Author Archives: KathleenCastner

If the United Nations was fully funded why would we need the Arc or social enterprise?

The United Nations aids developing countries in their battle against poverty, and assists such countries towards achieving a stronger economy as there is a substantial lack of funding. Many people in countries such as Ethiopia do not possess the fundamental knowledge to support their community through local business. I believe that the United Nations, as it is enormous in size and helps a broad range of countries with varying issues, is unable to provide assistance on such a personal level that the Arc and social enterprise/social entrepreneurship can.

For example, Sauder’s Arc Initiative- a program that “facilitates a genuine two-way exchange of knowledge and business skills” (Sauder)- was able to provide an Ethiopian woman, Fitih Tesfaye, with the skills and inspiration to move into an untapped market and carve out her niche (Globe and Mail). This in turn, led to successful results in her local eatery and continues to be successful today.

I believe this example shows that smaller, more personal initiatives can make a large and lasting impression on African locals as they are able to provide skills, and in turn benefits, that simple funding cannot do. It is knowledge and experience that is needed in developing countries in order to provoke meaningful takeaways from organizations such as the Arc Initiative. I believe that it is the Arc and social enterprise that allows struggling locals to learn business models that will give them success, which will allow them to escape the poverty cycle.

Sources: Photo 1 (Featured Photo), Photo 2

*This blog is for Class Prep 20 and is not included in my 10 blogs to be graded

Re: Cassandra-Pepsi’s Positioning

Cassandra’s blog post discusses the power and effectiveness of brand positioning. Cassandra claims that positioning is crucial in order to make a lasting impression in a crowded market place where companies are using advertisements to reach the consumer. I agree with her standpoint, and believe that marketing and advertising are the leading method to differentiate products.

Viewing Most Unforgettable Ad Campaigns of 2013, I came across WestJet’s holiday commercial, and was greatly moved by the underlying meaning of this advertisement. Like Pepsi, WestJet has positioned itself successfully to appeal to a customer segment that in this case, sympathizes with the less fortunate during the holiday seasons. In WestJet’s Christmas ad, travellers expressed their Christmas wishes on a candid camera, and once they arrived at their destination, were surprised with wrapped gifts.

While I believe that some companies only give back to the community on a basis of pure marketing ploys, I am moved by how genuine this advertisement is. As a semi-frequent flyer, I am impressed with WestJet’s initiative, and would lean more towards this company over Air Canada simply on the basis of successful marketing and ethical practices.

I greatly appreciate the innovation that goes into advertisements such as these: the marketing team must brainstorm a unique idea and execute it in a successful fashion in order for it to be effective. Advertisements in general have become more creative and outside-the-box, which I find entertains consumers and has a great ability to influence people’s decision making. I applaud companies that sway towards the socially responsible side of the spectrum as I think their ads resonate well with people and have the ability to tell a story that will remain in people’s thoughts long enough for them to google WestJet flights over Air Canada flights. All it comes down to is that lasting impression, and I believe WestJet has positioned itself successfully for me to remember this ad for years to come. Marketing and advertising have the potential to showcase global and social issues, so I beg the question: Why not create a socially-conscious ad that informs and influences your audience to become more aware of global issues, while still showcasing your company? Personally, I find animal ads (Geico hump day, Stride Ostrich) repetitive and cheap-I will continue to be impressed by conscious ads such as WestJet’s Christmas Miracle commercial. I say, keep up the good work!

External Blog-A New Form of Entrepreneurship

It is true that entrepreneurs possess ambition, aggressiveness, toughness, curiosity, intelligence, and a strong worth ethic (Y Combinator); however, I believe that modern day entrepreneurs must also possess a level of creativity and uniqueness. It seems as though technology is becoming an increasingly useful tool for start-up companies, making online stores and blogs even more popular.

Cara Loren is a blog for fashion inspiration that I quite randomly stumbled upon a little while ago. I began to look at differently, in the sense that so many businesses can be promoted through sites such as these. Online platforms are an incredibly useful means to further promote your business, and yourself in that matter. Blogs are a way for people to make themselves popular and known for their ideas and in this case, fashion sense. I believe that people who are able to start blogs such as these are in a sense very much like entrepreneurs. Cara’s blog will soon give readers the opportunity to shop on the site; this is extremely ambitious as I believe that starting a successful blog is like starting your own business: one must attract readers and keep them interested. Better yet, some are even able to make money off of their popularity. I believe Cara will be successful in expanding this option to shop on her site. I commend those who can take their words and turn them into money. I admire Cara’s grit and determination, and can see her inner entrepreneurial side.

