Author Archives: SincereCheong

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

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Although the United Nations (UN) is resourceful in uniting the world nations and enacting resolutions for global issues as only a third-party non-governmental agency such as itself can, they do not often prioritize trivial but self-sustaining entrepreneurs in developing communities. The UN has the advantage of being an international organization which has influence over most of the world’s countries, therefore, the goals of the UN are accordingly centered around aligning each nation’s goals with each other in order to minimize conflict externally or internally.

The Arc and other social enterprises play a significant role in the wider global picture as they can fill in the gaps neglected by the UN. These initiatives encourage entrepreneurship to transform dependent communities into self-sustaining communities and economies. Even if the United Nations were fully funded, the need for social enterprises would not be diminished as these enterprises are working individually and personally with communities in order to enact effective and positive social change in the hopes of creating a sustaining economy. The ultimate goals of the UN are fundamentally different than those of social enterprises who believe in using business tools and concepts to create a social change while making one profit and sustaining a business.

social-enterprise-cloud-words

 

References:

http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/going-global/production-problems-nearly-unravel-high-end-fashion-label/article14286870/

Upward Arc

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

“Trust Karma”

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“Trust Karma”, said Microsoft CEO, Satya Nadella, at a conference in October for women in computing.

In the Grace Hopper Celebration of Women in Computing conference last month, Microsoft CEO was asked what advice he could give to a woman who was hesitant to ask for a raise. His reply sparked both outrage and immediate backlash on news outlets and the general twitterverse as he said, “It’s not really about asking for the raise, but knowing and having faith that the system will actually give you the right raises as you go along. That’s good karma. It will come back”. In the greater business world and especially the technology sector, there exists a pay gap between the genders that is not only difficult for women to cross but also frowned upon by executives who are dominantly while and male.

Satya Nadella is an influential figure in both the business world and the tech community and I am personally surprised and offended that this comment was made to discourage women from being as assertive as their counterparts are and that they are instead told to “trust karma”. It is unlikely that Nadella himself found himself as CEO of Microsoft by “having faith in the system”. Despite his public apology, I believe that this scandal will serve as a humble reminder for him and other tech executives that the overwhelming lack of diversity must be addressed and dealt with.

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References:

http://www.cnbc.com/id/102090245

http://www.cbc.ca/newsblogs/yourcommunity/2014/10/satya-nadellas-karma-advice-to-women-comes-back-to-haunt-him.html

http://www.theguardian.com/technology/2014/oct/10/microsoft-ceo-satya-nadella-women-dont-ask-for-a-raise

Vancouver’s Reluctance to Discuss the Housing Crisis

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In Luby Kletas’ blog post, Vancouver’s Expensive Real Estate, she analyzes the causes of Vancouver’s unaffordable housing market and the effects of this on local Vancouverites. I agree with the stated causes and especially with high immigration as this is a phenomenon that is also happening in London, Sydney, and Hong Kong.

The primary cause of this affliction is the high influx of wealthy immigrants who invest on the real estate and thus, inflate the local housing market. However, the decision-makers of Vancouver are not exempt from blame as there is a great need to discuss this issue and what can be done about it. One reason why this topic is generally avoided in political discussions is the use of the word racism to divert attention from the significance of the issue. There are those who argue that by discussing the increase of immigrants and their effect on the housing market, politicians are discriminating and marginalizing the minority group by further drawing attention to the detrimental effects of their arrival.

I do not agree with this sentiment and believe that action from the local government should be enacted quickly and drastically. One way that other cities have tackled a similar issue is by enforcing a tax on properties that are not lived in to prevent investors from simply buying the property and to encourage locals who have a need for the house to have the opportunity to live in it.

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References:

http://blogs.vancouversun.com/2014/06/27/why-vancouver-housing-is-unaffordable-and-what-to-do-about-it/?__federated=1

A Revolution in Movie-making?

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A decade ago, Marvel Studios did not exist but was simply a comic-book publisher. Now, seven years later, Marvel is one of the leading forces in the movie-making industry and consistently generating revenue greater than that of Fox Studios or Warner Bros. Pictures. One blog from BusinessInsider argues that Marvel’s business strategy is worthy for concern in competitors.

I agree with this opinion piece and am willing to take a step further to acknowledge not only Marvel’s business model’s current success but also its potential as ground-breaking and revolutionary. The average method previously for producing comic-book based action movies was to approach a comic book publisher, usually Marvel Comics or DC comics, and purchase the copyrights and intellectual property of an individual character. This studio would then proceed to produce a standalone movie and reap almost all the benefits with the original comic book publisher receiving little to none. When Marvel decided to create its own studio and retain creative control in the entire process, they developed a new business model for movie-making that had not been explored before and was proving to be both difficult to replicate and exceedingly successful. They now had the ability to create a universe of characters which may feature other familiar faces or co-star with each other while not being direct sequels of one another.

