In class 19(People, Culture, and Teams) we learned the sigficance of organizational culture and human resource management by identifying Zappo’s business success. Therefore, I decide to analyze the CEO, Tony Hsieh’s objective and evaluate whether preserving the customer-led culture and enforcing incentive compensation are beneficial to the company.

As stated in Hsieh’s article, Zappos decided to relocate from San Francisco to Las Vegas to provide better call centre service. In Las Vegas, which is an all-night city, finding employees for overnight shifts is not a difficult task. In addition, because the city’s economy focuses predominantely on hospitality, the employees are accustomed to costumized services. However, the telephone services only contributed to 5% of the total sales, but Zappos is wiling to focus on this sector, reflects its beliefs that customer experience is  important and that the lifetime value of customer is fixed.

Despite the success this strategic move has brought to the company, I disagree with Hsieh’s decision due to the unnecessary cost of relocation and employee benefit package. As Hsieh mentioned, Zappos paid the relocation cost for the employees who came along and even helped them to find new homes. However, the action  contradicted its purpose of moving to Las Vegas, which is to find local employees who treat customers better. In addition, the job these employees perform is basic customer service and do not require extensive training. I suspect there is no real need for Zappos to spend an overall $500,000 dollars. Moreover, Hsieh has admitted the expense was too high and decided to sell Zappos to Amazon in 2009. If the company had not reinforced the incentive compensation package for employees, but using competition and punishment instead, a huge amount of cost would have been saved. Although this (i.e., without the free food and 100% medical care) may hurt the working atmosphere, the employees will still strive to perform well in order to be rewarded or stay in Zappos.

After all, business should be about maximizing the profit, not creating a comfortable working space or a family-like executive team.

Works Cited:

“Zappos’ CEO on Using Corporate Relocation to Preserve Customer-Led Culture” by Tony Hsieh, January 3, 2014

https://hbr.org/2014/01/zappos-ceo-on-using-corporate-relocation-to-preserve-customer-led-culture/

The UBC Board of Governors and the Alma Matter Society have revealed that there will be a 10% increase of the tuition from 2015 for the incoming  international students. In addition, the residence fee will be raised by 20% from next fall.

The objective of the action is to attract more domestic and international students by improving facility and academic experience as well as boosting the university’s competitiveness and reputation. UBC could devote more of its money on student services such as counseling, which is now underfunded and needs more budget to improve its service.

It is certain UBC’s tuition fee cannot be too far from its competitors such as University of Toronto and McGill, both with  a higher international tuition and more international students bodys. Thus, UBC has chosen the accurate market strategy to increase its international recognition and  its academic reputation.

But, wouldn’t the increase in tuition lower than the number of applicants?

A higher tuition will serve more as an incentive instead of obstacle for  applicants. Due to the inelastic demand, there will be a  great number of international students who  compete for being admitted to UBC, and the demand doesn’t change because UBC is only charging similar tuition, despite high, as other renowned universities( not to mention American universities which have even higher international tuition).

Therefore, despite international students’ opposition and protest, the university still consider the decision justified as it will bring positive impacts on UBC.

References:

http://students.ubc.ca/enrolment/finances/tuition/tuition-consultation/framework

Upon the lecture of the CSR( Corporate Social Responsibility) and Sustainability and the news of the recent Taiwanese Gutter Oil Scandal, I begin to ponder the negative external cost the corporations, especially the ones that are closely related to human daily life such as food industry, could cause by considering the societal benefit as the periphery instead of the core. The mindset does not bring business and society back together. In order to create shared values that will not only create economic value for the company but also the value for society, business must reconnect their objective with social progress, in an environmental and economically sustainable way.

Food safety and sustainability are closely interrelated; in addition to generating profit companies must consider the importance of social justice and the consequences of unscrupulous practicing. The recurring food safety scare in Taiwan is a failure of the food corporations to recognize and operate in the societal and national interest. Now after six countries and areas have officially banned imports of Taiwan food products, the government eventually addresses the measures to eradicate unethical food, including heavier fines and separate import process for animal feed and greater oversight over recycled edible oil. However, these regulations are merely measures to prevent corporations from unethical practicing, in order to reconnect the businesses with the society and contribute to the economic value of the society. Addressing social harms does not necessarily create internal cost to the businesses. Opposite, the positive brand recognition and reputation will attract more potential customers, even expanding to the massive global market.

