“If the United Nations were fully funded why would we need the Arc or social enterprise?

In the world of business, having sufficient understanding of how to run an enterprise on a long term basis is critical. Businesses may be given immense money and capital but lack the knowledge of how to utilize their resources to their maximum potential. This is the case in many developing countries where startups and entrepreneurs are eager to bring their products to the market but fail in the long run due to insufficient education on how to sustain a business.  The Arc Initiative provides a solution to this. The Arc initiative “seeks to build a bridge, an arc, that facilitates a genuine two way exchange of knowledge and business skills”. They have hosted many workshops over the years in developing countries, teaching entrepreneurs essential business skills and tools such as a SWOT analysis. Having a better understanding of their actual business and the surrounding market and competition, entrepreneurs that at first had no idea why their business was on the downhill are making the best use of their resources and incurring massive improvements.

Sauder’s Arc Initiative

So the question remains: Why Arc? What about the UN?

First off, the UN is a great organization, but oftentimes their solutions to social problems, especially in developing countries, revolve around providing funding and aid to the government. This is a short term solution because without correct knowledge of how to utilize the UN funding, the funding itself is essentially wasted. Educating the people in these developing countries, on the other hand, provides a long term solution as entrepreneurs understand exactly how to propel their business forward. The UN is responsible for responding to emergency situations such as pandemics or solving world issues such as poverty and famine; they don’t understand the importance of  helping entrepreneurs and business start up in developing countries. This is where Arc comes in- to fill a niche that the UN simply don’t have the time to attend to, assuming their capital is maximized in the first place.

SOURCES:

http://www.sauder.ubc.ca/Global_Reach/ARC_Initiative

http://news.ubc.ca/2014/06/30/upward-arc/

image- Google Images

In the world of business, the ability to expand globally signifies the immense success of one’s company in their domestic market. A company does not simply think or plan about expansion into overseas market without massive financial backings and growth potential. However, should all successful businesses venture into international markets? In a very simplistic point of view, international markets represent additional revenue sources. If one has success in the Canadian market, what’s stopping them from having the same success in other markets? The more global markets the company takes up, the more money the company will make. This is not true however. If this was the case, then ALL businesses that have been successful  in their home market would have went into oversea markets. Then the question arises: WHAT is stopping businesses from expanding globally? The blog “Futurpreneur Canada”‘s post “5 Questions to Consider Before You Go Global” underlies 5 simple yet extremely crucial questions a business must ask itself when considering global expansion. These are my perspective on two of the key points:

1. E-Commerce Market and Social Media?

E-commerce has been on the immediate rise and has shown no signs of decrease anytime soon. It is a symbol of 21st century technological advancements in business. Businesses that venture into global market should definitely consider the size and growth potential of E-commerce in the market they are thinking of because a potentially or already strong E-commerce market may be extremely beneficial for certain businesses. Companies could take advantage of E-commerce and utilize it to link into further oversea expansions. Another interesting thing that was mentioned in the blog was the fact that social media research should be implemented. Big time platforms in the Western world like Facebook or Twitter may not be the best choice for everyone. Some of the most popular social media networks are actually non-English. I completely agree with this point and I think that a lot of the times US companies get complacent with the social media networks that they are accustomed to as opposed to social media networks that are actually prevalent in the overseas market they operate in ( e.g- no big US companies currently  have Weibo, China’s largest social media website)

Have you even heard of Weibo?

2. Who are the Users? (Language, Values, Religion, Purchasing Behavior)

Companies that go overseas must understand one key difference from their domestic market and their international market- the people there are different. Chances are the consumers in the overseas market have different languages, values, and social protocols that will influence their purchasing behaviour and their choice between similar companies. Oversea market businesses must change their key business functions like  marketing tactics, sales strategy, and partnership to better correspond with the market they are in or else they are doomed to fail. Consumers will choose companies that actually understand what they want and what they value as opposed to foreign companies who don’t know what they are doing 100% of the time even if they already have a well known reputation from around the world. There is reason why McDonald has a different menu and a different style in different areas of the world.

