With the recent opening of Target in Lansdowne Centre, Richmond, I was intrigued with what the Canadian reception of this American based company would be like. Not too great, apparently.

Target Canada Ad

When Target first announced in late 2010 to the public it’s plans to expand in to Canada, it was reached with massive excitement and it’s debut became “the most anticipated arrival of a foreign retailer in a generation”, as described by a Globe and Mail article.

Despite overwhelming buzz, Target’s sales have fallen well short of predicted numbers. This is because customers were familiar with the stores before they even launched in Canada due to cross-border shopping. Consequently, many consumers expected for Target Canada to match the cheaper US Target pricing.That is, of course not the case.

So, if Target is not providing goods at a cheaper price, what exactly is it’s point of difference among other retailers such as Walmart and Shoppers Drug Mart? New brands that Canada has never seen before, of course! I believe that as time passes and the price perception stint dies down, Target will remain profitable by offering new items to Canadian soil.  According to Porter’s Five Forces, Target’s large supplier power and unique competitive advantage will allow the company to sustain in Canada.

Picture – Target Canada Ad

Social entrepreneurship is a growing concept that serves as a marriage between business and change-making. While many companies focus on maximizing profit, social enterprises tackle social problems often at a cost. But in an ever so socially-conscious generation, it makes a business that much more attractive.

While I was going over the obligatory readings about the Arc Initiative and entrepreneurship, I decided to further extend my studies by visiting the project’s Sauder website. In the “About Arc” section, it states:

“[this] is not a “Let’s Save Africa” project.”

Because it’s not: Arc is an opportunity for professors and students to aid local local business management (in South Africa, Ethiopia, and Columbia in 2012) by providing business skills workshops to entrepreneurs.

Me in Nuevo Amanecer back in March 2012

Last spring, I embarked on an 11 day trip to Guatemala with a school club where I lived among locals in a small railroad-side village and was involved in the construction of a small local school during my stay. With this experience in mind, I am certainly interested in learning more about the Arc Initiative. The fact that I can use all that I have learned in a first year business course – COMM 101 – and guide others in the real world is simply amazing.

Picture: Arc Initiative Logo

Ah yes, Snapchat. The go-to mobile application for sending short-lived “snaps” of photos, videos, and of course embarrassing selfies. Since its inception of 2011, the photo app has grown to become an essential to many users (including myself) and there are numbers to back that up – more than 26 million US users and 350 million “snaps”sent per day. In just two years, the simple one-button app has become a serious threat to social media companies as it shares the same user demographic of young teenagers.

In fact, social media giant Facebook recently tried to acquire Snapchat for a whooping $3 billion, but to no avail. In Gracia’s blogpost, she explains that the alternative to beating a competitor isn’t always acquisition as Snapchat is not a sustainable business. While it is true that Snapchat doesn’t make any money, I believe that it has insurmountable potential for it.

For one thing, the company possesses the first-mover effect, with a loyal customer base and strong brand recognition. In fact, in June 2013 investors valued the company at $800 million, and raised $60 million in funds. There exists numerous opportunities to open up revenue streams, such as capitalizing on its popularity by introducing ads to generate money. Was the rejection of Facebook’s offer smart for the company? Only time will tell.

Globe and Mail Article
Picture – Snapchat logo

Save on Meats is an iconic restaurant and butcher shop based in Vancouver’s Downtown Eastside, a neighbourhood notorious for being “Canada’s poorest postal code”. Entrepreneur Mark Brand employs a unique commercial strategy to improve the social well being of DTES, by not only feeding the poor, but also providing job opportunities to barrier employees. That is, Save on Meats employs those who would normally be overlooked because of their obstacles, be it drug addiction or ex con records. In addition, the social enterprise offers meal tokens of $2.25, in which it can be redeemed for a hot sandwich.To date, Save on Meats has been featured in numerous newspaper articles and TV shows like The Big Decision, Gastown Gamble,  and Diners, Drive-ins and Dives, which is all free marketing. In this sense, the business has created a very strong brand identity.

A play on the saying “When Pigs Fly”, as Save on Meats strives to break down the employment barrier.

While Save on Meats has met with tremendous success, is the business really sustainable? Quite often, corporate social responsibility and profit collide.For Save on Meats, the answer is yes. Because of the social enterprise’s unique value proposition, partners such as Dragon’s Den’s Arlene Dickenson have offered a helping hand.

Globe and Mail article

Picture – Save on Meats Logo

The other day, I came across a blog post in the Harvard Business Blog Network that had to do with the organizational culture, an aspect of business we recently learned in class. In the blog, Deidre Campbell explains the significance of organizational culture. However, the common question is, does having a positive work environment really increase productivity?

She states that

“great leaders know they should invest in their people. Those companies who are comitted to a strong workplace culture tend to perform well [.]”

 

In fact, companies with strong organizational culture such as Microsoft and Google have generally placed high on rankings such as the 2011 World’s Best Multinational Companies list. After a series of research and surveys, Campbell offers a compiled list of similarities between some of the top companies in relation to their organizational culture.

Among the list, a certain point particularly resonated to me:

A part of Google’s “culture”

• They recognize that culture is critical to talent retention

In an increasingly competitive business world where talent is invaluable, a strong workplace culture can attract employees with the same values. In Google’s instance, the company’s friendly,open, and ‘no fear” environment brings in the best talent from all over the globe. Google employees are offered more creative freedom and empowerment, thus promoting innovative ideas and thinking.

 Picture – Google’s workspace

In my 18 years of existence, I have noticed many trends come and go right before my eyes. But the fever for one industry in particular doesn’t seem like it will cool down any time soon. Frozen yoghurt has been around since the 1980’s with Yogen Früz and TCBY, but these chains never impacted the world as much as the new generation of “froyo” businesses.  I have seen countless Instagram photos of giant froyo towers generously covered in toppings. (I am also guilty). Common franchises found in Vancouver include Menchies, Qoola, and Pinkberry.

