Shasin Hamal's Blog

It has been reported by The Globe and Mail that Hewlett-Packard (HP) is not impressing its shareholders because of slow recovery.  Analysts are not expecting any growth in the near future.  CEO, Meg Whitman, blamed Léo Apotheker, former CEO of HP, for Hp’s market slowdown.  According to the research firm, Gartner, HP is falling behind, Lenovo Group Ltd. which is the biggest PC company by market share.  According to Seattle Times, HP’s stocks have been trading at its lowest in a decade.  Shares for HP could be falling due to Mcirosoft’s Windows 8 release.

Hewlett-Packard logo.

I agree Microsoft is a factor for HP’s letdown.  But HP should have known that placing itself in the fast paced technological industry.  Even worse for HP is that the company has not been strong at producing tablets, which are now becoming popular among customers.  Microsoft also released their own tablet, the Surface.  This drives away customers from purchasing a Windows based tablet from third party manufacturers towards Microsoft itself.  If Hp is looking to pull in shareholders, it better get in the game innovating products better than other companies.

Reference: HP’s fiscal 4Q to close the books on dismal year

 HP’s sluggish recovery fails to impress shareholders

In the blog post, “McDonald India’s “High-End” problems,” by Hardev Sidhu, he highlights McDonald’s change of plans to expand their menu into expensive food items in India.  My interest sparked in this topic having been a fan of McDonald’s myself since a young child.  McDonald’s is going to add foods in their menu that are not assembled before hand.  I agree to a certain extent of Hardev disagreeing with McDonald’s new approach to dealing business.  McDonald’s could lose the upper hand from its point of difference of having service much faster than competitors like KFC, Pizza Hut.

McDonald’s in India

But I’m sure McDonald’s will not change the whole business model of being quick on the go, cheap and tasty meals.  Even though it may not be an entirely ‘fast food’ menu, the management team should have a plan to deliver food quickly as usual. Higher income customers could be new addition from their fresh products in addition to their current customers if their cheaper foods are still available.  Introducing foods that are made after orders are given could be even beneficial to the company because many people approach this as a fresh meal.  After all, fresh meals are healthier and staying healthy is becoming the new trend and many people’s concerns. This new plan could actually lead to a win-win situation for the customers and the company.

Reference: Has McDonald’s bitten off more than it can chew?

Entrepreneurship has always been an interest of mine while growing up and still continues to be one.  For few of our Comm 101 classes, presentations about entrepreneurship were presented to our class and have inspired me to strive for my goals from witnessing entrepreneurs in real time.  Guest speaker, Wade Larson, Co-founder of UrtheCast, and Janice Cheam, the CEO of Energy Aware are inspiring entrepreneurs.  Key things I learned from their presentation were that getting investors is not easy as I always thought it was.  From the wealth of experience members of the UrtheCast team boasts, I learned that hat building a team of reliable partners is essential to running an enterprise.

Words linked to entrepreneurship.

What really interests me about entrepreneurship is that one can make something extraordinary out of nothing or even just from a thought and possibly revolutionize the world.  The fact that entrepreneurs provide jobs, and grow the economy is also a factor that drives me to be a part of the entrepreneurial community.  Going through many websites of this topic, I found one that may interest my classmates and readers by getting tips and advice from successful entrepreneurs in this website.  Few entrepreneurs,  I look up to are Gurbaksh Chahal, Richard Branson, Steve Jobs, and Mark Zuckerberg.

Recently, a Sauder BCom grad, and currently the CEO of Energy Aware Technology, Janice Cheam, talked to Sauder’s Comm 101 classes about her entrepreneurship experience.  The Power-Tab In-Home Display provides information wireless technology about one’s use of power consumption, and how much they are being charged.  This is a great product for the market because it helps reduce energy consumption by giving consumer’s information about their energy use, and allows them to save money too (something most including me love).  In my opinion, a product like this that helps reduce energy consumption is great for incurring profit because of the demand in product such as nowadays with the heated topic of excessive use of energy.  Selling Power Tabs to electric utilities in Australia, USA, and Scandinavia is a smart operational tactic as it opens up much more customers than only through BC Hydro in British Columbia, which she has already contracted with.

