The UN is an invaluable organization that excels at providing aid, preventing conflicts and generally overseeing our world affairs. But it is the very nature of its broad scope in responsibility that disrupts its ability to enact microscopic changes on a local level. The population is far too large for one governing body to be able to effectively address all the issues that aren’t of a global or large-scale impact, but that is, in many instances, where aid is needed and often neglected. The Arc Initiative differentiates itself from the UN in two major ways, it operates on a smaller scale, and it generates opportunities. It’s smaller scale allows it to enact actual changes in local communities that wouldn’t otherwise have been reached by organizations like the UN.

It also is based on the premises of, as I mentioned earlier, generating opportunities. It doesn’t just seek to help those in need; it seeks to empower local individuals to develop the skills to help themselves and their own local communities, thus enacting sustainable change.

Although the model of providing aid is crucial in emergencies, in the long term, it creates dependency and prevents independence. There is an ancient Chinese proverb that goes: Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime. This is exactly what the Arc Initiative is doing, teaching people how to fish.

When I started reading into Obama Care, all I absorbed was the facts and implementations that it initiated.

But upon reflection, I realize that it’s the perfect representation of how external factors can influence business.

Since Medicare, and Obama care have been implemented it has drastically changed the nature of the way hospitals and doctors operate. The political environment has changed from the implementation of new health care and operation policies. These policies are eliminating the former financial incentives in treating large masses of patients. Now the incentive lies in providing long-term lasting treatment with a stronger emphasis on sustainable prevention. This clearly benefits the patients, and also allows doctors to prioritize their time to treating numerous individual patients, rather than wasting time on re-admitted patients. Socially, the external environment is also moving towards a more lifestyle based, preventive approach in contrast to the previous drug/surgery based treatment. The social conscience of how diet and lifestyle choices impact ones health, also encourages the quality approach instead of the quantity-based model of treatment. Patients and doctors are more aware now, that simply removing a tumour, for example, only treats the symptoms and not the disease itself. This new healthcare policy allows doctors to create shared value economically and socially by accommodating their operating model to the changing external environment.

Alibaba is an online retail service that has recently grown exponentially. There immense initial public offering and 40 % increase is a signal of great investor interest. I believe a key to Alibaba’s success is their unique business model. As we have learnt, inventory is an immense drain on a businesses ability to optimize usable capital; it also causes depreciation, and an inefficient supply process. Gaging the right balance between having an excess and a shortage of inventory is extremely tricky and can be a common downfall for businesses. So, are they necessary? Many experts would argue that they are, and label them as a “necessary evil” in business. However Alibaba has proven that with an innovation and creativity, they can eliminate this “evil” all together and incur all the benefits of not holding inventory. Alibaba employs a form of networking that connects merchants with consumers, where the merchants supply the products. They serve as a sort of liaison between buyer and seller, this model allows them to work in cooperation with their merchants instead of competing with them, and it allows them to avoid the costs of production and the disadvantages of inventory. Although all of this seems promising to Alibaba, my only worry is that with China’s extremely large and competitive market, their unique business model may soon be adopted by others which would eliminate their competitive edge.

The concept of creating Shared Value is one that sparks my passion and interest.

I found it revolutionary to consider the concept of creating societal value first, and incurring economic value as an inevitability and side effect of that action. I truly admire companies for taking initiatives to incorporate Corporate Social Responsibility into their company procedures and value propositions. Whether it’s using sustainable materials, diverting profits to NGO’s, or sourcing ethically (Starbucks), it increases the companies appeal to me as a consumer. But the brands that resonate most deeply for me are those that have shared value within their original value propositions, and where the simple act of their daily activities as a business create benefit to society. These businesses inspire my entrepreneurial spirit to no end.

“Beyond Meat” is the perfect example of a company that has created a business from essentially helping consumers improve their own health, improve the environment, and improve the lives of animals.

These are values that are at the core of their operations, and it permeates their entire brand, and all their products. It’s not simply a marketing initiative, or a media campaign, instead it’s integral to their fundamental operations, and the values that they create are simply a bi-product of operating as usual. These businesses are the perfect representation of shared value and are businesses that I hope to one day emulate.

I’m a devoted Lululemon fanatic, however after reading Michelle’s post about their downsizing strategy, I’m admittedly disappointed. I agree with Michelle that this can be perceived positively as encouraging a healthy lifestyle, however I believe it does more damage both to their brand and to spreading the message of health. I am a passionate advocate of self-love, and in our perfection driven world, its something that is increasingly rare. The media already puts immense pressure on people to look “perfect”; getting that pressure from retailers is absurd. Not only is it demoralizing to be discriminating on consumers based on physicality, but it’s actually been shown to discourage health in the long run. Lululemon is also implicitly stating that size is an accurate depiction of health. This perspective neglects the holistic nature of health, and fails to recognize that everyone’s representation of physical health can look different. This business decision restricts the customer segment, unnecessarily discriminates against consumers, and discourages health for the most part. I believe a more effective way for Lululemon to encourage health would be to provide their products to those needing plus sizes. Having their workout clothes and being part of Lululemon’s community may incentivize those who are overweight to get active and start investing in their health.

Certain retailers are beginning to utilize real-time data into their business strategies by personalizing the services they provide. They’re utilizing the new iBeacon technology to identify shoppers by their smartphones, thus gaining access to social media posts, and allowing them to tailor the shoppers experience to target their specific value proposition.

