Source: http://www.theguardian.com/technology/2013/oct/16/amazon-permanent-jobs-christmas

Amazon’s value proposition is actually relatively simple- to make simple the online shopping experience for consumers as much as possible. This Christmas, Amazon is creating over 800 permanent jobs before the Holiday season so that demand will be adequately met.

However relevant to the end consumer, Amazon’s decision to hire 800 workers in their UK distribution centres is creating jobs and opportunities for the temporary workers currently stationed at that location. Existing workers who wished to take the holiday season off will be able to do so, while those who needed the extra money are given a chance to work. Amazon’s decision to hire more workers creates value for members within their distribution factory and ultimately builds the corporate culture within the centre.

Perhaps the most enduring aspect of Amazon’s value proposition is that they have been spectacularly consistent at delivering their promise. Amazon makes it a priority to promise the same level of quality (especially as it pertains to receiving products in a timely manner), regardless of the season or demand at their distribution centres.

By establishing their frame of reference as a reliable online shopping service, consumers have the confidence to trust the Company during times when receiving a product on time is absolutely critical. Amazon’s compelling point of difference is the consistency and the accuracy of their deliveries, while they leverage their superior point of parity as being an online super-marketplace. Aileen blogged about Amazon’s entry into the online grocery business, which is bound to involve a fast-paced delivery model- a great fit for Amazon’s superior operational techniques.

http://www.forbes.com/sites/meghancasserly/2012/08/08/heres-what-happens-to-google-employees-when-they-die/

For many, working at Google is the dream job. Not only are the projects undertaken by Google challenging and stimulating, the tech-giant is also known to have one of the best corporate cultures in the World.

“Googlers” get benefits such as free haircuts, complimentary on-site child minding, and gourmet meals served on the Google campus, which are again, free of charge.

Google employees are also given “spare-time” (which is still compensated) to experiment with ideas and also given adequate resources so that their ideas may come to life. In fact, Google Maps was a result of the “spare-time” given to employees. Google’s corporate culture has resulted in happier, more diligent employees, but at the same time has produced products that enrich the life of consumers while making a nice chunk of change for Google.

Because it is such a great place to work- and tons of people know this- Google is also able to attract the best engineers, designers, and programmers to their company because of their amazing corporate culture. In a way, the more Google as a company cares for their employees, the more they, and society, care about Google.

Humphrey Su’s blog post on Yahoo’s HR policies are in stark contrast to Google’s outgoing ways. Instead of promoting creative freedom, Yahoo’s highly competitive nature has resulted in a cut-throat corporate culture intimidating and ridiculing employees.

http://tech.fortune.cnn.com/2013/11/14/pinterest-plots-its-monetization-strategy/

After Facebook and Twitter released their respective IPOs, Pinterest is looking for ways to seem more attractive so that it too can go public. However, Pinterest faces an issue not unknown to Facebook or Twitter: generating revenue.

Digital scrapbooking site Pinterest is a blog-based platform where users ‘pin’ images, quotes, or videos they find interesting to their profile. At this time, Pinterest is experimenting with “promoted pins”- images that display a company’s ad, or any other marketing they wish to show the consumer. This strategy is not unlike the ones adopted by Facebook and Twitter- the service remains ‘free’ for the customer, but users are subject to ads and promotions.

In order to differentiate itself from the competition, Pinterest also plans to leverage the fact that no vital personal information is publicly shared on the website. Because users do not need to be associated with a Pinterest account in the same way Facebook or Twitter users are, the Company is free to share or sell data without litigation.

By keeping track of which “pins” are the most popular, companies purchasing data from Pinterest have the potential to assess which trends, ideas, or products are trending and analyze the data to make informed marketing decisions.

http://money.cnn.com/gallery/smallbusiness/2013/10/29/walmart-contest-finalists/2.htm

Walmart’s “Get on the Shelf” initiative is a contest devised by the retail corporation to attract aspiring entrepreneurs into their business. Innovators from all around the world pitch their business ideas to Walmart for a chance to have their product sold at Walmart’s thousands of locations worldwide. Beyond this, Walmart is also going to invest in such a company to ensure it has the necessary resources to improve, expand, and refine their business.

