Category Archives: Uncategorized

“If  the United Nations was fully funded why would we need the Arc or social enterprise”?

In my opinion, even if the United Nations was fully funded, we would still need social enterprises such as the Arc to assist with the scope and allocation of such funding for social issues. Given the amount of global issues (health, security, gender equality, etc) being addressed and still needed to be addressed currently by the UN, fully funding the UN would give resources to approach the critical issuses, but the quantity and scope of all pressing issues would widen. With the numerous committees in the UN addressing a variety of issues, more funding could bring support to more issues, but coordination, organization, administration and allocation with the funds would become more complex. This is where social enterprise and corresponding organizations like the Arc would be required, helping to direct funding into the respective niches of social enterprise and assist in addressing the issues within the social enterprise niche.

A “trickle down” situation could occur, where the funds from the UN could be misallocated, underused or overused in the higher levels for administrative purposes, and the people in need of the funded resources and programs may not actually receive the supported. Thus, even with a fully funded UN, social enterprises can assist in the directions of funds, by advising and providing insight and background to the UN of the scope and breadth of the issues needed to be addressed. Different social enterprises are familiar with struggles and issues needed to be addressed, so with the existing infrastructure and newfound support from the UN, social enterprises can serve as good advisors for a fully funded UN.

UN Logo, taken from: http://detroitwaterbrigade.org/wp-content/uploads/2014/10/un_logo.png

After reading Winnie Woo’s blog post on customers travelling an extra distance to Whole Foods due to their awareness of the shared values, and discussing social sustainability, shared values and corporate responsibility in class, I realize the importance and its influences on my purchases and brand perceptions. When I was in elementary, I remember one of my teachers had “special” soccer balls we could play with at recess, and they were special because every ball she bought, someone else in the world also received one. The balls were coverted, cool and popular for kickball and soccer because it never went flat or needed a pump. While nostalgically reflecting upon the breaks of my childhood, I found that the balls we used to play with were The One World Futbol.

The One World Futbol, nearly indestructible and no pump needed. Taken from : http://www.oneworldfutbol.com/

The One World Futbol Project, was founding sponsored by Chevrolet and partners with many organizations and causes, is a company that creates social value. Their mission is to “bring the healing power of play to youth worldwide by making, selling, distributing nearly indestructible balls that survive the harshest environments. Collaborating with sponsors, organizations and individuals, [they] deliver balls to disadvantaged communities where play and sport are used to foster social change”. In addition, with a purchase of a Futbol, they donate one to organizations working with youth in disadvantaged communities. Alternatively, consumers are able to buy Futbol’s and directly donate to the various organizations. Going back to Winnie’s blog post, although I may not have realized the business components of The One World Futbol in the third grade, but the lasting impression I had, nine years later not only established The One World Futbol Project position in customers’ mind, but shared the company’s values for all consumer demographics.

Works Referenced: “ONE WORLD FUTBOL PROJECT.” One World Futbol Home Comments. One World Futbol Project. Web. 9 Nov. 2014. <http://www.oneworldfutbol.com/>.

This past Tuesday November 4th, upon announcing possible changes of cutting service between Nanaimo and Horseshoe Bay, BC Ferries was met with huge backlash immediately Wednesday morning.  A report submitted to the BC Ferries Commisioner titled “Strategies for Enhanced Efficiency in Performance Term Four and Beyond” pointed out the cost savings of re-routing most Nanaimo traffic through the Tsawwassen terminal south of Vancouver, in addition to many other issues of:

•Focusing efficiency plan of the next five years on the Southern Gulf Island routes.

• Reducing the number of Southern Gulf Island routes and having live aboard crew on the new servicing ships.

•Aiming to convert the engines of the Spirit of Vancouver Island and British Columbia to run on liquefied natural gas (LNG) by 2021, saving 50% of the cost spent on diesel, with savings up $45 million by 2020.

• Giving more fare flexibility and access to routes when booked in advance, and considering eliminating reservation fees.

• Digital overhaul by improving its online booking systems and reducing costs on call centre bookings, potentially saving $7 million by 2020.

Primarily, the possible elimination of the Nanaimo route did not sit well with BC Ferries users, and many shared their views on social media as well as flooding the Mayor John Ruttan of Nanaimo will emails and calls.  A day later, BC Transportation Minister Todd Stone told reporters that the route would definitely not be cut.

