During the lecture, there was a clicker question asking whether or not we think the Euro should be eliminated and I chose “no,” because of the several negative effects that might arise if it is indeed abolished. Though, there are a few advantages of the elimination of the Euro such as, the liberty from the “economic prison” that the Eurozone countries have been trapped in. One of the negative effects discussed in class was that the countries Greece owes money to (i.e. France, Germany, Italy) would suffer, since they would not be paid back in full value. Further, trade would be not as convenient if the Euro is abolished. Also, the introduction of a new currency would not be as strong in value and in turn, increase the cost of imports Greece purchases. Further, the people who have money in a bank account would be disadvantaged with the exit of the Euro.

In John Cochrane’s blog, he states that the elimination of the Euro is the “same as the government seizing bank accounts.” The citizens would not be able to make any purchases with the money that they had. In addition, the confidence in banks, for example in Italy, would plunge and other countries would not want to invest/purchase the Euro, causing a decrease in demand and depreciation of its value. Therefore, these factors lead to the reasoning behind why a “grexit” should not take place.

Read John Cochrane’s Blog About the “Euro Explosion:”

Cochrane, John. “Euro Explosion.” The Grumpy Economist. N.p., 15 June 2012. Web. 25 Oct. 2012. <http://johnhcochrane.blogspot.ca/2012/06/euro-explosion.html>.

Photo Credits:

Will Greece Be Forced to Reintroduce the Drachma? N.d. Photograph. Radio Free Europe. Reuters, 15 June 2012.   Web. 25 Oct. 2012. <http://www.rferl.org/content/what-happens-if-greece-quits-the-euro/24615224.html>.

Mis’cel’la’ny Finds is not your average consignment store; instead, it is a social enterprise located in the Hastings neighbourhood that has been in operation since 2009, while recently opening on Commercial Drive. The social good they offer is the job opportunities they provide for women who have either been affected by isolation, drug addiction, sex trade experience, or violence. In support of Women Working for Women (W4), a group of devoted women aim to make difference by providing women who have been unemployed for an extended amount of time, a chance to regain confidence and obtain life skills.

Serving as a pre-employment program, these women are trained with skill sets needed to find a job in the future. The social mission is to empower many of these women to regain control of their life and effectively transition out of their previously precarious financial situation. Offering a wide range of clothes, shoes, and furniture attracts customers, since it keeps up with consumer demands while also providing a social good to society. Because it is a consignment store, they also encourage re-consumption of clothing and furniture to reduce the amount of waste society produces. Partnering with UBC’s H.O.M.E.S, Mis’cel’la’ny Finds is currently collecting blankets for Vancouver’s homeless youth who are struggling to build an optimistic future.

To Learn More about Mis’cel’la’ny Finds, please visit:

http://imedialocal.ca/wordpress/miscellanyfinds/

To Learn More about Women Working for Women, please visit:

http://womenworkingwithwomen.ca

Due to my ongoing speculation of Vancouver’s housing market, Gordon Feng’s blog post on the financial perks of renting a house captured my rapt attention. Indeed, the act of home ownership used to be a prominent investment, where one could accumulate huge profit after selling it 15 years later. However, in today’s economic situation, one is likely to lose a large sum of money due to the possible “bubble bursting” of Canada’s housing market.

“Canadian home prices are up nearly 100% since 2000.”

(Source: Euro Pacific Capital)

To reinforce Gordon’s insights, there is more financial freedom and flexibility associated with renting a house. In addition to mortgage payment, owning a home means that you’ll also have to pay for property tax, insurance, and utility bills. For many homeowners, the value of their home occupies a significant portion of their net worth; whereas, renters can achieve more investment diversification from the amount of free cash they possess. Furthermore, renters have the advantage that annual rent rates are regulated (in some provinces). Some may believe that renting a house means that money is being thrown away, but buyers do the same, since they have to pay interest. Besides the financial reasons to rent instead of buy, comes with the flexibility of moving, fewer worries about high property tax rates, and monthly spending will be more predictable. The housing market in Canada has boomed for quite some time, but the question is, when will the bubble burst? Perhaps in the wake of a crash, buying a house will seem more reasonable.

Burberry, a British luxury fashion house, has turned to technology in pursuit of luring its customers back and reversing its declining sales. The company warned investors that annual profits would be “at the low end of expectations,”[i] and subsequently, its share price plummeted by 18%. Burberry’s CEO, Andrea Ahrendts, has decided to create garments “fitted with interactive screens and RFID (radio frequency identification) tags.”[i] This will permit customers to view the production process by simply flashing their clothes in front of interactive screens.

