A business topic that hasn’t been covered thus far in our Comm 101 class is Real Estate. The Vancouver real estate market is surely one of the most interesting housing markets in North America. Several articles have recently been released as the Metro Vancouver real estate market slows down, with both sales and average prices decreasing.

Vancouver has continuously been ranked one of the most desirable places to live in the world with high scores in areas such as health care, education, culture and environment. However, according to the Vancouver Sun, the city loses points for a “lack of quality housing”. The heart of BC has been in the Top 3 Most Livable Cities in the world for years, but unfortunately most livable does not necessarily imply most easily livable. Vancouver’s housing prices have been decreasing but still nearly double or even triple real estate levels in all other Canadian provinces. The national average cost of housing is $361,516 while Vancouver’s average sits at $726,089 according to a CBC post. This information is startling when taking into account that in statistics from February 2012, the average national hourly wage was $25.53 and BC’s wage was $23.77. Living in the most desirable city is certainly not easy as BC citizens make less than national average but must pay over double for housing. It’s interesting that the cause of all of this is mostly foreign investment in the city, causing prices to increase.

source: http://vreaa.wordpress.com/tag/banks/

Sources:

http://www.cbc.ca/news/canada/story/2012/08/15/most-livable-cities-top-ten-economist.html

http://www.cbc.ca/news/interactives/housing-canada/

http://blogs.vancouversun.com/2012/02/14/vancouver-great-city-if-you-can-afford-it/

http://o.canada.com/2012/04/06/why-is-vancouver-real-estate-so-expensive/

Today, in our Comm 101 class we met two entrepreneurs that both graduated from Sauder. This was definitely an eye opening experience for me as I had never seen any tangible “proof” or example of what might become of me after graduating. It was certainly motivational to imagine myself in their shoes. It really provoked me to start thinking seriously about my future!

The presenter that really caught my attention was Wade Larson. He co-founded a comapny called UrtheCast (pronounced “earth cast”). It is a company that will distribute the operational software for the first publicly accessibly HD Cameras to be installed on the International Space Station. The UrtheCast service will be accessible online and will allow users to access the two UrtheCast cameras from their homes to examine places or events. They plan to connect social media and news providers to their services as well and are currently looking to expand into both of these growing markets.

I really believe that this project is a plausible one. I can see UrtheCast being features of social media platforms as well as on phone applications, just as aforementioned. I will definitely be looking out for the company’s growth, and look forward to using their services once they are in place!

The site’s blog and its twitter are great means of keeping track of the company’s progress! http://www.urthecast.com/blog/home/ , https://twitter.com/UrtheCast

I wish Wade and his team good luck! 

Sources:

http://www.canadianmanufacturing.com/design-engineering/news/urthecast-and-mda-to-pioneer-hd-earth-video-from-space-56318

As Hurricane Sandy continues to tear up the east coast of the United States, many people are wondering how it will affect NYC and the business base that exists there. It can be assumed that the storm’s aftermath will affect east coast businesses for weeks, if not months.

A blog thread on Huffington Post has owners of local companies posting about the effects of the hurricane on their businesses thus far. Most have suffered power outages and had to close down certain locations due to flooding.

This, however, illustrates merely how the businesses on the east coast are suffering the likes of Sandy. It is important to understand that many companies that lie far from the hurricane’s reach are also suffering its wrath. Closed air traffic and cancellations on cargo operations in the region have put gaps in many external companies’ supply chains as products that pass through New York on their way to their destination, have been halted.

Sandy served not only as a reminder of changing climatic patterns, but the impact of those patterns on business.

Hurricane Sandy photographed from space

Sources:

http://www.logisticsmgmt.com/view/nations_supply_chains_disrupted_by_hurricane_sandy/3pl

http://www.theferrarigroup.com/supply-chain-matters/2012/10/31/supply-chain-matters-update-two-effects-of-hurricane-sandy-on-the-u-s-northeast/

I recently read a post on the Harvard Business Review Blog about Etsy, an online shopping website that sells vintage handmade products. The website has over 800,000 active sellers and a 15 million-person marketplace across 150 countries. Etsy’s gross merchandise sales reached $525 million last year. The company’s CEO, however, was not entirely pleased with how far the company has come. In fact, he is committed to taking Etsy beyond the profit-making entity that it was, by using the power of business for social and environmental change. With topics like social entrepreneurship discussed in class, it was interesting to see such a large business bridge the gap between profit and social change. Having used the website numerous times for personal use, it was interesting to discover that my actions online can been part of more than just a financial transaction. The Etsy team has proposed numerous ideas and they are on their way to becoming more sustainable and community-oriented! I look forward to their success!

