Monthly Archives: October 2014

This summer, I went on a volunteer trip through Free the Children, a non-profit organization with over 2 million members worldwide. Through this trip, I learned much about how the world works in undeveloped areas, as well as how Free the Children operates.  Started in 1995 by 12-year-old Craig Kielburger, Free the Children was created to free children around the world from issues that bound them to poverty, such as child labor, lack of education, and health care.

I have been involved with this organization now for several years now, but two months of business courses has broadened my comprehension of this company, which makes Free the Children all the more interesting.

The first interesting point of Free the Children’s operations is its relationship with Me to We. Started by the founder of Free the Children, Me to We was established as a social enterprise, which, I recently learned, is a completely different concept from a non-profit. The main problem with a non-profit is that they’re always struggling with funds. An organization can only desperately search for grants for so long. Free the Children decided to tackle this problem in a sustainable manner and established the social enterprise Me to We. Although both strive to secure a social objective, the difference between Free the Children and Me to We is that Me to We is legally allowed to make a profit. 50% of the profit that Me to We makes goes towards the growth of Me to We and 50% of the profit goes towards the growth of Free the Children. It’s an interesting relationship that balances financial and social objectives. Evidently, it is a relationship that works.

The other aspect that stands out in Free the Children’s business roster is their marketing efforts. Their marketing may be their most effective tool in their business roster. Through expertly made videos, strategic placement, and key partners, Free the Children has been able to build a global presence, all the while maintaining their ability to expose social justice issues. They also have the most celebrity endorsements that I’ve seen in a non-profit organization. Stars such as Selena Gomez, Demi Lovato, Orlando Bloom and more have been rallied by this organization to take part in their campaigns. In turn, these celebrities impact the way Free the Children’s audience views social justice issues.

I believe that Free the Children’s most important Point of Difference in the charity category lies not within their value proposition, but within their customer segments. Free the Children was viewed as the first charity to consider children as their main audience. This could be classified as disruptive innovation or positioning. Many other organizations look for older, more experienced volunteers. However, what makes FTC stand out is they way that they not only believe in the power of young people, but encourage them to take part in campaigns and even design some of their own. Because of this PoD, young people believe now more than ever that they can make a difference.

Business is truly a diverse area, and its concepts and tools can truly be applied anywhere. Even charities are businesses, and applying these concepts can be a deciding factor in making a positive difference or not.

Another prime example of a disruptive innovator is  Vancouver-based startup company Wantering. Founded in late 2011, Wantering is an online search engine that provides customers with easy access to all the available fashion products across over 125 retailers. Founder Matt Friesen explains that when visiting individual retail stores, it’s difficult to get a grasp on all the available options, which makes the experience of combining styles inconsistent. The website revolutionizes the art of “mix and match”; customers can easily purchase a top from American Eagle, shoes from Vans, and maybe a scarf from Stole, all within 5 minutes and in the comfort of their own home. Wantering is still fairly new and within its startup phase. The company was launched after gaining funds from “Love Money” from friends and family, Venture Capital, and angel investor Mike Edwards.

After reading about multiple startups in the past recent weeks, it seems that all the successful entrepreneurs have one point of commonality: disruptive innovation. Wantering did not necessarily revolutionize the retail industry, but following Amazon’s approach, it made shopping for these products less costly, less timely, and more convenient for its users. In short, their experience was simplified. Matt Friesen did not have to be an expert in the area of fashion to get in the industry; he merely had the will to create a more convenient experience for his customers. That’s the beauty of entrepreneurship and business in general: having a degree in business doesn’t necessarily mean that your passion lies only within making money or studying consumers. One could be passionate about dancing, skateboards, or food, and they could easily work for those industries or start a business of their own. However, the most important challenge, although the not the most difficult, would have to be maintaining a competitive differentiation advantage. With so many business established, and even bigger corporations dominating the minds of consumers, entrepreneurs have to ask themselves: what can they bring to the table that the industry hasn’t seen before? Are they creating unnecessary gain? Or are they removing a potent pain that could sustainably benefit society?

Citation

The Globe and Mail. 24 Oct 2014. Vancouver Fashion Startup Struts Into The U.S. In A Big Way. Retrieved from http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/the-challenge/vancouver-fashion-startup-moves-into-the-us-in-a-big-way/article21192886/“

Hawthorne is a restaurant in Toronto that embodies the concept of creating shared value. Started in 2012, the business aims to provide customers with high quality dining while at the same time providing real training and work experience to those who are experiencing difficulty in finding employment. People like refuges and homeless people can undergo professional training in the culinary and hospitality department. Furthermore, Hawthorne creates partnerships with other restaurants and local hotels with the intent of supplying struggling workers with real professional employment from these partners. The result of this practice is a significant yield in economic return, as well as sustainable solution for Toronto citizens who undergo unfortunate circumstances. The phenomenal results benefit from three major practices: make training relevant by matching it with market demand, incorporate the social mission into day-to-day work, and be creative in growing training opportunities. The result of these actions is 40 fully trained employees and revenue that has doubled every month since startup.

