This blog is dead. My current blog is at: Fifty Two Deja Vu
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Category: Comm 101
A variety of blogs relating to fundamental business concepts and my interests.
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My Carbon Footprint
I recently calculated my carbon footprint using a tool I found at http://go-beyond.ca/carbon-footprint-calculator; the results were quite interesting. Apparently, assuming that I commute to UBC from Delta via public transit Monday through Friday as I have for seven of the past eight months, I produce 4.84 tonnes of CO2 in a year. Now, that seems like an awful lot to me as carbon is a gas and I think of it as being very light. The breakdown of my footprint is 34% from my daily commute, 49% from the food I eat and 17% from shelter. It appears the main problem with my current lifestyle is my commute, while my ‘food-print’ is relatively low and my energy use at home is quite low as I live with seven other people in a medium sized house. Switching to an alternative method of transportation is suggested, though I currently do not drive and am rarely in a car. In fact, I would love to cut down on my commute just as much as the environment would love for me to; I intend to do so next year by living in Vancouver. Eating more of a locally produced, vegetable-based diet is also encouraged as this would benefit my health, the local economy and community and the ‘world at large.’
Most of these suggestions seem doable and I will attempt to consider how my actions impact the environment more in the future. Overall, I am surprised that the site seems to tell me I am doing a fairly good job at containing my carbon output. I was expecting more of a harsh criticism of my lifestyle, pointing out a number of details that I typically overlook. I am sure, however, that the impact of my carbon footprint will become a much more serious issue upon increasing my transactions in the business world, especially as an entrepreneur.
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Marketing Sustainability
The following commercial is a fantastic example of the power of sustainability as a marketing tool. It does a great job of presenting the matter of environmental protection in a light-hearted and comical manner, while ensuring the underlying message of this being the truth and a serious issue is present. As the world becomes increasingly obsessed with the theme of environmental protection, there is much profit to be had. In effect, it adds a new dimension to marketing that can be explored and exploited from a number of perspectives. Going back to the theme of music which I have brought up a number of times throughout this blog, the reduction of plastic disposal and production could be used a point on which base the marketing of an online music retailer. Although many albums are now packaged with recycled or recyclable materials, a significant amount of plastic is still used in the industry. With the diminishing number of CD sales, this is no longer a huge issue but it is just an example of a way help shift the remaining amount of CD sales to online retailers. In recent years, consumers have become increasingly motivated by sustainable advantages in their purchases. Furthermore, this trend will likely continue as offering such “advantages” becomes more of a common standard and less a unique “advantage.”
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Marketing vs. Artist Management
A newfound interest of mine, artist management and promotions, likely entails a very different strategy and approach than the traditional marketing of goods and services. However, I have no doubt there a number of similarities as well which can be observed by making useful comparison of the two. As with any product, building a brand around an individual musician or a group is essential to success. With today’s technology capable of making almost anyone’s recordings sound good, the creation of an image which fans can look up to or, in some way, identify with is quite important (ei: the nerdy kids can identify with Weezer, the kids who fancy themselves ‘gangstas’ can worship Lil Wayne and 50 Cent, the ‘chill’ ones can bask in Beck’s mellow melodies, the stoners can trip out while listening to Radiohead or Queens of the Stone Age and the young clubbers can memorize all of Akon or Pitbull’s lyrics). Similarly, the marketing of any of the products that are prominent in today’s market requires a focus on the differentiation of the brand. Personally, I love all sorts of music and the content of my itunes library is so varied that there is only one word to describe each individual song within it: creative.
