“If the United Nations was fully funded why would we need the Arc or social enterprise?”

This was the prompt which we were asked to discuss/reflect upon, but after browsing through the links and readings in the course website, I noticed that there are many layers to the purpose and functions behind social enterprises, organizations and programs such as Arc. For one thing, the UN funding and its allocations in programs serves different purpose than the intended goals designed in programs such as Arc.

Many of the featured Arc entrepreneurs, such Ethiopia’s founder Salem Kassahun and Ecocalzer’s John Jairo Pizaro, have demonstrated great examples of creating shared values through connecting their communities to their business. With these unique and meaningful differentiation strategies, their business models can provide many ideas to Sauder students and spark more insights on how social enterprises can bring both implicit and external benefits.

Rather than “providing help” to a developing country, what the Arc Initiative focuses on is to establish connection between the business communities from completely different parts of the world. Thus, this kind of programs will be a valuable learning experience and an opportunity to broaden one’s vision through real interactions. It is also a great chance for local entrepreneurs to exchange their knowledge and experiences within similar industries.

While most of us complain about low savings interest, imagine how it would feel if all of a sudden we were told that we have to lose money (pay interest to the banks) just so that we can have a “save” place to store our money? This might seem shocking, because we know from the  time value of money concept that a dollar today always worth more than what it will be the future, thus a negative interest rate does not make that much sense in normal circumstances. However, this is exactly what the European Central Bank had imposed earlier this year to encourage people to save less and invest more.

For instance, currently, a depositor with over €500,000 savings in Germany will have to deal an interest rate of. As a result, the bank savings in Germany have significantly declined in recent figures, and many Germans are forced to look for other alternative ways to store or use their money for investment. However, it is interesting to note that rather than investing the money (which many Europeans are still speculating with a lack of confidence) in the market, an alternative solution is to convert their savings into other currencies and deposit their money in banks overseas.

Clearly, we cans see that although governments and central banks try to influence the market by imposing policies that will affect consumer and investors’ behaviours, it may not always turn out as the intended outcome. Nonetheless, economies have their own recurring cycles, which will eventually balance out the rise and falls. Meanwhile, policy-makers can attempt to encourage or discourage economic activities, but the results will vary so they will have to see whether the policy will achieve the desired effects.

Works Cited

Walker, Andrew. “ECB Imposes Negative Interest Rate.” BBC News. BBC, 05 June 2014. Web. 09 Nov. 2014.

“Worse than Nothing.” The Economist. The Economist Newspaper, 08 Nov. 2014. Web. 09 Nov. 2014.

image (URL):

http://cdn.pieria.co.uk/new_live/dr/section_main/730.jpg

Comment on Lindsey Chung’s post: Wow Air: $99 Flights Across the Atlantic

The post highlighted an interesting story on how a new entrant in the airline industry, Wow Air, is offering unusually low prices for plane tickets across the Atlantic ocean. Although this deal seems almost too good to be true, it is explained in the article that what gave this airline the unique advantage is the geographic location of its headquarter in Iceland, which allows its planes to fuel at the midpoint and thus enabling the company to reduce cost on a large scale.

As Lindsey has pointed out, Wow Air will likely achieve huge success and steal many customers from its average competitors by adopting this cost leadership strategy. What makes me curious is the chain/spin-off effects of the launch of this cheaper option; as an disruptive innovator, this new player has the potential to bring about huge changes within the market, and may even threaten the existing incumbents, including large companies that currently dominates a significant portion of the market share. However, Wow Air should also develop other strategies, and especially to focus on marketing efforts so they can quickly expand so they can have more opportunity to equally compete with the bigger airlines.

Work Cited

Fredman, Roberto A. “Wow Air Launches $99 Fares across Atlantic.”Gloucester Daily Times. The Washington Post, 30 Oct. 2014. Web. 01 Nov. 2014.

