With the Occupy Wall Street movement gaining momentum last year, income inequality has become a common topic of discussion. While the wealth gap in the United States is mostly well-known, I recently discovered a viral video on YouTube which graphically illustrates the extent of this gap.

After watching the video, I was very shocked to see how enormous the wealth gap has become. Finding out that the wealthiest 1% make so much more compared to what is supposedly “the middle class” is astonishing. I, like the Americans surveyed in this video, did not think that income inequality was so drastic. Seeing the graphical representation of the data really put things into perspective.

I was reading the comments on this video and some suggest that these “CEOs who now make 380 times that of their average worker’s pay” have rightfully earned it. Yes, the United States is a country where if you work hard, you may one day achieve the American dream of wealth and success. But, could it really be true that these rich CEOs work 380 times harder than the average worker, are all honourable and not manipulative? I don’t think so.

While it is difficult to implement a solution to this growing problem, it is important to see the reality of the situation. Personally, it is really distressing to me to see that the top 1% holds so much of the country’s wealth while many other citizens are struggling. I hope that soon Americans will be able to push towards a more equitable distribution of wealth in their country.

The ability to use my business tool-kit to help entrepreneurs around the world improve their lives and the lives of others is extremely inspiring. Today’s class about applied social enterprises was my favourite of the entire semester. Through the ARC initiative, Sauder students are making a real impact in the world.

What struck me about the individuals who participate in the workshops led by the ARC teams is that they have such a strong passion for knowledge about business. Seeing their drive helped me to realize the true privilege I have as a student at Sauder. Through the ARC initiative, the Sauder School of Business is truly opening doors. I hope to be part of an ARC team one day!

Sources:
http://www.chnook.org/wp-content/uploads/2012/01/arc.jpg (image)

As a frequent reader of The Vancouver Sun’s online website, I was quite pleasantly surprised when I stumbled upon a blog written by staff members of the newspaper. There was a section of the blog specifically catered to business issues which I found very thought-provoking. I was exceptionally shocked after reading Tracy Sherlock’s post “Winning the Lottery Not a Good Financial Plan.” In her blog post, she describes a recent survey conducted by Capital One Canada which revealed that approximately one-third of Canadians’ include winning the lottery and receiving a large inheritance as part of their financial plan.

I couldn’t believe that so many Canadians relied on such fantasies to plan for the future. It’s no wonder that so many citizens are in debt! As articulated by the analysis of crisis in Europe done in our finance class, money mismanagement can lead to a tremendous disaster. Canadians should not be planning for their future on the basis of the idea that the debt they accumulate today will, by a magic stroke of luck, be paid off tomorrow. Instead, they should plan realistically for the future using their current situation as a starting point.

The Vancouver Sun’s blog is thought-provoking, entertaining and refreshing. I recommend this blog to anyone who enjoys learning more about Canada’s businesses!

The recent presidential election in the United States has been a popular topic of conversation for the past few months. While watching the second presidential debate, I heard republican candidate Mitt Romney propose fracking (hydraulic fracturing) as a way for the U.S. to increase oil and gas production on home soil. I had not heard of fracking prior to Romney’s mentioning of the practice, so Bart Kozdras’ blog post about the negative effects of hydraulic fracturing really caught my attention.

While reading Bart’s post, I thought back to our class about sustainability and corporate social responsibility. Companies are still attempting to get hydraulic fracturing regulated even though, as I discovered, the practice has devastating consequences on the environment. I was shocked as natural gas is often touted as a clean energy source and a great alternative to coal and oil. I find it very disheartening to hear that this method of natural gas extraction releases large amounts of greenhouse gases into the atmosphere and results in a negative impact on the climate.

The hydraulic fracturing method pumps millions of gallons of water underground to release natural gas.

However, the United States isn’t the only country who uses fracking to extract natural gas. Bart’s blog post neglected to mention Canada’s use of hydraulic fracturing in almost every province, including Nova Scotia, Ontario, Alberta and even our very own British Columbia. The Council of Canadians is calling for the elimination of fracking as water quality has been declining in the areas where the method has been used. Can Canadians come together to eliminate the unsafe practice of hydraulic fracturing? I hope so.

