China is quickly growing to become the world’s next great superpower. It is the truth. However, many people wonder what will happen in this often secluded Asian country where there is drastic increase in numbers of middle class families which mean increased purchasing power. The demand for foreign products has driven the frenzy for products such as Apple iPads and iPhones which is popular among the growing population of Chinese young adults. The upper class of China’s elite are now looking into purchasing some of the world’s most luxurious brands such as Louis Vuitton, Hermes, Armani and Versace just to name a few.

This is the power of branding, the imagery that possessing these luxury goods defines who you are as a person often commits people to greed or in many cases nowadays, creating fakes.This is a growing issue in China because often prices are so high for the real item yet the demand for these brands is ever increasing. In my opinion, I think it is good that China is opening up the markets for foreign goods, however, the government needs to crack down on those people who are committing crimes by creating forgeries that sometimes can harm people, in the case of tainted milk products.

Full Article:

Economist

http://www.economist.com/node/21542819

In the past 10 years, the technological industry has seen drastic change never seen before in history. Google Inc, founded by Larry Page and Sergei Brin, has now grown so large and powerful, many analysts are pondering what might come next. In a recent acquisition  Google purchased Motorola Mobility Holdings for $12.5 Billion which means Google is another step closer to dominating the cell phone market. The introduction of Google’s Android technology was a direct strike aimed at challenging Apple Inc’s OS which is prevalent in all their popular products. However, with this recent acquisition  many now are questioning whether other partners such as Samsung will continue to cooperate because of the new threat being posed which in turn, means profitability to competitors such as RIM and Apple.

Google might be powerful, yet they lack in specialization in a specific field or industry. Companies such as Apple has already specialized and monopolized the personal music player market and now deem a large portion of the cellular phone industry due in part to its success with the iPhone 5. What Google needs to do is stick to what they do best and not dabble in other industries because that often leads to wasted time, resources and man power. After careful analysis, the best course of action for Google is not to buy up massive amounts of start up software companies but instead, hire more engineers and personnel to create it instead.

In response to Mark Sha’s post about Walmart, I can say that I agree with his analysis of the company and the situation. Walmart, being one of the biggest and most successful retail stores in North America, it is safe to say that their success has been contributed largely in part due to their efficient, supply chain management. Because they are so massive carrying thousands and thousands of products, keeping track on inventory is often a hassle that is hard to track down.

Using digital mobility is an incredibly smart move like Mark mentioned and I believe that this will propel Walmart to even greater heights. There is a story I heard on the news that if a Walmart wants to move into a neighborhood  they have to have special approval from the city and the council because whenever a new Walmart comes into a region, all the small businesses cannot compete with them and all go out of business. This is evidence of Walmart’s success in what they are currently doing and will continue to keep doing in the near future. Competitors seriously need to watch their backs!

Link to Mark’s post below:

https://blogs.ubc.ca/marksha/

Recently in Comm 101, we were fortunate enough to have Janice Cheam come and share a little bit about her entrepreneurial success in the industry of energy conservation. Janice formed Energy Aware, back in her university career, which focuses on providing customers with tools to monitor their kilowatt usage around their residence in an effort to cut back on wasted energy use. Her success with the Smart Meter, has been building ever since and continues to grow with the support of major energy distributors in British Columbia and the United States.

In our present day and age, clean, renewable energy is the key to our futures. The dependence on oil has grown to record breaking levels, and the ozone layer is depleting at an exponential rate.  What Janice is creating, not only helps to put an end to the problem, but also provides customers with a strong valuable product that introduces cost savings. It is inspiring how a small idea could gradually bloom into what it is today in the span of a couple years, showing how entrepreneurs in this new era, has shifted their focus to creating something not only with profits in mind, but with the intentions of creating something impactful to the society they live in.

Zara clothing has always been a popular choice for adults and children alike offering up-to-date trendy looks for every season. Many people might ask how they do it. Well according to the article, Zara is way ahead of the fashion industry and has an efficient supply chain that gets orders shipped and delivered with accuracy. One of Zara’s strong points is the fact that they have their own designers and craftsman working all the time in Spain, then they use their expansive distribution network to pass on the products all around the globe.

I am amazed at how Zara is so efficient and organized when it comes to shipments and deliveries  This shows that the company’s supply chain and management is very strong which translates to better customer satisfaction. For example, each Zara store can send an inventory request to the head office designating one or two pieces of clothing and the store will fly by air the product immediately. This is why Zara is so successful compared to competitors such as H&M etc. Customers trust and know that this company is reliable and feel good shopping at their stores which is great for continuing success.

Full info can be found here: http://www.businessweek.com/stories/2006-04-04/zara-taking-the-lead-in-fast-fashionbusinessweek-business-news-stock-market-and-financial-advice

Business ethics. Usually business people are scared of this term. Why? Because usually people take shortcuts and cheat the system in order to maximize their wallets and improve business. It’s wrong and people still do it because of money and greed. As the next generation of business leaders, it is important for us to recognize having good business ethics is crucial to succeeding not only in the business world but in life.

