Nancy Lu's Blog

In Michael Zhong’s blog post of the current trend of the millennial work force, he stated that companies should adapt and revise their business models as the world keep changing.Regarding this topic, I agree with his opinion because as part of the millennials myself, I can evidently experience how my values and perspectives are much different than that of my grandparents’. Because of the industrial revolution, millennials are being exposed to faster technological advances than the baby boomers who were born earlier. This would in turn lead to an accelerating gap of standards, perspectives, values and ideas between the two generations. As of now, many well-established corporations are still run by the baby boomers, which may come in conflict with the ideas that millennials bring to the table. I believe that companies should have the ability of transitioning into the new generation. However, seeing that the previous generation still exists, companies should not completely change their business model according to the demands of millennials simply for the sake of preserving interest from old customers. While it is great to be the leader of revolutionary ideas, it is also beneficial to consider the mass market and the original target market and ease into new ideas carefully.

Source: https://blogs.ubc.ca/mzhongdingdong/2014/11/10/millennials-to-reshape-the-work-environment/

http://www.mediaispower.com/wp-content/uploads/2013/03/millennials_1.png

In Jay Agrawal’s blog post regarding Netflix’s expansion plan into six European countries, including Germany and France, two of Europe’s largest markets. He supported Netflix’s ambition of development, saying that it will be beneficial in the long run. I agree with his opinion because I believe that business venturers are risk takers, and that most should be willing to take the risk to find out if the expansion is viable or not. Taking from an optimistic point of view, I think that for Netflix to make the decision for this venture, they have planned for long enough before launching the idea. As well, the company has garnered enough interest in America and the United Kingdom to expand into Europe, if they are able to find the right elements for the European audience. As Jay have stated, Netflix could hugely benefit from this opportunity if they can survive the short run hardships that will appear on this venture. However, if they were to be successful, it is possible for them to monopolize the world market. They definitely need to transition into the market as a partner of local enterprises for better public perception. The beginning stages will prove to be difficult, but I have enough faith in Netflix to overcome the difficulties.

Source: https://gigaom2.files.wordpress.com/2014/10/netflix-globe.jpg?w=300&h=200&crop=1

https://blogs.ubc.ca/jayagrawal/2014/09/16/netflix-is-global-domination-a-good-idea/

Kickstarter, a site for crowd-funding projects.

According to the blog author Marty Zwillings, many young and new entrepreneurs seem to have the misconception that crowd-funding is the ultimate solution to solving their start-up capital costs. I fully agree with her idea, seeing how many projects on funding sites such as Kickstarter and Indiegogo only has a handful of successful venturers. Zwillings also gave insight on several important business aspects that may be helpful to entrepreneurs, in which you can access here. A few highlights of the list that stood out to me were number two, four, and five. In point two, the description linked me to a page of a few failed projects although crowd-funding exceeded expectations.

Smarty Ring, a crowd-funded project that raised around $400,000 in two funding projects but disappointed the audience with its poor budgeting and prototype.

Business venturers often do not put a considerable amount of effort into business models and budget projecting, thus failing to utilize capital. As well, they do not keep the crowd updated, which is unfair to the public who helped. Proposals that only serve the purpose to capture audience attention lack internal assessment on many cases, which also contributes to business failures. Lastly, I believe that crowd surveys online or offline are useful to an extent, if targeted at the right audience. However, entrepreneurs often do not sample a large enough audience, or direct their attention to the wrong market.

Source: http://blog.startupprofessionals.com/2014/11/crowd-funding-success-usually-brings.html

http://gizmodo.com/7-crowdfunding-fails-that-will-make-you-think-twice-abo-1639106912

Arc Initiative projects by the Sauder School of Business in South Africa, Ethiopia, and Rwanda.

Budget spending has been an issue commonly debated upon in the United Nations, including financial support to developing countries such as South Africa to help fasten the pace of their economy growth and progression. Although the United Nations may have funded numerous business ventures and entrepreneurs in hopes of assisting them to help their economy flourish and attain favourable results, the outcomes have not been apparent. They failed to recognize that these entrepreneurs may lack the skills and education to utilize the fund to the fullest extent. Programs and individuals such as social entrepreneurs and the Arc Initiative were formed to resolve these fundamental issues. Social entrepreneurs are individuals that help the society by creating jobs and opportunities to those that are in need. Programs such as the Arc Initiative target young professionals and those in need of business education in order to run their firms efficiently. They help to educate business venturers regarding internal aspects of business by delivering workshops that prioritize finance, marketing, and strategy. Several examples of successful entrepreneurs that benefitted from these workshops include Salem Kassahun who owns Salem’s Ethiopia, Fitih Tesfaye with Shega Shero Eatery, and Osei-Duro founded by Maryanne Mathias and her partner Michelle Keogh.

