The Harvard Business Review Blog Network

What I enjoy most about the HBR Blog Network, is that it is a very collective site with many reading materials to choose from. It offers an array of insights on today’s business world through the forms of newspaper/magazine articles, book excerpts, cases, and blog entries. Topics covered through the HBR Blog Network may include leadership, people management, business communication, innovation, and careers, to name a few. Entries are written collaboratively by multiple bloggers which I find very informational, as this manner generates more perspectives and ideas on a problem than one man vs. the world.

I can often connect classroom concepts to their blog posts as I browse. One example is “Four Lessons on Culture and Customer Service from Zappos” which discusses Zappos’ unique hiring method (i.e. paying trainees to quit) and emphasis on customer service, a perfect example of organizational culture from start to endless. In a nutshell, organizational culture is the “values and behaviours that contribute to the unique social and psychological environment of an organization,” and at most times, is hard to replicate by rivals. Zappos’ unique hiring process, bill of believed core values, and non-hierarchical workplace produces a team of loyal, motivated, and dedicated individuals who can be themselves. The positive organizational culture will reflect in the employee’s customer service. In turn, a loyal return-customer base is built, driving Zappos for many years to come.

Badabababa I’m entrepreneurial.

The McDonald’s Corporation currently holds the title of being the world’s largest hamburger fast food chain. Possessing more than 33,000 restaurants in 119 countries, McDonald’s serves approximately 64 million customers a day (Source: Here), a perfect example of entrepreneurship!

A US restaurant that originally began with the McDonald brothers, it was eventually bought by Ray Croc in 1961, the pronounced founder of the McDonald’s Corporation today.

McDonald’s display of entrepreneurship involves:

Risk: When McDonald’s was still owned by the McDonald brothers, the company only had a handful of restaurants. Upon Kroc’s entry into the company, he suggested to franchise the McDonald’s restaurant throughout the US. The brothers were hesitant about the costly move, but Kroc undertook the risk himself and McDonald’s grew slowly for the next 3 years.

Speed/Amount of Wealth Creation: In the 1960’s, McDonald’s began to experience rapid growth through efficient marketing campaigns; “Look for the Golden Arches” were one of its first. The company later went up for IPO in 1965 selling $22.50/share, and on the same day rose to $30/share! The company opened its 1000th restaurant 3 years later. By 1972, McDonald’s exceeded $1 billion in yearly sales within 11 years. (Source: Here)

Innovation: Today, outsourcing drive-thru, a breakfast menu, cheap coffee, Happy Meals, PlayPlace, and McCafe are some of the few innovations in practice that creates new markets for McDonald’s, and defines some of the company’s competitive advantage.

McDonald’s “Look for the Golden Arches” commercial:

How much does a polar bear weigh?

Enough to break the ice.

(Hahaha…)


This November, the Coca-Cola company repackaged its traditional red can to white in honour of the company’s new “Arctic Home” campaign. This commitment in collaboration with the World Wildlife Fund (WWF), pledges Coca-Cola to donate $2 million to the WWF over 5 years to help fund the latter’s Arctic conservation program. The commitment is complemented by another $1 million maximum in 2012 to match consumer donations.

The “Arctic Home” campaign is not just corporate social responsibility in practice, it is also a cleverly designed marketing strategy on Coca-Cola’s part. Using the polars bears concept in its advertisements for years, Coca-Cola’s product repackaging is able to preserve the brand image without risking a disincentive of becoming “unrecognizable.”

Applying concepts from class, we learned that “smart companies use environmental strategy to innovate, create value, and build competitive advantage.” The Coca-Cola company did just that. The Arctic Home campaign allows Coca-Cola to strengthen its brand reputation and instill awareness amongst consumers. With every Coca-Cola product purchase a consumer makes, he/she will be aware that the purchase holds greater value now that Coca-Cola will be donating some of its proceeds. This newfound awareness will encourage the consumer to choose Coca-Cola over others; we may call this a differentiation strategy.

Article: Here

I’m on a boat.

