Arc Initiative @ Sauder School of Business

What is Social Enterprise?

Although the United Nations receives full funding, the UN simply cannot tackle every social issue in the world. And there are many.

This is why programs independent to the UN are important. Independent contributors often expand the effects of current UN projects.  Sometimes, even, these programs can offer something the UN cannot. Consider the Arc Initiative: a highly specialized program that aims at passing along business knowledge to people in Africa. I don’t think the UN currently has a similar program. Not only is the Arc unique, it enables university students to involve themselves in a global issue. Trying to make a positive contribution to society is difficult, and the Arc makes it possible. The Arc has specific goals that, in conjunction with the UN, subscribe to a better society.

Social enterprise consists of entrepreneurs that, unlike their counterparts, are motivated by social change rather than by money. It is these people that generate global programs, like the Arc Initiative. Regardless of the UN’s subsidizes, right now, the more people and programs dedicated to helping society improve, the better off we all will be.

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Just the name of this blog had me thinking. What is duct tape marketing?

Duct tape marketing is like duct taping a broken window together – it is a cheaper alternative to the real thing; in this case, a new window. This blogs site is directed to small business owners who have limited budgets for marketing.

One of the marketing strategies on the site emphasizes the use of social media. The site offers that because many people spent hours monthly on, say, Facebook, social media is the way to go to promote one’s company – and it’s free. I agree with this. Although I don’t have Facebook, I know the social media site is gradually becoming notorious for, not just paid ads on the side screens, but for small business pages where users can ‘like’ the page. These pages have absolutely no costs associated with them, and businesses can reach many potential customers. Go Duct Tape Marketing!

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Mission Hill Winery in the Okanagan

In business, sometimes the most effective way to succeed is by creating a niche product or entering a niche market. And that’s exactly what Jamie Paquin did with wine. A Canadian from Ontario, Paquin went to Japan for his graduate studies, then eventually started his business.  Today, he sells all types of wine from across Canada to Japanese customers.

Paquin entered the wine market in Tokyo, instead of, say, Paris, because he knew he wouldn’t have much competition. This would allow him to basically monopolize the Canadian wine market in Japan.

Over the past decade, Asian countries have shown great interest in Canadian wine, especially from the Okanagan. I think Paquin has been so successful because of his decision to establish himself in a new market in lieu of joining an existing one. Had he gone to Paris, he would have had to compete with prevailing wineries and large companies.  As an emerging businessman, entering the exponentially growing wine market that wasn’t supplied was the key to Jamie Paquin’s success.

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Air Canada & WestJet Soaring High in Profits

The idea that a flyer’s first-checked bag is free is no longer existent. Starting today, Air Canada’s first-checked bag fee will be implemented. Based on an Angus Reid poll, as described in this article, Canadian’s are very unhappy with this new fee; people believe the fee to be another profit-maximizing scheme.

As a stakeholder, these individuals would be pleased with this new fee. Also, potential investors are more inclined to invest with significant profit on the balance sheet.

As a consumer, I agree and disagree with the implementation of this baggage fee. The airline industry is arguably a money-losing industry. Purchasing news planes, maintaining planes and employing people to operate the planes is costly. And in 2008, with the economic recession, many airlines went bankrupt. However, just this year, airlines such Air Canada and West Jet reported enormous and recording-breaking profits. After reading this, I understand how Canadians do not like this new baggage fee when these two airlines are making ridiculous profits.

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Aerial Shot of UBC’s Vancouver Campus

In October, the university proposed increases in international tuition and residence fees – 10% and 20%, respectively. The school has put forth many reasons for their, somewhat shocking, proposition.

UBC believes it has become a “discount option” for prospective students. Meaning, people choose UBC because it is cheaper than attending U of T or McGill. The University should not be able to justify their price increases by the fact other schools of the same calibre are more expensive. Personally, I think this is a weak argument for what they really want – more money.

However, I think the school’s most ludicrous case is their idea of offering student housing at market prices. Post-secondary is on the verge of being unaffordable for many students. I do not think student housing is supposed to be of market value! We are talking about students! Their  main concern should be to focus on their studies, rather than to worry about their next debt payment.

If I were  a prospective student for the 2014/15 school year having to endure the expense of a 20% increase in housing, I may not chose UBC. However, now that this increase would affect me for 2nd year, I am encouraged to search for off campus housing that is cheaper.

More importantly, UBC is restricting itself to a narrow group of students who can afford its costs, and limiting the potential that a  variety of new students would bring to the school.

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I think Rachel’s blog regarding online shopping is very prevalent. For a concept that did not exist 15 years ago, online shopping is becoming extremely popular. People can surf the web for desired products and then base their purchasing decisions on online product reviews. And all from their living room couches. Online shopping requires less effort and can be less time consuming than physically going to a store.

