Class 20: Social Enterprise and the Arc Initiative – Why we need them

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

To answer this question, we need to first understand that the United Nations and social enterprises are different in terms of structures and how they function to promote systematic social change. The United Nations is an international organization with 193 member states and it is mainly involved in peacekeeping and humanitarian assistance, as well as other fundamental social issues such as environment and refugees protection. Due to its mega scale, multiple missions and member nations’ vast interests in power play, it is indeed difficult for the UN to create long-lasting social changes that could have a direct impact on all the communities in need of help.

On the other hand, social enterprises have much smaller scales. They are driven by individuals who could turn creative thinking into direct action to invent new approaches that tackle social issues. Social entrepreneurs personally get in touch with the communities to hear their voices and subsequently take small but practical steps to develop solutions. It is very efficient and successful in generating sustainable social values, as exemplified by the stories of many inspiring social entrepreneurs around the world such as Muhammad Yunus. The founder of Grameen Bank, he offered micro loans to the impoverished in Bangladesh, empowering them to become more economically self-sufficient. I really admire his ability to see the opportunities that others easily missed and furthermore his determination to disrupt the status quo. The world definitely need more people like him.

In all, even though the United Nations was fully funded, we still need social enterprises to serve as a complement and driving force to effect social change and make the world a better place for our generation as well as the future generations.

Food for thought: Response to Angela’s blog

IMG_54841

In her blog post, Angela has addressed the issue of the recently proposed increase in international fees and residence fees by UBC. I totally agree with her on this issue, as the price increase will add further to international students’ heavy financial burdens. What distresses me more is that the university did not provide any concrete and convincing reasons to support their proposal. Just because other top Canadian universities have also increased the tuition fees doesn’t mean UBC has to do the same to “stay at the same rank”. After all, it’s the quality of education and students’ experiences that matters.

Meanwhile, according to a CBCnews article, UBC is spending more than $127 million on building a new college, known as Vantage College, catering exclusively to high-paying international students. UBC even openly admits that it is intended to “alleviate financial pressure on the university”. However, the exorbitant tuition fees paid by Vantage College students may not guarantee them a more enriching college experience. Based on my personal observation, the integration of those students into the big UBC community is proven to be really difficult. The university should focus more on helping them to be integrated into campus rather than treating them as revenue generating machines.

 

Image Sources:

http://ubyssey.ca/wp-content/uploads/2014/10/IMG_54841.jpg

Innovation & Entrepreneurship: WeWork’s success

WeWork-Meatpacking-Large-OfficeI first came across the idea of co-working spaces when I was doing research for our group project Internet Café. Co-working spaces are in hot demand nowadays as they provide a platform for independent business professionals or small companies to work together in a creative and flexible working environment. There are many successful stories of shared office operations such as WeWork, the leader in this surging co-working space movement.

There are many things to learn from WeWork’s founders, Adam Neumann and Miguel McKelvey. They saw the need to change the old model of office space to cater to current societal trends and did not hesitate to put their ideas into action. The two entrepreneurs were ambitious and willing to take risks, seizing the opportunities to expand as fast as they could cope as they had confidence in their start-up. In addition, they were not willing to make compromises and were determined to create what they believed to be the ideal co-working spaces. Most importantly, Neumann and McKelvey have passion in what they are doing and it motivates them to get over obstacles and challenges along the way.

 

Image and Website Sources:

https://www.wework.com/wp-content/uploads/2013/12/WeWork-Meatpacking-Large-Office.jpg

http://www.forbes.com/sites/alexkonrad/2014/11/05/the-rise-of-wework/2/

How Popeyes reinvented itself to win the fried chicken war

PopeyesLogo

KFC, the traditional incumbent in the fast-food industry, is busy closing down bankrupted stores currently. On the contrary, Popeyes is embarking on an aggressive expansion plan, opening new stores and even buying former bankrupted KFC restaurants. Their respective competitive strategies and operational effectiveness play a key role here.

KFC, although still drastically outnumber Popeyes in terms of number of stores both domestically and internationally, is lagging behind the competition due to old menus and many uninviting stores in poor locations. Because of its mega scale of business, managing all stores equally well is proven to be logistically difficult. Popeyes, however, is equipped with menu innovation, more widespread media promotions and improved relationships with its franchisees, contributing to store renovation efforts. Also, Popeyes does not offer salads in an attempt to follow the health-conscious trend, unlike KFC and many other fast-food restaurants. Personally I think it is a brilliant move as it allows Popeyes to stand out and focus more on its flagship fried chicken.

