A positive online presence can immensely impact  the revenue of the company because people often read online reviews before venturing into new things. The article states that some people even value these reviews over the opinions of a friend. Seeing the public’s reliance on review sites, there is a growing market for fake reviews. As a result, up to 15% of the total reviews online are fake because companies can pay as little as $5 to purchase made-up testimonials and deceive future consumers.

As a consumer myself, I also tend to read online reviews before investing in a new purchase or exploring a new restaurant. I have rarely doubted the integrity of online reviews but this article definitely makes me question the credibility of a firm’s online reputation. Firstly, I believe that writing fake reviews is unethical business practice because companies should build honest relationships with consumers instead of using deception to yield revenue. In addition, this leads to unfair competition in the market, where sub-par companies can actually outshine superior companies due to their fake reviews. I think this encourages a vicious cycle where the consumers will be less and less likely to trust online reviews while more and more companies follow the trend of fake testimonials due to the increasing pressure in the market. Furthermore, this problem actually extends beyond having a bad meal; lawyers, dentists and doctors are also using this technique to attract clients, which could affect one’s life incredibly. I believe regulations must be established to restrict these activities but before then, the only thing consumers can do is to sample widely and be cautious and analytical of the comments found online.

After reading Stephanie’s blog post  and learning that Lululemon denied the sheerness of their yoga and placed the blame on consumers, I admit that I am also saddened by their ignorance and discrimination against plus-sized women. Lululemon is a company that advocates a positive lifestyle by promoting fitness, health and peace of mind. But in this situation, instead of inspiring consumers with their values, they victimized those who really need their help. I believe that way Lululemon resolved the situation will eventually cause irreversible damage to the company because not only does it upset the women whom they victimized, other consumers, myself included, are also outraged by the scandal.

If I was given the opportunity to resolve the problem, I think that a better way to handle the situation is to compensate customers for the poor quality of the yoga pants. Although this may cause the firm to temporarily lose profit, it maintains a positive brand reputation, which I believe is one of the most important aspects of a retail company. In addition, I view this situation as a chance to expand customer segments and take advantage of shared value. For instance, Lululemon can launch a plus-size line that targets curvier women. They can also offer incentives to people who are trying to begin a healthier lifestyle. This could entail giving certain discounts or gifts to first-time shoppers. With this approach, I think that in the long-run, Lululemon can successfully expand their brand not only to those who are health-enthusiasts but also to people who need just a bit of motivation to lead a healthier lifestyle.

On Pandodaily, David Holmes’ blog post discusses the results of Twitter’s third quarter earnings report, which falls perfectly under the predictions of Wall Street analysts. Twitter brought in $361 million of revenue compared to the expected $351 million and also picked up 13 million new users. Despite the seemingly positive results, Twitter’s stocks dropped as much as 13% in the first 30 minutes after the release of the report, which was surprising to me.

After considering Holmes’ analysis on the results, what seemed like promising results at first glance, to my dismay, actually hints failure. In his blog post, Holmes compared the 13 million new users, which seems like a hefty number, to the 284 million current users. When put into perspective, the user growth becomes incredibly insignificant and it has actually been decelerating for the past 5 years. Holmes further discusses Twitter’s temporary monetization growth and how it will eventually be flattened by decreasing user growth. His analysis on the earnings report changed my perception on how I examine earning reports because Holmes not only studies how the company is doing now, but also compares these results to the past results and what the company could experience in the future. Furthermore, he was able to foresee the future adjustments of Twitter according to market trends, which I believe is critical skill of a successful investor. Seeing how thorough and professionally Holmes was able to analyse Twitter’s earnings report, it encourages me to consider these points as well when I analyse earning reports in the future.

In recent years, many consumers have switched to using digital transactions instead of cash and cards, complaining that it too cumbersome and frustrating to use. With electronic wallets, payments are processed through the smartphone, which is attractive to many users, especially younger audiences. Regardless of the convenience and simplicity of the invention, skeptics argue that it encourages users to exceed their budgets because they are less aware of their purchasing decisions.