The Power Tab

In Ravjot Sandhu’s blog post “Energy-Aware and Smart Meters?” he mentions an interesting point of smart meter hacking that could make customer’s reluctant to purchase the Power Tab.  But then giving it a second thought, how many people will really hack your smart meters, and what incentive could they possibly be granted for such a deed?  Nonetheless, it is a threat to consider.

Reference: Sauder BCom graduate develops tool to save energy at home

The Power Tab In Home Display

After Microsoft purchased Skype for $8.5 billion in 2011, it only makes sense to shut down Microsoft’s Windows Live Messenger (WLM).  It was a smart move, because this move allows Microsoft to gain more market power in the competitive social arena.  Its tactic of shutting down WLM globally except for China, is even smarter because now their operating costs for the program can be converted to Skype, which is growing very popular.

Microsoft leaning towards Skype and saying bye to Messenger.

Microsoft is allowing all WLM users to transfer their contacts to Skype until the first quarter of 2013.  Converting users to Skype could be profitable for Microsoft as it opens up more customers to buy services such as land line calls.  Microsoft also incorporated Skype with Facebook which has over a billion users, of some that will probably end up opening new Skype accounts.  Customer flow can also be linked through Samsung from its latest product, Samsung Smart TV, which offers Skype on its HD TV right in the living room.  Off course Skype is also available in phones, iPods, and tablets.  In fact, Skype is also introduced for Windows 8.   An additional feature that allows access to Hotmail through Skype would be convenient for users; otherwise there is always rivals Google and its Google Talk.

Reference: Facebook Has A Billion Users and a Revenue Question

Message over: Microsoft dumps its chat service and tells 100m users to switch to Skype

Microsoft ditches Windows Live Messenger for Skype

People do not like any natural disasters.  Recently, in late October, Hurricane Sandy atrociously hit parts of the Caribbean, Mid-Atlantic, and Northeastern United States.  It also hit Southeastern, and Midwestern states and Eastern Canada with a lesser impact. According to IHS Global Insight, a forecasting firm, Hurricane Sandy is estimated to cost $60 billion.

Flooding Caused by Hurricane Sandy in New York City.

New York, the most populous city in the USA as well as one of the biggest business and financial hubs in the world, will slow down in the short term but should not be affected much in the long run.  For example, restaurants and stores will draw in fewer customers.  Due to poor road conditions, the demand for oil will lessen too, which in turn will lower the average national gas price.  Slow supply chain and operations will also cost businesses extra.  Delayed shipping and travel will slow down process for companies, and operating some parts will have to change than regular days.  Factories will be forced to cut down shifts of workers because of lower customer demand.  There is positive news for some industries though. Construction workers will be in demand to repair damaged houses and buildings.  Although, a costly and harsh hurricane, it’s nowhere close to the devastation that was caused by Katrina.

Article:  Hurricane Sandy Estimated to Cost $60 Billion

Walmart and American Express have a new prepaid card, the Bluebird, which will be available in the US next week.  Not requiring any minimum balance requirements, monthly or annual fees, or deposit fees, it is an excellent choice for customers.

Walking in Walmart with the Bluebird will be the same as going to a bank.  The cashiers will now be able to do transactions as a teller would in a bank.  The card can be used in more than 4,000 Walmarts in the US, and in any ATMs in the MoneyPass  network without any charges.  However, charges of $2 per transaction apply in other ATMs.

Walmart and American Express both benefit from the partnership.  American Express is now approachable by low income customers rather than rich ones only, and Walmart will receive customers for American Express.  Also, the “Always Low Prices” of Walmart’s is a perfectly fit motto for such a card which targets low income people.  Green Dot Corporation, a provider of prepaid cards, has their shares already drop 20% from the introduction of the Bluebird.  I won’t be surprised if customers from Target’s stores start their purchase at Walmart, and prepaid customers of MasterCard and Visa have the Bluebird in their wallets.  Hopefully, the Bluebird “flies” to Canada soon.  The difference is on!