Although convenient for consumers, businesses with actual stores are suffering. Like Rachel mentioned, Staples Canada has shut down 15 stores in response to declining revenues. Interestingly, however, Staples is trying to adapt by taking a different approach to sales. They, too, now have an online store, even offering products unrelated to electronics. This demonstrates Staples is adjusting their business model to correspond with realities of advancing technology.

Online shopping has created more competition in many industries. Prices for products may be lower than without this outlet, yet, personally, I do not trust online shopping. My family has bought a few items from Amazon.com, and disappointment is all we have ever received. For technology, I prefer to go to an electronic supplier, like Staples or Best Buy, to speak with a sales associate and to tangibly see the product I am interested in buying. For clothing, I like to try-on clothes before purchasing, to ensure I get the correct size and to check for quality. I am unable to do the same with online shopping. Not to mention the hassle of returning goods bought online. Some would say online shopping is the way of the future, however, I see it as a fad that will pass when people start to understand the ill logistics of the concept.

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First Nations at Joint Panel Review for Site C Project

On October 22nd, BC Hydro’s eight billion dollar Site C Project will learn its fate. The Project’s proposition is to built a dam in the Peace River Valley which will generate hydroelectric power by flooding eighty-three kilometres of the Valley.  Supporters highlight the need for hydroelectric power in Victoria, BC. The opposition, consisting mostly of First Nations, say their fishing and hunting practices will be negatively impacted as well as their ability to hold ceremonial rituals.

An external factor impacting an organization’s business model are socio-cultural trends. In this case, BC Hydro is essentially ignoring the voices of First Nations and the implications they face as a result of the Site C Project. Like mentioned previously, their fishing, hunting and ceremonies will be affected. Canada already has a  history of severing its relationship with Natives; Canada should focus on repairing this weakened relationship instead of taking a step backwards.

Not only will First Nations be affected, wildlife habitats will too. The flooding of the Valley will ruin the habitats of animals in the area. I do not consider this to be socially responsible on the part of BC Hydro. British Columbians are sensitive when it comes to protection of the environment and animals and, thus, companies, like BC Hydro should not be able to progress with projects that do not correspond with the values of society.

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Downtown Vancouver

Housing prices in Toronto and Vancouver are increasing, according to this article. This article outlines the prices of a variety of properties, from single-family dwellings to apartments and condos in these two cities. The average price for a single-family home in Vancouver is just under $1 million. In Toronto, the average price is about $700k. And it does not look like housing prices will plateau any time soon.

I think Vancouver is a great city to live in. Easy access to mountain ranges (skiing, hiking) and to the ocean (boating) make this city one of the best in the world. However, the word that comes to mind when I think of Vancouver, second to beautiful, is expensive. Most people do not have an income to support a million dollar mortgage and the costs associated with a home of this price, such as property taxes. And this price is just the average. I spend a lot of time searching Realtor.ca and most detached homes for sale on the West Side of Vancouver  are over $2 million. How is an ordinary person, with a middle-class income supposed to afford living in Vancouver?

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Toyota Logo

Bogdan’s blog entry reminds me of a similar issue with the soap brand Dawn. His blog says that Toyota markets their sustainability and social responsibility, yet the Toyota Prius contains a chemical that causes physical harm to the villagers in the area in which it is mined. Similarly, Dawn Soaps’ advertising is deceiving. The company has produced commercials that show people bathing oil-drenched ducks using their soap. Yes, this comes off as heart-warming; however, an ingredient in Dawn products is actually toxic to water organisms.

I cannot rationalize how companies like Toyota and Dawn Soaps are able to market themselves as doing ‘good’, yet actually be harmful to people and animals. It is unfortunate that most consumers are oblivious to the business practices carried out these companies. The fact that they take advantage of our lack of knowledge regarding sourcing of products is simply unfair.  I think that if people were more informed, they would be less likely to purchase products from Toyota and Dawn Soaps. Since I became aware of this issue with Dawn, I have not bought their soaps.

Why does business have to be so deceitful?

Dawn Soap Bottle

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iPhone 6 & iPhone 6 Plus

This article is the perfect example of consumers of this generation.

Apple started accepting pre-orders for its new iPhones, the iPhone 6 and iPhone 6 Plus, last week. Already, thousands of orders have been sent – so many that Apple is having difficulty keeping up with the demand. Apple reported having the most pre-orders ever the night ordering opened up.

Now, what are the differences between the iPhone 6 and the last one? It has a larger screen, a better camera and a longer battery life. But by how much has each of these features improved?

People in my generation are easily subjective to marketing. I think my generation is the consumption age.  Most people always want the latest and greatest toy. And that’s why Apple had record-breaking pre-orders for the iPhone 6. It seems we are never content with what we have, we always want more! We fall into marketers trap; we think we need a new product and, subsequently, go and buy a new product. Someone may buy a new iPhone although his or her current one works perfectly fine. Then, what will that someone do with their old iPhone? They will probably throw it into the garbage where it will join the other ‘old’ iPhones in the landfill.

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