There are perhaps only three topics of conversation that the typical Canadian will avoid at all costs: politics, religion, and anything that would damage the sanctity of our national treasure, the game of hockey. Throughout his recent post, “Advertisements to be Place on NHL Jerseys”, fellow blogger Justine Bearss explains that the National Hockey League is considering commercializing the jerseys of each franchise, and further, he outlines his support for such a proposal. Bearss cites the increased revenue that would result, a figure estimated to be north of $120 million. The projected surplus funds would presumably be used to expand the NHL’s reach by targeting underdeveloped markets, and by extension, grow the game of hockey as whole. In addition, potential sponsors would gain access to a broad and expanding consumer base, and as Bearss points out, “each brand will become more well known, and possibly increase consumer incentive to purchase their products.” Even commissioner Adam Silver of the National Basketball Association called jersey sponsorship throughout North America “inevitable within the next five years.” Implementation of jersey sponsorships within the next few years is seemingly all but a certainty, and there appears to be very little reasoning that would say it shouldn’t be.

While a $120 million increase in revenue is a seductive prospect, the NHL risks alienating a large portion of its consumer base, particularly if it is the first major league in North America (apologies to Major League Soccer) to actually implement the proposal. As a hockey fan myself, I was initially shocked and disappointed to hear that the NHL was even considering such an idea, and if the collective reaction on twitter was any indication, many other fans feel the same way. While the idea of logos on a jersey may seem innocent enough, I imagine it will be disconcerting for many to see a brand other than that of the team prominently displayed on every player’s chest. I remember looking with disdain at the commercialized European league jerseys (pictured right), each spotted with an unsightly assortment of logos. Even if the other major North American sports leagues do decide to move forward with jersey sponsorships, I feel that the NHL should resist the temptation, a decision which would actually help the league differentiate itself, as the last remaining league to retain its integrity. While it may mean sacrificing profits in the short run, after two lockouts within the last ten years, Commissioner Gary Bettman and the NHL cannot afford to risk the one sponsorship that does matter, the support of the fans.

Bearss, Justine. “Advertisements to Be Placed on NHL Jerseys.” Justine Bearss COMM101 Blog. N.p., 9 Nov. 2014. Web. 11 Nov. 2014. <http://blogs.ubc.ca/justinebearss/>.

Westhead, Rick. “Westhead: NHL Says No to Jersey Ads – and $120M Windfall.” TSN. N.p., 17 Sept. 2014. Web. 11 Nov. 2014. <http://www.tsn.ca/westhead-nhl-says-no-to-jersey-ads-and-120m-windfall-1.85030>.

“Ads On NHL Jerseys ‘Coming,’ League Exec Says.” The Huffington Post. N.p., 6 Nov. 2014. Web. 11 Nov. 2014. <http://www.huffingtonpost.ca/2014/11/06/ads-nhl-jerseys_n_6116996.html?utm_hp_ref=canada-business>.

Tarver, Brett. “Are Ads on NHL Hockey Jerseys Inevitable?” CTVNews. N.p., 8 Nov. 2014. Web. 11 Nov. 2014. <http://www.ctvnews.ca/sports/are-ads-on-nhl-hockey-jerseys-inevitable-1.2093179>.

Validated by the success of Martin Scorsese’s recent release, The Wolf of Wall Street, the public’s perception of the financial industry has perhaps never been more negative.  With documentaries such as Charles Ferguson’s Inside Job exposing the inherent flaws in a system that rewarded, rather than punished, the shamelessly immoral, and illicit, behaviour that directly led to the collapse of the financial industry, the general public no longer trust the financial institution. Rather than fines and sanctions, the large Wall Street firms responsible for the recession received bailouts desperate to restore order to the crumbling economy. However, in his recent post, SEC Commissioners Kara Stein, Luis Aguilar Hit Bank of America Where it Hurts, in a Revenue Stream, established blogger Yves Smith illustrates how the SEC, long considered a pushover by the industry, is beginning to exert its regulatory might.

