Since its inception in 1945, the United Nations has become a medium for individual countries to address key global issues through collaboration. Although greater funding will ensure that the UN has the resources to take greater action, it is possible that smaller, localized issues may be ignored. This creates a gap that can be filled with social entrepreneurship.

Image from http://www.povertycure.org/media/blog/what-is-a-social-entrepreneur-and-why-do-they-matter/

Like the UN, social enterprise and initiatives such as the Arc are dedicated to addressing challenges encountered by communities around the world. By providing individuals and communities with the knowledge and infrastructure to tackle these issues independently, social entrepreneurship offers solutions that are sustainable in the long term. Because these communities are given the freedom to approach problems creatively, they can become self-sufficient and develop strategies to address future challenges.

Social enterprise and the United Nations must work jointly to confront the issues of today and tomorrow. Relative to the size of the UN, social enterprises are much smaller. They also have fewer resources, which prevents them from tackling more complex issues that impact larger regions and/or multiple countries. I believe the United Nations should focus their efforts on larger issues such as disease and famine. However, the UN should guarantee that social entrepreneurs have the ability to access new locations and offer solutions to previously unaddressed problems. This can be done by providing them with appropriate funding and proper resources.

Sources:

http://skollworldforum.org/about/what-is-social-entrepreneurship/

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

In an article published by the BBC, call centre workers in the UK were fined for taking washroom breaks, even though they were given large amounts of water to “lubricate their voices” for the job. Employees are the foundation of call centres, as they are the ones who directly communicate with customers. However, the actions taken by the unnamed call centre in the article might be counter-intuitive. I can see the reasoning behind these actions; by deterring employees from taking breaks, the call centre can take more calls and reduce the length of wait times. Although the call centre will be able to assist more customers, the quality of customer service will decline as a result of these measures. Employees are clearly going to be distracted by their desire to visit the washroom when taking calls, but the inconsiderate nature of these rules may also reduce their motivation to deliver better customer service.

Image from http://www.ibiblio.org/Dave/Dr-Fun/df200201/df20020118.jpg

I feel that offering high quality service is more important than providing a greater quantity of service. From my own observations, I have heard countless rants and stories about poor customer service from call centres. Given the nature of the Internet and social media, scathing reviews and heated discussion about these bad experiences can rapidly circulate, negatively affecting a company’s public reputation. The call centre mentioned in the article should re-evaluate their “toilet tax.” In my opinion, preventing employees from going to the washroom does not foster a positive working environment and organizational culture where employees can be comfortable and excited about their job. This can directly influence the amount of effort and enthusiasm employees put into their work, which can be very noticeable to customers over the phone.

Sources:

http://www.bbc.com/news/uk-wales-politics-29932505

Image from http://www.theglobeandmail.com/report-on-business/life-after-blackberry-canadas-innovation-vacuum/article13825154/?page=all

Danny, a classmate of mine, recently published a blog post outlining Lenovo’s interest to purchase and take over BlackBerry. In the blog, Danny stated that partnering with Lenovo would be an advantageous move for the company. I agree with Danny’s viewpoint completely. In recent years, BlackBerry was unable to maintain a strong position in the mobile phone industry, due to increased competition from Apple and Android devices. By aligning with a large, multinational company, BlackBerry will have access to new technologies and markets. Ultimately, this provides BlackBerry with the option to further innovate and differentiate their product, along with opportunities to establish a stronger presence in the international market.

After reading a couple more articles discussing this topic, I discovered that the Canadian government is opposed to the foreign takeover of key Canadian businesses. In fact, Prime Minister Stephen Harper described Lenovo’s bid for BlackBerry as “hostile,” and argued that BlackBerry should “grow as a Canadian company.” Although large companies are encouraged to establish strong relationships with governments, this should not compromise the organization’s ability to make autonomous decisions. Personally, I believe that government intervention in business should strive to achieve a balance between national and corporate interests. The Canadian government’s intention to keep BlackBerry’s technologies a Canadian commodity is particularly alarming, as it essentially restricts BlackBerry from pursuing certain prospects (such as a takeover from Lenovo) that can potentially lead to greater prosperity in the long run.

Sources:

http://www.theglobeandmail.com/report-on-business/rim-should-grow-as-a-canadian-company-harper/article544008/

After reading Cisco’s blog, I was astounded by their commitment to corporate social responsibility. From providing affordable IT education in North America to disaster relief in Asia, Cisco supports a diverse range of programs and initiatives that positively impact and empower communities around the world. However, one particular non-profit that Cisco partners with, Good World Solutions, stood out to me because it demonstrated that specialized areas of business, such as IT, are capable of creating shared value in their own unique ways.

Image from https://www.honesttea.com/blog/a-clear-vision-of-fair-trade-impact/

In developing countries, a lack of technology strains the relationship between workers and management. To address this issue, Good World Solutions has developed a mobile platform called Labor Link that improves company-wide communication. Just by using a mobile phone, Labor Link allows workers to respond to survey questions designed by management. Not only does this provide management with real-time data that can be used to analyze and improve the business, it finally offers the ordinary employee with a voice in the decision-making process.

