Management consultant Peter Drucker says that there are three things a company should ask themselves every day. The first is what is our business? The second is who is our customer? And the third, is what does our customer value? It is for these reasons that a blog on HBR written by Karan Girotra and Serguei Netessine is titled “Amazon Constantly Audits its Business Model.” At the outset their model was “sell all, carry few” providing to an online shopper with appreciation for the large selection. As the times changed other retailers were able to offer the same and they adjusted once again. This was a defining moment because as a company it showed that they were not only observing what their business was but willing to act upon it. Through being aware that a business model can become outdated Amazon has stayed ahead in the game and is able to address who their customer is as well as what they value. Today, that is same day delivery but regardless of what tomorrow’s demands will be, Amazon’s track record proves that they will meet the needs of the customer and be asking themselves the right questions.

Harvard Business Review Blog, November 15, 2013

In corporate America treating both employees and consumers with respect is often something that is lacking, what could be called a ‘dual strategy’. Where the Walmart’s are choosing to pay close to minimum wage, have narrow aisles and fewer workers but are able to provide more goods at cheaper costs. Target is of a juxtaposed philosophy in which wider aisles and better service (still with relatively low wages) will offset the higher cost of the product for which the customer is purchasing increasing its appeal. So who really has it right? The answer to that can be found in Bloomberg Businessweek under an article by Brad Stone titled “Costco CEO Craig Jelinek Leads the Cheapest, Happiest Company in the World.” With an average wage of $20.93, the employees are positively thrilled but what about the customers? Some may dispute that people don’t want to pay the yearly-fee of $55 just to shop, but the truth is it is this that keeps them coming back. It creates a loyalty to the company while creating switching costs placed on the consumer and with more than a 90% return rate it is proven to work. Here, both customer and employee alike are satisfied.

Bloomberg Business Week, June 6, 2013

I agree with Leona Lau’s Blog about commenting on Ikea’s new strategy to reduce their carbon footprint and to be ‘energy independent on a global scale by the year 2020.’ It is a very good strategy at a time like this, where being ‘green’ is not only an increasing trend as well as it being economically efficient in the long run. Being environmentally friendly is also desired as a company because it adds a point of difference that many people want while deciding where to shop. Ikea will stand out from the competition in a positive way that will increase sales. It will also have a slight first to market advantage for furniture companies ‘going green.’Though other furniture companies have already  gone green, Ikea has the advantage in the fact that it is a highly publicized matter.

jasoncion‘s blog post about the legalization of marijuana, in theory is correct about the benefits Canada and specifically B.C would have if cannabis was legalized, but in reality, the negative effects would out weigh the benefits. In the CNN broadcast by Dr. Sanjay, he expresses how in medical use cannabis is harmless, and effective. Another drug that is useful in medication is methamphetamine, used commonly in medications that treat an array of disorders, including but not limited to depression, alcoholism, narcolepsy and attention deficit hyperactivity disorder. Used recreation-ally  it is one of the most harmful drugs.

With young people having access to marijuana while it is still illegal, the chances of young people acquiring it will be far greater once it is legalized. The argument that cannabis is a ‘gateway drug,’ has neither been proven or dis proven, still caution should be taken with impressionable people, specifically with a family history of mental disorders.

There is still uncertainty around this drug, the only way we will find out is through trial and error, but error could go terribly wrong. Are we willing to give up human lives in order to gain economic profit?

http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/ecuador-high-court-upholds-chevron-pollution-verdict-halves-fine/article15427677/

The Globe and Mail, November 13, 2013

It is stories like these that make big corporations look bad. It is evident that you cannot always believe what is in the news, because you don’t get the whole story and the bits and pieces you do get are potentially biased. Important to note is the fact that the rainforest is one of the most essential biomes in the world, as well as the most rapidly shrinking biome. Most of our modern day medication and cures have been discovered in the rainforest, and we haven’t even begun to skim the surface. The rainforest is the second biggest carbon sink in the world, without it, global warming will increase at an even faster rate. From a business standpoint, Chevron moving operations to South America makes sense, because there labor is cheaper and they do not have as strict of laws as they do in the U.S. This prompts the moral question of what is right? There is a difference between what is legal and what is right. While taking a geography course, it became apparent that in order to change something, people and companies who are harming the environment must be fined, so much that it hurts, and in the future, they will think twice. Social responsibility is the key to making change happen, through awareness, large corporations can be part of this change. Companies, such as Chevron, have the responsibility to make decisions not based solely on what is legal, but what is right.

http://www.theglobeandmail.com/report-on-business/the-fireplace-the-chicken-and-the-airplane-westjets-new-approach/article15401933/

The Globe and Mail, November 12, 2013

Westjet Channel Promo video

The already infamous company, known for their flashmobs, entertaining employees and great customer satisfaction, has recently implemented a new tactic. Teamed with Rogers, they are bringing you an on flight experience, in your own living room.