The innovation of e-wallets and digital transactions is an excellent example of disruptive innovation as it disrupts the existing transaction procedure by replacing cash, cards, and point of sale systems with digital transactions on a smartphone. However, I think that rather than improving the quality of business transactions, the innovation of digital transactions may be a step backwards from our current system. As mentioned before, consumers are less conscious of how much they are spending when using digital transactions, causing them to develop unhealthy spending habits and fall into debt. In addition, I think that online transactions may be more susceptible to fraudulent activities and scams. Another foreseeable risk is that if smartphones are lost or stolen, others may access the user’s financial information and make unauthorized purchases. Personally, I believe that the risks associated with digital transactions outweigh the benefits that it offers. I think this demonstrates how consumers must critically analyze disruptive innovations to determine whether or not it can successively replace the old system and add incentives.

Oftentimes, social responsibility and profit maximization can blend seamlessly into one procedure in the business world through the concept of shared value.  This concept is demonstrated by US drug-maker Johnson and Johnson, who has invested 200 million US in Ebola vaccine testing in hopes of defeating the virus that has terrorized and claimed the lives of many. Although safety testing on the vaccine is expected to commence in January of 2015, J&J stock has already rose 1.4 per cent to $101.75 since the announcement. Predictably, the stock of J&J will continue to increase as a result during of their commitment to Ebola research.

In my opinion, J&J demonstrates the perfect example of shared value by taking advantage of a social need, in this case a cure to Ebola, to fulfill both its ethical duty and business development.  In terms of business development, the global demand of Ebola vaccine will improve their brand recognition and reputation internationally. A more profitable future can already be detected through the increase of J&J’s stocks even before implementation of research. Although after IPO of the stock, the prices of stock does not directly affect the company, increasing stock prices indicate a healthy business with a stable executive team that can easily secure credit, attract further investors, and build partnerships. I believe that if J&J strategically markets the vaccines and takes advantage of its demand, it could make additional profits that compensate for the initial investment. For this reason, I think that Johnson and Johnson successfully captured the essence of shared value, which allowed them to improve the state of the world and simultaneously increase the competitiveness of their business.

                   Often times when businesses strive arduously for financial success, the impact of its actions on external factors can create many social, ethical, political and environmental issues between stake-holders. This is exactly the case with the Nak’azdli’s opposition against the Northern Gateway pipeline and the Tislhqot’s disapproval with mining their tribal park. In both cases, the Aboriginal parties feel a spiritual bond to the land and rely on it for tradition hunting and gathering of food. The exploitation of their land for economic reasons raises many concerns and external factors which may force organizations to adjust their business model.

As a result of diminishing supply of natural resources such as minerals and oil and an increase in demand, an incentive is offered to companies who can discover new resources because of the potential profit available. However, this comes in direct conflict with the culture and tradition of the Aboriginal peoples, who have been taught to protect their land. This has pressured businesses to revisit their models to perhaps find a compromise. A perfect example is the Northern Gateway Pipeline. This organization is fully-aware of the environmental concerns of their stake-holders. Thus, they formulated their business model to directly address this issue and promise an “environmentally responsible way to build a pipeline” as well as other environmentally-friendly claims to ease the concerns instead of sweeping them under the rug.  This is a rather innovative plan as they promise to use world class safety-guards to diminish chances of spillage or leaks. By formulating their business plan in terms of public concerns, it reduces the controversy of building such a long pipeline, especially crossing Aboriginal territory and is an excellent example of how external factors shape business plans.

Alibaba, being China’s biggest online commerce company, has grown exceptionally in the New York Stock Exchange as its stocks increased above predicted range of  60-66 to a whooping 68 dollars a share.  Alibaba has many popular trading sites under its wings such as Taobao (similar to E-bay) and Alipay (similar to PayPal) and has been largely successful in China’s market.

 In Jennifer Lin’s blog post, she mentions that Yun Ma has been so successful because he took advantage of enhanced the online services already available and brought to China’s demanding market.  I entirely agree with Jennifer’s point. Furthermore, I think that Yun Ma considered the requirements of the consumers in China. He realised that one of the greatest pains as a consumer in China is that any international shopping websites are censored and unavailable to the Chinese. Furthermore, the shipping overseas would be costly and impractical. Thus, by analysing the “pains” of the consumer, he was able to offer an incredibly successful “pain killer” which is Alibaba. It quenches the Chinese consumers’ thirst for an online market by offering a vast variety of products that are all shipped at little to no extra fees. On top of the “pain killers”, the products of Yun Ma also creates a variety of “gain creators” like affordable prices, fast shipping, rebates, secure check-out, etc. These incentives further grasps the loyalty of his customers. .  I think that the key difference between Yun Ma and other entrepreneurs is that he based his value proposition on the needs and wants of possible consumers, not on what his company is able to offer. Thus he was able to create a product that exactly fits the requests of the consumers.

