Monthly Archives: November 2014

Why the Arc Initiative is Just as Important as the United Nations

Uncategorized

If the United Nations was fully funded, why do we still need Arc or social enterprises?

Although the United Nations is indeed fully funded, it is a global organization striving to eradicate world problems it struggles to be “down to earth”. As once an active member of the Model United Nations back in high school, I realized that although member nations come together in hopes to resolve world issues, at the end of the day, a little bit of politics is inevitably involved. For instance in the Security Council, the US and about 6 others hold rights called the Veto Power in which they’re allowed to reject any resolutions if they feel it is “unsuitable”. With so many member nations of different political and socioeconomic circumstances, there will be difficulties in providing sustainable help to those in need.

Hence, the Arc initiative and other social enterprises must exist. Through the Arc, entrepreneurs of the local area can help its local community. Social enterprises often employee those in impoverished areas of the world. Instead of spoon feeding money or food whenever they need it, providing employment or education allows the whole community to grow in the long term, which can be much more socioeconomically sustainable.

Was Accepting the Ebola Patient Worth the Risk?

Risk, Strategic Decisions, , ,

Just today, there was exciting news that New York doctor Craig Spencer (who returned to America with Ebola) was officially released from the hospital with “a clean bill of health”. The Wall Street Journal author, Melanie Grayce West, focused on the 33 year old’s heroic act of helping those with Ebola in Africa. This article reminded me of the finance and accounting lessons we had in class. We learned that business decisions-especially monetary decisions, depended largely on RISK. So why did New York take such risk? What was the return?

RISK: Ebola, a highly contagious deadly disease, caused a global health scare. The fact that an infected patient returned to New York without quarantine caused public outrage. Below is one example of such reaction:

Anonymous expresses concern for public health after reading about the first American infected with Ebola
Anonymous expresses concern for public health after reading about the first American infected with Ebola

Accepting such patient, especially without proper cure available, must have been an extremely risky decision. Failure to cure this patient could lead to citizens blaming the government, blaming the hospital and anyone they can.

RETURN: I loved how the moment Dr. Spencer was released, dozens of pictures and videos were released of New York Mayor Bill de Blasio hugging Dr.Spencer. Whether this was intentional or not, successfully curing Dr.Spencer certainly impacted Mr. de Blasio’s image as the leader in a positive way. Although he wasn’t the one curing Dr. Spencer, he still got the positive spotlight. The politician’s brand image seemingly improved (just by accepting Dr. Spencer), and it was certainly worth the risk.

de Blasio, Mayor of New York, hugs Dr.Spencer
de Blasio, Mayor of New York, hugs Dr.Spencer

The original article is called “New York Hospital Releases Patient” by  Wall Street Journal author, Melanie Grayce West.

“Is Positioning Discrimination?” by Kerry Poon

Response
Signs in Chinese in Richmond
Signs in Chinese in Richmond

I recently came across a post that I thought was very interesting. Kerry addressed in her blog post “Is Positioning Discrimination?” that Richmond was going to ban Chinese-only signs. She expressed that she disagreed to such ban, as Chinese-only signs are a means of segmenting the market and targeting specific customers.

Yes, Chinese-only signs may be convenient for businesses to target the Chinese in Richmond. However, I disagree that such ban is “forced assimilation and bullying”.

I believe segmentation does not just imply segmentation by race and/or nationality. It can also mean the market is segmented geographically. Richmond is a geographic segment that not only has Chinese residents, but also Canadian residents. Hence, it’s unfair to say that the businesses in Richmond are all just targeting the Chinese, and that it is okay to create signs in Chinese only. As said before, as much as targeting the Chinese is important, the businesses must not forget that they are still in Richmond BC, CANADA.

The ban doesn’t forbid businesses in Richmond to use Chinese on their signs. It just asks that English/French is included on it as well. Therefore, it will not harm the business or stop it from reaching its target audience. If anything, it will reach out to a wider group in the geographical segment of Richmond. I say this is a win-win for all.

Kerry’s original post can be found here. The article she read can be found here.

External Blog: Bad Decision=Bad Business?

