Positive Sustainability Through Enterprise

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It is understandable that there are a lot of questions whether social enterprise and initiatives like the Arc are really necessary and not a redundant attempt considering that the United Nations was fully funded. However, after acknowledging the current state of the world’s welfare I strongly believe that the involvements of social enterprise and initiatives like the Arc are still very much needed.

Social enterprises are a sustainable cell on their own, unlike organisations such as the United Nation that seeks funding to carry out its purpose. In my opinion this approach will give a more sustainable positive outcome rather than depending on a third party for resources, taking account of the increasing problem of scarcity. Not to mention, I feel that it is necessary to point out that Social enterprises are more focused on creating an independent and continuous growth in the community that they targeted rather than short term improvements. Their involvement are targeted in catalyzing small businesses which in the end can create more jobs and therefore income. These organizations are built with a more direct focal point, rather than the United Nations that has a very large organizational structure which have a broader mission.

 In conclusion, i strongly believe that the presence of social enterprise and organisational such as the arc are still very much necessary in building a better quality of life . It is not debatable that the more help available the better is for everybody.

References:

http://www.socialenterprisecanada.ca/en/learn/nav/whatisasocialenterprise.html

http://www.un.org/en/development/

Honda Chose Quality Over Quantity

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honda takanobu

This post is in response to an article by Business Insider (written by Chang-Ran Kim) called “Honda CEO Says To Prioritise Quality Over Sales Target”. In this article it states that Honda chose to focus more on improving the quality of their cars rather than hitting the targeted sales margin. I strongly believe that this choice will improve Honda’s competitive advantage in the market for the longer run.

In Honda Motor Co’s President and Chief Executive Officer Takanobu’s speech he expressed his unhappiness with the fact people died in their products with airbags.He shared his points in a very personal manner in which I feel is a suitable way to built a deeper connection between the business and customer.

More importantly, the decision to choose quality over quantity shows that Honda has a strong and clear control of objectives that can be a very valuable character in a highly competitive market like this. Adding to its value preposition, this will increase the trust of consumers in terms of the quality of the products, eventually leading to increase in sales.

In my opinion, Honda’s decision to pursue quality over quantity is the key element that allows Honda to gain a long term competitive advantage against other companies in the automobile industry.

Creating Shared Value, is it Always Successful?

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After reading Yi Liu’s blog Why Organic Foods, I decided to state my views of the effectiveness of creating shared value in businesses. Yi Liu’s article pointed out how McDonald’s started to build a shared value by using organic produce. I agree with Yi’s point that this business decision will enter McDonald’s into a new market that can potentially brighten the prospects of the business. However, it is debatable that this strategy will create a sustainable positive growth for McDonalds.

I think McDonald’s attempt to increase its sales by suddenly creating a shared value is not a sustainable and the most suitable solution for the company. I feel re-conceiving their products in this way is too far from the original culture and value proposition of this company. In a sense, this strategy is not very promising in the long run as people will not go to McDonalds to seek healthier food option ,instead a fast delicious tasting meal. This strategy might boost sales in the short run as it spikes the curiosity and excitement of the market, however not sustainably.

Overall, I believe focusing on other parts of social need such as a better employee-employer relationship is a more reasonable possible shared value that McDonald’s can consider.

Family Influence in Businesses – Response to Victor Leung’s Blog

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This blog is a response to Victor Leung’s blog Family Controlled Firms Success. In his blog he emphasized on how family controlled firms maintain their success by providing stability through the concept of family in the working environment.

 Firstly, I would like clarify that I agree with Victor’s point. The presence of control of the founding family undoubtedly will provide the employees and also consumer with stability and trust. This is proven in the case of Asian electronics giant Samsung, French beauty company L’oreal, and a retail giant Walmart. These companies are very successful, showing the benefits of family influence on the growth on companies. On the other hand, what constitutes as “family controlled” are not very clear as there are no common definition of it. Family influence in a business can come in different forms such as management positions, stockholdings, and board representation. Each of these influence affect the workings of the business in different degrees.

In addition, I strongly believe that the presence of family influence should be cultivated from the beginning, unlike what victor pointed out. Instead of getting a professional takeover during growing and unstable state, family controlled businesses should preserve their corporate structure as it might be very hard to obtain control when the business is already far influenced by other external parties.

