“What do Government, Big and small business’ have in common?”

According to Tema Frank, a digital marketing specialist with her own podcast show, the answer is respect for their staff and a willingness to listen to those on the front lines.

Jeff Mackey, Fujitsu Consulting’s Managing Director of Business Consulting in Western Canada, is the inspiration for this idea and he speaks to the validity of applying it to business decisions in his interview on the podcast. Below is a list Tema created following the interview on the “Lean Process Improvement”, a method that improves businesses by working on the front lines.

Keys to Success In Lean Process Improvement

1. Management commitment

2. Sustained visible executive presence

3. Patience for results

4. The process is a frustration for the staff as well as your customers

5. Focus on right things (not cost reduction; that’s a by-product of improving the processes)

6. Start with small projects, get a win, and build momentum

7. Involve all key stakeholders, right from the start

This development of a “lean” model is not dissimilar from concepts discussed in class as we approached the idea of lean start-ups; that is start-ups with an ever changing business model that defines their business model canvas as they discover what customers want in the market.

There seems to be a trend noted in the advancement of traditional business methods and tools towards creating solutions where adaptability is maximized and their is a focus on the ability of companies to innovate and stay ahead of the competition.

Source:

Tema Frank, from Frank Online Marketing podcasts:

http://frankonlinemarketing.com/fom48-jeffmackey-lean/

Canadian cellular company Rogers and U.S. based Sprint have both engaged in services where Wi-Fi will be installed into vehicles. They are hoping to capitalize on peoples necessity to always be connected to the internet, even while on the road.

Distracted driving has been a huge issue these past few years with cell phone use causing many accidents and the public demanding government regulation.

By installing internet connections into vehicles, these companies are encouraging distracted driving so they may profit from it.

While the possibility to make money in this market is obvious, whether the ethics behind the decision are sound is another question.

With this move, Rogers proves that their core values of their company are to maximize profits within the regulations of the law, but not to a higher, more socially responsible level.

Personally, I agree with their entry into this new market. Milton Friedman believed that the companies should work to maximize the profits of the company within the regulations of the law but no further; this laissez-faire attitude is the basis of capitalism and the realistic market with in which we operate.

The public has the option to purchase this service and therefore they are responsible for any negative outcomes, not the company selling the service.

Sources:

Fellow Sauder Student Alex Tanaka:https://blogs.ubc.ca/alextanaka/2013/09/29/rogers-and-sprint-are-bringing-wifi-to-our-cars/

Wi-Fi enabled cars pose ‘great concern’ to safety, says researcher

http://www.thestar.com/business/tech_news/2013/09/26/rogers_and_sprint_to_offer_highspeed_wifi_in_cars.html

Sears, once a prominent name for a department store in Canada, is being driven out of the market by an increase in competitors and their inability to maintain customers.

With relatively low barriers to entry for international department stores, brands like Nordstroms and Target are making their way into Canada and differentiating themselves from Sears, taking away from Sears Value Proposition.

Although people generally view Sears as a trustworthy brand, they have lost their points of difference and are seeing this result reflected in their loss of revenues.

With the surge in online shopping, Sears once well known for their catalog and mail in orders, lost a huge branch of their business as competition from this new avenue emerged.

Sears, unable to use it’s strengths as a company to undermine these threats, lost a major point of revenue and subsequently their competitive edge. Through this complacency and inability to adapt, Sears is following Kodak onto the list of companies dying in the 21st century.

Sears would benefit by analyzing how Porter’s Five forces are applicable to their company, a lesson taught to first year Sauder students. By expanding on their points of difference in the department store industry segment, Sears has an opportunity to revive their business and avoid the downsizing and cost cutting that is currently occurring.

Sources:

Blog post by fellow Sauder Student Kathryn Huynh: https://blogs.ubc.ca/katbhuynh/2013/11/01/sears-canada-closes-flagship-store-as-well-as-four-other-locations/

http://www.ctvnews.ca/business/sears-canada-selling-stake-in-8-properties-will-keep-stores-open-1.1536988

http://business.financialpost.com/2013/11/11/sears-canada-montez-income-properties/?__lsa=6c4f-f975

Evan Spiegel, founder of SnapChat recently refused a 3 billion dollar offer from fellow social networking giant Facebook for the company he started in September 2011 while studying at Stanford.

With SnapChat still not producing revenue, a quick glance at such a large offer would have most people questioning how Facebook placed such a high value on the company.

With 350 million photos being shared per day in September, SnapChat has shown a trend of exponential growth without showing signs of slowing down, and Facebook is getting nervous.

Will the competition from SnapChat take away from Facebook’s user’s? I say it is doubtful and agree with Mr. Spiegel that the two forms of social media can coexist without harm.