Global expansion is not as easy as it looks

SOURCE:

http://www.futurpreneur.ca/en/

http://www.futurpreneur.ca/en/2014/consider-before-you-go-global/

Images- Google Images

In the world of business, the word employees don’t often pop up in our head when we mention the word “success”. Instead, we think of words such as money, profit, growth- external growth of the company. However, where does external growth come from? How does a company manage to make such a significant amount of profit? As mentioned in my earlier blog post “Criteria for a Successful Business: Happy Employees”,  I mentioned the importance of internal growth and in particular employees and its relation to external growth and overall company success. Elaine Langton’s blog post ” Can One’s Job Really be the Happiest Place on Earth?” demonstrates how Disney utilizes its organization culture in the workplace and with their employees. During the job seeking process, Disney emphasizes the need for people that fit their core values such as optimism and a need for excellent quality service. Disney goes out of their way to make sure that employees are a good representation of what the consumer believes Disney to be: the happiest place on Earth. Without its employees, Disney World and Disney Land would nowhere be as successful and popular as it is now. If we think about it, the Disney employees are essentially the face of Disney at their amusement parks. They are the ones that carry out the happiness spirit and they are the ones making children from all over the world smile from ear to ear. I completely agree with Elaine’s point of attributing Disney’s happy employees to not only overall productivity in the work environment but also an essential part of Disney’s brand image.

Who doesn’t love Disney?

Elaine’s blog post about Disney employees also reminded me about Zappos, a online shoe company thriving off its incomparable customer service through its help line. Zappos employees have broken records for the time spent on phones with their customers and they have made their help lines an enjoyable service for both the consumers and the employees. The main reason why Zappos has such an exceptional customer help line is mainly due to providing employees with motivational incentives , and a fun  and relaxing workplace. Similar to Disney, Zappos’s employees are in a sense the face of the company because they allow Zappos to give out a brand image of a company that exceeds in providing customer after sale services. I will link more information about Zappos at the bottom!

It’s crazy to undervalue the importance of employees but its even crazier to undervalue the instilment of core values within the company workplace and the internal growth it may lead to.

SOURCE:

https://blogs.ubc.ca/elainelangton/

https://blogs.ubc.ca/elainelangton/2014/11/09/company-culture-can-ones-job-really-be-the-happiest-place-on-earth/

More info on Zappos: http://www.newyorker.com/reporting/2009/09/14/090914fa_fact_jacobs

image- Google Images

In the world of business, having a critical eye for unmet market needs will go a long way in a person’s career path. The husband and wife business team Billy Taylor and Brook-Harvey Taylor, featured in the article “America’s Small-Business Owners Of The Year Explain How They Came Back From The Brink Of Failure”, are good examples of this. The Business Insider article talks about how Pacifica, the Taylor’s Oregon based candle and perfume business  made a roaring return after being hit extremely hard by the recession and unexpected changes in the distribution channels. When the Taylor’s first founded Pacifica in 1997, it was one of the only perfume company that had all natural fragrances and ingredients. It was their biggest point of difference and this difference allowed them to thrive in the market for several years. However, the market itself soon become more and more crowded as there weren’t a lot of restrictions or barriers to entry. Pacifica soon found themselves on the receding end of their share in the market and knew that they had to do something drastic to save their company. This is where it gets interesting. Instead of changing the company up completely, the Taylors decided to stick with their value proposition and simply introduce new products that revolve around it.  Pacifica is known to be a company that utilizes all natural ingredients and thus by maintaining their value proposition, they maintain company functions like target segments, key partners, and key activities the same as before. This part is extremely important especially for a small (relatively) business because it saves them valuable time and resources. For example, Pacifica doesn’t need to find new partners nor seek out new consumer targets. Pacifica recently broke out into the beauty industry and has since dominated that market.

