Comments on Wenshi Wang’s post

Despite the iPhone 6’s apparent flaws (Bending form and camera’s white balance), profit has not been deterred. Through my own investigation into the iPhone 6 and analyzation of Wenshi’s post, I concur that brand marketing and the introduction of customization are key reasons of the lack of repercussions that came with the product’s defects. However, I believe there is more than that.

Bent iPhone 6

Although consumers may be drawn to Apple due to its reputation of innovative products, the root reason they stay with them  is Apple’s core values and service. Apple defines simplicity; any everyday user has the capability of using their products, and despite their continuous innovation to each product, they have maintained their motto of remaining simple. Furthermore, Apple prides itself on its exceptional customer service. Although, there may be other phones out on the market with better features or fewer faults, outstanding customer service is irreplaceable. 50% of Apple’s customers are first time buyers which speaks volumes of the quality of their staff interaction.  Through their helpful face to face help and quick online assistance, Apple is able to have the customer satisfaction edge which continues them to remain popular despite the few technical bumps here and there.

Apple’s excellent customer service

Bibliography

“Will it bend? iPhone 6 takes a turn for the worse – CNET.” CNET. N.p., n.d. Web. 27 Sept. 2014. <http://www.cnet.com/news/will-it-bend-iphone-6-takes-a-turn-for-the-worse/>.

“customer service.” customer service. N.p., n.d. Web. 28 Sept. 2014. <https://www.apple.com/hk/en/retail/geniusbar/images/genius.jpg>.

“iPhone 6 has serious camera problems, say Tom’s Guide testers.” VentureBeat. N.p., n.d. Web. 29 Sept. 2014. <http://venturebeat.com/2014/09/24/iphone-6-has-serious-camera-problems-say-toms-hardware-testers/>.

“iphone 6.” iphone 6. N.p., n.d. Web. 28 Sept. 2014. <http://cnet4.cbsistatic.com/hub/i/2014/09/24/8995a5b5-2470-46f6-9a63-05fdd53d8c45/f63a77a406f9dcf50fecffbb5c05d509/bentiphone6.jpg>.

“iphone 6 2.” iphone 6 2. N.p., n.d. Web. 28 Sept. 2014. <http://m.c.lnkd.licdn.com/mpr/mpr/p/1/005/08b/0b2/08cf3ac.jpg>.

Article Link

Despite Nintendo Co. launching their new console, Nintendo is projecting a $240 million annual loss; their biggest fall in over twelve years. It’s evident that Nintendo is beginning to lose its appeal over their competitors like Xbox and PlayStation who have also launched their newest models. It seems that Nintendo’s customer segment is evolving whilst Nintendo’s business model has remained static. With casual players moving to mobile devices, and hardcore gamers moving to competitors, it’s essential for Nintendo to keep up with this market shift.

Nintendo console evolution

“We are thinking about a new business plan structure…Given the expansion [of] smart devices, we are naturally studying how smart devices can be used to grow the game-player business” Iwata said at a press conference. I believe in order for Nintendo to prevail from this dip, it is imperative for the management team to create a differentiation strategy. When the Wii was first launched, it was the first gaming console to feature a movement aspect in the gaming experience; Nintendo must continually innovate in order to keep up with the growing and changing market. The potential that streams from the smart device industry is substantial as no other competitor has seriously attempted to take it. Additionally, mobile games are the fastest-growing segment, with revenue set to reach $22 billion by 2015, a large leap from $13.2 billion this year. Nintendo could potentially capture the young mobile market using their iconic characters (Mario) as their marketing strategy. If Nintendo was able to devise an innovative application within a mobile device that maintained low costs, they could restore their profit. To recapture the edge of the gaming market shares, Nintendo must continually innovate the gaming space in order to remain competitive.

Bibliography

“Evolution.” Evolution. N.p., n.d. Web. 30 Sept. 2014. <http://alexfigueroa.files.wordpress.com/2009/01/games.jpg>.

“Evolution 2.” Evolution 2. N.p., n.d. Web. 30 Sept. 2014. <http://nintendo3dsdaily.com/wp-content/uploads/2013/04/nintendo_evolution.jpg>.