Reading about this on the news reminded me of our business plans and the previous individual assignments where we took the positions of consultants. These fictional assignments has us focusing on the firms, and I realize that I don’t think about the scope of my recommendations, especially on the consumers or clients of the firms. The BC Ferries case reminded me that in the real world, the aftermath of a suggestion can garner attention and backlash from the public, requiring concerns to be addressed.

BC Ferries Vessel, http://www.bcferries.com/at_the_terminal/where-we-sail.html

Works Referenced:

CBC News. “BC Ferries Nanaimo-Horseshoe Bay Route Will Not Be Cut Says Minister – British Columbia – CBC News.” CBCnews. CBC/Radio Canada, 5 Nov. 2014. Web. 8 Nov. 2014. <http://www.cbc.ca/news/canada/british-columbia/bc-ferries-nanaimo-horseshoe-bay-route-will-not-be-cut-says-minister-1.2825374>.

CBC News. “BC Ferries: Nanaimo-Horseshoe Bay Route-cut Proposal Sparks Outrage – British Columbia – CBC News.” CBCnews. CBC/Radio Canada, 5 Nov. 2014. Web. 8 Nov. 2014. <http://www.cbc.ca/news/canada/british-columbia/bc-ferries-nanaimo-horseshoe-bay-route-cut-proposal-sparks-outrage-1.2824713>.

Read more on the BC Ferries Report : tp://www.bcferrycommission.com/wp-content/uploads/2014/10/2014-09-30-Efficiency-Plan.pdf

After reading Florence Fong’s post “MLSE Devoted to Canadian Brand“, discussing how CEO Tim Leiweke selected a Canadian sponsor (Canadian Tire) in the place of Rona’s choice of discontinuing its contract with the Maple Leaf Sports and Entertainment. By avoiding foreign owned retailers, she discusses Leiweke’s strategy to maintain the interest of the Canadian public and differentiate its company.  Her blog post made me realize the importance of understanding the demographics and psychographics of customer segments, especially in a hockey crazed country like Canada.

For MLSE customers, the choice to stay close to home through Canadian sponsors reiterates an unified country identity and support. The “Canadian” brand associated with hockey has assisted companies with their marketing strategy, as Florence mentioned, however, marketing under the umbrella of “hockey” also requires strategies of differentiation to reach an unique position within the industry. When I read the article Blood, sweat – and tears: Scotiabank shoots at hockey’s softer side , linking many concepts mentioned in Florence’s post, I recognized many points of differences that Scotiabank pursued to maintain the interest of the Canadian public amidst the oversaturated hockey advertisements. They began with market research, assessing the landscape of hockey advertisements and realized that many marketing campaigns were filled with “chiaroscuro shots” of NHL stars, constant reminders of heritage, and dramatic music. Scotiabank established an unique position by using humour to remind customers that they not only sponsored the National Hockey League, but also community hockey teams in Canada. For a more authentic and homely approach, they listened to the feedback of their customer segments, and delivered a mixture of humour, charm and authenticity with their emotive campaigns filled with humour and heart. Professor Norm O’Reilly of Ohio University, specializing in sports marketing and adviser with TrojanOne conducted research and found that “when people connect brands to the values they care about in the causes, events or organizations the brands sponsor, those associations can affect their attitudes deeply”. Sponsors like Scotiabank seek to tie themselves with values that resonate with Canadians, eventually influencing the intent of consumers as well as the affinity to the companies.  Both MLSE and Scotiabank understood their customer segments while used different channels to improve their respective brandings through the common theme of hockey.

See the mesh of emotions and humour delivered as part of the “Fifth Season” in Canada campaign by Scotiabank: https://www.youtube.com/watch?v=9H8goUvI4t4

 

Source: John Cairns Blog #hockey #sorrynotsorry http://johncairnsblog.wordpress.com/2014/02/22/sorry-all-the-other-sports-hockey-is-the-best-part-of-the-winter-olympics-bar-none/

Works Referenced:

Krashinsky, Susan. “Blood, Sweat – and Tears: Scotiabank Shoots at Hockey’s Softer Side.” The Globe and Mail. The Globe and Mail Inc, 2 Oct. 2014. Web. 30 Oct. 2014. <http://www.theglobeandmail.com/report-on-business/industry-news/marketing/blood-sweat-and-tears-scotiabank-shoots-at-hockeys-softer-side/article20898455/>.

Krashinsky, Susan. “Marketing Sponsorships Relying on Blind Faith.” The Globe and Mail. The Globe and Mail Inc, 11 July 2014. Web. 30 Oct. 2014. <http://www.theglobeandmail.com/report-on-business/industry-news/marketing/many-marketing-sponsorships-flying-blind-on-effectiveness/article19576464/>.

