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