Niraj Dawar from the Harvard Business Review suggests an important point that innovation of new features must match with the company’s brand. Whenever a large organization like Volkswagen A.G. invents new products, it must allocate its innovations to the appropriate brand. For example, models with better fuel efficiency should be introduced by its Volkswagen and Skoda brands, while Volvo should carry cars with better safety systems because it has a better market credibility.

Dawar states that trustworthy brands accomplish three key aspects to properly match its innovation with its brand. Firstly, they lessen the customers’ risk of testing new products. Secondly, they accurately position the innovation to establish a clear purpose. Finally, brands give the new product credibility. For example, MP3 players did not become successful in the technological market until Apple introduced the iPod. A firm like Huawei could develop a similar product as Apple, but will not get as much attention because it is not trusted as a brand that is known for its innovation.

Research and development is not the only factor in creating a successful innovation; the brand reputation is equally as crucial. This portrays how a good brand image is very powerful and significant in introducing an innovation.

Works Cited
Harvard Business Review – http://blogs.hbr.org/2013/11/make-sure-new-features-match-your-brand/

After stumbling upon Alice Wo’s blog on the outsourcing of the human resources department, I would argue that the human resources department is not a vital function in every organization. Although human resources may be a significant aspect of a company, it is not entirely a bad idea to outsource because the benefits will depend on the organization and some organizations are better off by following this modular organization structure of outsourcing.

Air Canada, for example, has approximately 27,000 employees. By outsourcing its human resources department, it can devote managerial talents to most critical activities. As well, the company will be able to increase its focus on customers and markets. As Air Canada is a large organization, it will have a rigid vertical hierarchy structure. This translates to independent departments and highly standardized jobs. Therefore, outsourcing its human resources does not greatly influence the overall functions of operations.

A reason for concern in outsourcing is that it negatively affects the organizational culture. However, I would reason that organizational culture is not centralized at its human resources department. Organizational culture is established by its top management and practiced through developed norms and rituals. Outsourcing will be beneficial for certain large organizations to allow for an efficient way to achieve corporate goals.

Works Cited
Alice Wo’s Blog – https://blogs.ubc.ca/alicexwo/2013/11/05/fighting-the-death-of-human-resources/
Air Canada – http://www.aircanada.com/en/about/acfamily/

Interestingly enough, I have been following up on HP’s abundant problems and coincidentally Vivek Thakkar has blogged about its layoffs. Despite HP’s accumulated layoffs of approximately 29,000 employees, Meg Whitman, the CEO, plans to lay off an additional 27,000 employees by 2014. It raises the concern that if HP is not committed to its employees, it is difficult for their employees to be committed to HP. This reflects HP’s hardship to compete against other technological firms. Not only does layoffs create fear in the employees, the recently-fired CEOS, Carly Fiorina and Mark Hurd, abused their power as well.

Carly and Mark have imposed their coercive power to constantly be cost conscious and thus, negatively impacting employees’ ability to perform at their highest. The past CEOs have destroyed the organizational culture that was once established by Bill and Dave, the founders of HP. Known as the “HP Way,” one of the values emphasize trust and respect for individuals. Trust cannot be achieved through layoffs and abuse of power. To solve HP’s problems, it must try to re-create their organizational culture that embodies a positive environment where employees are comfortable to work together as a team to achieve a common objective.

Works Cited
Vivek Thakkar’s blog – https://blogs.ubc.ca/vivekthakkar/2013/11/12/will-hewlett-packards-employees-ever-feel-safe/
Fortune – http://tech.fortune.cnn.com/2012/05/08/500-hp-apotheker/

TOMS has grown to be widely known as one of the pioneers in corporate social responsibility. Now, using its popular brand recognition, the organization is creating an online store called “TOMS marketplace” that will aid other businesses that value social responsibility. It comprises of over 200 products from 30 companies. The decision for choosing companies is based on whether their mission to truly improve people’s lives is heavily integrated into the business structure. TOMS has done more than marketing other products online; it has bought the inventory at wholesale. Being one of the leaders in corporate social responsibility, the TOMS marketplace provides an opportunity for social entrepreneurs to gain exposure to a larger consumer base who is interested in purchasing items with a social purpose.