To eradicate unethical food manufacturing from the root, an organization such as Food Safety Operating Committee (FSOC) should be established to maintain consumer confidence in food safety while reducing the risk of reputation damage in food industry. To guarantee the sustainability and the social benefit, a life cycle approach will be enforced and introduced to food companies, assisting them to understand the correct procedures of creating sustainable and environmental friendly food.

Works Cited:

“A Life Cycle Approach to Food Safety and Sustainability” by Gail Barnes, September 2011

http://www.foodsafetymagazine.com/magazine-archive1/augustseptember-2011/a-life-cycle-approach-to-food-safety-and-sustainability/

This is a response to Will Zhang’s  blog post

As free online streaming music sites becomes  more common, major record labels suffers the continuing decreasing album sales. The major labels and well-known artists have fought against the sites either by removing their songs from the service  or by suing the sites for violating their production rights. For instance, Taylor Swift  recently removed all her music from  the online streaming service, Spotify, in hopes of boosting up the actual album sales. However, at the same time the free access to music these sites  has expanded customer segments for the music industry, including people who do not find enough incentive to purchase music and people who only listen to hot 100 Billboard songs.  As a music lover, I appreciate the benefits of the online music streaming services, but I also have mixed feelings about the potential harms it brought to album sales , as this may cause numerous  musicians and artists to stop producing music.  Below is the pros and cons chart of the influence that the online streaming music service has brought to the music industry.

Pros:

• Expanding customer segments by attracting potential customers who don’t have enough incentive to purchase albums or online music.
• Free promotion to record labels and artists
• Loyalty to record labels (if the label is willing to collaborate with the sites, for instance, The Australian Recording Industry Association (ARIA) includes streams of music tracks in its music chart)
• Decreasing the cost of manufacturing albums

Cons:

• Resulting in the decline of the recording industry
• Limiting the growth and development of indie. labels or small-scaled record labels
• Violating the song rights as some artists (such as Coldplay, Taylor Swift, and Beyoncé) may not intend to release their music on the streaming sites

Works Cited:

November 5th, 2014 , “ARIA to include streaming in charts” by Dominic White

http://www.theage.com.au/entertainment/music/aria-to-include-streaming-in-charts-20141105-11gzwn.html

To see the original article, click here

Food safety issues have become a significant concern for Taiwanese  recently due to the latest, and perhaps the largest, cooking oil scandal which has led to the market withdrawal of 68 well-known brands in Taiwan. Wei Chuan Foods Corp., a subsidiary of Ting Hsin International Group, is accused of mixing imported animal feed-grade oil from Vietnam sell as cooking oil. At the same time, Chang Guann Company, another cooking oil manufacturer, has produced more than 645 tons of adulterated cooking oil and has distributed it to more than 1,200 restaurants. That oil was blended with “Gutter Oil”, an illegal ingredient made from kitchen waste.

A Taiwanese who used to trust the food-safety policy and the name of the brand, I was astonished by the giant food corporations’ lack of conscience and business ethic, which caused the toxication of over thousands of people and create detrimental, even lethal effects to the brand image perpetually. To punish such unethical deed that harms citizens’ health and affect the economy of Taiwan by destroying the product image, these suggestions can effectively exterminate all the subsidiary or partner corporations of Wei Chuan Foods Corp and prevent similar events from happening:

• The Taiwanese Government, along with the local supermarkets and consumers, should boycott all related product associated with Wei Chuan Foods Corp for the safety concern to diminish the corporation’s influence in food industry

• Instead of fining such a wealthy giant corporation which has established its business, factories, and markets in Taiwan but also in China and North America, the executives and the largest shareholders should be detained. This will serve as a lesson for other corporations.

• Fines up to $500,000,000 dollars (NT $ 1.5 billion) should be imposed for the purpose of restoring the global image of food products made in Taiwan.

Work Cited:

http://www.nytimes.com/2014/09/19/opinion/taiwans-gutter-oil-scandal.html?_r=0

Enbridge’s Inc, the Calgary-based pipeline giant seeks the approval to run its $7.9 billion Northern Gateway petroleum and condensate pipelines. Still, much more needs to be done in order to gain the support from the environmental organizations, the government, and the First Nations.

