Month: November 2015

After a near-death experience in Brazil, Tal Dehtiar re-evaluated his life and founded his own company Oliberté. A certified Fair Trade factory, Oliberté manufactures footwear out of Ethiopia. A key point of difference separating this company from their competition is the fact that they provide jobs for those in need.

Building upon a previous post, “One for One or One for None”, Dehtiar’s solution is more sustainable than the Tom’s business model. Creating jobs holds greater value than a pair of shoes: footwear gives temporary relief but employment betters a person’s quality of life. Having a career promotes both mental and physical stimulation, in addition to teaching the value of hard work.

Oliberté embraces the phrase, “Trade. Not Aid.” Essentially, Dehtiar does not believe that monetary or material gifts will better a person’s life. And so, by employing safe labour practices, in addition to the company’s use of eco-friendly materials,  Oliberté will achieve success as a sustainable brand.

Sources:

Entrepreneur: This Guy Makes Hipster Shoes in Africa. But Don’t Call Him a Social Entrepreneur

Oliberte: About Us

In 2006, Blake Mycoskie revolutionized the marketing game by starting a movement called “One for One”. The idea behind this campaign is that for every pair of shoes purchased, Toms Shoes will provide a free pair to someone in need.

On the surface, this initiative benefits everyone: Toms increases their sales, as customers buy into the idea of helping the less fortunate while also getting a new pair of shoes. As for the recipients of the free shoes, they are grateful for this unexpected contribution.

However, what happens to small businesses?

Seemingly forgotten in this equation, they are unable to compete with Toms providing the same product for free. Consequently, these businesses are forced to close, as they are not gaining enough profit. This is why the One for One business model is detrimental to the economy. The campaign may have originated with good intentions, but the downsides of the model were not accounted for prior to initiation. This is simply a quick fix for the much larger issue of poverty. However, it has the opposite effect: it is not fixing the issue of poverty, but adding to it by creating a dependency on charity.

In order to truly help, developing countries need more opportunities and not free handouts.

Sources:

HBR: How Social Entrepreneurs Make Change Happen

One for One Business Model

What is Social Entrepreneurship? 

 

As the holiday season draws near, most retailers are incorporating seasonal merchandise into their production to prepare for the festivities. Starbucks is of no exception.

The franchise has become integrated into our society’s culture with their holiday cups marking the start of the festivities. This year, however, is causing quite a commotion due to the cups design..or lack of it for that matter. Simply a plain red cup, some customers claim that the brand is against Christmas and also, Christianity.

These claims are unjustifiable though, as Starbucks has always been providing generic winter themed designs: they do not associate with a specific religion in any form. Although some would argue that this is bad PR for the company, I believe that it will increase their sales. This issue has produced free advertising for the company as customers are sharing photos of the cup either mocking or sharing their opinion on the subject. Starbucks should take advantage of this buzz around their company and continue to utilize their position as a holiday icon.

Sources:

CNN Money: Starbucks Red Cups Through the Years

Huffington Post: Some Christians Are Not Happy About Starbucks’ Holiday Cups

Wall Street Journal: Consumers Aren’t So Cheery about Starbucks’ Holiday Cup Controversy 

 

Once upon a time, in the streets of California, there was a place full of magic: Disneyland. With the imaginative stories from Walt Disney coming to life, adults and children alike flock to the theme park and live out their childhood dreams.

In Help Scout’s blog, they explore the tricks of the trade that have equated to Disney’s success over the decades. One of the contributing factors was Walt’s attention to quality customer service. For example, if a child waits countless hours in line for a ride, only to find out they’re too short, it’s simply too bad. Rather, that’s how other theme parks would respond. At Disneyland, that customer will receive a special pass to bypass the lineup for another ride, thus nullifying the tortuous wait again. This service is simple, yet highly effective as the theme park has a return rate of 70% for first time park goers.

Another tactic used by the founder was testing out the rides for himself. By disguising his appearance, he went on rides as an average customer would. After finishing, he would alter the rides until it met his level of satisfaction.

This care and attention that Walt Disney had for his theme park is displayed with every visit. The amusement park goers not only develop an attachment to the lovable characters and traditions, but also to the creator himself.

Sources:

Help Scout: How Disney Creates Magical Experiences (and a 70% return rate)

Statista: Disneyland Anaheim, California Attendance 2009-2014

In Sharon’s blog post on sustainability, Starbucks was being accused of non-environmentally friendly practices. As a short-term solution, the company set up more recycling bins within their stores. Upon investigation, however, Starbucks did not follow through with their green initiative and the cups ended up in the landfill. This is not the first case where Starbucks had displayed environmental degradation: they’ve employed municipalities without commercial recycling, and no access to recycling services.

In the past, Starbucks was ranked within the Top 15 Best Companies for the Planet in 2009. (Business Insider) As part of their global responsibility moving into the future, they are committed to “green retail”: energy-efficient branches, adaption of LEED, and energy and water conservation.

Although Starbucks didn’t uphold the eco-friendly standard they were formerly known for, consumers shouldn’t boycott the company just yet. The action taken to become environmentally friendly will take time: the company cannot change overnight, however, any steps taken towards bettering the environment are a step in the right direction.

 

Sources:

Business Insider: The 15 Best Companies for the Planet

SCS Global Services: Starbucks C.A.F.E. Practices

Starbucks: Global Responsibility Report Goals & Progress 2014