The growing popularity of its existing apps as well as web traffic of National Geographic’s official site is signaling that it was a right decision for the magazine to offer different alternative channels to its customers. As highlighted in this article, the decreasing amount of magazine subscription and high demand for fast, convenient updates was the driving factor behind these changes, and so far the organization is receiving positive responses for providing more options involving digital media.

This change, as natural and expected as it seems with the increasing trend, is not only broadening its access channels; in a way, the newer multi-feature/function platform is also opening doors to a different segment of users, and therefore reaches into several niche markets of groups with particular interests and hobbies over the internet.

What I really like about National Geographic’s approach is that rather than replacing its print publications with electronic versions, the newer platforms are actually aiming to deliver users a different experience that adds value on top of what readers get out of the magazine. Described as adding in “new muscles”by Susan Goldberg, the Editor in Chief, National Geographic is confident at attracting more younger audience as well as sustaining what its already good at.

Work Cited

Yu, Roger. “A Faster pace for National Geographic Magazine.” USA Today. Gannett, 02 Nov. 2014. Web. 02 Nov. 2014.

Comments on Heidi Upham’s Blog post: Ben and Jerry’s – More Than Just Ice Cream

At more than half-way through the course, many topics mentioned in earlier lectures are starting to come back, interrelated and overlapping with one another; it is interesting to see how different aspects we discussed in class connects and influences business in different ways. For instance, the article on Ben and Jerry’s new position against GMO involves several aspects we discussed in class that could influence the company’s performance, such as ethics issues, brand image development, competitive strategies, value prepositions, CSR and CSV.

Just as Heidi mentioned, by contributing back to the community through its many initiatives (i.e. its foundation and support of grassroot organizations to promote change), the firm is also benefiting itself by reshaping and improving its overall image. This effort on being socially conscious also fits in with the transient approach in terms of strategies. One of things we have discussed earlier in one of the tutorials was how study shows customers tend to be more concerned over the impression of a brand than the difference among the product themselves. Thus, by creating a positive, relatable image for the customers, the brand is well on its way of establishing an alternative (yet effective) way of brand promotion.

What really interested me was the primary purpose of its website: rather than focusing on its products, Ben and Jerry’s marketing team has obviously recognized the importance of letting its customers know the company’s value and the ways it operate. Today, this is becoming increasingly important and more influential on the public’s buying decisions, as public awareness and demand continues to be magnified by media and internet.

Works Cited

Terri Hallenbeck, The Burlington (Vt.) Free Press. “Ben and Jerry’s Says Goodbye to GMOs.” USA Today. Gannett, 15 June 2014. Web. 30 Oct. 2014.

Upham, Heidi. “Ben and Jerry’s – More Than Just Ice Cream.” Heidi Uphams Blog. UBC Blogs, 4 Oct. 2014. Web. 29 Oct. 2014.

Comment on Haydn Shaughnessy’s post – “Disruptive Innovation and the Retail Experience”

Often, when we think of the term innovation, we will automatically associate the concept with something along the line of technological advancement. However, is this always the case?  In his post, Haydn Shaughnessy used the example in the retail industry to address the “distortion” of the concept.

Disruptive innovation may not always involve more sophistication than the existing strategies sustained by incumbent firms. In fact, I agree with Shaughnessy that the high popularity and demand for innovation and creativity in the business world today is becoming “distracting.”  Many mix the idea of something better with something that is only more complicated. In reality, however, a good innovation could just mean deleting out the factors that don’t work in existing operational strategies or improving the structure of commonly used models. Essentially, what makes such an innovation revolutionary or disruptive is how it presents a new and more effective way of performing the same task (which in result may harm those who are not prepared to adapt).

On the other hand, it is also true that technology is important in driving industries forward and forcing businesses to transform. For instance, when I visited my grandparents over the past two Summers, I noticed that a lot of bookstores and CD stores are shutting down in Beijing. Just like how the HMV in downtown Vancouver closed its doors a few years ago, entertainment retailers were heavily impacted by the increasing availability and accessibility of digital file downloads. iTunes, in this sense, was certainly a successful disruptive innovator that pressured and drove its competitors to conform.

