Microsoft has revamped its performance review process. It axed the “stack ranking” that pitted employees against each other.

Resource: http://money.cnn.com/2013/11/13/technology/enterprise/microsoft-stack-ranking/index.html

A recent CNN story, “Microsoft Kills Employee Ranking System”, reported that the software giant has decided to remove its “stack ranking” system of reviewing employees. Microsoft managers had to rank their employees in order of 1-5 in ranking, and no matter how good any of the employees were, some of them had to get the low ranking of a 5. Even the most talented engineers hesitated on working with a group of equally talented engineers, because one of them was going to end up ranked as a 5, so many of them resisted joining the best teams. The assessment method turned employees against one another through unhealthy internal competition and reduced collaboration on projects. Microsoft reports that it now focuses more on personal performance and teamwork that may benefit the company, “which means ‘no more curve’ and ‘no more rankings’”, according to Lisa Brummel, head of Microsoft HR. I support Microsoft’s decision with this change because the original stack ranking system was designed for the manufacturing industry where everyone in a department does the same job, so the stacking method made assessment an easier, more precise way to measure performance. As a software company, Microsoft requires employees who display a combination of innovation, teamwork and intellectual ability, so they could potentially approach a similar task in widely different ways, yet still attain worthwhile results. Using the stacking system was not just harmful to employee morale, but was also counterproductive for the company. When people at the bottom left the company in significant numbers, others further up the line tended to follow in ‘bursts’ as the curve started moving ‘up’. In the end, overall employee contentment suffered and cooperation declined because the staking review system was causing repeated episodes of uncertainty and unhealthy competition among employees. With the impending retirement of Steve Ballmer comes the end of the “rack ‘em, stack ‘em, and sack ‘em” days in the human resources department. Good riddance.

Reference: Pepitone, Julianne. “Microsoft Axes Controversial Employee-ranking System.”CNNMoney. Cable News Network, 13 Nov. 2013. Web. 18 Nov. 2013. <http://money.cnn.com/2013/11/13/technology/enterprise/microsoft-stack-ranking/index.html>.

Apple is the No. 1 brand worldwide, according to consultancy company Interbrand.

Resource: http://www.nydailynews.com/news/world/apple-1-brand-coke-fizzles-article-1.1472322

I read an interesting blog post by one of my classmates, Vincent Li, describing some of the reasons why Apple has become one of the world’s most successful brands. His article made me realize that since I came to Canada a few years ago, almost of the electronic devices I now use are made by Apple. The company has beaten out a lot of competitors over the years, primarily through elegant design innovation, clever application of technology, and advanced psychological marketing. Vincent’s post talked about how Steve Jobs never gave up, from his startup days in his parents’ garage, to being fired as head of Apple, then on to founding Pixar Studios, then coming back to turn a souring Apple into the most valuable company in the world. Through all kinds of difficulties, from taking on IBM’s monopoly in the computer market to the competition with his arch-rival Bill Gates of Microsoft, he persisted. Steve Job’s story reminds me of the COMM 101 Lecture: Innovation & Entrepreneurship, which answered some key questions I had about the purpose of entrepreneurship in serving others by putting one’s own dreams into action. As Jobs, himself, so aptly put it “I want to put a ding in the universe.”

Reference: Li, Vincent. “The Reasons of Apple Becoming the No.1 Brand.” Sauder Students Blog. N.p., 7 Oct. 2013. Web. 18 Nov. 2013. <https://blogs.ubc.ca/lichengzhi/>.

When Netflix launched in the Netherlands last month, Kelly Merryman, the company’s vice-president of content acquisition, told a reporter that her company purchased Prison Break partly because of its popularity among the Dutch torrenting crowd.

Resource: http://www2.macleans.ca/2013/10/10/pirate-raid-22/

In Commerce 101, we have discussed Netflix and did a business case analysis of the company. Now, whenever I’m searching online for business news, I always check for news about Netflix; today I found an interesting blog post “How Netflix Knows Who Wants to Watch What” by Nick Taylor-Vaisey, which addresses how Netflix comes to know their customers’ preferences. Nick suggests that the company has its snoops in the dark corners of the Internet, looking very carefully at file-sharing websites and purchasing those shows that are most popular among the legions of bit torrent pirates. That practice seems to comply with what we talked about in Commerce 101; that is, if you want to increase sales and profits, first you establish your company’s brand position and value proposition and target a specific customer segment to which you direct your consistent marketing message. I consider Netflix to be in an excellent position to benefit from its clever application of IT infrastructure and information systems to accumulate and measure the information supplied by their customers. The company should also run more on online surveys to better understand the wants, needs and preferences of its users and employ those survey responses to inform their marketing practices and drive revenues.

