James Tugman's COMM 101 Blog

Sources:

http://skollworldforum.org/about/what-is-social-entrepreneurship/

http://www.sauder.ubc.ca/Global_Reach/ARC_Initiative

“If  the United Nations was fully funded would we need the Arc or social enterprise”?

This blog post aims to answer this simple question. The answer however, is slightly more complicated.

Although increased funding could solve many impoverished nations social problems, many of the problems that plague these countries at a national level are rooted in its economic infrastructure. Therefore, providing business expertise may not be as effective as opposed to something like privatization or tax reform for example. Additionally, it is difficult question to provide clear answer to because it is unclear how the UN would spend this new funding. It is likely that they have priorities that are ranked higher than social enterprise or Arc.

This isn’t to say that business education offered by the Arc initiative is not worthy of investment. Education is a valuable asset that can ultimately improve a nation’s long run aggregate supply and aggregate demand.  That being said, the are likely more pressing issues in these countries in comparison to social enterprise like war or health issues.

To answer the question, if the United Nations was fully funded, the Arc and social enterprise would still be necessary programs because it is difficult to determine what the UN would do with their new funding.

Source: http://www.nytimes.com/2014/11/09/technology/on-linkedin-a-reference-list-you-didnt-write.html?ref=business&_r=0

This article covers a recent legal issue that LinkedIn has run into with four of its customers. They state that the premium references system is in violation of the Fair Credit Reporting Act.

I found this topic very interesting because it provided insight on the possible legal complications that can arise from implementing new features on an established platform like LinkedIn. LinkedIn is a powerful resource that no doubt will be used by fellow first years soon, so I find it interesting to see it operate as a business as opposed to just a magical website that gives you jobs. This article also made me curious about what LinkedIn’s business model canvas would look like and what things would be included under their revenue streams or key partners section.

This article also makes it clear that online personal information is truly an asset to employers, and that social media platforms as a screening process is just as valid as a face to face interview. When firms outsource their recruiting process to compile reports on potential employees then it is evident that a digital presence in the job market
is almost as important as a physical one.

Identifying the legal elements of a business is a topic that I find rather interesting and I hope to learn more about it in the coming years.

Source: http://www.macleans.ca/work/jobs/tom-dobrzanski-30-owns-recording-studios/

After Class 18: Sauder Alumni, I developed a better understanding of entrepreneurship. Of the three speakers however, Tom Dobrzanski’s Monarch Studios business really connected with me. Below are my thoughts on an interview with him conducted by Macleans.com regarding his studio and his business experiences.

What I found most inspiring about this interview, is Tom pursuing his passion for music and business simultaneously, by monetizing his musical talents. It is a situation that all the guest speakers were in, and seems like the ideal position to be in as an entrepreneur.

I think that it is safe to say that Tom used innovative disruption to let lower budget bands have recording facility access, through charging a modest price for modest facilities. The financial success of Monarch Studios really shows how timing really matters especially when entering a market. Had he entered later when more advanced recording software was being developed for households (e.g Logic, Ableton or FL Studio), he would have lost a substantial customer segment.

From this article, it is also evident that Tom was able to operate a successful business by advancing his interests and improving himself. His BComm from Sauder cemented a strong understanding of accounting and finance while his one year program at The Art Institute of Vancouver improved his audio engineering abilities. By doing these two educational programs, he is and his business were able to establish a strong comparative advantage over other producers.

Class 18 and this article really showed me why entrepreneurs take the initial leap of faith into the business world; because they are confident in their ideas and they truly love what they do. It really inspired me to find what I love and make it a reality everyday.

Source: http://www.hypebot.com/hypebot/2014/10/-live-nation-posts-solid-q3-financials.html

 I chose this particular article to see if I was able to apply my management and operational accounting knowledge I’ve learned from COMM 101 to a real world scenario. Sadly this was not the case.

The data provided in this article strictly covers the revenue changes for Live Nation in the past quarter. There is no mention of changes in their fixed or variable costs, the rate in which their sunk costs are amortized, or even changes in management. Although they saw an 11% increase on total revenue, I wasn’t even able to find their quarterly profits despite being a publicly traded company. Much of the data on the data on their income and cashflows statement are omitted as well. I’m sure there is a reason for this that I might learn about later in COMM 101, but I still found disheartening that I wasn’t able to financially evaluate a company I’m interested in. Because of the lack of key data in the article, I wasn’t able to take the article seriously or really understand where Live Nation sits in the live entertainment industry.

