Stav Kimhi's Blog

The United Nations and social enterprise share a common goal of providing stability for third world countries. However, their way of achieving this goal is significantly different. These differences can be coined by the universal saying “Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime,” meaning that it is more worthwhile to teach someone to do something than to do it for them.

The United Nations focuses on providing immediate help and support to impoverished communities, primarily through funding and stability of the economy and governmental systems. However, the solutions they offer are not long term solutions because of the lack of guidance given with funding. On the other hand, the Arc Initiative and social enterprise provide long-term support through education and personal assistance. By operating on a more intimate level with individuals, for example through workshops such as those set up by the Arc Initiative, students from the Sauder School of Business impart business knowledge and expertise to provide social entrepreneurs with the proper decision making tools to run their business more successfully. With this knowledge, social entrepreneurs are empowered to become economically self-sufficient, rather than relying on external aid.

For this reason, there will always be a need for social enterprise, because although the funding provided by the United Nations helps solve short-term issues, the knowledge and opportunity provided by social enterprise is more valuable and sustainable in the long run.

Arc Initiative in South Africa

Image Source:

http://www.sauder.ubc.ca/Global_Reach/ARC_Initiative/~/media/7709ACA7C07A4EEC8 AABC811569677B5.ashx

In Christine M. Riordan’s blogpost (Harvard Business Review) she discusses the need for friendship, camaraderie and fun in the workplace. We recently touched upon this concept in class, with the example of Zappos, the shoe company. Zappos has established a corporate culture driven by the core values of creating a positive environment for employees, embracing and driving change, pursuing growth and learning, and creating a fun and positive team and family spirit.

In her blog, Riordan touches upon this concept and explains that employees are happier and more productive if they are comfortable in the workplace and if they feel they are a part of a team. She suggests that employees are also more likely to engage fully in their work if they have friends at work, as well as if their job is fun, enjoyable, worthwhile and satisfying.

However, in order to establish this corporate culture, it is up to the leaders of the organization to set the environment for their employees. Riordan spoke with Gary Kelly, CEO of Southwest Airlines to outline this key point. Kelly proposes that it is important for the leaders of the organization to have vision for the culture. He further suggest that leaders must model the culture; by spending time with employees, treating people with respect, having fun, being there for them personally and professionally, and putting people first. Southwest Airlines is a perfect example of a company that fosters a culture of camaraderie where employees feel they are part of a family.

[Southwest Airlines CEO Gary Kelly]

Designing a company culture that values camaraderie and also creates a positive, fun environment is the key to employee satisfaction and productivity. Creating a strong sense of community within an organization forms a strong social support network for employees, both personally and professionally. Building a sense of teamwork and togetherness unifies the company and drives employees to push for hard work and positive outcomes. At the end of the day, a company is team; it must work as one in order to achieve success.

Image sources:

http://www.ffusa.com/wp-cms/wp-content/uploads/Zappos-culture-out-biggest-asset.jpg

https://d2o2wpn1drmies.cloudfront.net/avatars/411/828/79a/a3e/4b9/2a2/c43/a1a/6a6/023/7a/Zappos_logo_color-jpg.medium.png?1378323845

http://bloximages.newyork1.vip.townnews.com/stltoday.com/content/tncms/assets/v3/editorial/4/ea/4ea6cda8-a3ed-5cc1-970c-d939600c739b/53619e4214306.preview-300.jpg

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Rachael’s blog entry describes Netflix and the effect it has had on cable companies. Netflix, an online streaming video service, is a major competitor for television programming. Millions of consumers have already been lured away from cable with the promise of lower prices (Netflix is offered at $8.99 a month whereas cable packages start at $30.00), as well as the freedom for consumers to watch what they want, when they want.

Although Netflix has been very successful, with a notable 38 million subscribers, it has not yet killed off cable television. The main reason for this is that content-producers and TV operators have made sure that consumers cannot watch current and new episodes of their popular shows unless they pay for cable. Content-owners have restricted Netflix’s ability to buy rights to shows until after they have aired on television. Netflix may have had success with “House of Cards” and “Orange is the New Black,” but most hit dramas are still on traditional television. Additionally, Netflix has not bought rights to sports, so anyone wanting to watch live sports still needs a cable subscription.

Netflix still has a long way to go to kill off cable. However, with the promise of ‘better content as its subscriber base grows,’ as well as the option of watching on the go (streaming is available on your computer and mobile devices as well as on TV), Netflix is certainly a competitive threat and a disruptive innovation to traditional cable companies.