Check out Cara’s blog! Click here.

Also, click here to see The Globe and Mail’s Canada’s 10 most remarkable small businesses – I can’t help but be reminded that successful bloggers must go through many of the same steps in becoming successful that small business must also accomplish.

Seaworld’s Lack of Corporate Social Responsibility

Blackfish (2013) is a documentary telling the story of a killer whale, Tilikum, who was purchased by SeaWorld after having killed a young woman in Victoria, BC at SeaLand. SeaWorld did not inform its employees of Tilikum’s dangerous tendencies, which lead to the death of a trainer and several other incidences, not only from Tilikum, but from other whales as well.

This film has heavily impacted me as I was introduced to SeaWorld’s poor practices such as false facts to visitors, small animal confinement, deprivation of food, and breaking up pod families. I believe that SeaWorld practices the farthest thing from corporate social responsibility; animal captivity is becoming a faux pas as we become more educated and ethically aware of corporate actions, and SeaWorld has only slightly modified its actions due to social outcry. Blackfish does a spectacular job of showcasing SeaWorld’s complete lack of corporate social responsibility “CSR” and calls into questions its ethical practices. United Airlines has also failed to practice CSR as they are transporting whales and dolphins for companies; this “condones the outrageous hunting, killing, capturing, training, transporting, and the misery of a life in confinement for these animals” (The Dodo) which I believe is barbaric in our current society. How do these companies not understand the effects of their practices?

I am excited to say that (according to a Globe and Mail article) after the release of Blackfish, SeaWorld experienced a dive in share prices. I am pleased that investors are sending the message that they do not support the harming of animals and am glad that SeaWorld is finally experiencing the consequences of their actions. I find it barbaric that SeaWorld would claim Blackfish is a “is a “propaganda film” that is “not based on science”” (Globe and Mail)- clearly, the company still has to fully come to terms with what their actions promote.

Other companies, however, have responded to Blackfish in positive ways: Kenmore Air, a floatplane company in Seattle, has launched a campaign called the “orca plane project” (The Dodo), to emphasize that whales belong in the wild. I believe this is a great act of CSR as they are aiding Wild Orca in their awareness campaigning and being a role model for other companies to follow. I think it is great to see companies such as Kenmore Air responding to current social issues through this plane project. They practice respectful procedures when encountering whales en route, they have given Wild Orca a plane to be decorated like an orca, and will be providing informational brochures in their planes for passengers to read. As a consumer, I respond well to these actions: if something (such as this) catches my attention, I will tell anyone who will listen, which means positive publicity via word of mouth for these companies.

Companies such as Kenmore Air give me hope that there is CSR in the world. Companies such as SeaWorld, however, need to fully realize the consequences of their actions and re-evaluate current practices to become more responsible in what they support.

Blackfish Trailer:

Wild Orca Campaign Video:

Porter’s Forces-Sitka

Michael Porter created a framework that shows 5 influences on an industry, revolving around the concept of rivalry. These forces exemplify how business managers must develop an edge over rival firms in order for such firm to compete. (Porter’s 5 forces) The threat of substitutes is among Porter’s framework and I believe the threat of substitution is becoming increasingly worrisome for small businesses as they must compete with larger companies that provide cheap alternatives to high-end fashion. A Globe and Mail article expresses the pressure that European businesses are feeling towards discount competitors. I believe this article is relevant in the Canadian fashion industry as well, as big-name companies (such as Forever 21) are able to offer customers cheap, trendy clothing that rivals small businesses attempting to sell similar trends.

With this being said, I believe it is relatively attractive to enter the fashion industry-everyone needs clothes and with online stores, it is becoming increasingly easy to start your own brand. However, the real challenge is creating a brand that resonates well with its customer segment(s) and can survive with the threat of substitution (which is especially prevalent in the fashion industry).

“Sitka is a lifestyle brand” (Sitka) that is focused on trendy yet casual wear for stylish adventures in the beautiful local environment. Founded in Victoria, BC in 2002, Sitka has only 3 stores in Victoria, Vancouver, and New Zealand. This company has a niche market catered to young, higher-income, outdoorsy types of people, which I believe is a relatively difficult customer segment to focus on.

