After our class based on social enterprise and hearing all the details about Grameen Bank, I gained (slightly) some hope that together, with good intentions, we could rid poverty in this world very quickly and “sustainably”.

Waves of memories from Disneyland flooded my mind as I read Angelica’s post on how Walt Disney was a true entrepreneur. I can’t believe I didn’t think about Walt Disney earlier; great choice Angelica! For our group business project, we are doing a company that falls under the entertainment industry, so Angelica’s arguments felt so natural. It is true, Walt Disney faced some great risks, especially emerging during one of the worst financial situations history has ever seen. To this day, my grandpa does not appreciate anyone talking about the Great Depression.

With such innovation, Walt Disney definitely paved the road for countless of other entertainment companies. Walt Disney eventually captured an audience varying from children to seniors with his re-creations of many tales, many taken from The Brother’s Grimm.

This multi-million dollar corporation did not end up like any other corporation. Disney now provides an entrepreneurial skill building and funding program for “who otherwise would not have access to these types of tools and resources”, as quoted from the video.

This is a successful corporation AND has virtue! You don’t see that everyday..!

Disney logo taken from toxel.com

Click here to go to Angelica Cabrera’s Blog

Click Here to watch the Disney Entrepreneur Center video

 

 

 

 

 

 

 

 

After reading the class readings for today, the only business that was going through my mind was The Body Shop. With their endless choices of fragrances, body butters, bath products, and even a mens line of shaving supplies, The Body Shop has definitely defined itself as an entrepreneurship. The founder, Anita Roddick, formed The Body Shop for customers looking for products that were contributing to the world’s sustainability. Sustainability is not the only global issue that Anita was advocating for, The Body Shop also employees thousands of low income individuals in impoverished countries and runs campaigns for various issues such as child abuse, and AIDS awareness. With all this well-doing for this world, comes a price to customers. The Body Shop prices are clearly beatable, especially with knock offs available in any supermarket. Anita took a very big risk in developing products with costs being a low priority. Even with their high prices, The Body Shop spread around the world quickly, and profits were high. Anita definitely lead the way to a new way of production; employing those who need it the most. The Body Shop has built its reputation, thus gaining loyal customers.

 

I used to work for the Body Shop as a stock boy, so I learnt a lot about this lady. If you want to learn more about her, watch this interview with her:

In response to this blogger’s post on Continental and Southwest airlines announcing on flight wi-fi, I have no doubt that I will be their number one customer. All along I thought that because of airline’s strict “no cellular usage for the duration of flights” policy always being observed, wireless technology was incompatible with flights. Clearly that bridge has been crossed (if there was even a bridge to begin with…) and even better that these relatively small airlines initiated this service. These two airlines clearly have another point of difference along with their low prices and fairly comfortable seats. From personal experience, I’ll always remember taking Southwest to Denver while feverish, and it was still one of the best flights I have ever been on. If Continental and Southwest find success in this new service, all other airline’s marketing divisions will be ready with a more innovative idea to target the same customer demographic that would be attracted to having access to internet on flights. Businessmen, Teens, Moms shopping online for christmas presents, it seems like everyone would be attracted to such innovation. Evidently, IT importance has leaked into the airline market.

Bayneii’s Blog:

https://blogs.ubc.ca/bayneii/

Picture taken from Southwest Airlines website:

http://www.southwest.com/wifi/

Ethan’s post about Tim Hortons venturing into the Arab Gulf caught my eye in two ways; Tim Hortons being the subject, and the photo he used that had Tim Hortons written in Arabic, which spelled out “Teem Hoortons Coffee and Beek Shoop” (Bake Shop). Besides from the chuckles from seeing the sign, this post kept on making me think about Porter’s Five forces and how “Teem Hoortons” must have used the forces their decision to start business in the Arab Gulf. I totally agree with Ethan in the sense that Tim Hortons should consider their points of difference and assess how substantial their marginal profits will be, however, I don’t think there is too much competition in the Middle East for North American coffee chains. That being said, in reference to Porter’s forces, threat of substitutes might be a tricky one due to existing coffee chains in the Arab Gulf, and the different traditions formed around coffee. Coffee plays an enormous role in Arab culture and the idea of foreigners venturing into a cultural aspect has the potential to be unsuccessful. Nonetheless, if I ever convince my parents to take me to Dubai, I can assure them that they won’t have to miss their daily dose of Timmy’s, which they still don’t confess to having…

Ethan’s Blog: https://blogs.ubc.ca/bball123/

At first, this Aljazeera article seems to be describing Brazil proposing themselves and other economically emerging countries (India, South Africa, China, and Russia) to contribute funds in various ways to help ease the ongoing European economic crisis. What seems to be a selfless gesture abruptly reveals itself as Brazil’s attempt to secure their own economy. If there is no economic stability soon, Spain and Portugal are in economic danger, which poses a negative effect on Brazil’s economy, as these two countries have heavy investments in Brazil. Ironically this deal has a very “karma-like” flow. What goes around, comes around. The more Brazil helps Europe, the less impact the crisis will have on them. Brazil could possibly free $10 billion dollars for Europe that would go towards the International Monetary Fund or European bonds. Brazilian officials stated in this article that this crisis poses opportunity for Brazil in the sense that they would have a greater role in global affairs. Personally, I wish countries like Brazil would take a quick look at their own infrastructure and realize they need to solve their ridiculously high poverty rates. This world of economy just got even more confusing in my head.

