September 2014

New Baggage Fees-Do We Still Fly?

WestJet recently introduced a new fee for passengers who wish to check one bag on their airlines this month. Previously, your first checked bag within a domestic flight across Canada was free-but not anymore. $25 will get your bag under the plane now, a move WestJet says it to keep ticket costs lower to compete with new competition expected for cheap flights across Canada.

Is keeping ticket prices low really going to keep customers choosing WestJet if they have to pay for their checked bags? According to this article, Southwest is planning to bring service to Canada as well. As competition gets steeper, I think WestJet should be doing the opposite of their strategy, like making a second bag free. Their business model outlines, that the option to not pay for a checked bag will appeal to customers. However, personally it is doing the opposite, and pushing myself to look for other options (ie. new competition airlines) for flights. Unfortunately for the time being, Canadian customers don’t have much options when it comes to flights across Canada, so we are stuck with paying whatever Air Canada and WestJet decide for us. If we want to fly with a checked bag, we must be prepared to spend that extra $25.

Air Canada expected to join WestJet in breaking out new baggage fee

Apple’s iPhone 6

As Apple does every September, a pattern in the last four years, the new iPhone models were released as well as the announcement of Apple’s newest product, the Apple Watch. Pre-orders for the iPhone 6 surpassed the previous record of pre-orders in a 24 hour period set by the iPhone 5 in 2012, with over 4 million within the first day. This statistic amazes me, and how dedicated Apple’s customers are to their company. For me personally, Apple has done the same and hooked me to their products and their company. Apple is the leading smartphone maker in the world, and I think for good reason. Their business model, and methods of attracting customers are much different than competitors; one I believe is more personal. These products are tailored to customer’s needs, one where their technology is made to enhance their customer’s lives and be used as a tool to make daily tasks that much easier. Ethically, to me, Apple has done a superb job in creating a positive reputation for themselves. Whether it be their environmental practices with regards to production and consumption, or their partnership with Red products, Apple has involved itself in philanthropy and the environment. For these reasons, Apple continues to strive and succeed in this competitive market.

apples-new-iphone-6-smartphone-models

 

http://www.jobsnhire.com/articles/11238/20140915/apple-iphone-6-preorder-sales-record.htm

Business Ethics-Nike

Many international multi-billion dollar companies practice outsourcing; a term used to describe the practice of creating contracts and business deals outside of a company’s home country. Many businesses have done this by creating plant operations in developing countries as worker regulations are significantly less harsh, or non-existent, and companies can get away with paying workers less. Both Apple and Nike have been accused of exploiting workers in their factories across the globe. Nike faced international scrutiny of factory conditions and exploitation of its workers, and was forced to begin to change their policies on these issues. Apple as well was put on centre stage about their practices across the globe in creating their popular products. Now, Nike is one of the highest advocates of worker safety, and has created code of conducts to their suppliers. But why did these multi-national companies think they could get away with worker exploitation in the first place? The trend seems to be that businesses will do things ethically wrong, until they are revealed by the media and act as if their practices are a complete shock to them. When making decisions, businesses need to think about the public’s views on the choices they are making, and how ethical their decisions will  be, before the media finds out, not after, and the damage is already done.

 

Original Article:

http://www.economist.com/node/21551498