From reading this article, I feel as though I have developed a better understanding of  how news outlets can create an image of a certain company’s financial performance by including certain stats and omitting others. I’m sure if Hypebot released their cost increases or the revenue increases of their competitors like SFX entertainment, the article wouldn’t shed such a positive light on Live Nation.

Source: http://www.nytimes.com/2014/10/13/business/media/youtube-takes-manhattan-.html?ref=technology#

This article really exposed me to the legitimacy behind video production on Google’s video platform: Youtube. With only a 5,000 subscriber minimum to start receiving ad revenue, almost anyone with a half decent camera and idea can make a quick buck. Similarly, “One billion unique users visit YouTube every month” makes it much easier for startup channels to get on the content monetization bandwagon.

I am rather surprised that it has taken so long for Google to expand to the east coast since acquiring Youtube back in 2006. Google has largely been a Californian based company as most tech startups are like facebook or twitter. But with their international internet dominance, taking 8 years to penetrate their second largest american audience; New York, is a little overdue. This was likely the product of Youtube wanting to focus on improving the video watching experience. Now, after 8 years, they have the GUI and player functioning at an amazing level, it looks like they are looking to help out their content creators.

Youtube’s new New York video production studio

Although Youtube’s GUI has changed roughly once a year for the past 3 years or so, the video player, search algorithms and channel personalization have remained constant which really improves the consumer experience. Improving production quality of Youtube videos is the most effective way of directly improving the quality of Youtube’s content.

I think in the long run, creating formal video studios to make high quality content is only going to make Youtube a more valuable service. It is arguably one of Google’s largest platforms for ad revenue. It has incredible amounts of user traffic and is always optimizing  the viewing experience by updating their user interface. Allowing content creators make professional, high quality videos is a fantastic way to escape Youtube’s largely digital presence. Hopefully more resources like this will pop up in the coming years.

        Tsillhqot’in Land in British Columbia

Source: http://goo.gl/XCSTn0

This blog post will discuss the social and economic changes in regards to the Tsillhqot’in tribe’s new park construction

The largest effects of this newly granted Tribal park are economic. The New Prosperity copper- gold mine project’s productivity is  effected by the new Tribal park as there is effectively less land to cultivate. From an economic standpoint, the price of certain minerals might rise because of the reduced supply. Unemployment may rise in turn, causing a decrease in aggregate supply, inflationary pressure and a recessionary gap. This is all very improbable though because a $1.1 billion mining project doesn’t have nearly enough economic force to shift a country’s economy into market disequilibrium. That being said, it is still within the realm of possibility for the Canadian government to reevaluate their policies on first nations people having priority access to lots of land. In this instance they explicitly do, but in future instances, giving up a billion dollar mining project to salvage “migratory routes for mule deer”  might not always be the best decision.

Another economic aspect to take into account when viewing this article is the land’s opportunity cost. If the land isn’t being used for first nations or mining purposes, the natural capital found in the 10,000 hectares certainly has some valuable intrinsic value. This can be monetarily exploited for years to come if used in a renewable way and environmentally conscious way.

Ultimately it is difficult to evaluate this decision at a micro or macroeconomic scale. On one hand, the reduced supply of copper, gold and other minerals certainty will lower the Canadian economy’s exports and gross domestic product. On the other hand, the First Nations people can rest a little easier tonight knowing “the last viable refuge for the dryland grizzly bear” is safe once again. 

Source: http://entertainment-business.blogspot.ca/2012/06/in-age-of-social-media-quality-prevails.html

This blog post comments on Roger Goff’s “The Business of Entertainment” blog which covers topics pertaining to the American movie, and music industry. I chose this blog because it provided an insider look at how a film industry insider has reacted to the new digital age of opinionated transparency.