Today, I discovered Guy Kawasaki’s blog titled “How to Change the World” after seeing it frequently mentioned as a “must read blog”, and I gained some insights from his post on evangelism, a new and unfamiliar concept.  Currently the chief evangelist of Canva, an online graphic design tool, previous chief evangelist of Apple, an advisor to the Motorola business unit of Google and author of a dozen books, Kawasaki explains how a product or service can be “evangelizing” if it can significantly change the world. Despite the word sounding quite religious, evangelizing is creating content and value, and relying on customers to deliver marketing messages to other potential customers by word of mouth, much like “preaching” the brand others. Evangelism marketing seems to be the delivery of value propositions with the mixture of using customer segments to further the customer channels. I never really thought of the idea of “concept marketing” like Kawasaki has at Canva, but I realize that I’ve been exposed to the elements of evangelism marketing, and have been a customer of products from this. Evangelizing marketing makes products more customer friendly, allows for consumers to absorb as much information, and then reaching decisions. According to him, evangelizing a product requires:

1. Making it great, its easier to evangelize deep (many features), integlligent, complete, empowering and elegant products.

2. Positioning your product as a cause, as “causes” change lives and position it to show how it can improve lives. “Evangelists need to seize the moral high ground and transcend the exchange of money for goods and services.”

3. Loving the cause: being an evangelist is a way of life, and you should love what youre promoting.

4. Localizing the pitch: Keep the product pitch simple and straight forward, rather than using flowery language like “paradigm shifting”.

5. Looking for agnostics, ignore atheists: if a person doesn’t “get” your products in 15 minutes, move on

6. Giving people ways to “test drive” the products and let them decide for themselves.

7. As an evangelist, one must know how to give a demonstration of the product. According to Kawasaki, demonstration should be involuntary or second nature.

8. Providing safe and easy first steps by removing all the barriers to access.

9. Ignoring titles and pedigrees, as success as an evangelist requires acceptance of everyone and respectful treatment of all. Here is one of his TEDx talks about innovation and tradition: https://www.youtube.com/watch?v=rWv-KoZnpKw

Works Referenced:

Kawasaki, Guy . “How to Change the World.” ‘How to Change the World’. N.p., 29 Apr. 2014. Web. 24 Oct. 2014. <http://blog.guykawasaki.com/#ixzz3H1ureyND>

Cartoon demonstrating some of the unfulfilled claims made by Red Bull, credits to Garrett Montgomery, TheSpreadIt.com.

Recently, energy drink supplier Red Bull faced an US class action lawsuit, agreeing to pay more than $13 millions, after being accused of misleading consumers with false advertising.  The plantiff, Benjamin Careathers, a customer since 2002, argues that Red Bull deceived customers by claiming  ” improvement on concentration and reaction speeds”, and that the slogan, “Red Bull gives you wings”  was in fact false due to the lack of scientific backing. Consequently, Red Bull will reimburse disappointed customers a check for $10 or a voucher for $15 worth of all products, for the past ten years. Personally, I agree with many points made in tdhe INQUISTR article, such as the claim of being gifted “wings” is obviously an overexaggerated slogan accompanied by unrealistic animations. Despite the drinks being advertised on TV, Internet, social media outlets and through celebrity endorsements, one would expect any rational consumer to take everything with a grain of salt. Strangely enough, the plantiff admmitted to continuing to purchase Red Bull over an eleven year, despite it not working for him. Could this be a case of consumer laziness and the failure to critically evaluate and conduct research? We’ve learned of the importance of designing and conducting research on consumers in marketing, so in a case like Red Bull, can we start to hold consumers accountable for their (lack of) research into the products? 

Works Referenced:

Matthews, Toni. “False Ad Settlement: Are Red Bull Customers Victims Or Mentally Lazy?.” The Inquisitr News. N.p., 6 Oct. 2014. Web. 8 Oct. 2014. <http://www.inquisitr.com/1523703/false-advertisement-settlement-red-bull-pay/#7wP5VlUKU0Rhu52B.99>.

Rothman, Max. “Red Bull to Pay $13 Million for False Advertising Settlement.”BevNETcom. BevNET.com, 5 Aug. 2014. Web. 9 Oct. 2014. <http://www.bevnet.com/news/2014/red-bull-to-pay-13-million-for-false-advertising-settlement>.

O’Reilly, Lara. “Red Bull Will Pay $10 To Customers Disappointed The Drink Didn’t Actually Give Them ‘Wings’.” Business Insider. Business Insider, Inc, 8 Oct. 2014. Web. 8 Oct. 2014. <http://www.businessinsider.com/red-bull-settles-false-advertising-lawsuit-for-13-million-2014-10>.

