Steven Courtney's Blog

I fully agree with Chole Kim’s idea that Tim Horton’s should work on a global expansion plan. In the multicultural globalized world in which we live it is only rational to expand to the far reaches of the world. Look at the evidence from other businesses. Take, for example, the Chinese food industry in Canada. This industry thrives not only on people from China but all people within Canada. The same will happen with Tim Horton’s. Canadians cover all corners of the globe and would love to see a Tim Horton’s to make the selves feel like there at home. Market demand will be provide by the local people of the countries that Tim Horton’s moves into. That being said this expansion plan makes vitally

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clear the importance of market research. Few cultures around the world thrive on coffee the way that North America does. This makes it extremely important for Tim Horton’s to provide goods that the local people will find enjoyment indulging in, such as perhaps tea. They can learn a lesson from McDonalds serving of alternative in place of beef in places such as India. This shows effective market research that produces a profitable, globalized company.

–Tim Horton’s In Any Language:

It may at first seem strange to see the word “entrepreneurship” paired with anything other the “money.” Many modern entrepreneurs are trying to change this prospective. Social entrepreneurs are using the power of business strategies to realize their

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philanthropic goals. An amazing example of social entrepreneurship is London based Bikeworks. Bikeworks is working towards fixing the environmental, economical, a health related problems in London by getting people out and biking.

“Inclusive cycling for all, encouraging the health and wellbeing of everybody in the community we live”

           –Bikeworks Vision

They offer cycle training as well as bike repairs and courses to allow people to gain enjoyment out of biking. This in turn will get people out of their cars and helping the environment at the same time they help themselves. In addition they also help the needy by being a not for profit operation, set only on achieving their social goals. They were recently name best social enterprise by PWC Private Business Awards 2011. Social entrepreneurs inspire and help the community around them increasing the general wellbeing. The spill over effect of such an operation is hard to properly put into perspective but it is clear that many are influenced by such positive action.

–Bikeworks Sparks Program:

Denmark has levied the world’s first “Fat Tax.” The tax is $2.90/Kg implemented on foods with a saturated fat content of over 2.3%. I had to question the rational of the implementation of such a tax and in contrast with Akash Patel’s post, I fully agree with this tax. There are many rational reasons that can be seen in support this tax. From a purely economic standpoint there is great deal of rational for taxing a high fat contentin food. Look at

http://www.nofinishlineblog.com/2011/10/denmark-slaps-fat-tax-on-food-what-should-we-do.html

the of the benefits principle. People who consume foods with high fat content are at higher risk for the need to use the medical services that are provided by the tax payers. Also taxes force a reduction in market activity. This in turn produces a dead weight loss within the market because of people force out of the market. At first this may seem like a negative but a reduction of activity in a market that harms people can actually be a good thing. This tax will effectively reduce the amount of fatty foods consumed and move the tax burned onto those who still choose to consume them as opposed to the general public. Food sin taxes work.

“Sustainability” and “Oil” are rarely used in the same sentence, however when you look at the company Cenovus that’s exactly what comes to mind. They are one of the most sustainable companies in North America and they work in one of the most looked down upon industries in the world. Again this raises the question of business responsibility and ethic’s. Milton Freidman wrote an article on how “The Social Responsibility of Business is to Increase its Profits.” I’m not going to say I agree with him outright but he does have some valid points. Is a company being sustainable just to appear the way the public wants them to therefore increasing demand for their product? It is impossible to say, even with a company like Cenovus. In an industry that so often gets more than its fair share of scrutiny, there’s nothing better than to look like you are different, sustainable even. This will help boost profits within the company and the ill-fated “social-responsibility” is more or less an elaborate advertising scheme to ensure profitable growth of the company. I guess the real question is: does doing the right thing for the wrong make it the wrong thing?

*Cenovus cooperate responsibility page

–“A different Oil Sands”

When it comes to Groupon’s accounting methods the term “controversial” is a little soft. To miss report a $113.9 million loss as an $80.1 million profit is nothing short of criminal. ACSOI accounting is a highly misleading non-GAAP  method that allows reporting of profit without taking into account many factors including stock option compensation. Now that we have a clear picture of Groupon it isn’t pretty.

So what happened here? The answer is a failing business model.  I fully agree with Rob Wheeler’s blog in which he states that a “businesses should become profitable before they become big.”  Groupon has some how gotten the idea that they can scale up to size and then become profitable but truly lacks the proper business model to do so. The fact that Facebook was successful with this method means nothing*. Facebook becomes more beneficial to its users the more of their friends join meaning that they can produce profit after they become large. So far Groupon have had $1 billion of investor money to spend, but where do you go when that dries out? The most likely outcome at this point seems to be to fold in on themselves.

