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Monthly Archives: November 2012

According to the blog post titled “Brain drain…a problem or a natural process” by Asfvin Pugunisparam, I am actually not shocked the reverse of brain drains in India. And the explanation answers his first question of “is brain drain a natural process that occurs in each country?”

I believe that everyone is self-interested and everyone has infinite of greed in them but it can be greed towards fame/ reputation or any personal incentive, not necessarily monetary incentive. The huge population migration to other countries which are in better state than their own country is a normal phenomenon. It is even more obvious if the country is in trials and tribulations because people always think that they deserve better and more especially elites and professionals. The low level of patriotism as the world becomes more globalized is also one of the reasons as people believe that they are not bound to a country and they do not have the social responsibility to shoulder the burden of their country. In addition, one’s greed can never be satisfied, people will just want more and more and realize that their country is not able to satisfy their personal desire thus making them moving to more developed country for a better future. But, I believe brain drain this is a huge problem to those countries although it is inevitable most of the time.

The article discusses on Ikea regretting some of its suppliers for using political prisoners as forced labor in communist East Germany. In the article, Ikea shows great fear and impact of the negative news on the company reputation and sales. But, they reacted well by apologizing, showing the willingness to accept legal action and even take proactive measurement by financially supporting the investigation.

( http://www.bbc.co.uk/news/business-20356945 )

Ikea, a leading furniture producer, has been showing a lot of commitment in this accusation and has been trying to solve things promptly. The reason of it is obvious as they do not want any bad news to taint their brand name. Having the tag of “using political prisoners as forced labor especially in communist country” associated with their brand would definitely chase away some of their customers. But, the question here is, “seeking furniture for your house, does the quality of the furniture matters more or the brand name of the furniture matters more?”

Corporate Social Responsibility is a term that is amplified by governments and consumers as the awareness of destruction by behavior of certain corporate on the economy is surging in the society. Today, people emphasize on ethics of corporate in dealing the daily tasks. But, in certain cases, does a bad ethic of a company affect the quality of the production? And I must admit, not all of them. Nike, Adidas and Puma a world-known brand, but they are reported of using child labor which is not an ethical method of production. Still, you cannot deny that the quality of their clothes is way better than ample of brands.

So, when choosing a product, the brand of a product or the quality of a product will be your first criteria?

 

The article reveals the need of something simpler in term of features of a phone. In the article, the writer writes a letter to BBC News to request for a phone that is very simple, operates like a hand torch, with large keypad, small and narrow screen to display number dialed with an “on” and “off” button.

( http://www.bbc.co.uk/news/technology-20295118 )

Often when business tends to find ways to edge against or differentiate themselves against the other competitors, they tend to go away from the core need and usage for the existence of the product. Phone, is one of the example. Alexander Graham Bell invented phone to communicate and contact other people from distant. Cell phone/ Hand phone was innovated to provide more convenience for people so that phone can be mobile and people can move with phone. But, as phone turns smaller and advanced, smart phone is created. It is not a wrong move to invent smart phone which brings so many things, applications and services into one small device. But, as we fancy the ability and advancement of our phones, we tend to forget the main reason of a phone, to contact and message people. Therefore, the need of elders to get a simple phone that satisfies the function of communicating and connecting people is forgotten. Thus, the elder’s market which is a huge market remains untouched or without a leading brand in the market. As the huge firms, such as Apple and Samsung stop producing simple phone, will there be any firm or new competitor who can satisfy the market and bring back the trend of simply phone? Will there be any firm try to produce a “differentiated”- simple phone that is targeting this narrow segment of market? Or will the smart phone trend just continue to grow in the same direction, the SMART direction which may be confusing for some people?

 

In the article, it reports the news of BP criminal fine over the Deepwater disaster in the year 2010. BP is pleaded guilty for 14 criminal charges and fined for a record sum of $4bn. The disaster has caused the death of 11 workers and released of millions of barrels of crude into the Gulf of Mexico over 87 days.

