“If the United Nations was fully funded why would we need the Arc or social enterprise?

That’s the big question. Wouldn’t it seem redundant to have these initiatives when there is already a United Nations which is dedicated in improving the life of humankind? Not necessarily.

The Arc

“Give a man a fish he’ll eat for one day; teach a man to fish and you feed him for a lifetime”

That is what the Arc is dedicating in doing for global communities as they share their business knowledge. The Arc believes the most beneficial means is spending their resources is teaching these communities the fundamental skills to prosper in businesses. I strongly support these means to improve third world coutnries. I find that charities too often try to fix the problems by putting a band aid on it, but they often fail to fix the complication in the long term. It is evident that this method works as people like Shega Shero who has saved her business through this program. The Arc focuses on the big picture in solving poverty, which I believe should be the new trend in this market of initiatives.

The Arc

After reading Maryanne Mathias’ story, I found similarities between her business model and what is often happening in poverty-stricken nations. She describes how her technicians would always encounter a problem and when she dealt with them the cycle just repeated. However, when she gave them the right tools it solved the problem. This story reminded me of how the Arc operates, as poor countries (technicians) would encounter a problem before charities (manager) helped them. But, when they received knowledge of how to flourish in businesses (tools), they had the fundamentals to succeed on their own.

Social Enterprises

So why do we need social enterprises if teaching them to sustain themselves would be the best option? Well, Social Enterprises usually focus more on the immediate threats and alternative methods in improving the long term.

 “Social entrepreneurs are not content just to give a fish or teach how to fish. They will not rest until they have revolutionized the fishing industry.” –Bill Drayton

Bibliography

Web. 11 Nov. 2014. <http://www.sauder.ubc.ca/Global_Reach/~/media/7709ACA7C07A4EEC8AABC811569677B5.ashx>.

Web. 11 Nov. 2014. <http://nnovak11.files.wordpress.com/2014/05/chinese-proverb.jpg>.

Web. 11 Nov. 2014. <https://blogs.ubc.ca/alexhawley/files/2012/11/blackkkk.jpg>.

“Production Issues Threaten to Unravel High-end Fashion Label.” The Globe and Mail. Web. 11 Nov. 2014. <http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/going-global/production-problems-nearly-unravel-high-end-fashion-label/article14286870/>.

“Sauder School of Business.” The Arc Initiative. Web. 11 Nov. 2014. <http://www.sauder.ubc.ca/Global_Reach/ARC_Initiative>.

Where’s the best place to pick up some organic trail mix or veggie chips? Whole foods?

Guess again. It’s 7-Eleven!

7-Eleven

Chelsea Choi, recently wrote an interesting post on 7-Eleven expanding its customer segment. She believes this shift towards healthy eating will only further 7-Eleven. However, I believe it is simply too risky and difficult to undertake this radical change.

New Healthy 7-Eleven

7-Eleven has already chose to position themselves as the most convenient corner store in the world, but their decision to try to position themselves in a polar opposite market will be far too difficult. As discussed in Paul Cubbon’s video on Position and Value, it is difficult to change a consumer’s perception of a company. Through Professor Cubbon’s analogy of a ladder on positioning, 7-Eleven will spend enormous amounts of resources trying to become the top of health foods only to fall back down the ladder. I believe it would be wiser if 7-Eleven chose to innovate elsewhere, perhaps a market where convenient stores have yet to fully occupy. Additionally, 7-Eleven does not have the point of difference of credibility as consumers will always have the perception of fast unhealthy food.

Although, 7-Elevens attempts of innovation is admirable and adding more variety can attract more diverse customers, 7-Eleven should not assert too many of their resources in attempting to change their core business. I still believe 7-Eleven  should expand, but in another emerging market.

Bibliography

Web. 11 Nov. 2014. <http://c.fastcompany.net/multisite_files/fastcompany/imagecache/inline-large/inline/2013/10/3020110-inline-cs7eleven04.jpg>.

Web. 11 Nov. 2014. <http://outskirtnoise.files.wordpress.com/2013/11/2211865279_e6ff170995_o.jpg>.