Sources:
http://www.rollingstone.com/politics/pictures/mitt-romneys-fracking-hit-list-20121102
http://www.pressoffice.cornell.edu/releases/release.cfm?r=56363
http://science.howstuffworks.com/environmental/energy/natural-gas-energy.htm
http://canadians.org/water/issues/fracking/index.html
http://8020vision.com/wp-content/uploads/2011/04/fracking.jpg (image)

Today’s class about entrepreneurship really encouraged me to begin thinking about my future here at Sauder. We heard about the business Janice Cheam created called Energy Aware, a company which sells energy monitors that tell users how much electricity they are using and how much it will cost them.

The PowerTab by Energy Aware.

It is very inspiring to know that Janice was a Sauder student just like myself, and that her small idea has grown into a very successful business. There are so many opportunities here for us at Sauder. Many of us Sauder students dream of starting our own companies, but never really think of it as an achievable goal. Although I am not certain of what my future will hold, hearing Janice’s story was really inspiring.

Sources:
http://www.energy-aware.com/wp-content/uploads/2009/10/powertab-home1.jpg (image)

Superstorm Sandy, which hit the U.S. east coast on Monday and Tuesday, devastated not only the cities which were struck by the hurricane, but also the world’s supply chains.

We learned in a recent Comm class the complexity of supply chains and the extent to which these chains extend throughout the world. The management of these chains is essential, as it is through them that producers, consumers, and corporations are connected. If there were to be a break in a supply chain, the entire process would not be able to be completed.

When Hurricane Sandy hit, it affected supply chains worldwide. Cargo was not able to be transported by sea or by air due to heavy winds. The east coast must now rebuild its damaged infrastructure and even as flights slowly begin to reopen, many suggest that supply chains may be backed up for weeks to come.

New Jersey coast following Hurricane Sandy.

So, how do companies prepare for climate disruptions to their supply chains? It is very difficult to predict when a storm will strike but preparedness for any natural disaster is crucial. The installation of levees, storm sewers and proper pipes in cities could have greatly minimized the effects of Sandy.

Sources:
http://www.aircargoworld.com/Air-Cargo-News/2012/10/superstorm-sandy-ravages-u-s-east-coast-disrupts-supply-chains/3010492
http://www.huffingtonpost.com/2012/10/30/hurricane-sandy-cuomo-bloomberg-climate-change_n_2043982.html
http://talkvietnam.com/uploads/2012/10/the-damage-caused-by-hurricane-sandy-to-the-new-jersey-coast-image-reuters-707373-175395680.jpg (image)

The recent lecture regarding social entrepreneurship illustrated how various entrepreneurs use business skills to create social change. As business school students, we are often bombarded with the idea that maximizing profits is what defines success. It is refreshing to explore how a business can remain profitable while also improving the lives of many people and impacting society in a positive way.

Prime examples of social entrepreneurs are Ned Tozun and Sam Goldman, Stanford Institute of Design graduates who turned their solar-powered lamp idea into a company called d.light. D.light sells affordable solar-powered LED lamps to people in developing countries where electricity is scarce. The solar lamps are much more affordable and less dangerous than kerosene lamps (which are highly combustible), allowing children to study more easily in the evenings.

Without d.light, almost 12 million people would not have a safe source of light in their homes. It is very inspiring to see that entrepreneurs are able to create businesses that change and improve society. The work by Ned Tozun and Sam Goldman demonstrates that a simple idea combined with business skills and determination can help many individuals around the world. 

Sources:
http://www.dlightdesign.com/
http://images.businessweek.com/ss/09/04/0403_social_entrepreneurs/8.htm
http://www.businessweek.com/stories/2009-10-14/an-update-from-one-of-bws-americas-most-promising-social-entrepreneur-finalists
http://cdn.trendhunterstatic.com/thumbs/d-light.jpeg (image)

In the world of marketing, effective brand positioning is very important. But, how do you position your product in a competitive market where consumers have many options to choose from?

One of the most competitive markets is that of mobile phones. With the release of Apple’s iPhone 5 in September, it was thought that Apple would boast a clear lead in sales over most mobile phones, namely Samsung’s similar Galaxy S3. Yet, it is surprising for some analysts to see that Samsung’s sales are still growing.

How was Samsung still able to capitalize on growth even with all the hype surrounding the new iPhone? With the use of relative positioning and comparative ads, Samsung was able to use the points of parity as well as the points of difference between the Galaxy S3 and the iPhone 5 to their advantage.