However, Facebook is known to try and purchase perceived threats as they did with Instagram. So as SnapChat begins to move towards monetization it will be interesting to see Facebook make even more substantial offers in the future.

Observing a 3 billion dollar offer being rejected by a 23 year old college student is an inspiration for many to follow their entrepreneurial passions. While the risk is great and failure is common, the rewards of pursuing and achieving your dream can be plentiful.

Sources:

http://www.businessweek.com/articles/2013-11-13/snapchats-3-billion-rejection-and-the-great-facebook-unbundling#r=hpt-fs

http://www.forbes.com/sites/tristanlouis/2013/11/16/snapchat-and-other-best-and-bungled-billion-dollars-offers/

http://www.bbc.co.uk/news/technology-24925932

http://www.theguardian.com/technology/2013/nov/13/snapchat-app-sexting-lawsuits-valuation

As defined by Albert Einstein Insanity is doing the same thing over and over again and expecting different results. Companies that utilize stack ranking, a system that places employees on a bell curve and firing the low performers, has been proven to reduce productivity since the system was founded in 1980.

Unfortunately for Yahoo, Marissa Mayer has decided this method, that has been proven unsuccessful, is the best way for her to inspire an organizational culture that will take Yahoo from the bottom to the top. As Albert Einstein would say, this is Insanity.

As a tech company, Yahoo must look to foster a culture where employees are highly motivated and creativity is supported so that innovation, the key to riches in technology, is achieved at a level above the competition. By stack ranking employees and threatening them with their jobs, Yahoo is effectively demotivating their employees and encouraging them to look for other jobs where there are no concerns about job security and they are allowed to focus on what is most important, their work.

With this insane mistake of a human resource strategy, Yahoo is digging their grave in a market they are already trailing in.

If only Yahoo had a Sauder Graduate to steer them off this course of action, motivation and organizational culture is something taught as a basic in Sauder’s first year classes.

Sources:

http://www.businessweek.com/articles/2013-11-12/yahoos-latest-hr-disaster-ranking-workers-on-a-curve#r=most popular

http://www.ibtimes.com/what-stack-ranking-microsoft-ends-controversial-employee-rating-system-yahoo-ramps-it-1468850

http://www.news.com.au/technology/business-technology/another-hr-fail-by-marissa-mayer-angers-yahoo-employees/story-fn5lic6c-1226759112333

Unless you have been living under a rock in the ocean, on another planet, within another galaxy, you are aware of the tidal wave of technology advancements that have been occurring since the arrival of the personal computer and the internet.

These two concepts have revolutionized nearly every aspect of life today. In the business world, companies have been created, and destroyed, but ultimately have achieved a higher level of efficiency with technological tools.

Amidst this rise of technology, information has become even more valuable as business’ and mathematicians begin to find relationships  between different metrics that are collected internationally from a multitude of industries. Thus came the concept of Big Data.

Big Data is a fast paced industry emerging from the collection and analysis of information. With low barriers to entry, many small start-ups are emerging to provide different angles of the Big Data service.

Considering that over 70% of IT investments from firms go to waste, is this new pursuit of Big Data desirable?

I believe the understanding of new relationships found within this new industry will ultimately be beneficial to large corporations  by allowing them to make better decisions. This is extremely important where one small decision can have massive effects on revenue.

Sources:

http://readwrite.com/2013/11/11/whos-getting-rich-in-the-big-data-gold-rush?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+readwriteweb+(ReadWriteWeb)#awesm=~omWKP0AL438Qhy

http://www.marketwatch.com/story/is-big-data-gaming-mutual-funds-2013-11-11

Within the last five years, Hyundai Motors has experienced tremendous growth as a company. Shares have skyrocketed and the market share Hyundai occupies has increased significantly, especially in North America.

When looking at how Hyundai has become so successful in a market with many rivals, a key factor has been their marketing and ability to increase the overall image of their brand.

Just recently, Hyundai has taken a crisis and used it to create revenue and promote a socially responsible image. The United States Federal Shutdown has caused over 800,000 workers to be furloughed and without pay until the government agrees on a budget. As a result, Hyundai has deferred car payments this week for the federal workers and has also offered a 90 day grace period for federal workers to purchase cars without payments.

While motor companies offering deals like this are not out of the norm, by targeting specific individuals involved in dire straits Hyundai builds positive PR and encourages new customers. Cost-Free marketing is something Hyundai has been able to master and is undoubtedly a factor in their continued growth.