We are most definitely no stranger to the eurozone crisis in descent. Reports noted that just last Thursday, French president Nicolas Sarkozy was amidst a meeting with CCP Leader Hu Jintao. A day later, Klaus Regling, chief executive of the European Financial Stability Facility (EFSF) was spotted in Beijing. Regling speaks about the visit here:


The European Union, not normally one to plead for help, reaches its wit’s end. Regling’s request for China’s financial assistance to prevent the eurozone collapse turns the tides in the latter’s favour. Despite having conflicting reports on whether China would contribute to EFSF, I believe China would provides its assistance, at least to protect its own interests. If the eurozone collapses, China would lose one of its main product export channels, the basis for strengthening Chinese economy. Of course, China would not want to appear as if its nation is the source of “free money”, so it would make concessions in Europe that may have political or economical effects in the future.

Altogether, China’s help can lighten the EU’s debt burden, but would it actually make a big difference? With the debt gone, there’s also the problem of restrengthening the euro.

Article: Here

#occupyvancouver

Like Sarah who sympathized with Occupy Wall Street, I am equally frustrated that corporate greed is almost in as much control as political diplomats are. However, I must agree that no substantial changes may come out of the movement. As Sarah stated, the Occupy movements have went global, but unlike its inspiration who actually has something to protest about, the other occupy movements appear superficial.

Occupy Vancouver began its peaceful approach last Saturday to challenge income inequality between the “1%” and “99%”. However, the protest itself unlike its predecessor appears to have no real direction. “As a group we still don’t know what we want, but I see it as an exercise in democracy.” – Occupy Vancouver Protestor

Occupy Vancouver wants “genuine equality” amongst the classes; this left wing reflection appears rather hypocritical if the protestors want to “exercise in democracy.” Why should a successful entrepreneur who went through the rigorous routines of higher education and hard work, be paid the same hourly wage as your dishwasher? Rather than compare the earnings between the 1% and 99%, we should acknowledge that the “1%” are already being taxed to support EI and welfare. Laws/tax regulations are already in place to attempt to achieve equilibrium.

On Monday, it’s interesting to note that Occupy Vancouver had items including “Apple laptops with Final Cut Pro” on their wishlist, though currently said items have now been removed, protestors must have realized their hypocrisy. Occupy Vancouver requires a better platform if they truly want to break the apathy of Vancouverites.

Article: Here

Oh wow! iPhone 5—just kidding.

After the blockbuster release of the iPhone 4 last year, Apple fans held high hopes for the long-awaited iPhone 5 this fall… only to witness the unveiling of no iPhone 5 but a 4…  with an S!

Oh joy?

The newly released iPhone 4S fails to impress critics and disappoints consumers. Simultaneously, company shares falls down 4 percent and counting. An updated camera, integrated voice control system, quicker speed, and longer battery life, are features far from overwriting its successful predecessor. However, this is great news for fellow competitors such as Samsung and Nokia. Both corporations have long been innovating their own mobile products to top the Apple smartphone. The iPhone 4S upgrade will not be enough to delay said competitors.

Larger companies today build their success around the right business technology management and innovation to survive in this accelerated world. So we wonder, is the 4S paving a way to the next big thing, or has Apple already reached its innovating peak? Did the newly-appointed Apple CEO Tim Cook realize, that the iPhone 4S is not enough to satisfy the innovation-hungry consumers? Apple certainly committed an error by not introducing a repackaged iPhone 5 with more functions and updated appearances. Consumers may feel Apple is taking another shot at their pockets with this lackluster upgrade.

Article: Here

RE: “Zellers’ Fresh Scheme”

To compete with rivalling company giants Wal-mart Stores Inc. and Loblaw Companies Limited, who’ve already implemented groceries onto their shelves, Zellers follows in these footsteps to maintain equal footing in the markets.

As mentioned in Aman’s post: “ZELLERS’ FRESH SCHEME”, he covers that though food may be attractive enough to increase customer volume, there will be the continuous existence of risks, solid competitions, and long term investments in preservation of this regime. Agreeing and adding on to that, though Wal-Mart Supercentres and Zellers’ grocery line have faced success so far, the two companies’ trial runs were in the likes of Saskatchewan and Winnipeg respectively. They have yet to reach more urban markets (i.e. Toronto, Vancouver etc.) where there will be certainly a wider variety and selection of competitors than each other.

