Nike runs off employees, not just shoes

Nike, Inc: a powerful, innovative, dominant company on the leading edge of sportstechnology. How does it manage to stay in this position year after year? In a word: culture. All employees believe in the company and its values, and believe that there is something in Nike that needs to be protected; a secret of success. What is not so widely realized is that it is the employees themselves that are the secret to success. Most employees at Nike stay with the company for decades, building upon each other and working together. Stories are told about the founders and how they created this giant from nothing, and employees revere their employers. They are a part of something great, and know it. The company uses its history to create the future; from the past, they created the eleven maxims that guide the

company, principles such as “It is our nature to innovate” and “We are on the offense — always.” Nike conducts employee surveys to keep in touch with its 40,000+ employees and ensure that they are still in touch with the principles as they were when they were hired. With this level of commitment to the Nike culture, there is no doubt that Nike will remain a huge player for years to come.

Links: http://www.corporateculturepros.com/2013/06/strong-organizational-culture-how-nike-drives-innovation/

http://nikeinc.com/pages/history-heritage

Re: Scotiabank’s new hockey-themed credit cards appeal to the true blue Canadian in each of us

https://blogs.ubc.ca/kristinab/2013/09/29/scotiabanks-new-hockey-themed-credit-cards/

Scotiabank’s marketing strategy is, as expressed in the referenced post, a solid plan for increasing the interest of consumers. The option of being able to choose a hockey team to support on your credit card will entice many Canadians to start using Scotiabank. While Capital One bank already has a customizable credit card option, Scotiabank has gone a step further to align themselves with Canadian values. Other banks may try to copy this idea, perhaps by representing other sports leagues, but as Scotiabank was the first to advertise this scheme, it has the first in market advantage. As the official bank of the NHL, Scotiabank also has an opportunity to grow in the United States, where it currently only serves corporations and not retail or consumer deposit. Combine this fact with the fact that Scotiabank is the third largest bank in Canada as well as being the world’s seventh strongest bank (2013, Bloomberg Markets), the opportunity for American growth is astounding. This opportunity is grounded in this new marketing strategy, and could launch Scotiabank to be a worldwide leader in banking.

Links:

http://www.gbm.scotiabank.com/AboutUs/AB_Awards_Rankings.htm

http://www.scotiabank.com/global/en/0,,6183,00.html

 

Re: Tim Horton’s vows faster service to fend off rivals

https://blogs.ubc.ca/melodylin/2013/10/07/tim-hortons-vows-faster-service-to-fend-off-rivals/

It is stated in this post that Tim Horton’s can only continue to be a leader in the fast food market if it can cut down on wait times both at drive-throughs and in restaurant. I believe this to be too general of a statement when considering the Canadian icon’s reputation. The only reason the lines are so long is because people are willing to wait for their food, showing that the quality is worth the wait. While it is true that the threat of substitutes is increasing, Timmy’s has a loyal customer base that should keep the business a leader in this industry. It was said that the company offers too much variety of products, while at the same time saying “stand-out” items need to be introduced. This is slightly contradictory; why waste resources on a whole new product rather than simply become more efficient at producing existing ones? Tim Horton’s has become a Canadian classic, and while there may be areas to improve on, I do not think the company will be going anywhere anytime soon.

Canadian Ignorance

http://www.chamber.ca/media/blog/131108-Western-Canadas-Tide-Is-Lifting-Boats-Across-the-Country/

The idea of “out of province, out of mind” presented in this blog about the impact of Western Canada’s oil and gas industry is a fair statement. Often, other provinces do not think about how they are being influenced by the West, and even resent the prosperity that oil and gas has given to the western provinces. However, I believe the door swings both ways; the western provinces often do not realize the impact the East has on them. Eastern Canada has several industry such as fishing and the automotive industry that bring wealth into the country, where it is redistributed across the nation. It is also stated in the referenced post that people are more aware of things happening in America than on the other side of their own nation; this too, is true. I believe this is because America has large projects that could have a larger influence directly, rather than a smaller Canadian change that may have a mediocre effect. The ignorance of some provinces does create problems, however. This ignorance of the fact that the oil industry helps eastern provinces creates dissonance within the country as the East resents the West’s prosperity.

Photo: http://homeiswheretheenergyis.wordpress.com/2011/11/29/canadians-eyeing-non-u-s-oil-negotiations/

A new method for cleaning

Method's methods

Method is an all natural, eco-friendly cleaning product company that has successfully marketed itself to being one of the largest cleaning product producers in the world. It began by positioning itself as a natural alternative to harsh chemical cleaners, raising awareness to environmental issues and providing a practical solution. As the market shifts towards more sustainable and environmentally aware companies, Method finds itself in the profitable position of its consumer base expanding. With new product design to be more appealing to the aesthetic customer, and new packaging made out of recovered “ocean plastic,” Method has found its niche as a sleek, stylish brand with environmentally friendly products. In 2007, Method was certified as a B Corp company, which is the equivalent to a Fair Trade certification to coffee. This is something that can be added to marketing to increase sales. In 2012, Method joined forces with Ecover, creating the largest green cleaning company in the world. This means that Method can use Ecovers factories in Europe, saving on shipping from America, they can sell in more countries, and can springboard off Ecovers already massive brand name. This partnership is extremely profitable, and will only increase the consumer base for the already well established Method.