Often political, social and environmental factors affect the ventures of energy industries, as seen with BC Hydro’s proposed construction of a dam and 1100 MW hydroelectric station on the Peace River in British Columbia, meeting opposition from First Nation chiefs. Chiefs argue that flooding of the valley “would destroy farmland, wildlife habitat, and impair their rights to fish and hunt”. With both parties seeking to protect their interests, BCHydro targeting the growing population, the First Nations concerned about their lifestyles, this brings up a crucial question in economics: Is it possible for choices to be made pursuit of social interest as well as the self interest?

BC Hydro’s proposed Site C

Can there be a compromise satisifying both parties? Ultimately, I think it is inevitable for an unbalanced compromise, mixed with different considerations of the environmental, political (land rights) and social (way of life) factors. Despite the Supreme Court ruling in June that the Crown can only justify infringing on Aboriginal title lands by “demonstrating both a compelling and substantial governmental objective,” and the broader benefits “must not be outweighed by adverse effects on the Aboriginal interest, historically, settling conflicts between the First Nations and resource industry development whilst keeping the interests of First Nations is time consuming and often has unforseen implications.

A deformed white fish caught in Lake Athabasca near Fort Chipewyan, Canadian Press

For example, the Mikisew Cree of Fort Chipwyea thought they would economically benefit from the developement of the oil sands in the Athabasca region; however, unpredictable social and economic consequences like the unusually high rates of cancer and emergence of deformed fish stocks were both unforseen and cost the community more than they had anticipated. Given the unpredictability of the future, only time can determine the implications and correct the imbalances of resolutions.

Works Referenced:

O’Neil, Peter. “First Nation chiefs to stage Site C showdown.”www.vancouversun.com. Post Media, n.d. Web. 5 Oct. 2014. <http://www.vancouversun.com/news/First

“Site C Clean Energy Project.” Site C Clean Energy Project. BC Hydro, n.d. Web. 5 Oct. 2014. <https://www.bchydro.com/energy-in-bc/projects/site_c.html>.

  Following the decision of Japan’s Sony in selling their  PC division to Japan Industrial Partners, ceasing the design and development of any PC products, including their Vaio computers,  Samsung has announced the end of their sales of laptop computers in Europe, reiterating many of the business model and strategic concepts discussed in class.

  Due to the “drastic changes in the global PC industry”, Sony has decided to concentrate on the smartphone and tablet lines whislt splitting their TV division into a wholly-owned subsidiary. As seen on the Business Canvas Model under revenue streams, Samsung’s Chromebook outsold many rivals due to its low cost; however, there were slim margins of profit, signalling Samsung to adapt to the market needs and demands.  They have recognized value propositions in “phablets” (phone-tablets), thus shifting their focus from laptops, where according to technology consultant Windsor Holden from Juniper research, “from a consumer’s perspective, where the strength of [Samsung] lies”. In renewing their focus on mobile devices, there are more opportunities of re-positioning.

  According to Ries and Trout, a crucial component of product positioning is getting into the mind of consumers through an unique position. Samsung is set to establish themselves in an unoccupied position, with its soon-to-be-released Galaxy Note 4 smartphone with an add-on virtual reality headset. I think that Samsung’s incorporation of virtual reality technology may be the value proposition that solidifies their unique position in the fierce technology market full of strong players like Apple and Lenovo.

Samsung’s wireless headset, the Samsung Gear VR Innovator Edition launched with the Galaxy Note 4, Wednesday, Sept. 3, 2014 (AP Photo/Markus Schreiber)| Associated Press,

Works Cited

Kelion, Leo. “Samsung ends laptop sales in Europe.” BBC News. BBC, 24 Sept. 2014. Web. 27 Sept. 2014. <http://www.bbc.com/news/technology-29350022>.

Masill, Ben. “Samsung Gear VR is better than Oculus Rift.” PC & Tech Authority. NextMedia, 24 Sept. 2014. Web. 29 Sept. 2014. <http://www.pcauthority.com.au/News/392428,samsung-gear-vr-is-better-than-oculus-rift.aspx>.

“Product Positioning.” QuickMBA Knowledge to Power Your Business. QuickMBA.com, n.d. Web. 29 Sept. 2014. <http://www.quickmba.com/marketing/ries-trout/positioning/>.