In theory, not only will this tactic be a point of difference it will also increase the already positive brand image customers have with Westjet. The partnership with one of Canada’s largest cable networks will be of great benefit to them because having a strong partner in the television business will not only be a benefit because of the ‘2.16 million Rogers cable subscribers,’ as well as the profits in their ‘Tweet the Beach.’

How to determine whether or not this will be successful can be done, whether they will be more successful, is unlikely. The people already subscribed to the cable network may watch this channel, rarely, but it could happen and the people who are not subscribed to Rogers are not likely to change just for that channel. It may increase Westjet’s customers minimally if at all. Most people chose a flight based on the price, if the prices are the same, then it will be chosen based on the company.

This idea is a good idea in theory, whether it brings in an abundance of profit, is doubtful.

http://www.economist.com/news/business/21586590-french-firm-seeks-new-roads-profit-electric-cars-plugging-away

Economist, September 21, 2013

With Bollore making up 50% of the European Market for electric cars, it made sense to have a Key Partner like Renault. With big threats on to the market on the way such as Volkswagen and BMW, if Bollore didn’t team up with someone, they could have been easily weeded out by the big car brands. This proves that even though you make up the majority of the market, it does not mean that is a stable position, especially for such a small company. There point of difference is their lithium-metal-polymer batteries, which they believe is better than the other batteries.

With the small market of electric cars and the encroaching of bigger brands, small companies, like Bollore, have a survived by having Key Partners that could increase their production and help them advertise their points of difference.

New York Time October 7, 2013

Brand Positioning is where a company is ranked in their market. Boeing recently lost a large part of their market to one of their very close competitors, Airbus. This situation for Japan Airlines choosing Airbus now instead of Boeing is proof that a leader in the market can be passed. The Brand Position theory states that the leaders of a market have the best advantage. Boeing had been having troubles with some of their models and during this time Airbus swooped in and effectively proved their points of difference.

Japan Airlines decided to go with Airbus because of their points of difference during a time where Boeing was having difficulties with their models. This proves that leaders in the market can be passed.

http://www.theglobeandmail.com/report-on-business/as-blackberry-struggles-it-sets-a-date-for-its-latest-device-in-canada/article14676924/

Globe and Mail, October 3, 2013

With BlackBerry losing revenue, an unhelpful blow in their operations is that Rogers wont be selling their latest model. Operations is the producing and delivery of goods and services to the customer, one of the most important steps is getting the product to the consumer, which is what Rogers does for BlackBerry. With their longstanding relationship, this move by Rogers could have serious effects for BlackBerry. One of the negative effects could be customer confidence, consumers might believe that since one of BlackBerry’s partners wont even sell the new model, it is not good enough for them. As well, not many people will be willing to switch cell phone providers just for the new model.The fact that Rogers’ decision will have negative effects on BlackBerry goes to prove that all the branches of Operations affect each other and this should be taken into serious account when making decisions.

http://www.nytimes.com/2013/09/11/technology/court-says-privacy-case-can-proceed-vs-google.html?ref=todayspaper

The most used search engine in the world, Google, is in court for illegal wiretapping.The ethics, or rather, lack of ethics surrounding this event is evident, violating our rights by infringing on federal wiretapping laws. The claim that a ‘rogue engineer’ was to blame did not succeed in shifting the blame completely onto another, it is believed that the fines given to Google ‘in theory, would be large enough that even Google would notice,’ hopefully showing them that they cannot continue doing this. This event will seriously damage their reputation, despite the fact that it was done by a ‘rogue engineer,’ because we still do not know what Google or the rogue agent were planning to do with all the information they gathered or if Google is still in possession of it. Knowing this people might think twice in investing in them.

The fact that this happened to a well known and highly regarded company known for their employee satisfaction is to bad, but in business this is something that happens and needs to be dealt with.

Google has handled this situation well and has done what they could, but in the end a company needs to pay the price for unethical behavior.