Links:   http://methodhome.com/methodology/humanifesto/

http://methodhome.com/methodology/our-story/we-are/

Kellogg’s Commitment to Social Responsibility

 

First off, what is social responsibility? It is commonly defined as “an ethical theory that any entity has an obligation to act to benefit society at large.” At Kellogg, work is being done to help individuals directly as well as the world at large. They aim to give over one billion snacks and breakfasts to families in need by 2016, hoping to help reduce world hunger. As a member of the Consumer Goods Forum (CGF), they are a part of a pledge to have zero net deforestation by 2020, meaning that for every tree cut down, another is planted. Their commitment to the global community starts with their supply chain, which is free of forced labour and all employees are paid at least minimum wage. Goals set by Kellogg include reducing energy and water use and greenhouse gas gas emissions by 15-20% from 2005 to 2015, and decrease wastes sent to the landfill by 20%. This commitment to the global community is an essential component of sustainability. Imagine a world in 200 years if no companies were willing to be sustainable, and ask yourself if you’re okay with your grandchildren living there.

 

http://crr.kelloggcompany.com/en_US/corporate-responsibility/environment/sustainable-packaging.html

http://crr.kelloggcompany.com/en_US/corporate-responsibility/hunger-relief/case-study-from-food-waste-to-food-rescue.html

The ads are coming to Instagram

The ads are due to arrive on Instagram, but they’re arriving in style. Instagram is planning to begin slowly, in one country, with select brands and one format. The photo sharing app says that it hopes to make the Instagram experience more enjoyable through the use of stylish, beautiful advertisements meant to capture the viewer’s eye, not pester and alienate users. The ads can be hidden if the user desires, although since the early opportunities for advertising are only given to brands and companies that are already a part of the Instagram community it is unlikely that they will be hidden. The relationships soon to be formed between the advertising brands and Instagram is sure to be beneficial for both partners. Instagram is generating revenue and the companies are getting the opportunity to broaden their customer base and reach a new segment of the consumer market. The companies can work to solidify customer relationships through these ads and increase sales. This relationship between Instagram and the advertisers is a mutually beneficial business partnership, in which Instagram has opened a new revenue stream and the brands have the opportunity to open new channels to form new relationships with new customer segments.

Links:

http://marketingland.com/instagram-seeks-to-learn-from-facebooks-ad-missteps-58433

http://www.pcworld.com/article/2052320/twitter-appears-to-have-dodged-facebooks-mobile-problem.html

The graveyard shift is back from the dead

In the past, outsourcing to Asia was an easy way to save costs. Employees were willing to work more hours for less money; with an abundance of cheap labour, production was on the rise, especially after night shifts were phased out in America. Now, Asian labour is becoming more of a headache than an asset. Tens of thousands of Korean auto workers went on strike in 2012, causing major disruptions in production and a 30% decrease in exports to North America and domestic sales for Hyundai, Kia and GM Korea. The Korean Metal Workers Union eventually settled a deal that entitled the auto workers to pay raises and the promise to phase out the night shift. This massive change in the Asian workforce comes simultaneously with American auto companies finding their sales finally rebounding. Since the global recession, GM and others shut down factories and cut back on production hours. This rebound period is forcing these companies to increase production hours to keep up with the new demand; as the night shift leaves Asia, it arrives back in America. Many American workers are realizing that it’s better to work the night shift than not work at all, and now Asian auto workers find their hours being worked by American people. The American graveyard shift is back from the dead, and outsourced car companies are coming back.

 

http://www.economist.com/node/21562964

http://www.wsws.org/en/articles/2012/10/kore-o30.html

Westjet’s New Way

Since the company’s first flight in 1996, Westjet had been adhered to the single fleet strategy, using only Boeing 737s for their flights. For a long time, this was considered the most cost efficient way to run the company, as it saved on maintenance and staff training. Since the planes were the same, mechanical parts were easy to have on hand, and mechanics pilots were very familiar with the aircraft. However, problems began to arise when Westjet expanded their flight plans out of western Canada. The 737 was usually overbooked on routes such as Calgary-Hawaii and underbooked on routes like Toronto-Ottawa. Prices had to be raised on underbooked flights to make up for lack of passengers, and other customers looked to different companies when they could not get a Westjet flight to popular tourist destinations. In 2012, the company moved away from the single fleet strategy and launched a fleet of smaller Bombardier turbo prop planes for short domestic flights. This way, they could optimize flight capacity, as well as cut down on prices as the smaller planes can land in different airports and sacrifice less landing fees. Westjet is also looking to launch a fleet of larger planes like the Boeing 767 in the near future for long range flights, which means Westjet can expand further into Asia and Europe.

http://www.theglobeandmail.com/globe-investor/westjet-plan-a-new-threat-to-air-canada/article1358800/

http://business.financialpost.com/2013/08/29/westjet-airlines-ltd-pens-deal-to-buy-65-of-boeings-new-737-max-planes/

The Battle of Ethics and Profit

Over the years, many companies have fallen victim to a new trend: compromising ethics in order to remain profitable. In the 2011 National Business Ethics Survey conducted by the Ethics Resource Center, it was found that “ethics cultures are eroding and employees’ perceptions of their leaders’ ethics are slipping. Additionally, pressure from employers to compromise standards is at an all-time high and retaliation has reached an alarming rate.” This means that while the employees may have a desire to stick with their moral code, the employers are trying to cut corners, and it is being noticed. In an attempt to curb this trend, an entire industry has developed; there are now companies that exist solely for helping other companies write and maintain a “code of ethics.”

The fact that these support companies exist are indicative of this alarming movement towards bad business practices. As corporations move forward, are they also moving down? Are these support companies merely slowing the trend down, but not stopping it? Of course, there are examples of companies paying billions of dollars more to do the right thing: Starbucks fair trade coffee, Ben and Jerry’s paying premium for fair trade ingredients, and American Apparel selling clothing only made in fair trade factories around the world. These companies are well known and profitable; why can’t other businesses take the clue?

Links:

http://josephsoninstitute.org/business/blog/2012/02/the-state-of-business-ethics-in-america-good-news-and-bad-news/

http://fairtrade.ca/en/business-centre/registered-companies