Month: October 2012

The big news this week regarded environmental disasters. Starting from an earthquake with a magnitude of 7.7 which occurred on B.C. coast on 27th October, 2012, the next big thing is coming towards NYC: Hurricane Sandy. Although the tsunami which hit Haida Gwaii and Port Edward had a negligible effect on the population, Hurricane Sandy is a different story.

The magnitude of the storm is clearly identified in the article written in bloomberg post; as it depicts Hurricane Sandy as a storm that threatens the NYC with “70-mile-per-hour winds andt…  an 11-foot sea surge.”

In caution to the storm, “The U.S. securities industry canceled equity trading on all markets” on Sunday, October 28th, 2012 and expects this shutdown to “extend through Oct. 30”. This temporary arrest on NYSE and Nasdaq stock market will inevitably have an impact on the economy, whether it is in a micro or macro scale. Hurricane Sandy, as Bloomberg puts it, will directly affect approximately 60 million people occupying southern New Jersey, but the temporary closure of NYSE and Nasdaq stock exchange will indirectly affect the world economy, considering they are one of the biggest stock markets with the largest market capitalization. It would be interesting to see the effect that Sandy has on the stock prices of S&P500 and many other share prices of major companies.

Sources Cited

News, CBC. “Tsunami Heads for Hawaii after Huge B.C. Quake – British Columbia – CBC News.” CBCnews. CBC/Radio Canada, 28 Oct. 2012. Web. 29 Oct. 2012. <http://www.cbc.ca/news/canada/british-columbia/story/2012/10/27/bc-quake-reported.html>.

Mehta, Nina, and Nikolaj Gammeltoft. “U.S. Stock Trading Canceled as New York Girds for Storm.” Bloomberg. N.p., 28 Oct. 2012. Web. 29 Oct. 2012. <http://www.bloomberg.com/news/2012-10-28/nymex-to-close-floor-for-sandy-as-nyse-nasdaq-see-normal-open.html>.

Photo Credits

Foley, Peter. “U.S. Stock Trading Canceled as New York Girds for Storm.” Bloomberg. N.p., 28 Oct. 2012. Web. 29 Oct. 2012. <http://www.bloomberg.com/news/2012-10-28/nymex-to-close-floor-for-sandy-as-nyse-nasdaq-see-normal-open.html>.

Can Celikyilmaz’ Blog in How BP failed on contingency planning has provided me with an insight of how important the reputation of the company really is. John R. Kimberly of CNN defines the negativity on the reputation of BP(British Petrol) as “damage that threatens its very existence.” No matter how good the quality of the oil is, reputation of the company, supported by its leadership and the ability to handle an unexpected situation, occupies a significant portion of determining the consumer’s choice and their loyalty. This statement can be further extrapolated from the information provided in the financial market; BP stock price plummeted from $641.10(Lon:BP) to $417.80 as it approached the end of June in 2010, following the very incident of the oil spill.

Its failure to efficiently coordinate employees in solving the problem and its naivete in treating the incident insignificantly has resulted in a disastrous outcome. As Can states, “BP isn’t suffering just from the leak of oil in the gulf” but also from  the spread of oil into the surrounding areas which causes environmental degradation and a rise in epidemic disease. This “snowballing” effect of the oil spill has additionally contributed to the decline in BP’s reputation.

The following parody depicts the essence of BP’s failing reputation as the leader of oil production:

It is important to recognize the importance of reputation within each companies because such information can be used effectively in predicting the future of the organization.

Sources Cited

Celikyilmaz,Can. “How BP failed on contingency planning“. (2012): n.pag. Web . 08 Oct.2012.<https://blogs.ubc.ca/cancelikyilmaz/2012/10/01/how-bp-failed-on-contingency-planning/>

Kimberly, John R. “How BP Blew Crisis Management 101.” CNN. N.p., 21 June 2010. Web. 08 Oct. 2012. <http://articles.cnn.com/2010-06-21/opinion/kimberly.bp.management.crisis_1_bp-crisis-senior-management?_s=PM:OPINION>.

“BP Plc: LON:BP Quotes & News – Google Finance.” BP Plc: LON:BP Quotes & News – Google Finance. N.p., n.d. Web. 08 Oct. 2012. <http://www.google.ca/finance?q=LON:BP>.

Photo Credit

Macalister, Terry. “BP Shuts Alternative Energy HQ.” The Guardian. Guardian News and Media, 28 June 2009. Web. 08 Oct. 2012. <http://www.guardian.co.uk/business/2009/jun/28/bp-alternative-energy>

Video Credit

UCBComedy. “BP Spills Coffee.” YouTube. YouTube, 09 June 2010. Web. 08 Oct. 2012. <https://www.youtube.com/watch?v=2AAa0gd7ClM>.

Sally Chen’s blog of explaining how Tim Horton’s had come to become an iconic symbol of Canada has prompted me to dive deeply into the business structure of “Timmy Ho’s” .  Consequently, through analysis and examinations of Tim Horton’s structure, values, and its products, I have come to realize the enormous obstacle that Tim Horton’s has to overcome in order to expand its fast-food chains globally: Canada.

The three words that mainly come up when Tim Hortons is mentioned are : Donuts, Hocket, and …. CANADA. Sure, Tim Hortons has great tasting food and positive atmosphere in its stores; however, what differentiates it from all the other restaurants, as Sally puts it, is its ” tradition, history, and hockey roots [that] provide their customers with a sense of national identity and pride.” Ironically, this unique trait of Timmy Ho’s is the main reason that it faces difficulties in expanding its chains overseas.

This is a commercial that Tim Horton’s released in the beginning of 2012:

As can be seen from the video, Tim Horton’s continual support and value towards its national heritage and maintaining its main target as Canadians would prove to be difficult for it to expand globally like its main competitors, Mcdonalds and Burger King. Figuring out effective ways to increase its current 4000+ stores without losing loyal customers while gaining interests from new ones should be Tim Horton’s new future prospect if it plans to expand its chains internationally.

Source Cited:

Chen, Sally. Tim Hortons:” A Canadian Icon” n. pag. Web. 7 Oct. 2012. https://blogs.ubc.ca/sallychen/.

“Tim Hortons.” Wikipedia. Wikimedia Foundation, 10 Aug. 2012. Web. 08 Oct. 2012. <http://en.wikipedia.org/wiki/Tim_Hortons>.

Photo Credits

“GpsPasSion Forums.” GpsPasSion Forums. N.p., n.d. Web. 08 Oct. 2012. <http://www.gpspassion.com/forumsen/pop_printer_friendly.asp?TOPIC_ID=66445>.

Video Credits

Hypergirl74. “Tim Hortons 2012 Commercial – Feat. Sidney Crosby.” YouTube. YouTube, 25 Jan. 2012. Web. 08 Oct. 2012. <https://www.youtube.com/watch?v=a7fKuOMo2r4>.