Category: 486G

A while back in my 486G class, we have talked about how MacDonald’s does not only sell burgers but their ‘true business’ is real estate. This shocked me at first because I thought if they don’t sell burgers and fries? then WHAT do they sell? It only made sense that fast food may be too volatile of a business but real estate in the long term creates more insurance because they are tangible assets which will still be there even if no customers come.

Walking along a blockbuster one night after dinner, I’ve noticed that not many people are renting movies anymore. Given the location of where it is located, it is the easiest spot for consumers to drop by and to pick up a movie. Then I remembered the 486g lecture when we discussed about blockbusters. Although very few people rent from blockbusters nowadays due to illegal online downloading and the easy purchases from itunes, blockbusters still has its land. Similarly to Mcdonald’s, Blockbusters has real estate as its backbone. I feel that Blockbusters still has some trump cards which haven’t been played, given the huge amounts of assets (land) they have huge potentials in making a comeback, given that the government actively strengthens anti-piracy laws and arresting people who are downloading movies.

Being part of a Professional Business Fraternity (Alpha Kappa Psi), I am privileged to have the opportunity to visit Raymond James, a brokerage firm in Vancouver Downtown, as a representative for my fraternity’s investment club I carried a long a learning attitude when I went to visit them. Not surprised, I did in fact learn a lot from Peter who was a Financial Advisor in Raymond James. He provided us with insights on how the firm works, the breakdown on how deals get through and the  sectors to be aware of in the next coming months.

I would like to direct your attention though, to stocks which many financial advisors would agree that its a great invesment, a stock which rarely fails you, a stock not many people would like to buy, tobacco. Linking this to my earlier blog entry, tobacco stocks, many consider them to be ‘unethical‘ stocks which is the sole reason why an average investor will not be willing to invest money into these companies. To invest in them means that you are actively supporting them, by giving them money, people are allowing them power to expand and to harm more people through their marketing strategies which is targeted towards young people.

As a potential investor I would strongly oppose the idea of investing in something which brings negative impact to health, if you are an investor, what would you do?

The carbon footprint, much talked about in conferences, classrooms, news and work. I have finally come to a decision to take the carbon footprint test to see how much damage I’m contributing towards the planet we share. The results?… a humble 2.97 tonnes of CO2 per year, which is close in to living a low-carbon lifestyle. My breakdowns were:

1. Daily Commute (1.6%): Being the least carbon percentage is not a surprise to me, personally I like to walk everywhere, on sunny days I enjoy long-boarding around campus enjoying the scenic that UBC has. Also, because I live on residence I don’t really use the car hence a low carbon emission.

2. Long Distance Travel (27.5%): Being an international student, carbon emissions from planes are inevitable however, an alternative may be going back once but for a longer period instead of flying back every holiday.

3.  Food (65.3%): Most of my carbon footprint is made up from the food I consume, having to eat meat every meal it is very unlikely for me to change that habit however, there are lots to be done. Starting to buy from local farmers and organic food would help. After all, it all accumulates.

4. Shelter (5.7%): Having to rent a relatively new place behind the village has been very exciting for me, knowing that it saves a lot of energy (hence low emission) also adds to that as I am the responsible one to pay the utilities. Having energy star, double panelled windows and relatively well insulated house would definitely help my wallet next year.

Overall, I’m feeling quite good about my current footprint however, to help generations to come I will reduce it further by doing the small things such as turning off the lights, carpooling, and buying more from local farms and grocery stores GIVEN that I don’t have to give up on the MEAT!

As the playoffs for NHL and NBA have just started, this would mean two months of intense debate, argument and cheers for our supported teams. Directly relating to our workplace, this would mean that workers will be stopping by corridors for a five minute game time chat, more coffee breaks and toilet breaks just to keep track on the score. In the article “Stanley Cup playoffs boost morale, productivity at work: Survey” it describes that playoffs not only doesn’t bring negative impact on worker’s productivity but boosts morale and productivity at work.

Since the recent Olympic Winter Games Hockey victories, Canadians are still charged with the hype and enthusiasm. According to the survey conducted by an individual research firm, all the endless hockey talk may prove to be useful in helping to boost productivity and morale as workers feel more united as a workforce. Interestingly, it may not be a bad way to bond and stick with your workers, after all its an effective method plus its FREE (your boss is paying for it…)

Toyota have filed a massiv recall of 2.3 million vehicles alone for sticking gas pedals and another 0.6 million on potential corrosion in the spare tire carrier cable. Toyota have been greatly criticized especially when their entire company is built upon their quality, reliability and durability of its vehicles. In the article ‘A little perspective on Toyota’s Recall‘ from the Globe and Mail, it discusses the various points why Toyota have filed such a huge recall on its vehicles. Although it is not uncommon to have recalls in the automotive industry however, Toyota have tried to ignore it by standing still to consumer’s complaint about the Toyota vehicles they have. In the end Toyota suffers as their sales drop by a staggering 10%.

A little bit on the upside is that, given that Toyota is such a humble brand in keeping its quality, durability and reliability. Any new cars would be stronger, better, more reliable than ever. Given that it has the hybrid synergy system, many consumers I believe will still pursue a car which makes sense economically.

The new Iphone OS4 is going to continue the huge success since the launch of the first Iphone, users have downloaded well over 4 billion apps, from apps which monitors your sleeping patterns to your online shopping apps. When I found out that my friend’s Iphone has a Nike ID app I quickly looked into it and realized its tremendous potential in future sales.