This way of producing movies and creating a “cinematic universe” has quickly differentiated Marvel from its competitors and proved to be an effective sustainable competitive advantage.

References:

The implementation of Transmedia Storytelling by Marvel Comics

http://www.businessweek.com/printer/articles/192489-kevin-feige-marvels-superhero-at-running-movie-franchises

Airlines’ Justified Cost Reduction

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In Jocelyn Kwong’s blog post, Comforting Profit, she condemns the behavior of airlines to reduce costs at the expense of the customer’s comfort and suggests dissatisfaction at how “the word “luxury” isn’t even associated with flight travel anymore”.

Although I understand the sentiment of luxury being a necessity in flight travel, I disagree with her condemnation and believe that these airlines are being progressive and forward in their thinking of reducing costs and yet pleasing customers. In today’s globalized society, it is nearly impossible to live one’s entire life without ever leaving one’s country. Because of the way flight travel is operated, fixed costs are significantly large and thus, may deter those who cannot afford to travel from international opportunities.

This places some people in a disadvantage from experiencing air travel; by significantly reducing costs to make an airline ticket merely include the bare minimum (which may not even include a seat), airlines are widening their customer segment by lowering the desired income of their target consumers. This will in turn increase profits considerably as more people are presented with the opportunity to travel by air.

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References: 

http://www.theglobeandmail.com/report-on-business/westjet-to-charge-travellers-for-first-checked-bag/article20598212/comments/

 

Enbridge vs. First Nations

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Many people have heard about the Enbridge project and more have a strong opinion on the controversial issue ranging from either end of the spectrum: fierce support or harsh condemnation.

This Calgary-based corporation’s negotiations are heating up with First Nations communities; although the federal government (under the Harper government) has already approved the project, it can still ultimately fail without the approval of local First Nations communities. The external factors involved in this project include Enbridge stakeholders, First Nations communities, local governments, and foreign investment in the form of the Asian market. Of these, one of the most important ones is the influence of the First Nations community as they pose a significant political barrier.

Given the recent Supreme Court case ruling that stated development on First Nations land can happen only if one of the two conditions are met: the consent of the First Nations group is granted, or the government recognizes that the development is pressing and substantial, Enbridge simply cannot proceed with the pipeline without Aboriginal support. The importance of the land as a source of food and opportunity for future generations cannot be understated as one Aboriginal leader states, “When people talk about “our land” they talk about it as their home”.

The possibility for the Enbridge project to not exist beyond its drawings is very real for stakeholders and foreign investors which would lead to a financial loss that would exceed billions of dollars.

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References:

http://www.cbc.ca/news/aboriginal/supreme-court-s-tsilhqot-in-first-nation-ruling-a-game-changer-for-all-1.2689140

http://www.vancouversun.com/news/There+will+pipeline/10122968/story.html

Surrounding the News Biases Around Occupy Central

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A multitude of words have been used to describe the student protestors in Hong Kong, ranging from “patriotic and peaceful” to “gullible“, so which side of the story is closer to the truth? As Canadians, we are generally the audience of foreign media outlets, and it can be hard to decipher differences sent to international media compared to what’s being broadcast by local media. A look at the simple yet drastic effect of news bias in China regarding the Occupy Central movement is both surprising and eye-opening.

China has not only banned Instagram and intensely censored its largest social media platform Weibo since the start of the protests, but have tried to manipulate imagery from the event and match them with questionable headlines or quotations from “authoritative figures”. For example, October 1st was the Chinese National Holiday and an image of Hong Kong demonstrators was used with a headline implying that the crowd was gathered to celebrate the public holiday. It has also in recent days emphasized a reduction in the size of the crowd and a “lack of support” from the international and general Hong Kong public.

Media plays a large role in how audiences form opinions on any issue. Evidently, because Hong Kong is a Special Administrative Region of China, there are drastically different incentives for media outlets based in various countries to portray the Occupy Central news. Personally, I’m lucky to be able to make a quick long distance call to my relatives to find first-hand and non-filtered information; but it seems like nowadays, you just can’t keep biases from blurring facts and reality.

protest-antiocc

References:

http://time.com/3237227/china-hong-kong-occupy-central-beijing-communist-party/

http://www.vox.com/2014/9/28/6856621/hong-kong-protests-clashes-china-explainer

Alibaba Investment on Thin Ice

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The Beijing-based company’s initial public offering (IPO) started trading on September 20th, 2014 but shareholders who are buying in are taking a risk with their money that could have serious long-term repercussions.

