Kevin Li Blog

Being a social entrepreneur by definition refers to an individual who creates opportunities to individuals who are not well off by providing the resources required to start a business or allowing the individual to obtain what they need to maintain a good life style while securing their financial support. The Arc initiative is a program provided by the Sauder School of Business training talented individuals the arts running a success business and passing on their knowledge and insight to other members of societies in poorer regions such as Africa.

The UN being as large as it is, the most it would be able to do is provide donations and medical/health care products to help. But their ability to pinpoint issues for individuals may be limited. The limitations of the UN is that they can only view things from a macro point of view, being able to see the small picture is just as important as the big one. Being able to provide support to an individual family will help improve them in terms of economic stability, multiple this by the millions of families and the overall result would be a better economic situation overall.

Having the Arc and social entrepreneurs is a method that can be used to reach out to these individuals. The students trained from the Arc will have the insight as knowledge in how to start up and maintain a business which will be passed on to the locals. The social entrepreneurs can help provide the financial resources required to start.

In my opinion, I think that both the Arc and Social entrepreneurs are equally as important, both of these parties are required for the successes in starting a business. While the social entrepreneur will provide the financial back bone, unskilled planning and poor business decisions will result in the loss of the initial amount leaving people back at square one. This is where the idea of business strategy comes in in the form of knowledge from the Arc program where knowledge on business management will be introduced and followed by. Good strategy and resources are the key to a business, people may have different cultures and values but that fact cannot be changed no matter the circumstances.

https://blogs.ubc.ca/lpong/2014/10/05/use-reusable-bags-instead/

The article in question here is a commentary on a policy in California where they implemented a policy banning single use plastic bags. Her main argument is that although this is heavily beneficial to the environment it can cause harm to plastic bag production firms leading to increased unemployment as a result. She then commented on how there will be difficulty in reallocating labor to reusable plastic bags as training may require time and continues her argument on how the government should aim to minimize unemployment while being as environmentally friendly as possible.

I agree on the fact that sustaining the environment is extremely important, but I also believe that there are alternative methods in which this idea can be pursued that will not lead to the eventual unemployment as stated by the blog. With today’s recycling technology, plastic bags can be recycled with ease. My personal opinion would be to not implement the ban but instead enforce policies on plastic recycling providing an incentive. This way, unemployment can be avoided and there can be more employment in the recycling industry instead. In addition to plastic recycling policies, other policies that aim at the usage of reusable bags can also be implemented so both one time bag users and reusable both have a benefit. Although of course you cannot deny that some people may choose to not follow these policies at all.

http://www.forbes.com/sites/peterdetwiler/2014/02/07/ikeas-aggressive-approach-to-sustainability-creates-enormous-business-opportunities/

This article looks at the approaches IKEA takes to approach sustainability. The article focuses on IKEA’s methods to improve energy efficiency and decrease carbon emissions by six or seven fold. the general idea lies in sustaining their own energy resources as a means of purchasing it, though doing so may increase costs IKEA has always looked at these situations from a long run point of view. As of now the amount of renewable energy sources IKEA owns is on par with some energy companies. with over 157 wind turbines and over 500,000 solar panels. As of now over 90% of their locations are being powered by such means, even before this they have been able to save over $53 million dollars through friendly light bulbs and by other means.

What interested me in this article were the though processes in these decisions and the importance of large multinational companies being sustainable. Being able to obtain these numbers requires extreme amounts of investment with a total over $150 million dollars. There is also a degree of risk where malfunctions can have a negative effect on performance and other factors. The most interesting part is the desire for a good image, it was stated by the sustainability manager that by doing what they did, it helps establish good reputation and good press reviews which ultimately result in better brand image. IKEA may like to look at the long run and be more sustainable but its possible that underneath all that, the better brand image will be used to attract more consumers.

My personal opinion on what IKEA has done is these situations of global climate change is very admirable. Yes, costs will definitely increase if something of such a scale were to be pulled off, but I also believe that brand image is the key to a firms success. Putting the money aside, in this global change in climate, I think it is very important for other firms to make use of their resources and follow a similar route which IKEA has taken, sustainability in the long run is just as if not more important than the profits itself. Research and development in the area of sustainability is a key area where all industries should take a stand and attempt to implement it.