TOMS demonstrate a sustainable approach to its business model through creating shared value and a triple bottom line. Consumers value responsibility-made and ethical products. TOMS provides environment-friendly shoes and now, a wide range of products in its marketplace from notebooks to bags. The company has developed a competitive advantage through its corporate social responsibility. Consumers prefer to purchase from TOMS because of its core values.

Works Cited
Globe and Mail – http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/sustainability/toms-launches-hub-for-socially-conscious-goods/article15261786/
Image – http://uqllu.com/wp-content/uploads/2013/06/toms-logo.jpg

Bell is ready to launch its management information system on November 16. The telecommunications company announces that they are collecting information to deliver relevant ads to their consumers and also claim that this information system will “improve service and heighten protection against fraud.” The type of information that Bell will collect include internet activity (web pages visited and search entries), usage of apps, television habits, and calling patterns. In addition, Bell will also assemble information of one’s account such as device used, language option, postal codes, payment method, and demographics.

With all of this information, Bell must be careful to implement an efficient strategy in interpreting the data. Data integration is a common problem among companies that use information systems because they discover that it is difficult to analyze all of the data appropriately. Information could potentially be a powerful tool in improving an organization’s business; however, it is useless without proper management of information. Communication between managers and the information systems department is important in this process.

Bell’s announcement grew concerns with consumers and their privacy. The Office of the Privacy Commissioner of Canada will further investigate on their concerns. Fortunately, Bell offers an opt-out option.

Works Cited
Globe and Mail – http://www.theglobeandmail.com/report-on-business/industry-news/marketing/bell-customer-phone-and-internet-data-will-be-used-to-target-ads/article14984876/
Image 1 – http://www.oktelephone.com/Portals/152906/images/bell%20logo.jpg
Image 2 – http://www.uhasselt.be/images/faculteiten/bew/mis.jpeg

Reports by the Clarkson Centre at the University of Toronto have discovered that family-owned firms achieve more than others in terms of shares. The research was based in Canada and conducted by analyzing 15 years of performance data of Canadian firms in the Toronto Stock Exchange. The study reveals that firms like Rogers Communication Inc. averaged an annual growth rate of 7.7% as opposed to 6.1% from other firms. The researchers suggest that the family firms have a longer time horizon, so therefore their focus on long-term goals may be a factor for success. I would suggest another reason for their success is the organizational culture.

The culture is founded by the family and their values and beliefs define the organization. In a family-oriented culture, it is usually a positive environment where employees work efficiently in a team and motivated to perform well. Everyone in the family firm is unified to achieve a common objective. It is very effective to have a strong organization culture because the business can be sustained in the long run. Therefore, many investors have confidence in these family firms to be able to continue their success for the future.

Works Cited
Globe and Mail – http://www.theglobeandmail.com/report-on-business/small-business/sb-managing/succession-planning/investors-fair-better-in-the-fold—family-owned-firms-outperform-others-study/article12738084/
Image – http://cdn.business2community.com/wp-content/uploads/2012/12/Corporate-Communications-Success1-300×225.png

Disney has been a popular international brand and a successful company. However, its Hong Kong Disneyland attracted only 4 million visitors in its second year, compared to its rival Ocean Park that attracted 7.4 million. Hong Kong Disneyland earned its first profit in the last fiscal year of $14 million – a miniscule amount compared to Disney’s $1.9 billion profit overall. Why has not Disneyland attract more customers in the largest populated country, China, than the United States?

Perhaps the main reason is cultural and background differences. The children in China have not been exposed to Mickey Mouse and other fairy tale characters as much as the Americans. The differences of western and eastern values have negatively impacted the interest of the Chinese to visit Disneyland. It is evident that culture has a significant influence on businesses.

After recognizing the success of Ironman 3 in Chinese box offices, Disney plans to create an Ironman-themed thrill ride. This project will be finished by late 2016 as the company expects this new attraction will lure in more visitors. As well, Disney hopes that the opening of a Shanghai resort will complement Hong Kong Disnleyland.

