Uncontrolled factor

The shutdown of America government will impose an external threat to local business. Concerning about the impact that the shutdown of America government has on economy, investors decrease the amount of money they invest and this is bad for the market. And with America being the biggest trader, Canadian business will inevitably feel the impact as well.

However, the impact of shutdown  remains small comparing the impact of failing to increasing debt ceiling.

“If the debt limit is not raised before the Treasury depletes its cash balance, it could force the Treasury to rapidly eliminate the budget deficit to stay under the debt ceiling. The fiscal pullback would amount to as much as 4.2% of GDP (annualized). The effect on quarterly growth rates (rather than levels) could be even greater. If this were allowed to occur, it could lead to a rapid downturn in economic activity if not reversed very quickly.”

The recession of US economy is going to seriously damage business activities and performance of all companies. No matter how smart a businessman is, there are always external factors like government that he/she can not control.

 

Citation

“GOLDMAN: If The Debt Ceiling Isn’t Raised And The Treasury Runs Out Of Cash, Then Say Goodbye To 4.2% Of GDP*.” Business Insider. N.p., n.d. Web. 08 Oct. 2013. <http://www.businessinsider.com/goldman-sachs-on-failure-to-raise-the-debt-ceiling-2013-10>.

“US Shutdown Is Starting to Hit Business, Says Commerce Secretary.” BBC News. BBC, 10 June 2013. Web. 08 Oct. 2013. <http://www.bbc.co.uk/news/business-24419564>.

A genius invention from Apple

Link

Apple has invented many great technology products and Apple also invented a great product in operation-Apple store.

In traditional retailing stores, sales people do not know Apple’s products well . They can not explain to customers the differentiation between Apple products and others. Furthermore, it does not matter to them whether customers buy an Apple product or a product of other brands.

 

On the other hand, Apple stores have experts who can answer all the question regarding to Apple products and each Apple store has unique designs appealing to the local customers. Apple stores allow people to fully experience the products before they purchase and allow Apple collect direct feedback from customers. This grants Apple to a direct and dynamic relationship with customers and increases customers’ loyalty.

As a result, by 2011, Apple Stores in the United States had revenue of $473,000 for each employee. According to the research firm RetailSails, the Apple Store chain ranks first among U.S. retailers in terms of sales per unit area in 2011, with sales of US$3,085 per square feet, almost doubling Tiffany & Co., the second retailer on the list(New York Times)

Citation

“Apple’s Retail Army, Long on Loyalty but Short on Pay.” New York Times. N.p., n.d. Web. <http://www.nytimes.com/2012/06/24/business/apple-store-workers-loyal-but-short-on-pay.html?_r=1&>.

Blackberry: Who am I?(comment on Ken’s blog)

“On Monday, BlackBerry said a consortium led by Fairfax Financial Holdings Ltd. had signed a letter of intent to buy the company for $9 US a share in a deal valued at $4.7 billion US. ” (cbc news)
Blackberry, which was one of the most worthy Canadian company, has fallen from 83 billion in 2008 to 4.47 billion today.

(https://www.google.ca/finance)

Ken mentioned in his blog that Blackberry has given up it chance to establish a point of difference and I do not agree with that. Blackberry already has a established point of difference, which is security.

Blackberry offers a unique secure system which protects users’ information and data. Due to its security, Blackberry is the most favored cellphone among businessmen and government officers. Security differentiates Blackberry from other cellphones. Nevertheless, being pressed by the emergence of cellphone companies like Apple and Sumsang, Blackberry has shifted its focus from capitalizing its security to developing a more user-friendly interface and adding more entertaining elements. This appears to me that Blackberry fail to aware its point of difference. Blackberry’s point of difference is security and this is what its main user, businessmen and government officers, care about. The money put in developing interface and entertainment did not add value to its main users. Blackberry should wake up from blindly imitating other cellphones and emphasizes on its strength, security, again.

Citation
“CBCnews.” CBCnews. CBC/Radio Canada, n.d. Web. 25 Sept. 2013. <http://www.cbc.ca/news/canada/blackberry-takeover-offer-buys-company-time- 1.1865640>.

link:https://blogs.ubc.ca/yukangzhang1/