As someone who finds social entrepreneurship interesting, Good World Solutions creates shared value with IT, an element of modern business that was discussed in a recent lecture. Although the collection and analysis of data will undoubtedly lead to changes in the supply chain, the transparency of this information ensures that management remains accountable and does not take advantage of its employees. Since many of these companies are suppliers for larger firms, reports suggesting unethical conduct compel these businesses to respond to employee concerns, so that a reputable image can be presented and upheld. Ultimately, Labor Link facilitates changes in organizational structure that can improve the well-being of thousands of workers.

Sources:

http://blogs.cisco.com/csr/csr-partner-good-world-solutions-wins-social-entrepreneurship-award/

http://csr.cisco.com/casestudy/good-world-solutions

Understanding how to motivate employees is an important part of performance management. To stimulate productivity, many companies actively reward exceptional employees for their work. Instead of having a conventional employee reward system, Costco’s business model embraces a reward system that motivates employees in an unorthodox way.

The White House praised Costco’s business model, stating that “increased productivity, better morale and lower turnover rates” was attributed to the company’s commitment to its employees. Image from http://www.usatoday.com/story/money/business/2014/01/29/costco-wages-walmart-federal-minimum-wage-obama/5029211/

Unlike other companies, Costco does not provide incentives to employees after a given period of time. Alternatively, all Costco employees receive competitive wages, a benefits plan and other bonuses. This essentially removes the limitations of reward systems we are accustomed to seeing. In Steven Kerr’s article, “On the folly of rewarding A, while hoping for B,” Kerr states that many reward systems are poorly conceived because they actually reward undesired behavior. Employees are able to find and exploit shortcuts to earn rewards, which can actually prevent company-wide goals from being achieved in an effective and timely manner.

By rewarding employees before, rather than after, Costco employees are immediately more engaged, or committed to the company they are working for. I believe this particular type of reward system makes it easier for Costco to successfully set expectations for its entire workforce. Costco’s employees are more likely to embrace the company’s core values and make a contribution that benefits the organization as a whole, since they know that their role in the company is valued. Additionally, the above average wages that Costco employees are paid sets a benchmark that encourages stronger performance, which justifies Costco’s decision to spend more on its workforce.

Sources:

http://business.financialpost.com/2014/10/30/a-stick-and-a-carrot-at-the-same-time-why-costco-pays-twice-the-market-rate/

http://www.ou.edu/russell/UGcomp/Kerr.pdf

Image from http://www.brandchannel.com/home/post/2013/08/02/Netflix-User-Profiles-080213.aspx

After reading a blog post from my classmate, Peter, about declining growth from Netflix as a result of a higher monthly subscription rate, something that immediately came to mind was Netflix becoming more vulnerable to disruptive innovation.

Often times, Netflix is portrayed as a disruptive innovator in the video rental industry. Netflix was a key pioneer of subscription-based online streaming services, which ultimately contributed to the closure of video rental stores such as Blockbuster and Rogers Plus. Netflix was able to offer a similar service that was far more convenient, as customers were able to access the content they wanted without having to leave the comfort of their own home.

I agree with Peter, who said that customers are more likely to jump ship following an unexpected increase in price. However, I believe Netflix should re-evaluate its subscription rate because popular TV networks, such as CBS and HBO, are planning to launch their own streaming services. Unlike Netflix, these networks can distinguish their service with popular television series they have distribution rights to, such as Game of Thrones. For Netflix, this might be a warning sign for things to come, as the television industry’s interest in online streaming can impact Netflix’s long term success. By making exclusive television programming available on-demand, streaming platforms for these TV networks can be tailored to viewers that only want access to a specific selection or genre of shows. If these services are priced competitively, Netflix might eventually become a victim of disruptive innovation, as customers have less incentive to switch back to a service that is generic and relatively more expensive in comparison. It seems that Netflix may now be in the same position that Blockbuster and Rogers Plus was in several years ago.

Sources:

http://www.dailyfinance.com/2014/10/16/netflix-earnings-monthly-rate-hike-cuts-subscriptions/

http://www.hollywoodreporter.com/news/michael-wolff-hbo-cbs-streaming-742721

Dasiqox Tribal Park

Even though sustainable development is of great interest to large businesses across Canada, it is alarming that many companies are still engaging in destructive business practices like deforestation. According to an article posted on rabble.ca, Canada is the world’s leading nation in terms of overall deforestation, with 21% of all global forest loss taking place in Canada since 2000.

The scale of deforestation in Canada reveals that conservation efforts are becoming more unattractive. This issue is exacerbated by rising development in many Canadian industries, such as oil and gas. However, businesses need to ask themselves if the ends justify the means. Even though land development offers new opportunities for profit, companies need to consider the lasting consequences of their decisions. For instance, the land for Dasiqox Tribal Park, aimed to protect “cultural, heritage and ecological values,” includes the site of a mine proposed by Taseko Mines Ltd. By engaging in a long-winded dispute concerning the use of this territory, Taseko is wasting valuable time and resources on a proposal that might not even get approved. By damaging the natural habitat, wildlife becomes endangered and the cultural and historical significance of the area gets compromised. Given these external factors, Taseko needs to decide if this project is really worth the high cost that comes with it.