SEC Commissioner Kara Stein (pictured right) is moving to “stymie giving Bank of America [a waiver] for its $16.7 billion settlement for selling toxic mortgages,” and instead “bar the Bank of America from fundraising for private concerns.” The proposed regulation would actually hit the bank where it hurts, as the ban would put a significant “dent in their [senior management’s] bonuses.” While traditional bank settlements rarely affect senior managers, or even yield rewards, in the case of JP Morgan CEO Jamie Dimon. By moving away from the agency’s typical “lax enforcement and other types of overly-financial-firm-friendly conduct” Kara Stein has certainly garnered Wall Street’s attention, something the SEC hasn’t had in quite some time.

While in most cases I would consider myself a champion of free markets and deregulatory principles, in this particular case I must agree with Yves Smith, and by extension Kara Stein; the time has come to hold the banks accountable, and if that means regulation that actually impacts individuals within a firm, so be it. The SEC and other regulatory agencies watched as the financial industry constructed a proverbial house of greed, and were then left powerless to prevent its collapse. For far too long, a skewed incentives system has permitted the banks to get away with defrauding the American public, and that illicit behaviour will only continue unless we allow regulatory bodies to implement significant penalties. Through the efforts of Kara Stein and Luis Aguilar, the SEC has taken the first step on the road to change.

Smith, Yves. “SEC Commissioners Kara Stein, Luis Aguilar Hit Bank of America Where It Hurts, in a Revenue Stream | Naked Capitalism.” Naked Capitalism. N.p., 10 Nov. 2014. Web. 10 Nov. 2014. <http://www.nakedcapitalism.com/2014/11/sec-commissioners-kara-stein-luis-aguilar-hit-bank-america-hurts-revenue-stream.html>.

Fundamental economic theory dictates that the processes the yield creativity, and further, innovation, are driven solely by the pursuit of profits. However, practical experience fails to corroborate that basic human assumption. Indeed, as Martin and Osberg perceptively note, “the truth is that entrepreneurs are rarely motivated by the prospect of financial gain… Instead, both the entrepreneur and the social entrepreneur are strongly motivated by the opportunity they identify.” The entrepreneur identifies what Martin and Osberg refer to as a “suboptimal equilibrium,” or more simply, a problem that society is working around, rather than eliminating. Then, the entrepreneur strives to institute a dynamic solution to the problem, and through the innovative solution, benefit society as a whole. The potential financial compensation for proposing said solution is usually a secondary objective.

How does this aspect of entrepreneurship, central as it may be, relate to the United Nations? “Promoting social progress, better living standards and human rights,” is not the sole objective of the U.N. Indeed, its primary function is to ensure international cooperation and peace. Even in its role as an agent of social change, it traditionally operates within the social paradigm, however unjust rather than revolutionizing it. Even if it was “fully funded,” the United Nations would continue to implement Band-Aid solutions, working around an unsatisfactory equilibrium, breaking out of it. The U.N. solution may alleviate societal pains in the short-term, but what about the future? Further, within the current system, recipients of aid aren’t permitted to champion their own social change.

In the long term, the social entrepreneur is a far more effective instrument of change than the United Nations. Rooted in local culture, with an intimate knowledge of key issues, t
he social entrepreneur utilizes creativity and innovation to “forg[e] a new, stable equilibrium,” that ensures an improvement in quality of life. Rather than continuing to throw funds at a problem until it disappears for a short time, a social entrepreneur will identify the key issue and propose a solution. Nobel laureate Muhammad Yunus (pictured right) perhaps best exemplifies the social entrepreneur. The impoverished in his community weren’t debilitated by a lack of effort or desire, they simply lacked a minuscule amount, an amount so small the western world might take it for granted, of financial capital to provide for themselves. Yunus simply provided the opportunity for small, unsecured loans, through said loans, enabled his community to take control of their lives. The Arc Initiative has seen similar results; by facilitating business solutions, it takes existing ideas, gives them economic viability, and allows them, and their owners, to flourish.

