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