In all, Popeyes’s resurgence and KFC’s decline are a testament that leading companies need to vigilantly watch over their businesses while actively engaging in innovation and improving operational effectiveness. Otherwise, they will risk of being overtaken by strong rivals.

 

Image and Website Sources:

http://www.cooperkatz.com/images/uploads/PopeyesLogo.jpg

http://www.forbes.com/sites/briansolomon/2014/11/05/kfc-killer-how-popeyes-reinvented-itself-to-win-the-fried-chicken-war/

Can Ello – or Any Social Network – Take on Facebook ?

ello-vs-facebook

The social network space is oversaturated nowadays. Yet Facebook’s leading position seems unchallenged. The key leverage of Facebook is its massive number of users. Last quarter, Facebook passed 1.19 billion monthly active users. The significant network effects it created make it hard for any social network sites to unseat Facebook.

However, Ello, the new invitation-only social network service just launched this year, seemed bent on taking the challenge. Its “simple, beautiful, ad-free” web page was quite the opposite of Facebook’s cluttered ad-spamming home page. Also, manipulative user tracking system and controversial privacy settings do not exist on Ello. After reading their privacy policy, I find out that users are even given the option to opt out of information sharing. Nevertheless, despite all these fancy features and its exponentially increasing popularity, I still remain skeptical about its goal of taking on Facebook. The reason is simple. With so many existing free social network services available, like Instagram, Snapchat and Youtube, creating a large enough user bases while aiming to make a profit out of it really takes time and lots of trial and error, especially since Ello is determined not to take money from any advertisers. Maybe the optimal strategy is to stay in its niche social network with its selected artistic users.

Image and Website Sources:

http://acmconnect.com/blog/wp-content/uploads/2014/09/ello-vs-facebook.png

http://knowledge.wharton.upenn.edu/article/can-ello-social-network-take-facebook/

Class 10: Business Model Canvas and Macro Environment—Tsilhqot’in VS Taseko

10192767

The company in question here is Taseko, a Canadian mining company focusing on the operation and development on mines in British Columbia. Recently Taseko has been involved in a territorial conflict with a B.C. First Nation, the Tsilhqot’in. The latter unilaterally declared a newly courts-approved area as a tribal park, including the site of Taseko’s New Prosperity copper-gold project at Fish Lake, which lay outside the supposed title area.

The social-economic trend nowadays is that First Nations people are putting increasing efforts to protect their titled landscapes from being contaminated by industrial hazards. They are willing to forgo the potential economic benefits accompanied by industry developments near their homelands. In addition, based on Supreme Court of Canada ruling, corporate industries have to seek legal consent from the Tsilhqot’in before pursuing any industrial development on their traditional territory. Both social-economic trends and regulatory trends provide foresight for Taseko’s future development. Whether Tsilhqot’in people’s declaration of tribal park is legitimate or not, developing and maintaining mutually beneficial relationships with the First Nations communities should still at the top of Taseko’s agenda. Moreover, more investing in environmentally sustainable and friendly mining technologies should be pursued to show that the company, just like First Nations people, is also committed to the preservation of biodiversity.

 

Image and Website Sources:

http://www.vancouversun.com/news/metro/Unilateral+park+declared+Tsilhqot+includes+Prosperity+mine/10192766/story.html

http://www.vancouversun.com/news/metro/cms/binary/10192767.jpg?size=620x400s

 

 

Business ethics issues : Response to Vicky’s blog

I would like to expand further on Vicky’s blog post regarding artisanal gold mining in West Africa from this article.

ghana-mining-04Poverty has been a prominent issue in Africa for a long time. It is not surprising that impoverished workers would willingly work as artisanal gold miners, no matter how harsh the working conditions are, to scrounge a tiny income for the families, as they could not otherwise survive.

However, I do not agree with Vicky’s viewpoint that as long as the trade is legal and agreed by both mineworkers and mining companies, there is nothing unethical. The mining companies aim to increase profits while engaging in open competition without deception or fraud. Based on Friedman’s theory, they seem to have fulfilled their social responsibility as business corporations. However, using artisanal miners from time to time as an unofficial exploration team and hence subjecting them to dangerous and poisonous working conditions is definitely considered as an exploitation of workers and therefore unethical. While the international mining companies should not held solely responsible for miners’ welfare, they could at least invest more in mining technologies to improve the overall working conditions and efficiency for workers. Governments may also negotiate with foreign companies to ensure the welfare of ordinary citizens is not compromised extensively.