Sources: http://www.sauder.ubc.ca/Global_Reach/ARC_Initiative/Locations/Rwanda

http://skollworldforum.org/about/what-is-social-entrepreneurship/

http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/day-to-day/can-fair-trade-boutique-expand-without-alienating-customers/article4405520/

http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/going-global/production-problems-nearly-unravel-high-end-fashion-label/article14286870/

http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/day-to-day/can-fair-trade-boutique-expand-without-alienating-customers/article4405520/

Darrel Fraser, the experienced dental lab technician who founded Laserfix, an innovative franchise that utilizes lab machinery to fix glass frames.

Laserfix, a small eye glass frame repair business run by the seasoned dental technician Darrel Fraser, has always been on the lookout for new business opportunities until he discovered a chance to utilize the rarely used laser welding machine in his dental laboratory. After some research on glasses and experimentation, he started the business with the existing machinery in his lab. Through time and development, Fraser was able to find solutions to new problems such as fixing plastic frames, and is now able to attract many customers that come directly to Laserfix instead of doctor referrals. Based purely on his entrepreneur spirit and the willingness to initiate an exploration into an area foreign to him, the revenue brought in does not seem too shabby either. Furthermore, Fraser also considered the future growth opportunities for both, and concluded that it is much easier to expand on the glasses business, thus why he is now in the process of shutting down his dental lab.

Fraser’s example proved that it is possible to succeed on a new business venture, if the entrepreneur has the ability to plan out his strategies. I believe that the next important thing to consider is that s/he should not expect much in return at first. As Fraser stated, most of the profit he makes is sweat equity, a common occurrence among many new businesses.

Source: http://www.theglobeandmail.com/report-on-business/small-business/sb-tools/put-away-the-duct-tape-broken-eyeglasses-can-be-fixed/article21300781/

Pipeline route for the proposed project.

Just a few months ago, the federal government approved the $7.9 billion Northern Gateway Pipeline Project proposed by Enbridge Energy, a Calgary-based company. First Nations are strongly opposing this project since they are afraid of oil spills towards the waterways to Kitimat, where many Aboriginals reside.

Oil and pipeline projects have been a prominent controversy in history since the early days. Many First Nations’ natural habitats were disturbed because of these expensive projects. Since the federal government profits from these energy companies, they often disregard the environmental factors and footprint affecting global health and future generations. Numerous groups of Aboriginals rely on the natural environment for traditional ways of living. As well, unresolved land ownership still remains as a problem in the area. Enbridge must be able to come to a consensus with the First Nations in order to start the project, to convince them that this project would not harm their traditional niche. If the project were to be disturbed in the middle of operation, that means $7.9 billion going down the drain. Further more, historical sites and endangered animals would be harmed. Enbridge and the government must consider these external factors before going forth with the project.

Source: http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/northern-gateway-decision/article19180594/

http://www.theglobeandmail.com/globe-debate/first-nations-hold-the-key-to-the-northern-gateway-pipeline/article19213035/

The Californian aura inspired brand Abercrombie and Fitch stirred up controversies regarding sizing matters from the past year. CEO Mike Jefferies claimed that there is only excitement when their clothes are worn and advertised by people with washboard abs and skinny long legs. While other brands such as American Eagle Outfitters and H&M offers the “plus-size” clothing that A&F does not advocate, they declared that A&F is targeting the “cool-kids” audience.

While I am one of the customers who enjoy shopping at A&F as well as its sister company, Hollister, I do believe that this marketing tactic is highly disrespectful to prospective customers. Although I could see which type of audience their fashion line is directed towards, it was unnecessary for Jefferies to disclose his opinions on his marketing strategies. However, perhaps this is part of their plan to get themselves on the news to attract attention because after-all, more than half of the regular fashion consumers could fit into A&F sizings. As well, they often offer sales on their pricey clothing as part of their marketing strategies. I hope that the company could further analyze its marketing tactics so that it does not offend any potential customers in the future while attracting people at the same time.