This article looks at the effect of the Esports industry in South Korea and looks at the way in which is has shaped Korean culture and the impacts it carries along with it. The article mentions how South Korea has been the center of video games since early 2000. What interested me in this article was how the gaming industry has expanded  during the last decade. It was supported by how nowadays, many individuals would spend their time with loved ones or friends in gaming cafes and other sorts and seek to play with/against one another as a form of bonding. It also mentions which big games helped the industry growth. Such an example would be Starcraft and Starcraft 2 created by Blizzard games which revolutionized the Korean gaming industry.Tournaments held in big spaces packed to the brim with fans, these kind of events lead to big money being earned. Another example would be the recent finals for the League of Legends world championships where 40,000 fans sat in the 2002 world cup soccer stadium in Seoul watching the two final teams battle against each other.

Looking at the economic side of this there are multiple benefits in doing so. Video games has gotten so big to an extent where large multinational companies such as Samsung and Razer are sponsoring teams to take part in this. Being a professional video game player in itself can be considered a profession at this day and age as players can be hired in which they are paid via the sponsorship money and prize money. League of legends is one of the highest profit earning games in the world where in 2013 for example it has raised a total of $624 million dollars, with a total of over 27 million players registered to date, this particular game has been a huge source of income.

The main point is that the Esports industry is continuing to grow becoming an important part of our daily lives. Economically, this industry offers employment for various jobs demanding a wide range of skills allowing economic growth. This once again can be represented by the South Korea’s transformation in the last decade since the industry began. This has allowed more openings for potential business that intend to link their products to this popular industry giving people more room to innovate new products that can potentially benefit the Esport society of the world. There will be increased competition and more product innovation  and technological advances in improving this industry to help players that shall continue to expand on video games in the future

http://www.hngn.com/articles/46110/20141016/indiegogo-campaign-started-for-axent-wears-cat-ear-headphones.htm

This article introduces  a new headphone product that is soon to be released for sale in April 2015. This article introduces the idea of innovation and entrepreneurship in the creation of the product. Apart from simply being a simple pair of headphones, the product includes a unique design being imbedded with animal features. In this context, there are cat ear like features on the head rest that act as a speaker. This feature gives the product a unique image being one of the first headphones to possess both a headphone and speaker function.

What got me interested into this article apart from the product itself are the processes that took place in the founding and development of the ideas of this product. The company was formed by two UC Berkley alumni  The  ideas were formed  initially by the founders and ideas were taken from contributed from their Facebook page. What I like about what they did was the way they managed was how the target audience was able to give feedback so the quality of the product can be ensured. Another fact about this project is the way it was funded. The founders offered a jump start page where people can offer a donation for the product. Initially the target value was $250,000, right now they have a total of over 2 million. This start up value will help open up more marketing capabilities and more methods in which they can improve the over all product.

Not only has this product been developed through effective use of local media to find its target audience and use their suggestions to improve the final product, but what also got me interested was the way in which the funds were raised and the amount of interaction between producer and consumers.

What I personally like about what this firm is doing is the way they manipulate everyday media to establish a connection between producer and consumers. With social media expanding, connecting with one firm’s target audience becomes more similar. This level of interaction helps firms improve their product based on consumer demand that allows them to refine the product guaranteeing its ability to sell when it gets released to the public. Both sides being able to obtain opinions as easily becomes increasingly convenient making the production process even more effective.

http://sipsoda.blogspot.ca/2014/05/transformative-change-create-something.html

This article involves the introduction of a new beverage product to the soft drinks industry called SIP soda. This article focuses on the diabetic elements of current drinks and that it is not something we should pursue for personal health and nutrition. The idea of SIP soda is a soft drink that is actually healthy to drink due to its composition of natural flavors along with mineral water as a base. As quoted by the founder this product is a “vehicle for health”.

