(Class 20 Blog: Social Enterprise and the Arc Initiative)

Social enterprise is the way to go if you want to be an entrepreneur while helping out a cause. Unlike charities, social enterprises aim to make profit, but do so through ways that help solve a social or environmental issue. This is why I think that social enterprises can be more sustainable than their competition: consumers nowadays are more socially-conscious and this is reflected in their buying habits.

Furthermore, projects like Sauder’s own Arc Initiative, also help to stimulate the economy in developing countries with the increased number of competitive products and/or suppliers. The Arc Initiative can be extremely beneficial to the development of many new social enterprises around the globe, which is why I think that even if the United Nations is fully funded, Arc Initiative programs should still continue to be utilized to promote entrepreneurship of social enterprises.

With more funds, the UN is able to finance a number of additional programs within their multiple sectors. However, to get the additional funding, the UN has to be aware of the pressing matters that the social enterprises address. They would realize which issues require more help if more businesses and institutions come to aid these causes. Social enterprises help to make known the issues the world faces, and the Arc Initiative can help them get on their feet.

Photo:http://api.ning.com/files/guHCS0CwloJyx9WUpAjpvdrkNL4k*6aA1luJMsh63GcZQvUY*7O9dnqm1a0qlvovkzEBYrAKZk63DC*Z0CBX615fgO5lGWry/020.jpg

We all know the saying: “Money doesn’t grow on trees.” The intent of the saying still holds true today – money isn’t something we can just get when we want it – but now there are ways to significantly increase the amount in your bank account without all the hard work. One popular method is to invest your money for returns; whether it be interest or dividends.

According to this article by Dan Kadlec, millennials (born 1980s) just recently became more interested in putting their money into stocks as investments. This is because the previous perception of stocks was that they were too risky and the market was not in the best shape. Compared to investments like bonds, term deposits, and GICs, stocks are definitely more risky, but I realize now that there can be opportunity cost to leaving money uninvested too.

Based on previous knowledge, I’ve always thought that stocks were much too risky to invest in by yourself since many external factors can change the price in a matter of seconds; as mentioned in class, time is risk. While the uncertainty of making money from stocks is still present, becoming more educated on how they really work and how to value companies has let me be more open to thinking about stock trends and managing my own portfolio someday.

Photo: http://3.bp.blogspot.com/-plwIgfuuynA/TrrdxtuPhBI/AAAAAAAAADU/3Z9RqT26im8/s200/iStock_000008373803XSmall.jpg

Re: “Sudden death and succession: any company’s worst nightmare”‘ by Andrew Hill on Financial Times blogs.

In this course, we have talked about starting a business and how it maintains profitability through sustainable strategies. However, we haven’t really gone over what happens when a main figure, such as the CEO, is no longer part of the company. This is what Andrew Hill talks about in his blog post, with the issue being a sudden death of the CEO.

This blog caught my eye because it talks about a topic that does not really come up in the daily practices of a business, but is a very real situation that could happen at any time. That being said, succession planning should definitely be important in company discussions. However, Hill mentions that many companies do not have an emergency succession plan in place, or they have a hard time implementing it when the situation arises.

Tragedies like the death of the CEO would definitely take a toll on the company’s performance. Unfortunately, the rest of the market does not stop for one loss. Like it says in this article, losing a figure, such as the CEO, can have consequences on the company’s stocks, internal operations, and/or relations with other businesses if there isn’t enough communication about their next steps. I think that while events, which will make it hard for a company to stay competitive, will inevitably arise, good decisions can allow the business to recover and become stronger.

Photo: http://mspmentor.net/site-files/mspmentor.net/files/archive/mspmentor.net/wp-content/uploads/2009/07/msp-succession-plan.jpg

With the advances technology has made in the last century, consumers are now able to get anything they want, from anywhere in the world. Online shopping has taken customers and businesses by storm with the convenience and variety it offers. E-commerce services can be considered a disruptive innovation to retail businesses, seeing as so many people can shop for anything they need online. While online shopping definitely poses a threat to retail stores sales, I think there is still much value to shopping in store, as opposed to shopping online.