Resembling Canadian Tire’s own project of adding home appliances to its shelves, one wouldn’t think “Canadian Tire” to get a blender. Similarly, when one thinks groceries, they would more likely imagine Superstore rather than Zellers. Zellers must strengthen its marketing strategies and brand positioning, or repositioning, to accommodate this new direction. If done well however, Zellers can be paving its way to another milestone in its history.

Does this make my butt look big?

Earlier this year, Reebok International Limited, well-known manufacturer of shoes and apparel alike, was accused of producing false facts in marketing their “EasyTone” and “RunTone” shoe line. As of today, Reebok has agreed to pay a $25 million refund towards settling the lawsuit made by the Federal Trade Commission (FTC).

Since 2009, advertisements promoting Reebok’s “toning” shoes, claimed the shoes were able to strengthen one’s leg muscles by 11%, and tone one’s buttox by 28%. According to the FTC, these “proven” facts were unsupported. However, the claims were a huge success and Reebok generated $1 billion dollars in revenue in 2010.

“Settling does not mean we agree with the FTC’s allegations; we do not.” – Reebok Spokesperson.

Aside from the somewhat absurd claim that these oddly-shaped shoes can tone one’s body rather than create injury, Reebok’s “11%” and “28%” strengthening and toning facts respectively, are questionable. Blatantly speaking, if these facts were “proven” true, why was Reebok unable to provide said proof? Consumers from now on will question the validity of Reebok’s new product claims and feel deterred from making a purchase. As discussed in class, consumer perception of the Reebok brand has faltered. Reebok now has the difficult task of reestablishing themselves in the consumers’ mind and mend this negative point of difference.

Article: Here

Clubbing… at home.

Without any forms of marketing, Badoo has become one of the most popular social networks in the world. The site is about “meeting people spontaneously”, like clubbing. Badoo allows users to add details about themselves and upload photos. Through these details, users are able to discover other users so they can “spontaneously meet” via online chats for free. So how does Badoo make profit? Much like Ryanair’s miscellaneous charging policies, one example of Badoo’s miscellaneous charges is increasing an user’s chances of getting “discovered”, through a fee. We may think these are trivial privileges, but Badoo boasts of exceeding $100 million in annual revenue.

Though Badoo is growing to be a social network powerhouse, it has yet to enter the profitable English-speaking markets. However, Badoo’s ability to realize that human beings are social mammals and are prone to curiosity, they have reached an entrepreneurial goldmine of convenience. Of convenience, because today, there is an increase of people more willing to interact online than in real life, using social media as social interaction. Though there are risks of Badoo falling out of popularity, Badoo’s fusion of “staying in touch” and “meeting people online” equally has many more opportunities to grow as a business with the right marketing.

Article: Here

The Trojan Horse

In “Four Strategic Generosity Lessons”, Rosabeth Moss Kanter discusses the corporate responsibility of “giving”. Kanter compares the act of giving or “gifting” to a trojan horse and argues that a company’s donation can be viewed as having ulterior motives if performed at the wrong times, making community figures wary of “outsiders bearing gifts”.

Back in 2010, CEO of Facebook Mark Zuckerberg, with Microsoft founder and successful investor Bill Gates and Warren Buffett respectively, signed the Giving Pledge. This pledge allocates half their income over time to charity. When the Gates-Buffett duo took on the lead for the pledge, it’s interesting to note that business leaders soon followed after. This makes us question the followers’ genuinity for the cause, or whether they’re driven by peer pressure. When Zuckerberg donated $100 million to the Newark school district, this donation intercepted with the release of “The Social Network“.

Publicity stunt? Hard to say.

This case reminds us of Friedman’s “Social Responsibility of Business” where he asserted that a company’s responsibility is to make profits for its shareholders. Even if Friedman is correct about classifying Zuckerberg as such, we must face the fact that $100 million has been donated to Newark students so they can have equal education opportunities. The strategical bonus was the Facebook brand’s “better image” at the expense of the genuinity value.