Robert's Blog

The Odón Device has been developed, and it makes pushing the baby out of the womb much less labor intensive. This invention is groundbreaking and it is apparent that it falls under the painkiller category, as it fulfills a need that was previously unknown. I read this article on William’s blog, and agree that this device is a lifesaver with the value proposition of easing the pain of births. It will preserve the lives of mothers and babies primarily in third world countries, and can also save babies from defects and injuries that are associated with being pulled out of the womb. Before this new substitute good, the previous solutions were to go to the emergency room, which is too costly for the third world, the use of forceps (large pliers), or suction cups. These methods are relatively primitive. Odon is also a car mechanic by trade, giving him the ability to see the method of solving conception in an unbiased light – an obstetrician would of simply attempted to improve upon current methods. Technology also greatly benefited this device, as without the platform YouTube, this invention would not have spread so quickly within the obstetrician field.

Source :

blogs.ubc.ca/williamliaw

The Marriot is a hotel company run by Bill Marriott and has been built upon the principles of his father’s small business – create a following based upon appreciation for the customer. This is rather difficult when the Marriot serves millions of guests each year, but the Marriott has built itself upon the pillar of customer service. Everyday since 1993, there has been a Marriott holiday where Bill makes personal phone calls to hotel guests. This is done in effort to showcase that the “company [reflects and recognizes] that our customers are the reason we go to work everyday. This was done through the initiative “See the World in a Whole New Way” in order to expand a target market. The Autograph Collection was developed, and a group of upscale luxury hotels have been designed to “reflect the adventurous spirit and uncompromising originality of the guests who seek them out”. These improvements have been made in order to capture the group of family vacationers. As Marriott’s depth grows it has begun to reach its new customers, and it is clear that the company will not sacrifice the quality of its customer segments and relationships even as the quantity increases.

https://www.cpp.com/pdfs/marriott.pdf

http://www.marriott.com/hotel-development/Autograph-Collection.mi

http://www.blogs.marriott.com/marriott-on-the-move/2013/10/helping-our-guests-see-the-world-in-a-whole-new-way.html (EXTERNAL BUSINESS BLOG)

I read Junho’s blog on the value of business ethics. He agrees with the writer’s stance of “Doing the right thing doesn’t automatically bring success. But compromising ethics almost always leads to failure.” The sole purpose of a business is to maximize profits, and it often does at the cost of its ethics. However, a company must entirely chase the pursuit of profit, as compromising on the company’s values may be profitable in the short term, but detrimental to the health of the company in the long term. This is the challenge that the CEO writing the article faced; should he fire his integral senior manager who was asking for sexual favors? In the end, the ethical decision to ensure the integrity of the company is what likely saved the company and its reputation. The CEO believes there are “no shortcuts to success.” Jun takes an opposing stance, stating that ethics and profits can be complex because they are not solely black and white. A balance must be struck because one cannot maximize profits if they are solely focus on ethics, but complete disregard for ethics in seeking profits will result in face and values of the company to disintegrate.

blogs.ubc.ca/jhc95

http://www.linkedin.com/today/post/article/20130713045920-8451-corruption-in-business-and-the-importance-of-ethics

Snapchat has declined a 3 billion dollar offer from Facebook, even though the company has made $0 in total revenue. I believe that the company saw this offer as   proof that refuted their beliefs that Snapchat will continue its exponential growth. Snapchat took a major risk by trusting that their app truly has longvevity and is not a fad. If this is the case, the company’s decision is an intelligent financial decision. In 2012, Facebook created an imitation app called “Poke”, which flopped tremendously. Facebook is also beginning to lose their teen audience to apps like Whatsapp and Snapchat. This is because Facebook was designed as a desktop social network site, and was able to overtake Myspace due to privacy concerns. If the same logic is applied to Snapchat, it is clear why the company would hold onto their shares. Snapchat was developed for a mobile platform, which is growing exponentially, and is almost completely private. Regardless of Snapchat’s decision, Facebook’s long-term weaknesses have been exposed. Even if Facebook had obtained Snapchat, they simply do not have the resources to buy out every app and monopolize the social network.

Flu season is now being used by Canadian drug stores as a “seasonal” direct revenue stream that can be used to draw in more customers. The stores’ points of parity is convenience; they are attempting to make it easier to get a vaccine from a local pharmacist than making a doctor’s appointment. Offering flu shots is also an excellent segway to getting people into the store. Shoppers Drug Mart has repositioned their brand into being a one-stop shop for flu shots and other needs. This will also assist with improving upon customer loyalty, as administer shots will be perceived as an act of precaution and goodwill. It also allows pharmacists to branch out and suggest alternative products to aid with prevention. The flu shots are an incentive to get customers through the door, and this alone will allow the drug store to cross-sell products and revenue streams within the store. In addition, these services also increase revenue as they receive government compensation. Therefore, flu shots are an excellent way to generate revenue as they increase store traffic, and minimize overhead costs, which is a key aspect in profit maximization.

http://business.financialpost.com/2013/11/02/retailers-battling-to-win-over-customers-one-flu-shot-at-a-time/