Matthew Torres compares in-store and online shopping using customer values, such as availability, variety, price, etc. I am reminded of how we talked in class about different companies of the same industry being pressured by consumer demands. In-store and online shops emphasize the values that they have to offer to shopping experiences (i.e. atmosphere and customer service in-store, and more deals and product variety online). This pretty much leaves the choice to the consumers, depending on their preferences.

I think there is still much value in shopping in-stores, so I don’t consider it outdated at all. In fact, I think that the introduction of online shopping improves my in-store shopping experiences. Looking for what I want online is much more convenient than looking in-stores. So I think in this case, the disruptive innovation did not displace retail stores, but they are able to co-exist and advance the industry.

Photo: http://recommender.strands.com/wp-content/uploads/2010/06/small.jpg

Investing in a franchise can be a good way for an aspiring business owner to get experience and earn money, with the advantage of having the franchisor’s name attached to the business. However, Patrick Clark argues that franchises actually lose money, rather than earn it. He shows that many franchises were terminated or went out of business, losing money in start-up fees, loyalties and operational expenses. Franchisees incur many costs, and don’t have much say in the brand, but is buying a franchise not worth the risk?

I would say that franchisees aren’t exactly entrepreneurs or intrapreneurs, but have qualities of both. Franchisees invest in their franchise and run it, like an entrepreneur. However, since they have the backing of the franchisor with less risk, they’re also similar to intrapreneurs. That being said, do people buy franchises to help build the franchise, or simply because they want to see profits rise? Perhaps the latter may be most of the franchisees Clark is referring to.

I think one key aspect that franchisees should look into is innovating within the brand. They can have more impact on the franchise and their large investment would overall be more rewarding. However, this means that franchisors should be willing to let franchisees innovate. Buying a franchise can be risky even with the brand already established, but seeing it as more than a way to earn money can make it worth the investment.

Photo: http://www.thecrowdcafe.com/wp-content/uploads/2013/09/franchise-logos1.gif

Re: “Hiring Slow and Firing Fast” by Carlene Loughlin.

Post-secondary is a usually time in everyone’s life where they start becoming more independent, including finding internships or jobs. If you have never been interviewed, then your first could be extremely nerve-wracking. And even if you thought you nailed the interview, you still might not get the position, but thought you were the most qualified. However the hiring managers have it hard too.

Carlene mentioned in her post that “the idea that firing… is simply a necessary process to maintain happiness and productivity in the workplace for all involved,” and I agree. It can be easy to take a job rejection personally, but it’s also important to remember that the managers interviewed dozens of candidates and can only choose one or two. On top of that, they also have to be responsible for the new employee(s) when they work, help the existing ones adapt to changes in the workplace, and more. They have to worry about the business as a whole, because if they choose the wrong people,it can affect everyone else in the company.

This reminds me of two questions asked in lectures: “What did Sauder hire you to do?” and “What did you hire Sauder to do?” Employees are a key resource in a business, so the right ones are chosen. If you didn’t get hired right away, then there’s still a chance to find the position that’s right for you.

Photo taken from here.

All businesses have external factors that pose threats on operations, however, industries in natural resources such as mining and forestry face challenges and delays in projects because of relationships with First Nations.

Take Taseko Mining for example. They have proposed their New Prosperity mine, which would take place near Fish Lake, but failed to get the rights to proceed because of environmental risks, and because the First Nations claimed the land as theirs and is used as a tribal park.

Should businesses be allowed to carry on with projects to increase jobs and the GDP, or should the land be preserved in the hands of the indigenous peoples – the ones who are the rightful owners of the land we live on? The issue of land rights is a controversial, yet common one in BC. Our very own UBC sits on Native land, and we proudly recognize this. Of course, it is important to leave certain areas alone, as the land is rightfully theirs, but these companies are able to provide jobs and stimulate the economy.