I think Roger’s thoughts on how easy it is to market a film through word of mouth, or rather word of internet is both a blessing and a curse. In essence, this digital age forces film makers to satisfy the higher standards set by the consumers. If it does; said film’s commercial success is vastly improved. If it doesn’t; it will “die a swift commercial death.” Producers, writers, directors, publishers and all other stakeholders are now forced to play a higher stakes game of the film industry because of the transparency of everyone’s opinions. 

This new paradigm applies to almost all other forms of entertainment, including music, video games and even books. Ultimately it makes for a better business model, it incentivizes high quality production in exchange for a higher commercial payout. It doesn’t help that almost any Hollywood blockbuster is pirateable within a day of release. It’s up to the internal production stakeholders to either a) monetize piracy channels in some way (likely through litigation) or b) crack down on digital reproduction.

All in all, I am happy I stumbled onto this blog. It provided me with a genuine look into how the film industry is adapting to the new digital age from a credible entertainment official.

Source: https://blogs.ubc.ca/twinkledhawan/2014/10/05/cvs-bans-cigarettes/

This blog post is a response to Twinkle Dhawan’s post about CVS halting tobacco sales. I chose this post because the opinion presented is very similar to mine.

Whether or not CVS made the right decision by discontinuing tobacco sales is entirely subjective. This story shows the ethical dilemma that a massive corporation like CVS can face when selling demerit goods with high profit margins.

Ethically speaking, CVS can get nothing but praise for this decision; even it costs them billions of dollars. However, acting ethically doesn’t exactly raise investor confidence in the long run. This is a perfect example of exchanging implicit brand value for explicit profits. Twinkle’s idea of this decisions being both right and wrong couldn’t be more correct. Whether or not this is a success or a failure entirely depends on who’s looking at it.

I am curious to see how CVS does financially in the future because of this change.

Original Link: http://www.theglobeandmail.com/technology/passport-to-success-blackberry-pins-revival-hopes-on-new-device/article20779911/

When reading this article, I kept thinking to myself, how attached we are to our phones, and not in the sense that we’re looking at them 24/7. It made me realize that products like cars, houses and phones are essentially extensions of ourselves, which makes changing from them very difficult. Changing from an iphone to an android device for example, is hard enough as it is for certain people. Imagine the difficulty that Blackberry purists  face when their dead company rises from their grave to sell a pity phone (Blackberry Passport”).

When Blackberry lost much of its market share, many consumers were forced to jump ship and ride on the lifeboats of iphones and androids. This is largely still the case, but with Blackberry resurfacing with the new Blackberry Passport, it’s tough to say what’s next. Initially, i stand by my previous argument that trying to sell a dying brand to a market based around brand loyalty isn’t the brightest idea. However, the exec’s behind Blackberry clearly have done research and must have a game plan they think is successful.

I’m also curious to see the research done by behind John Chen’s choice to focus on the Canadian market. What makes the Canadian market more accepting of a new Blackberry product then a market like the U.S (apart from RIM being a Canadian company)?

Finally, what I’m really interested in seeing is how this announcement is going to affect the Blackberry Ltd. share price in the coming days, weeks and even months.

Original Link: http://www.billboard.com/biz/articles/news/global/6251385/sfx-buys-brazilian-agency-promoter-plus-talent

SFX, the largest EDM festival management company has recently purchased Brazilian talent agency Plus Talent and has in turn planted the viral seed of the electronic music industry into a new market: South America. Up until now, SFX has been responsible for organizing some of the largest EDM festivals across the globe. From Tomorrow Land to Lollapalooza, SFX is close to running a monopoly on the fastest growing musical genre in the past decade. However, most of these events have taken place in central Europe or the southern side of the USA where most EDM enthusiasts reside. With this recent acquisition, SFX is able to put their incredibly large marketing budget into an entirely new market.

It is interesting to see from the article that SFX has acquired the Rock and Rio Festival as part of the company. This sort of deal may lead SFX to purchasing other assets outside of the EDM realm. Furthermore, with this acquisition, SFX now holds all of Plus Talent’s clients, most of which aren’t likely EDM artists. What SFX does with Plus Talent or even why they bought it in the first place is still slightly vague. Apart from attracting the south american demo to the bass heavy profitability of the EDM industry, there isn’t too much to gain. I’ll have to keep a close eye on this and see if this leads in to anything in the coming months.