In an informative blog regarding the Lululemon enterprise by Tiffany Tsao, I was interested by her view on Lululemon’s entrepreneurship. According to Tiffany, it’s entrepreneurial since it has an innovative manner, and at the same time generates sufficient value towards the customers to cover their costs. Lululemon has chosen a controversial approach by creating brand identity around community and learning, while performing very little advertising. Despite this usual method Lululemon has created a very loyal customer base.

There are four aspect that distinguish an Entrepreneurship from a small business. They are the amount of wealth creation, speed of wealth creation, risk, and innovation. Lululemon has definitely excelled in wealth creation by generating a ridiculous $340 million annual revenue. This rapid wealth creating has occurred over a short span of 10 years, which furthermore distinguishes Lululemon from small businesses. Risk was very high for Lululemon due to their unusual lack of advertising, and a unique brand identity. Both of those strategies could have backfired, but the success of Lululemon lies in their distinctiveness from others and the willingness to take risks. Lastly in terms of innovation Lululemon has taken yoga wear to the next level through trendy designs, and comfortable material. Therefore it’s safe to say that Lululemon is a perfect example of an entrepreneurial business.

Work Cited:

“My Religious View? Ah, Lululemonism. | life in a box.” UBC Blogs | Home. N.p., n.d. Web. 22 Nov. 2011. <https://blogs.ubc.ca/tiffanytsaoo/2011/11/16/my-religious-view-ah-lululemonism/>.

“A Definition of Entrepreneurship and the Entrepreneur.” QuickMBA: Accounting, Business Law, Economics, Entrepreneurship, Finance, Management, Marketing, Operations, Statistics, Strategy. N.p., n.d. Web. 22 Nov. 2011. <http://www.quickmba.com/entre/definition/>.

My fellow classmate Eric Tsai wrote a blog about the effects of the NBA lockout on the business as well as on the fans. Eric Tsai stated that the current NBA lockout threatens the business as it allows fans to chose from other substitutes. He also explained how the lockout affects fan’s loyalty, as they might become frustrated to the point that they stop supporting the sport, and not invest in tickets, cable games, NBA accessories, etc. Therefore Eric suggested that the lockout is a losing strategy for both parties since the loss of fan support will devastate their business.

This topic can be related to the Porters Five Forces lecture, as well as to the Marketing research and Consumer Behaviour class. First I must disagree regarding the high amount of substitutes. NBA is by no means the only professional sport in North America, however it is much larger and more advanced compared to it’s closest direct substitute; NCAA basketball. Other pro sports should not be treated as close substitutes, and therefore we can assume that they will not affect an NBA fan’s judgement. Regarding consumer behaviour the NBA has conducted market research in the past, and after the last NBA lockout it took a long time to restore their fan base. Its easy to understand that all fans want is to see their favourite players step on the court, and the lockout is obviously impeding that. Even despite a very strong fan base the owners must realise that if they continue disregarding the interest of fans by prolonging the lockout, then this would result in profit losses from related goods & services sales. Therefore the only sensible option would be to end the lockout, and resume play.

Work cited:

“Upcoming NBA Season seems unpromising… | Eric’s blog.” UBC Blogs | Home. N.p., n.d. Web. 22 Nov. 2011. <https://blogs.ubc.ca/eric1121993/2011/11/16/upcoming-nba-season-seems-unpromising/>.

“Porter’s Five Forces.” QuickMBA: Accounting, Business Law, Economics, Entrepreneurship, Finance, Management, Marketing, Operations, Statistics, Strategy. N.p., n.d. Web. 22 Nov. 2011.<http://www.quickmba.com/strategy/porter.shtml>.

The congressional debt committee was over on Monday morning after unsuccessful negotiations regarding the issue on debt reduction. The main issues were the rising health costs and an unwieldy tax code. Therefore the committee had to come up with a minimum of $1.2 trillion dollars to help solve USA’s financial crisis. This failure took a toll on the stock market as Dow Jones’ shares went down by 2%. Throughout the negotiations the main issue remains the disagreement about ways to raise tax revenue, and reduce spending. Just as with the NBA Lockout issue both parties are accusing each other of lying and concealing information, which has furthermore caused a rift between the two sides.

This debt issue can be related to the “Finance & The Recent Crisis” lecture. The fear over this non-resolved has negatively affected future economic forecasts, and therefore the shareholders decided to sell their shares in fears of stock crisis. This crisis symbolizes a dysfunction in communication between the two parties. This along with the accusations of lying, and the mistrust atmosphere has negatively affected these negotiations. Therefore its increasingly difficult for a deal to be made since the two sides have to work through the personal issues impeding their progress.

Work Cited:

Sahadi, Jeanne. “Debt committee calls it quits without a deal – Nov. 21, 2011.” CNNMoney – Business, financial and personal finance news. N.p., n.d. Web. 22 Nov. 2011. <http://money.cnn.com/2011/11/21/news/economy/debt_committee_failure_final/index.htm?iid=Lead>.

When one thinks of computer software, or of a leader in technological innovation Apple usually comes to mind first. Established as a small company on April 1, 1976 by Steve Jobs Apple has grown into a global giant. Whether one is looking for razor thin laptops, or innovative smart-phones, Apple has it all.

Apple is an entrepreneurial business, meaning it was founded by a person, Steve Jobs, and has produced new and innovative products, and has created new forms of organization. When apple started coming out with Macs and Ipods/Iphones there was a huge demand for such innovative products, which generated massive revenue. Apple fits the criteria of an entrepreneurial business as it has created substantial value over a short period of time, while taking on a lot of risk. It always risky to create new and innovative product as you are unsure how the public will respond to it, and if there will be a high demand. Lastly Apple was and still is highly creative, they come up with new products, and improve their technology and software to satisfy the latest gadget demand.

Work Cited:

“A Definition of Entrepreneurship and the Entrepreneur.” QuickMBA: Accounting, Business Law, Economics, Entrepreneurship, Finance, Management, Marketing, Operations, Statistics, Strategy. N.p., n.d. Web. 22 Nov. 2011. <http://www.quickmba.com/entre/definition/>.