What got me interested in this is the innovation and entrepreneurship behind the product. My personal opinion on businesses is that they create products to maximize their profits with customer satisfaction. The fact that the founder of the company created the good purely for the sake and health of the consumer is truly inspiring and because its healthy, she was able to link this product to fitness groups, charities and other business organizations. My other interest in this is the product itself. Although this product  has to compete with other sodas in the soft drink industry, it has no real competitors as the product is unique and there are no other firms that currently provide it. The benefit of this product is that it is the first of its kind meaning it can create a distinct image in the consumers mind as the first ever healthy soda. This is an advantage for SIP soda in the long run as potential healthy soda producers enter the market. Since SIP was the first one, others might find it hard to over take them in turns of their current popularity causing consumers to turn away from them. This gives SIP soda a competitive advantage in the long run

http://thetyee.ca/Opinion/2014/07/26/Tsilhqotin-With-Gloves/

What happens when a indigenous population sitting on a heap of gold crosses a multinational organization that attempts to do whatever it takes to extract it? The result is what happens in Canada in the Nemiah valley in the region known as the Tsilhoqt’in region. The indigenous populations that live there have been known for its protection of the natural environment in which it depends on for the sake of survival resulting in multiple conflicts. An example would be in the late 1800s where the construction of a road leading to the Cariboo Goldfields was stopped by the murder of several road workers. The level of social unrest eventually led to the road not being developed in the end.

A deal was set when a declaration was signed in 1989 which basically said that no form of construction or extraction of minerals can take place on any major lakes in the area. This rule was reinforced later on when huge deposits of copper and gold were discovered near a fish lake, it was also announced that companies want to completely destroy the lake in order to obtain the minerals. After aggressive protests, the Canadian high court decided that from that point on, if any organization wants to perform any construction of any kind on their land they will need legal consent from the Tsilhoqt’in people.

The fact that the copper and gold can’t be mined has no negative impact on the current market for both those metals; however what they lose are the potential benefits they may receive if that wasn’t the case. The firms that are heavily impacted the most by this may be jewelry and metal work firms where suppliers may have difficulties in providing demanded quantity of resources. This can potentially affects a firm’s output hence its ability to compete with other competitions.

Both gold hand copper are highly valued in the global market for function and other criteria. Gold in particular is pretty rare in terms of being to excavate in large quantities including the processes required to obtain it. Many organizations need gold leading to its high demand. From an economics point of view, the decrease in supply will lead to an increase in price and costs. There may be a sudden increase in supply of gold if the fish lake were to be exploited which may have the effect of alleviating pressures on prices which multiple firms can benefit from.

Overall, the restriction on both these metals may have the most significant impact on the local industry which do not rely on foreign imports as heavily. In the assumption that the gold were to be obtained and passed onto them, it will lead to increased output which can be vital in terms of their ability to compete with foreign competition.

http://gadgets.ndtv.com/mobiles/news/60000-redmi-1s-phones-go-out-of-stock-in-139-seconds-says-xiaomi-600044

Xiaomi is a phone producing firm that produces primarily smart phones. The article refers to their sales in India where they rack up some amazing numbers from flash sales including selling 40,000 phones in a mere 4.5 seconds.

Their success in the form of their sales can be classified into two separate business strategies Porters generic strategies including cost leadership and focus strategy. For the functions the Xiaomi phone has, its performance/specs and visuals are similar to iphones. Using the latest iphone 6 (6000HKD) as an example, the Xiaomi sells for almost half its price(~3000HKD) for nearly the same features which is one of its attractive qualities. Comparable to other major phone companies such as Samsung and LG, Xiaomi’s low price serves as a great alternative to a expensive luxury smart phone which will be one of the main reasoning behinds its successes in India as stated in the article.

As for focus strategy,unlike major phone companies, Xiaomi is only purely aimed at the Asian market. This is supported by the fact that apart from online ordering, Xiaomi is only available in Taiwan, Hong Kong and mainland China. Since the market is so focused within a specific region, it means it will be easier for developers to receive better feedback from the target market consumers and be able to make changes based on that, making it more appealing for them.

