Twitter’s IPO debut date has come and gone, and with it, a whirlwind of success. The company, who was once heavily questioned about the sustainability of it’s revenue channels, is now valued at $29 billion. This new capital has, as Michael Liedtke and Barbara Ortutay so elegantly described it, has “Silicon Valley start-ups salivating.” Over the past few month’s Twitter has been in many of us Sauder student’s minds and hearts, and heavily integrated into the Comm 101 lectures.  We have seen this company overcome the many doubts regarding it’s potential profitability and the daunting shadow left by Facebook’s failed IPO and ensuing mess.

As my classmate Priyanka mentioned, pre-IPO Twitter was working on creating more sustainable methods of attracting a larger amount of users, including modifying their site to more conveniently serve their consumers.  I believe that Twitter deserves all the recognition they are receiving and more. They has successfully overcome a challenge many of their peer companies have failed at.  I’m curious to see what Twitter will do over the next year or more with this newly acquired capital.  If I was working for Twitter, I would strive to continue to develop apps similar to Vine. With this large influx of money, Twitter can take the world by storm.

Following the collapse of a $4.6 billion buyout, Blackberry CEO Thorsten Heins has officially stepped down. He has been replaced, for the time being, by John Chen. In his new role, Chen will receive a pay package worth $88 million. His annual salary and bonus’ will amount to $3 million along as 13 million Blackberry restricted stock, valued as of today at $85 million.

Chen is no new comer to the IT industry, working with the software company Sybase until 2010. When he became chairman in the late ’90s, the company was trading at a record low. He managed to turn the company around, and sell it for $6 billion. Blackberry is hoping that he will be able to duplicate his past performance. Not only is the hiring of Chen strategic in itself, but this pay plan really incentives the new CEO to preform a miracle, and turn this company around. If Chen can turn this company around, and even double the stock price, he will make $170 million. Blackberry Turnaround.. or Takeover? Bloomberg Video

I found this article interesting because it relates to a discussion we had in the Human resources lecture. We were asked a clicker question regarding the best ways to incentives employees. The options were: reduction of hours, reduction of wages, incentivized pay, and a few other options. The majority of the class choice either reduction of hours or incentivized pay. Obviously, Blackberry would side with the later.  I think that this strategy will be incredibly successful. As we have studied in OB, self-interest plays a key role in determining the actions of individuals with in an organization.  Money matters, so hopefully this potential gain with motivate Chen even more to once again create a miraculous turnaround.

Sources:

http://kitchener.ctvnews.ca/hiring-agreement-could-net-new-blackberry-ceo-85-million-1.1532848

http://www.bloomberg.com/news/2013-11-04/chen-s-blackberry-revival-task-mirrors-sybase-in-1990s.html

As an attempt to boost the slowing growth of their economy, the Chinese government has decided to open up a “free trade zone” in Shanghai. This is shift away from traditional CCP economic policy and shift towards a more free market. The government has been an integral part of leading and boosting investment and growth. This new policy would allow the market to determine demand rather than the government. Many believe this small step in Shanghai could lead to more reforms in many different parts of China.

I full heartedly agree with Kevin‘s blog post and his conclusions regarding this new policy, even though it will only be applicable in a portion of Shanghai. It really represents the direction that China is heading. As they have entered the economic world stage and developed into one of it’s leading nations, they have begun to slowly conform to the world standard free market based system. This new policy is an indicator that the leaders of the CCP recognize the value potential in adopting such a change. I expect that over the course of the next ten years, China will continue to head in this direction as it’s people, politics and values develop and align with the rest of the world.

China Tests New Free Trade Zone in Shanghai

http://www.voanews.com/content/china-pilots-new-economic-reform-in-shanghai/1757599.html

In today’s class, we were fortunate enough to hear from two successful Sauder graduates. This experience helped me truly recognize the potential value of my Bachelor of Commerce degree. The first guest, Nolan Watson, is the CEO and founder of Sandstorm Gold, a publicly traded gold streaming company on the NYSE. Listening to him discuss the trials and tribulations he faced early in his career only to become one of the youngest CFOs of a company on the NYSE was incredibly inspirational. He specialized in accounting at Sauder, but always knew that he would head in a more innovative direction. Sandstorm Gold was what emerged from this entrepreneurial spirit.  The second guest was a more recent Sauder graduate named Tina Lu. When she graduated in 2010, she had yet to line up a job let alone a future career. From this daunting uncertainty sparked creativity. Tina used the networking skills she had procured over her 4 years at Sauder and was able to land a job at Lulu Lemon.

Listening to these alumni speak about the many challenges and uncertainties they themselves faced over the course of their undergraduate education and in their early career came as a huge relief. It’s nice hearing that what you’re currently experiencing, self-doubt, increasing pressure, uncertainty, etc is a normal experience. You can’t always plan out exactly what’s going to happen next. But what I really took away from Tina’s and Nolan’s stories was that if you absorb and learn from those around you, you will have the tools to handle whatever obstacles get thrown your way.

Sony Pictures Television has struck a deal with Netflix to produce a new original series with them. This deal, a strategic and profitable proposition for both parties, must have the “hairs on the back” of  cable companies neck’s bristling.  Sony has produced many hit TV shows such as AMC’s Breaking Bad and NBC’s the Blacklist. This partnership moves Netflix, the wildly successful streaming service, one step closer to cable TV. Sony, itself, doesn’t own any cable company and has no conflict of interest regarding this new series. Considering the massive success of Netflix’s past original series, such as House of Cards and Arrested Development, Sony’s involvement in this project will only bring them profit.