“Nintendo Mulls New Business Model After Forecasting Loss.” Bloomberg.com. Bloomberg, n.d. Web. 30 Sept. 2014. <http://www.bloomberg.com/news/2014-01-17/nintendo-forecasts-net-loss-on-stagnating-sales-of-wii-u-games.html>.

Article Link

Mexico Authorizes Arrests in Fraud at Citigroup Unit

The corporation Citigroup has taken a huge hit after a $400 million loan loss was discovered from their Mexican subsidiary Banamex. This incident was due to Oceanografia, a marine oil services company that borrowed $585 million from Banamex against contracts that it had with Pemex, another oil enterprise. This perpetuated an investigation that discovered $400 million of nonexistent contracts. The repercussions that followed were eleven employee firings from Citigroup that included four managing directors. This unmoral act cultivated from a variety of motivations. Due to four managing directors being fired, some assumed that they were the root cause of this fraudulent affair since they had the position to take advantage of their power to influence the credit decisions. However, I believe this affair occurred through several layers of failure. The key problems that sparked this fraudulent act was negligence from the bank employees from top to bottom and financial greed.

Banamex has its compliance problems. It seems that Citigroup, the parent company, has not effectively watched over its Mexican subsidary’s operatios. This lack of oversight has formed a negligence from the managing directors and their employyes. They have not done their due diligence in reviewing all of OCeanografia’s invoices and financials. Furthermore, there has been indications that some government officials may have been involved in this to gain financial interest. Through these heinous crimes, it has not only broken their own integrity in the business world, but also tarnished the reputation of Citigroup’s global bank image.

Bibliography

“Mexico Authorizes Arrests in Fraud at Citigroup Unit.” DealBook Mexico Authorizes Arrests in Fraud at Citigroup Unit Comments. N.p., n.d. Web. 22 Sept. 2014. <http://dealbook.nytimes.com/2014/06/01/mexico-issues-arrest-warrants-in-banamex-fraud-inquiry/?_php=true&_type=blogs&module=Search&mabReward=relbias%3As%2C%7B%222%22%3A%22RI%3A15%22%7D&_r=0>.

“citigroup.” citigroup. N.p., n.d. Web. 22 Sept. 2014. <http://www.talkingbiznews.com/wp-content/uploads/2012/01/citigroup.jpg>.

“image 1.” image 1. N.p., n.d. Web. 22 Sept. 2014. <https://compliancecampaign.files.wordpress.com/2013/04/revolving-door-cartoon.jpg>.

Article Link

The responsibility for companies to remain profitable has cultivated a norm to ignore business ethics. However, companies such as Coca-Cola, are striving to change this growing dilemma. Coca-Cola’s chairman, William E.Robinson, stated that a corporate executive did not just serve the stockholders, but also the workers, customers, and the community. This ideology directly links to Freeman’s Stakeholder Theory as he believes that by focusing on all of the groups involved that it will extend the life of a company as well as make capitalism tick. On the contrary, Milton Friedman disagrees with these ideologies as he believes a businesses’ priority should only be the stakeholder. He believes it is the business’s social responsibility to increase profit; devoting any other resource would be aiding charities with other people’s money. However, Friedman’s theory came during the time of hostile takeover and leveraged buyouts. Despite Friedman’s ideologies, other corporate executives have joined the charitable movement. In 2000, forty four businesses signed up to the United Nations’ global standards on human rights and environmental stewardship. Most companies believe this social system will benefit them in the long haul. Additionally, by aiding others in the public eye, it  could subsequently increase the worth of the company as this intangible asset of the company’s reputation will increase. It is imperative for businesses to no longer only focus on shareholders; in order to succeed in this era it is necessary to aid the quality of life within the community.

 Works sited

Porter, Eduardo. “Motivating Corporations to Do Good.” The New York Times. The New York Times, 15 July 2014. Web. 10 Sept. 2014. <http://www.nytimes.com/2014/07/16/business/the-do-good-corporation.html?_r=1>.