References:

http://www.businessinsider.com/the-10-largest-family-businesses-in-america-2011-11?op=1 

http://www.businesskorea.co.kr/article/3413/samsung-materials-business-samsung-materials-affiliates-hold-investment-due-slow

Technology Changed the Apparel Businesses and also our Minds

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The continuous global spread of technology has made the shopping experience so much more different than before. The distribution of internet users allow apparel businesses to take advantage and maximize cope of sales. In addition, advancements in technology have changed the way businesses compete and the way consumers perceive a brand. Apparel companies are rapidly following the trend by changing their old retail habits.

Online shops have obviously given consumers with the luxury of staying in the comfort of their homes while purchasing their products. I believe the easy access to information of products has made shoppers can know as much as the sales person. This shift from the traditional retail rituals tighten competition between retail businesses in general. Just by tinkering the digital display,design and content on their websites apparel brands such as Zara, Urban Outfitters, American Eagle Outfitters, and J.Crew will directly change their appeal to consumers.

 The availability of technology and information have rose competitive advantage of the apparel industry. I feel that the pressure of having an online shop has made it harder for apparel brand to compete to be the first on the consumers mind. Through my personal shopping experience, i concluded that the presence of online shops as a new channel for these apparel brands adds as another dimension for consumer to consider when trying to make a purchase.

The progression of technology has undoubtedly made a huge impact on the competitiveness of the apparel business. Overall, technology not only has change the industry but also how our minds, consumers, grasp a brand.

 

References:

https://nrf.com/news/top-100-retailers

http://training.tonyrobbins.com/11-ways-technology-has-changed-our-lives/

http://www.theguardian.com/media-network/media-network-blog/2014/mar/03/brands-technology-changing-face-retail

 

Site C, is it really sustainable ?

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PVEA

 

Promised to be a new source of clean, renewable and cost-effective electricity, Site C is an enormous project built to sustain the BC population for the next decade. It involves the construction of a third dam and a hydroelectric generating station that will support 450.000 homes per year. This long term project, however raised a lot of controversy regarding its impact on the community and ecosystem surrounding the site.

The construction of the dam will result in the flooding of 83 kilometres of the Peace River Valley, demolishing farming area and wildlife habitat. The $8 billion project pose a huge threat not only to the ecosystem but also the lives of First Nations that use the area to fish, hunt, and practice ceremonial services. This means, project site C generate a conflicting externalities to the community around the area. To be more exact, the development of project Site C will abolish activities such as farming, fishing, and hunting in the area. This externality should be considered crucial to the life of the First Nations as it affect their food source, directly impacting their day to day lives. Acknowledging that the project is built to create sustainability, I strongly believe it is more than possible for more sustainability problems to emerge from the building of this dam.

 

In addition, Site C project not only affect the materialistic side of First Nations lives but also the culture and practices that is furthermore threatened by the flooding of this area. The site is seen as a respected place, a home that is used for ceremonial practices which in my opinion should be reserved and protected for the sake of the future generation of the First Nations.

 

On the bigger scale, it is understandable that the increase in population and demand for energy creates pressure for the government to expand more energy source. Overall, I believe that BC’s government should put more effort in finding another solution to solve the problem of energy scarcity as the Site C project can not only generate great positive long term impact, but also negative.

 

References:

https://www.sitecproject.com/sites/default/files/info-sheet-need-and-alternatives-june-2014.pdf 

 https://www.bchydro.com/energy-in-bc/projects/site_c.html

http://www.vancouversun.com/opinion/op-ed/Opinion+need+Site/10188814/story.html

http://www.vancouversun.com/news/metro/Site+threat+billion+ecological+values/10075979/story.html

New Opportunity or a Wrong Decision?

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Apple Watch

Said to be launched in 2015, the apple iwatch has already raised various comments from different stakeholders.

 

The apple iwatch is not just a timepiece but also a small computer that enable its users to send messages, use simplified apps, connect to Siri and access the internet . This product development is not a surprising move from Apple, considering the increase in popularity of wearable gadgets in the market. The iwatch will be launched with various stylish designs to cater different segments of the market, which I think a huge turn from Apple’s previous product decisions. I believe Apple’s stylish, unique and limited number of design play a huge role in the success of Apple’s products. The availability of several designs can potentially ruin the unique selling point that Apple posses.