Sources

http://www.economist.com/blogs/economist-explains/2013/08/economist-explains-17

http://www.usatoday.com/story/tech/columnist/komando/2013/05/24/cable-bill-netflix-cable-bill/2326245/

Dove’s Campaign for Real Beauty has been one of the biggest ad campaigns of the decade. The campaign is one of modern marketing’s most talked about success stories because of its promotion of positive self-esteem and body image. By tapping into deep-seated emotions that many women feel about themselves and their appearance, Dove created a sense of trust with its consumers. Moreover, Dove has been able to position its products in the mind of the consumers through the differentiating approach of promoting positive self-image and self-esteem. When consumers go to the store to buy toiletries, they will remember the warm feelings they have associated with the brand.

http://payload163.cargocollective.com/1/7/247254/5568685/DoveOOH1_900.jpg

However, it is hard to believe that Dove is authentic in its message of positive body image when in fact, its parent company Unilever also owns Axe, a very sexily marketed men’s body spray. Dove’s campaign has tried to better society as a whole and bring awareness to women’s perceptions of themselves in terms of health and beauty. However, in the end, you simply can’t sell a beauty product without somehow playing on women’s insecurities. At the heart of it all, Dove still needs to make a profit by selling its products, and in reality women wouldn’t buy anything if they thought they looked perfect just the way they are.

Sources:

http://www.huffingtonpost.com/2014/01/21/dove-real-beauty-campaign-turns-10_n_4575940.html

As can be seen with the closure of Blockbuster, HMV and many other retail stores, sales of DVD’s and CD’s have decreased substantially, and it looks like video games are following suit. As more people opt to purchase video games digitally, there’s less and less demand for physical copies.

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Over the past few years, purchasing video games online has become more and more common, especially with the release of new game consoles such as the Wii U, Xbox One and PlayStation 4, which allow consumers to purchase games digitally, from the comfort of their own home. This has forced video game retailers like EB Games and Game Stop to adapt to a rapidly changing market. They have attempted to do this in various ways including offering customers the ability to purchase digital content in-store, giving consumers who don’t have access to a credit card the opportunity to get their hands on downloadable content and digital downloadable versions of games, as well as by selling Steam cards and season pass packs. So far, it seems that these changes have been successful and very receptive. Additionally, EB Games’ primary advantage lies with their trade-in service, as well as the customers’ ability to come into a store and ask employees for information and game recommendations.

The question remains, will these few benefits be enough to keep EB Games and other similar retail stores in business, or are they fighting a losing battle?

https://warriorpublications.files.wordpress.com/2012/04/yinka-dene-alliance-protest-banner.jpg

A recent decision approved by Steven Harper’s government has given Enbridge Inc., an Albertan oil company, the go-ahead to begin constructing the controversial Northern Gateway pipeline. The $7.9 billion proposal would see Alberta crude shipped to the West Coast by pipeline and exported to Asian markets by super tankers from marine terminal at Kitimat, BC.

The approval of this megaproject has caused a major uproar from First Nations and aboriginal communities who mostly fear oil could be spilled from the pipeline and from the tankers sailing through narrow coastal channels, which will inevitably cause grave ecological harm and loss of wildlife habitat. The pipeline project is attracting fierce opposition from First Nations groups not only because it crosses through traditional aboriginal territory, but also because it has the potential to impact aboriginal culture, heritage and ecological stability.

It is very important when constructing a business plan to build strong relationships with key partners as well as the various groups and associations who might be affected by the business operations. By giving Enbridge the go-ahead, it seems that First Nations are not being treated as partners, but rather as an afterthought in the planning of the megaproject. The big question is whether Enbridge as well as the Canadian government is prepared to develop a different kind of relationship with First Nations.

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Pepsi has recently unveiled Pepsi True, a new, healthier Pepsi drink that will be launched mid-October exclusively through Amazon in the US. When I first read about Pepsi’s new green cola, it immediately made me think of Coca-Cola’s new green cola, Coke Life, which debuted in Argentina in June 2013, in Chile in November 2013, and recently in Britain, USA, Mexico and Sweden as of August 2014. I was surprised to learn that there are many similarities between these competing products including the same label green color, as well as a common ingredient, stevia, a plant used as a sweetener. With all these similarities I was very skeptical of Pepsi’s success. As we’ve learned from Al Ries and Jack Trout, positioning is an important communication tool for reaching target customers in a crowded marketplace. What’s more, the key to getting into the mind of the consumer is to be the first to implement a new idea. Coca-Cola was the first to introduce a green, low-calorie cola to the market, and as in my case, is the first product I think of when it comes to ‘green’ colas. After a bit of research I discovered that these low-calorie product launches follow an industry-wide effort by Coca-Cola, PepsiCo, Dr. Pepper Snapple Group and the American Beverage Association to reduce beverage calories and fight obesity. Therefore, even though Coca-Cola and Pepsi are working towards the same goal of producing low-calorie drinks, I still believe Coca-Cola, being the first to launch its healthier drink Coke Life, has an advantage over the other soda companies.