Netflix, however, is beginning its strategic expansion into the cable TV world, evolving from a streaming service into a hybrid, similar to HBO. This will help them expand their market to consumers who still prefer to use cable TV as well as strengthen their relationship with current customers. By these two popular entertainment options, consumers who use both will enjoy more convenience.

http://www.businessweek.com/articles/2013-10-15/with-sony-deal-netflix-lands-its-first-big-studio-show#r=nav-r-story

http://www.businessweek.com/articles/2013-10-14/netflix-in-talks-with-cable-tv-companies-dot-whats-in-it-for-cable

After months of uncertainty, Avon employees in France received the hard news that operations would be closing by the end of the month. Avon currently employees 120 staff in Paris that help supply 11,000 representatives. There has been a considerable amount of backlash surrounding the procedures and ethics regarding the notification of their employees and representatives. Many believe the company kept them in the dark and uninformed over the course of the last few months, breaking their own procedures. Estelle Croissant, a currently employee, states, “They have not respected all the processes according to their own rules and values.”  The employees recognize the slowing of profits in France has put the company in a difficult situation financially, but courteous and ethical treatment of employees is an absolutely when shutting down operations, especially for a company like Avon.

Avon is a company that sells almost all its products through self employed representatives. The accusations of mistreatment from their employees in France could lead to a lack of trust with other employees and representatives world wide, many of whom they are entirely reliant on for profit. The company needs the self employed representatives more than they need Avon. There are many suitable brand alternatives for representatives to sell, such as Bare Minerals. Avon, on the other hand, would have to change their entire market strategy, operations and marketing approach if they lost enough of their representatives to competitors.

This ethical and operational blemish on Avon could skew not only employees but consumer views of the company as whole.

http://www.bbc.co.uk/news/business-24522756

http://www.malaysiasun.com/index.php/sid/217726577/scat/hfu8sjsy4hjfjdha/pp/2

After thirteen comfortable years relaxing upon it’s hill-top castle, Coca Cola has been replaced as the most valuable brand in the world. In a recent report by Interbrand Corp, Apple’s brand value has risen by 28% to an incredible $98.3 billion, leaving Coca Cola’s $79.2 billion in the dust. Interbrand calculates brand value based on “financial performance, role in influencing consumer buying and ability to secure earnings.” Many attribute this climb to Apple’s innovation, prestige and image. Others give credit to Apple’s successful executive management. Either way, Apple has become a giant and obvious leader in the tech industry; an industry filled with much turmoil as once leading market shareholders, such as Nokia, are acquired by larger companies such as Microsoft.

The tech industry is becoming more and more characterized by it’s volatile nature and increasing difficulty for companies to define a true point of difference. Of the top five fastest rising companies, four are tech-based. This, among other things, shows that tech companies are becoming the most relevant companies in our lives. This is because they not only have developed distinctive points of difference, for Apple their “sophisticated simplicity”,  for their customers and employees, but are willing and able to adapt with the ever-so-changing consumer preferences. Not only do tech companies focus on their consumers, but they create a creative and supportive workplace environment.  Both Google and Apple have adopted campus-like headquarters that provide employees with a multitude of benefits including catered lunches, dry-cleaning, transportation, etc. This increases employee motivation and overall job satisfaction.

All in all, Apple is undoubtedly one the this most successful companies of our time. You can speculate about  the various reasonings and inter-workings of a company but when it comes down to it, its all about the people. To conclude, I’ve included a Forbes video discussing Apple’s distinctive points of difference!

Steve Jobs’ Innovation Secrets

http://www.bloomberg.com/news/2013-09-30/apple-overtakes-coca-cola-as-most-valuable-brand-study-finds.html

After listening to the lecture surrounding management accounting, I became intrigued by the concept. Not only because I couldn’t grasp why anyone would be interested in regular accounting over this more risk-driven side of accounting, but also because I wondered why I hadn’t been exposed to this field before. I had taken business classes, discussed the many different fields and major options with my two business professional parents, but this side of accounting had never come up. I begun doing a bit of research and found an article discussing just that.

Titled “Accounting For the Real World”, this article relayed in interview with Ben Mulling, the CFO of TENTE Casters Inc.The article discussed how there is a knowledge gap for accountants who finish their degree and the skills required for real world accounting jobs. When asked about this, Ben responded, “Yes, I think schools need to build in more management accounting principles…They aren’t teaching enough basic management accounting terminology, strategy, decision support, and organizational management from an accounting point of view.“ He goes on to discuss that even if you receive your degree in accounting, you need to possess a more versatile skill set. As a management accountant you will be dealing with more than just numbers.  For me, this interview was interesting because I always viewed accounting its own separate entity. There were the numbers and there were the people who enjoyed dealing with those numbers.  In reality, accounting is much more involved than that.  Accountants, too, need to develop important interpersonal, group related skills.

On Tuesday, a court of appeals in California rejected Google Inc.’s attempt to get a privacy lawsuit against them dismissed. Street View Maps is part of Google’s “maps” product that offers 360 panoramic viewing and street level imagery. But according to the plaintiffs involved in the lawsuit, Google collected more than just photographs while capturing the “inhabited world”.  They collected email, passwords, personal images and other information from unencrypted home computer networks, a process which involves intercepting and decoding the data. Google’s defense: the information was “readily accessible to the general public.” Well, the California Court system is not sympathetic to their plea and the suit will proceed, possibly leading to serious monetary repercussions for even a company of Google’s size. Considering the amount of press and controversy online privacy has received in the U.S. of late, the public is informing Google and it’s peers that this sort of unethical invasion of privacy will not be tolerated. Google was also recently connected with In the age of technology, IT companies must learn, and fast, that the ethical standards in business apply to all forms of communication and that sometimes all the money in the world can’t cover up bad ethics.