 

On the other hand, it seems that Apple has adopted a new approach in building a differentiated product than before, taking account the recent launch of iphone 6. No matter what Apple decided, its decisions are very powerful considering it has all the ace in the bag.

 

Michael Kors, Heading for a Huge Crash

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Michael-Kors-flagship-store-New-Delhi-India-at-Emporio-Mall

A highly known luxury fashion label, Michael Kors, is going downhill according to the recent report regarding its share prices. With inventory increasing, Michael Kors shares have decline 25% in the past six months.

 

High sales volume is a green light for a business, but maybe not in this case. The recent phenomenon experienced by Michael Kors is caused by too many people wearing the brand itself, making the brand less cool for the public eye, therefore decreasing demand. Its suspected that the decline in the business is caused by its use of several brands I several price points to reach different level of the market segments that in this scenario, completely backfires.

 

With many people wearing the brand, it’s losing its unique selling point as a product in the market. However, this is not the case of Louis Vuitton and Prada which rise a new speculation about the cause of this decline. In my opinion the price put plays a crucial role in the fall in the performance or Michael Kors as a luxury brand. Careless marketing decision lower the brand image, which is everything in the luxury bag industry.

 

In the end the collapse of brand image can be avoided by maintaining the appropriate value propositions to be in the luxury brand industry. New marketing decision is needed to stop Michael Kors from going to square one.

 

http://finance.yahoo.com/news/3-reasons-michael-kors-could-162301709.html

 

 

Blackberry Took its Last Chance in the Smartphone Market

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After the arrival of John S. Chen in the company, Blackberry seems to have made its first move to regain it’s success in the smartphone industry by launching it’s new product, Passport. Admitting that its future relies on selling mobile data management and securities to governments and corporations, Blackberry realised that this is its last chance to relight its game in the industry.25blackberry-web2-master315

Looking back, it seems that Blackberry has lost its appeal in the smartphone industry, proven by its decreasing sales. The launch of its new product, passport, doesn’t seem to reflect a processed constructing strategy either. Passport features a square display and physical keyboard that doubles as a touch sensitive track pad, which seem to be the only selling point that blackberry tries to focus on. In addition, the square shaped screen seems to serve as a problem in terms of cost rather than an advantage for the company. Priced $50 away from the basic iphone 6 it further reduces the competitive advantage of passport in the market. With the recent launch of iphone 6, it is a bad time for Blackberry to launch its new product even though it’s mainly targeted on old customer base. Overall, no major improvements or changes have been made to the product or the company in general, which may have made the whole product development ineffective to save blackberry in the smartphone market.

On the other hand, this might be the tip of the iceberg for Blackberry considering that it will launch another new product, Blackberry classic. While we still don’t know Blackberry’s next strategy, looking over, the new product development still has a high chance of not getting Blackberry back on their feet.

 

References :

http://www.nytimes.com/2014/09/25/technology/under-new--blackberry-unveils-its-newest-smartphone.html?ref=international

BC’s Groundwater Source Exploited, Who is Responsible?

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The lack in government involvement in the regulation of ground water use seems to be emphasised in this article. However, I believe that the use of unethical practices by Nestle, a multi-billion dollar company should receive more critic.

As stated by Ed Freeman, it is crucial to consider the well being of all stakeholders of a business, which has been completely neglected in the case of Nestle. By taking 265 litres from BC water sources without considering the externalities generated towards the community Nestle may gain some negative good-will which can affect the company’s competitiveness in the long run. As the matter of fact, with the increasing awareness towards sustainability and environment this case can lead to bad publicity, therefore drop in sales. On the other hand, this issue is almost impossible to be reprimanded as there are no specific laws regarding ground water regulation in BC which put the community of BC on the losing side. Additionally, the introduction of water regulation can lead to the rise in the price of bottled water, which is a loss for the consumers and later on, Nestle itself.

 In a broader perspective, the absence of CSR in Nestle corporate practice can cause sustainability problem that impact a wider community in Canada. In consideration of business competitiveness and consumer welfare, the establishment of law regarding groundwater is the most suitable solution to this growing problem.

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http://www.timescolonist.com/news/local/wild-west-of-groundwater-billion-dollar-nestl%C3%A9-extracting-b-c-s-drinking-water-for-free-1.587568 Continue reading →

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