Nick Taylor-Vaisey discusses in a recent blog post for Maclean’s the streaming behemoth, Netflix, and how its particular approach to content acquisition is yielding it handsome returns.

That is, Netflix actually examines activity on file-sharing websites popular among frequent pirating individuals in order to determine which purchases to make and extend to members. By doing this, the company has affected the halving of BitTorrent’s activity following its most recent endeavour venturing into the Netherlands. Finally, Taylor-Vaisey additionally divulges that some analysts are forecasting that through utilizing this clever approach, Netflix will be able to attain a valuation near to $75 billion.

Referring back to Carson Woo’s video lecture on Management Information Systems, it is easy to distinguish that this is precisely what Netflix has in place. Moreover, it is visible due to Woo’s informative video that said MIS is responsible for Netflix’s continued success, for the company has a very sturdy MIS, one that has allowed corroboration of all the data essential for determining and executing strategically genius steps such as observing activity among file-sharers.

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Taylor-Vaisey Blog

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Professor Jeff Kroeker’s article, featured in The Globe and Mail this past July, highlights a flourishing business (Salem’s Ethiopia) situated in Addis Ababa: one that was able to pinpoint the requisite procedure for expanding to become a profitable business while at the same time retaining the value proposition that attracted customers to it in the first place.

This article was enlightening because it reinforced the notion that profit does not have to be prioritized over affecting positive social change. The two can be pursued concurrently.

Apart from Salem’s Ethiopia, another good example of this fact is Mala Collective, a Canadian company which brings rudraksha bead jewelry from Bali to be sold by various retailers around the world. From the beginning, Mala Collective has ensured stimulation of the local employment rate in Bali. From those who plant the rudraksha trees to the workers active in the harvesting stage, job creation has been palpable, a great benefit to the local community. Additionally, it is a fair-trade company, so these numerous workers share in the profit of world-wide sales.
Given its steady ascent on the worldwide market, Mala Collective demonstrates that social enterprises have arrived. Moreover, gratefully, they seem here to stay.

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Globe and Mail Article

Salem’s Ethiopia Main

Mala Collective Main

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The once lucrative cereal market is experiencing decline. Not too long ago, cereals such as Honey Nut Cheerios and Frosted Flakes were all the rage across North America: the perfect alternative to the whole-nine-yards, eggs and bacon and hash getup that used to define the typical breakfast. Cereal offered efficiency for those concerned about shortage of time; practicality for those who otherwise would have been getting up earlier than desirable to throw together full-fledged meals. Nowadays, however, even heavyweights like Kellog and General Mills, companies who made their name through cereal, are conceding to less than satisfactory demand for the product many North Americans came to know, love, though now apparently have grown bored with.

Why the disinterest? Simple. New products are coming out everyday that exceed cereal in regards to deliverability of most every one of its qualities. Yogurt is more efficient to have for a meal, there are made-to-go smoothies that are arguably superior in taste. Cereal has become easily and overly substitutable.

We’ve already covered Porter’s Five Forces and know that being able to contend with substitutes is essential to the longevity of any product. Perhaps cereal companies need a reminder of this.

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Article Caroline Fairchild

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As Priyanka Vasudev observed the other day, the online retail industry is at an all-time high and its impressive ascent is showing no signs of letting up. In particular, subscription services such as JustFab (which Vasudev refers to in her blog) are positively flourishing. This is discernible just by taking into account the sheer volume of subscription services available at the present moment. From Birchbox to Ipsy to JewelMint, clearly there is profit to be made from the subscription business model.

To standard onlookers, though, it may be perplexing as to how, myself included. When these subscription retailers first started showing up everywhere online, I was dubious as to how legitimate they were. Taking into consideration what we’ve been discussing in class, though, it now makes sense to me what has occurred.

The subscription business model is booming because it truly caters to the customer. At least in regards to these recent e-retailers, each of which proffer a initial sign-up questionnaire to determine your “style profile.” It is an ingenious model as it utilizes IT in order to accumulate vital information on customers which it then harnesses in order to provide a seemingly catered shopping experience, personalized to the last detail.

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Ipsy Main

Birchbox Main

JewelMint Main

On October 25th, I had the pleasure of attending Chasing Sustainability 2013, a conference depicting the culmination of Khanh Nguyen, Connie Chen, and the CUS Sustainability team’s hard work. This conference featured multiple different companies and speakers who’d come on their behalf to speak to their employers’ remarkable commitment to fostering a sustainable mindset within the workplace. Some of these companies were as follows: KPMG, Ernest & Young, Deloitte, PWC, Whole Foods, Staples, and many more. Each and everyone of them enriched my knowledge and truly enlightened me to the very real opportunities present within the workplace to implement sustainable practices.

Regarding what we have been covering in class, though, one of the speakers whose address most intrigued me was Brandi Halls, who was there representing LUSH. She spoke about the company’s history and its enduring commitment to being an ethical retailer and it brought to mind the article we read for the class on Corporate Social Responsibility. In particular, the line that denotes “[shared] value focuses companies on the right kind of profits—profits that create societal benefits rather than diminish them.” Evidently, LUSH has been aware of this along. To this day it continues to generate shared value. Phenomenal.