The Taylor’s: Co-owners of Pacifica

The Taylor’s definitely took a risk on their move but I found that it was a very logical and smart move for the overall company. A lot of people don’t realize the immense efforts it takes to simply start a new company. The Taylor’s realized this and knew that it would be an even bigger risk to start out fresh with a market that they were unfamiliar with. They stuck with what they were most comfortable and maintained key sections in their business model, while revamping their products to better suit market demand. As mentioned in a lot of my previous blog posts, knowing how to change in correspondence with fluctuating market demands is crucial, and the Taylor’s stories demonstrates just that as well as in a cost saving and efficient method.

Pacifica Perfume

Source:

http://www.businessinsider.com/how-pacifica-became-successful-2014-10 (image from here as well)

Perfume picture- Google Images

In the world of business, conforming to changes and societal advancement is imperative for long term sustainable success. Abercrombie (as mentioned in blog post- A Flawed Business Model Canvas is a Flawed Business) is struggling to keep up with major competition such as H&M and Forever 21 because Abercrombie has been unsuccessful in keeping up with changes in the market. There is still hope for Abercrombie however. Their leading competitions offer the same type of service as Abercrombie (selling clothes) but the main difference lies in how they deliver that product to the consumers. Technological advancement isn’t the reason of defeat, and therefore it is actually likely for Abercrombie to bounce back into the market.

In Mary’s blog post ” Saving Paris’s Oldest Bookstore”, she talks about an interesting case of Paris’s oldest book store succumbing to the market domination of e-books and e-commerce and its inability to generate enough revenue to cover just its rent. Mary provides many suggestion to how the bookstore could turn its business around such as partnerships with e-book companies and also creating a strong shared value to try to differentiate themselves.

With respect to Mary, I believe that all her solutions do have a viability in sustaining the business but only in the short run. The difference between bookstores from around the world and  Abercrombie is that the changes that have been affecting bookstores are simply technological. E-books and e-commerce are extremely convenient and this is especially important in markets where consumers are generally busy and don’t have the time to go to a bookstore. Some may argue that there is still some market for consumers that like the paperback feel of non e-books, but I strongly believe that this market is slowly decreasing. School textbooks, for example, have slowly been made more and more available online. The point I’m trying to get at is the market for traditional books is inevitably dying and there is nothing bookstores can do, other than remodel their business. That is a problem in its own right. Knowing when to back out of a dying market is imperative to minimize the potential losses from stubbornly staying.

SOURCE:

https://blogs.ubc.ca/liqiaoma/

https://blogs.ubc.ca/liqiaoma/2014/09/27/saving-pariss-oldest-bookstore/

In the world of business, conflicts between businesses and stakeholders are inevitable. When conflict arises and it directly impedes the business’s key plans and activities, action must be taken immediately. In many cases, remaining head strong on conflicting matters don’t warrant any type of solution in the short run. This is the case in BC Hydro’s plan to build a $8 billion Site C hydroelectric megaproject. The First Nations are strongly against the megaproject that plans to provide clean hydroelectric energy in northwestern British Columbia due to immense predicted damage to integral First Nation land and activities.  The federal government has been expected to reject BC Hydro’s plan mainly because the project is bound to create significant and irreversible negative effects on fishing opportunities and practices of First Nation. The panel responsible for the BC Hydro decision has stated in the past that while they understand the need for new energy and utility at some point in the future, BC Hydro has failed to provide any evidence in the need of such a massive infrastructure now.

The idea behind BC Hydro’s plan is understandable, given that the demand for energy and utility will surely increase in due time. It makes sense for a utility based company to  want to build a hydroelectric dam in a region growing in population and key industries because BC Hydro can meet increasing market demand in an instant. What BC Hydro failed to consider is the environment in which it planned to operate and this is evident in their business model. For BC Hydro to improve on their existing model, they must consider the external factors that will affect their plans.  Based on the article, it is clear that the government’s stance will not budge if BC Hydro does not change their existing plan. BC Hydro must first address how the benefits of their future projects will outweigh the damage that may accompany it.  Unless there is a sudden tremendous need for energy and utility, compromise is the key in a long lasting relationship with the First Nations. In their business model, BC Hydro’s key partners must include the BC government and the First Nation because large scale magnitude project will not be approved without the collaboration and approval from the two stakeholders.