Source: http://www.marketingmagazine.co.uk/article/1315301/cola-wars-back-pepsi-takes-aim-coke-copycat-stevia-product-pepsi-true

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I recently came across an article in Forbes Magazine about Walmart debuting its Pickup-Grocery service. Essentially, this free service allows customers to place their orders online any time from two hours to three weeks in advance. When customers are ready to pick up their order they simply drive to the Walmart Pickup-Grocery warehouse and notify attendants that they are ready to pick up their orders. Shoppers have about 10,000 items to choose from, including dairy, meat and produce as well as health and beauty care and household items. Pickup-Grocery is an interesting concept. It certainly tailors to the problem of time. Time is always a limited commodity, so any solution that saves shoppers the time and hassle involved in the tedious but necessary task of gathering groceries has the potential to be more convenient and beneficial.

Pickup-Grocery has the potential to be very successful, however there are some concerns that arise, such as trusting Walmart clerks to pick groceries for customers. Currently, this service is in the preliminary stages and is only available in Bentonville, Arkansas, Walmart’s hometown. It will be interesting to see how Walmart proceeds with this idea and how it plans to expand this innovative concept.

Mark’s blog entry describes Target Canada’s engagement in a price war with Walmart and its American counterpart, by cutting prices in their Canadian stores, specifically a 4% lower cost in consumer goods, in order to challenge its competitors and win additional Canadian market share.

Although lowering prices has the potential to attract more consumers and boost Target Canada’s place in the market, recent articles show that Target Canada’s place in the market is a lot worse. As per the Marketing Mag article, Target has had a disastrous Canadian expansion. Not only has it fallen short on consumer’s expectations, it has also had major supply chain issues resulting in empty shelves, poor selection and customer complaints over high prices in comparison to its US stores. What’s more, Target Canada has actually lost close to US$1 billion since the expansion began in March 2013.

http://www.givemebackmyfivebucks.com/2013/05/21/target-canada-or-target-usa-which-is-cheaper/

Right now Target Canada is in the process of implementing a turnaround plan in order to regain customers’ initial expectations. However, it seems that a 4% decrease in prices is not a large enough incentive that will generate more traffic to the stores. Target Canada’s first goal should be to work fervently to regain its footing in the Canadian market and stay afloat.

In their attempt to be considered a responsible company in their society, CVS Caremark announced its plan to stop selling cigarettes and other tobacco products. However, as the company began to offer more miniclinics and health advice in addition to the role assumed by its pharmacists of helping patients deal with chronic problems linked to smoking (The New York Times, 2014), the fact that it was still selling cigarettes was a conflict of interest. As stated in the chapter entitled “Business in Society,” (Corporate Ethics and Corporate Governance, 2007) a company’s survival and reputation are determined in part by societal acceptance. As explained by the Stakeholder Theory, companies operate with a much more complex concept of responsibility, which is linked to the interests of the general society. Ultimately, companies can only operate if they comply with society’s norms. In the case of CVS, chief executive Larry J. Merlo dismisses the estimated $2 billion loss in sales by saying that “cigarettes and providing health care just don’t go together in the same setting.” Not only does this decision have the potential to influence more health-aware consumers to purchase from their company, but also, as said by Kathleen Sebelius, secretary of Health and Human Services, this step taken by the CVS to promote healthy living will potentially have a “considerable impact” on other companies and possibly pressure them to imitate this business decision.

Works Cited:

Strom, Stephanie. “CVS Vows to Quit Selling Tobacco Products.” The New York Times. 05 Feb. 2014. Web. 10 Sept. 2014.

Zimmerli, Walther Ch., Klaus Richter, and Markus Holzinger. Corporate Ethics and Corporate Governance. Berlin/Heidelberg: Springer, 2007. Site.ebrary.com: The University of British Columbia Library. Web. 10 Sep. 2014.