Alibaba banners hang outside the New York Stock Exchange on Friday

The exponential growth of e-commerce throughout the past few years has put pressure on physical stores and shopping centres.  Many customers have been persuaded to purchase items online due to the lower prices and greater selection only achievable by an online store-front. Suffering from the shift of customers to online shopping, malls and big-box retailers have decided to offer more entertainment and digital attractions in hopes catching the attention of the consumers. For specifically, Cadillac Fairview Corp., one of Canada’s largest mall owners, has made drastic changes and plans to double its marketing spending to study ways to attract their customers.

I think that it is inevitable for online markets to gain popularity because they take advantage of the cost leadership strategy by offering a greater selection of products at lower prices and attainable from anywhere in the world. Clearly, shopping centres, such as Cadillac Fairview Corp, are taking a different approach by offering more in-store entertainment to customers because they simply cannot beat the prices of online stores where costs of maintenance and hiring staff are drastically minimized.  It is hard to say whether consumers will weigh entertaining environments over price and selection, but it is definitely a refreshing improvement that cannot be offered by e-commerce. Furthermore, consumers, especially the elderly, will always prefer the conventional method of shopping. Thus it is safe to assume that physical shopping centres are here to stay but is in need of drastic improvements to stay up with e-commerce.

Website link: http://www.theglobeandmail.com/report-on-business/industry-news/marketing/online-shopping-forces-malls-to-evolve-and-keep-customers-coming-back/article20777568/

In hopes of revitalizing BlackBerry’s dying market, the new BlackBerry Passport with a physical keyboard, 4.5 inch square screen and a 30 hour battery life was newly released on September 24^th, 2014. The Passport phone has the dimensions of a passport and fits perfectly in a suit pocket.  It is designated for businesses since its screen is perfect for displaying enterprise-friendly documents such as medical charts and spreadsheets. The phone is retailed 299 with a two year plan and a hefty price of 699 without contract.  Along with the launch of the Passport phone, BlackBerry also launched a new app called the BlackBerry Blend which enables users to sync data across computers and other mobile devices without a virtual private network.

Judging from the on-going decrease of sales and lack of innovation of BlackBerry products over the past few years, it is obvious that this brand no longer appeals to the general public, especially compared to its rivals Samsung and Apple. However, BlackBerry’s new strategy allows them to play their strengths and create a smartphone targeted towards corporate users. This strategy of product differentiation offers a glimmer of hope for BlackBerry since there is definitely a lack smartphones that are directed towards corporate use on the market. Thus, there is a foreseeable market for the Passport and a likely possibility that businesses will purchase bulk numbers for their staff. Product differentiation is possibly the only realistic strategy for BlackBerry to rejuvenate itself and I think it will be fascinating to witness the results that Blackberry’s Passport phone yields.

In many situations, the social responsibility of a business encompasses more than the maximization of profit.  Often times, personal values and ethics can generate a more superior result in a business than incessant profit-making.

An impeccable example is demonstrated by the executives of CVS, who are removing tobacco products from their shelf in order to “truly reduce tobacco use in America.” (Dainfo,2014)  By doing so, CVS inevitably loses profit that cigarettes engender. However in my opinion, this is no short of a strategic move since a positive brand reputation can offer more auspicious future prospects than the 2 billion dollars that CVS generates yearly from tobacco sales. (CNN, 2014) In fact, I believe that CVS may be able to compensate for the revenue lost from tobacco through the publicity and customer favoritism it receives from the moral decision. Furthermore, this decision allows CVS to receive support from their essential stakeholders, such as the customers and the community, which formulates business success according to Freeman’s Stakeholder theory. For these reasons, CVS is able to challenge the relentless money-making drive of businesses and pursue moral decisions to aid their success.

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