Apple in it’s last quarter released two large new product. First of all, it released the Ipad mini. This was a hit, although it is over priced for the highly competitive market it is in. Secondly, it released the Iphone 5. The Iphone 5 was less of a hit and more a dramatic failure that did not meet the expectations of buyers. Even worse, the Samsung Galaxy S3 had sold in mass amounts that add up to enough sales to call it the new best-selling phone of all time.

Peter Nowak wrote this blog with the key idea that success for apple in the future may be hard to come by. There is very little progress being made by the company, or at least what their products show us. The mix of bad production or lack of innovation in their new products and the rise of threat from competitors is lethal mix for Apple. People questioned how the company would work fair with the loss of the beloved Steve Jobs and regrettably it’s going the way that some speculators believed it would. Apple needs a spark, a creative mind, a point of difference to again take precedence again in the media industry.

Newly re-elected President Obama has plans to raise taxes for the upper class of Americans. This plan is in attempt to cut 1 trillion dollars out of the American deficit. These plans were not welcomed by all especially the upper class who would feel the full cost of this, but also by the middle class who have fears that they too will see effects to their levels of income as a result.

The American deficit is too large currently, plain and simple. There have been mass expenditures on military that are fortunately being cut, this paired with the money being raised from the taxes should cut nicely into the deficit.

Most economies of today have been both failing and, or, in steep decline. America is a country that does not stray from the long list of suffering countries. President Obama is making a proper choice in collecting extra funds from those who can afford it. As many countries should be, America is taking steps in the proper direction by implementing policy and attempting to tap funds that had been protected in the past. Tax increases, bills of health or drastic economic changes are all things that countries need to begin to attempt in  order to reverse or slow the downturn that many of them face.

Article:

http://www.bbc.co.uk/news/world-us-canada-20333066

For the last 25-30 years Ikea has had continual incidences with forced labour. Ikea had opened factories in the former East Germany where there are now claims from the prisoner group the UOKG that they were forced to work against there will. These claims are currently being investigated by Ernst and Young with the help and funding of Ikea.

Respectably, Ikea realizes the mistakes that it has made and is doing what is necessary to fix it’s wrong doings. The incidence ultimately occurred as a result of placing the labour contract in the hands of the East German Government. The question is though, why did it take about 30 years to catch this?

There are and will be many more disputes over labour as people seek to have the lowest cost of production and most efficient production. Many steps have been taking in the western world to combat disputes such as child labour, proper working conditions, and adequate treatment of workers. Unfortunately though, there are a mass amount of not only third world but first world countries with lower standards of working conditions where employees are exploited.

It takes proper government regulation and inspection to ensure that working conditions for their fellow country men and women are adequate. This is a task requiring large amounts of money, labour and commitment, all of which are things many governments are not willing to sacrifice and until they do little can be changed.

Gangnam style. The first thing that comes to my mind after hearing this is “woop woop” the “Canadianized” version of the chorus in Psy’s song. Louis Landolt blogged about the relatively new artist Psy and his hit song, Gangnam Style. Louis commented on the rise of Psy and the affect it is having and the effect it will have on Korea, another country in racked by an economic slump.

Psy is a Korean artist who has a unique “swag”, if you will, to himself and his music. With one song he has created a following of millions. He is widely recognized for his clothing choices, his iconic dance and of course his infectious music. There are many musicians who can claim these feats as well but the point of difference that is important here is the fact that he is Korean. There have been an underlying tone in the relationship between North America and Korea that is not one of distaste but certainly not one of greatness. That mixed with the economic slump that Korea is in is what makes this hit song even more important. Psy has directly bridged a gap between Korea and much of the world, a point that cannot be understated in it’s importance to Korea.

Music has a unique way of connecting the world, it breaks down the barriers between languages and allows people to relate to each other. Psy is a great example of this and will hopefully relay into prosperity for Korea.

Rupinder’s blog is with regards to the expansion of Starbucks into India through a joint-venture with Tata Global. Rupinder’s poses questions that refer to brand recognition and issues of consumer power.

The Starbucks brand is recognized world wide and is a successful. Starbucks is known to be a luxury brand coffee in comparison to some of it’s competitors. The Starbucks brand name allows the company to sell it’s products for a much higher price compared to competitors. The “fancy” drinks and seasonal specials are points of difference for the company that define the brand, this helps it’s profitability.

The strong Starbucks brand has been successful all over the globe but with the increasing decline of the European economy I strongly support the companies choice to expand. Rupinder questioned in his blog whether or not the it would be Starbucks or Tata Global that would be more recognized through this joint-venture. As I previously stated I believe that the global recognition of the Starbucks brand will allow it to shine through its cohorts. Brand recognition is one way of selling products and the Starbucks brand is too strong to not advertise or predominantly use.

Rupinder also proposed the question of buyer power and whether or not the current companies will retain a monopoly on the market. I believe that Starbucks has creatively approached this expansion using an already prominent company to create it’s joint-venture with, Tata Global. This will allow for an understanding, by both parties, of the target market and allow for Starbucks to become a force in the coffee market of India.

BP PLC, a multinational British oil and gas company, is set to face a series of fines, lawsuits and criminal charges after the explosion of one of their oil rigs in the Gulf of Mexico. This explosion led to the releasing of about 57,500 barrels of oil per day while the well was exposed.

BP has is facing lawsuits from from a multitude of governmental and non-governmental organizations including: The National Fish and Wildlife Foundation, The National Academy of Science, and the U.S. Securities and Exchange Commission. BP is also facing criminal charges and possible incarceration of one of it’s employees who oversaw BP‘s project in the gulf. He faces 5 years in jail as a result of lying, about how much oil was being expelled from the well, in congress.

As a result of this catastrophic event, BP is faced with $4.5 billion dollars of fines and a slap on the wrist. The company faces little deficit or real signs of struggle as in it’s last quarter alone reported profits of about $5.5 billion.

This is the reality of our current economy, we need petroleum and will pay extreme costs to get it. As a scarce and highly valuable resource countries will battle to control as much oil as possible. There needs to be more regulation and higher punishment for oil extracting and transporting companies to prevent and lower the risk of the destruction of vulnerable ecosystems.

http://www.theglobeandmail.com/report-on-business/international-business/us-business/bp-to-plead-guilty-in-gulf-spill-pay-extra-45-billion/article5327648/