Sources:

http://www.businessweek.com/articles/2013-10-03/the-korean-automaker-is-guaranteed-good-pr-at-very-little-cost

http://www.bloomberg.com/news/2013-08-22/hyundai-canada-aims-for-10-market-share-to-match-toyota.html

http://www.google.ca/finance?cid=5477224

Snapchat, an app created by Stanford students that allows users to send self destructive photo messages, has had a surge in popularity since its inception in September 2011. Currently, over 350 million “snaps” are sent a day and yet the company still has yet to monetize their service.

Snapchat has released a new update this week that allows users to create their own personal “stories” by creating temporary profiles of pictures from their day that last for up to 24 hours. This could possibly be the step investors are looking for that will create a revenue stream for Snapchat. By having users create these story profiles and become linked to companies with their own profiles, advertising can be narrowed down and directed at certain groups of people creating a viable advertising platform.

While the new stories function uses Snapchat’s strengths to open the door for opportunities, it also increases the competition between it and other social media giants like Instagram, Vine, and Facebook. Now all competing in the market for social updates, each company will have to continue to work on development to separate itself from the competition.

Will Snapchats new update allow them to create revenue and compete with Facebook? Or will the stray from their niche discourage user’s from using their service? Time will tell.

Sources:

With An Eye On Revenue, Snapchat “Experiments” With A Click-To-Buy Button

http://www.independent.co.uk/life-style/gadgets-and-tech/snapchat-adds-stories–but-can-it-take-facebooks-crown-8856329.html

http://www.latimes.com/business/technology/la-fi-tn-snapchat-stories-feature-20131003,0,4668010.story

In first year economics we are taught that a decrease in input price through technological advances shifts the supply curve to be able to produce more and ultimately increases the profitability of a company. With the emergence of tablets many companies have analyzed how they can incorporate tablets into their services to not only benefit the customer but also reduce their costs.

Currently, there is a large demand from airline companies for tablets because it allows them to not only reduce a large amount of paperwork that is needed to travel with each flight, but it also makes it faster for pilots to access information and for flight attendants to charge clients for additional items on-board.  Delta Airlines alone projects annual savings of $13 million.

This growing market has encouraged fierce competition between Microsoft and Apple. Both companies directly distribute to their airline clients, which results in contracts that can provide a tremendous source of revenue.

Who will win? While Apple is known as the premier maker of tablets, Microsoft has dominated the business consumer segment and holds a key advantage in attaining contracts with large corporations, as can be observed with their deal with Delta Airlines.

As we look towards the future and take into account Apple’s vast adaptability, it would not be surprising for Apple to develop a new product that will allow them to compete with Microsoft at the business consumer segment.

Sources:

http://www.microsoft.com/en-us/news/press/2013/sep13/09-30deltapr.aspx

http://www.usatoday.com/story/travel/flights/2013/09/30/delta-picks-microsoft-for-pilot-tablets/2899185/

The Deepwater Horizon Spill made international headlines in April 2010. The spill located in the Gulf of Mexico off the shores of Florida and the outlying regions in the Southern United States is a globally acknowledged catastrophe that will always be associated with off-shore drilling.

The British Petroleum Company has been criticized extensively and despite reparation payments of over $42 billion, their corporate image will always carry a tarnish. But what about other companies and their oil spills? Sure the spills may not be as large but are their environmental effects not just as troubling?

Another giant oil company, Royal Dutch Shell, also had a major spill that occurred prior to BP’s. A burst pipeline located on the Niger Delta region in 2008 has leaked approximately 600,000 barrels of oil into a local river and the environmental effects have been endless.

So what is the difference between Shell and BP? Shell’s spill occurred over five years ago and absolutely no reparation payments have been made. No effort to clean it up has occurred, and it has not been spread and distributed as an international issue.

Utilizing this contrast of events it can be inferred that in today’s global community the serious business responsibility issues that occur in developing countries can be easily ignored; while the countries lucky enough to have international interest enjoy media and multi-national governmental pressures.

Sources:

http://www.bbc.co.uk/news/world-us-canada-10656239http://www.ibtimes.com/five-years-after-devastating-oil-spills-nigeria-shell-may-finally-cough-millions-1404212

http://www.bloomberg.com/news/2013-04-19/bp-still-uncertain-over-spill-cost-at-third-anniversary.html

http://www.theguardian.com/environment/2012/sep/23/shell-attacked-niger-oil-spill-clean-up-delay?utm_source=Daily+Media+Briefing&utm_campaign=b6ae6d1d97-Daily_Media_Briefing_14Sep&utm_medium=email

http://www.ibtimes.com/five-years-after-devastating-oil-spills-nigeria-shell-may-finally-cough-millions-1404212

Note: The last two links are dated a year apart. Same issue, with no action.