“7-Eleven Teams With P90X Creator To Offer Healthy Food Options.” International Business Times. Web. 11 Nov. 2014. <http://www.ibtimes.com/7-eleven-teams-p90x-creator-offer-healthy-food-options-1697849>.

For many entrepreneurs, the goal is to launch a prosperous cooperation, grow it into a household name and sell it off for millions or even billions of dollars.

So what happened when Mark Zuckerberg offered Snapchat co-founder Evan Spiegel $3 billion for his creation?

Evan Spiegel and Mark Zuckerberg

He said no.

What did Zuckerberg see in this photo sharing company that perpetuated him into offering the biggest offer Facebook has ever done? What would even cause Spiegel to deny this offer? Let’s break try to break this decision down.

The Offer

So what makes Snapchat so attractive? I firmly believe the appeal stems from the potential marketing it provides. Companies like Facebook are slowly losing their grasp on the younger demographic, whilst Snapchat holds 9% of phone users; 26% of them are between the ages of 18-29. So why wouldn’t Facebook simply create their own version of Snapchat instead of spending $3 billion dollars. Turns out they did. They called it Poke, unfortunately for Facebook it did not prevail which may have shown Spiegel the true value of his company.

The Decision

What would ever inhibit a 23 year old to decline a $3 billion dollar offer? Well, I believe that Spiegel has always believe that real success only comes from big risks. For example, he left Stanford University with 3 classes remaining for his degree in order to further his company. Spiegel definitely has the ambition and I believe he has grown attached to this creation and won’t simply sell it until he believe it’s the right time. This risk could potentially payoff if Snapchat continues to grow. However, there are certainly risks. There have been many companies like Groupon who denied a $6 billion dollar offer from Google; only to have the firm value fall by $10 billion the following year.

Statistics of SnapChat

Although the risk is high by denying this potential once in a lifetime offer, the potential payoff could be worth it based of the exponential growth Snapchat has done in the past year. With the characteristics of a risky entrepreneur and the vision of co-founder Evan Spiegel, Snapchat has the potential to upend the social media hierarchy.

Bibliography

Web. 11 Nov. 2014. <http://cdn.slashgear.com/wp-content/uploads/2013/11/Snapchat-Buyout-From-Facebook-Rejected-580×435.jpg>.

Web. 11 Nov. 2014. <http://www.moustachemagazine.com/wp-content/uploads/2013/11/art-Evan-Spiegel-Mark-Zuckerberg-Facebook-Snapchat-620×349.jpg>.

Web. 11 Nov. 2014. <http://tctechcrunch2011.files.wordpress.com/2013/11/snapchatdau7.png?w=680&h=510>.

“The Inside Story Of Snapchat: The World’s Hottest App Or A $3 Billion Disappearing Act?” Forbes. Forbes Magazine. Web. 11 Nov. 2014. <http://www.forbes.com/sites/jjcolao/2014/01/06/the-inside-story-of-snapchat-the-worlds-hottest-app-or-a-3-billion-disappearing-act/>.

“This Is the 23-Year-Old Entrepreneur Who Just Turned Down $3 Billion From Facebook.” Entrepreneur. Web. 11 Nov. 2014. <http://www.entrepreneur.com/article/229938>.

“Top 10 Entrepreneurs In 2013.” Forbes. Forbes Magazine. Web. 11 Nov. 2014. <http://www.forbes.com/sites/drewhendricks/2013/12/17/top-10-entrepreneurs-in-2013/>.

Problem: Best Buy believes their staff aren’t knowledgeable enough

Solution: Retrain all of their staff

Humorous exaggeration of Best Buy’s poor service

However, Ashley Lutz’s expressed that Best Buy’s solution would be financially unwise to do in her recent blog post. As I contemplated to see if I agreed with these statements, Danielle Van Jaarsveld’s recent lecture sparked my decision to disagree with Lutz.

In Lutz’s words, Best Buy is simply “pour[ing] money into training” while I see it as more of an investment in customer relations. Look at Zappos for an example, they heavily train their staff which has perpetuated them to become the top companies in customer service. This training builds its organizational culture. Some may argue that customer service doesn’t make up those costs, however, it actually does. In the short run it may just seem costly, but in the long term it can provide positive returns. How well trained a staff member is, will affect how the customer is treated.

