Governments are essential in order to uphold and further develop countries, however, government’s will never be able to solve every problem they are faced with. Therefore, if the UN were to be fully funded by government funds, they would still need social entrepreneurs and arc initiatives to promote long-tern solutions.

The UN sends workers to foreign countries with extensive resources with hopes aiding a country in need. This has proved to be inefficient as the workers are unable to maximize the resources to their fullest potential. Moreover, social entrepreneurs are specialized within an area therefore they know beforehand the process in order to be successful. For example, if a  worker goes to a city in Uganda with $25,000 and is asked to create a solution—that is a reasonable, however, not 100% efficient. Conversely, if a social entrepreneur would go to the same city in Uganda he/she would know how to allocate the $25,000 properly in order for the city to show the most signs of improvement. The final result suggests that social entrepreneurs create suitable solutions at a more efficient rate then regular workers.

In summary, if the United Nations were fully funded by the government, they would still need social enterprises. Social entrepreneurs are experts in their field of choice therefore they are able to see opportunities and create solutions others cannot. The United Nations must realize that money is only a tool, a tool in which social enterprises use to the fullest potential.

Annie Jiang, in her blog post entitled, “McDonald’s Step Forward” suggests that increased competition (i.e. Chipotle, Panera, Wendy’s) and reduced comparable sales in the past decade, deems the McDonald’s fast food chain out-dated. Jiang summarizes how McDonald’s is looking into electronic; tablet based ordering, which would effectively reduce their labour costs. An innovative tablet-ordering system would not fix all of McDonald’s problems but it will attract a new customer segment and revolutionize the fast food industry. Forbes magazine rated McDonalds the number one fast food chain in the world in 2014. McDonalds is clearly ahead of its competitors but if they wish to stay on top they must continually develop their brand.

This is a prototype of how a tablet based ordering system would look.

Dollar Drink Days are one of McDonalds initiatives that separate them from there competitors.

In my opinion, McDonald’s will be most profitable by altering their menu and providing incentives for customers rather than developing innovative ordering techniques. In economic terms, McDonald’s is in a competitive fast food market in which the company with the lowest prices will draw the most customers. For example, the McCafe program has attracted more middle class consumers away from Starbucks. Why pay $5 for a large Starbucks coffee when McDonald’s is offering a similar product for $2.50. Furthermore, McDonald’s dollar drink policy was an innovative marketing strategy that exploited the average fountain drink station, which has a 90% return profit margin. A tablet-ordering system would offer an innovative technique, however after McDonald’s releases this technique competing companies will follow similar patterns. In summary, I agree with Annie Jiang that an innovative tablet ordering system would prove to be beneficial for McDonalds. However, I would personally recommend McDonalds to continue to develop marketing strategies such as the McCafe program and the dollar drink days in order to continually triumph in the fast food industry.

Additional Information: This link, shows how tablet ordering systems are developing in sit-down restaurants to give an idea of how the tablet idea has become a reality.

Sources Used:

Annie Jiang’s Blog Post Entitled: “McDonald’s Step Forward”

“Top 10 Global Fast-Food Chains.” Forbes 2014: n. pag. Print. Click Here: For Link

NHL: National Hockey League. Established 1917.

Justine Bearss described in her blog post that the National Hockey League was looking to expand their marketing revenues by placing advertisements on every team jersey. She concluded stating that a jersey sponsorship is a unique advertising technique that would provide shared value for sponsors, consumers, and the NHL.

I agree with Justine that advertising on jerseys could be beneficial and potentially revolutionary in North America. However, in my opinion jersey advertisements in the NHL will never be a reality. In the 2013-2014 season the NHL’s total revenue was $3.7 Billion—this was a 12% increase from the previous season. The NHL is excelling without the need for jersey advertising. In soccer, jersey advisement works, but in the NHL the team logo is what fans identify with. The NHL already has extensive advertising along the boards, electronic projections along the glass, as well as electronic media around the arena. Jersey advertisements may bring in extra revenues for the NHL but in doing so they will be changing a culture that has been thriving since 1917.

This photo demonstrates how the NHL’s sponsor’s are advertised along the boards and electronically on the glass. Companies such as Subway, Panasonic, GEICO, and MetLife are exhibited.

In summary, I agree with Justine Bearss, that jersey advertisements could increase revenues for the NHL and their sponsors but their would be a cost associated with this decision. There is a prosperous hockey culture in North America; therefore, I strongly believe that the NHL will not allow jersey advertisements. A change in this business model could elicit negative advertising and ultimately cost the NHL rather than benefit the league.

Sources Used:

Justine Bearss Blog Post Entitled: “Advertisements To Be Placed On NHL Jerseys.”

Mirtle, James. “NHL Revenues to Hit Record $3.7-billion.” Globe and Mail 9 June
2014: n. pag. Print. Click Here: For Link.

In the article, “First Make Money. Also Do Good” Steve Lohr compares Milton Freidman and Michael Porter’s philosophy regarding triple bottom line and corporate social responsibility. Friedman suggests that companies only pretend to care about their social responsibility to maximize profitability. Conversely, Porter promotes the concept of shared value. The shared value principle states that a company will seek opportunity from solving social issues.

This diagram illustrates the relationship between Corporate Social Responsibility and Corporate Shared Value.

Moreover, it is a common misconception that triple bottom line companies[1] addressing corporate social responsibility issues will be unsuccessful and less profitable than competing companies. In my opinion, in the upcoming years more and more companies will utilize Porter’s shared value approach to economics. Sustainability is becoming a global issue because as the population increases exponentially there is a proportional increase in demand for products. Therefore, companies that require scarce resources must take initiative in developing sustainable practices. For instance, Cascade Engineering recognizes that the global energy market is depleting. Therefore, Cascade is striving to minimize their environmental footprint by committing to ISO 14001 standards: reducing waste emissions into the air, land and water.

In summary, the overall goal of any company is to be profitable. However, profitability does not have to compromise the social, environmental and financial aspects of a company. Michael Porter’s shared value concept allows companies to address the triple bottom line and CSR[2] while becoming profitable in the process.

[1] Triple bottom line: (abbreviated as TBL or 3BL) is an accounting framework with three parts: social, environmental (or ecological) and financial. These three divisions are also called the three P’s: people, planet and profit, or the “three pillars of sustainability”.

[2] CSR: Corporate Social Responsibility

Sources Used:

Lohr, Steve. “First, Make Money. Also, Do Good.” International New York Times 11
Aug. 2011: n. pag. Print. Click Here: For Link

Triple Bottom Line Dictionary Definition. Click Here: For Link

Class 15: CSR and Sustainability Notes