So what’s different about these newer froyo chains that has caused such a phenomenon?

My instagram post of “Waffle Wednesdays” at the Westbrook branch of Menchies

• self-serve option
• innovative flavours (such as red velvet cupcake) and exciting toppings (every kid’s dream)
• modern, “chill” store environment
• media attention (celebrities love froyo!)

The success of companies such as Menchies can be attributed to the extensive knowledge of consumer behaviour. That is, understanding of how consumers make decisions as a result of their needs, wants, values, and of course social factors. And in an increasingly health-conscious generation, the concept of delicious yet healthy (well, healthier than ice cream at least) is more popular than ever.

Globe and Mail Article

While much murmur as of recent is about Blackberry’s failures and RIM’s downfall, Kristina B’s blog catches an interesting idea about the opportunities that result in such event. In her post, she includes the tag “SWOTOpportunity”, as the article links well to the swot analysis topic discussed in class. She explains that Motorola’s decision to expansion in to Waterloo Ontario

Thanks to Blackberry, Waterloo, Ontario has grown in to a “technology hub”

couldn’t have come at a better time as Blackberry announced to lay off more than 4500 employees. She explains that as a result, the influx of unemployed, skilled engineers will head on over to Motorola, “whose goal in expanding to Waterloo was to absorb the area’s wealth of talent”.

Like Kristina, I agree that Motorola is to be commended for planning ahead and recognizing the opportunity to fill in Blackberry’s shoes in the technology hub that is Waterloo. Motorola Canada’s engineering director Derek Phillips states that “Part of the reason we want to be in K-W is that it’s a never-ending source of talent[.]”, including that of graduating University of Waterloo students. I believe that the expansion in to region is mutually beneficial for both Motorola and the region. As much as Motorola benefits from the expansion, the company also maintains the growth of the “technology hub” and hopefully keep talent in the area.

Picture

As my friend leaves for New York today as part of her job as a regional merchandising manager of Aritzia, I decided to look in to the Vancouver-based women’s fashion boutique expansion in to the US market.

One word in particular screamed at me: location.

Take Fifth Avenue in Manhattan, New York. It is home to Aritzia’s 13,000-square-foot flagship store. Fifth Avenue is prestigiously known as one of the “most expensive street[s] in the world“, inhabited by countless luxurious boutiques. However, true New Yorkers know that this street is split in to two strip: “Lower Fifth” and “Upper Fifth”. Aritzia on the other hand is strategically located right in the middle, where high fashion meets fast fashion.

Aritzia strive to provide a sophisticated yet welcoming shopping environment

This is a reflection of Aritzia’s target market of aspirational shoppers. That is, stylish women who can’t always afford luxury brands but will not settle for fast fashion brands.Furthermore, while Aritzia doesn’t rely on traditional marketing such as advertisements, the up-scale location speaks for itself. As an avid shopper myself, the location of stores definitely impacts my perception of a brand.

Even Brian Hill, the founder of Aritzia, attributes the company’s success to that one word, location.

 Globe and Mail Article

Canadian Business Article

 Picture – Inside a Store

Vine is a Twitter-owned mobile app that has garnered worldwide attention. It was released in January 2013, and became the most used video-sharing app within a couple of months.. This app enables users to shoot and share videos of up to six seconds long in a continual loop.

Vine quickly became the number one free app at the iOS App Store

Check this out: Urban Outfitters Vine

Urban Outfitters is just one of many businesses that have jumped on the chance to promote their brand with Vine. A six second video to create a lasting impression, what? Well to start, the simplistic feel of the app has been appealing as of lately – see Apple. The time limitation  also caters to our short attention span, and encourages creativity.

For small businesses especially, I think Vine is a viable and effective option. In this day and age where social media holds a powerful influence, it is a great way to promote the brand as well as interact with consumers. Not to mention, it’s way cheaper than many other forms of advertising – the app is free!

Own a business and looking to get inspired? Here are a few more examples of Vine marketing.

Globe and Mail Article

Picture – iOS App Store Top Free Charts

Similar to as some would describe “business” & “ethics” as an oxymoron, McDonald’s has recently been caught in hot water when the company announced that it would continue to be the top sponsor of the Games (Sochi 2014, Rio de Janeiro 2016, PyeongChang 2018, and recently announced Tokyo 2020). This deal is estimated to be about $100 million every four years. However, with the reputation of being an unhealthy fast food joint, many people criticize McDonald’s for unethically linking itself to an athletic event as big as the Olympic Games.

Perhaps the greatest concern to most critics is the effect it will have on kids and the athletes of tomorrow. Ironically, in a statement Donald Thompson says “In keeping with McDonald’s ongoing commitment to children’s well-being, we will continue to communicate with kids about the importance of balanced eating and active lifestyles through our partnership with the Games.” According to Statistics Canada, more than a third of Canadian children are obese, which can be attributed to unhealthy lifestyles such as fast food. 

Now a huge part of Olympic sponsorship is branding and PR opportunities for the companies. For McDonald’s, the question is, “Is it worth it?”. Amidst all the controversy and bad press, McDonald’s certainly has gotten its reputation tarnished turn and turn. On the other hand, I personally agree with the saying that “any publicity is good publicity” in this context. In fact, the controversy almost seems to cause more trouble for the IOC – an example is the protests in London prior to the 2012 Summer Games.

Main article: http://www.canadianbusiness.com/blogs-and-comment/mcdonalds-and-the-ethics-of-olympic-sponsorship/