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