Reference: Taylor-Vaisey, Nick. “Business Blog.” Macleansca How Netflix Knows Who Wants to Watch What Comments. N.p., 10 Oct. 2013. Web. 18 Nov. 2013. <http://www2.macleans.ca/2013/10/10/pirate-raid-22/>.

Demand for gold in China is surging despite slower economic growth.

Resource: http://money.cnn.com/2013/11/15/news/economy/china-gold/index.html?iid=SF_BN_River

According to CNN, the latest World Gold Council report claims “China Becomes World’s Top Gold Buyer”, by buying up 798 tonnes of the precious metal, relegating India, at 715 tonnes, into second place. The report predicts that China may surpass the 1000 tonnes mark by year’s end. The big increase in Chinese appetite for the yellow metal is due to the growth of the middle class and disposable incomes in China. A secondary reason for China’s push into the top spot is that the government of India has been restricting gold imports and raising taxes; thus lowering demand for gold by Indian consumers. The report repeated a common claim among financial advisors, that “gold is often seen by investors as a safe haven”, and points at the fact that the global market for the metal has been resilient, even though investors have fled from gold-backed exchange-traded funds. My personal take on buying gold as an investment is that, unlike stocks and bonds that allow you to gain extra value from passive income (interest and dividends), the only payback you can actually get from gold is if the price per ounce rises and you sell it before it drops again. The challenge with investing in precious metals is predicting which way the price will go after you buy it, and whether or not you can afford to hold onto it until its value reaches your target? Apparently, the government China feels confident that their time to buy is now. As the ancient Chinese proverb goes “An inch of time is an inch of gold but you can’t buy that inch of time with an inch of gold.”

Reference: Yan, Sophia. “China Becomes World’s Top Gold Consumer.” CNNMoney. Cable News Network, 15 Nov. 2013. Web. 18 Nov. 2013. <http://money.cnn.com/2013/11/15/news/economy/china-gold/index.html?iid=SF_BN_River>.

BlackBerry will soon collapse like Nortel.

Resource: http://www.cbc.ca/newsblogs/yourcommunity/2013/11/blackberry-will-soon-collapse-like-nortel-cbcnewsca-readers-say.html

Yesterday I read a business post by Guang Yow Low concerning BlackBerry. As the once-dominant smartphone maker continues to struggle to survive, it is hoping that the new BlackBerry 10 operating system will attract more customers and stop the financial hemorrhaging. Despite the positive feedback about the new OS, Google’s Android and Apple’s iOS continue to dominate the smartphone sector. Is there really nothing BlackBerry can do to reverse its recent bad fortunes? Can the company even survive? I believe that there are actually some strategies that BlackBerry can consider to fix their main problems. Perhaps the company could consider some of the ideas proposed in an InformationWeek article entitled “BlackBerry’s 11th Hour: How It Can Survive.” BlackBerry can first focus its advertising on its points of differentiation, especially the excellent keyboard and TimeShift camera, which are unique and unavailable on Apple or Android devices. Also, BlackBerry shouldn’t aspire to become another iPhone or Android, but turn instead to customization and design — such as offering a palette of case colors and the ability to hide apps on the home screen – in order to garner attention in a market influenced by looks over function. Moreover, Android and Apple are both succeeding with a suite of applications geared more toward entertainment, not productivity, which has always been BlackBerry’s forte. A swift move to target third-party developers to create productivity apps, such as DropBox and Evernote for example, might help reverse the tide for this once-smartest of smartphone makers that has been looking kind of dumb in recent times.

Reference: Low, Guang Yow. “Will BlackBerry Rise Again.” Guang Yow Lows Blog. N.p., 7 Oct. 2013. Web. 18 Nov. 2013. <https://blogs.ubc.ca/guangyowlow/>.