Hawthorne’s practices are a remarkable example of creating shared value, and in turn, they have implemented a long-term sustainable solution for unemployment in Toronto. Many might classify this example as an operation of charity, but I believe that it represents much more. A charity would merely offer money as a solution and leave these people to figure out their lives on their own. This solution, although beneficial, only works to an extent. The unemployed people may have money, but without the proper guidance, that money would last only for a limited period of time. In the end, the charitable organization would be losing money, the unemployed people would not be gaining any income, and Toronto would have lost a potentially valuable addition to their work force. However, what Hawthorne is doing is creating long-term sustainable change that not only benefits the people their helping, but is profitable for the business as well. Hiring employees, although inexperienced, benefits Hawthorne by expanding their human resources. This same manual labor is beneficial for the workers because the experience is valuable for seeking out future employment. The change is still beneficial even after the workers leave Hawthorne, because they can then offer their quality employment to another company, hence contributing to the large-scale economy. Hawthorne has created a win-win situation for themselves, their workers, and society. It takes real creativity to do what Hawthorne has done, but it goes to show that the old-school belief that social awareness loses profit is no longer relevant, and business should look for innovative ways to satisfy as many stakeholders as possible.

Citation

The Globe and Mail. 20 Oct 2014. Toronto Restaurant Balances Social Mission With Economic Return. Retrieved from http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/sustainability/toronto-restaurant-balances-social-mission-with-economic-return/article21125089/

Local startup Business Hootsuite recognized the need for more efficient methods of communicating through the use of social media. In 2008, founder and CEO Ryan Holmes launched Hootstuite as a means to manage multiple social media networks. It has since become an independent company and has served society by re-innovating their social media experience. Thanks to their many functions, social media users can set up a schedule to manage posting times, keep track of your posts’ popularity, and gain easy access to all your social media sites from anywhere

Hootsuite can benefit more than just social media junkies. The function includes applications for businesses. Social media adds a new dimension of marketing research. Businesses can now keep track of which key words or phrases are being frequently being posted about, which keeps them updated with their external environment. Since social media users post mostly about what is important to them, the information on social aspect of PEST would be more accessible, and is infinitely valuable to improving their value proposition. Businesses will be able to see the different attitudes, beliefs, and social trends that resonate with majority consumers. As well, businesses can also use Hootsuite to keep track of their popularity by being informed of how often their customer segments are mentioning them in posts and blogs.

Social media has grown to be one of the most dominating methods of communication, and can play an essential role in the growth of a business. A huge majority of the big-name corporations nowadays own some kind of social media network account, and those businesses who choose to ignore the growing trend will be left behind by their competitors.

Citation

eProjects. 10 Oct 2014. Local Startup Hootsuite Makes Social Media A “Suite”                     Experience. Retrieved from “eprojects.ca/blog“

In 1876, just under a decade after Canada was born, the federal government created the Indian Act, which gave them control over many aspects of the Aboriginal people’s life, such as education, land, resources, and wills. These policies were intended to assimilate the First Nations with the rest of Canadian Society and essentially dispose of their traditional culture. Aboriginals have had varying views on these policies, as some agreed that the tax exemptions were fairly beneficial. However, in 2010, First Nations Chief Shawn Atleo demanded the Indian Act be completely repealed, and for all groups to reclaim their rights to education and land claims.

There are many ethical aspects of this situation that must be considered, but for now, I want to focus specifically on the influences revoking the Indian Act may have on the business world.  With the Indian Act revoked, the Aboriginals would have to pay taxes, and in turn that would increase the economic growth of the country, which opens up economic opportunities for all businesses in general.

However, with the Aboriginals claiming their land, how will this affect the scarcity of food for the general population? The Aboriginal people have been self-sustained for generations, so without the command power of the government, it is likely that they will grow their own food and keep it from the rest of the market. This means a serious loss of consumer population for the food industry in Canada.

Revoking the Indian Act is an example of a Legal factor in the PEST analysis. The Indian Act has acted as a cause for discrimination in Canada, and with it removed, businesses have the opportunity to promote equality for the First Nations. Maintaining a strong stance against discrimination can appeal to consumers that have the same mindset and, of course, the Aboriginals as well.

Work Cited

Background: The Indian Act. (2011). CBC News Canada. Retrieved from http://www.cbc.ca/news/canada/background-the-indian-act-1.1056988

In September of last year, Maple Leafs Sports and Entertainment (MLSE) browsed their options as to which company should be their next sponsor. Although a number of American retailers were interested in the opportunity, the Maple Leafs decided to go with Canadian Tire for one simple reason: they’re Canadian. Tim Leiweke, the new Chief Executive Officer of MLSE stated that much of his decision “[had] a lot to do with the fact that it’s a Canadian Company” and Canadian Tire Corp. Ltd. is a “unique asset of this country and culture”. The 10-year deal will allow Canadian Tire and its various retailers, such as Sport Check and Atmosphere, to put its logos on the ice and other strategic locations that can be associated with the Maple Leafs Team. The Leaf’s previous sponsor, Rona, was also a Canadian company, which means MLSE is aiming to continue its successful resonance with the Canadian demographic.

Retaining a sense of national pride as part of a value proposition makes sense if we’re talking about the marketability of a Canadian hockey team. However, the Leafs are in a hockey league that stretches into the USA, where consumers might not associate as strongly with a Canadian Tire Logo. If MLSE’s customer segment is limited to only Canadian citizens with a strong sense of national pride, then partnering with Canadian tire was a smart move. However, if and when MLSE decides that they want to sell Leafs Jerseys with a Canadian Tire logo in the USA, audiences may not associate as strongly. In that case, MLSE would have to work hard to come up with a unique point of difference to add to their value proposition, one that can benefit their consumers regardless of their nationality. Having American sports stars on the team, such as Phil Kessel and James van Reimsdyk, might be a good start, but aside from using national Canadian pride as a marketing tactic, MLSE’s partnership with Canadian Tire may not be extremely effective in the big picture of marketing.

Work Cited

Marina Strauss. “Canadian Tire takes over as MLSE sports team sposor.” The Globe And Mail. theglobeandmail.com, 9 Sep. 2013. Web. 4 October