Because Chinese law forbids foreign ownership and investment in Internet businesses, Alibaba shareholders will not own part of the company but instead own shares from a shell company in the Caymen Islands. This shell company is called a variable interest entity (VIE) and was established for the sole purpose of being the loophole for Chinese internet companies’ foreign investment. This VIE is connected contractually to Alibaba’s profits which exchanges revenue for investment.

Although this partnership is ambiguously legal, the China government has mostly turned a blind eye towards the VIE and their role as a loophole in Chinese law. This means that China courts (and in a recent case, the Supreme Court) can rule to invalidate the contract between the China company and the VIE. For foreign investors, this can cut off future profits; this risk applies to both the experienced investor as well as the novice and creates a bigger loss, the more one invests. Despite warnings from the US-China Economic and Security Review Commission that VIEs are a “complex and highly risky mechanism”, I agree that there is great potential in China’s burgeoning market and the opportunity to take advantage of it far outweighs the risks.

Alibaba IPO

References:

http://online.wsj.com/articles/alibabas-political-risk-1411059836

http://www.bloombergview.com/quicktake/chinas-fraught-ipos?_ga=1.223024733.711348152.1412056375

http://www.bloomberg.com/news/2014-06-26/alibaba-picks-new-york-stock-exchange-as-venue-for-largest-ipo.html

Blackberry Passport: Entry into the Competitive Market

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Blackberry unveils its newest device, the Blackberry Passport, early this month with an unconventional approach relative to other smartphones in the market. From its surprise guest at the launch (Wayne Gretzky) to the subtle snubs at iPhones, Blackberry is recognizing a new era for the company and embracing the original innovations that had first made Blackberry a pioneer for smartphones.

The marketing and operations team at Blackberry have been collaborating to make the Passport the comeback product of the century as executives decided to market the Passport towards their first and most loyal target consumers: corporate and enterprise executives in sectors of health, finance, military, and government in order to bring the company back from the brink of bankruptcy merely a year ago. Blackberry is now focusing on what the professional would need, as opposed to the typical app-infused smartphone user; in fact, CEO of Blackbery, John Chen, states that “the phone is intended to appeal to fewer than one in 10 smartphone users”.

Everything about the Passport is different or even strange compared to the other competitive smartphones on the market; Blackberry is no longer competing with Apple in a predetermined doomed battle but is instead attempting to revolutionize the smartphone market once again. The design team at Blackberry customized features solely for the professional, prioritizing tasks such as receiving and sending emails, editing documents and spreadsheets, and multitasking over more common tasks such as playing CandyCrush or Snapchatting.

As a faithful and loyal Blackberry user, I still believe in the Canadian company and am excited to witness the success of the Passport.

John Chen, CEO of Blackberry, proudly holds up the new Passport - his first product since he took over and revamped the company

John Chen, CEO of Blackberry, proudly holds up the new Passport – his first product since he took over and revamped the company

 

References:

http://www.theglobeandmail.com/report-on-business/top-business-stories/blackberrys-chen-on-new-passport-big-screen-lower-cost-than-iphone/article20718050/

http://www.cbc.ca/news/business/blackberry-passport-why-it-represents-the-crux-of-ceo-john-chen-s-strategy-1.2776759

 

 

“I Agree to the Terms and Conditions”

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Social media giant, Facebook, is known for manipulating users’ privacy, but this time, have they gone “too far”? For a social media corporation, where is the line drawn when it comes to users’ privacy?

Recently, it was announced that Facebook conducted a psychological study on a randomly selected number of users without explicit consent. This invasion of privacy as well as the manipulation of these people’s emotions was justified by Facebook executives who claimed that when users agree to their “terms of service”, they are granting the corporation a blanket consent for company research.

I am, personally, no avid Facebook user; however, I maintain a sense of shock and disbelief that this manipulation of one’s emotions was so blatant and shameless. Many people today consent to terms of service without thoroughly reading them and simply assume that they are agreeing to allow the company permission to access public data or to abide by the law while using the product. Facebook has taken advantage of these users by conducting a psychological study without consent that is justified from clauses in the terms of service. The controversial issue of business social responsibility is varied but one opinion is that of Milton Friedman‘s who believes that the social responsibility of a business is to utilize resources for maximum profit “within the rules of the game”. This behavior from Facebook may be considered immoral, unethical, or dishonorable but is not illegal; should the terms of service that many people blindly agree to hold such legal weight?

References: http://www.nytimes.com/2014/06/30/technology/facebook-tinkers-with-users-emotions-in-news-feed-experiment-stirring-outcry.html?_r=0