LNG: Environment vs Economy

The Pacific Northwest LNG Pipeline is a huge subject of controversy in recent news. This project plans to transport 19 millions tonnes of liquified natural gas across the province of BC each year, creating thousands of jobs and boosting the Canadian economy. In his COMM101 business blog, Ansel Hartanto analyzes the federal government’s recent decision to conditionally allow the project to move forward.

Ansel emphasizes the Canadian government’s responsibility to protect against global climate change, and suggests that the pipeline is not in the environment’s best interest. While it is important for the environment to be conserved, there also needs to be an understanding of the balance between two necessities for a prosperous society: the environment and economic development.

The key lies in compromise, finding a way so that the environment is not significantly impacted and prosperity increases for society. In this situation, the federal government has used the limitations on the project to balance these two forces.

On the one hand, I acknowledge that this project will be a big contributor to greenhouse gas emissions. As with many other residents of BC, I am concerned about the declining state of our environment. However, we need to be realistic about our expectations and the cost of meeting those expectations. Even as the popularity of this project declines, the demand for services and goods that run off natural gas increase. People expect more advanced goods at a faster pace and higher quality, which naturally impacts the environment.

It also needs to be considered that this project is going to provide 4500 jobs during the actual construction of the project, and 630 workers for the actual running of the factory. Not only this, but it will generate billions of dollars in revenue and investments. This is an unparalleled amount of jobs and will be a huge benefit to the unemployed population in Canada. This project is subject to 190 legally bringing conditions that will ensure that the impact on the environment is minimal. These conditions include limitations on the level of greenhouse gasses that are emitted from this project.

This entire post ties into the debate on what the definition of corporate social responsibility is. According to Freeman, it is equally important that the general view of the project by the public is positive, than the profit maximize revenue. While some may argue that this operation is mainly in the benefit of shareholders, the services and products that run on LNG are hugely beneficial to the consumers and society. In sum, the project will be a benefit for all of the stakeholders involved, and while there is environmental impact, the severity is minimized by the conditions set by the government.

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Has Tech Gone Too Far?

The development of technology is evident, rapid, and virtually unstoppable. In her Commerce 101 business blog, Tracy Wong contrasts the pros and cons of rapidly evolving technology in businesses around the world. On the one hand, each advancement signifies tremendous global growth for efficiency and effectiveness. However, the blog questions whether or not technology has gone too far. Through examples of manipulated artificial intelligence and automated car collisions, she suggests technological advances have surpassed their ethical limits, are dangerously unregulated and have the potential to cause irreparable damage.

Acknowledging incidents where new technological inventions have caused harm, it is not realistic to stop the progression of technology. Fortunately, my analysis shows the industry’s rapid growth will be more beneficial than harmful. Specifically regarding businesses, they provide a sustainable competitive edge through improved, and more importantly innovative, service and products. For example, Porter’s 5 Forces states technology that is new and difficult to replicate prevents rivals from imitating their own systems, creating a barrier of entry in that industry. Tracy mentions the sustainable competitive advantage that businesses strive for, and I absolutely agree technological developments are some of the best ways to differentiate from other companies. In fact, these advances are necessary for the survival of these companies as giants in their industries.In a market with so many different competitors, new technology is an essential point of difference and can be the factor that sets them apart from the sea of other competitors. Overall, businesses are much better off with the constantly improving technology.

In terms of customers and society as a whole, Tracy proposes that these progressions may not be in their best interest. According to her blog, inventions such as artificial intelligence are more so under Friedman’s theory of corporate responsibility. In the long run, each development has the potential to improve the value delivered for all stakeholders in a company. As they would in any trial of new products, society will need time to adjust to them. For example, as discussed in class, the addition of cameras to cellphones was seen as invasive and a violation of a person’s right to privacy, but today society has grown accustomed to this now old addition, and there are very few existing qualms. Looking at recent examples, automated cars are not yet perfect, even resulting in occasional horrifying accidents. Even older inventions, such as automobiles, have caused many more deaths than automated cars, yet are still considered ethical. Companies are constantly improving from each mistake, striving to ensure they will not be repeated. Once the technology is “perfected”, the service and products that customers receive will be miles beyond what they have today, and hesistancy will gradually disappear.

 

Source (1)

Source (1)

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  1. Image from https://gcn.com/Articles/2016/01/28/AI-vs-automation.aspx

The Shift to Digital Publishing

Earlier this week, Rogers Communications Inc announced its plan to largely withdraw from the production of print magazines. In an attempt to keep up with the widespread shift from print to digital, they are completely eliminating four of their magazines’ print editions, drastically reducing the number of printed editions for the majority of their magazines, and selling many of their French magazines. In place of these print copies, they are focusing on online and app based magazine distribution. These changes will occur in January 2017.

In the short term, this is a smart move for Rogers to make. As technology holds massive significance in our lives, it is unsurprising that print copies of media have been decreasing in popularity for years. Naturally, there are risks associated with converting to digital media. In some cases, being a digital media delivery service, as opposed to a print one, is still not enough to be successful. Some media publishing apps, such as Apple Newsstand, still haven’t gained popularity despite being digital since their inception. Some have even had to shut down in the last couple of years. However, in order to catch up to the publishing companies that have successfully transitioned, this is a worthwhile investment.

Despite the fact that this changeover is much needed in their company, it is coming quite awhile after traditional printed magazines have lost their popularity. Rogers’ goal is not to solely be on par with other companies, but to be distinguished as a serious competitor. Based on Michael Porter’s explanation of competitive strategy, Rogers’ long term success is dependant on their ability to differentiate themselves from their competition. Converting to digital based distribution is not uncommon. In fact, many other companies have already made this transition years ago. This change merely has the potential to put their service on par with those of their competitors. In the short term, this will help improve the popularity of their magazine service. A few years down the road, when even more companies become digitized, their service will no longer be unique and will be easily replaced by substitutes.

Ultimately, Rogers’ focus on operational effectiveness is essential, but lacks sustainability as a competitive advantage. Instead of trying to create apps or websites that are more effective than the numerous other well-established media viewing apps, they should consider looking at ways to set themselves apart in the market. Rogers Publishing has seen some success in the past, but their magazine distributions have not been hugely profitable for a number of years. With an innovative approach, it is likely that their magazine publishing sector will be successful for many years to come.

Rogers is converting many of its printed magazines to online editions. (1)

Rogers is converting many of its printed magazines to online editions. (1)

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  1. http://www.marketingmag.ca/wp-content/uploads/2013/09/PublisherLibrary-B11.jpg