However, I believe that Sitka has been successful as the company has not been shut down due to intense rivalry with similar stores offering products to the same customer segment. Sitka does not have many threats of substitutes as it is such a specific niche-MEC offers practical outdoor-wear, but not in the stylish way Sitka does. I believe that the barriers to enter to the fashion industry is of low difficulty, making Sitka even more attractive as a brand- it continues to sell the same products it started out with, and not changed its mission due external pressures. While suppliers and buyers have relatively high power (as mentioned in Porter’s model), the fact that Sitka provides to such tailored needs has allowed for enormous success and the company has even expanded into having a café in its Victoria location, bringing in even more revenue.

Despite having such a specific niche in the market, I believe Sitka has been successful in its value propositions and its endeavours due to the fact that its consumer market is so narrowly defined. While the fashion industry is an attractive industry to enter, the stylish-outdoors niche is unattractive to enter; Sitka has proved how having a specific niche gives a company a competitive edge, making a relatively unattractive industry to enter seem attractive.

Photos: http://www.quickmba.com/strategy/porter.shtml , http://www.vendhq.com/testimonials/sitka-surf-shop-pos

Sources: http://www.quickmba.com/strategy/porter.shtml , http://sitka.ca/

Class 10: First Nations-Key Trends

The First Nations have significant land claims in British Columbia. “Premier Christy Clark declared: “B.C. is Indian land.”” (Vancouver Sun) As British Columbia becomes more populated, First Nations land is becoming more valuable and companies such as Enbridge and BC Hydro require the First Nations people’s permission to access their land.

Enbridge wants to run a pipeline through First Nations land, which will be “25 per cent of the proposed 1,177-kilometre route” (Vancouver Sun). BC Hydro wants to build a dam, which will flood “83 kilometres of the Peace River Valley” (Vancouver Sun). The First Nations have strongly disagreed with the companies’ proposals, and they claim that the possible destruction of their land affects them greatly.

Enbridge and BC Hydro’s business plans are affected by many external factors such as Key Trends; they are especially affected by societal and cultural trends of the First Nations. The First Nations have a culture based strongly around connection to the land. Any disturbance to the land-these companies’ proposals do have degrees of risk-affects their culture as they live off the land (salmon, trout, etc.) and have “elders’ gatherings [on the land] annually” (Vancouver Sun). I believe these companies are affected by these social trends as many First Nations people all over British Columbia have similar belief systems of land being sacred, and all the First Nations in British Columbia have huge amounts of power on these issues as they were the first settlers, and they can join together to become a powerful force. Enbidge and BC Hydro’s business plans are affected by these key trends because the long lasting Aborginal tendencies are not likely to break their trend of being protective of their land. Similar issues have occurred before over land disputes, and if the First Nations put up a good fight before, they are likely to do it again. The current trend is resistance. If, for example, Enbridge wanted to compromise on which blocks of land ran through First Nations land, I believe that the trend will continue: overall resistance.

Sources: Prep 10 readings connected to News Article

http://www.vancouversun.com/news/There+will+pipeline/10122968/story.html

http://www.vancouversun.com/news/First+Nation+chiefs+stage+Site+showdown/10215965/story.html

Photo: In Text and Feature Photo

Aritzia’s Brand Strategies & Value Proposition

Aritzia was founded in 1984 by CEO Brian Hill. Privately owned, it is a Vancouver-based women’s clothing boutique for the dynamic and stylish. Artizia’s customer segment is upper class women who can afford to pay higher prices for their clothing. In the recent decade, the company has become extremely popular amongst young people, opening stores all over North America. Sustainability is not a major component of its value proposition, but with a recent announcement, I believe the company can use sustainable practices as a point of difference in comparison to other high-end fashion retailers.

I believe that Aritzia has been very successful in creating a brand that resonates well with its customers. Sally Parrott, Senior Director of Marketing, explains in a BC Business interview that Aritzia’s brand truths are about style and quality design. CEO Brian Hill explains that their value proposition is simple: They “offer beautifully designed clothes that are on-trend, high quality, and of good value.”

As a consumer, I feel they have achieved what they have outlined in their value proposition, but feel that there is a lack of attention to environmental needs. Aritzia has targeted a customer segment that is catered to the elite: high prices and well-known brand names. In my opinion, sales associates embody Aritzia’s brand values and are able to build a customer relationship with each customer as they are extremely attentive and are willing to find something that suits each woman’s needs and wants. However, it is likely that Aritzia’s consumer market does not care about sustainable practices, despite having a employees fully embody the organizational culture.

