Monthly Archives: November 2015

The future of Transportation

In her Comm 101 Blog, Ingrid Bakke discussed driverless transit that is due to roll out in Switzerland by 2016. This project, carried out by BestMile, will revolutionize the transit industry. Miss Bakke analyzed some of the pros and cons of driverless transit such as the cost saving measures and potential accidents. I believe the biggest issue will be gaining public trust.

Opinions are mostly spilt when it comes to trusting driverless vehicles. This is the largest hurdle auto manufactures face as they attempt to sway public opinion into putting their lives in the hands of a machine. It will take a serious marketing campaign to get the public completely on board with autonomous cars. It appears the marketers job will be made a bit easier though as the data is on their side. Google’s driverless car has only reported 11 accidents after driving more than 1.7 million miles.

(Figure 1) Google’s self-driving car

 

(Figure 2) BestMile’s Self-driving bus

Unfortunately, consumers are not always rational and are more willing to take risks such as driving when they perceive having more control over the situation. BestMile has positioned itself nicely however, as consumers will be forced to try their product while taking public transportation. This government contract will prove to be a vital component in expansion for BestMile, as consumers will begin to see their product works safely and efficiently.

 

 

 

Media References

Figure 1: http://techfactsa2z.blogspot.ca/2013/04/driverless-car.html

Figure 2:  http://www.digitaltrends.com/cars/first-autonomous-buses-debut-in-spring-2016/

Company Culture

In a blog post by Michael Timms, he shares his experience at the Fenestration Association of BC 2015 Western Conference. Timms discussed the greatest problem in his industry with fellow managers and clients. That problem is finding quality employees and retaining them. Timms asked the following two questions to these managers.

  1. What do you want from your employees?
  2. What do you think your employees want from you?

The answers were generally sarcastic and poorly thought out. Timms believes most employee dissatisfaction stems from a lack of strong leadership from managers. Employees were likely to not care about their job and less likely to remain at their current company. He further argues that well managed employees are more motivated and productive. I however, disagree with Timms’ view of the problem.

In my opinion, the root of the issue is company culture. Creating an environment that employees look forward to coming to every day is vital for company success. When workers genuinely want to be working for a company they are far more likely to perform their job diligently and with great care. This will benefit the company overall and build a positive atmosphere in which to work.

(Figure 1) Twitter was ranked the #1 company in the United States for company culture by Forbes in 2014

Creating a positive culture starts with Human Resources so I believe that is where Timms should be looking to fix his industry’s problem. Through careful hiring practices and employee training, Timms will find his answer. Though these practices generally cost more initially, in the long run it will be every advantageous for the both the company’s image and income statement.

Media Resource

Figure 1: http://www.forbes.com/pictures/fjle45hlmi/no-1-twitter/

 

 

One for One Business Model

I disagree with the ‘one for one’ business model. Although the intentions are pure, it severely hinders progress in developing nations in the long run. Business should not focus on handing out goods and services in underdeveloped areas. When Western businesses do so, it undermines local businesses that are attempting to create and sustain value. This is not to say that successful companies in North America and Europe should not do anything to help developing areas; they should just rethink the way they help.

A far more beneficial technique would be to help early stage companies develop themselves. In this way, long term sources of revenue will be created through employment and the sale of goods. This is far more sustainable than giving goods such as shoes and glasses away because it ensures these products will be created and purchased in the developing areas. The critical part will be aiding in the establishment of the businesses in these communities. Although this process will be difficult, it is absolutely an essential component to help developing areas progress.

Aid can be provided more effectively through low interest, or even no interest financing, depending on how charitable the Western company chooses to be. In this way, businesses in developing areas will receive the chance to create value in their own community by providing employment opportunities and essential goods. Another beneficial aspect would be to assist in teaching and training locals in these developing regions. This way, many people would have access education to help create their business.

(Figure 1) Training leads to development

It is also important to realize that some donations will still be necessary. Health products that are otherwise unavailable in these developing areas will still be required donations for now. It will be substantially easier for a nation to develop with a healthy population that is able to work.

Media Source

Figure 1: http://www.slideshare.net/Monishaangel/training-development-32823092

Human Obsolescence

In Maria Starko’s Comm 101 blog, she discusses a restaurant in San Francisco that offers customers a dining experience without human interaction. In this way, the business owners cut down on wages by replacing workers with machines.