Canada Goose is suing Sears over its parkas, which have imitated the styling and iconic coyote fur. The fur is a major point of difference for Canada Goose, and the company is accusing Sears for misleading customers. Sear’s inferior goods will damage the customer segment that buys jackets for winter fashion, as part of what makes Canada Goose appealing is that its pricing makes it a conspicuous consumption good. Sear’s attempt to price gouge is not only dangerous to this customer segment, but also to the entirety of the Canada Goose brand.
However, the main purpose of Goose is not fashion. Their value proposition is that they produce only Canadian products that can withstand the most extreme cold weather temperatures. Sears is only able to price gouge because they are the complete opposite of Canada Goose; they produce Chinese products with inferior materials that are not suitable in Artic temperatures. I find this Sear’s practice to be highly unethical, as the warmth of Canada Goose is a painkiller to an outdoor expedition. Sear’s knockoff brand comes at the cost of people potentially attributing an inferior product that is completely inconsistent with the values of Canada Goose.

http://business.financialpost.com/2013/11/08/canada-goose-sears-canada/

Tesla announced its first ever quarterly profits of 26.2 million, but the company did not adhere to the GAAP principles when it released its financial statements. Under the GAAP, “Tesla Motors lost 30.5 million this past quarter.” This discrepancy occurs from Tesla’s loan scheme. The buyer takes out a loan and pays Tesla upfront, and the buyer owes the bank. Tesla takes a prospective stance by saying the car is sold, while GAAP states they are leasing the cars. Personally speaking, Tesla’s accounting principles are too speculative as Tesla’s loan contract also gives buyers the option to sell their car back after three years. This “buyback period” also artificially raises Tesla’s profits as they place a guaranteed value on their cars, increasing assets by 146.8 million. This number inflates the company as Tesla states they own the resale value of the car, even though the decision to sell the car belongs to the owner. Tesla’s accounting practices assume an unachievable scenario for the company, but the numbers have greatly improved consumer confidence, causing the stock to rise by 13%. In the long term, this trend will likely continue as currently Tesla cannot keep up with demand for its vehicles.

Source: http://www.theglobeandmail.com/globe-investor/investment-ideas/tesla-financials-a-peak-under-the-hood/article14668932/

Companies such as Indochino and Frank & Oak are able to appeal to customers by offering vast customization and style recommendations which are personalized to customer preferences. Having personally used Indochino, I found that the website’s clean interface and filtering of choices made it simple to find my desired product. Customization and convenient accessibility is why Canada’s e-commerce market is expected to grow from 24.25 billion to 37.87 billion by 2017. This predicted growth stems from the operation of a Direct Business Model. By cutting out the middlemen, these companies are able to go directly to the consumer. This is a more efficient process, which translate to lower costs for consumers. Customization provides a much needed benefit of personal touch, as these entirely internet-based companies lack human interaction.Customization builds customer loyalty and trust – after all it is much more satisfying for customers to own something they played a role in creating, rather than buying a mass produced product. Customers will feel a sense of brand loyalty, which will also result in lower return rates. These companies have provided a new medium to shop, and technology will only continue to improve which decreases costs and increases the ease of accessibility.

Sources:

1. http://business.financialpost.com/2013/10/06/how-canadian-startups-are-changing-the-way-men-shop/

Blackberry and camera companies have much in common; they were both once industry giants who have fallen due to new entrants and the threat of substitutes. In the past, camera companies never viewed smartphones as a threat as their quality was far superior to the smartphone. However, due to technological advances, the barriers of entry have been greatly lowered. The production of a high quality camera became much cheaper, and now smartphones dictate the industry. It is no longer about the hardware behind the camera, but the software. Smartphone software makes it easier to take pictures, which is a major competitive advantage over cameras. The industry has already adapted to smartphones, through apps such as Instagram which provides tremendous social presence and customization to users. Cameras are becoming obsolete, with global shipments of cameras falling by 36.2% in the second quarter of 2013 alone. The practicality and various features of a smartphone is enough to deter the average consumer away from cameras. As technology and support for smartphones will only continue to improve, it is inevitable that the camera will soon have only a niche market for professionals and true enthusiasts.

Sources:

1. http://business.financialpost.com/2013/10/05/point-shoot-collapse-why-big-camera-companies-are-the-next-blackberry/?__lsa=5844-f0be
2. http://www.nikon.com/about/ir/ir_library/ar/pdf/ar2013/13annual_e.pdf
3. http://www.quickmba.com/strategy/porter.shtml

Today marked the 12 year anniversary of 9/11, and AT&T attempted to commemorate the victims via Twitter. It is an excellent gesture to pay tribute to those who died in the tragedy, but AT&T’s decision to combine 9/11 imagery as a means to promote their smartphones was distasteful. The use of product placement was viewed as an attempt to commercialize tragedy as the statement “#neverforget” came across as an ad rather than a message. It is difficult to ignore the conflict of interest present, as the company’s twitter account is a marketing tool solely used to promote products to public.

Ethically, AT&T’s attempt to brand and associate themselves with the intense patriotism and sentiments that go along with 9/11 is despicable, as they did so in the same manner business align their image via celebrities and sponsors. Due to public outcry, AT&T realized their plan had backfired and took down the tweet shortly after it was posted. The backlash was justifiable as AT&T’s tweet failed to meet their social responsibilities as it only served to “strengthen the already too prevalent view that the pursuit of profits is wicked and immoral and must be curbed and controlled by external forces.” (178)

Article: http://news.nationalpost.com/2013/09/11/att-pulls-iphone-themed-911-tweet-after-mass-outrage/

Source: Corporate Ethics and Corporate Governance
Zimmerli, Walther Holzinger, Markus Richter, Klaus

Image: http://static2.businessinsider.com/image/5230a349ecad04731484f3e3-583-691/screen%20shot%202013-09-11%20at%2012.58.50%20pm.png