rejuvenate and capture its players with something fresh on its release tonight, it may indicate the Call of Duty franchise has passed its peak and heading on a downward trend.

Once boasting a share price of $149.90, it’s all-time high, Research In Motion (RIMM) has seen its share price stumble constantly over the years to it’s current trading price of $7.88. RIM is in desperate need of a revolutionary facelift to turn things around, as both investors and consumers alike have slowly lost confidence in their products. Will BB10, their new operating system which has already been delayed multiple times, be the game-changer that allows RIM to once again compete with tech giants such as Apple and Samsung?

Is this the revolutionary product RIM has been waiting for?

Ryan Wakabayashi seems to believe that the success of BB10 can possibly catapult RIM back into relevancy. Although the release of BB10 would definitely be a popular product among consumers, it cannot compete with other smartphones as it has lost it’s sole Point of Difference. One of Apple’s many simple, yet elegant products: the iPhone, has a cult-like fan base. Combine that with Apple’s introduction of iMessage, the equivalent of BBM, the Blackberry loses its uniqueness. As BB10 seems to be lacking in revolutionary features, it is unlikely that RIM will reach the same level of success they did in 2008.

Source:

Ryan Wakayabashi’s

“RIM Stocks Rise as Blackberry10 Shows Promise”

In the world of sports, everyone is extremely competitive and the desire to be better than your competition is what ultimate drives you to reach your potential. Therefore, when a product backed and worn by many professional athletes such as Kobe Bryant claims it can magically “improve strength, balance and flexibility” it is sure to draw hordes of attention.

$100 for 10 stickers. Sounds about right.

At first, people bought into the idea because the concept was so mysterious; the hologram contained in the wristbands are supposed to be set with a special frequency that changes and harmonize the natural frequency of your body, thus ‘improving your athletic ability’. The company was making big bucks through this clever marketing scheme, I even went out and bought one for $45, an extremely stupid decision on my part. The company ended up earning $52 million in revenue during its peak year, which is incredible feat for something as simple as a wristband scam.

However, once Power Balance was exposed by the ACCC that they had no research to prove that their product could provide positive benefits, they faced much scrutiny. Following this, Power Balance was forced to declare the truth to the public, by admitting that they engaged in “misleading conduct”, and then provided full refunds to any customers who felt they had been deceived and eventually bankrupted due to the countless lawsuits.

Notice how the $122 piece of silicone is “Out Of Stock”

Even though the brand can no longer be seen in the positive light,their combination of clever marketing schemes and  relatively capable management allowed them to succeed for quite a while. The makers of Power Balance were able to sell worthless pieces of plastic and earned millions of dollars of revenue, which demonstrates their mastery in doing business. Although their behaviour is highly unethical, the brand is a prime example that all you need is a intuitive or revolutionary idea to launch a successful business venture.

Neither the players or the management will benefit financially from a prolonged lockout

When Gary Bettman, the commissioner of the National Hockey League, recently announced that the lockout would result in the cancellation of the opening 82 games of the regular season, it is an understatement to say that it had a devastating effect on numerous hockey fans. Although a lost season may be a frightening prospect for fans, the teams, and ultimately their respective cities will most likely experience even greater ‘visible’ damage.

The league’s revenues are taking a monumental hit due to the lockout. Bill Daly, the deputy commissioner, has recently discussed that the league has already lost roughly $100 million dollars in revenue in just the cancellation of it’s preseason games. The team’s themselves are only a few of the many who are currently affected by the lockout. In addition to those directly related to the NHL, the neighbouring stores near the arenas will also be affected. Local businesses may suffer if they depend on traffic that passes through their shops on game days.

Vancouver Sun gives these observations about union meetings, there was “little to discuss, the meeting ended quickly and left both groups frustrated”. At this point I believe that neither the player’s union nor the owners can benefit and ‘win’ the lockout, as both sides has lost a significant amount of revenue in addition to the loss of support from their fans.

The overwhelming demand for Apple products never ceases to surprise.

From an empirical point of view, Apple Inc. does not seem like it should be obtaining the level of success it is currently at. The price of the iPhone 5 is $649 is roughly the same as its main competitors: Galaxy S III $600-$650, and HTC One X $625, so why is the iPhone garnering much longer lines all over the world compared to its competition?

Other than the overwhelming popularity the it’s getting, the iPhone 5 isn’t much different than it’s competition.

The answer is related to Brand Positioning.

Do the two phones really look THAT much different? I think not.

By advertising key features with intriguing strategies, Apple makes its products seem revolutionary. Apple successfully positions themselves in the minds of consumers that THEY are the market leaders, consequently being the number one choice in technology for many consumers.

Although the iPhone 5 is more evolutionary than “revolutionary”, the marketers at Apple Inc. have done a remarkable job in making a phone with a slightly larger screen, faster processor, and minor updates seem like a completely revolutionary phone the world has never seen before. By marketing products that seem cool, Apple’s products are irresistible.

A common debate in the business world: Money? Or Ethical Behavior

Empathy is a fictitious element in the world of business. In its place, the forces of greed and selfishness are what prevalently drive and allow it to thrive. When society observes businesses, the noticeable trend of focusing more on lowering costs for higher profits, rather than the contentment of its consumers, becomes apparent. Therefore, it is a conventional practice of businesses to take cost-cutting shortcuts whenever possible.

As both sides are aware of this mentality, it becomes no surprise when news outlets report that a ‘reputable’ company such as Nike uses child labor. A recent news article on reported on Yahoo! however, brings forth a sliver of hope that old-fashioned ethical behavior still exists.

Lukoil, a well-known gas franchise in parts of North America, recently protested in FAVOUR of its consumers, which is completely unorthodox behavior by a business, especially towards its own goods and services. Personally, I found it incredibly respectable for a business to do what they did. By posting high prices that brought massive attention to the subject, while still charging their regular price, they brought attention to the fact that, even from a seller’s point of view, that current gas prices are unjust and consumers deserve cheaper prices.

Will this protesting action affect the price of fuel in the country?

Most likely not, but at least this symbolizes shows that some business owners are able to display ethical behaviour and think beyond their own business’s profitability.

Yahoo! News Article: http://gma.yahoo.com/northeast-lukoil-franchisees-publicize-9-gas-protest-135547031–abc-news-topstories.html