The focus of October 28th’s class was Market Research and Consumer Behaviour. This concept evidently shows the connection of business to disciplines such as psychology, sociology, and anthropology, (and OB!). When conducting market research, companies aim to determine which cultural, social and personal factors influence consumer behavior buying of their products. Since it is Halloween, I created a mind map of the decision criteria for purchasing… CHOCOLATE
Food in general, is a product in which personal preference plays a major role in consumer behavior. Chocolate, because it is relatively inexpensive, is especially an item which consumers can exercise their freedom of choice because it is a want rather than a need. The decision criteria factors show that people buy chocolate based on what will give them immediate satisfaction.
This past Saturday, one of my favorite bands played a concert at the Vogue Theater. I had known months in advance that tickets had sold out in seconds, but thanks to Craiglist, I was able to snatch a pair from a reseller. While standing in line that evening, there were the typical event scalpers. Even on the small entrepreneurial scale, accounting terms such as “inventory”, “opportunity costs”, and “liquidity” are essential to conduct successful business.
For a ticket scalper, his inventory is the # of tickets which he has purchased. Their liquidity (in this case, how fast they can sell their tickets for cash) is dependent on the ever-changing demand for the event. And demand and price vary as the date of the event draws closer. Because tickets have a termination date, scalpers suffer greatly if they have excess inventory as unsold tickets are a permanently loss. It was stated in class on Oct. 19th that “opportunity cost doesn’t get an invoice, but it can be the most important cost”. This is especially true in the ticket sale industry.
This example of ticket resale shows how accounting and economics are both connected and very prevalent in everyday activities.
The Economics of Ticket Resale: 
In Grade 12, it seemed like on an hourly basis, I was being asked about my post secondary plans. “Commerce, eh? What made you decide to go into business?” Apparently some people hold strong preconceived notions about business students. I had been told we are everything from pretentious to snobby to down right greedy. Of course, the core concepts of Business largely revolve around money: the earning of it, the spending of it, the circulation of it- and with that it is not abnormal to subconsciously associate these principles with unethical qualities like selfishness and corruption. Though some enter Sauder looking to snatch a big-shot, high paying job after graduation, I know I am not the only one who is attracted to the overall life skills that Business offers. I believe that business is present everywhere. It’s not only relevant in financial aspects of life such as grocery shopping, buying stocks, or selling a house. Business skills are social skills, interpersonal skills, decision making skills, analytical skills, even self-managing skills. It is much broader than just the academia spectrum. Commerce is, in my opinion, an all encompassing area of study that has countless real life applications. So yes, I am am a proud first year Sauderite. And I hope to USE my education in the real world.
WestJet airlines has linked a new interline agreement with Cathay Pacific. By allowing each carrier to sell seats on its partner’s flights, travelers coming from Asia will be able to smoothly catch connecting WestJet flights to various Canadian destinations, with a single ticket.
Benefits for WestJet? The new partnership will surely broaden their global recognition and increase amount of international customers, especially as WestJet’s fleet of Boeing 737s don’t have the capacity for transoceanic flights. And for Cathay Pacific? It will make it easier particularly for people traveling leisurely and business men/women from Asia (largely China) to fly with more travel connections. Overall, it’s a wing-win situation. Both airlines are benefiting from big-name brand association in other key regional markets.
An issue that may arise from this agreement might be travelers showing resistance to flying with a small, local, discounted airline. Also, other dual-airline pacts such as Cathay Pacific/United Airlines may increase competition from American market. Another obstacle that WestJet is already facing is the need to upgrade technical systems to keep up with large airline operations.
GAAP: General Accepted Accounting Principles: standard framework of guidelines for financial accounting.
Audited Statement: A financial statement that an auditor has prepared according to GAAP
Securities Fraud (AKA Stock Fraud/Investment Fraud): A practice that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of the securities laws. Typically occurs when investors are enticed to part with their money based on untrue statements.
Hedge Fund: An investment portfolio run by professional money managers who use alternative investment strategies such leverage, programs trading, arbitrage, and derivatives to produce returns for their investors. Hedge funds are restricted investment only available to a qualified investor who typically has over $1M in investible assets.
Portfolio: In finance, it is an appropriate mix or collection of investments held by an institution or an individual.
Investment Horizon: The length of time a sum of $ is expected to be invested. Ex: Typically, the shorter the investor’s horizon, the less risk he/she should be willing to accept
RIM recently unveiled their new tablet computer, the Blackberry Playbook. With its impressive specs such as a 1 GHz dual-core processor, Dual HD cameras, and RAM, it’s definitely going to give the Apple iPad a run for its money. Notably, the Playbook is more compatible, promises top notch security features, supports video conferencing, and is so far the best hardware and software in the tablet market. RIM’s new product might strongly appeal to both corporate and commercial audiences, but with a flood of more innovative tablets (including an updated ipad) expected to emerge before the end of this year, a scheduled 2011 release may be too late. Blackberry has the upper hand in brand establishment, but an undetermined unit price and the overall progress of tablet technologies will play a huge factor in the actual sales of this hot new gadget.
http://www.engadget.com/2010/09/27/rim-introduces-playbook-the-blackberry-tablet/
Briskly walking from class to class, you may have noticed a particular canvas slip-on shoe being worn with some guy “Tom’s” name on it. Who the heck is Tom you may ask? Well “he” isn’t so much a person as a rapidly growing shoe business created by social entrepreneur Blake Mycoskie.
Blake, after a life changing trip to Argentina in 2006, became inspired to establish TOMS Shoes: a company based on a “one for one” business model where for every pair of shoes purchased, a pair will be given to a child in need.
Historically, charitable organizations usually don’t correspond to profitable businesses; they rely on fundraising and donations, both of which are consistently inconsistent. However TOMS has been a leading example of how a new ethical approach to business is becoming increasingly popular, successful, and sustainable.
Based on the stakeholder theory, TOMS seems to have a successful future ahead. Customers are experiencing satisfaction in knowing they’re making a difference, the majority of employees are young, passionate people who actively believe in the company’s mission, and global communities are positively benefiting from the developmental, medical, and educational programs being implemented.
Perhaps businesses can simultaneously be benevolent and self-interested?