Using a entrepreneurial mindset similar to those who presented in COMM 101, the top five finalists in the contest have designed a product to address a specific issue or problem in society today. Synette Tom, founder of Gibi Technologies, devised her dog-tracking technology after she lost her Golden Retriever at the park one day. Likewise, Angelle Abright came up with Chemo Beanies (a fashion house selling headbands) after she lost all her hair from radioactive treatment and was looking for alternatives to current headwear.

Walmart, which is considered by some to have the strongest buyer power in the world, is leveraging this power to bring relevant and clever products to consumers. On the other hand, for a prospective entrepreneur, there is perhaps no better place to start a business. Products sold at Walmart benefit from high visibility and strong market coverage- virtues that are often difficult to gain for a start-up.

http://money.cnn.com/2013/11/12/smallbusiness/b-corp-blueavocado/index.html?iid=A_SB_News

BlueAvocado has built an entire empire selling reusable totes, travel gears and lunch bags. A major point-of-difference, however, is that Blue Avocado sources nearly all of its material from recycled plastic bottles. The company also wishes to make clear that the Company’s intentions are genuine and not marketing-driven. As a result, the company has since gained ‘B-Corp’ status- a certification that shows a company is committed to solving both social and environmental issues, despite a profit-driven model.

By rethinking products and markets, BlueAvocado has successfully made a difference in the environment while appealing to environmentally-conscious consumers. Their goal of expanding total value economically and socially has emphasized Blue Avocado’s triple bottom line. Instead of totes and travel gear made by toxic plastics and wasteful material, Blue Avocado’s focus on identifying and expanding the connections between economic and societal progress is paying dividends in profit and for the environment.

Despite other companies over-promising and under-delivering statements to be “sustainable”, BlueAvocado’s B-Corp status defines the expectations consumers should have of the company in terms of sustainability. After BlueAvocado obtained this status in March 2013, the business erupted and is now featured in over 300 Target Stores.

Tim Leung blogged about Ikea’s initiative towards a low-carbon future by cultivating wind energy to create shared value. Both Ikea and BlueAvocado are changing their business practices for the ultimate betterment of society as a whole.

http://money.cnn.com/2013/11/13/smallbusiness/second-startup-launch/index.html?iid=SF_SB_Lead

After Bob Diener sold Hotels.com for a highly lucrative $1.2 billion, Diener launched Dallas-based Getaroom.com two months after the five-year non-compete agreement ended.

The premise behind Getaroom.com was to be a leaner, more efficient, and focused alternative to Hotels.com. Instead of offering airfare, vacation packages and car rentals, Getaroom.com focuses solely on providing accommodations at the lowest price for the consumer. To be as cost-efficient as possible, advertisements are campaigned around social media, word-of-mouth, and e-mail.

In Why the Lean Start-up Changes Everything by Steve Blank, the lean start-up was considered by Blank to be a superior business strategy as it allows for agile development, among other benefits. In the information age, business models based around the internet are always subject to radical and unpredictable shifts in behaviour. As a result, the leaner and more dynamic a business is, the better the start-up is able to cope with major disruptions in the market or in business operation.

In addition to agile development, lean start-ups also benefit from being able to monitor and support customer development more quickly and efficiently. Getaroom.com first marketed to the consumer using expensive advertisements, but soon found that they were fairly ineffective. By switching over to leaner means of marketing, the company is able to assess which strategies were most effective, and decide whether to adopt new strategies or to push a successful existing one.

http://business.financialpost.com/2013/06/10/air-canada-pushes-ahead-with-cost-cutting-aims-to-slash-pension-deficit-by-2020/

After Air Canada’s financials were plagued by its multi-billion dollar pension solvency deficit for years, Canada’s largest airline is finally ready to cut costs. Not only this, but the airline is planning to diversify their fleet options to ensure that both higher efficiency and lower costs can be reached.

In a time when many major American airlines- United, American Airlines, Delta- are struggling to remain profitable, it is refreshing to see Air Canada re-focus their business while making sound financial choices. However, their decision to offer “Air Canada Rouge”, a budget-conscious spinoff of the brand, may encounter issues similar to a project gone bankrupt nearly a decade ago, “Air Canada Tango.”

The premise for Air Canada Tango was largely the same as that of “Air Canada Rouge.” Air Canada is planning to throw all short-haul, low-demand flights to this sub-brand, while freeing up larger jets for farther and more popular destinations. A decade ago, Air Canada Tango failed because the costs to re-train flight crew were obscene, the cost to purchase or lease the airplanes a ridiculous burden, and the demand for such flights low.