Source: http://www.businessinsider.com/abercrombie-wants-thin-customers-2013-5

The evolution of Androids and iPhones.

As the only iOS provider at the moment and the one of the mainstream platforms for smartphone users in the current society, Apple has developed an underlying issue in its business. According to the survey conducted by simonlycontracts.co.uk, over half of iPhone users admitted to “blind loyalty.” Although this may appear to be exceptional news to many phone manufacturers in the world market, this seemed to be a problem for Apple. In 2013, Google refurnished and recoded Android so that the system could run smoothly on bargain price smartphones as well. Even the cheapest iPhone 5C cannot compete with the price of a Windows phone that could operate just as smoothly as the 5C.

Seeing the trend in smartphone users today, iPhones are indeed the prevalent phones used amongst teenagers, adults, and seniors. Brand loyalty appears to be a very common reoccurrence in consumer behaviour today, seeing as how fashion stores such as Forever 21, Zara, and H&M are continuously refreshing merchandise on the rack. As long as the iPhone fever remains, market demand for the product will be on the constant rise, therefore Apple could further inflate the prices for the already considered “over-priced” product. With the quality of life increasing each year, it is an easy task to simply save up enough money for the next model among loyal customers.

Source: http://www.forbes.com/sites/gordonkelly/2014/03/21/the-majority-of-iphone-users-admit-to-blind-loyalty-why-this-a-problem-for-apple/

Rajina Subramaniam, the senior accountant of ING Group, was found guilty of numerous personal transactions and lavish spending of around $45 million in five years.

In 2009, the global financial institution of Dutch origin, ING Group, faced a loss of around $45 million due to the personal greed of Rajina Subramaniam, the senior accountant of the multinational company. From 2004, she has been reported guilty of numerous transactions to her personal accounts, friend’s accounts, and even to sales associates of Paspaley, a jewelry store she frequents. While sustaining “VIP status” at Chanel, Paspaley, Bulgari, and so forth, she has given away a few million dollars to help out the sales associates she has acquired at these brands. Being labelled as a wealthy customer, she has also invested into real estates, offering to pay at a higher market price.

Although not categorized as a prevailing world issue, financial fraud cases are, at times, unavoidable problems that may happen to every entrepreneur. Although still going strong, ING Group may have suffered with trust issues from customers, many unpleased with Subramaniam’s claims that her manager was not “very interested” in his job, therefore lacked in surveillance. Just by word of mouth, their reputation as a financial insurance company in the global community could have been damaged. Companies must exercise careful screening of financial candidates before hiring them.

Sources:

http://www.theaustralian.com.au/business/latest/m-fraud-accountant-gets-minimum-7-years/story-e6frg90f-1226267716932?nk=f97c98a620b29f1f0ae541545cfcca38

http://www.heraldsun.com.au/archive/news/accused-fraudsters-amazing-double-life/story-e6frf7l6-1225811945788?nk=f97c98a620b29f1f0ae541545cfcca38

In today’s business world, capitalism is a dominant economic concept used everywhere around the globe. United States, being the leading free enterprise country in the world, has faced challenges of business ethics regarding the sales of tobacco in drug store chains installed with pharmacies and health practitioners. CVS being one of the largest chains of drugstore that carries tobacco products, has vowed the termination of selling tobacco products by October, 2014. Although this will put a small dent in their sales, I believe that the social responsibility aspect of this business out-rules that small percentage of profit. With the number of smoking related health issues surfacing everyday, I consider this action to be necessary in order to reduce medical costs, seeing that many people cannot afford private healthcare in the United States. Assuming CVS could meet their promise by the deadline, they will become the leaders of advocating a healthier lifestyle. It is in the best interest of these stores to maximize profit for all stakeholders, however ensuring that the profit they make will be held responsible to the citizens. Although this issue cannot be addressed immediately and will not be solved for quite some time, health advocates  now has a prominent example to use in their arguments.

Source: http://www.nytimes.com/2014/02/06/business/cvs-plans-to-end-sales-of-tobacco-products-by-october.html

http://www.masscommercialproperties.com/wp-content/uploads/2013/09/718220e7-40a8-4b2b-8ca1-0c221f256b5a.jpg