It seems like we are at a crossroads of employment. Machines are becoming inexpensive, sophisticated and readily available which makes for a convincing case to switch from humans to robots. It seems that the future could have a huge number of machines in positions once held by people. This could be positive or negative for the economy and it is difficult to judge what outcome it will have at this stage. On one hand, many basic jobs such as driving a delivery truck or working a cash register could be eliminated. Paradoxically, this will create an untold number of new jobs designing, building, servicing and upgrading these machines. There is no question that if machines took over most jobs, it would be disastrous for the economy. These machines will only be able to keep their job if the population has money to spend so maintaining a high employment rate is critical.

 

The vehicle manufacturing industry has already been largely automated (Figure 1)

I agree that the service industry will always have a place for humans to work. Part of the experience of being served is being treated well by another person which is not something one gets from a machine. Machines cannot adapt to changing customer needs and desires the way people can. A machine does not sympathise with a customer, it can only perform the task for which it was programed. People can understand the value of treating customers with respect and this is appreciated by consumers. For this reason humans will always serve a vital role in the service industry.

Media Reference

Figure 1: http://www.economicdevelopmenthq.com/blog/manufacturing-industry-spurring-development-in-southern-nevada/

Canada’s Aging Population

The Baby Boomers in Canada are beginning to enter their golden years and we must be prepared for the economic changes that will follow in the next few decades. An aging population affects not only the Baby Boomers, but Canada as a whole. The Canadian government and taxpayers must be ready for the influx in healthcare spending that accompanies a rise in the number of seniors. There will also be openings in careers with older demographics that need to be filled such as pilots, doctors and barbers.

Canadian Population Pyramid (Figure 1)

Seniors in Canada require the highest amount of healthcare spending. In 2001, seniors made up 12.6 percent of the population and required 43 percent of total healthcare expenditure. With the number of retirees set to climb in the coming decades, this number is expected to rise as well. An aging population also affects the economy in ways one might not think. The funeral industry will grow as the Baby Boomers get older and new jobs will be created as more seniors required someone to look after them. Canada also must prepare for an increase in the number of people receiving social security and living off pensions as more workers retire.

The job landscape in Canada will change as Baby Boomers retire as well. Thousands of red sealed tradesmen will be needed to replace current carpenters, plumbers and electricians. This will be more important than ever as many youth have chosen to go to university rather than pursuing an apprenticeship. Canada must encourage young people to consider choosing these fields as they will become very lucrative. Skilled tradesmen will be in high demand as the quantity diminishes.

It will be critical for Canada to be aware of the challenges it will face in the coming decades. Preparation must start now to avoid complications for seniors, and the workers they depend on in the future.

Media References

Figure 1: http://www.indexmundi.com/canada/age_structure.html

 

Tipping Point: The Beginning of the End for Tipping in North America

The Modern, one of Daniel Meyer’s thirteen restaurants in New York (Figure 1)

Daniel Meyer, the Chief Executive Officer of Union Square Hospitality Group, has come out with a long overdue plan. His thirteen restaurants in New York have introduced a “no-tipping” policy and will see a slight price increase in menu items to compensate for the change. The rational for this idea is that a guest’s restaurant experience is a team effort, but under the current system only the front-of-house staff is compensated for their effort. With this new method of billing, workers are compensated far more evenly for their work, rather than the lion’s share of money going to servers.

The new system is beneficial for all parties involved. Owners are able to find experienced line cooks and head chefs that are attracted by the higher wages offered to back-of-house staff. The dining experience is increased through higher quality food and most importantly eliminates the awkward exchange that many dread; calculating an appropriate tip to leave when the cheque comes at the end of the meal. Servers also no longer need to fear a cheap guest in their section because the server will be making a living wage no matter what.

Unfortunately for British Columbia, we are not ready for this change. David Jones tried to implement this policy at his Vancouver Island restaurant in 2014 but was forced to reintroduce tipping after three months due to customer backlash. As someone who has worked in the service industry I can attest, it is time we do away with tipping.

Media Reference

Figure 1: http://www.newyork-guide.net/the-modern-restaurant-new-york.html