Aware of the rising oil demand of the Asian market, Enbridge is determined to seize this opportunity, for the demand will increase over years and they will gain huge profit as the Alberta-Kitimat, B.C pipeline is built. However, it currently is facing the fierce opposition from the Nak’azdli, for the pipeline lies on the heart of Nak’azdli’s territory. The Yinka Dene Alliance( a group of six First Nations including the Nak’azdli) has made its firm stance to not let the oil pipeline be built, and they claim that their traditional territory encompasses 25% of the proposed route. This implies Enbridge  is facing a threat which would affect their key resources, petroleum, condensate, and land 

The opposition from the Aboriginal communities serves as the threat which challenges Enbridge’s operation and potential benefits. However, the giant figure in pipeline industry is set to turn this external threat into an opportunity which would generate the maximum benefit and reduce the conflict to the least. Enbridge has held more than 2000 public hearings for First Nation communities. In addition, it offers these communities equity partnership, making them one of the prominent key partners of the project and  granting them 10% stake in the pipeline project. The pipeline will generate more than $300 million contracts and job opportunities.  The First Nation group, at the same time, will also receive fundings from Enbridge to support the local education and environmental protection. Enbridge has worked hard to resolve the disputes and safety concern of the First Nations, especially the Nak’azdli, in hopes of turning the most prominent external threat they encounter into an opportunity to change the public’s impression of pipeline and demonstrate Enbridge’s willingness to maximize the environmental safety by improving the safety enhancement and respect the Aboriginal communities’ tradition and living style.

Works Citied:

Hoekstra, Gordon ““‘There Will Be No Pipeline’ In the Heart of Nak’azdli Territory, There Is a Steely Resolve — the People Are Firmly against Northern Gateway.” 16 Aug. 2014. Web. 05 Oct. 2014.

http://www.vancouversun.com/news/There+will+pipeline/10122968/story.html

First Nations and Métis partnership is at the very heart of the Northern Gateway Project

http://www.gatewayfacts.ca/Benefits/First-Nations.aspx

http://www.cbc.ca/news/canada/northern-gateway-pipeline-project-6-things-to-know-1.2469561

To see the original article click here

Blackberry, in hopes of reviving the company, has released their newest flagship smartphone-the Passport, which it claims as the revolutionary smartphone with innovative technological specifications, including prolonged battery life, 4.5 inch square screen with high resolution, stereo speakers, and a navigable keyboard with touch screen.
However, the marketing strategy that the company has set up is bewildering and  detrimental to the sales of the Passport, even putting the brand’s survival in jeopardy. Firstly, the phone is released at the end of the year, the time when the giant leading corporation in the electronic product industry- Apple, will be announcing its new product- iPhone 6. This means Blackberry will have to compete with Apple, which has established worldwide recognition and a large client base. Therefore, it is certain that the Passport would have an uphill battle competing against large numbers of iPhone users.

Blackberry CEO, John Chen, stated that the Passport only targets 30% of smartphone owners out there, which implies the company operates in the focus strategy(differentiation) in a narrow market segment. Yet, the smartphone markets are extremely competitive. While Blackberry is only focusing on 30% of the consumers (the actual buyers may be vastly less than the percentage), other brands are seeking to impress the broad market segment and increase the users worldwide. Thus, Blackberry’s focus on a narrow segment limits Blackberry’s potential sales as well as the possibility to gain influences and recognition internationally. The company has established numerous creative devices on the Passport, but some functions received mixed reviews from the user. For instance, the Blackberry has received complaints from Passport’s bizarre shape. In addition,the difficulty of holding the phone is another flaw that discourages smartphone consumers.

Instead of focusing on designing new features that seem unusual to the general customer segments, Blackberry should resolve the missteps its previous phones have had  such as the limited access to numerous widely used Apps.

Works Cited:

 Ian Austen “A New BlackBerry Phone, but Maybe Too Late”  September  18, 2013

http://bits.blogs.nytimes.com/2013/09/18/a-new-blackberry-phone-but-maybe-too-late/

To read the original article, please click here

McDonald’s is cashing on the idea of creating a brand-new yet surprising limited-edition black burger, or more precisely, a squid-ink flavor burger, in Japan.
In response to one of its prominent competitors- Burger King’s action of releasing the “Kuro” burger on early September, which features not only black buns but also black cheese and ketchup sauce made with bamboo charcoal . However, since this speciality is only offered at limited locations and time, this indicates McDonald’s experimental approach with this entertaining product can be interpreted as an ambitious strategy to snatch the attention Burger King has received from inventing the first squid-ink flavored black burger.