External Links and Resources:

http://www.reuters.com/article/2012/10/08/us-walmart-amex-idUSBRE8970H520121008

http://www.ottawacitizen.com/business/Mart+Amex+take+banks+with+priced+debit+card/7359935/story.html

http://localtvwiti.files.wordpress.com/2012/10/wal-ex.jpg?w=400

http://abcnews.go.com/images/Business/ht_bluebird_card_jp_121008_wblog.jpg

Future Shop? Yes, one store that we all think of when it comes to electronics. Laptops, desktops, home theater systems, PS3 games, etc. You name it…it’s all there.  When it comes to buying something new, everyone gets all excited.  I sure was when I bought my first iPod touch back in 2008.  While purchasing the iPod, the sales associate  offered me warranty which he made sound totally worth my $60. The warranty would replace my iPod on the spot, at the counter,  if it had any glitches , battery life problems, or if for some reason it was not working. Wow…what a deal! Being quite the new product back then, and having heard some stories about its battery life, I bought it.

6 months in of the 2 year warranty, my iPod’s volume button stopped working.  So as per the salesman’s advice, I went to Future Shop and took it for a replacement. I definitely did not get the “warranty coverage” he had told me of. Instead, the iPod would have to be sent to the Future Shop factory first, which would take 4-6 weeks to get it fixed. No one told me this when I bought the warranty!

The sales associate who lied, and sold me the warranty and iPod surely made his commission.  But made one VERY ANGRY customer.  If you’re planning on buying an iPod with warranty, the Apple store would be your best bet.

Target bought 220 Zellers stores and is now expanding into Canada.  Target is the second largest discount retailer behind Walmart in USA.  Target sells clothes, food, furniture, drugs, sporting goods, electronics, and almost everything you can imagine of for low prices.  Reports made by Barclays Capital have assessed that Target’s arrival in Canada could impact retailer stores such as Walmart, Canadian Tire, Sears, Old Navy, etc.   Many retailers sell nearly the same products as Target, but those retailers, for example Canadian Tire does not sell the same products as Target.  Also, Target sells their products at a cheaper price, which attracts many more customers.  It would be smart for Target to open stores near areas where families have low to average incomes instead of opening stores near North Vancouver.   For example, in Canada 42% of Old Navy stores will be within 1 km of Target, which will threaten Old Navy’s sales because clothes are also sold in Target.

Having wiped out much of Zellers already, Walmart will be Target’s main competitor because of the similar variety of products and pricing that both offer.  Establishing stores in the steady Canadian economy opens up many possibilities for Target to gain profits. Their lower prices and adequate products are something I certainly won’t want to miss.

External Resources:

Which Canadian retailers are most at-risk with Target’s Canadian debut?    

http://www.vosizneias.com/wp-content/uploads/2009/10/ta5.jpg

Having a degree in business will help you land an average job in the business world but it won’t make you the ‘rich business monster’ that most wish to be.  However, it may help you climb the corporate ladder.  Take a look at Sir Richard Branson  .  He’s a high school drop out at the age of 16 and has managed to place #255 in the Forbes List of Billionaires   as an entrepreneur having a net worth of $4.2 billion through hard work.

Furthermore, Gurbaksh Chahal     not as world renowned, but a successful entrepreneur nonetheless, dropped out of high school at the age of 16 to enter the online advertising market.  At the age of 18 he sold his first company, ClickAgents for $40 million, and at 25 years of age, he sold his second company, BlueLithium to Yahoo for $300 million.

What’s their secret?  It’s the motivation they have to succeed, willingness to work hard, and having passion for what they do.  One cannot work simply for money to succeed but must recognize the long term goal of creating great value.   Then money will soon follow.  A business degree may help you earn cash but does not teach values or work ethics of a successful entrepreneur.  A degree in business does not hurt but is it really worth the investment?

External Links and Resources:

Richard Branson biography – http://www.biography.com/people/richard-branson-9224520

Gurbaksh Chahal- http://about.me/gchahal

http://super-trainer.com/wp-content/uploads/2009/09/p5.jpg