Mingchi Choo's Blog

Traditional methods versus mass production in factories — a battle that is hardly a newcomer to the global stage. Trends in history have shown that people tend to lean towards the latter simply because the decrease in time and costs make it worthwhile to sacrifice a bit of quality.

So, which way will the market of croissants in Paris swing? More and more vendors are using frozen, factory-made variants to cut costs, something which is becoming a growing issue. In a city where many purists who insist that the taste of handmade croissants is superior, will traditional methods win out in the end?

Similarly to the hockey stick industry in Canada discussed during class, traditional methods may gradually be forced out. Lower costs will allow vendors using frozen croissants to lower their prices, hence giving them a competitive edge over those who make them by hand. However, those who use the older methods will be left with a point of difference that appeals to many Parisians. Will the culture-laden population of Paris be able to maintain their strong traditions, or will practicality and the lure of profits win out? It could go either way at this rate.

Related Links:

Canadian Business: The croissant war in Paris

Time and time again, smokers use the same old excuses to put off quitting.

“I’ll stop soon, promise.” “It’s just the stress!” “I’m going to quit eventually.”

Australia, however, has implemented a legislation that aims to make ‘soon’ and ‘eventually’ an immediate reality. It requires grotesque images ranging from cancerous lungs to diseased limbs to be displayed on cigarette packages, as well as other health warnings. Most notably, a particularly interesting feature of the constraints imposed is how brand trademarks have been banned from appearing on the boxes. Even details such as the font, size, and color of all brand names are standardized and identical, which is a more drastic step than any other nations have currently taken.

What does the government hope to achieve with this removal of branding? According to Health Minister Tanya Plibersek, a main focus of these restrictions is to dissuade the younger generation from smoking. With a package that is far from glamorous and that removes brand association, they hope to eliminate the ‘coolness’ that many teenagers associate with smoking. It’s certainly a logical argument in theory, so only time will tell how successful this law proves to be.

Related Links:

Bloomberg Businessweek: Australia’s Gross-Out Cigarette Warnings

McDonald’s has operated in India, where a large percentage of the population is vegetarian or do not consume beef or pork, for sixteen years now. Hence, a vegetarian outlet appears to be the best solution to appeal to the most customers. But the question is: why now? It’s been suggested that the company is trying to make up for a recent dip in global sales.

This is strategic marketing on their part, since with India expected to overtake China for the position of the country with the largest population, there seems to be endless potential for growth. With their brand name and image solidified, now is the time to establish points of parity with numerous other vegetarian restaurants in the country — and what better way to do so than through the introduction of potato patties and vegetable-cheese pastries?

Glocalization isn’t a new concept for McDonald’s. From McLobsters in New England to McRice in Asia, the company has been varying their menu to target local tastes while remaining true to their name. Some have been successful, like the abovementioned items, but others not as much; so only time will tell where their newest venture will end up.

Related Links:

BBC News: McDonald’s opens vegetarian-only restaurant

Bloomberg Businessweek: McDonald’s Plans First Vegetarian Restaurants in India

Forbes: Why Ronald McDonald Is Going Vegetarian

“We have to live. We need money.”

Those ominous words serve as a chilling reminder of the hardships consumers have been turning a blind eye to. We enjoy happy, carefree lives full of gadgets designed to make our lives as easy as possible, while nearly one person is killed every week among the Indonesian labourers who work in tin mines (many of which are illegally operated) on Bangka Island.

Approximately half of this tin will be used for electronics such as smartphones and tablets made by companies including Apple, Sony, Panasonic, Samsung, and LG.

So, is this ethical? Some would argue that we’re providing a living for these people. They’re not being forced into the work, and are aware of the risks. However, it is still exploitation of a vulnerable population. These people are desperate for money, and the mine operators know that. At the very least, it has been suggested that a portion of mine revenues should be used to improve work conditions and safety.

Although it would be far from a perfect solution, I believe that it’s a start. Without a first step being taken, chances are that things could continue as they have for decades without changing.

Related Links:

Bloomburg Businessweek: The Deadly Tin Inside Your Smartphone

What do the following have in common: Maqui berries, pomegranates, mangosteens, and now pitayas? They’re known as “superfruits.”

Enter Eric Helms, founder and CEO of Juice Generation. Five years ago, he began marketing mangosteens as an innovative, new superfruit. However, after a problem with the supplier led to many unsatisfied customers, he has now returned with exclusive import rights to a Nicaraguan fruit called pitaya.

Interestingly, there isn’t a clear definition of what requirements need to be met before being considered a superfruit.  In fact, almost any fruit, including those seen on everyday grocery store shelves, could be considered one thanks  to their various, unique nutritional properties. In other words, it’s a marketing term designed to appeal to consumers.

Helms, along with others in the juicing business, have found a point of parity with this term. Companies often claim that their fruits have miraculous properties like curing cancer (mangosteens, pomegranates) or weight loss (goji, acai) — yet upon further inspection, disclaimers say things such as “no clinical proof.”

Therefore, in this growing industry, marketing is the key to establishing points of difference, and we’ll have to wait and see how Helms’ new business venture turns out.

Related Links:

Bloomberg Businessweek: Pitaya: The Selling of a Superfruit

Abuse of insider connections, a debt of half a billion dollars owed by companies which no longer exist, and artificial inflation of assets and revenue. These are only some of the operations this company has been accused of. If the allegations put forth by the OSC are true, then Sino-Forest Corp., a Chinese company that was once the largest publicly traded forestry firm in Canada, is guilty of extremely unethical practices.

In June 2011, Muddy Waters Research, a short seller, raised the first allegations of fraud against Sino-Forest. That was followed by a series of investigations by forces including the RCMP and Ontario Securities Commission. Since then, the accused company has filed for bankruptcy protection and its shares have been delisted from the TSX. Additionally, the co-founder Allen Chan has resigned as CEO, and the entire senior executive team was replaced since all of them had been implicated in some way.

So, what is the main ethical issue here? The false inflation of income and revenue is at the center of this issue. To boost their stock prices, Sino-Forest circulated money through companies that were owned or otherwise connected to them, with Yuda Wood being a prime example. Yuda Wood was one of Sino-Forest’s largest suppliers, yet upon closer investigation, it was revealed that the company was controlled by the senior executives of Sino-Forest. However, these insider relations were never disclosed. Lying to shareholders to create an illusion of prosperity is highly unethical, and if proven to be true, this may result in one of the largest frauds in Canada.

To deny the charges of fraud, Sino-Forest has launched a private investigation with PwC. The results are expected to be released at the end of the year, having been delayed due to “data-collection challenges.”

Related Links:

Yahoo! Finance: Securities commission accuses Sino-Forest of fraud

Bloomberg: Sino-Forest Engaged in ‘Fraudulant Scheme,’ OSC Alleges

The Wall Street Journal: Sino-Forest Investigation Extended

The Globe and Mail: Sino-Forest says it is owed millions by companies that no longer exist

Sino-Forest’s Website