For reference:

http://english.aljazeera.net/business/news/2011/09/201192052145668735.html

The worlds largest broadcasting network, BBC World News is proposing a 20% budget cut due to “a deal struck with UK government” (refer to Aljazeera News link). Whether this is an outcome of Europe’s bank crisis, or poor ratings, the real cause has not been clearly stated in this article. In January of this year, BBC laid off 650 employees as they cut 32 foreign language channels. After hearing this, I was quite disappointed not only because I finally bargained a PVR package with Telus that would give me 5 BBC channels, but also because I used to use the Hindi version of BBC world news to practice my Hindi reading skills as the headlines ran across the bottom of the screen. This just comes to show how a budget issue half way across the world can affect us in little mossy Vancouver. All I’m hoping now is that my weekly middle east business report will still show every Friday. As for these budget cuts, it was mentioned that it was cut from 5.4 down to 3.4 billion, not including their income from commercials. BBC’s marketing and accounting teams are going to have to get real close and comfortable with one another if they want this to work…

References:

http://english.aljazeera.net/news/europe/2011/10/20111068747192481.html

http://english.aljazeera.net/video/europe/2011/01/2011126214521121205.html

Denmark’s government recently implemented a fat tax on consumers to reduce the amount of fatty foods consumed. From pizza to milk, a 16 kroner ($2.87) per kg tax will hopefully reduce Denmark’s fatty food intake. Denmark is the first country to do so. Many people believe in its survival, and many don’t. Some say that countries will follow Denmark’s health plan, but others just believe it’s just another tax that the government will benefit from and will soon have to be lifted. Even though Europe’s financial crisis won’t be relieved by Denmark’s one extra tax, it must have some impact on Denmark’s economy. For one, there are many people who are not ready to give up their pizza and sweets for a tax. Besides the amount of money it generates, the people who actually care for their health but have troubles refusing many foods will now have an incentive to staying away. Although I don’t think this tax will last long, I think the U.S.A should consider the idea. With the environmental changes and new technology that is changing the way our food is produced, life spans are going to decrease drastically if the government doesn’t take more action in their country’s health issues.

For more information on this topic, visit:
http://english.aljazeera.net/news/europe/2011/10/2011101193713194924.html

Picture taken from:
http://s2.photobucket.com/albums/y44/messiercat/bizarre/?action=view&current=Mr_Creosote.jpg

Well, for one, Being an NRI (Non-Resident Indian) the interest rate inflation means good and bad. As india’s government tests the Indian market by hiking the interest rate to check any inflation rates, NRI’s around the world feel the effects. India’s impoverished will most definitely feel it the most as food prices heighten and debt increases on loans. Even though my parents have invested money in The State bank of India and are profiting from these ridiculous interest rates, India’s banks make no attempt to hide their resentment towards NRI’s. Just last week we received a letter in the mail threatening to  cease our accounts due to “inactivity” (my parents do their online Indian banking every week). The only way to keep our bank accounts open? “Please send a copy of your passport and social insurance number”… I really hope India’s revolutionist Ana Hazareh influences India’s corruption quick because I don’t think I’m the only NRI hesitant to send my personal information to this developing country. I understand that these banks are having troubles facing the facts that NRI investments means money leaving the country, but that’s the downside of dealing with investors. There’s my rant on India’s corruption and ridiculous interest rates.

For more information, visit this Aljazeera link:

http://aljazeera.com/business/2011/06/201161684733130212.html

Photo taken from CTV News:

http://www.ctv.ca/CTVNews/World/20110426/food-prices-could-swell-ranks-of-asias-poorest-110426/

South Africa’s federal competition tribunal gave the Walmart corporation a green light to enter the country’s market and buy 51% of the Massmart company’s stock. This is a huge deal due to the fact that Massmart is one of Africa’s largest retailers. Because Walmart was granted this permission on very few conditions, Cosatu, South Africa’s largest labour federation has campaigned against allowing Walmart into the country.

What does this mean for Africa’s already low employment rate? Walmart’s consistent competitive prices will continue into South Africa and will greatly affect small businesses. Competition will be scarce as no one would be able to afford to compete against Walmart; even though they are due to their unethically low labour costs in developing countries.

What strikes me the most is that South Africa’s competition tribunal asked Walmart to refrain from laying any workers off for at least two years. What happens after those two years? Although South Africa is one of the more developed countries on the continent, their unemployment rate hovers around 25% within the past five years. It seems as though Walmart’s influence in the Massmart corporation in South Africa will have a crippling effect after the two year-long promise is finished.

 

http://www.southafrica.info/doing_business/businesstoday/businessnews/732588.htm

http://english.aljazeera.net/business/2011/05/2011531172516126893.html