The rejection of BC Hydro’s project shows the importance of collaborating and maintaining a positive relationship with key stakeholders. If  BC Hydro worked with the First Nations in creating a project that would satisfy both parties, then they could have avoided the time and resources spent on the courts.

SOURCE:

http://www.vancouversun.com/life/First+Nation+chiefs+stage+Site+showdown/10215965/story.html

In the world of business, change and adaption is necessary for success no matter the industry. A stagnant business that refuses or is unable to conform to the changes in the market whether it be consumer behavior, trends, or new and stronger substitute businesses, will no doubt fail. This is the case of Abercrombie & Fitch, according to the Business Insider article by Ashley Lutz.  The long-time standing teen clothing retailer has been on the downhill spiral since the surge of substitute retailers such as Forever 21 and H&M. Why the surge you may ask? Externally, it is because Forever 21 and H&M have taken advantage of changing consumer demands and taken action in changing their value propositions. Internally Abercrombie’s business model, when under scrutiny, has many obvious flaws.

Firstly, shoppers are much more price conscious than ever before and this trend is predicted to carry over even if the economy becomes better. For Abercrombie, there average price point is still much higher than their leading competitors despite attempts to cut prices. This is troubling because  they are not able to provide the same value proposition as businesses such as H&M. Competitors have realized that consumers want to try out new styles without a major financial investment.  In addition, Abercrombie struggles to pinpoint a specific target segment that they are focussing. Their store is a mix between ” classic, preppy fashions and high priced fashion”. In other words, it is hard to tell what type of audience Abercrombie is trying to attract. Gone are the days where Abercrombie was the only place for teens to buy clothing from. Rival businesses have pinpointed specific consumer segments to focus on and have found immense success, which further shows the importance of knowing which audience to target.  Having a good target segment is important because Abercrombie can then utilize it to make essential decisions on other parts of the business model. For example, if Abercrombie decides to have a family oriented target segment, then this must be represented in their stores and in their advertisements. Their customer channels should align with who Abercrombie are targeting. Instead of a store sprayed with a strong cologne and a dark nightclub vibe, the stores could take on a brighter and energetic approach. Instead of racy advertisements, Abercrombie could have more family friendly and approved type advertisements. These are just very simple examples of how customer channels can change to better suit the target segment.

When was the last time you shopped at Abercrombie?

For Abercrombie to stay relevant in the fashion retail industry, it must re-evaluate its business model and ensure that key aspects of their business model canvas compliment each other, in addition to aligning with current market demands and preferences. Business model should alway be changing and revolving, something that Abercrombie’s business model has obviously not done.

SOURCE:

http://www.businessinsider.com/abercrombie-store-photos-and-problems-2014-11

images- Google Images

In the world of business, there is always going to be rivalries.  One of the most iconic and worldwide known rivalries is the battle between Coca Cola and Pepsi. With Coca Cola’s creation back in the 1880’s and the spark of Pepsi after only a few years, the two now famous brands have been going against each other for the top spot of the soft drink industry for decades. To position themselves above the other, they have employed creative advertising tactics to change the consumer mindset about each other ( such as this one https://www.youtube.com/watch?v=DijFob8vxgI ). Each brand has innovated their products in correspondence with their rivals innovation. Examples would be Vanilla Cola and Pepsi Max. The origin of these two soft drinks came from each other’s products. Pepsi and Coca Cola have not stopped in making sure they do not fall behind in terms of products, market share, etc.

Pepsi True

Recently, Pepsi has unveiled their newest product called Pepsi True, a “green cola” with 40% fewer calories than a regular Pepsi and sweetened using naturally sourced sweetner. Is this a new product that the world has not yet seen? The answer to this question is no. Last year, Coca Cola released its “green cola” ( called Coke Life) and pay attention to this, the product has 36% fewer calories than a regular Coca Cola and sweetened using naturally sourced sweetner. Does this sound familiar? I think so. If you look at a side by side comparison between the two products, even the look and presentation is nearly identical.