Samsung Galaxy S3 Ad: “The Next Best Thing Is Already Here”

Using advertisements such as the one above, Samsung portrays the new iPhone as old fashioned saying that their phone, the next best thing, “is already here.” Samsung defined the similarities between the Galaxy S3 and the iPhone 5, such as the touch screen and 4G network. Yet, they also used points of difference, for instance, the larger screen and touch to transfer feature to show consumers the user-friendly benefits of their phone compared to Apple’s.

Sources:
https://www.youtube.com/watch?v=QR8A3T6sPzU
http://news.cnet.com/8301-1035_3-57525052-94/samsung-galaxy-s3-sales-hot-despite-iphone-5/
http://www.halemarketing.com/theory/articles/is-your-product-powerfully-positioned.php
http://www.autoomobile.com/news/iphone-5-vs-samsung-galaxy-s3-27/1004728/

After reading Taylor Carkner’s blog post about Starbucks’ first store opening in India, I was intrigued to know how the company planned to enter into different country’s market. Starbucks has had enormous success in North America, Europe and Asia. However, deciding to open a new store in India definitely required some business plan revision.

Facing competition from Café Coffee Day, an already established coffee company in India, Starbucks has entered into a 50:50 partnership with Indian multinational giant Tata Group (a company whose Tata Nano car we had discussed previously in class.)

Tata Global Beverages and Starbucks join together as “Tata Starbucks Ltd.”

Starbucks has revised their previous business plan from opening 50 stores in one year to a slow entry into the Indian market, as a fast growth had failed earlier in Australia. The company is hoping to target wealthier customers with their first high-street store in Mumbai in order to position their brand, and then move on to launching stores in popular malls. They will also feature locally sourced espresso that is roasted in India.

Starbucks is smart for establishing their first store in a high-street location as Indian consumers will associate their brand with luxury and affluence. Partnering with Tata Group was also an extremely wise choice, as Tata is an Indian market veteran and will know how to give Starbucks a competitive advantage over other coffee companies.

Sources:
https://blogs.ubc.ca/taylorcarkner/2012/09/29/starbucks-looks-to-expand-globally/
http://www.moneycontrol.com/news/cnbc-tv18-comments/starbucks-brews-slow-steady-growth-plans-for-india_765759.html
http://www.bbc.co.uk/news/world-asia-india-19754584
http://www.hindustantimes.com/business-news/CorporateNews/Starbucks-to-open-first-outlet-in-Mumbai-by-October-end/Article1-936826.aspx
http://en.wikipedia.org/wiki/Starbucks

The multinational Swedish furniture giant Ikea has received harsh criticism in their home country after airbrushing women out of their Saudi Arabian catalogue. Many Swedes were offended by Ikea’s decision, believing that the deletion of women from the Saudi catalogue portrayed their country as being “gender unequal.”

Swedish catalogue on left vs. Saudi Arabian catalogue on right.

In Saudi Arabia, with an Islamic population of approximately 97%, the appearance of women in advertisements is rare. When they are shown on television, they are only depicted wearing traditional long-sleeved black dresses and scarves to conceal their hair. Exposed arms or legs in international magazines are always censored.

This raises the question, is Ikea’s deletion of women in their Saudi Arabian catalogue a sign of disrespect or the company’s attempt to conform to Saudi cultural norms? And if Ikea did release the same catalogue in Saudi Arabia as it did in Sweden, would this have caused backlash in the Muslim community?

Geographical expansion is a difficult feat for any company. Not only must it deal with growing costs and the development of new distribution patterns, but differing cultural and religious norms must also be taken into account. Ikea’s decision to remove women in their Saudi Arabian catalogue may have seemed outrageous in Sweden, yet completely normal for Saudi consumers. So, the question is, how does a company find balance?

Sources:
http://www.businessweek.com/ap/2012-10-01/ikea-deleted-women-from-saudi-version-of-catalogue
http://www.huffingtonpost.com/2012/10/01/ikea-saudi-arabia-catalogue_n_1928635.html#slide=1361762
http://www.guardian.co.uk/world/2012/oct/02/ikea-apologises-removing-women-saudi-arabia-catalogue (image from article)
http://en.wikipedia.org/wiki/Saudi_Arabia