Martin, Roger L., and Sally Osberg. “Social Entrepreneurship: The Case for Definition (SSIR).” Social Entrepreneurship: The Case for Definition. N.p., n.d. Web. 10 Nov. 2014. <http://www.ssireview.org/articles/entry/social_entrepreneurship_the_case_for_definition/>.

“UN at a Glance.” UN News Center. UN, n.d. Web. 07 Nov. 2014. <http://www.un.org/en/aboutun/index.shtml>.

Kroekker, Jeff. “Can Fair Trade Boutique Expand without Alienating Customers?” The Globe and Mail. N.p., n.d. Web. 09 Nov. 2014. <http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/day-to-day/can-fair-trade-boutique-expand-without-alienating-customers/article4405520/>

Throughout Mrs. MacLean’s grade 10 Social Studies class, the discussion on sustainability in business revolved around several core issues; the most notable of said issues being the Keystone XL pipeline project. That was three long years ago. A vine was a source of grapes, the word “Gangnam” was known only in Korea, and a portion of the world maintained the belief that the world would be ending in December. Yet talks concerning the Keystone XL pipeline project remain at a standstill, with three years yielding little to no progress. It’s funny to consider how much and how little has changed.

Fast forward to present day, and with the Republican Party having recently gained control of both houses, the issue may be taking its first steps towards resolution. As CBC News writer Daniel Schwartz notes, “Before the election, the Democrat-controlled Senate had declined to deal with Keystone XL legislation coming from the Republican-controlled House of Representatives.” However, with the Republicans gaining control of the senate, the project looks all but certain to move forward, it being given a high priority by GOP leadership. Republican National Committee chairman Reince Priebus stated “we will pass the Keystone pipeline, number two,” after passing a budget. Republican Senator John Hoeven echoed the sentiment, saying “Keystone will be one of the first things we pass.”

As the Republicans hasten to push legislation forward, several parties remain convinced that the costs to the environment outweigh the economic and social benefits. While TransCanada CEO Russ Girling maintains that the project has cross-partisan support, several key members of Obama’s political base are wary of the potential environmental damages. From the perspective of John Elkington’s “triple bottom line,” the pipeline’s economic impact is self-explanatory, the social impact pertains to the tens, if not hundreds of thousands of jobs created for a stagnant American workforce, and the environmental impact adheres mainly to the serious harmful effects of a potential spill. Does the potential negative impact outweigh the expected economic and societal benefits? The answer is a resounding no. As Republican Randy Weber stated, “It’s jobs, jobs, jobs.” As the North American economy continues to struggle, the influx of jobs and the overall boost to both the American and Canadian economies will be a driving factor in accelerating their recoveries. As long as TransCanada continues to adhere to environmental legislation, the project can move forward, at long last.

Schwartz, Daniel. “Keystone XL Pipeline Prospects Get Boost from U.S. Election Results.” CBCnews. CBC/Radio Canada, 06 Nov. 2014. Web. 05 Nov. 2014. <http://www.cbc.ca/news/business/keystone-xl-pipeline-prospects-get-boost-from-u-s-election-results-1.2825401>.

Cattaneo, Claudia. “The Return of Keystone XL: U.S. Mid-term Election Battle Rekindles Pipeline Debate.” Financial Post Business. N.p., n.d. Web. 05 Nov. 2014. <http://business.financialpost.com/2014/10/14/the-return-of-keystone-xl-u-s-mid-term-election-battle-rekindles-debate-on-controversial-pipeline/?__lsa=9c17-8ed9>.

Cassata, Donna. “Republicans Counting on Swift Keystone XL Decision: ‘We Now Have the Votes'” CTVNews. N.p., n.d. Web. 09 Nov. 2014. <http://www.ctvnews.ca/politics/republicans-counting-on-swift-keystone-xl-decision-we-now-have-the-votes-1.2089776>.