This will prove its irreplaceable and leading position the enterprise is at by generating its point of parities (PoPs) that will impress and generate positive results for the company. Fast-food chains is a competitive market with relatively elastic demands ; therefore the marketing strategy along with value proposition, which analyzes the target customers’ pain and gain and “what can the product do for them”, is crucial to the company’s future. As these companies encounter slow domestic sale growth, McDonald’s, along with its big rivals such as Wendy’s, Burger King, and KFC, all begin to seek the opportunities in the international business market. To accommodate to the local cultures, traditions, and even religions, these enterprises need to create diverse menu items to appeal to the local consumers’ appetite. McDonald’s “Ikasumi” burger provides gains for consumers by the additional satisfaction of curiosity, serving a product that goes beyond the public’s imagination with the product’s entertaining appearance.

With the added value to local Japanese customers, these burgers, bizarre in North Americans’ eyes, can benefit McDonald’s outstanding sales and growth.

Works Cited;

Cameron Koch ” Now McDonald’s has a black cheeseburger in Japan” September 26, 2014

http://www.techtimes.com/articles/16569/20140926/mcdonalds-in-japan-now-have-a-black-burger-of-their-own.htm

ttp://www.accountingweb.com/article/maximizing-returns-or-unethical-tax-avoidance/222083

This is a post that reflects on Jacqline Geng’s blog post about Apple’s unethical conduct about avoiding taxation regulations, to see the original article,  click here

Apple, a company that owns more than a hundred billion dollars and is well-known either in the U.S domestic market or the globe, is avoiding its obligation of paying the income corporate tax by taking advantage of the law loopholes of the tax regulations of Ireland and America- creating a stateless corporation. Technically, Apple still legally operates its company without either violating the United States’ tax corporation law or that of Ireland’s (utilizing the notorious law loopholes called Double Irish). However, as Apple exempt itself from the responsibility, it is operating against business conscience and ethics,which can create  negative impacts on its brand name and reputation.

I agree with Jacquline’s opinion on Apple’s unethical conduct of deliberately avoiding corporation tax. The influence and power Apple has in the competitive market of electronics product industry, United States, and even the globe is enormous, therefore Apple not only has to abide by all the regulations but also keep away from the deeds that would give the public negative impressions and pose damage to the brand’s image. However, the article did not highlight the problems of “Double Irish” (a deception strategy), and other tax loopholes  used widely among American enterprises, which indicates that there is an underlying concern that in the future, more companies will utilize this well-knowing, long-existing tax heaven strategy to avoid its social obligation. Therefore, the government ought to devise a better, more complete regulation to fix the failing taxation codes to stop companies from dodging its social responsibility and placing its interest before the social interest before the wellbeing of the society.

Below is the diagram which shows the tax payment that Apple has “reduced” by exploiting the Double Irish loophole strategy.

Works Citied:

Lee Sheppard “How Does Apple Avoid Taxes?”  5/28/2013

http://www.forbes.com/sites/leesheppard/2013/05/28/how-does-apple-avoid-taxes/

the original article: http://www.scu.edu/r/ethics-center/ethicsblog/business-ethics-news/17664/TWITTER-IPO:-Where-are-the-Women?

This article, which highlights Twitter’s, or most high-tech companies’ preferences of male over female due to the stereotype and the tradition. Basically, the article addresses the reasons for not having an equal number of female and male workers in Twitter’s executive team; however, I do not agree with the expert’s stand that it is a long-term problem and cannot be fixed in a short amount of time, and also the perspective which attributes Twitter’s difficulty of finding a woman member in their team to the industry’s tradition and stereotypes.

If certain actions or regulations were made by the government, the high-tech industry companies such as twitter will put more efforts into finding excellent women members for their executive team instead of doing it reluctantly and shows the society “how hard it is to find a woman worker in the high-tech industry”. For instance,  government can offer sponsorship to  twitter if the company agrees to hire the same number of female and male members on its executive team, or even encouraging them to form an all-female team. This way, not only the big companies like twitter will be willing to break the tradition because of the sponsor and the extra promotion, but also the reputation they will earn from lessen a long-existed social problem- gender inequality. After all, twitter is one big target for the social activists because of its fame and the extreme lack of woman(only having one woman) on its team, but there are certainly more companies in this industry that have the gender imbalance issue when hiring.

Works Cited:

Patrick, Coutermarsh(2013). TWITTER IPO: Where are the Women? from http://www.scu.edu/r/ethics-center/ethicsblog/business-ethics-news/17664/TWITTER-IPO:-Where-are-the-Women?

http://www.networkcomputing.com/networking/early-twitter-team-member-dishes-on-services-origins/d/d-id/1105151?
Bronwen, Clune(2013). There’s absolutely no excuse for Twitter not to have a woman on its board?  from  http://www.theguardian.com/commentisfree/2013/oct/11/twitter-ipo-women-board