Category Archives: COMM 101

Business is going well, eh?

by

0

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?

by

0

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?

by

0

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

by

0

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

by

0

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/

Retirement

by

0

USA : The circumstances for retirees are changing – a significant number of companies have ended their health benefits for their retirees and/or have increased their premiums. Retirees’, whether from recently times or decades ago, find that their positions are no longer secure. Since 1997, there has been a decrease of more than 10% in the number of employees are offered retiree health benefits, showing a continued downwards trend.

That said, there are ways to deal with the situation. Unexpected events happen, and, to a point, we have to be ready for them. Retirees are encouraged to look into Medicare (if eligible), the Affordable Care Act, and/or private insurance plans. Preparations and back-up plans are highly recommend as preparation as there is no solution after this occurs. In other words, it’s time to ‘plan for the unexpected’. Many retirees who haven’t planned sufficiently have found that selling unused valuables around the house is an feasible option, though it is mainly used as a last resort.

Overall, retirees find themselves mad at their former employers – they have worked many years, decades even, only to ‘have the rug pulled out’ from under their feet, especially when the companies are not having any financial difficulties.

Source: http://peaknewsroom.blogspot.ca/2013/10/companies-end-health-benefits-for.html

Twitter’s Potential

by

0

According to a brokerage firm, Twitter Inc’s share price has to potential to nearly double within its first year as a listed company. In fact, this brokerage has issued a “buy” rating for the company before the service is even public. Analyst Robert Peck believes that the stock will float at around $30 per share, possibly reaching $50 in as little as a year. Peck puts Twitter as the dominant player in the “real time interest graph” which gives them an advantage over others.

Twitter has had a highly successful history, receiving a large amount of its revenue from advertising since 2010, when they started selling it. It broadened its horizons with the acquisition of MoPub and Amplify, and has room for even more expansion, perhaps with the introduction of a product like Google’s AdWords. There are many other areas Twitter could make use of to increase revenue, such are e-commerce and mobile apps.

Analysts have already begun thinking of Twitter as Facebook’s rival. While they are very much alike, twitter has some components that are reminiscent of other social networking services and twitter is a “real-time engagement” platform because of its “faster-paced, real-time conversations”. While Twitter is growing quickly, it is true that currently Facebook, in terms of revenue, users, and revenue per employee is notably higher than that of Twitter. However, the fact that Twitter provides “a live broadcast of news, updates, opinions and other conversations accessed conveniently from a mobile app or desktop websites largely unmatched in immediacy and scale by Facebook or Google” makes them a strong threat.

Sources:

http://www.marketwatch.com/story/twitter-v-facebook-rivalry-in-focus-as-ipo-looms-2013-10-07

http://www.bnn.ca/News/2013/10/7/Twitter-gets-buy-rating-even-before-listing.aspx

 

BlackBerry being sold? Perhaps there is hope.

by

0

Shares for BlackBerry Ltd. rose on Monday in both Canada and the United States, after rumors of possible interest from ‘strategic buyers’ accompanying an upgrade on their stock from “underperform” to “neutral” (by Kevin Smithen).

Reportedly, the company is talking with Cisco Systems, Google Inc., and SAP about selling parts or all of itself and is, in addition, looking to see if other prospective buyers would be interested. At this point it is undecided whether or not any companies will make a bid but it has been said that many are interested in BlackBerry’s intellectual property.

One analyst, Peter Misek, believes that BlackBerry might be sold in three segments: its operating system and handsets, its messenger platform, and its core enterprise business.

This news follows closely behind other reports of BlackBerry’s failures and its probability of being sold, enhancing it. As discussed in class, BlackBerry has made many mistakes, including not taking advantage of their assets and opportunities. A massive company, which, only just a few years ago may have been associated by the public with the likes of Apple, is now on its last legs. The fall of this empire has been a good lesson to many others, but for BlackBerry, their best option may very well be to sell their business. But how they will go about doing so will be interesting to watch, as there are many options available to them.

Source: http://www.bnn.ca/News/2013/10/7/Cisco-Google-SAP-discussing-BlackBerry-bids-Report.aspx

Resale across borders: Pirate Joe’s

by

0

Judge Marsha Pechman recently dismissed a lawsuit filed by the U.S. shop Trader Joe’s against a Canadian imposter, Pirate Joe’s. Pirate Joe’s is a store based in Kitsilano, Vancouver which resells products from Trader Joe’s shops across the border.

The ruling stated that “all alleged infringement takes place in Canada and Trader Joe’s cannot show economic harm,” and “even if Canadian consumers are confused and believe they are shopping at Trader Joe’s or an approved affiliate when shopping at Pirate Joe’s, there is no economic harm to Trader Joe’s because the products were purchased at Trader Joe’s at retail price.”

Trader Joe’s argued that Pirate Joe’s was not authorized to resell their goods and that fake advertising were compromising their brand.

It was noted, however, that Trader Joe’s products couldn’t be purchased on their website and they don’t have any stores in Canada.

While it is true that, if not handled correctly, Pirate Joe’s advertising may affect Trader Joe’s brand and public image, it is also true that, by buying from Trader Joe’s at retail price, Trader Joe’s is not harming them economically. In fact, they may very well be increasing Trader Joe’s sales. Pirate Joe’s spend money and time to bring Trader Joe’s products to Canada so people do not have to travel to get them themselves, helping many in the community. By making Trader Joe’s products accessible, it is likely that more people would be interested in them, making sales increase further. In fact, when you look at it from another perspective, having a shop like Pirate Joe’s is not much different than having the number of customers Pirate Joe’s tailors to and more customers are always accepted. Therefore, the dismissal of the lawsuit is justified and Trader Joe’s should not have so many complaints about it.

Source: http://www.vancouversun.com/business/judge+dismisses+case+against+Vancouver+Pirate/8997334/story.html

Business Ethics: Corruption and Bribery within Multinational Companies

by

0

Many multinational companies have found themselves caught off guard by the implementation of harsher laws against corruption in ‘high-risk’ countries, stricter enforcement of said laws, and extensive anti-bribery laws in large countries like the US. Over a third of companies, a significant amount, fail to include clauses prohibiting such behavior (on behalf of the firm) in their contracts. A shocking 91% of companies “admitted to having no specialized anti-corruption training for staff in high-risk areas”.

From a purely economic standpoint, such actions may prove to be profitable. However, bribery is enormously unethical. So what is ethics? Or rather, what are business ethics? In essence, ethics has to do with being critical but maintaining structure. Ethics is having an opinion, of making judgments on moral beliefs. But it is not only that; ethics also has to do with justification. Rationalization of one’s opinions is equally important. Business ethics is the application of this principal in the field of commerce – the rationalization of a firm’s action or opinion from an ethical standpoint.

Now, on to bribery. Why is bribery wrong? Bribery is the deliberate act of offering payment to someone who has an official responsibility with the intent to dissuade them from said responsibility. This act of peddling influence is morally unacceptable. The person being bribed is also in the wrong by agreeing to a deal that she/he is not morally allowed to take, thereby breaching a previous obligation.

Sources:

http://www.telegraph.co.uk/finance/globalbusiness/10294957/Companies-apathetic-about-corruption-risks.html

http://businessethicsblog.com/2010/03/21/ethics-definition/

http://legal-dictionary.thefreedictionary.com/Bribery