http://www.theglobeandmail.com/report-on-business/investors-buy-into-gms-return/article1804021/

I never really quite understood how investments work, how people could put so much money into a risky venture that may or may not return a reward for you, at even worse, let you lose it all. As GM returns itself into the automobile market in the United States, hundreds of fund managers bought a chunk of the GM Co. shares. Many of them believed that this will be a start to rebuilding the decreasing sales of US automobile companies. However, there were also people who were uncertain about the security of investing into GM. They say that that risk is too expensive, and they would not invest into this.

The returns of an investment are always risky, as they are not known ahead of time: they are just random variables. In this case, with the competitive market in the automobile industry, especially with Asian competitors such as Toyota and Honda, it seems like a very risky investment, although, they seems to be a growing renewed confidence in the United States automaker.

This article from The Globe and Mail is quite interesting as it got me thinking: I know that countries around the world are all in debt, but for what reasons are they borrowing huge amounts of money? The article it states “governments have borrowed money due to the recession and financial difficulties in the recent years.” They help pay for bailouts, social programs to help those that are affected by this crisis, such as those unemployed.

The financial support that the government provides is similar to a reward system. They help those that have troubles by giving them a way out, however, in some situations, because of their support; unemployment rate for example, has gone up. Incentives to work have decreased. People rely more heavily on the help, especially financially, from the government. The government’s good intentions of helping the country regain its balance might be the reason why they have not recovered. It seems like they are pushing too hard on that financial factor, when instead, maybe they should think of other strategies to help the people. This unbalance results in this system that is sometimes considered dysfunctional, alike to the Balancing Act that we discussed in class.

Starbucks is a well known internationally. One of the important contributions to their success is their excellent use of tactics, which then in turn achieves their strategies. An example is the use of a “My Starbucks Rewards” system where customers receive a free drink through this card program after 15 purchases at their stores using the card to make the transaction. Not only are customers able to earn free drinks, they are also able to receive “free syrup, milk options, refills on tea and freshly brewed coffee”. This is a brilliant way of marketing because it can increase its brand name, and also allow people to make the connection of the card, the rewards received to Starbucks. In addition, this accomplishes their strategy of building loyal customers, because they feel well repaid with this membership, and a sense of belonging to a community. This company has many strategies to target coffee lovers in a large age group, and uses a higher priced, fine quality coffee to compete in the market.

http://www.theglobeandmail.com/globe-investor/news-sources/?date=20100922&archive=bwire&slug=20100922006804

Competition is fierce in the market, especially in the foods area. “Battle between pizza chains” is fierce but they fight over the same points of parity, such as crust, toppings or the time it takes for delivery. However, Ali Baba Pizza has used a unique way to advertise and attract customers: “the pizza box of 21^st century”. Enforcing the use of environmentally friendly pizza boxes as a point of difference was a clever move as consumers are more and more aware of eco-friendly products. In addition to its promotion of conservation, this recycled cardboard pizza box can also transform into a container and plate conveniently. Mark Murr, the owner of this pizza chain, is the first in Canada to use the GreenBox, which acts as a strategy in marketing as they are the first to position themselves in this category. The use of the GreenBox allows Ali Baba Pizza to successfully achieve the points of difference of sustainability and distinctiveness.

 http://www.vancouversun.com/entertainment/Restaurateur+adopts+pizza+21st+century/3559940/story.html?id=3559940

Starting a company or any business venture seems like tricky work, however, with the aid of a good business plan, entrepreneurs will be well organized.

In North Vancouver, a family did just this. Using what they knew and were good at, they organized them into a plan of action and number. Using their ability for “roasting premium nuts and dried fruit in Iran and Middle Eastern countries” and having a target group and market, they successfully started up their business. Having a business plan, including the start-up costs of $300 000, employees (family), estimates of how much nuts and fruits would be sold daily, to how much would be sold on special occasions, they were well prepared. They have a special niche, which provided them “less competition and more room in the market to make a profit” and on top of that, their vision of having good quality – resources from all of over the world – and pricing enables them to have the good achievements they have now. The owner, Amir, says that he to even “open a second store in Vancouver within a year”. The importance of having a clear yet unique business plan will lead to the success of a business.

http://www.vancouversun.com/life/Nutty+business+venture+pays+North+Vancouver+family/3560257/story.html

Management and Information Systems work to maintain and organize information through technology. It is becoming a more and more popular field as technology advances, and the popularity of “web access” or “online communities” rises. Disney for example, launched a website for users to update their personal experiences at Disney. This allows Disney to not only gain more recognition as a brand, but it also indirectly allows them to make profit.

 Another similar company that just launched its first “debut” in Canada is Netflix. They work alike to pay per view or video on demand, however, instead of paying per movie you see, it charges you by month for access to numerous movies and shows. It is only offered online in Canada, and this conveys the importance of using technology to gain profits. The use of technology is successful because of its convenience and is one of the fastest ways to advertise. By examining the response of users through technology, companies are able to decide upon what the next steps are to expanding their business. The use of Management and Information Systems is essential now, and even more in the future when technology is even more advanced.

http://www.vancouversun.com/entertainment/Netflix+debuts+Canada/3559942/story.html

Credit Card Frauds

There is only one goal for all companies alike: profit. For achieving these goals, morals and ethics are thrown to the back of the playing book. However exaggerated the example of business frauds are in this article, it can quite correctly display the ambitious goals of many companies who try to find loopholes or dress up their products.

A fraud company, Central Coast Nutraceuticals has used fake credibility to sell their products – a berry supplement and a colon cleanser – such as Oprah Winfrey. They trick their customers into thinking that they are receiving free products, but without their consent, they are automatically signed up for a month of delivery with these fees added onto their credit cards. A profit of $100 million has been collected through these methods.

This links to the case of Ryanair studied in class. Although Ryanair does not directly use illegal ways of maximizing their profits, but they do indeed enforce “deceptive marketing practices”. This airline company is well known for their cheap tickets which pay only for the most basic necessity of the flight, a seat. If a traveler wants an upgrade, food, or even a boarding pass, they must pay for it. Ryanair does not implicitly inform passengers of the extra costs, similar to how a fraud company may not tell you that you are automatically signed up to pay for a month of products.

http://www.cbc.ca/money/story/2010/09/15/con-card-fraud.html

Welcome to UBC Blogs. This is your first post. Edit or delete it, then start blogging!