The video shows how shopping can be done so remotely, on the screen of your iphone, truly a new sensation. This app does not only show off its coolness and expresses the convenience one would have from shopping online, but raises a question of ‘How firms sell their products nowadays?’ Traditionally, you would have to go to a shop, choose your favourite products and then buy pay at the cashier however, with the advancements of technology the traditional business models do not apply anymore. Businesses are able to cut out entire platforms such as retailers and distributors through the use of the ‘Direct Business Model’, a famous example include Dell which is a lean machine utilizing only the necessary to maximize returns. This method allows customization which increases the value the consumer has for the product.  Hence  it will also benefit the firm in other terms such as brand loyalty and  reputation.

I feel that all companies that sells a material product should look into these channels as younger generations (myself included) are more willing and ‘able’ to utilize these services. On the offside though, some products are not suited for this method for example, product which are not designed for customization such as P&G’s detergents. Furthermore, some people generally prefer shopping in malls as a mean to spend time with friends, families and lovers.

After a quick brainstorm or how many different ways we could get in touch, the social networking phenomenon is continuing to expand. Fifteen years ago, Facebook, Twitter and Skype would not have existed because computers and the internet is still being developed, millionaires would not be happening overnight as Mark Zuckerberg makes his mark on the social networking world inventing world’s most used social networking site, Facebook.

Other wasting our free time stalking people on Facebook, chatting on MSN and calling friends on Skype, what other uses does it?

Commercially, it holds tremendous marketing value as companies can easily use the platform already well established to tap into our personal life, advertising accordingly to our personal needs. In addition Google is planning to add on another application called the ‘Social Search’. This application allows us to search up on what our friend’s have blogged, commented on or even photos of them in the past. It is potentially very useful if you want to know about your friend’s opinion on something, the option of who to connect with and transparency of your profile will help filter your personal profile and lets you control the privacy you get. This application will increase the number of users on the Google Chrome however, some people may feel uncomfortable using it especially when your boss could easily search up your name and find out a little bit more about you.

Neo faces the decision of taking the blue pill or the red pill, as a result he has become the ‘saviour’. This post is about decision-making. But… back to reality…

In our 486G today class we have discussed the various traits and characteristic a person should possess in order to succeed in enterprising their own business, from having a rich set of personal skills such as timing, organizations skills to grasping the opportunity when the time comes. Most importantly, entrepreneurs should be able to make quick and effective decisions with the information given at hand. If a person has all of those traits than I would say he or she is half way there in becoming a successful business man/ woman, however, there is a huge price tag when making big decisions and those are called risks and opportunity cost.

On top of that, Mark Whinney, one of our guest speakers for the class have highlighted specifically to us that its not only about the personal skills and such, which will help us to get to the top but also the timing and the ability to see opportunities when the economy is not blooming or when business outlooks seem gloomy. This brings us to the second half of the ‘know-hows’ when it comes to becoming a successful entrepreneur. To have a ever-changing set of methods in dealing with different problems, to have the adaptive ability to cope with various situations and to have the guts to make BIG decisions.

After reading the “Fast Fashion Lessons” article and attending the two lectures given by our awesome guest prof, Mahesh Nagarajan. I agree that fashion nowadays must be highly flexible and adaptable, whilst having the traditional quality brands on the higher-end, the huge portion of the young working class would much likely prefer fashion which is trendy and affordable. For this reason it gives rise to fashionable brands like H&M, The Benettons and Zara to penetrate the market with designs changing on a weekly basis.

It is no surprise that Zara is able to deliver the trendiness products, a simple look into their supply chain shows that instead of traditional fashion supply chains which may take weeks to make a prototype, it will take hours for Zara to do it. This is because of their flat hierarchy allows conversations to make quick decisions, store managers are actively keeping count on inventory (by the hour) to provide real time needs and adjustments from their manufacturers and only the automated processes are kept local, all other labour intensive jobs are outsourced to further decrease costs. Also with Zara’s humble marketing strategies it is no wonder it has stepped up in becoming the hottest brands in town; a simple supply and demand equation.

To some it is fair to say, a successful business is one who generates the most profits, most returns to shareholders and employees hence everyone is happy. But the question is, is it really that simple?

Ethics

The word is ethics, as summer is coming near, many of us are actively finding internships and summer jobs however, it is easy to fall into the trap of unethical business practices. The article “The Unpaid Intern, Legal or Not”  highlights just a small area on how businesses can be unethical. “Employers increasingly want experience for entry-level jobs, and many students see the only way to get that is through unpaid internships.” It may seem like a win-win situation however, students often find themselves cleaning toilets or wiping windows instead of the educational experience they are anticipating. Consequently, even if they file a complaint or lawsuit it may be unsuccessful as they are not protected by the “employment discrimination laws”.

Furthermore, conflicting interests in the general society gives rise to the issue of ethics.
Is it ethical to manipulate financial and accounting information? … but this will boost the attractiveness of the firm…
Is it ethical to choose your employees based on age, race, sex, attractiveness and weight? … but this will create a more unified workforce…
Is it ethical to produce with no regards to the environment? … but this will yield greatest profits…
Is it ethical to copy other people’s ideas? … simply just supplying what people demands…

It is common that firms faces conflicting interests, for example firms cannot maximize profits from going green as much of its budget is spent on sustainable developments.

Although this may be a long battle in determining the ‘right’ practice, firms should aim to take responsibility for the impact of their activities on “customers, suppliers, employees, shareholders, communities and other stakeholders, as well as the environment. This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organizations voluntarily taking further steps to improve the quality of life for employees and their families as well as for the local community and society at large.”