( http://www.bbc.co.uk/news/business-20336898 )

From my point of view, BP was wrong for overseeing safety tests on the Deepwater Horizon rig. They were also trying to cover up the incident and the real amount of crude being spilled. With all these crimes done by BP, they seem to deserve the criminal fine. But, a lot of the victims staying near Louisiana, Florida, Alabama and Mississippi claim that the fine is not sufficient to compensate and settle the damages cause. The problems that surface do not only affect the sea, it affects the ecological livings in the sea and those who depend on the fisheries to earn a living are suffering and forced to leave the industry. All of these might even have effect on the protein supply to the people living in these states and it might also cause hike in the price of sea food.

From the creation of concept “Solomon vs Solomon” and corporation as a separate a separate entity, there have been a lot of multinational companies involved in fraud or criminal, such as Enron, AIG and Lehman Brothers which have affected not only themselves but the economy of the country. As the world becomes more globalized, it is not only a problem for the country where they belong, it affects the whole world. So, the question is, should the executives and managers involved in crime and fraud hold responsibility on their wrongdoing? Should they be sentenced to jail or fined because of having no business ethics?

Window Live Messenger was first released to the market on July 22, 1999. From past decade, the competition has been very high between Yahoo! Messenger and Window Live Messenger although there were some brief glorious moments for other online instant messenger such as ICQ. In 2011 October, Microsoft, the owner of Window Live Messenger acquired Skype as Skype showed sign of increasing growth with huge potential to gain more market share.

The article begins by mentioning the flop of Window Live Messenger in the past few years. The article also states that Skype meanwhile has a surging number of new users compared to Window Live Messenger. Thus, Microsoft chooses to shut down Window Live Messenger and give the option for users to change their account into Skype account.

(https://www.bbc.co.uk/news/technology-20222998)

In my opinion, the whole market feature has changed. Decade ago, people can only use Yahoo Messenger or Window Live Messenger to contact and communicate with friends and beloved. But, now with the creation of social media such as Twitter and Facebook, people no longer need to rely only on online instant messenger. Therefore, it would be better for Microsoft to cut off Window Live Messenger as it provides the same service as Skype while Skype has the differentiated service such as calling to phone which Window Live Messenger does not have. In addition, it would be wasting resources to operate two same services or department which may cannibalize each other as they are having same targeted market segment.

 

The article discussed the latest report of Dell that showed revenues decreased by 5.3 percent and net income fell by 31 percent. Due to the huge letdown in their financial report, the shares of Dell were trading 2.2 percent lower at $9.35 in New York today.

( http://nicosiamoneynews.com/2012/11/15/mobile-devices-spur-dell-contraction/ )

The recent report that I read in another article showing that a rising competitor, Lenovo, a Chinese company has been gaining more market share in the past few years and is just second to Hewlett-Packard. Dell is differentiated with its virtual integration that enables them to cut down their cost and gain the highest profit from each computer sold while satisfying the preference of different customer. But, recently Lenovo has created a higher level of cutting cost with its imitation of Dell’s vertical integration adding the advantage of cheap labor and supply of hardware, it enables them to have advantage in term of price. This benefit has given them the fame of PC firm with lowest or more affordable price in the industry.

At the same time, the trend of tablet has been grabbing the market of laptop and tablet is becoming a convenient and competitive substitute to laptop. The main advantage of laptop is being highly mobile while providing the same service. With the recent rippling huge tides of new tablets from several multinational computer hardware and electronics companies, a certain amount of market share of computer or laptop is moving to tablets instead. Dell has been reaping the profit for its usage of virtual integration for quite some years, but with so many new elements making the rivalry and competition more intense, should Dell search for ways to complement its current business model to compete against Lenovo? Another matter is, with so many computers, electronics, technology and software giants such as Microsoft, Google, HP, Amazon, Sony, Samsung and Asus tapping into the market of tablet, should Dell enter the market as well? Or should they focus on research and development to bring more innovative product that can edge against other firms?

 

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