My views on this is that there are many negatives of the method in which they are using. The negatives of their cost leadership strategy is that because their price is so much lower. Their revenue gain per unit sold will be less compared to other phone companies. Despite this, the quantities they are able to sell within a short span of time may be able to compensate for this. Another disadvantage of this lies in the fact is that they only sell within Asian markets. If xiaomi were to expand its territories and sell in western countries, the low cost may appeal to more consumers hence increasing revenues as a whole.

As for the advantages, the opposite side of the coin for focusing on an Asian market is that they will be able to receive better quality advice and suggestions from the target market so developers will know what the general populous wants. This way they will be able to sell more in their target market.

http://www.businessweek.com/articles/2014-10-02/7-eleven-sells-cold-pressed-juice-and-other-healthy-foods-in-la

Competition between firms have never been more intense than now, today even convenient stores are trying to rise up to the challenge trying to obtain any advantage over other convenient store brands. Living through a busy lifestyle simply means that personal hygiene and nutrition is more important than ever, 711 in Los Angeles decided to join in the fray and began to provide healthier foods including salad, fresh fruits and sandwiches in addition to its current selection of goods. As of now, over 100 711 stores have begun to sell these products in the ultimate goal of healthy eating.

711’s improvements in product variety is an example of a business strategy specifically a focus strategy in product differentiation. As a pose to selling slurpees, coffee and other goods, 711 is aims their new products at consumers who wish to pursue a healthy eating style diversifying the amount of consumer markets they can satisfy. Even though 711 has its successes in producing and promoting healthy eating, it appears that slurpees are more attractive than the new products leaving a taste of bitterness in its owners.

My view on this matter is that 711 were responding to the demands of the consumer. Through the 711 app, introduction of healthy food was a demand often put forward leading to this eventuality. However, other convenient stores and super markets already provide these kind of products already for a similar price. So i would say that 711 where slow in this instance to finally achieving this stage in the market. However as 711 is so easy to find, they may have the ability to sell more healthy foods as a while compared to its current competition.

Is that really beef in your lasagna?

The context of the blog to which I am responding to is a situation in which a super store otherwise known as Aldi has been lying to customers in regards to the composition of the food product. Where instead of pure beef, there is also an addition of horse meat with the ratio ranging from 30-100%. Cecilia specifically commented on the lasagna. It was also mentioned that the Aldi refused to accept its undoings and push all the blames to its supplier Comigel into supplying horse meat without their consent. In addition to the dishonesty Aldi and Comigel has presented to its consumers, there are other points in which I would like to put forward.

As far as hygiene issues go, there have not been any cases in which horse meat has any negative health effects. And potentially the reasoning behind his act may root from a desire to reduce costs or maximize profits.

The biggest breach of ethics performed in the whole scandal is the dishonesty and lack of responsibility. The suppliers from France and Ireland were the ones that chose to supply horse meat instead of beef., they would think that as long as the label on the final product labels “pure beef” they would be able to rid of the problems. But now that the truth has been revealed, not only has the reputation of the super store been affected but the trust between retailer and supplier. This can result in trust issues in future which can affect transactions. This also has a negative impact on the trust of the consumer for the brand. With this information disclosed, consumers may find it hard again to purchase the same good when there is still the distinct possibility that they are not buying what they truly think they are buying. This level of dishonesty is sure to give current consumers an incentive to try other goods. The fact that some companies already knew of this scandal and chose to keep quiet about is a deceptive to retailers and consumers. The level of trust has been diminished so much that it was stated in the article that “this does not affect school catering” as an attempt to maintain loyalty.

Finally there is deception. Keeping company secrets and refusing to accept responsibility is more of a cowardly act which ones again all comes down to reputation as a whole.

My personal opinion on this matter is that there was a certain level of acceptance of the events that happened, mainly because as far as hygiene goes the food was still safe to consumer and would not provide any harmful affect. However there is more wrong than right, deceit and dishonesty is severely harmful in the loyalty and trust in the company which can affect potential sales in the future. The fact that the company knew and chose to keep quiet about it only adds insult to injury.