The proposed economic policies of US presidential candidates Donald Trump and Hillary Clinton could have severe impacts on Canadian businesses.

Some Canadians don’t care about what happens in the upcoming US presidential election. Some say that they hope Donald Trump wins because it would be funny. But here’s one of the reasons why Canadians should be taking the political affairs of our Southern neighbour much more seriously.

Another student blog post outlined the importance of the G20 in managing the interconnectedness of the world economy. Canada and the United States are both a part of this group of influential nations, and our economies are both very strongly intertwined.

Currently in the United States, there has been an increased desire for protectionism due to the rising fear of terrorism. Republican candidate Donald Trump has proposed economic policies to enforce protectionism, such as renegotiating the North American Free Trade Agreement and pulling the US out of the Trans-Pacific Partnership agreement. This would mean a radical change in the US economy, and falling US stock prices indicate that investors are losing trust in the American economy.

As Canada’s biggest trade partner, changes in US trading policy would have a major impact on our country. A Globe and Mail article expresses that Canadian companies may need to rethink their business strategy in the event that Mr. Trump becomes president. Many businesses are holding off on expanding into the US in fear that the new policies will have a negative effect on them, and investors are demonstrating an unwillingness to invest in the US. If US trading borders are hardened, it will mean increased costs of purchasing materials from the US. If Canadian companies do wish to continue selling in the US, they may have to begin producing from within the US to avoid tariffs on Canadian-made goods. Either way, Trump’s protectionist policy would have a severely negative impact on the Canadian economy, especially since the US is Canada’s number one country to export to.

It seems reasonable that uncertainty in politics, such as the election of a new president, often leads to fear and distrust in the economy. Therefore, a slow-down in trade is predictable. International business always has associated risks, because businesses cannot always influence the policies of other nations. Companies that attempt to acquire lower costs and cheaper resources by outsourcing materials and labour may succeed in doing so, but there is also the risk of the country changing their policies. Regardless of which US candidate is elected president, it is clear that the United States is very influential in the world economy, especially for Canada as our biggest trade partner. Therefore, it really is important that Canadians pay attention to what both Trump and Clinton’s proposed policies would mean for businesses in Canada, and plan accordingly for any possible outcome.

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References:

Bao, X. (2016, October 15). G20 Summit 2016. Retrieved October 16, 2016, from https://blogs.ubc.ca/baoxinyi/2016/10/15/g20-summit-2016/

Campbell, D. (2016, August 08). Canadian businesses shift strategy amid threat of Trump presidency. Retrieved October 14, 2016, from http://www.theglobeandmail.com/report-on-business/small-business/going-global/canadian-companies-doing-business-in-us-worry-about-trump-presidency/article31303910/

Imports, exports and trade balance of goods on a balance-of-payments basis, by country or country grouping. (2015). Retrieved October 15, 2016, from http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/gblec02a-eng.htm

Leong, R. (2016, September 26). Global stocks wobble before U.S. debate, output deal hope lifts oil. Retrieved October 16, 2016, from http://www.reuters.com/article/us-global-markets-idUSKCN11W00R

Goldhill, O. (2016, October 01). The reason we can’t agree on what’s factual is that facts don’t exist. Retrieved October 16, 2016, from http://qz.com/798268/presidential-debate-a-philosopher-explains-why-facts-are-irrelevant-to-donald-trump-and-hillary-clinton/

Sherwood, I. (n.d.). How the 2016 Presidential Election Will Be Won on Social Media. Retrieved October 16, 2016, from http://www.futureofbusinessandtech.com/news/how-the-2016-presidential-election-will-be-won-on-social-media

Coffee is in high demand due to its association with productivity, alertness, socializing and overall happiness.

When was the last time you went out for a cup of Joe? Whether it’s black, half and half, or decaf, most people would agree that coffee is an important part of their daily routines. Studies show that coffee is the most commonly consumed beverage in Canada next to tap water. Starbucks is one of the most successful coffee companies, having had 45 years in operation and over 5500 locations in over 50 countries. How does a company like Starbucks achieve success in such a competitive industry?

Another student blog post outlines one way that Starbucks creates value for its customers, using ethically sourced products. By being socially responsible, Starbucks effectively differentiates itself from companies that do not use ethical means of production, and complements society’s growing awareness of the need for companies to address ethical issues.

Starbucks drinks are highly customizable, allowing customers to personalize drinks with syrups, shots, toppings, and more.

The strategy that Starbucks uses is a combination of competitive advantage (Porter 1996) and transient advantage (McGrath 2013). First, Starbucks employs a differentiation strategy in order to create a unique value for its customers and gain a competitive advantage. Starbucks achieves differentiation through its large selection of products, including drinks, food, reusable mugs, snacks and packaged coffee. Starbucks drinks are also highly customizable, allowing customers to add sweeteners, shots, syrups, toppings and milks. This creates a personalized experience for Starbucks customers. Starbucks also has its own unique sizes: instead of the conventional small, medium and large, customers order tall, grande or venti. This adds to the differentiation and luxury associated with Starbucks’ brand. This sense of luxury is reinforced by Starbucks’ rewards program and its exclusive gold membership.