Better service = More returning customers = More sales

This information causes me to believe that Best Buy’s best interest is to continue this organizational restructure in bettering their staff environment. The potential payoff is immense as it will enable Best Buy to continue selling at the lowest prices. Organizational culture is often overlooked, but it is a vital factor in creating a successful long term future for any company.

Best Buy Training

Bibliography

Web. 11 Nov. 2014. <http://stmedia.startribune.com/images/7BESTBUY1124.jpg>.

“Excuse Me, What’s the Difference between Digital Zoom and Optical Zoom? They’re the Same Thing. But the Box Says They’re Different. Oh Yeah It Does. I Guess They’re Different. Let Me Know If You Need Any Further Assistance.” Quickmeme. Web. 11 Nov. 2014. <http://www.quickmeme.com/meme/3qflh7>.

Lutz, Ashley. “Best Buy’s Turnaround Strategy Has One Huge Paradox.” Business Insider. Business Insider, Inc, 2 Apr. 2014. Web. 11 Nov. 2014. <http://www.businessinsider.com/best-buys-strategy-is-a-paradox-2014-4>.

Walmart may have fooled a majority of society, but this post should clarify things up.

When people think Walmart, they picture a giant cooperation. With the news that Walmart set up a variety of initiatives for the environment, people picture a giant cooperation that sincerely values the environment.However, I don’t believe that’s the case. One could argue that Walmart is simply creating shared value and is looking to also fulfill their social responsibilities by converting to solar energy. However, through my analysis, that’s far from their true intentions.

Walmart may be installing twice the amount solar capacity compared to the next closest company, Kohl’s, but that statistic is misleading given that Walmart proportionally only uses 3% of solar energy of its total energy usage. More than 200 other companies have dedicated a 100 percent of their electricity use with solar means, including Whole Foods, Staples, and Kohl’s. This might spark the argument that at least Walmart is doing something in support of green energy. However, these presumed sincere intentions seem to contradict with the Walton family’s (Walmart’s majority owner) funding to ALEC, a lobbying group who strives for anti-climate and anti-clean legislations. Even Google has pulled out their funding to this group, because of their large funding into clean energy. That’s not all, the Walton family also owns a company called Solar First. This point may seem like a positive direction for the Waltons, however their environmental intentions go so far. Since the company’s manufactures are located in Malaysia, they have been trying to repeal solar incentives within the U.S because their policies give preference to local procedures. In short, the Walton family will not support the green energy initiative if it means hurting their profit margins, despite their claims of supporting a better tomorrow.

The Waltons

Bibliography

Web. 11 Nov. 2014. <http://blogs-images.forbes.com/briansolomon/files/2012/10/54C1BBAA21462097185CBC187F695121.jpg>.

Web. 11 Nov. 2014. <http://a.fastcompany.net/multisite_files/fastcompany/fc_files/slideshow/77238-walmart-goes-green-slide-01.jpg>.

“Walmart Is Killing the Rest of Corporate America in Solar Power Adoption.” Slate Magazine. Web. 11 Nov. 2014. <http://www.slate.com/blogs/moneybox/2014/10/21/walmart_green_energy_it_can_produce_more_solar_power_than_35_states.html>.

“Walmart Isn’t Really Green, Just Really Big.” Grist. Web. 11 Nov. 2014. <http://grist.org/news/walmart-isnt-really-green-just-really-big/>.

Recently, I stumbled into Dan York’s blog that spoke about the longevity of Skype. How much longer will Skype remain relevant? 6 months? 3 years? 5 years?

Skype Logo

When Skype came out it was undoubtedly a disruptor to the phone business as it offered society something that could only be accessible to the rich. From video calls to free international phone calls, Skype continued to innovate. However, it was interesting to see that York believe that Skype is simply a tool now and is no longer something to say “wow” about. He believe it has gotten to the point where it is part of everyday life. After doing my own extensive research on Skype and the industry they’re in, I would have to agree.

With Skype’s 300 million users worldwide, they had the chance to be the next Facebook or Google, instead they failed to continue to be ahead of the curve. Their whole industry is now redefined as competitors like FaceTime and Google Hangout have become upgrades to what Skype is.