Nonetheless, what ultimately makes a new idea or method successful is how well it can simplify or solve a problem in the most direct and effective way, so that all stakeholders can benefit in a more convenient manner.

Work Cited

Shaughnessy, Haydn. “Disruptive Innovation and the Retail Experience.” Disruptive Innovation and the Retail Experience. HYPE Innovation Blog, 9 July 2014. Web. 22 Oct. 2014.

Image (url):

http://blog.vistage.com/wp-content/uploads/2013/04/disruptive-innovation.jpg

B.C. Aboriginal groups protesting against Embridge’s Northern Gateway project in Edmonton

For decades, the disputes over traditional territories and land claims between the Canadian government and First Nations groups remained as an unresolved issue; over the years, numerous development projects and decisions struggled with this “external threat” (which can be categorized as both political and social influences under the PEST analysis), and Enbridge’s pipeline project is for sure no exception. Thus far, progress remained slow and little definite agreements have been made. Tracing back to, we can see the long lasting negative impact as well as financial cost (comparable to a legacy cost) of the historical wrong done to the indigenous people over a century ago.

Perhaps a better alternative solution is for the provincial government to form more partnerships with Aboriginal leaders and First Nations community in the development of disputed territories/areas. If these claims can be settled through collaboration,  then what is originally perceived as a “threat” into a new opportunity (recall that in previous lectures, we discussed as a class how the different sections on a SWOT grid is inter-related and changeable) that can actually benefit both stakeholders. For instance, these partnerships can allow the government and corporations to grow the economy and benefit financially, and at the same time First Nations people can also benefit from regional development and more job opportunities. This, of course, requires a willingness from both sides to step back, compromise on equal scales and to move forward with a new attitude.

Article Links

Cooperative Land Deal Opens New Chapter for Three Metro First Nations

First Nations buy provincial properties, extinguish land claims on others

B.C. Premier Urges Cooperation, Not More Litigation, as Government and Natives Reach ‘new Fork in Road’

Background: The Indian Act

Works Cited:

Lee, Jeff. “Cooperative Land Deal Opens New Chapter for Three Metro First Nations.” Www.vancouversun.com. The Vancouver Sun, 28 Mar. 2014. Web. 05 Oct. 2014.

Lee, Jeff. “First Nations Buy Provincial Properties, Extinguish Land Claims on Others.” Www.vancouversun.com. The Vancouver Sun, 9 Apr. 2014. Web. 05 Oct. 2014.

Montpetit, Isabelle. “Background: The Indian Act.” CBCnews. CBC/Radio Canada, 14 July 2011. Web. 05 Oct. 2014.

Pynn, Larry. “B.C. Premier Urges Cooperation, Not More Litigation, as Government and Natives Reach ‘new Fork in Road'” Www.vancouversun.com. N.p., 12 Sept. 2014. Web. 05 Oct. 2014.

Ordering gifts online is getting more popular every year; it is certainly convenient, however, except for the disappointment of recieving the actual present after the special day. After years of dealing with refunds and customer complaints, Amazon is finally taking a new approach to improve on what is described as the “cardinal sin of online retailing” by Stone in his Business Week article.

Previously, Amazon has been heavily reliant on the UPS, its largest partner, to handle a large portion of its packages. This eventually became a serious a problem as demand expands. Recently, Amazon turned to Postal Service to expand on its key partners list. At the same time, U.S. Postal Service is also adjusting their service rates to better compete with its major competitors, UPS and FedEx. In addition to lower prices, USPS also have the competitive advantages in parking as well as providing more services on holidays/week ends. On the other hand, building more fullfillment/sortation centers across North America will also allow Amazon to have more flexiblity in shipment options. In other countries such as China, Amazon is already offering direct shipping with its own channel that typically deliver goods in less than a week.