Starbucks also makes changes to its company as external opportunities and threats arise, employing a strategy of transient advantage. One tool that makes Starbucks unique is its rewards program. Members earn “stars” on every dollar spent, which can be redeemed for a free drink. Starbucks offers members “bonus stars” for purchasing certain items, encouraging customers to try newly introduced products. “Bonus stars” are also offered for filling out surveys, allowing Starbucks to get regular feedback on how they are doing, and how they can improve in order to add value for their most loyal customers. Starbucks has proven to be especially innovative with the rise of technology and smartphone use, recently creating an app where customers can conveniently order ahead and pay on the app.

Through the use of the differentiation and transient advantage strategies, Starbucks is able to achieve a sense of luxury and personal connection with its customers. By making its brand unique and evolving its company to fit new opportunities, Starbucks has successfully made itself into one of the strongest companies in the world.

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References:

Coffee Facts. (2015). Retrieved October 03, 2016, from http://www.coffeeassoc.com/media-coffee-facts/

Dayton, Z. (n.d.). Before and After Work Drink Coffee Funny Quotes and Sayings. Retrieved October 03, 2016, from http://quotesgram.com/img/before-and-after-work-drink-coffee-funny-quotes-and-sayings/2670901/

Grosz, C. (n.d.). Coffee Order Cartoons and Comics. Retrieved October 03, 2016, from https://www.cartoonstock.com/directory/c/coffee_order.asp

International Stores. (2016). Retrieved October 03, 2016, from http://www.starbucks.ca/business/international-stores

McGrath, R.G. (2013). Transient Advantage. Harvard Business Review, 91(6), 62-70.

Porter, M.E. (1996). What is Strategy?. Harvard Business Review, 74(6), 61-78.

Quinn, M. (2016, September 12). Starbucks Sustainability and Stakeholder Theory. Retrieved October 02, 2016, from https://blogs.ubc.ca/michaelaquinn/2016/09/12/starbucks-sustainability-and-the-stakeholder-theory/

The business world is always changing. Demand never ceases to be a concern, with companies racing to find the best way to fulfill the ever-evolving desires of consumers. However, one fundamentally constant human demand is that which involves the production of food. Although in Canada, there is more than enough food produced to feed the entire nation, impoverished countries such as Kenya are in a much more difficult position. Countries which suffer from drought, poor soil quality, or other farming difficulties are often unable to sufficiently feed their people with the low yield of crops that they are able to produce. A recent Globe and Mail article notes that one possible solution to poverty is the use of genetically-modified (GMO) crops.

Genetic modification has recently emerged as a way for companies to produce crops with more desirable traits, such as pest resistance, better taste, larger yield, and bigger crops. By modifying the core genetic material inside the plants, crops can become much more resilient in tougher growing conditions. Growing genetically modified crops could mean providing enough food to support those living in poverty and preventing farmers from wasting their money investing in weaker crops. However, it is important to recognize that the increasing use of GMOs impacts our world in many complex ways.

As a major part of our planet’s environment, plants and their genetics have a profound impact on the way the world works. Modifying the genetics of an organism has an impact on the entire surrounding environment, and without proper research, control, and safety measures, the entire planet can change. Although research has suggested that GMOs are safe for consumption and the environment, it is still unclear what the long-term impacts could be.

We must consider whether businesses should be allowed to produce GMOs privately, as in doing so, they are changing the delicate balance of the planet’s environment. Genetic modification is more than a business venture: it could have long-lasting impacts on the entire world, upsetting the principles of natural selection. Businesses should not be able to simply produce GMOs as they please, as these decisions could have large impacts on a global scale. Moreover, there is the issue of whether companies should be able to own patents on GMOs. If private corporations were able to patent these genetics, the farming industry could quickly fall under a monopoly. Consequently, small farmers would become more vulnerable to patent-owning companies. Therefore, it is important that governments be responsible for approving GMO projects, and for GMOs to be publicized to prevent monopoly and environmental disruption. By taking the appropriate measures to research and control GMOs, there is potential to provide food for millions of impoverished people while avoiding substantial risk.

Word count: 450

References:

Hawkins, K. (2010, December 4). [Brant Family Farm 16]. Retrieved September 11, 2016, from https://www.flickr.com/photos/khawkins04/5253949949

Saunders, D. (2016, May 21). More than ever, the world needs genetically modified crops. Retrieved September 12, 2016, from http://www.theglobeandmail.com/opinion/more-than-ever-the-world-needs-genetically-modified-crops/article30106286/