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Chasing Sustainability 2013 Website

Creating Shared Value Article

In a recent blog post, Hujia Yang acknowledges Swedish retailer IKEA’s would-be-stint in the food industry which has actually flourished into a genuine component of their business. Yang points out that IKEA’s success pertaining to this endeavour is largely due to their establishing their point of difference early on. IKEA took the road less traveled by food retailers and opted for a menu consisting of staple items. This is a demonstration of their cognizance of the composition of their customer base. IKEA did not set out to be a behemoth in the restaurant industry; it simply aimed cater to its existing customers: fatigued shoppers with an appetite. In doing so, in recognizing the reality of who they’re serving, IKEA has been able to serve them better than they otherwise would have.

 Knowing who the customer is is integral to any business. Another company who this has occurred to is Kleinfeld Bridal. Kleinfeld Bridal has extended its services to assist clients with hotel booking for wedding guests. Genius, considering its client base is already made up of individuals who this particular service will appeal to: brides and grooms. The service is called Hotel Blocks and being very well received.

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Kleinfeld Website

Huijia Yang Blog 

Pizza Pizza recently released its financial information pertaining to its fourth quarter in the year ending Dec 31st, 2012, and things are looking rosy for the Canadian firm. Considered to be among the two highest yielding restaurant stocks in North America, the Toronto-based corporation has analysts validating its rise. One in particular, Derek Lessard of TD Securities, attributes the firm’s success to the management team and their “ability to deliver, despite … difficult operating conditions.”

This brings one to acknowledge the significance of managerial accounting. Certainly, analysts such as Lessard can say it all comes down to management, but to properly put just what “it all” is into perspective, one has to look beyond the obvious.

Large events, outdoors and otherwise (carnivals, hockey games) typically generate leagues of customers for the Canadian chain. Yet, heavy rains and flooding in the last year saw attendance falter at many of these events. Furthermore, juggernauts such as Darden (owner of Red Lobster and Olive Garden) are watching their fortune fluctuate; “[missing] earnings expectations.” Still Pizza Pizza is garnering solid gains left and right. Consciously, they are utilizing the knowledge commonly yielded from managerial accounting: internal knowledge, and they are the better for it.

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Pizza Pizza & Darden ~ Article

Growth Info ~ Article

Principles of Accounting

Having had its inception in 1851, Fruit of the Loom is known to be “one of the world’s oldest brands.” Over 160 years later, not unsurprisingly, it is feeling the pressure to keep things interesting. Commendably, it has. Recently, the public has had the chance to experience its new advertising campaign. Headed by the marketing body Crispin Porter & Bogusky, the brand is making claims about comfort but what is more integral to its new message is the sudden focus on the “power of positive underwear.” Advertising is encouraging consumers to acknowledge the benefit starting off the day with undergarments that “they think of very little,” being they are so comfortable they needn’t cross one’s mind.

Upon perusal of some news sources, this was found to be most intriguing given its relation to the material covered in class the other day. Fruit of the Loom hasn’t conceivably changed their product. Merely, their advertising focus has shifted. Now encompassing the tagline “Start Happy,” Fruit of the Loom has essentially established a new point of difference between itself and competing undergarment brands. That is to say, optimally all underwear should be comfortable. Fruit of the Loom is distinguishing itself by proffering positivity too.

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Fruit of The Loom – Main

Crispin Porter & Bogusky

The New York Times – Article

It used to be grocery store brands “once carried a stigma.” They were reserved for those who were forced to seek them out out of necessity, given a smaller budget. Since the recession, however, sales of store brands among a variety of customer segments has actually skyrocketed. This was due to a “forced frugality” many shoppers felt compelled to adopt when uncertainty hit. Even since the recession, though, store brands’ popularity don’t seem to be on the decline.

Janet Eden Harris, the senior VP of Market Force Information, divulges “[s]ometimes I think [consumers] don’t actually know what is a store brand.” Nevertheless, with  “96 percent” of consumers in a recent survey admitting they purchased private-label brands “at least some of the time,” whether they know it is a store brand or not, the important thing is that they are buying it.

 “We expect private brands will continue to grab share year over year because of investments they’ve made in enhancing quality, innovation and … marketing and promotion[.]” This is a quote from Todd Hale, VP of consumer and shopper insights at Nielsen (a global information and measurement company).  The thing to watch now is whether or not his prediction comes true.

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Groceries Are Cleaning Up in Store-Brand Aisles

Nielsen Main

The rave scene had its heyday in the 90’s and now more recently has seen resurgence due to EDM, or electronic dance music, which has been “for the last two years, … the fastest-growing musical genre in North America” (Kot). Entire music festivals take place revolved around EDM, attracting hundreds of thousands of patrons. These festivals could rival any standard concert; they are gargantuan productions, with massive visual accompaniments to the equally immense sound. Tragically, however, “psychedelic light shows” (Mckinley Jr., Sisario) are not the only additional feature at these festivals. Rather, EDM festivals have become known to be “underscored by drug use and reckless behaviour” as well (Makarechi).

One drug in particular thought to be commonly present is known as “molly,” the supposedly pure form of MDMA. In fact, police suspect it is this drug that was responsible for the deaths of two attendees of the Electric Zoo festival earlier this month (Mckinley Jr., Sisario). This incident raises the question of whether or not festival organizers should be held accountable for not being more diligent and ensuring the safety of the environment for their patrons or whether they are already fulfilling their purpose in its entirety already putting on the festival at all.

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Kot, Greg. “Will America’s love of dance music go the distance?” British Broadcasting Corporation. 2013

Makarechi, Kia. “Some Thoughts On Deaths At Electronic Zoo, Dance Music And Drugs” Huffingington Post. 2013.

Mckinley Jr., James C. and Sisario, Ben. “Drug Deaths Threaten Rising Business of Electronic Music Fests” The New York Times. 2013