Apple launched its new line of products with highly expected 5S. But what came as a surprise was the fact that they had also launched iPhone 5C. The difference between iPhone 5S and 5C are many, but the most significant of all is the price.This is a surprising move as Apple has made a shift in its business strategy and started targeting broader customer audience.

The brand positioning of Apple can be best described as being “refined”. Apple has its products design minimalistic, and essentially removing the stereotype of electronic devices being bulky and insipid. Naturally, these differnetiated products were priced relatively higher to other products. Nonetheless, the fact that Apple has decided to launch a cheaper alternative to its product sheds the light that Apple is trying to expand its customer base and branch out to the public. In other words, it is trying to make a move in to the “low cost” area from its “product uniqueness” grid of Porter’s Generic Strategy table.

One blog writer states in his blog that Apple’s move was a very poor one, as it completely defies Apple’s high-end image. Apple’s new line-up of 5Cs are not selling as much as expected and this is perhaps just an omen of more bad news to come.

(image from http://www.nytimes.com/2013/09/11/technology/apple-shows-off-2-new-iphones-one-a-lower-cost-model.html)

CHEN, B. (2013, September 10). Apple unveils faster iphone, and a cheaper one, too. Retrieved from http://www.nytimes.com/2013/09/11/technology/apple-shows-off-2-new-iphones-one-a-lower-cost-model.html

Bill Gates has been reported of having donated $750 million (US Dollars) to fight AIDS, TB and malaria. This act of donation comes to show how wonderful, caring and loving man Bill Gates is, but is this all there is to it? By donating a huge amount of money, Bill Gates can win the attention of the public and get free advertisement. In fact, it is a great move as a marketing strategy, although quite costly. Nonetheless, the amount of the donation is only a small portion of money he has earned. So in that sense, a huge amount of money for us may not be much to Gates. Also, whether Gates has intended it as a marketing move or not, he had to invest certain amount of money into it regardless. The blog posted in Computer World states that his donations were his application of return on investment analysis to philanthropy. But in the end, nobody knows what his real aim is behind the donation. Then, let us retain faith in humanity by believing in the good.

(Image from http://www.cnn.com/2012/01/26/health/switzerland-gates-donation/)

Chapple, I. (2012, January 26). Gates donates $750 million to fight aids, tb and malaria. Retrieved from http://www.cnn.com/2012/01/26/health/switzerland-gates-donation/

Many large firms do or pretend to carry a shared value in its business model whether as a part of its responsibility to contribute to the society or as a part of its marketing campaigns. The article on Timberland’s attempt to show its opposition to child labor and its effort to improve work conditions of the employees appears to be the latter case. The way Timberland did so was by enabling local cluster development. Timberland worked outside of its firm to provide secure environment work space for its employees by having the All-China Women’s Federation to provide daycare service and education for its employees’ children. In India, the firm invested money on water projects so that not only its workers, but also other people in the city could have fresh, clean water supplied.

Timberland made a great move of having its shared value known to the world through this strategy. The return may not be so evident in the short-run, but the company’s shared value will certainly differentiate it from other shoe manufacturers. Customers will be assured that their shoes are made by the firm that “cares”. Also, assisting with the improvements of life standards of the workers will certainly  bring long-term returns to the company.

One of the blogs I found discussed about Timberland’s sustainability project of planting two million trees in Haiti. This blog post just comes to show how both Timberland’s brand positioning as a eco-friendly firm and its marketing strategy are working.

(image from http://www.theguardian.com/sustainable-business/timberland-better-life-factory-workers-children)

Kaye, L. (2012 , July 5). How timberland is building a better life for factory workers’ children. Retrieved from http://www.theguardian.com/sustainable-business/timberland-better-life-factory-workers-children

I found this interesting article discussing the value of time in financial aspect. It discusses how our every action is costing us money or sometimes earning it. This article is directly tied into the notion of time value of money, and I must say that this article is oversimplifying the matter.