Ms. Ahrendts’s decision to grow her company through incorporating high-tech gadgets in its product line is a brilliant tactic to get attention from potential customers and promote the brand. Due to global economic slowdown, luxury goods have become less appealing to the general demographic. However, the company, with 450 stores in over 50 countries[ii], is wisely adapting to the constantly changing environment. Burberry’s new strategy will add value to its brand and entice the technology-savvy generation to acquire its products.

For many Canadians, grabbing a cup of coffee from Tim Hortons is a daily morning routine. Passing by Tim Hortons after Thursday’s lecture on marketing and brand positioning let me pose a question. How does Tim Hortons successfully differentiate themselves using its points of difference? Tim Hortons serves home-style soups, such as Beef Lasagna Casserole and Hearty Potato Bacon, served in china (depending on location) as opposed to disposable containers. The consistency Tim Hortons offers means that you can walk into its shop knowing exactly what to expect.

“The chain’s biggest drawing card remains its legendary Tim Hortons coffee.”

(source: Tim Hortons)

Tim Hortons’ tradition, history, and hockey roots provide their customers with a sense of national identity and pride. Successful marketing of the points of difference is a result of Canadians having the words, “timbit” and “double-double” in their vocabulary. Its success is also due to their ability to adapt to the demands of consumers and changing trends. When the first Tim Hortons opened, it only offered two products- coffee and donuts. Consumer tastes grew with time and Tim Hortons diversified its menu by introducing muffins, cakes, pies, and cookies; while, offering healthy snack wraps. Successful brand positioning developed from its slogan, “always fresh,” which plays a significant role in marketing the company’s emphasis on providing fresh, top-quality products to its customers. Value and affordability remains a fundamental focus of its strong brand identity. In essence, its contributions to the community and distinct points of difference have allowed Tim Hortons to become Canada’s most successful coffee chain.

To learn more about the leadership efforts of the company, please visit: http://www.timhortons.com/us/en/difference/index.html

Photo Credits:

Oleniuk, Lucas. Tim Hortons. 2011. Photograph. Toronto. Thestar. Toronto Star, 4 Feb. 2011. Web. 24 Sept. 2012. http://www.thestar.com/business/companies/timhortons/article/933574–tim-hortons-to-open-120-outlets-in-middle-east.

A kiwifruit supplier in New Zealand has been warned for breaching the Fair Trading Act by misleading customers into thinking that they were buying New Zealand pollen when it was imported from Chile. The company repackaged the pollen from Chile, and attached the label, “Kiwi Pollen New Zealand” to their product before it was supplied to consumers. Allegations were made that the imported pollen let the kiwifruit vine killing disease (PSA) into New Zealand, but no conclusive evidence was found. Due to the lack of proof, the Commerce Commission decided to warn the company rather than prosecute.

“In fact Kiwi Pollen’s website continued to give the impression that all of its pollen was collected from properties in New Zealand,” she said.

(Source: Bay Of Plenty Times)

Although neither competitors nor consumers suffered any provable loss or harm, this article epitomizes an ethical issue that arises when marketers fail to disclose risks associated with their product. The company is conducting unethical behaviour through deceptive and disingenuous advertising about the place of origin of their product. The consequence of failing to promote responsible, strategic marketing brings into focus R. Edward Freeman’s statement that a company, “that doesn’t pay attention to the issues of corporate responsibility [is] a business that is soon to be regulated into decline.” The company’s decision of ignoring stakeholder demands for responsible marketing can obliterate the trust of their customers and decline sales. Instead of deceit, the company should have focused on maximizing its positive impact on society and executing socially responsible actions that can generate positive publicity and boost sales. The deceitful action performed by the kiwi company highlighted the importance of ethical business behaviour for the success of a business.

Learn more:

http://www.bayofplentytimes.co.nz/news/local-company-warned-deceit/1539773/

What is Stakeholder Theory?- R. Edward Freeman:

https://www.youtube.com/watch?v=bIRUaLcvPe8&feature=youtu.be

Photo Credits:

Watt, Peter. Kiwi Fruit Anthers. 2012. Photograph. New Zealand. Bay of Plenty Times. APN Holdings NZ Limited, 11 Sept. 2012. Web. 12 Sept. 2012. http://www.bayofplentytimes.co.nz/news/local-company-warned-deceit/1539773/.

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