When such a business model failed during a time when gas prices, airport taxes, and labour was considerably cheaper, it becomes difficult to see the rationale for such a sub-brand in an even tougher economic time.

http://www.theglobeandmail.com/report-on-business/economy/housing/toronto-new-condo-sales-see-worst-august-showing-in-a-decade/article14464065/

Toronto sold 633 condos during the month of August. That’s the lowest number the market has converted in a decade. Just two years ago, the same month yielded 1923 sales.

Jim Flaherty, the Finance Minster of Canada, expressed a concern for the Toronto real estate market when he felt that too many new condos were being built. This, Flaherty warns, might lead to a crash.

These worries remind me of a familiar Canadian city gone condo-crazy: Vancouver. With over one hundred new developments across the Metro Vancouver, we follow a pattern of behaviour not unlike Toronto. However, Vancouver was recently crowned- or I suppose dubiously awarded, depending on your stance- the second most expensive place to live in the world. While there are fewer pending developments in Vancouver, a potential adjustment in interest rates coupled with oversupply and high prices might prove just as deadly.

On the other hand, many have pointed towards foreign investment and immigration as major factors lending support to the health of Vancouver’s real estate market. Although they may be keeping the market afloat, their investments generally exert an upward pressure on the price of homes in Vancouver. While these investors might be helping Vancouver avoid a crash similar to the one Flaherty worries will happen to Toronto, the inflated price makes it difficult for first-time homebuyers to make their first investment.

http://online.wsj.com/article/SB10001424052702303492504579112650388231322.html

It seems like Li-Ka-Shing (lovingly referred to as Superman) can’t resist selling- or in this case spinning off- his assets in Hong Kong. In my previous article, the business mogul was busy looking for an offer for his gigantic supermarket chain, Park’N’Shop. Now, less than a month later, Asia’s richest businessman is ready to take his utilities company public.

In an alleged response to the U.S. Federal Reserve’s decision to start winding down its bond purchases, the choice to go public has been rumoured to be based on Mr. Li’s wishes to gain “financial strength” so he may assess opportunities on an international level.

While businesspeople are always looking for new markets to enter, Li-Ka-Shing’s recent impulse to throw away so many of his flagship businesses in Hong Kong must represent some dubious outlook of his on the island’s future. Not only is Mr. Li withdrawing from many of his existing businesses, the report finds he is investing far less in Hong Kong and much more into foreign ventures such as European infrastructure and telecom.

Perhaps most profound will be the aftermath of his decisions. His actions today are sure to depress a population with even more uncertainty about the future. While the vital markets in Hong Kong are growing once again, Li-Ka-Shing’s rash departure from the peninsula might prove too ominous for confidence-lusting investors.

http://www.scmp.com/business/companies/article/1298710/parknshop-merger-will-prove-hong-kongs-competition-law-joke?page=all

When China Resources Enterprise confirmed its bid for business mogul Li-Ka-Shing’s supermarket chain Park’N’Shop earlier this week, it was poised to add another forty percent of the Hong Kong grocery market share to an existing five. If their bid is sustained and there are no legal ramifications, the territory is effectively cornered by the two supermarket giants of Hong Kong- Park’N’Shop (or whatever the operating name in the future) and rival store Wellcome.

When combined, that’s a projected eighty percent of the market share shared amongst two companies. A whopping eighty. Did someone mention competition laws?

The complete absence of any scrutiny or political acknowledgement is especially troubling in this dubious company, considering previous allegations of price-fixing between the two. (http://www.scmp.com/article/998034/fix-supermarket-shelves-study-suggests)

Price-fixing agreements- which is often derived from this alleged pseudo-competition happening in Hong Kong- is freakishly toxic for a free market. It is unapologetically unethical for the consumer, eventually driving prices up, and the survivability of other establishments down.

A consumer in Hong Kong’s free market should expect prices set by the forces of competition in combination with the natural ebb and flow of the economy. This may prove to become extremely difficult when consumers are faced with limited choice.

Then there are the external trading companies and shareholders affected by the lack of competition. Employees might have their opinions on working hours and compensation sequestered, and produce suppliers potentially face less-than-favorable trading partners in Hong Kong.

Indeed, there are provisions in Hong Kong law preventing market dominance, but they don’t happen to apply to mergers and acquisitions. That sounds to me a bit like a supermarket that is not legally allowed to sell any consumables- utter idiocy.