Of course, our every action can be calculated in the form of numbers, but we must remember that they also possess intangible value. Although the article discusses how brushing your teeth costs $1.22 (Australian Dollars) and boiling and eggs costs $,2.33 it does not take into account of its future value. For instance, the cost of brushing your teeth is a minuscule amount compared to what you must have paid once your had gone rotten. Also, apart from its financial value, the act of brushing your teeth will help you maintain your oral health and have positive, psychological effect on you. Thus, even though the article argues that time is money and thus time must not be wasted, it is premature to determine if certain action (or cost) is worth it before figuring out its future value. Jim Lorenzen has also written a blog post on the time value of money. He also agrees that figuring out the value of time is important before making decisions.

(image from http://www.thelivingwine.com/blog/whats-the-right-way-to-brush-your-teeth/)

Padley, M. (2013, June 26). Cost of a cold one can really burn. Retrieved from http://www.smh.com.au/money/planning/cost-of-a-cold-one-can-really-burn-20130625-2otfw.html

Reward systems are imperative for companies to motivate their employees and ultimately drive the company forward. They often focus us promising promotions, increasing salaries and recognizing their works one way or other. However, Google takes a different approach. They provide a cafeteria with free gourmet food and snacks to its employees.

This reward system sounds bizarre in the beginning, as employees are being rewarded with or without making an achievement. They are simply being rewarded just for going to work. However, this kind of reward system may actually be the real motivators of the workers. This unconditional care towards its employees not only move the employees, but also ultimately nurture them. What we notice in many successful companies is that its employees like what they do and are passionate about it. In other words, rewards such as promotions and salaries come second in their priority list. Then, why is Google adopting such reward system? The reason is that having the unconditional reward system of providing a cafeteria and free food will provide employees with comfortable working space that they can grow fond of. It is to aid them in liking what they do and liking where they work rather than luring them to work.

As this blog suggests the goal of Google is to “explain to the employee why he or she is valuable, and to select rewards that are thoughtful”.

(image from http://www.businessinsider.com/google-employee-favorite-perks-2013-3)

Business Insider. (n.d.). Google employees reveal their favorite perks working for the company. Retrieved from http://www.businessinsider.com/google-employee-favorite-perks-2013-3

I recently read this article on Forbes on the five things the best managers do and don’t do. The article by Harvard Business Review (HBR) lists various factors such as being broad-minded and diplomatic, but I noticed that this article conflicted with the article we read as a class on what makes a good manager. The latter article lists that the need for power is what ultimately makes a good manager rather than the need for achievement. However, the former article states that both factors, the need for power and achievement, must be emphasized.

I would personally like to believe the notion Forbes article came up with, that the good mangers are driven by hunger for power and achievement. Nonetheless, this sounds to be too idealistic at the same time. Of course, it would be splendid for managers to have both of the characteristics, but it will eventually come down to one factor gradually outweighing the other. Then, recalling the HBR article, it will be the manager with the need for power that will be remembered as a good manager. As we are considering what makes a good manager not an ideal manager, it is ultimately power that drives one and his firm forward.

(Image from http://www.forbes.com/sites/victorlipman/2013/09/09/5-things-the-best-managers-do-and-dont-do/)

Lipman, V. (2013, September 9). 5 things the best managers do and don’t do. Retrieved from http://www.forbes.com/sites/victorlipman/2013/09/09/5-things-the-best-managers-do-and-dont-do/

Scott Cook–the co-founder of a newly rising tech company, Intuit–redefines the lean start-up strategy by stating that this strategy is not only for start-up companies. The aforementioned strategy places emphasis on communication with the potential customers and experimentation involving trial and error of the product/service. The strategy is originally outlined for companies newly entering the market, but Cook claims his firm made successive gains from following this strategy even when it had already become successful.