I found that other posts on this  blog were relatable and easy to read. I would recommend this blog to others because it comes from a reliable business source and the posts are interesting and engaging!

http://blogs.hbr.org/cs/2012/11/etsys_hackathon_for_good.html

After having read Chloe’s blog post in regards to Tim Hortons hiring people with disabilities, I immediately recalled Save On Meats, a local restaurant whose owner has been regarded as a social entrepreneur for his commitment in Vancouver’s Eastside community. I think it is important to recognize the places that originally began the effort that Tim Hortons is now demonstrating. It is interesting to see how social entrepreneurs, like Mark Brand, start movements that are now being seen among larger firms like Tim Hortons. Mark started something that he calls “rehabilitative employment” where he hires people from the Downtown Eastside and gives them simple jobs such as window cleaning, dishwashing and sweeping, in hopes of helping them to overcome their difficult lifestyles. Many of the people living in this poverty are there because of disability, drug or alcohol abuse, etc. Mark’s doors are open for anyone in any situation, as long as they are willing to improve their condition. Social entrepreneurs, like Mark, are sparking a change not only within their target communities but also in society as whole. Because of this, companies have taken it upon themselves to give a chance to disabled workers, realizing that they have been overlooking a large portion of the labour force, and even seeing it as a way to market themselves.

Sources:

http://www.vancouversun.com/health/Hiring+those+with+disabilities+easier+than+think+Hortons+franchise+owner/7072413/story.html

http://ubyssey.ca/culture/dtes-eats-975/

Big-box stores like Walmart and Old Navy are far from satisfied with Quebec’s language laws. The province insists on adding French words to retailers’ outdoor signs to comply with these laws. Six stores have sued Quebec because of this, and the province threats to withdraw the francization of these large corporations.  Companies argue that they have business models that depend on a degree of uniformity for their products on a global scale. In other words, their brand identity is subject to change by Quebec’s laws. Since most large companies are not looking to lose this part of their business model, they may leave Quebec.

Based on class discussions about Marketing, I asked myself this: how do companies expanding globally comply with language laws and severe cultural barriers? I looked into McDonald’s expansion because it is recognized on a global-scale. When they enter new countries, they change the lettering of their brand. For example, in Bulgaria, McDonald’s is written “Макдоналдс” to be legible for Bulgarians.

McDonald’s in Bulgaria written in cyrillic to be legible for Bulgarians

Likewise, the company changes its menu based on cultural barriers/preferences. In India, it offers chicken, veggie and local options rather than beef burgers because of its Hindu population. I suppose that McDonald’s (being a burger chain) did lose some brand identity when not selling beef burgers, however, they managed to be successful in India regardless. McDonald’s is still known world-wide for its brand regardless of the changes it has had to make in order to expand.

McDonald’s Menu in India – offering unique flavours to assimilate to Indian culture

In my opinion, brands expanding into Quebec should comply with language laws because it is a greater advantage for them to sell there.

Quebec Article: 

Article from 24 Newspaper published on Tuesday, October 16, 2012

http://nrn.com/article/mcdonald%E2%80%99s-lessons-learned-india

http://www.mcdonaldization.com/forum/viewtopic.php?f=1&t=42

After reading Jeremy Stickland’s blog post about an American pizza company’s plans for expansion in Canada, I wondered if their points of difference would be enough for them to overcome all of the competition that is already present. Papa Murphy’s Pizza offers “Take ‘N’ Bake”, where pizzas are made in store and customers bake them at their own leisure.

By looking at Michael Porter’s 5 Forces Diagram, we can exemplify the type of competition that this company might face during its growth and imagine what may have been discussed in the adjustment of their business plan. In my opinion, Papa Murphy’s will likely struggle with brand identity issues initially, considering only about 15 if its stores exist in Canada. This is an issue associated with Barriers for Entry and Buyer Power. Furthermore, in terms of Buyer power, another question begs asking: why did they decide to expand on Canada’s west coast before focusing on the more populated east coast? As well as placing locations in areas like Surrey and suburbs of Edmonton rather than in the hearts of major cities (where a greater opportunity for promoting the company exists)? Threats of Substitutes include not choosing the Take ‘N’ Bake option and having regular take-out/delivery options – of which there are many with great reputations that exist.

http://business.financialpost.com/2012/10/01/trying-to-take-a-bigger-bite-of-the-pizza-pie/

http://www.biv.com/article/20120904/BIV0106/120909995/-1/BIV/take-8216-n-8217-bake-pizza-chain-charts-huge-expansion

http://www.canadianpizzamag.com/content/view/4457/132/

For many, watching a hockey game is closely related with having a drink and appetizers at their favourite downtown bar. However, many local businesses in the restaurant industry are currently facing the consequences of the NHL lockout. In Vancouver, where hockey plays a vital role in the sustenance of other industries, many businesses are finding their desired profit goals out of reach.