I believe Aritzia has created a brand that does many jobs for its customers. Some gains include shopping for different occasions among different brands, convenience of sales associates, personal shopping, and positive social consequences (ie. well recognized, higher-end brand). The downside of owning a high-end fashion store is that sustainability often gets overlooked.

However, companies are evolving as consumers become more aware of how companies use their resources and in the way they manage their materials. This in turn, influences where people shop. I believe people on the West Coast, especially Vancouver, are becoming more conscious of sustainability and ethically sourced products. Aritzia, along with a few other well recognized companies in the fashion industry, have recently committed “to source clothing fiber that doesn’t come via conversion of old-growth and high conservation value forests” (Mongabay News). I think this announcement, with perspective to Aritzia, will enhance their value proposition and draw in a new customer segment that would otherwise not shop at Aritzia due to unknown ethical practices. This sustainable decision will give the company a competitive advantage over other elite fashion retailers as I believe that sustainability will soon become a deciding factor on where customers spend their money.

Photo Source: http://www.refinery29.com/canadian-super-boutique-aritzia-to-set-up-shop-in-soho

Web Source: http://www.bcbusiness.ca/people/qa-with-aritzias-sally-parrott

Re: Erin Wallace- Baggage Charges

In her blog, Erin mentioned the uproar over Air Canada’s decision to charge $25 for checked baggage on domestic flights. I agree that since there is high demand for their trusted services, they are able to get away with additional charges.

Upon their announcement, people were unhappy, and the company received negative attention. I wonder whether the announcement was necessary? I believe that if Air Canada had added $25 onto flight costs instead of making a big announcement of this additional charge, people may not have noticed, and may not have made such a big fuss about it.

Air Canada could say that their business model appeals to passengers with carry-on items as it means lower costs as they waive their $25 fee. However, their customer segment as to which this applies to is a small minority of flyers. Those who carry-on their luggage tend to be frequent flyers travelling in business class-I would conclude that saving $25 on a business class ticket is not a leading reason as to why the passengers chose Air Canada.

If prices have been relatively constant for carry-on passengers, I do not think that a drop in carry-on price is better than charging the majority of people more for checking a bag. As a client of Air Canada, I respond more to an increase in price than a drop in price. To me, paying $25 is a bigger deal than saving $25 depending on my luggage choice.

In regards to Air Canada’s practices, I can understand that the company is looking to maximize profits. From this checked baggage policy alone, they “should generate $60-million in annual revenue” (Financial Post). However, I believe there would have been less of a response if the company had silently added $25 per flight than announcing their decision to charge people more. It is simply the idea of paying for something that used to be free that is of concern.

Would you notice a $25 charge on a $322 flight to Edmonton? Does $347 sound much more expensive than $322 if you know that is your final cost? I would rather pay $347 and be done with it.

Source: http://business.financialpost.com/2014/09/20/airlines-go-a-la-carte-why-travellers-should-get-used-to-baggage-fees-and-more-unbundling/

Photo: http://www.thestar.com/news/canada/2014/01/18/air_travel_woes_have_passengers_call_for_usstyle_disclosure.html

Should they stay, or should they go?

The Temporary Foreign Worker (TFW) Program is said to be a major asset for the province of Alberta as the province is facing major labour shortages. The TFW Program is deemed necessary for fast food places to continue to operate for twenty-four hours. McDonalds’ workforce is made up of 24% TFWs (5). In 2012 it was shown that Alberta uses the process of hiring TFWs more than any other province (3), exemplifying its impressive need to keep the TFW Program running. Immigration in Canada since 1967 has progressively increased, with a total and record of 491,547 TFWs in 2012, which is five times more than in 2002 (2). The Program allows those unable to find work in their country of origin to experience living in a new country while earning savings to support themselves upon their return home. In addition, the program allows these workers to gain experience, which could lead to full time work; if TFWs are given full time work, they have the opportunity to “qualify through the Provincial Nominee Program for permanent residence” (1).