Skype’s competition

So what happened?

With Skype’s 300 million users worldwide, they had the chance to be the next Facebook or Google, instead they failed to continue to be ahead of the curve. I believe that Skype was stuck in the superiority trap where they relied on their current success and failed to look at the longer term. Now, their whole industry is now redefined as competitors like FaceTime and Google Hangout have become upgrades to what Skype is.  Ten years ago, Skype was the disruptor, but now will Skype be disrupted by a new entrant? York believes they may be disrupted and has little hope that Skype can rebound. However, I believe differently as I still have hope that Skype will surprise us; they are still the company that single handedly disrupted the means of how society communicates. Skype just hit their ten year anniversary, it’s better late than never for them to rebound from this nadir.

Bibliography

Web. 11 Nov. 2014. <http://dc942d419843af05523b-ff74ae13537a01be6cfec5927837dcfe.r14.cf1.rackcdn.com/wp-content/uploads/Video-chat-services-logos.jpg>.

Web. 11 Nov. 2014. <https://lh5.ggpht.com/1CxNUEdzrREikWZoaHIU5J63x2gOxTb7R-ZIbJd51uPBFt0jUj8AX2bMOhKiIBcuAqtH=w300>.

Web. 11 Nov. 2014. <http://www.darcyandbrian.com/wp-content/uploads/2012/07/skype-features.jpg>.

“10 Years Of Skype – Massive Disruption… But Will Skype Remain Relevant? – Disruptive Telephony.” ‘Disruptive Telephony’ Web. 11 Nov. 2014. <http://www.disruptivetelephony.com/2013/08/10-years-of-skype-massive-disruption-but-will-skype-remain-relevant.html>.

Article Link

Protest Propaganda

Northern Gateway’s attempts to gain the Nak’al Koh people’s approval has hit a stalemate. The social threats of cultural limitations has hindered the company’s development on its latest pipeline. The Nak’al Koh people believe the repercussions that will materialize from this project is a potential oil spill in their river, home to its indigenous animals. Although some Aboriginal groups have approved this project, many believe that no amount of money would suffice the detriment caused through these fossil fuels

First Nation people protesting

This issue cultivated from a lack of business analyzation of the cultural problems that could have occurred in this demography. The biggest factor facing Northern Gateway, is the cultural limitations the land brings. The Aboriginals have an enduring relationship with the land as they have learned from their elders to have a sense of humility and appreciation for it as it is a gift from the Creator. This makes it imperative for its people to maintain its land for future generations. Although First Nation groups have approved other companies like saw mills, Northern Gateway’s management of oil encourages the use of fossil fuels which the First Nations are trying to reduce in order to preserve its environment. Northern Gateway must recognize that due to this cultural outlook, there is a lack of consumer need in this region. However, Northern Gateway could deviate its target to another region and simply use the land to house its resources. However, the amount of backlash and compensations needed for the First Nations people may be seen as too great for this land. Subsequently, it would threaten the company’s profits long term as well as damage the reputation of Northern Gateway if it is known with interfering with Aboriginal land. The land’s opportunity cost proves too high for its prospect which I believe should cause Northern Gateway to accept these potential threats and shift their pipeline into another region.

Protesting

Bibliography

“˜There will be no pipeline™.” www.vancouversun.com. N.p., n.d. Web. 5 Oct. 2014. <http://www.vancouversun.com/news/There+will+pipeline/10122968/story.html>.

B.C. First Nations studies, 12. Victoria, B.C.: Ministry of Education, 2000. Print.

“Pipeline.” Pipeline. N.p., n.d. Web. 5 Oct. 2014. <http://warriorpublications.files.wordpress.com/2013/02/enbridge-no-andy-everson.jpg>.

“Pipeline 2.” Pipeline 2. N.p., n.d. Web. 5 Oct. 2014. <http://i.cbc.ca/1.2638865.1399767855!/cpImage/httpImage/image.jpg_gen/derivatives/16x9_620/pipeline-protest-20140510.jpg>.

“Pipeline 3.” Pipeline 3. N.p., n.d. Web. 5 Oct. 2014. <http://priceofoil.org/content/uploads/2014/06/Endbridge.jpg>.

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>.