With the mass of music out there today, as with products, it is crucial that new artists attempt to occupy some sort of niche in the market. Taking a unique approach to the development of their music by letting their creativity flow and attempting to do something different than anyone else, though risky, will likely pay off much more than “trying to become the next _______.” For example, Kid Cudi, one of my favourite new artists, exploded onto the scene not too long ago and did so through creating some of the most original rap music I have ever heard. Rather than talking about money, women and being a gangster as has been done so many times before, he created a new sort of genre of ‘stoner-rap.’ In doing so, Cudi demonstrated that if a position in the consumer’s mind is already over-crowded, the creation of a new position to occupy can be quite 
beneficial. Similarly, a few years earlier, Kanye West released his completely original and hugely successful debut album, The College Dropout, which incorporated lyrics warning young kids about drugs and preaching Jesus. As with any industry in business, the music industry is led by those who innovate bring something new to the market. The role of a manger appears to be to encourage this development and guide the creation of a successful image as well as promoting it and spreading awareness of the artist’s ‘brand.’
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Donald Trump: A Model Entrepreneur
I am going to briefly discuss a man who I look to as an example of how to be successful as an entrepreneur and in business in general, Donald Trump. I am interested in him particularly because he has made his fortune in real estate development, which I find to be more exciting than any other industry in business. Not only has Trump dominated real estate development in New York City, he has also had great success in Las Vegas, Chicago, Florida and a number of places around the world. However, the road to achieving his current level of success has been filled with failures as well as victories.
Working for his father from a young age, he learned all the basics of real estate development as well as how to be ruthless in making deals with others which would greatly contribute to his later success. He was able to achieve great success through making real estate deals and fixing up and developing hotels, skyscrapers and casinos. By the early nineties he had built up a massive real estate empire across the United States and had an estimated net worth of 1.7 billion dollars. However, due to a decline in the real estate market at this time, he lost most of what he had and the once seemingly unstoppable Trump Organization went several hundred million dollars into debt. It was only through an immense infusion of loans that his corporation was able to survive bankruptcy. Through more shrewd deal-making and hard work, Trump had recovered all of what he had lost by 1997 and his net worth was even larger than it had once been.
Since this time when the ‘Trump’ name was tarnished, he has been able to restore it to its former glory. Today, it is widely respected and associated with the highest quality in luxury real estate. Moreover, in the past decade Trump has strayed out of his comfort zone and entered a number of other industries such as television, producing the hit show ‘The Apprentice’. He even has his own line of bottled water, Trump Ice! His fearlessness, persistence, and ruthlessness have enabled him to achieve a level of success that aspiring entrepreneurs everywhere hope to achieve.
The following blog consists of a brief interview with the owner of the small appraisal firm, Fast
Appraisals, my dad.
Q: So dad… how has digitization affected the real estate appraisal industry?
A: Well at the company I used to work for (Elliot Appraisals) my boss would spend over a thousand dollars a month to purchase film used to take photos of properties to be included in appraisal reports and have them developed. Now, using a digital camera, I just upload the pictures I take and insert them into my reports on the computer which are typically sent online to NAS (an appraisal management firm) who distributes them to the banks. This method is much more efficient and in place of the cost of film and photo development is a much smaller cost for ink used in printing some of the reports. Paper is also saved in submitting most of the reports online, which was not possible before widespread internet use.
Q: What about the use of mobile devices?
A: Many companies now require their employees to possess Blackberries or similar devices so that they can communicate with their office while on the road. I regularly spend a number of hours away from my office at a time while completing the field work involved in appraisal or working with an employee.
Q: But aren’t cellphones sufficient?
A: The thing is that NAS expects me to either accept or refuse work within an hour or two so that they can quickly pass it on to someone else who is available if I am not and have no one available to pass it on to. At first when I was told I had to purchase a Blackberry I was reluctant do so and worried about the complication of this new technology, but I now realize the efficiency that it provides me with and navigating the device has become second nature to me… for the most part. I no longer return to my office to find my inbox overflowing with appraisal requests, having to reject a number of them which may agitate NAS and cause them to restrict the amount of work that they send me. My Blackberry also allows me to send information and updates I receive about jobs to employees as I receive it while on the road.
Q: I remember you mentioning something about computer generated appraisal reports once…
A: Oh yeah. Computer generated appraisals are called AVM (Automated Valuation Model) reports. They provide basic reports and a number of companies use them because they are cheaper and quicker than using real estate appraisers.
Q: Well how come they aren’t exclusively used? How come your job isn’t obsolete?
