Month: October 2014

It seems to me that every time someone’s asked for advice on a problem, an unwritten rule comes into effect where they’re essentially expected to become knowledgeable on said issue. And if they don’t know it yet, the sooner the better.

Mark Suster, an entrepreneur turned venture capitalist, touches on this topic in one of his blog posts for “Both Sides of the Table.” In the post he gives business advice to entrepreneurs and venture capitalists alike, though the advice is basically applicable to any field of business. He describes how saying “I don’t know” is often the right answer; he disregards the importance of answers in favour of knowing what questions to ask. Suster recounts how in his own career he felt like he was fooled into thinking he had to know everything, but later realized that real business leaders are ones that can admit that they don’t know everything.

While reading Suster’s post, this concept of “not-knowing” really hit home for me. I feel that in today’s “technology-centric” age, people are placing increasing pressures on themselves to know things they don’t know much about. Suster’s advice of admitting one’s lack of knowledge is extremely relevant, not only with entrepreneurs looking to start-up, but also with students. I think that if students could adopt this open-mindedness, they could learn at a greater depth than they would thinking that they already know-it-all.

Image found here.

For many, the first thing that comes to mind when one hears corporate “sustainability” is eco-friendly technology, clean energy, and environmental protectionism. I too previously held that incorrect assumption. After reflecting on what Tamar shared in class, I realized that not too many people seem to be aware that sustainability can boost a company’s financial, brand, and operational status.

One executive in a high-profile company that shares my thoughts on sustainability is UPS’ VP of Environmental Affairs, Rhonda Clark. In an interview with The Guardian, Clark describes how sustainability and efficiency are paired together when it comes to the company’s operations. She explains that many people in other companies haven’t quite caught on to the fact that sustainability can be integrated into a company’s identity without compromising profitability..

I feel as if today’s corporate community puts great emphasis on “buzzwords”.  In the past, prominent buzzwords, that have now been largely adopted, were “social media” and anything “cloud.” In the same way, “sustainability” has become a fairly common buzzword among business innovators. The fact that an industry leader like UPS has adopted a sustainable business approach is a sign to everyone that the trend of sustainability has arrived. And I feel that given all the attention it has been receiving, that this so-called sustainability movement is here to stay.

It has become an all too recurrent theme. A corporation wants to start a project in Northern British Columbia, but lo and behold, the land is traditionally owned by a First Nations tribe. BC Hydro has been trying to launch its Site C hydroelectric megaproject, but it seems like they still have unresolved issues with their First Nations partners in the area. The proposed project would destroy kilometres of farmland and wildlife habitat. Referencing external stakeholder theory, these indigenous people hold a heavy influence upon the business model of Hydro’s project, and the two sides must make peace before the project can move anywhere.

Another project which has attracted even larger media and public attention is the Northern Gateway Project by Enbridge, with many skeptics and activists complaining about the path that the oil will have to take to reach the coastline. This is another case of how a corporate organization’s business model can conflict with the interests and wellbeing of external stakeholders, as progress of the project has ceased to a halt while the two sides try to find a point of agreement. The true issue lies rooted in the fact that in past years, large corporations have acted with a blatant disregard for the environment and locals that their projects affect. I believe that if this trend continues, then future projects will only meet greater opposition from external shareholders, by First Nations and activists alike.

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Formerly two neighbouring states with a noted disdain for each other,  the Democratic People’s Republic of Korea and the Republic of Korea – better known as North and South Korea – have begun an unexpected series of negotiations amid a state of civil unrest in the North. Just yesterday, it was reported by BBC that the two factions had agreed to resume diplomatic talks, in the wake of a surprise visit by North Korean officials.

As it stands right now, only the people involved actually know what the reopening of negotiations actually means, but given the level of hostility between the neighbouring nations in recent years, the start of constructive communication could prove to be a breakthrough. The start of warmer relations could potentially change the entire economic and financial landscape of that specific Asiatic region. If for whatever reason North Korea decides to loosen its trade barriers with its southern neighbours, or simply open its doors like China back in the 1840s, there would be untold economic and political effects. Suppliers in China, South Korea, and Japan would suddenly gain a new, massive market base upon which they could sell their products. All the talk about what these negotiations signify is simply speculation at this point, but many believe that if things turn for the better, that the Koreas could be heading into very exciting times.

Evans, Stephen. “North and South Korea ‘agree to Talks'” BBC News. N.p., 4 Oct. 2014. Web. 04 Oct. 2014.

Image source (1) & source (2)

Ebola is a virus which has experienced a rampant outbreak in many countries along the West African Coastline, killing thousands and infecting thousands more. Health officials initially informed North Americans that ebola could be contained, but somehow, it still managed to jump the ocean into both Texas and Toronto. When this happened North American authorities told the public not to panic, so being North Americans, they did.

A handful of health experts have indicated that they believe a small outbreak of Ebola in North America is all but inevitable. This slight possibility of an ebola outbreak represents a slew of potential macroeconomic effects that could come forth, affecting the North American market.  The healthy care industry is the most obvious example in this case; a company that successfully launches and  markets a drug for the treatment of the virus will see their share prices increase significantly. However, some susceptible industries, such as the airlines, may also experience a downturn due to the emergence of the disease.  The looming threat of a worldwide epidemic will discourage people from traveling, and thus global human air transportation will experience a gradual decline in activity. It would not come as a surprise if airline shares begin to drop while their healthcare counterparts rise, as the impending threat of ebola grows larger. Worldwide events like ebola always produce macroeconomic effects, and in the financial world, those who can correctly predict the outcome of these trends typically come out on top.

Sources

Diamond, Dan. “Yes, Ebola Is Scary. But It’s Also Beatable. Here’s Why.” Forbes. Forbes Magazine, 03 Oct. 2014. Web. 03 Oct. 2014.

Image source (1) & source (2)