As the now infamous Donald Sterling saga reached its conclusion, the Los Angeles Clippers were finally able to turn the page, beginning a new chapter in their history with former Microsoft CEO Steve Ballmer’s purchase of the franchise. The price Ballmer paid is cited as $2 billion, “almost four times as much as the record set a few months earlier, when the Milwaukee Bucks went for $550 million.” The enormous price tag likely dissuaded most potential investors, but in his interview with Josh Lipton, Ballmer maintains the franchise’s potential profitability. “Can the Clippers make money?” Ballmer asked. “Yes. Can they make more money than any other team in the NBA? Yes.” While Mr. Ballmer is undoubtedly passionate about basketball, he is also confident that the investment was a sound business decision, asserting his expectation that “this will appreciate,” figuring “the Clippers investment will match or outperform a Standard & Poor’s 500-stock index fund.”

The question remains, was the $2 billion
acquisition of the Los Angeles Clippers simply a billionaire fanboy squandering his vast wealth, or does it represent a savvy business investment? At present, it would be difficult to disagree with the latter. After experiencing a seamless transition in leadership, the National Basketball Association seems poised to take advantage of the growth of basketball nationwide. “The NBA [recently] renewed its vows with ESPN and TNT for $24 billion over nine years. This TV deal will generate $2.7 billion per year, up from the current $930 million.” The Association will be sure to parallel the model of success used by the National Football League, whose league revenues are approaching $10 billion. As revenues reach record highs, the sports industry as whole is experiencing unprecedented growth. Steve Ballmer just doesn’t want to miss out.

Vance, Ashlee. “Steve Ballmer’s New Life With the Clippers.” Bloomberg Business Week. Bloomberg, 16 Oct. 2014. Web. 09 Nov. 2014. <http://www.businessweek.com/articles/2014-10-16/steve-ballmers-new-life-as-owner-of-nbas-most-expensive-team>.

Golden, Josh, and Jessica Lipton. “Ballmer: I’ll Own Clippers ‘as Long as I’m Alive'” CNBC. N.p., n.d. Web. 09 Nov. 2014. <http://www.cnbc.com/id/102031870>.

The New Prosperity Gold-Copper Project has encountered yet another setback in its struggle to obtain the political and societal approval to continue with the proposed mining project. After seeing proposals rejected by federal panels on two separate occasions, said panels “cit[ing] damages to fish and fish habitats” (Pynn), Taseko has collided with the Tsilhqot’in First Nations tribe, a people group desperately struggling to maintain the sanctity of their land, and by extension, the sanctity of their culture. As Ian Gill outlines throughout “To the Tsilhqot’in with Gloves,” the First Nations in Canada have routinely been subjected to various forms of injustice, noting that “by [his] reckoning, not a single deal that governments and industries have done with Aboriginal people in the entire history of this province has been lawful.” It is from this context, from a perspective shaped by a history that suffers from deceit, discrimination, and injustice, that the First Nations are fighting the Gold-Copper Mine, and it is from said perspective that they will continue to contest any perceived threat to their land and culture.

For a brief moment, both of the invested stakeholders, Taseko and the Tsilhqot’in, seemed to be satisfied. The Tsilhqot’in tribe had witnessed a historic, “landmark Supreme Court of Canada ruling, [which] found that the Tsilhqot’in people have title to 1,750 square kilometres of land west of Williams Lake” (Pynn). At the same time, the proposed site for the New Prosperity Gold-Copper Project rested outside the boundaries of the recently affirmed title area. However, Tsilhqot’in plan to declare the site to be within a newly formed tribal park, a park which would prohibit large-scale industrial mining within its boundaries. Without question, this a massive setback to Taseko, incorporating aspects of both political and socio-cultural external threats. At this point it should be considered a given that the mining site should not be within the 1,750 square kilometres recently granted to the Tsilhqot’in – as it would infringe on both their social and legal rights – but it is within reason for Taseko to contest this designation of a tribal park, which would effectually prevent the construction and implementation of their proposed mine. There doesn’t seem to be legal affirmation of the “designation of full protection status” (Pynn) as of yet, so it is reasonable for Taesko to continue to expect to implement their proposed mine, once they ensure the environmental impact will be within legal boundaries. It will be interesting to see how the government reacts to this latest development in the struggle between Taseko and the Tsilhqot’in, a struggle representative of the ongoing clash of cultures that has provide the backdrop to the history of British Columbia.

