Star-No Wait, Charbucks.

Starbucks tried to stop a small family owned coffee shop from selling a product called “Charbucks.”  They were worried that it would distort the Starbucks image as the name is associated with the Charbucks specialized dark roast coffee. This relates with brand positioning and displays Starbucks caution with their brand name as it can be a very fragile thing.  Starbucks does not want any business to have the power to potentially disturb the brand they have worked so hard to establish.  However, “the 2nd US Circuit Court of Appeals said Black Bear Micro Roastery and its owner, Wolfe’s Borough Coffee Inc, may keep selling “Charbucks Blend,” “Mister Charbucks” and “Mr. Charbucks” coffee.”  This is due to the fact that the court found the name weakly associated with Starbucks.  It is very interesting to note how Starbucks was worried about a small family owned coffee shop, as Starbucks is such a large corporation.  This shows the power of a brand and how important it is to small and large businesses to ensure that its brand name is not tainted and that it has strong brand positioning among its customers.

http://www.reuters.com/article/2013/11/15/starbucks-charbucks-lawsuit-idUSL2N0J01DZ20131115

IKEA: Thinking Ahead

Businesses have been blamed for being responsible for many negative causes in the environment.  Some corporations have a narrow-minded and outdated view that being environmentally friendly is less cost-effective and will harm profits.  However, IKEA’s owner, Steve Howard, has a very different view.  He recently purchased a wind turbine farm in Alberta that holds twenty wind turbines.  Steve Howard stated that “sustainability has become a must-do for business.”  Steve Howard is an example of an innovated and updated thinker who is willing to bring business and the environment back together.  This is an example of shared value as IKEA is expressing its concern of the environment and taking the necessary steps to use and purchase clean energy.  IKEA also has 3,790 solar panels installed on the roofs of three of its stores in the Greater Toronto area.  IKEA is an example of a corporation that is focusing on using clean energy as well as manufacturing products called “green products” that customers can purchase to use clean energy as well.  IKEA is a forward thinking corporation which has stepped out of the narrow minded thinking of many corporations that still exist today as it is willing to incorporate shared value (the environment) into its business strategy.

http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/ikea-eyes-low-carbon-future-with-alberta-wind-energy-project/article15436596/

How Risky is Too Risky?

This article reflects the cause and effect relationship when proper business ethics are not followed.  JPMorgan was willing to sell mortgages and invest when it deemed too risky.  These risks were taken due to greed and the desire to make more money.  The bad mortgages that were sold had a detrimental effect as homeowners could no longer afford their mortgages as the price of housing went down during the period of 2008, also known as the mortgage crisis.  Many homeowners lost their homes as they could no longer pay off their mortgages.  Not only did this affect shareholders and homeowners, it also affected the American economy.  A home is a staple in a stable economy as a home comes along with family, the purchase of appliances, vehicles etc.  The loss of a home means the loss of buying power affecting much more than homeowners but instead businesses, banks, government and other consumers.  JPMorgan is being criminally investigated for the “wrongdoing associated with the bank’s mortgage practices” and are being investigated in mortgage practices as well as mortgage-bond investors to make sure that the bank did not go around investment policies instilled by the board of investors as if they did, they would be criminally negligent for those investing practices.

http://www.bloomberg.com/news/2013-10-19/jpmorgan-said-to-have-reached-13-billion-u-s-accord.html

Carl Icahn Illustrates Shareholder Power

This article illustrates the ability of shareholders control in a company.  When a company decides to go public, it allows for shares in its company to be bought.  In this article, Carl Icahn buys 5.97% of the energy company Talisman Energy Inc.  Icahn is a billionaire investor who recently decided to get involved with Talisman as their shares have increased 13 percent, however over the past three years has fallen 27 percent due to the “slumping of natural gas prices.” (Bloomberg)  Icahn “may seek talks with management as the company struggles to sell assets.”  Assets are things of value owned by a business and can include cash and receivables, inventory, supplies, equipment, land and buildings.  Therefore, Icahn is involving himself in this company to help Talisman sell some of these assets, in their case, most likely their energy sources.  Due to Icahn’s ownership of the company he can now talk with the management regarding “strategic alternatives, board seats, etc.” and help them sell assets in order to make more money.  This article relates to the accounting we learned in class as assets less the liabilities equals shareholder’s equity.  Therefore, Icahn is getting involved in this company to increase the assets so that when, less the liabilities, the shareholder’s equity is increased.

Loon, Jeremy Van. “Icahn Buys 5.97% of Talisman, May Seek Talks With Company.”Bloomberg.com. Bloomberg, 07 Oct. 2013. Web. 07 Oct. 2013.

http://www.bloomberg.com/news/2013-10-07/icahn-buys-5-97-of-talisman-may-seek-talks-with-company.html

Hoo is Hootsuite?

Time is an interesting concept, not only does it entail things such as aging, it also causes the acceleration of knowledge and as time goes on, we as a society learn more and produce more advanced products.  Once upon a time, VCR’s were the ‘hot’ thing to have.  At their time, they were the technologic advancement of the day.  They found a loophole in consumer goods and produced a product that satisfied consumers.  In today’s day of age, technology has developed incredibly rapidly and VCR’s are now part of the dinosaur age.  Instead, consumers are using things such as the Internet, for social media, something that has given rise to companies such as Twitter and Facebook.  However, this new advancement in our society has created companies with the opportunity to create a completely new customer segment.  Hootsuite, a new and uprising company, has found a business structure that uses societies advancements to its advantage.  Hootsuite is a company that allows you to manage social media accounts in one application.  Hootsuite has highlighted its value proposition to customers as a more efficient and convenient interface in which one can easily access all their social media websites such as Twitter and Facebook and maintain these websites by being alerted to new notifications and updates.

“Mashable.” Mashable. N.p., n.d. Web. 07 Oct. 2013.

http://mashable.com/2013/09/18/hootsuite-beginners-guide/

Will technology uprise new products or new companies?

Whether a company is starting out or is the largest companies in the world, it is still essential for companies to be cognizant of new products and technology as substitutes are becoming increasingly easier for consumers to choose from. A company always needs to be evolving and coming out with state of the ark products.  Facebook is a $6 billion company that is, at present, used as a social media service.  However, they are talking about expanding to also become a search engine.  This could cause a shift of users from Google, a $60 billion dollar company, to instead use Facebook as a search engine.  Apple has also introduced its audio search engine, Siri.  This competes with the Hummingbird audio search engine Google is implementing in Android phones.  The hummingbird search engine will also be used in the Google glass, acting as another competitor for Siri. This article is able to highlight the increasing technological advancements.  This amelioration of technology also displays how companies must be willing to grow and expand whether it is by introducing new products or a new business structure.  A company that is not aware of others competitor’s advancements cannot be a competitor itself and will quickly be forgotten in the race of new and advanced technology products.

“Google, Apple And Facebook Are At War Over ‘Latent’ Search – A Business That’s About To Be Huge.” Business Insider. N.p., n.d. Web. 06 Oct. 2013.

http://www.businessinsider.com/google-and-facebook-are-at-war-for-domination-of-latent-search-a-business-thats-about-to-be-huge-2013-10