Image and Website sources:

https://d3n8a8pro7vhmx.cloudfront.net/opencontracting/pages/60/features/original/ghana-mining-04.jpg?1350906819

http://search.proquest.com/docview/1033811415

 

 

Pepsi and Coca-Cola’s “healthy” choices

141002092042-pepsi-coke-natural-620xa

Soft drinks are often related to obesity, diabetes and a series of health issues. As the society is getting more critical of products that are high in sugar, calories or artificial ingredients, beverage companies like Pepsi and Coke have responded to the health trend by introducing new products that are marketed as relatively healthier choices.

Pepsi True contains 30% fewer calories than its regular version while Coca-Cola Life has 40 calories less than the traditional Coke. And both new products will contain stevia, a natural sweetener extracted from plants.

Personally I think the reduced-calorie drinks may still not appeal to the very health-conscious consumers, since soda drinks are in nature still unhealthy drinks that contain far more sugar than our daily sugar needs. Therefore it is really ironic and misleading to pitch them as healthy choices. However, the marketing endeavours are effective in making consumers feel less guilty about drinking sugared soda.

From another news article, Coca-Cola also signed up for the UK government’s controversial responsibility deal to help improve public eating habits. It is obviously a win-win situation for Coca-Cola from a business perspective, as it not only demonstrated that the company is concerned with social welfare but also presented a good platform to promote the newly launched products. Nevertheless, whether public health could actually be improved from it remains a question.

 

Sources:

http://www.cbc.ca/news/business/pepsi-s-natural-sweetener-version-to-be-launched-on-amazon-1.2785555

http://www.cbc.ca/news/health/pepsi-next-aims-to-attract-consumers-wary-of-sugar-1.2587588

Image sources:

http://i2.cdn.turner.com/money/dam/assets/141002092042-pepsi-coke-natural-620xa.jpg

 

 

 

China’s food problems and opportunities

00221917f7601447f88303

The food safety issues have persisted in China for the past decade. Based on my personal experience as well as research results, I think the underlying reason for the prevalent food safety issues in China is its loose monitoring and inspection system of manufactured agricultural goods. While the Chinese government took firm action against multinational food companies that had potential food safety issues, individual farmers who sell their fresh produces on the market on a daily basis seemed to be neglected. Therefore maybe more efforts should be diverted to regulate the latter as well. After all, majority of the ordinary citizens in China are still used to buy the fresh produces sold on the market from the farmers every day.

The article also mentions that China’s increasing demand for more food and better quality food has attracted investments worldwide. Hopefully with more incoming multinational food businesses, the governments’ limits in ensuring food safety could be overcome. More collaboration and communication between food safety administrations and food companies should be established to ensure regulatory compliance of the law.

Also, from another news article on Forbes, the U.S. has recently considered letting China join the negotiations of what would be the world’s largest free trade agreement, the Trans-Pacific Partnership. Engaging in free trade would benefit China economically to a large extent, hence it is essential for China establish high food industry standards to make sure that its notoriety of food safety would not drive trade partners away.

Image and Website Sources:

http://www.forbes.com/sites/jackperkowski/2014/09/25/chinas-growing-food-problemopportunity/

http://usa.chinadaily.com.cn/opinion/attachement/jpg/site1/20140121/00221917f7601447f88303.jpg

 

 

Nestlé’s lack of corporate social responsibility

water-jpg

Corporate social responsibility (CSR) has been a key part of business ethics nowadays. Profit-motivated companies seek to engage in open and fair competition in the free market. Meanwhile, they are trying to promote social welfare through various ways like providing more employment or engaging in charitable deeds.

Nestlé, the world’s largest bottled water company, has been taking millions of litres of fresh water annually from a valley in BC province without paying a penny, since there are no regulations regarding groundwater use in BC. Honestly speaking, this piece of news is mind-blowing.

Water, just like air, is a common resource shared by every resident on the Earth. If local residents have to be charged and metered for water at home, why multinational corporations like Nestlé could extract water freely and gain huge amounts of profits by selling bottled water back ? The very act of Nestlé could well lead to early depletion of water resources in B.C. Who knows? Although the company has been supportive of government efforts in implementing the new Water Sustainability Act and even voluntarily keep records of water quality, all these may well be the superficial works of public relations in an attempt to appease the public. There are obviously more Nestlé could do to improve the situation while maintaining a reasonable profit level.

Image and Website Sources:

http://www.timescolonist.com/news/local/wild-west-of-groundwater-billion-dollar-nestlé-extracting-b-c-s-drinking-water-for-free-1.587568

http://images.glaciermedia.ca/polopoly_fs/1.587567.1404927109!/fileImage/httpImage/image.jpg_gen/derivatives/landscape_563/water-jpg.jpg