Personally, I believe that the First Nations should have the say on what goes on their lands. However, the operations of industries like mining and forestry are also important to the economy, so there should be limited regions in which they are allowed to proceed with environmentally sound projects.

Photo: http://www.antaresmultienergi.com/wp-content/uploads/indonesia_mining_consult.jpg

Re: “Blackberry’s Comeback” by Serinda Kong

This post is in response to Serinda Kong’s blog post titled “Blackberry’s Comeback” which discusses Blackberry’s new strategy with their new Passport, and how she thinks that they can now “thrive and rebuild the company’s relations with the enterprise market.”

My opinion in regards to their change in target market is like that of Serinda’s. Like she said, Blackberry is not likely to reach the popularity it once had a few years ago, and will probably never reach sales similar to Apple’s. However, Blackberry for the most part has had success in the corporate market, even before their downfall. With their Passport and new marketing strategies, it is very possible that they can gain success in their new market.

Companies such as PayPal, Youtube, and even Apple have had to change their strategies over time in order to gain more of their market share. Now they are the leading companies in their respective industries. Michael Porter’s globally accepted theories on competitive strategies emphasize the importance of a competitive strategy for every business. Many companies can produce similar products and services, but differentiations quality and/or target markets can bring a firm to the top of their industry. If Blackberry’s new strategy holds, they have a chance to be a top choice for corporate electronics.

References:

https://blogs.ubc.ca/serindakong/2014/09/25/blackberrys-comeback/

http://chargify.com/blog/6-companies-that-succeeded-by-changing-their-business-model/

http://www.fastcompany.com/42485/michael-porters-big-ideas

Photo: http://sagaciastrategies.com/wp-content/uploads/2013/07/Business-Strategy.jpg

As an aspiring accountant, I hope to be able to assist people with their financial information and help them make the right choices with their money. Others see accounting as just making financial statements, or filing your taxes. However, accounting is much more than that, and financials can have a bigger impact on the public than most believe.

Financials show the state of the company, which help people decide if they want to invest in it. Unfortunately, it is possible that the numbers on these statements can be tampered with. This is also relatable to ethical vs. unethical acts in the workplace. Revenues can be raised and expenses lowered to increase earnings in order to meet the demands of shareholders and/or attract more investors. On the other hand, revenues can be falsely decreased so the company can pay less taxes. A memorable example is when Enron took billions of dollars from shareholders, and public alike. I think this shows the power financials have in a company’s success, but also the power accountants have to challenge these numbers.

There certainly was some accountants or executives with accounting knowledge behind these frauds, but those who caught and/or got the evidence against the wrong-doers were also accounting professionals. According to my dad, anyone can put financials together or file income taxes, but accountants are willing to do all that and take responsibility for the numbers, and I agree completely. I believe that strong (and honest) accountants can guide businesses and individuals to gain much more in the long run.

Reference: http://www.accounting-degree.org/scandals/

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Let’s face it: we probably all have taken a cookie when we weren’t supposed to, or copied an answer off a classmate’s worksheet right before it was due. However, I’m sure we haven’t let these deeds go too far as to shoplift or cheat on an exam. Unfortunately, many workers have committed some major unethical acts in their workplace and for a lot of the cases, they started off with smaller ways to cheat. This is what four university professors in the US called in their report about unethical acts in the workplace the “slippery-slope effect.”

Examples of this effect as mentioned in the article include a Ponzi schemer and a newspaper plagiarist. They took the easy way out to get more money, or to get the job done faster, but eventually the situation get out of hand and led to committing crimes and fraud – something one can’t get out of even if they wanted to.

I think employers should further promote the consequences of unethical work in order to prevent snowballs from becoming boulders. According to R. Edward Freeman, a business should be run so as to benefit everyone involved in an ethical way. There is a social responsibility that a business (including its operators and employees) must fulfill, and running it ethically will contribute to its customers and society as a whole.

Sources:

http://www.bbc.com/capital/story/20140806-the-slippery-slope

Image: http://lawinquebec.files.wordpress.com/2009/12/white-collar-crime.jpg