Cook is absolutely right for stating that lean start-up is a versatile strategy that can be utilized even by firms that are already well on its way. The benefit of using the strategy is that the firm can minimize risks by being attentive to customer’s needs. This benefit is a factor all companies desire whether a start-up firm or not. In that sense, starting and maintaining a successful business is essentially the same; we all want to minimize risks for a bigger gain. Although the Harvard magazine article mainly regards this strategy to be intended for start-up companies, it is imperative to revise our preconception of the strategy for even successful companies fear risks.

(Image from http://lean.st/)

Nobel, C. (2013, February 25). Lean startup strategy not just for startups. Retrieved from http://www.forbes.com/sites/hbsworkingknowledge/2013/02/25/lean-startup-strategy-not-just-for-startups/

A new global brand emerged as the first spot on October 2nd 2013: Apple. Apple’s reputation has been skyrocketing these past couple of years with its highly popular electronics such as Macbooks and iPhones. Apple was able to maintain stable proportions of both laptop and phone markets, and position themselves as one of the most global company. In this day and age, where there are so many competitors in each industry. This is quite a feat, beating Google and Microsoft in terms of brand value. Although many companies tend to find difficulty in finding the “right spot” for brand positioning, Apple shows no signs of any difficulty. In fact, in phone market, Apple was able to outshine its perhaps biggest competitor, Samsung, as seen in my peer’s blog post. Also, this external blog on Fortunes illustrates the reasons behind Apple’s success, raising brand strength as one of the factors.

Nanji, A. (2013 , October 2). Most valuable global brands: Apple, google, and coca-cola. Retrieved from http://www.marketingprofs.com/charts/2013/11768/most-valuable-global-brands-apple-google-and-coca-cola

This article discusses the accounting fraud that had been just scandalized on September of 2013. A former Singapore banker is held guilty for causing the accounting fraud of $1.7 billion for Olympus Corporation, the company in Japan known for its great camera products. Many companies have already been reported of accounting scandal such as Xerox and AOL, but now it is Olympus who is pleaded guilty. Considering the fact that Japanese economy was on decline for the last few years (refer to this link), it may be no surprise for some that Olympus is now associated with the idea of accounting fraud. In fact, as the quote from my peer’s post goes, “Don’t be surprised when the next big news is related to accounting fraud.” Although the reality remains that accounting fraud has occurred in Olympus, other businessmen must not take this issue as another company’s “business”.

This external website lists some of the big companies that faced corporate scandals. You would be surprised that you will notice many of the companies’ names listed on this website. Would you add Olympus Scandal onto this list?

Vaughan, B. (2013, September 18). Ex-banker pleads guilty in olympus accounting fraud. Retrieved from http://www.reuters.com/article/2013/09/18/us-olympus-banker-plea-idUSBRE98H0YE20130918

Businesses strive to make profit, but they must do so within the boundaries of business ethics. NY Times, however, reveals that this common, yet significant rule, is not always followed by all enterprises. It has recently been revealed that health apps that are intended for the benefit of consumers pose serious privacy risks for users. The nonprofit Privacy Rights Clearinghouse and the California Consumer Protection Foundation found that “more than a quarter of the free apps and 40 percent of the paid apps” are found to be equipped with no privacy policy at all. Njie, who did the technical analysis for this research, adds that it is very easy for third-party services to steal information that health apps transmit. This means that consumers are vulnerable to having their private information, such as their name, address, weight and even their daily lifestyle, leaked to advertising companies. The protection of privacy must, of course, be respected and protected from the viewpoint of business ethics, let alone the universal code of ethics. Nonetheless, in this instance, there is not much one can do to prevent the leakage of information once he shares his personal information with an app; personal information simply becomes a public data once it leaves the hands of the owner. This article, once again, reminds us that consumers in this day and age must always be aware, if not cautious, of potential dangers that may lie in trivial acts such as using an app. Business ethics may be a righteous judge, but it is ultimately a powerless lawyer.

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CARRNS, A. (2013, September 11). Free apps for nearly every health problem, but what about privacy?. Retrieved from http://www.nytimes.com/2013/09/12/your-money/free-apps-for-nearly-every-health-problem-but-what-about-privacy.html?ref=business