Coca Cola Life

The interesting part about these green colas is that when Coca Cola release their version, the community was very divided on the taste of it. There wasn’t even an immediate uproar from the community it was launched in and it for sure didn’t gain world wide popularity (you can tell by the amount of green colas available in Canada and US- none). Even so, Pepsi is still relentless in making sure it does not fall behind to Coca Cola, despite the fact that green colas, so far speaking, has not even been remotely successful. While Pepsi may see that currently green colas are a bust, they may be afraid that future healthy trends will catch on and make green colas the “in” thing in the soft drink industry. Pepsi wants to make sure if such a trend does catch on that they will still be in fighting contention with Coca Cola.

SOURCE:

http://www.businessinsider.com/pepsi-has-launched-a-new-green-cola-pepsi-true-2014-10

image- Google Images

In the world of business,  the hardest thing to build up and strengthen is arguably your customer base. As mentioned in the previous blog post, BOTH employees and customers play a crucial role in the success of a business. In terms of a smaller or startup business however, the ability to create a happy and positive working environment is much easier, because there is a smaller and more intimidate employee base. Everyone in the company knows who everyone else is. The latter of the criteria for the success is what I think is the hardest challenge a small or startup business must face.

Are traditional surveying tactics still viable?

Katie Richard’s article is on a data collection business that has been started to help other businesses collect important information about its consumers. This software provides comprehensive customer profiles just based on their “call, email, and credit card transaction”. Most importantly, businesses gets an updated and real time spending behaviour of every consumer they have. With this information, they are able to analyse it and uncover possible business trends, improvement to their products, and changes in consumers demand. The idea’s advantage is similar to a direct business model, where manufacturers are able to cut out the middlemen and receive direct feedback and customization from customers on their products.  While this software provides a more implicit way of collecting information, this will no doubt be extremely beneficial for startup businesses. If they are able to effectively utilize the information given, this will make the life of the operations management team so much easier. The operations team will know exactly how to position the company and provides services and goods that give value to the consumers.

In the new age of innovative technology, businesses must realize and utilize its full potential. Traditional surveying tactics may not be the best solution anymore in terms of convenience, and reliability, and it for sure won’t be able to give you direct feedback after every transaction/purchase.  Smaller businesses should embrace this new technology before other businesses realize its potential. It may be the leg up they need to compete with big name companies.

SOURCE:

http://www.businessinsider.com/signpost-launches-data-collection-tools-2014-9

image- Google Images

In the world of business, we tend to focus heavily on consumers and profit. In the commerce classes that I am currently taking, we have been mainly fixated on the customers, the people who purchase a business’s products and services. We’ve learned the importance of being able to observe and adapt to changing demands and markets, and we’ve delved into how to create  and deliver value propositions to consumers.  This is completely understandable as the main point of a business is to make profit and it is impossible for any businesses to function without any consumers. BUT is it the only thing that determines the success of a business? What if there is something even arguably more important than creating value for consumers? ...like a business’s employees?

This article I found on Business Insider suggests that we may be overlooking the importance of our employees. No big companies would be  in its position without the work of its employees.  An entrepreneur or CEO’s brilliance in business may play a role but it’s the employees that make the magic happen ultimately. Without employees, a business’s operation and productivity would simply go downhill. There is just no one single person who can do ALL the work necessary.  Research as shown in the article indicates that employees are more productive, make better decisions, and are more creative and motivated when they are happy. The bottom line is that businesses who have happy employees are much more productive and efficient. With a higher level of productivity and efficiency, you are bound to be more profitable in the long run. If a business wants to be successful, ensuring that a business has a strong and dependable employee base is very necessary.  Think of it as an investment with an almost guarantee long term reward.

While I completely agree on the importance of creating value for consumers in the products that a business offers, I think a business also needs to make sure it creates value internally. People shouldn’t be dreading and hating to go to work on a day to day basis. Creating a positive, fun, and happy working environment is just as important as making sure customers value needs are met.

SOURCE:

http://www.businessinsider.com/why-happiness-at-work-matters-2014-8