A: AVMs aren’t nearly as reliable as humans and can make mistakes. They are strictly used by such companies as CMHC (Canada Mortgage and Housing Corporation) that insure high ratio mortgages where small mistakes in reports typically do not make a significant differences. Also, this is just a more convenient method for them. Because CMHC is using taxpayers’ money it does not do as thorough a job in its reports. On the other hand, banks are responsible to shareholders so they are more prudent and use appraisers. They are more concerned with falsified profits that may be reported and losses that may be incurred as a result of computing errors.
Q: K. Thanks a lot.
A: Ok go to bed now.
Q: In a minute!
Well I thought that was very interesting anyhow. Real estate is fascinating! Hope we have a COMM 486 class on it soon!
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Digitization…a necessity?
WE ARE IN THE AGE OF DIGITIZATION! This technological phenomenon is present in business everywhere; there is no escaping it. Some view digital technology as revolutionary, presenting endless opportunities for development and increased efficiency. Others refuse to accept it, viewing it as unnecessary in the business world; they will continue to shun it unless it is forced upon them.
The marketing industry has unquestionably been revolutionized by the creation of such digital media as company and sales websites, search engines, viral videos, Photoshop, and more. Other industries vary in their dependence on this technology; the size and type of businesses are what seem to determine their need for digitization. For example, small businesses are at times able to avoid this technology entirely, whereas large businesses are rarely capable of the same.
In the real estate industry, appraisal firms often have a company website for advertising and communication purposes. However, the owner of the small appraisal firm, my dad, feels that a website is unnecessary for his company at the moment because it already receives sufficient business and is at its current capacity to expand. Furthermore, he feels that the type of customers typically attracted to an appraisal firm’s website cause more hassle than they are worth to deal with. The customers he is referring to are the ones who he typically deals with on referrals who regularly make ignorant requests and even revoke offers of jobs to which they have committed. At the moment, his company receives the majority of its work from a number of banks through the appraisal management firm, Nationwide Appraisal Services (NAS), which presents any information about the request in a clear and simple manner. In his opinion, creating a website for his company would only make him worse off at this point by increasing the num
ber phone calls he receives that do not end up generating business. In this sense, his company has been able to avoid digitization. However, the digital world has long since overtaken the field of residential real estate appraisal as I will describe in my next blog post, “Digitization in the Field of Real Estate Appraisal.”
I was studying with a friend in I.K.B. Library about a month and a half ago when approached by two individuals who said they were recruiting for Abercrombie and Fitch’s new Hollister location in downtown Vancouver. At the time, I thought nothing of it because random occurrences frequent UBC’s point grey campus. So I played along and even after being told that the job starts at minimum wage, I took their card to be polite.
After they left I looked down and made a stupid comment about the pictures of preppy and shirtless models on the company card I had received and noticed something peculiar. The card included the term “good-looking” in the qualities that it seeks in potential employees. I was a little shocked and asked my friend, “Are they really allowed to do that?” Having past experience in modelling, she did not think anything of this and said it is most likely in order to hire potential models.
With a boost to my ego but highly doubtful of my modelling potential, I decided to investigate further. It took very little research to discover that it is simply a policy of Abercrombie and Fitch to hire young, attractive college students to work in their stores. To me, this policy makes perfect sense in that young guys are going to want to go into a store where there are a number of young, attractive girls working and vice-versa. Also, call it what you like, but the people working out front of an A&F store are in effect modelling for the brand.
Though this policy may seem quite practical, is it ethical? Of course discriminating based on religion, age, gender, disability or ethnicity is highly unethical and, in Canada, illegal. But, as they cannot be classified as a distinct group, the discrimination against those who are not particularly attractive is tolerated.
I feel it is unethical to hire an inexperienced attractive person over someone who is less attractive but possesses experience in retail. However, I’m sure employers subconsciously give more attractive people an edge in a number of other industries as well. The issue of discrimination based on appearance cannot be easily resolved if at all and will likely continue to be present in business into the distant future.
What do you think?