N.d. West Coast Environmental Law. Web. 7 Oct. 2014.

N.d. Taesko Mines. Web. 7 Oct. 2014.

Pynn, Larry. “Tsilhqot’in Set to Declare Site of New Prosperity Mine a Tribal Park.” Www.vancouversun.com. Vancouver Sun, 11 Sept. 2014. Web. 07 Oct. 2014. <http://www.vancouversun.com/news/metro/Unilateral%2Bpark%2Bdeclared%2BTsilhqot%2Bincludes%2BProsperity%2Bmine/10192766/story.html>.

Constantinides, Dimitris. “Understanding Pest Analysis with Definitions and Examples.” PESTLE Analysis. N.p., 31 Dec. 2013. Web. 07 Oct. 2014. <http://pestleanalysis.com/pest-analysis/>.

“News | New Prosperity Gold-Copper Project.” New Prosperity GoldCopper Project. N.p., n.d. Web. 07 Oct. 2014. <http://newprosperityproject.ca/>.

Gill, Ian. To the Tsilhqot’in, with Gloves. The Tyee. N.p., 26 July 2014. Web. 06 Oct. 2014. <http://thetyee.ca/Opinion/2014/07/26/Tsilhqotin-With-Gloves/>.

Preceding the newly released Passport was Blackberry’s Z10, which represented RIM’s final, desperate attempt to compete directly with major smartphone producers Apple and Samsung. Featuring a similar design and operating system to Apple’s iPhone and Samsung’s Galaxy series, the Z10 failed to distinguish itself within a highly competitive marketplace, and was ultimately destine a failure. Juxtaposed against the Z10 is the Passport, Blackberry’s latest attempt to re-install itself as a major player within the smartphone market. As fellow blogger Sincere Cheong notes, “everything about the Passport is different or even strange compared to the other competitive smartphones on the market,” evidence of Blackberry’s renewed strategic focus on differentiation. Rather than catering to the typical smartphone user, the Passport represents a return to Blackberry’s roots, boasting features “customized solely for the working professional” (Cheong).

It was only a few short years ago that the Blackberry was without question the phone of choice for the business professional. In Collegehumor’s video series Start-up Guys the characters, themselves comically hyperbolized representations of businessmen, are inextricably linked to their Blackberry phones. In “Start-up Guys Go Back to School,” BBM (Blackberry Messenger) is referred to as the most important marketing term. Note the date: December, 2011. In less than three years, the Blackberry has gone from the face of the business world to relative insignificance. With the release of the Passport, Blackberry hopes to restore the company to its former glory. By focusing on implementing features designed to facilitate business-related tasks, as well as highlighting traditional strengths “security, cybersecurity, and personal identity production” (Babad), Blackberry hopes that a return to its core value proposition will turn around an otherwise floundering company.

http://blogs.ubc.ca/sincerecheong/2014/09/29/blackberry-passport-entry-into-the-competitive-market/

Start-Up Guys Go Back to School. CollegeHumor. CollegeHumor, Dec. 2011. Web. 4 Oct. 2014.

Without a doubt, the last couple of decades have seen the music industry revolutionized; innovation, accompanied by entrepreneurship, has shaped a fluid, dynamic, industry, as opposed to the static one that preceded it. Technological changes stemmi ng from the rise of the internet have transformed the distribution process of music, and further, the entire consumption experience has evolved. As outlined in Owsinski’s article, the “big three” record labels, Sony Music Entertainment, Warner Music Group, and Universal Music Group, have collectively failed to adapt to the shifting landscape of the industry, and consequently, said firms are at present seeing their profits and market share diminish.

