Monthly Archives: November 2013

Business is going well, eh?

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Yesterday, a TV station based in Oklahoma (Griffin Communications) gave every employee $500 cash in appreciation. The only reason given for this was that the company is doing very well and wanted to reward their employees for their work. This action was confirmed by the VP of marketing.

There are similarities between this case and the way Zappos runs their business (as discussed in class). Zappos is unlike most other companies in that they focus on customer service as well as keeping their employees dedicated and happy. Happy employees have more motivation and can do more work. The atmosphere in their offices is light, and they have multiple events for the employees, boosting morale. Which, essentially, is what this “gift” from Griffin Communications is accomplishing. By rewarding their employees for good work, they are motivating them to keep it up as well as showing that the employees will be treated fairly. So while it can be said that they’re nice for doing such a thing, it is also true that there is another reason behind it.

Sources:

http://ca.news.yahoo.com/blogs/good-news/oklahoma-tv-station-owner-hands-500-employee-because-175938889.html

http://www.newyorker.com/reporting/2009/09/14/090914fa_fact_jacobs

Clearly Contacts and…Shoes?

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Sean Clark is partnering with his former employer, the CEO of Coastal Contacts Inc. (which runs ClearlyContacts.ca) to build up an online shoe-selling business (ShoeMe.ca). The CEO invested in Clark’s business which wishes to ‘disrupt the shoe market in a similar fashion’ to what ClearlyContacts.ca has accomplished.

He noted that in Canada there were no major online shoe suppliers and saw an opportunity. With the investment he was given, ShoeMe.ca has grown to include 130 brands. A crucial part of Mr. Clark’s venture was having good relations with his former employer. He had formerly demonstrated great commitment to Coastal Contacts and the executives were supportive of his entrepreneurial project.

Mr. Clark, though ShoeMe.ca has met rough patches, continues on undeterred and dedicated to the domestic market, something rarely, if ever, seen from his competitors. Together, Mr. Clark and his former employer see opportunities for expansion into other areas via partnerships and sister sites.

Source: http://m.theglobeandmail.com/report-on-business/small-business/sb-managing/leadership/former-employer-invests-in-departed-employees-new-business/article15419749/?service=mobile

Facebook – Has their reign truly come to an end?

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Recently, Facebook shares have suffered and the social media site’s popularity is beginning to decrease, with users moving to newer medias like such as Twitter. There has been an increase of negative views, and people are starting to lose interest/hope in it.

A short time ago, Facebook offered to buy Snapchat (the photo app) for $3 billion. However, this request was declined. There are suspicions that Facebook is losing users and these users are moving instead to Snapchat.

As more and more substitutes are introduced, the advantages of Facebook decrease. It is no longer innovative nor does it have many distinguishing features when compared to the plethora of social media sites and apps quickly becoming available.

Despite all these troubles, it looks as if Facebook is slowly regaining its footing. There are many who are still optimistic about its future growth and continue to invest in stocks. Furthermore, it is positive that (youth) engagement appears to be stable – Facebook still have a enormous active user base.

References/Sources:

https://blogs.ubc.ca/yanrong/2013/11/14/facebook-is-experiencing-the-stage-of-plumment/

http://moneymorning.com/2013/10/31/investing-in-facebook-nasdaq-fb-stock-after-q3-earnings/

http://moneymorning.com/2013/09/25/why-the-facebook-stock-price-has-doubled-in-two-months/

From Coffee to Tea

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There has been an increasing trend in Canada for tea, which is leading to a growing market in the industry. Take Starbucks as an example. Last year, they used over $600 million to gain 300 Teavana stores, 59 of which were located in Canada. More recently, Starbucks opened its first Teavana tea bar, located in New York City. This occurred just a couple of weeks ago. There are plans for a large expansion on this venture as Starbucks enters the specialty tea business.

And yes, they have just reasons for doing so. There is an increasing demand for the ancient beverage – it was predicted in 2003 that there would be a 40% increase by 2020. Tea’s popularity is growing, and as it does, more people will be made aware of their personal preferences and the complexity that can be involved with such a supposedly simple and straightforward drink.

For businesses like Davids Tea, this is a good thing. But for others? For those that have been firmly entrenched in the world of coffee? Well, I guess only time will tell.

Source: http://www.cbc.ca/thecurrent/episode/2013/11/12/from-starbucks-to-davidstea-why-big-business-is-betting-on-tea/

Business Women

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As a historically patriarchal society, women have had a past of being seen as not as competent as men, at least in fields like science and business. There was this notion that they were more suited to being housewives than anything else. True, in modern times this is not the case. Women are becoming distinguished members of many different communities and are properly acknowledged for their work. This trend for sexual equality is reflected in the business world.

High-positions within a firm are now being held by women increasingly frequently. As noted in the blog post referenced, this means that these important jobs will be available to a larger group of people. This fact could very well change/influence a company’s strategies/value propositions as there will be more people to offer their different points of view and ideas. New, unexplored areas might be found and there will be people with varying skill sets from a greater number of backgrounds. In essence, this trend will result in greater diversity, both physical and mental.

Reference: https://blogs.ubc.ca/lauleona/2013/10/08/blog-post-4-the-rise-of-females-in-the-directors-chairs/