Strategic Decisions, , , ,

article-2715622-203E306200000578-404_634x848

Recently, I read a blog post of Jackie Huba’s Blog on a hotel that decided to fine its customers 500 dollars for every negative review they put online. According to Huba, this has been a longstanding policy of Union Street Guest House, a New York hotel. This sparked some thoughts in my mind- why is this long standing policy a bad decision now, and not before?

The fact that it was long standing indicates that such policy did not previously spark such customer complaints. This made me wonder how it is that the same policy can spark such different reactions as time passes. In such case, I believe the development of technology posed as a threat to the hotel. With the improvement of social media, consumers can easily reach a wide network of audience to complain about a certain company. The same happened to Union Street Guest House, when customers began to complain online, and the media decided to cover it.

Customer reminds the hotel to "take Business 101" again
Customer reminds the hotel to “take Business 101” again

Customers began to post negative ratings on Yelp, just to mock the decision Union Street Guest House has made. This taught be quite a bit about making decisions. Preventing customers to write negative reviews may yield positive results in the short term. However, a “good” company must consider its long term implications.

Jackie’s blog post can be found here.

11/11- What does this date mean for Alibaba?

Strategic Decisions, , , ,

d42b6cc23e41996c46391423365a19a6_XL

A specific date with a specific meaning can offer a crucial opportunity to a business.

Recently, I read a post on Wall Street Journal about Alibaba’s crucial “business day”. I found this article interesting because it addressed the significance of Nov.11th to Alibaba’s sales revenues. According to the article, Alibaba had an impressive record revenue of 36 billion yuan (6,678,720,000 CAD) for just that ONE day. So what does 11/11 mean for this Chinese company?

The slogan "购物狂欢节“ suggests 11/11 is a day to "shop like crazy and have crazy amounts of fun"
The slogan “购物狂欢节“ suggests 11/11 is a day to “shop like crazy and have crazy amounts of fun”

Here are my thoughts: In contrast to Canadian 11/11 (which represents remembrance day), China’s 11/11 represents ‘Single’s Day’. The image of 11/11 reminds people of four single people, hence the name given to the day. I found this contrast in meaning very interesting. To a Chinese company such as Alibaba (who mainly targets the Chinese market), this date is a crucial opportunity to convince singles to purchase a lot at a discount price. Just as people suddenly buy more roses and chocolates on Valentines Day, on Single’s Day, people are suddenly convinced that they have more reason to buy something on Alibaba. Alibaba takes advantage of such consumer behavior and offers strategic pricing that will lure its customers into buying more. Genius.

While its strategy works for China, where 11/11 is known to be ‘Single’s Day’, I question whether it will have the same effect on other countries, such as Canada, where the meaning of 11/11 is vastly different. Alibaba must keep in mind that with its IPO, it is now a global company catering to the world, not just China.

The original article is called “Crucial Alibaba Business Day Looms” by Kathy Chu.

First Nations Focus: Manitobah Mukluks

Shared Value

My interest in companies creating shared values led me to Global BC’s “Manitoba Footwear Company Strengthens Aboriginal Roots”. For those unfamiliar with Mukluks, here are some pictures:

75_Mukluks_Tall_Dark Red_max_aCapture

Aren’t they cute?

Not only are these products functional and cute, they also create shared value. Manitobah Mukluks, Canada’s fastest growing footwear company, gives back to its aboriginal community by offering artist training programs at the school it has built, called the Storyboot School. This reminded me of the shared value lecture we had in class. The company wasn’t just merely giving a certain amount of profits to charity. Rather, it is creating sustainable value to its community by educating the aboriginals on how to make mukluks. This spreads awareness of the traditional culture and also aids employment as they will have specialized skills useful for shoe making. Although the school doesn’t serve as an extra revenue stream, Manitobah Mukluks certainly creates brand value through its contribution to the community.

I personally believe everyone, regardless of social or economic status should have access to education. As a person who once ran a business while building schools in rural China, I can respect businesses such as Manitobah Mukluks. I hope that their growing revenues won’t stop them from being authentic or helping the aboriginal community.

The original article can be found here.