The BC Restaurant Association announced that the Vancouver Canucks create the most energy in our downtown core; more than the Vancouver Whitecaps, BC Lions or other major events. They also claim that with no season on its way, restaurants may lose up to 6% in revenue per month. As a result, Vancouver’s eateries have let go of numerous employees and staff.

Porter’s 5 Forces depict a rivalry among businesses that exist in any downtown core. With the lockout present, the buyer power has shown significant strength as customers are shying away from restaurants. Substitutes, such as watching other sports elsewhere, are being made.

The NHL Lockout shows the connectivity that is present in our economy and how a setback in one industry can cause the collapse of another. Many large firms aren’t too impacted by the lockout but smaller businesses with large competitors are having difficulty. This all begs the question, are local/small companies too dependent on the impacts of large industries (NHL) for the success of their own?

Sources:

http://www.news1130.com/news/local/article/401358–looming-nhl-lockout-hurting-local-businesses-and-bars

http://bc.ctvnews.ca/businesses-brace-for-nhl-lockout-1.958696

http://www.cbc.ca/news/canada/manitoba/story/2012/10/06/mb-hockey-lock-out-winnipeg-jets-business-121006.html

Why is it that even if we have the latest iPhone 4S, Apple is able to convince us to purchase the newest, but very comparable, iPhone 5?

In the past, Apple has released considerably improved products compared to their precedents, such as the jump from iPhone 3GS to iPhone 4. However, the differences between the iPhone 4S and iPhone 5 are minimal and certainly not significant enough to have most consumers feel the need to make the switch. Physically, the new iPhone measures the same width as the previous, 0.37 inches taller, and 0.07 inches thinner. The main difference is the size of the screen, which is 0.5 inches larger. Even this, however, isn’t much of a perk considering the size of many Android phone screens measure nearly an inch larger than that of the iPhone 5.

It is evident that Apple’s marketing scheme, of keeping information about its upcoming products in the dark, has dedicated customers waiting at its side. Apple develops vague headlines for each product. When announcing the release of the iPhone, the marketing chief delivered the headline: “The iPhone 5 is the thinnest and lightest iPhone we have ever made.” Before its release, all talk about the product was speculation of its lighter and thinner features, which turned out to be much less significant than imagined.

Apple products are categorized as “wants” because they’re luxurious compared to more inexpensive and basic products that do essentially the same thing. However, their marketing team is able to portray the products and their features as “needs” and “benefits” giving consumers the ability to justify their purchases.

Without containing many points of difference compared to the iPhone 4S, the new product has been quick to sell out all over the world. Is this due to Apple’s unique marketing scheme? Or has having the latest iPhone become a fad regardless of its minimal upgrades?

http://www.brisbanetimes.com.au/digital-life/computers/blogs/gadgets-on-the-go/hands-on-iphone-5-screen-20120923-26eni.html

http://www.forbes.com/sites/carminegallo/2012/09/21/why-apple-uses-68-characters-to-describe-the-iphone-5/

http://www.geeky-gadgets.com/difference-between-the-iphone-4s-and-iphone-5-13-09-2012/

http://www.forbes.com/sites/roberthof/2012/09/17/why-2-million-apple-fans-ignored-my-advice-and-bought-an-iphone-5-anyway/

Workplace sex discrimination had seemingly been declining in the media over the last few decades. However, three months ago CPP nurses lit up the media as they learned that they would share over $160 million in a pay equity settlement dating back over three decades and indicating that this business ethics issue still exists.

Eight years ago, a group of dominantly female nurses working for Canadian Pension Plan filed a complaint with the CHRT indicating that their salaries of $50,000-$60,000 per year halved those of CPP doctors, a primarily male group, that performed essentially the same job.

In the lawsuit, the pay scales of the female job classification required employees to work up to three years before reaching the top pay rate, one that was attainable in one year, in parallel male classifications. The Ontario Superior Court said “as long as female employees can eventually achieve the same level ofpay as men in comparable jobs, the fact that it takes them three times longer to get there does not create gender inequality.” Equality, it seems, is a prize for those who are patient rather than an immediate working right.

Incidents like this beg the question, why don’t officials promote gender equality rather than argue against the ethical treatment of women in the workplace? From this particular case we see that the promotion of equality among genders should be increased. This case should lend an optimistic view for women, showing the possibility to change the system. It should also encourage us to continue striving for workers rights until true equality is reached, and laws are not required in order to sustain fairness.

Video:

http://www.ottawacitizen.com/business/Video+Canada+Pension+Plan+nurses+million+settlement/6877733/story.html

Sources:

http://news.nationalpost.com/2012/07/03/nurses-to-receive-160m-settlement-from-ottawa-in-sex-discrimination-case/

http://www.canada.com/health/Nurses+group+awarded+million+government+gender+discrimination/6876630/story.html