These two changes made can potentially solve the biggest problem that the company faces: late shipments is not only costing the company money, but also its brand image and buyers’ trust. Fortunately, Amazon’s management was able to identify the source of issue and make correct operational decisions (discussed in Class 6) to fix the problem. It is vital for online sellers like Amazon to strengthen its customer relationship, and that brand promise can only be established by more efficient services, thus they can use their value proposition to their best advantage.

Article Links:

Amazon’s Grand Plan to Avoid Holiday Delivery Snafus Again

Amazon Casts Its Vote With the Postal Service

The Postal Service’s Biggest Advantage Over FedEx: Free Parking

Citations:

Leonard, Devin. “Amazon Casts Its Vote With the Postal Service.” Bloomberg Business Week. Bloomberg, 11 Sept. 2014. Web. 28 Sept. 2014.

Stock, Kyle. “The Postal Service’s Biggest Advantage Over FedEx: Free Parking.” Bloomberg Business Week. Bloomberg, 05 Sept. 2014. Web. 28 Sept. 2014.

Stone, Brad. “Amazon’s Grand Plan to Avoid Holiday Delivery Snafus Again.” Bloomberg Business Week. Bloomberg, 26 Sept. 2014. Web. 28 Sept. 2014.

Image: http://goodereader.com/blog/uploads/images/amazon-may-start-charging-sales-tax__oPt.jpg

An August 2014 report by Kantar revealed that Target has adjusted its pricing strategy to offer the same goods for almost 4% lower than what Wal-Mart charge. I still remember when Target first entered Canada, a majority of customers (including my own family) complained about its high prices. In spite of its new pricing strategy, Target Canada still can’t completely erase its impression for selling household items at a higher price than its U.S. stores. However, what was more shocking to me was that Wal-Mart is losing its price competition against Target.  With its efficiency, short inventory period and policy of cutting down the manufacturers’ profit to a bare minimum, Wal-Mart is known for having a competitive advantage in its network and channels.

In Class 6, we learned about the importance of operation decisions and how that is linked to the accounting aspects of the firm. From looking at the example of big retailers, we can see that an efficient distribution channel with quick inventory turnovers can ensure a company’s steady cash flow as well as reduce its costs and depreciation for goods sitting idle. Ultimately, the nature of retail industry forces the retailers to compete in pricing, on top of convenience and efficiency for customers. Although Target may be behind, it is still the correct decision because price and convenience is what keeps retail stores survive in this age with more and more direct sellers.

Article link:

http://www.theglobeandmail.com/report-on-business/target-canada-winning-price-battle-with-wal-mart/article20730395/

Strauss, Marina. “Target Canada Winning Price Battle with Wal-Mart.” The Globe and Mail. Theglobeandmail.com, 22 Sept. 2014. Web. 22 Sept. 2014.

Cool new features of the iPhone 6? Wait, first of all, where’s the classic looks? In terms of both size and design, the new model is almost an exact copy of its rival brand, Samsung. The so-called “new” payment feature is actually a fairly old technology that already exist/is widely used in Asian countries for several years. The concept of a “phablet” is neither new nor original, just look at with the dozens of smart phones on the market. As a result, Apple’s stock prices actually fell by almost 40 cents on the same day it launched the iPhone 6. With its lack of innovation and creativity in design, it wasn’t surprizing to see the industry’s responses and disappointment among speculators.

In spite of all the negative comments, many Apple fans still pre-ordered/lined up outside the stores for hours before the launch; in fact, the new iPhone already sold out on the day it went on sale. This is a very interesting phenomenon, and we can certainly see this as an example of how successful branding can save a company from losing its customers. Even though the product itself does not meet up to the public’s expectation, the company will continue to make profit by focusing on its brand and marketing strategies. This explains why it will be difficult for smaller companies to compete with corporations like Apple, even with far more powerful/innovative/high-tech products.

Article Link:

http://www.forbes.com/sites/rebeccafannin/2014/09/13/launch-of-apples-iphone-payments-fails-to-dazzle-chinas-more-advanced-mobile-market/