Schiesser, Tim. “Sony sells off Vaio computer division, restructures TV business.” TechSpot. TechSpot Inc, 16 Feb. 2014. Web. 27 Sept. 2014. <http://www.techspot.com/news/55581-sony-sells-off-vaio-computer-division-restructures-tv-business.html>.

“Wholly Owned Subsidiary Definition | Investopedia.” Investopedia. Investopedia, A Division of US MAC, n.d. Web. 27 Sept. 2014. <http://www.investopedia.com/terms/w/whollyownedsubsidiary.asp>.

Less than a month after Amazon bought Twitch.tv, a video game streaming site at nearly $1 billion, today, Microsoft announced its $2.5 billion purchase of the Swedish firm Mojang, responsible for the popular video game Minecraft. It is increasingly common for companies to recognize the plethora of opportunities in the less frequented market of video game culture.

This purchase exemplifies many features of the 9 key building blocks of the business model canvas. For customer segments, Microsoft’s purchase of Minecraft not only diversifies the target markets, but appeals to the mass market of consumers within the electronics and gaming industry. With Minecraft recently released for the Xbox One and Playstation 4, and a top selling paid for app for Androids and Apple, more customers will be reached through for Microsoft’s next decisions. A great move by Microsoft for the company’s impressive array of value propositions ranging from smartphones (see: Microsoft purchases Nokia), tablets, computers and now, gaming.

Microsoft’s recent acquisition of Minecraft not only builds a stronger customer base but offers resources to better Minecraft. Microsoft’s recognition of the impact of online gaming communities echoes Professor Marc Skilton of the Warwick Business School that, “the online gaming industry is fast moving from niche collective enthusiast to mass market and Minecraft is a logical move as big business follows the traffic numbers in the digital worldbase” (Miller).

Just one of the millions of possibilites to be created on Minecraft. Source: Amazon Eliza Steel, gameskinny.com

Works Referred to:

Dashevsky, Evan. “Amazon Buys Twitch, But What Is It?.” PCMAG. Ziff Davis, LLC. PCMag Digital Group, 26 Aug. 2014. Web. 16 Sept. 2014.<http://www.pcmag.com/article2/0,2817,2465070,00.asp>

“Microsoft officially welcomes the Nokia Devices and Services business.” Microsoft News. Microsoft, 25 Apr. 2014. Web. 15 Sept. 2014 <http://www.microsoft.com/en-us/news/press/2014/apr14/04-25nokiapr.aspx>.

Miller, Joe. “Microsoft buys Minecraft for $2.5bn.” BBC News. BBC, 15 Sept. 2014. Web. 15 Sept. 2014<http://www.bbc.com/news/technology-29204518>.

Osterwalder, Alexander, Yves Pigneur, and Tim Clark. “Canvas.” Business model generation: a handbook for visionaries, game changers, and challengers. Amsterdam: Alexander Osterwalder & Yves Pigneur, 2010. 14-16. Print.

Edward Freeman’s stakeholder theory states that successful businesses creates value and considers the interests of customers, financiers, and suppliers. Together, the integration of all groups contributes to a standout business. Recently, Yelp, an online review center has come under the spotlight following the Ninth U.S. Circuit Court of Appeals in San Francisco dismissing a proposed class action lawsuit against Yelp as small businesses accused Yelp of “extort[ing] advertising payments by manipulating reviews” (Winkler). The judge ruled that Yelp is entitled to setting prices and not legally required to post positive reviews (Egelko).

The alleged manipulation of reviews tarnishes the reputations of small businesses and Yelp. Part of the stakeholder theory states that businesses that don’t pay attention to corporate responsibility issues, such as the accused extortion, will be regulated. Linking back to government intervention, one may view the government intervention and ruling favoring the interests of Yelp (larger business) rather than the smaller businesses. Governments must decide, create, and enforce rules for a flourishing society, similar to structural aspects of a business. To what extent can the government make decisions that consider the interests of all parties involved? Once again, the boundary of the government’s position in business becomes blurred.

A posting on a San Francisco restaurant with claims against Yelp. – Wall Street Journal

References

Egelko, Bob. “Yelp Can Manipulate Ratings, court rules.” SFGate Business. SFGate, 2014. Web. 9 Sept. 2014.

What Is Stakeholder Theory? – R. Edward Freeman. Perf. R. Edward Freeman. 2009.

Winkler, Rolf. “Yelp Has No Obligation to Display Positive Reviews, Federal Judge Rules.” DigitsTech News & Analysis from the Wall Street Journal.  Wall Street Journal, 2014. Web. 8 Sept. 2014.