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