I, however, will argue that in contrary to the labour shortages in Alberta, the Temporary Foreign Worker Program should be permanently discontinued because the program’s guidelines have been abused, workers have been mistreated, and it has lead to family unification immigration. It is nearly impossible to prove that there is a “serious labour shortage” (3) as the “quality of Canada’s labour market data” (3) is extremely poor. It was reported by the CBC that three McDonald’s restaurants “displaced (Canadian workers) by temporary foreign workers” (3). Employment Minister Jason Kenney announced that the TFW Program is facing the possibility of elimination by 2016 (4) on the basis that this program has become a “family reunification program” (4) in disguise. The program is increasing the number of immigrants wanting to enter Canada to be reunited with their family. It can be assumed that most have no job prospects lined up, as their reasons for entering Canada is to be reunited with loved ones. In addition, McDonalds workers claim they are treated “like “slaves,”” (6) and were deducted money from their paycheck on the claim of payment for rent (which was not specified in the initial recruitment). The government should continue to investigate the major flaws in the TFW Program, especially in the McDonalds industry as I believe the program creates more problems than it solves.

Sources:

1: http://www.cic.gc.ca/english/resources/publications/employers/temp-foreign-worker-program.asp (CIC)

2: http://www.immigrationwatchcanada.org/

3: http://www.theglobeandmail.com/news/politics/temporary-foreign-workers-everything-you-need-to-know/article18363279/ (Photo also from here)

4: http://www.theglobeandmail.com/news/politics/elimination-of-foreign-worker-program-will-be-on-the-table-in-2016/article19322845/

5: http://edmonton.ctvnews.ca/edmonton-area-franchisee-concerned-over-changes-to-temporary-foreign-worker-program-1.2001572

6: http://www.cbc.ca/news/canada/edmonton/mcdonald-s-foreign-workers-call-it-slavery-1.2612659

Apple’s Future

Over the last decade, major leaps have been made in technology. In my opinion, Apple has been a long-time front runner, as their innovative designs have become increasingly popular as new devices were introduced. I appreciate that Apple makes easy-to-use devices and the modern design is what draws in consumers such as myself. They have been extremely successful in their marketing strategies as they have played a significant role in Apple’s success as a company. The brand name has become a global phenomenon, but with popularity comes an increased price as Apple products are in such high demand. Purchasing an Apple product has become somewhat like buying a Chanel purse: expensive, well-recognized, but (is becoming) impractical.

With Apple’s recent release of the iPhone 6, iPhone 6 Plus, and the Apple Watch, I have started to question what is in store for the future of the company. Especially with the release of new products in such a short time span, I find it tough to keep up with what the company keeps releasing. The Economist suggests that price is becoming a concern for some consumers. The average selling price of the iPhone is $609 and competitor prices are $249 worldwide. The Apple watch is priced at $349 and “unlikely to be a serious competitor to other expensive watches”. While the watches are “supposed to help the firm expand into new areas”, is Apple thinking in the right direction? It is said that Apple is thinking outside of the box in inventions such as a mobile wallet (a tap of the watch instead of use of credit cards), but I wonder if Apple is possibly thinking too far outside of the box…in another dimension. Apple has been losing shares to Samsung and Xiaomi and is becoming a “niche player”. With a decline of revenue in the iPhone and iPad in 2014, I question whether Apple products will soon become unnecessary accessories just for “techies”.

Apple’s business model appeals to the mass market, specifically those able to spend more on their technology. To be fair, I would say that the majority of apple’s customer segments are willing to purchase just about anything at any price. They have been successful in creating a dedicated, loyal consumer market. However, I am starting to question the role I play as a consumer.

In my opinion, Apple has become a very different company that is trying to refocus on different products. I believe it needs to continue having a competitive edge, but it should realize that its refocusing may drive consumers away. Consumers and investors may need a clear path drawn out as to where Apple is trying to lead consumers in their new direction. If I were an investor, I would be wary of the company’s known secrecy; as a consumer of Apple products, I am finding myself not wanting to buy their newest products as many features do not appeal to me whatsoever. While I admire their simplicity and aesthetic appeal, I worry that I will soon not want to buy any Apple products; in that case, I will have a difficult time finding a substitute.

Source: http://www.economist.com/news/business/21616967-apple-becoming-very-different-company-and-not-just-because-its-newly-unveiled

More than Hardware photo: http://www.economist.com/news/business/21616967-apple-becoming-very-different-company-and-not-just-because-its-newly-unveiled

Cover Photo: http://www.returnofkings.com/31224/rotten-apple-inc-poisons-cultures