However, I believe businesses should take advantage of the new opportunities presented by these external factors. For instance, Taseko could offer employment and infrastructure for First Nations groups in the area. By forging these new relationships, Taseko and these aboriginal groups could find common ground that benefits both parties.

Sources:

http://www.vancouversun.com/news/metro/Unilateral+park+declared+Tsilhqot+includes+Prosperity+mine/10192766/story.html (includes image)

http://rabble.ca/columnists/2014/10/canada-now-worlds-leading-deforestation-nation

Image from http://www.freshbooks.com/blog/tag/pricing-model/

In a study recently conducted by Simon-Kucher & Partners, a global strategy consultancy, less than 35% of planned price increases are actually implemented by companies. This rate dropped from around 50% in 2012.

Within a company, managerial accountants play a central role in the decision-making process. After our lecture on managerial accounting, I was able to connect the findings of this study with the responsibilities that managerial accountants bear within their respective organizations. According to the study, companies are failing to reach target profits for new products and struggling to increase prices on existing products to generate a higher return. This is an issue that managerial accountants would be familiar with. To maximize profit, products and services must be priced appropriately. In order to do this, multiple factors including competition, industry trends and costs must be thoroughly examined. Managerial accountants must collaborate with and unite other departments in the price determination process, so that essential information and data can be attained for further analysis. Only then can the viability of a pricing decision be determined.

In this particular example, businesses are engaging in ‘price wars’ with competitors, which makes planned price increases difficult as companies are unwilling to risk their current position in the market. This rationale for reneging on a price increase has considerations concerning strategy and positioning. In response to the scenario above, a managerial accountant would likely have collected data about its close rivals to conduct a competitor analysis, so that the tactics of their direct competitors can be understood. Ultimately, this provides management with the information and tools necessary to make a new strategic decision (like holding back on a price increase) that can potentially adjust company activity.

Source:

http://www.retailtimes.co.uk/companies-fail-successfully-position-new-products-market-new-study-reveals/

Image from http://www.shephardmedia.com/news/uv-online/cassidian-uses-mini-cooper-cars-test-mobile-ip-nod/

Repeat purchases in the automotive industry – this is a concept that I imagine many of us would find difficult to grasp. In a blog post written by Jackie Huba, MINI Cooper is employing a unique, yet effective strategy to increase sales. Rather than target individuals who do not own one of their vehicles, MINI Cooper directs its marketing initiatives towards current customers in order to generate brand loyalty. Surprisingly, this strategy was effective in generating repeat purchases from faithful MINI customers.

Why did this strategy work so well? MINI Cooper makes an effort to establish strong relationships with its existing customers. By sending merchandise to customers through direct mail and hosting large events such as MINI Takes the States, MINI is able to provide an exemplary level of service after a purchase is made. This distinguishes MINI as a value-driven business. Customers captivated by MINI Cooper’s strategy provides the company with several key benefits, ultimately giving MINI a competitive edge. Loyal customers are more open to providing MINI with important feedback and information, and promoting the company through word of mouth. I would argue that this strategy is just as effective as targeting new customers.

Another thing to note is that MINI Cooper’s vehicles are much more affordable in comparison to competing products sold by other luxury car companies. I believe this is the main reason why MINI Cooper is actually capable of securing repeat purchases from current owners. Because MINI Cooper holds this cost advantage in the luxury car market, MINI Cooper’s strategic decision to engage existing customers complements their position perfectly. Competitors such as Tesla also offer strong post-purchase support like MINI, yet the price of their cars prevents them from getting repeat sales altogether.

The Television Bureau of Canada recently pulled a commercial advertising Science World British Columbia from television, after claiming that the ad featured an excessive amount of violence. In order to explain to viewers that “optimists feel less pain,” the commercial whimsically depicts a man stepping on a nail, being set on fire and hit by a school bus.

This commercial accurately illustrates a trend that I am seeing more often in marketing today. Advertisers are more willing to create ads with shock value and provocative imagery, knowing that the controversy generated from their advertisement will attract more attention. With science being such a broad topic, the agency that scripted the Science World commercial could have produced an ad that was completely different. However, they purposefully chose to create a commercial with a controversial plot line that had a greater chance of being taken off the air. Even though these ads are sometimes loosely related to the actual product or service being promoted, I still consider this marketing strategy to be effective due to the popularity of social media. Articles and reports reacting to the advertisement can circulate around the web, indirectly exposing the ad to a much larger audience. For the Science World British Colombia commercial, a simple Google search reveals that many online news sources have already posted articles discussing this controversial ad.

Sources:

http://www.theglobeandmail.com/report-on-business/industry-news/marketing/conquer-your-fear-for-the-canadian-cancer-society/article20164078/