“For too long the business world has been obsessed with the notion of building a sustainable competitive advantage.” Rita Gunther McGrath contends that in today’s business world, the notion of a sustainable competitive advantage needs to be discarded, replaced by the idea of a transient advantage. Owsinski notes that the major labels felt they held a sustainable competitive advantage, seemingly evidenced by the fact that “they were collecting the most revenue in their history.” However, rather than “reconfiguring” (McGrath), and preparing to exploit the rising popularity of mp3 files, and digitized music as whole, the big three continued to focus on the operational effectiveness of the production and distribution of CDs. The major labels were eventually forced to appear hat in hand before Steve Jobs and buy into iTunes, losing out on revenue shares and giving up control of distribution.

Have the three majors learned their lesson? It would appear so, but only gradually. As the industry shifts towards streaming services, which is supported by the popularity of the smartphone and cellular data, Warner, Sony, and Universal have made their presence known. While late to the party, the big three have expanded their presence on YouTube through “Vevo,” showcasing their artists’ music videos. As well, the labels possess a large ownership stake in Spotify, which is likely headed towards an enormous IPO. At present, the industry seems to be heading towards a “pay-what-you-want”, currently championed by BitTorrent. It remains to be seen how quickly the major labels will identify the trend and reconfigure accordingly.

Mcgrath, Rita Gunther. “Continuous Reconfiguration in the Transient Advantage Economy.” Strategy & Leadership 41.5 (2013): 17-22. Web.

Owsinski, Bobby. “How The Music Industry Created Its Own Worst Nightmares.” Forbes. Forbes Magazine, 7 Aug. 2014. Web. 1 Oct. 2014. http://www.forbes.com/sites/bobbyowsinski/2014/08/07/how-the-music-industry-created-its-own-worst-nightmares/

“The State of the Music Industry – The Oatmeal.” The State of the Music Industry – The Oatmeal. N.p., n.d. Web. 03 Oct. 2014. http://theoatmeal.com/comics/music_industry

Digital image. Wired. 

While Vince Gilligan’s ground-breaking drama Breaking Bad explores a variety of societal themes, including moral consequences and the role of family, it also illustrates several foundational business principles that apply regardless of industry.

The success of Walter White’s empire hinges on his ability to produce a consistently superior – 99.1% pure – product, yielding a competitive advantage over his rivals. The quality of his product substantially increases market demand, while the purity allows him to minimize waste, decreasing costs and hence increasing margins. In addition, he is “able to differentiate his [brand] in the marketplace;” (Gurnett) his product easily identifiable by the trademark blue colour. To distribute his product, Mr. White enters into several business partnerships, utilizing his partners’ established supply networks as channels to facilitate the sale of his products. Well positioned for success, Walter’s “company” encounters exponential growth.

However, as Walt experiences growing success, he allows the flaws within his character, chiefly his hubris, to negatively influence his business decisions and relationships. The vengeful ambition – borne of a missed opportunity – that fueled his success, eventually initiates his demise. As was the case with Enron, as well as countless others, Walt’s moral decline began with small ethical violations, before culminating in serious crimes, in his case the murder of several inmates and the betrayal of his partner. Again paralleling the Enron scandal, Walter’s pride induces a belief in his own invincibility (Schumpeter); that his actions will bear no consequences. While his character is eventually redeemed, he cannot escape the consequences of his past, and he pays the ultimate price for his transgressions.

Schumpeter. “The “Breaking Bad” School.” The Economist. The Economist Newspaper, 28 Sept. 2013. Web. 19 Sept. 2014. <http://www.economist.com/news/business/21586801-best-show-television-also-first-rate-primer-business-breaking-bad-school>

Gurnett, Kelly. “5 Career Lessons From ‘Breaking Bad'” Business Insider. Business Insider, Inc, 22 Sept. 2013. Web. 19 Sept. 2014. <http://www.businessinsider.com/career-lessons-from-breaking-bad-2013-9>

Cuffin, Eddie. “The 10 Lessons ‘Breaking Bad’ Taught Us About Running A Business.” Elite Daily. N.p., 30 Sept. 2013. Web. 19 Sept. 2014. <http://elitedaily.com/money/entrepreneurship/the-10-business-lessons-we-learned-from-breaking-bad/>