*Flaws in Facebook’s business model 

**Article: More Trouble for Groupon IPO

***Photo reference 

It almost seems like a bad joke on Waterloo, ON based Research in Motion (RIM). The outage on their BBM and e-mail services within days of Apple’s release of the revolutionary iPhone 4s is catastrophic. The new iPhone is the first one to offer an equivalent service to the BBM and with what has happened the already struggling RIM could be in trouble. One of the most important things in business is how a company deals with a crisis situation. RIM’s answer? Free apps. First of all the biggest customer base for Blackberry is large businesses how really couldn’t care less about free apps, they also get 1 month of technical support. Is this enough? The answer is clearly no.  Apple and Android

Stock Price 2011*

OS’s have started to take the corporate market away and RIM must do more to appease customers or they will lose them. On Tuesday RIM announced a new synchronized operating system for tablets and smartphones, the BBX. It almost seems like too little too late. With this recent blunder costing around $26 million** and the stock falling almost 68% since February RIM is going to need some major changes to stay competitive in the modern smartphone world.

*Cost Analysis

** Service now back online

— Blackberry Update last week (is this enough):

Steve Jobs, co-founder of Apple, has tragically died at age 56*, days after the release of the iPhone 4s. The news has shaken technology lovers everywhere. Apple’s unparalleled technological advances under Jobs have changed the very way the world deals with technology. Jobs stepped down a month ago but his death truly begs the question: what’s next for Apple? There is at least two years of product in the pipeline and a secure hold on much of the market.**What happens when this pipeline runs dry?  There really are only two options: either Apple finds a way to continue to create the innovation that Steve Jobs strived for or allow themselves to slide from the top without his leadership. So now all eyes turn to new CEO Tim Cook, a man raised for the position over the last 5 years by Jobs himself. There is a great deal of confidence both from in and outside the company that the team Steve Jobs developed has the ability to continue to produce the cutting edge technology that deserves to hold the Apple name. In the past Apple proved itself incapable of true success without Steve Job so in truth only time will tell.

Apple Growth Booms with Jobs Return**

* The Life of Steve Jobs

**Article: The Street Journal on Apple

Amazon recently announced the launch of their new Kindle Fire tablet. Do they really have a chance in a market that last year was 83% controlled by Apple?* What the Kindle Fire

iPad 2 vs. Kindle Fire***

really will control is the budget market with a list price under $200 (Versus over $500 for the iPad 2). If you’re someone who needs all bells and whistles in your tablet then there really is no contest, but for someone who just wants something functional and affordable the Kindle Fire is going to be hugely attractive. In a market where other tablets have failed miserably, Amazon has a huge point of difference. There is a great number of people will think if a few cameras and microphones are worth over $300. Also going with the name “Kindle” Fire shows that Amazon is willing to risk and expand their hugely successful E-reader brand. With their own site that is visited millions of times a day they already have a huge leg up on advertising and will get into peoples mind as the discount tablet.** With 95,000 orders on the first day it looks like Apple finally might have some competition in the tablet market.***

*Article: Apple iPad to Lead Tablet Market Share in 2011

**Article: Amazon’s Kindle Fire: what the analysts say

***Picture reference 

–Kindle fire:

It’s no secret in the business world that happy employees will improve your bottom line. People with high job satisfaction are more dedicated to the cause and will improve not only customer service but the company as a whole. How do you achieve employee happiness? One of the most common ways in modern management is employee empowerment*. People are smart rational creatures who want to think for themselves. The mundane hierarchy of old school management is a thing of the past. Employees want the freedom to make decisions so that their job is both challenging and rewarding. Take, for example, WestJet there employee empower style of management has done wonders for the company**. Empowerment mixed with the profit share, meaning employees also have a direct stake in the company, give incentive for employees to do all they can to produce profit for the company. This is a large part of what accounts for WestJet’s success. Looking to their biggest competition the importance of this is clear. Air Canada`s employees were set to strike until they were forced to settle but it still shows dissent in the company***. WestJet’s employee empowerment management causes for huge gains within the company.

* Article: Employee morale firm, says WestJet

** Article: Air Canada Flight Attendants Vote 98% in Favor of Strike

Ethics is always a blurred line. In some cases however there is a clear cut example of an ethical breach within a company. This was the case with the recent phone hacking scandal by News of the World* newspaper. The scandal arouse when it was made known to the public that N.o.W. was hacking the phone of a murdered teenager, Milly Dowler, in addition families of other murder victims, British soldiers and celebrities**. What are the costs of such actions? From an ethical standpoint it is not hard to determine the many issues that arouse from the scandal. First N.o.W. was in heinous violation of privacy rights. Furthermore they had no moral opposition to further disheveling families that is already under extreme distress. Apart from being highly unethical what N.o.W. did was illegal and caused the 168 year reign of the N.o.W. newspaper to come to a sudden end and was followed up by several arrests. It raises the question, what means can you use to gain the best story? This is a question of ethics that each media organization must answer for itself***.

  *From now on referred to as N.o.W.

**Source: BBC news

— Video link: information on  Milly Dowler Case and Media Ethics