These actions responding to companies like Amazon’s incredible success analyzing consumer data. I believe this decision, to transition to a more real-time data model is a sensible one. As Rita McGrath has affirmed in her Transient Advantage article, it’s incumbent on businesses to keep re-evaluating their business strategies, as “sustainable advantages” are long gone in our ever evolving, competitive business world. She also advises businesses to consider arenas, which is what these retailers are doing. They’re not trying to imitate other retailers; rather they’re emulating the online retail service models use of the cloud database. Using real-time data will also encourage entrepreneurial growth since employees have a limitless creative capacity for improvements they can implement with their newfound wealth of information. In essence, this move allows retailers to be more knowledgeable on their consumer’s behaviour, reinforce and better their relationship with consumers, and therefore be better equipped to deliver targeted and effective value propositions to them.

The Supreme Court of Canada has made a definitive ruling, which recognizes the title that the Tsilhqot’in people have to their ancestral land in Williams Lake, BC. Their new-found authority over their land grants them the power to cancel projects that started without their consent. The Enbridge project had the federal cabinet issue an order to approve the project before gaining aboriginal consent, which now leaves them vulnerable and subject to legal cases. These court decisions have effectively stalled Enbridge’s development plans and left them in a more politically, legally, and culturally unstable operating environment. The increase in Aboriginal support and mounting legal hurdles implemented by the SCC could cause extreme delays and amendments to their previous plans. Enbridge will need to reassess their prospects, and reposition their company strategy. It’s clear that they must win-over the Aboriginal’s with land claims, and convince them of the benefit they’d receive from their project. This will be difficult seeing as the pipeline severely threatens the Aboriginal’s way of life and invades their land. The external public environment that BC offers isn’t particularly friendly to large corporations seeking to devastate land and threaten pollution, regardless of the financial gains.

Thus I believe Enbridge’s decision to seek other opportunities in more supporting environments will be more promising and productive.

Whole Foods has long been known as a “Wholesome Company.” As my peer Madison Shouldice stated in her blog entry, “Whole foods caring reputation…attracts consumers.” Their powerful brand suggests a healthy and morally sound company. However as a result of rising competition from other more cost-friendly companies, Whole Foods stock price dropped significantly in May, and has struggled to recover. Their competitors (Wal-Mart, Costco etc..) are staring to enter the niche market of healthy organic produce, that Whole Foods once dominated, and they’re doing it for less.

Walmart goes organic

Whole Foods is planning on initiating a rewards program to incentivize sales and to offer deals. However as Porter’s generic strategies states, when companies try to impose both a “Cost Leadership Strategy,” and “Differentiation Strategy,” as Whole Food’s is attempting to do in starting to offer rewards plans and deals, they risk loosing their competitive advantage and getting “stuck in the middle”. I believe they should focus on marketing the company’s values that allow them to differentiate themselves from competitors. Their customer service, community involvement, ethical operations, sustainable practices, and health priorities are what I believe they should be prioritizing. By trying to adopt a “Low Cost Strategy” they risk confusing the consumers, by blurring their company’s values and brand.

“Some Assembly Required” Business Model

SARB Model

Our generation is without a doubt, a digital era that moves at a revolutionary pace.

Digital age

The old economic system is outdated, and too inefficient to keep up with the demand for jobs in our society. This coupled with the rise in “cloud-based services” has given rise to the SARB model that is growing exponentially. I believe that this ability to launch entrepreneurial ventures at low cost, and often times low risk will encourage innovative individuals to pursue their ideas for new services, products and businesses.

Entrepreneurs

This new found freedom of pushing geographic limitations, eliminating lack of hard skills, and the accessibility of online (oftentimes free) resources encourages average individuals with an above average business idea to “give it a go.” Since their initial investment isn’t as substantial, their potential losses concurrently aren’t as substantial, so they’re less likely to dissuade possible entrepreneurs from pursuing their business ventures. I believe this rise in SARB models will lead to a decline in conventional businesses, and a jump in unique start-up businesses. Social media has played an immense role in the proliferation and ability for these businesses to thrive.

social media

This new tech-driven age is sure to produce many intriguing game-changing businesses, and I cant wait to witness what the future holds.

Lululemon has long been known as a trendy, high quality company with a strong brand and ethos. But after losing a third of its value this year in shares, it’s in need of a.business plan makeover. The problem with their products is that their high costs represent not only the high quality but also the reputable brand name, and in a time of rising competition from more economical competitors, Lululemon is suffering.

lululemon’s competitors

They’re tackling this issue by offering more fashionable products, and branching out from simply workout items.

lululemon getting stylish

Aswell as diversifying, they’re globalizing their presence to international markets. However, the cost of globalization combined with their competitors improvements may hinder Lululemon’s progress. Since Lululemon’s revamp, the number of shoppers have increased, I believe this shows a strong brand loyalty among Lululemon customers. Because Lululemon represents a culture and lifestyle, customers are more inclined to buy into the brand for life.

lululemon community

They should capitalize this and focus on product quality. If they’re going to continue to demand high prices, they should ensure their quality beats the rest of the competition. After learning from their product recall last year, if they can ensure quality, then I believe their loyal customers will be willing to continue buying their products over their competitors.