Having good ethics as a company is a positive aspect that customers truly recognize. Helping out in the community, sponsoring social enterprise projects, not taking production shortcuts, these are all good examples of positive business ethics. No one wants to be the company that is tarnished by the media or involved with a major scandal in which customers consumed or purchased products which in turn resulted in injury or even death because of negligence.  I want to succeed in the business world, however, I will never betray my values or morals in order to achieve greater revenues at the expense of others. That is the key to success.

October marked the date for the coveted iPhone 5 release which as usual, caused a frenzied stir among loyal fans world wide waiting long lines to acquire the new phone. This phenomenon is no surprise however, because this has been happening for years as Apple has dominated the technology sector with new innovative ideas led by the late Steve Jobs. The one thing that captivates economists and investors alike is the fact that Apple has the power to attain extremely loyal customers that are willing to buy the new products when they are released even though they are almost the same in terms of features and functionality.

From the Apple Inc Website here are some new specs:

“It’s hard to believe a phone so thin could offer so many features: a larger display, a faster chip, the latest wireless technology, an 8MP iSight camera and more. All in a beautiful aluminum body designed and made with an unprecedented level of precision. iPhone 5 measures a mere 7.6 millimetres thin and weighs just 112 grams. That’s 18 percent thinner and 20 percent lighter than iPhone 4S. The only way to achieve a design like this is by relentlessly considering (and reconsidering) every single detail — including the details you don’t see.”

Even with a small moderate amount of reinvention, Apple already sold millions of these new phones and it is truly astounding how Apple’s marketing and brand association is so key to their success.

Target has recently announced that they will be introducing a multitude of stores in Vancouver and all across Canada. Target has been a well established brand in the United States for many years now and continues to grow and compete with major rivals such as Walmart. With this new introduction, many Canadian customers are pleased that they can now have access to cheaper, US themed goods that are quite sought after in today’s economy. Quoting the Huffington Post “The U.S.-based clothing company plans to open close to 200 new stores and will hire some 27,000 employees.” This means that there will be more jobs available, helping boost Canada’s unemployment and economy with the expanse of new job opportunities.

However, in my opinion, I view multiple negative effects this new introduction could have on our Canadian economy. With Walmart already dominating most of the competition around them (no one can really compete with their cheap prices), introducing another retail behemoth could potentially destroy many of the small businesses around the country that are struggling amid these major suppliers. This could cause small business owners to go out of business and cause problems to arise not only financially but economically as well.

Apple Inc, one of the world’s largest technological companies and an industry innovator, has admitted to using child labor in factories across China, their main source of manufacturing. Many loyal Apple consumers were shocked at these revelations because no one expected such unethical issues stemming from such a reputable company that is world renowned. Prior to these allegations, Apple Inc has already been criticized heavily for having unsafe working conditions in their Chinese factories. Workers are often made to work 60+ hours a week while under very poor health conditions which led to workers being “poisoned by n-hexane, a toxic chemical that can cause muscular degeneration and blur eyesight.” 

The major question lingering is that whether or not Apple should improve the factory conditions but at the expense of possibly higher costs for the consumer or compensate workers and keep regulations as in?

After careful consideration, I strongly believe that Apple should closely review their foreign manufacturing plants and ensure that these factories are adhering to the safety guidelines and regulations set out by the company. Many consumers do not realize what truly goes on behind closed doors of a company and it is our responsibility to seek out the answers before buying products from certain companies.

More information can be found at The Telegraph

http://www.telegraph.co.uk/technology/apple/7330986/Apple-admits-using-child-labour.html

Last week in class we discussed the issue in Russia at the moment regarding heavy drinking and the government’s role in controlling the consumption by most of the population. As we read from the article, vodka and liquor plays a significant role in Russia’s lifestyle because according to the Globe and Mail, “official data showing the average Russian drank 18 litres of pure alcohol each year.” Due largely in part to these staggering statistics, the government has now introduced new legislation and policies to curb major alcohol abuse. This excerpt from the Globe and Mail also says, “ Russia has moved to triple the excise duty on beer and is considering drastic limits on where and when beer can be sold, such as banning the sale on street side kiosks.There are also plans to raise duties for vodka, but these are separate measures that do not take effect yet.” Although many believe the Russian governement is taking the right steps towards stopping alcohol dependancy but this poses a major question which we have debated about:

Is this the role of government or business?

The following is my stance on the issue but feel free to voice your opinion as well:

The government and business should both play a part in curbing excessive heavy drinking in Russia. The government’s job is to keep people safe and healthy, therefore, instituting a wide array of new laws and bans that are aimed to stop the rise in alcohol consumption. However, in a business stand point, this has both a positive and negative stance because minimum prices for alcohol will mean even higher profit margins when products are being sold but the downside is because of the new price increases, people who earn minimum salaries will have to cut back on their consumption meaning possibly lower sales.