Works Cited
NY Times – http://www.nytimes.com/2013/10/08/business/international/to-lift-hong-kong-park-disney-deploys-iron-man.html?pagewanted=1&_r=0&ref=business
Image – http://graphics8.nytimes.com/images/2013/10/08/business/Disneyjp/Disneyjp-popup.jpg

Twitter’s growth strategy has proven successful as it plans to hear its initial public offering (IPO) level. Since Twitter’s launch in 2006, its community has expanded to 215 million active users on a monthly basis. Its revenue hit $253.6 million through the first half of 2013. From 2011 to 2012, its revenue has tripled and compared to the first half of 2012, the same period in 2013 is double the sales. Twitter’s user base has grown 78% from 2011 to 2012 and 44% in the past year. Despite its decline, only 10% of the 2.4 billion Internet users operate a Twitter account, so there is a growth opportunity. Twitter has become more than just a means of social interaction between friends, but evolved into the center of breaking news stories. As well, Twitter’s potential for online advertising enhances its enormous value.

The business model canvas is extremely helpful in organizing a company’s business. It can provide a snapshot of the company or a development of a future plan. Clearly, Twitter has implemented a well-thought growth strategy as it covered aspects from value proposition to revenue streams. The company is still on the upward ascent to enormous fortunes.

Works Cited
Globe and Mail – http://www.theglobeandmail.com/globe-investor/investment-ideas/strategy-lab/growth-investing/why-140-characters-may-be-worth-15-billion/article14712463/
Image #1 (Tweet keyboard) – http://cdn2.business2community.com/wp-content/uploads/2013/02/twit.jpg
Image #2 (Business Model Canvas) – http://foresightcards.files.wordpress.com/2012/05/business-model-canvas.jpg

Ever since Blackberry’s unsuccessful Playbook, the tech company’s stock has gradually fell. After its announcement that it has almost one billion dollars’ worth of unsold phone inventory and that the company will lay off 40% of its workers, its stocks plummeted more. Blackberry has been behind the world of smartphones and tablets as Samsung and Apple made significant advancements in their technology, such as the introduction of the touchscreen. One of Blackberry’s shortcomings is their inability to adapt to future trends.

The SWOT analysis can provide an overview of a company’s internal factors (strengths and weaknesses) and its external factors (opportunities and threats). It is useful for analyzing ways of improvements within business and helps study the market. Blackberry overlooked its threats – competition from Apple and Samsung – who have developed many substitute products as well as the opportunity of a change of consumer preferences towards the touchscreen.

Perhaps Blackberry’s only hope is to take the company private. As of now, the leading candidate is Prem Watsa from Fairfax Financial Holdings – an offer of $4.7 billion ($9 per share). However, Blackberry is ready to entertain offers from potential bidders such as IBM and Microsoft.

Works Cited
The economist – http://www.economist.com/blogs/schumpeter/2013/09/blackberry
Image #1 (Phone comparison) – http://img.digitaltrends.com/image/galbbios-620×480.jpg
Image #2 (SWOT) – http://cowanglobal.files.wordpress.com/2011/07/swot_img2.gif

Though business ethics are guided by the law, some companies choose to bend the law in their favour. By definition, business ethics are referred to as the study of accepted business practices and decision-making. It usually involves controversial issues such as bribery, discrimination, or social responsibility. Businesses must aim to operate within the framework of ethics to gain trust from the public eye as a legitimate corporation. Perhaps the most scandalous act of business ethics in recent years was the Enron situation. Enron was once known as America’s seventh largest company. Through its immense success of trading energy, the entrepreneurs of Enron believed it can trade anything from newsprint to insurance risk. Many of these projects failed, but the company covered the debt through several partnerships, specifically with banks. Enron claimed to use bank loans as imaginary revenue. This puzzled the banks and accountants at Arthur Andersen. Enron violated its social responsibility of honesty to the public about its numbers and stole the trust of many alliances. Instead of admitting failure, they chose to handle the situation in an unethical manner by concealing the losses. Ultimately, unethical business behavior leads to collapse.

More about Enron can be found here: http://www.economist.com/node/940091.